What is Macroaxis Five Star Portfolio Optimization technique?
The Five Star Portfolio Optimization technique refers to the simple methodology we use to achieve better diversification. Using the Portfolio Optimization Pitchlet, you can evaluate the One-Day Value At Risk of the optimal portfolio along with total risk, expected return, Sharpe ratio and Treynor ratio. The model picks the optimal portfolio from the efficient frontier given your specified level of risk, and a set of constraints on weight and return. The resulting portfolio is then compared to your existing portfolio. As a rational investor, your main objective is to outperform your existing portfolio in all 5 categories. For each category in which you outperform your existing portfolio, you will get one star. The best optimization is achieved when, after several iterations, you get all five stars.
