Firms such as Bridgewater Associates pioneered the concept of "risk parity", allocating assets in a way that balances their risk contribution to the overall portfolio risk. Underpinning this strategy is the assumption that higher volatility in an asset should result in a lower weight and vice versa. However, out side of equities the relationship between volatility and return is not nearly as clear-cut. Acknowledging a variable relationship between the two for other assets has the potential not only to improve risk-adjusted returns, but lead to more diversity from the herd in managing portfolio changes in the future