---
title: "Risk Budgeting Portfolio"
method: POST
path: "/portfolios/optimization/risk-budgeting"
tags: ["Portfolio Optimization"]
---

# Risk Budgeting Portfolio

`POST /portfolios/optimization/risk-budgeting`

Compute the asset weights of the risk budgeting portfolio, optionally subject to:  
* Minimum and maximum weights constraints  

References
 * [Bruder, Benjamin and Roncalli, Thierry, Managing Risk Exposures Using the Risk Budgeting Approach](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2009778)
 * [Richard, Jean-Charles and Roncalli, Thierry, Constrained Risk Budgeting Portfolios: Theory, Algorithms, Applications & Puzzles](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3331184)

## Request body

- object
  - `assets` integer, required — The number of assets
  - `assetsCovarianceMatrix` array[], required — assetsCovarianceMatrix[i][j] is the covariance between the asset i and the asset j
    - number[]
  - `assetsRiskBudgets` number[], required — assetsRiskBudgets[i] is the risk budget allocated to the asset i, in percentage; the sum of all the assetsRiskBudgets must be equal to 1
  - `constraints` object
    - `minimumAssetsWeights` number[] — minimumAssetsWeights[i] is the minimum weight of the asset i in the portfolio, in percentage
    - `maximumAssetsWeights` number[] — maximumAssetsWeights[i] is the maximum weight of the asset i in the portfolio, in percentage

## Response `200`

OK

- object
  - `assetsWeights` number[], required — assetsWeights[i] is the weight of the asset i in the portfolio, in percentage

---

[API](https://skmtc.net/portfoliooptimizer/apis/portfolio-optimizer.md) · [All operations](https://skmtc.net/portfoliooptimizer/apis/portfolio-optimizer/llms.txt) · [OpenAPI document](https://skmtc-service-staging.skmtc.workers.dev/v1/apis/portfoliooptimizer/portfolio-optimizer/versions/479fd4ac44aa/schema)