Table 9.

Summary and categorization of rebalancing strategies.

Strategy type	Description	Nature	Focus	References
Buy-and-hold strategies	Maintaining initial allocation over the investment horizon, relying on market recovery	Static	Strategic	Perold and Sharpe, 1988; Feldman et al., 2015; Hilliard and Hilliard, 2015
Calendar-time Rebalancing	Rebalancing at fixed time intervals, aiming to maintain desired allocation	Static	Strategic	Dayanandan and Lam, 2015; Lee et al., 2017; Chen J. et al., 2020; Lim et al., 2022
Risk-Parity Strategies	Allocating based on risk contributions for balanced risk exposure across asset classes	Dynamic	Tactical	Chaves et al., 2011; Roncalli, 2013; Costa and Kwon, 2019
Portfolio-insurance-based strategies	Protecting the portfolio from losses during downturns include constant-proportion Portfolio Insurance (CPPI), Option-Based Portfolio Insurance (OBPI)	Dynamic	Tactical	Zhu and Kavee, 1988; Bertrand and Prigent, 2005; Hong, 2021
Constant Mix Rebalancing	Maintaining a fixed allocation, rebalancing when deviations occur, buying low and selling high	Dynamic	Tactical	Jones and Stine, 2005; Cesari, 2011; Bertrand and Prigent, 2022
Threshold Strategy	Rebalancing when allocations exceed specified thresholds	Dynamic	Tactical	Zilbering et al., 2015; Lim et al., 2022
Time-Threshold Strategy	Combining time-based intervals and threshold triggers for rebalancing	Dynamic	Tactical	Daryanani, 2008; Dayanandan and Lam, 2015
Tactical Asset Allocation (TAA)	Making dynamic adjustments based on the market outlook for short-term opportunities and risk mitigation	Dynamic	Tactical	Weigel, 1991; Lee, 2000; Kanuri et al., 2021