Asset Portfolio optimization is based on Modern Portfolio Theory (MPT), which is based on the investment principle that investors want to obtain the highest return with the lowest risk. To achieve this goal, an optimal MPT-based portfolio needs to be highly diversified to avoid crashes when a particular asset or asset class underperforms, and to select assets with as low a correlation as possible.
The modern asset market is becoming increasingly dynamic. Market participants who manage asset portfolios need advanced optimization decision-making mechanisms to help manage asset portfolios in order to achieve expected returns. Relying on our advantages in optimization decision-making modeling, we can provide asset management institutions with customized portfolio optimization system models to enrich the optimization decision-making mechanism of asset management institutions.
Our asset portfolio optimization services is shown in the following figure:
Our typical portfolio optimization customization include:
- Expected Return Estimation
- Risk estimates (e.g. covariance of asset returns)
- The objective function to be optimized
- Optimizer (IBM ILOG optimizer is recommended)
Feel free to contact us to learn more about portfolio optimization solutions.