Browse Data: Financial data can be imported from a spreadsheet or database, including up to 5,000 points of information for 1,000 different assets on the Enterprise edition. Time series graphs, covariances, betas and other general information is shown on the Data Browsing window.
Grouping assets may be considered an essential step: it allows to introduce investment constraints and to better analyze optimum portfolio assignments.
Investment constraints usually arise from corporate policies or legal considerations. Incorporating them is what differences the modern approach to the classic Markowitz diversification model. Defining constraints is straightforward via the shown interface. Up to 2,000 investment "rules" may be managed on the Enterprise Edition.
Select assets of interest - Even if you import data for a large number of assets (you can load up to 1,000 series on the Enterprise Version), Expert Investor easily allows you to restrict the analysis to a subset of them (and, of course, load and save subsets too).
Analyze opportunities - Basic diversification theory transforms into a rather impressive plot when EI draws the efficient investment frontier for every possible combination of two-assets. This diagram shows the general form of the final "feasible investment area" and reveals which assets confer a greater diversification power.
See constraints in action - Feasible area analysis, a unique feature of EI2, allows you to see all possible portfolios at a glance and the "core" of portfolios that may be bought taking into account all imposed constraints.
Expert Investor II has been completely written in Delphi and is a stand-alone application. No additional software or external libraries are needed. A a result, extremely fast and robust computations can be done, with outstanding stability.
Solve for the optimum The optimum portfolio can be obtained in seconds, even for complex portfolios. Results may be examined and exported either for individual assets or groups (shown).
Analize constraints impact - This feature will allow you to measure the marginal impact of every given constraint. This analysis is particularly useful as an input for evaluating corporate policies and defining adjustment priorities on public policies looking for financial efficiency.
Study higher moments - Via this option you can explore the effects of diversification on expected returns, standard deviation, skewness and kurtosis. A fully configurable interface allows you to plot the right combination of statistics. Of course, all constraints-related functionality is still available. |
