Risk Parity Fundamentals

Edward E. Qian, PhD, CFA, is the chief investment officer and head of research of the Multi Asset Group at PanAgora Asset Management. He was previously a postdoctoral researcher in astrophysics at the University of Leiden in the Netherlands, and a National Science Foundation Postdoctoral Mathematical Research Fellow at the Massachusetts Institute of Technology (MIT). Dr. Qian has made substantial contributions to risk parity investment strategies and quantitative equity portfolio management. He coined the term "risk parity" and pioneered the use of portfolio theory for evaluating alpha factors and constructing multifactor models. He is the coauthor of the highly praised Chapman & Hall/CRC book Quantitative Equity Portfolio Management: Modern Techniques and Applications. Dr. Qian earned a BS in mathematics from Peking University and a PhD in applied mathematics from Florida State University.

An Introduction to Risk Parity Principle. The "Colors" of Risk Premiums. The "Death" of Interest Rate Risk Premium. See the Forest for the Trees. The "Peculiarity" of Risk Parity Portfolios. History Lessons. The "Wild West" of Risk Parity. Risk Parity Everywhere: Much of a Good Thing Is a Great Thing.