---
title: Hierarchical Risk Clustering vs Portfolios
url: https://www.ml-quant.com/papers/ssrn/5247627/
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 5247627
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5247627
featured: 2025-05-14
citations: unknown
topic: Portfolio & Allocation
---


# Hierarchical Risk Clustering vs Portfolios

The paper warns that hierarchical risk clustering strategies in portfolio allocation can be affected by inaccuracies in the covariance matrix.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5247627
- Identifier: SSRN 5247627
- Released: 2025-05-08
- First featured: Quant Letter No. 97 (2025-05-14): https://www.ml-quant.com/issues/2025-05-14/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Portfolio & Allocation

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