How to use this calculator
- Enter first-asset weight (%), first volatility (%), second volatility (%), correlation.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
Inputs must share frequency and estimation method; no leverage, estimation uncertainty or future guarantee.
Worked example
With first-asset weight (%) = 50, first volatility (%) = 10, second volatility (%) = 20, correlation = 0, portfolio volatility (%) is approximately 11.18034%.
What the result means
Correlation changes diversification benefit even when individual volatilities stay unchanged.
Common questions
How should I interpret portfolio volatility (%)?
Correlation changes diversification benefit even when individual volatilities stay unchanged.
What should I check before using this result?
Inputs must share frequency and estimation method; no leverage, estimation uncertainty or future guarantee.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.