Just heard this term used on TV. It seemed to be referring to some sort of automation. How does risk parity stabilize/flatten the markets?

  • Why the down vote? – grldsndrs Mar 16 '17 at 0:13
  • 4
    I was not the DV, but I'll say, you offer no context or attempt to explain the origin of the question. – JTP - Apologise to Monica Mar 16 '17 at 0:34

Risk parity is allocation of investments based on risk, rather than asset class, in order to maintain returns while lowering risk. Investopedia.

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