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Simulation of Asset Decay and Rebalancing Logic This repository contains a basic Python simulation that models portfolio value over time with randomized volatility effects and scheduled rebalancing. It is not intended to predict markets, but to stress-test allocation logic under stochastic pressure. 💡 Key Features Simulates a 65/35 split between equities and capital preservation assets Introduces volatility through a randomized multiplier (1–2x) applied to equity returns Applies monthly rebalancing logic to simulate passive allocation decay and recovery Tracks value over 10 periods, repeated for 30 independent runs Identifies outcomes where total value collapses below a defined threshold 📈 Use Cases Testing rebalancing assumptions Exploring portfolio fragility under volatility Visualizing the downside effects of poor variance structures
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Simulation of Asset Decay and Rebalancing Logic
This repository contains a basic Python simulation that models portfolio value over time with randomized volatility effects and scheduled rebalancing. It is not intended to predict markets, but to stress-test allocation logic under stochastic pressure.
💡 Key Features
Simulates a 65/35 split between equities and capital preservation assets
Introduces volatility through a randomized multiplier (1–2x) applied to equity returns
Applies monthly rebalancing logic to simulate passive allocation decay and recovery
Tracks value over 10 periods, repeated for 30 independent runs
Identifies outcomes where total value collapses below a defined threshold
📈 Use Cases
Testing rebalancing assumptions
Exploring portfolio fragility under volatility
Visualizing the downside effects of poor variance structures