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Risk Parity Portfolio

This article was written by Sergey Okun – Senior Financial Analyst, I Know First, Ph.D. in Economics.

The risk parity portfolio technique enables us to identify optimal asset weights in the portfolio so that the contribution of each asset toward the total portfolio risk is equal.
I Know First provides daily market forecasts for a broad range of financial assets for six investment horizons from 3-day to 1-year which help to identify the most promising financial assets according to the AI algorithm.
We can build a portfolio based on the IKF AI algorithm, and construct the risk parity portfolio where each asset has the same risk contribution rate to the total portfolio risk.

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This article was written by Sergey Okun – Senior Financial Analyst, I Know First, Ph.D. in Economics.

Investors are differentiated according to different risk-taking levels, which leads to the existence of different portfolios taking into account investor preferences.
The four moments utility function enables us to construct portfolios taking into account investors' preferences about risk-aversion.
I Know First provides different forecast packages which allow us to select the most promising stocks for portfolio optimization.

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This article was written by Sergey Okun – Senior Financial Analyst, I Know First, Ph.D. in Economics.

Relative valuation is one of the basic concepts of stock evaluation that allows to determine undervalued stocks.
The Treynor-Black model allows to construct a portfolio with active and passive investment parts.
I Know First provides the Fundamental Stocks Package based on the AI algorithm which allows to select of the most promising stocks based on the fundamental criteria.