---
title: Overcoming Markowitz's Instability with the Help of the Hierarchical Risk Parity (HRP): Theoretical Evidence
url: https://www.ml-quant.com/papers/ssrn/4748151/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4748151
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4748151
featured: 2024-03-06
citations: 3
topic: Portfolio & Allocation
---


# Overcoming Markowitz's Instability with the Help of the Hierarchical Risk Parity (HRP): Theoretical Evidence

The paper shows the hierarchical risk parity (HRP) approach is superior to the traditional Markowitz portfolio allocation method in terms of noise reduction and robustness.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4748151
- Identifier: SSRN 4748151
- Released: 2024-03-05
- First featured: Quant Letter No. 39 (2024-03-06): https://www.ml-quant.com/issues/2024-03-06/
- Citations (Semantic Scholar): 3
- Published in: not yet
- Topic: Portfolio & Allocation

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