Sure Vivek,
It is basically Inverse Volatility weighting.

I'll provide you with the mathematical formula for inverse volatility weighting.



For a portfolio of n assets, the weight of each asset i using the inverse volatility weighting strategy is calculated as follows:


w_i = (1/σ_i) / Σ(1/σ_j)


Where:
- w_i is the weight of asset i
- σ_i is the volatility of asset i
- Σ(1/σ_j) is the sum of the inverse volatilities of all assets in the portfolio

To break this down step-by-step:

1. Calculate the volatility (σ) for each asset. This is typically the standard deviation of returns over a specific period.

2. Take the inverse (1/σ) of each asset's volatility.

3. Sum up all these inverse volatilities.

4. Divide each asset's inverse volatility by this sum.

The resulting w_i gives you the weight for each asset in the portfolio. The sum of all weights will equal 1 (or 100%).