Applying Dynamic Risk management technique for passively invested portfolio

Reduction in the number of recessions have started a new concept known as Dynamic Risk Overlay concept. It was initiated after rise in overall systematic risks. We have proposed different methods that can be used as a source to provide hedging strategies in case of risks. VAR calculations are an important aspect to be considered while assessing the risks that a portfolio might encounter. We have implemented the calculations, costs on MATLAB. We have covered all the risk factors that a portfolio could face in different scenarios in this research.