Portfolio Optimizer
Find the best mix of stocks and ETFs for your risk appetite.
Powered by Modern Portfolio Theory (Markowitz 1952). Select 2–10 securities, set your risk tolerance, and instantly see the optimal allocation with an efficient frontier chart.
1. Select Securities
Type a ticker or company name. Click to add (2–10).
2. Risk Tolerance
Lower = safer (minimum variance), higher = more growth (maximum Sharpe ratio).
3. Optimal Portfolio
Add at least 2 securities above, then results appear here automatically.
How It Works
This tool uses Mean-Variance Optimization (MVO) based on Harry Markowitz's Modern Portfolio Theory (1952). We compute the covariance matrix from one year of daily returns, then run 5,000 Monte Carlo portfolios to map the efficient frontier — the set of portfolios offering the highest return for each level of risk. Your risk slider blends between the minimum-variance portfolio (safest) and the maximum-Sharpe-ratio portfolio (best risk-adjusted return).
Limitations: Past performance does not predict future returns. The model assumes normal return distributions and static correlations. Real-world portfolios should also consider transaction costs, taxes, liquidity, and personal financial goals. This tool is for educational purposes only and is not investment advice.