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Stock Market analysis website launched - www.diversifyportfolio.com
DiversifyPortfolio launches website focused on stock portfolio diversification and correlation analysis.
Unique data visualization techniques are employed to make sense of the stock market and to highlight potential areas of risk or opportunity. The platform analyzes large amounts of data from thousands of stocks and presents the information in meaningful ways.
DiversifyPortfolio.com leverages the concepts of big data and correlation to reveal relationships that exist between individual stocks, Industries and Sectors of the market. Instead of only focusing on individual positions, the website provides tools for smart portfolio construction and the efficient use of capital.
The website operates independently of any existing trading platform or broker, which means investors are able to do their research and analysis before making changes to their actual portfolio.
Users are provided with the following tools:
- Outlier analysis: The ability to find stocks that are outliers in their respective Industries. Create interactive scatter charts of stocks grouped by Industry and benchmarked against multiple exchange traded funds.
- Scans: Multiple stock market scans take the correlation of existing positions into account when searching for stocks that meet the investors requirements. Over 1500 of the most actively traded stocks can be ranked according to their historical correlation along with their suitability to be added to an existing portfolio.
- Portfolio Allocation: The "minimum correlation algorithm" takes past returns, correlation and volatility into account when suggesting optimal position sizes. Positions that aid in further diversifying a portfolio are sized more favorably.
- Pair Trading: Perform a complete statistical analysis on any two stocks to determine their suitability to be traded as a pair. Multiple charts and statistics are computed through cointegration and regression analysis.
- Cluster Analysis: Cluster charts calculate the correlation of hundreds of stocks and chart the results in the form of a tree like structure. These charts provide the ability to analyze relationships between stocks within Industries and Sectors across the market.
- Dashboard: Analyze potential portfolio changes by creating a side by side comparison portfolio. Heatmaps, histograms and numerous other data visualizations highlight the impact of potential new positions.
"Diversification is one of the most important components of long term success in the market, yet most platforms only focus on individual trades with little regard to portfolio construction."