Rebalance Probability Chart

The Rebalance Probability Chart displays the rebalance probability for the initial portfolio or reference portfolio against each optimal portfolio along the Michaud Resampled Efficient Frontier.  Select the Rebalance Probability Option from the Chart Type drop down menu on the Charts Worksheet.  A vertical gold line shows the risk of the current portfolio selection and a red dot marks the rebalance probability of the optimal portfolio selected as Portfolio 1.  If the reference or initial portfolio selected is not too far from the optimal frontier, you will notice that the rebalance probability is generally close to 100% and dips down for a range of values close to the target risk level of the optimal portfolio. The width and depth of this dip depends on the individual characteristics of the case.