Portfolio Optimization

As operations in a financial institution become more complicated, there is a need to consider a variety of tradeoffs in terms of returns on investments. The interaction of accounts, the variety of outcomes to consider, and factors that are outside of the control of the institution make operations more difficult as the variety of choices of investment of limited resources expands. Analytic Focus helps by considering rates of risk and rates of return for each type of investment, conditioning these on expected market conditions, and developing a strategy for portfolio optimization that considers all tradeoffs. Our models offer alternative strategies, finding where returns are similar under different strategies and impervious to external change.