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  1. Use Cases

For Treasuries

The Volatility Targeted Portfolio strategy is developed specifically for treasuries.

Targeted Portfolio Volatility

The primary objective for this strategy is to maintain a certain target volatility level through rebalancing assets based on their expected future volatility.

Volatility targeting helps with:

  • Risk management: allowing DAOs to ensure that investments are consistent with risk tolerance

  • Diversification: volatility targeting can encourage a treasury to diversify investments across various assets

  • Improved returns: a well-executed volatility targeting strategy could lead to better risk-adjusted returns

  • Adaptability: volatility targeting allows a treasury to adapt its investment strategy to changing market conditions by controlling the exposure to market risk

  • Reduced transaction costs: a standard rebalancing strategy involves periodic adjustment to the portfolio to maintain a predetermined asset allocation, which can result in frequent trading

  • Enhanced performance measurement: volatility targeting provides a more consistent measure of performance by maintaining a stable level of risk

Please Contact Us to learn more.

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Last updated 1 year ago