> ## Documentation Index
> Fetch the complete documentation index at: https://docs.fincept.in/llms.txt
> Use this file to discover all available pages before exploring further.

# Hierarchical clustering and networks

> Hierarchical portfolios (HRP, HERC, HERC2, NCO) over 12 codependence measures, 8 linkages (DBHT included) and 38 risk measures; the assets' cluster tree, codependence and distance matrices, and their minimum spanning tree or planar filtered graph with centralities.

Toolset `alloc_hierarchical`: 4 tools.

| Tool | What it does | Notes |
| - | - | - |
| `alloc_hierarchical` | Hierarchical clustering portfolio: HRP, HERC, HERC2 or NCO on a tree of the assets built from a codependence (correlation, Gerber, distance correlation, mutual information, tail dependence) and a linkage (single ... ward, DBHT), allocating by one of 38 risk measures, with optional weight bounds. | |
| `alloc_clusters` | Hierarchical clusters of the assets from a codependence and a linkage, with the number of clusters given or chosen by the two-difference gap statistic or the standardised silhouette. | |
| `alloc_codependence` | The codependence matrix of the assets and the distance derived from it: Pearson, Spearman or Kendall correlation, Gerber statistic, absolute correlation, distance correlation, mutual information (distance = variation of information) or lower-tail dependence. | |
| `alloc_network` | The assets' network: edges of the minimum spanning tree or planar filtered graph of their codependence distances, each node's degree, chosen centrality and hierarchical cluster, and the connection matrix (assets within walk\_size edges) that network constraints use. | |

Inputs, limits and outputs are described in [Fincept Allocation](/guides/fincept-allocation). Full schemas: `fincept_describe_tool`.


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