Diversified three-sleeve stack

A balanced stack with modest pairwise correlations that shows what healthy diversification actually looks like in a rebalanced portfolio.

Portfolio return

10.7%

Portfolio volatility

8.3%

Portfolio Sharpe

1.29

Diversification ratio

1.64

Median terminal

2.33x

Median max drawdown

11%

Why this scenario matters

This is the baseline scenario for the tool. It shows why several decent sleeves can become more useful together when they are not all expressing the same risk in disguise.

Diversification earns its keep when sleeves are different enough to offset one another.
Portfolio Sharpe can improve even when no single sleeve dominates on its own.
Rebalancing works best when the sleeves bring genuinely different path behavior.

Sleeves in this stack

Trend

40% weight · 11% return · 14% vol · corr A/B 0.15

Carry

35% weight · 8% return · 10% vol · corr B/C -0.10

Mean reversion

25% weight · 14% return · 18% vol · corr A/C 0.05