The WPA allows the user to input custom views for expected risk and correlations.
The users may enter up to five different sets of views in the grid. To select a set of expected risk and correlation (covariance) model for analysis, click on the column heading to highlight the column.
Expected Risk Views
The user will be able to initialize a custom view by copying from the historical full-sample estimates.
Context menu for interaction with Expected Risk Views
When specifying views for risk, it is also essential to carefully consider the specification of correlation coefficients. If a correlation matrix is not positive semi-definite, WPA can either correct to the nearest positive semi-definite matrix or re-initialize the respective view estimates to the historical correlation matrix.
