Two-Asset Portfolio Volatility Calculator
See how combining two assets changes overall risk. Enter weights, volatilities and correlation to get portfolio volatility and the diversification benefit.
Result
Enter values to see the result.
How to use the Two-Asset Portfolio Volatility Calculator
- 1Enter your Asset A weight (in %).
- 2Enter your Asset A volatility (in %).
- 3Enter your Asset B volatility (in %).
- 4Enter your Correlation (A vs B) β -1 = opposite, 0 = unrelated, 1 = identical.
- 5The result and full breakdown update instantly β no signup, no waiting, and your numbers never leave your browser.
About the Two-Asset Portfolio Volatility Calculator
See how combining two assets changes overall risk. Enter weights, volatilities and correlation to get portfolio volatility and the diversification benefit. It's a free tool in our portfolio tools collection on TheCryptoTools, runs entirely in your browser, and works on mobile. If you found it useful, try Average Entry Price Calculator, Crypto Capital Gains Tax Calculator and Price Target Calculator (Reach Your Goal).
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Frequently asked questions
οΌWhy isn't portfolio risk just the average of the two?
Because assets don't move in lockstep. Unless they're perfectly correlated, some moves offset, so combined volatility is lower than the weighted average.
οΌWhat is correlation?
A number from β1 to +1 measuring how two assets move together. +1 is identical movement, 0 is unrelated, β1 is exact opposites β which cancels the most risk.
οΌHow does this help me?
It shows the value of diversification: pairing assets with low or negative correlation lowers overall volatility without necessarily lowering expected return.
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For educational purposes only. Two-Asset Portfolio Volatility Calculator results are estimates, not financial advice.