Diversified? Easier Said than Done

How AI is taking Portfolio Construction and Diversification to the next level

⚽️ What Do Pep Guardiola and Ray Dalio have in common?
In the same way Premier League managers prepare for a match, when we invest we have to position ourselves correctly and combine the assets we have the best way possible to deliver high-quality and stable performances.

⛔ Correlation Can Be A False Friend
Getting diversification right is complex. This happens because asset correlations change, and so does their diversification benefit. To keep up the pace, we need tools designed to cut through complexity and continuously identify new opportunities as they arise.

🔑  AI+Diversification = Better Positioning
AI models are taking portfolio construction to a whole new level, beyond the traditional low-correlated portfolio. They are allowing investors to achieve a forward-looking, robust positioning of their portfolios built to withstand the gradual unfolding of financial markets.

Other research papers:

Building AI that Investors Can Rely On

🏦  Building Reliable AI is a Must. Not an Option.
With great power comes great responsibility” is not just Spiderman's catchphrase. I...


Are Sectors the New Factors?

In this paper, we look inside the Holy Grail of diversification and see how it works in a world where financial markets are as complex as they are fas...