How It Works
Better Performance / Lower Risk
Professional traders outperform the market because, mainly, they diversify their portfolios instead of concentrating their attention on a single security. Our new portfolio optimization tool allows doing exactly that. Retail investors now have the ability to create optimal portfolios across a number of securities and determine how to combine them in the most profitable way.
Unlike other providers, we deliver allocation calculations on a daily basis, rather than on a monthly or yearly basis. This allows customers to rapidly respond and adapt to changing market conditions.
Start by selecting any number of securities and a period. The tool will give you the securities that correspond to three types of portfolios: Minimum Risk, Maximum Returns, and Equal Allocation. In each of these portfolios, it will also show the daily and annual returns and risks (*).
Minimum Risk: Produces a portfolio with such a low risk that no other combination of the same securities can beat.
Maximum Returns: Produces a portfolio with the highest Sharpe ratio (a favorite among investors)
Equal Allocation: Produces a portfolio that places an equal amount of funds in each security (the simplest but usually a low-performing strategy).
(*) We use the standard deviation of the returns to calculate risk.
The performance demonstrates the percentage of times that returns exceeded zero (win vs loss ratio). Stocks sampled included AAPL, AMZN, FB, IBM, MSFT, NVDA for a period of 5 days considering 15-minute bars (Ref. March 22 to 26, 2021).
Outperform yourself! Use returns and risk to narrow down your selection and respond to market conditions.
A summary of the performance calculations are delivered using current price data. Daily and Annual returns are both included as part of this calculation.