Efficient Frontier Visualizer

Enter expected returns, volatility, and correlations for up to three assets. The tool builds sample portfolios, estimates portfolio risk and return, and shows a simplified efficient frontier table so you can explore risk–return tradeoffs.

This is a simplified educational model, not a full mean–variance optimizer.
Important: This tool uses simplified formulas and user-entered assumptions. It does not use real market data, does not guarantee optimal portfolios, and is for educational exploration only.

Formulas used in the Efficient Frontier Visualizer

Expected portfolio return

Rp = w1·r1 + w2·r2 + w3·r3

Portfolio variance (three assets)

σp² = w1²·σ1² + w2²·σ2² + w3²·σ3²
    + 2·w1·w2·σ1·σ2·ρ12
    + 2·w1·w3·σ1·σ3·ρ13
    + 2·w2·w3·σ2·σ3·ρ23

Portfolio volatility

σp = √σp²

Simplified “Sharpe-like” ratio (no risk-free)

Sharpe* = Rp / σp

The tool generates sample portfolios by sweeping weights for Asset 1 and Asset 2 between 0 and 1, with Asset 3 taking the residual (if any). Weights are constrained to be non-negative and sum to 1.

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Information on this site is for educational purposes only and is not financial, tax, or legal advice. Calculations are estimates and may not reflect actual outcomes. Always review official guidance and consider professional advice for your situation.