D14 · Risk Allocation · Guided lab
Where does HERC stop the tree?
Choose a terminal-cluster count, step from covariance to branch allocation, and watch why local branch balance does not mean equal final asset risk.
Trace the algorithm
Algorithm stage
1 of 5 · Validate the supplied risk input
What to notice now
Final asset audit
Capital weight and measured component-risk share answer different questions.
| Asset | Terminal cluster | Capital weight | Component-risk share |
|---|