What the curve is really telling you, and why the distance from it is the number that matters most when an AI investing platform recommends a rebalance.
The efficient frontier is the set of portfolios that give the most expected return for each level of risk. Plot your book against it and one glance tells you whether you are being paid for the risk you carry.
A point below the curve is the interesting one. It says there is a portfolio with the same risk and more expected return, or the same return for less risk. The vertical gap is the improvement on the table. That distance, not the shape of the curve, is the number a grounded advisor should act on.
Why the distance matters more than the level
Expected return is an estimate and it moves around. The frontier moves with it. The distance from your book to the frontier is far steadier, because both ends shift together. So Dayonik frames the finding as a Sharpe delta, the before and after, rather than a single figure that reads as a promise.