What does the G-Sphere represent?
G-Sphere equates portfolio diversification (or portfolio balance) to symmetry (or physical balance). Therefore the more round a model portfolio is the more balanced the portfolio is. The G-Sphere models an optimal investment portfolio. It depicts individual securities and positions that, taken in aggregate, form the portfolio. Part of the model’s function is to showcase how these different investments relate to each other. Therefore, not only are the individual positions easily visible, the relationship between all of the separate components is shown and the sum of the parts is graphed.
