Predictive Equity Analytics: Portfolio Crisis Proofing and Superior Returns

34 Pages Posted: 25 Nov 2020

Date Written: September 3, 2020

Abstract

Investor’s returns are enhanced by predictive equity analytics ability to avoid drawdowns and capture gains in bull or bear markets. Predictive equity analytics enables optimal stock selection, timing and bid price with accuracy and reliability. Portfolio value behavior over time is positive and generally a non-decreasing step function. Next trade day predictive equity filtering significantly reduces left tail risk enabling positive returns with high probability. Hedging (crisis proofing) of equity portfolios is a natural artifact of predictive equity analytics with no additional cost and no additional financial instruments required. Portfolios are dynamically constructed using dynamic diversification with higher Sharpe ratios and maximal investment efficiency. Predictive equity analytics enables mean-variance return dominance.

Keywords: predictive equity analytics, machine learning, portfolio hedging

JEL Classification: C22, C32, C48, C53, C58, G11, G12, G19

Suggested Citation

Zanecki, Mark, Predictive Equity Analytics: Portfolio Crisis Proofing and Superior Returns (September 3, 2020). Available at SSRN: https://ssrn.com/abstract=3703297 or http://dx.doi.org/10.2139/ssrn.3703297

Mark Zanecki (Contact Author)

IHA Consultants ( email )

174 Grande Meadow Way
Cary, NC 27513
United States
19192603291 (Phone)

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