Equal dollars is not equal risk - a 25% sleeve of a volatile stock can dominate a portfolio's risk while a bond sleeve does nothing. Quantora sizes any basket three ways: equal weight, inverse-volatility, and true equal-risk-contribution (risk parity), so each position pulls its own weight in risk terms.
Inverse-volatility weights each holding by 1/volatility (a naive risk parity that ignores correlations). Equal-risk-contribution (ERC, "true" risk parity) solves for weights where every holding contributes the same share of portfolio variance, using the full covariance matrix. Portfolio volatility is the annualized standard deviation of the weighted basket. Long-only, fully invested, no leverage. Based on daily returns over roughly five years. Educational only - not investment advice.