About Portfolio Manager
Rely on proven and robust theory and use Markowitz’s Modern Portfolio Theory and Black-Litterman’s approach to act like professionals. Portfolio Manager brings you these skills in an instant web application.
What are the benefits for you?
For more information and practical experience, feel free to request the demo.
How to use it?
We assume you already have a portfolio (but it is optional). If so, the fundamental use case is the following, and it only takes a few seconds:
Submit your positions easily
Check your risk-performance metrics on graphs and charts
Compare your current portfolio with efficient ones (on efficient frontier)
Choose a new portfolio collection by your risk-aversion profile
We take your portfolio and calculate risk-performance metrics like expected return, volatility, Sharpe ratio, and value at risk. Let’s have an example of a portfolio (equally weighted FAANG).
Then let’s analyze your portfolio against efficient frontier. One important thing should be mentioned in this place: efficient frontier is calculated from a specific pool; in this case, it is companies involved in S&P 100 index. If you would like to use only FAANG stocks, you can specify your own pool.
The efficient return and volatility (riskiness) of your portfolio determine a location in a graph.
The blue point shows the location of your portfolio, and the x-y coordinates represent the risk and reward of that portfolio.
A curve in the plot is an efficient frontier that is created by points representing the set of optimal portfolios sorted by investment risk aversion – the short end starts with a minimal volatility portfolio, and the continuum goes to the right, ending up in the portfolio with the highest return.
You can choose an arbitrary point lying on the curve, and then detailed information is revealed.