Portfolio Diversification with Graph Theory
- Video Lesson
- 39 min
- Download Presentation Notebook
Estimated Time: 39 min
Course Level: Intermediate
Requirements: This course requires a basic knowledge of graph theory and some experience with Mathematica.
Sufficiently diversifying a portfolio is an important part of smart investing. This class uses graph theory to assess diversification. Correlation values are used to inform connections on graphs, which are then used to determine asset allocation. This class requires a basic knowledge of graph theory and some experience with the Wolfram Language.
Featured Products & Technologies: Mathematica, Wolfram Language, Wolfram Notebooks
You'll Learn To
- Evaluate diversification in risk management
- Quantify cumulative returns and diversification strategy
- Diversify with low and negative return correlations
- Use graph theory to visualize correlation information