|Input Name||Current Value||Description|
Fundamental or Market attribute to focus current portfolio
List of symbols for Model Portfolio
List of Portfolio Themes
Budget to be used to allocate positions during optimization process
|What historical period would you like to apply?||One Month |
Sample date period to use in the optimization process. Regardless of the investment, you will always need to determine a time horizon over which you will collect investment data. We use daily returns or prices across all assets as it best fits our data normalization algorithm. So let's say you want to invest right now and review your portfolio allocations in 6 months from now. In this case select 6 months as your investment horizon. Alternatively, if you typically review your asset allocation on monthly bases, select 30 day as your time horizon
Start date for the data sample interval
End date for the data sample interval
Precision to round the calculations. The larger the precision, the more accurate the calculation will be, and the more time it will take to evaluate the frontier
|What is your attitude towards risk?||I am educated risk taker |
Level of risk investor is willing to take, from low risk to high risk. If you are willing to take on any kind of risk move the selection to the right. If you are a very conservative investor select a value close to the left. The more return an investor expects from their investments, the more risk must be undertaken to achieve that return. For example, let's say you really like your existing asset allocations and just want to maximize expected return of your portfolio. In this case move the blue box to the right and select "I am willing to take any risk". On the other hand, if you are saving for retirement, select something like "I am conservative investor"
|Would you like to invest your available cash?||Do not re-invest my cash |
Percentage (0 to 100) of your current cash position to be used to buy suggested equities. If you specify 100, all cash will be reinvested against suggested equities. If you specify 0, no cash will be taken. Typically, if you are bullish with respect to the current market conditions you would reinvest at least some of your available cash position to enhance returns on your portfolio
|Would you like to use daily prices or daily returns?||Daily Returns |
When building a portfolio of securities or even a theoretical watch list, one of the most important factors to consider is how each security moves in relation to the other securities in the portfolio. You can calculate correlation coefficient based on either absolute (i.e. final market price) or relative terms (i.e. percentage changes or daily return)
|Would you like to short sell some of your assets?||No |
Specify if you would like as to apply short selling strategies to closely arrive at your selected risk level. Short selling is the practice of selling assets, that have been borrowed from a broker or dealer with the intention of buying the same assets back at a later date to return to the lender
|Would you like to set a minimum asset weight?||At least 2% in each asset |
The minimum weights of the assets from which the portfolios within the Efficient Frontier will be constructed. This value multiplied by the number of assets that are eligible for optimization should be less or equal to 100. This value should be zero if no weight constraints are required
|How about maximum asset weight?||At most 35% in each asset |
The maximum weights of the assets from which the portfolios within the Efficient Frontier will be constructed. The sum of all maximum constraints in portfolio should be greater than or equal to 100. This value should be 100 if no weight constraints are required.
|Would you like to assume a daily risk free rate?||1 Basis Point or 0.01% [0.01]|
The rate of return of an asset with zero risk. The risk free rate represents the interest an investor would expect to make from a risk free investment over a specified period of time. The typical example of a risk free asset is an interest bearing savings account.
|Any constraints on daily expected returns?||Zero daily return (default) [0.0]|
Minimum daily expected return an asset should generate to be considered in the optimization process. If you want some underperforming assets not to be included in calculations of optimal portfolio set this value to something greater than zero.
|How about your confidence interval?||95% [0.95]|
Confidence interval to measure value at risk(VaR). Typical confidence levels are 99%, 97.5%, 95%, and 90%. For example, if you selected 95% confidence level for your $5 VaR portfolio then you can expect that (provided usual market condition over the next day) with a probability of 95%, a change in the value of your portfolio would not result in a decrease of more than $5 during the next day, or, in other words, that, with a probability of 5%, the value of your portfolio will decrease by $5 or more during the next day