Model Assumptions

Fundamental or Market attribute to focus current portfolio

List of symbols for Model Portfolio

Portfolio Theme

Macroaxis Investing Ideas are hand-picked groupings of equities based on different criteria. Model ideas are different then model portfolios in that they are predefined and rebalanced daily to adjust to optimal risk-adjusted return projections. You can use model ideas to generate better portfolio suggestion.

Budget to be used to allocate positions during optimization process

Sample date period to use in the optimization process. It is the projected length of time over which an investment will be held before it is liquidated in the marketplace. 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. 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 basis, select 30 day as your time horizon

Maximum number of model positions to use to enhance your optimal portfolio.Model Portfolios or model ideas are built specifically to leverage some of your own or predefined performance enhancements techniques to enhance performance of your portfolios. You can specify the maximum number of positions to enhance your existing portfolio during optimization process.

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

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 us 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

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

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)

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

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.

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.

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.

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

The minimum risk-adjusted performance score (0 to 100) to filter your potential positions. If your expected return for current investment horizon is negative, the performance score will be 0 (zero) .

The minimum risk-adjusted performance score (0 to 100) to filter your potential positions. If your expected return for current investment horizon is negative, the performance score will be 0 (zero) .

Thematic investing ideas to narrow down your filtering criteria. Investing themes are used to generate better portfolio suggestion.

Equity position types to narrow down your filtering criteria. Possible types are Stock, Fund, ETF, and Crypto.