# Portfolio Variance

*Risk & Portfolio — Finicade finance glossary*

The total risk of a portfolio, built from each holding's variance plus every pair's covariance. The cross-terms are the magic: mix assets that don't move together and the whole is calmer than its parts.

**Also known as:** covariance-matrix, portfolio-weights, two-asset-portfolio

**Related terms:** [Variance](https://finicade.com/glossary/variance), [Covariance](https://finicade.com/glossary/covariance), [Diversification](https://finicade.com/glossary/diversification)

**Taught in:** Charter Climb — Building the Efficient Frontier

Source: https://finicade.com/glossary/portfolio-variance