Macroaxis utilizes volatility-responsive asset allocation (VRAL).
Since the level of risk associated with your portfolio is not constant and depends
on past, current, and future market conditions, you have
to utilize multiple risk managing techniques in order for your portfolio to
generate optimal returns whether or not your personal economic outlook is bullish or bearish.
Volatility Manager provides 3 approaches to manage volatility of your portfolios.
One or combination of these three techniques will enable you to decrease your overall portfolio volatility
without minimizing its optimal diversification score.
| Portfolio de-risking
|| Increase exposure to low risk equities and decrease exposure to high risk instruments.
| Pair-correlation enhancement
||Choose the pair of equities that is less positively or negatively correlated.
Selecting assets that less correlated with each other decreases the overall risk of the portfolio
| Better Beta
||Pick the right benchmark and replace high beta equities with lower beta equities
The bottom line
This module is designed as a sandbox to check voloatility management effects
for your selected time horizon and to determine overall asset-allocation targets.
Your goal is to have the highest volatility score possible while at the same time be less volatile then you selected benchmark.
The volatility plot is based on your current default assumptions
To specify your specific time horizon and other computational
assumptions, please use our standard
Please note, the New York Stock Exchange (NYSE) and American Stock Exchange (AMEX) have recently merged.
Although Macroaxis has implemented solutions to handle this transition gracefully, you may still find some securities
that may not be fully transferred from one exchange to another.