[Verse 1]
Traditional portfolios weight by dollar amount
Sixty percent stocks, forty bonds to count
But when the market crashes, stocks take the fall
Your "balanced" portfolio isn't balanced at all
[Chorus]
Risk parity, share the risk equally
Don't just count the money, count volatility
Equal risk, not equal cash
That's the way to build wealth that lasts
Risk parity, R-I-S-K
Balance the danger, watch your portfolio fly
[Verse 2]
Stocks are volatile, bonds are more calm
If you weight by dollars, stocks sound the alarm
When crisis hits hard, equities dive deep
Your sixty-forty split makes you lose sleep
[Chorus]
Risk parity, share the risk equally
Don't just count the money, count volatility
Equal risk, not equal cash
That's the way to build wealth that lasts
Risk parity, R-I-S-K
Balance the danger, watch your portfolio fly
[Bridge]
Measure each asset's contribution to risk
Standard deviation helps you get the gist
Allocate by risk budget, not by price
Diversification that's truly precise
[Verse 3]
When each holding contributes risk the same
Your portfolio's playing a steadier game
Less concentration in any one bet
More stable returns are what you'll get
[Chorus]
Risk parity, share the risk equally
Don't just count the money, count volatility
Equal risk, not equal cash
That's the way to build wealth that lasts
Risk parity, R-I-S-K
Balance the danger, watch your portfolio fly
[Outro]
From capital weights to risk-based allocation
Building portfolios for every situation
Risk parity approach, the smarter way
Equal risk contributions every trading day