THE PORTFOLIO DESIGNER: A basic tool to reduce the markets complexity and make a short list of assets to invest.

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THE PORTFOLIO DESIGNERA basic tool to reduce
the markets complexity and make a short list of
assets to invest.

• TARGET USERS
• Private Investors
• Brokerage AXE ,AXE???, ?????
• BANKS
• FINANCIAL ORGANIZATIONS

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MAIN OBJECTIVES

• To result in to a short list and optimal
  allocation of assets to invest
• To Design Hedging with Derivatives

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BASIC FUNCTIONALITIES

• Optimal Portfolio Selection
• Hedge Designer
• Historic Simulation

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HUNAM-AND-COMPUTER INTERACTION PRINCIPLES OF
QUALITY IN THE DESIGN OF THIS SOFTWARE

• As few as possible menus and input-and out-put
  forms
• As simple and friendly as possible, interface
• As much as possible hidden automation
• We keep it intelligent and as simple and
  self-evident as possible
• Artificial Intelligence methods

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INTERNAL STRUCTURE QUALITY OF THE PROGRAM

• Full use of the most modern design and
  programming technology
• Optimal internal structured programming for speed
  and real-time efficiency
• Effective both on recent and less recent hardware
  
• Full communication with Microsoft Office and
  other programs

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MARKOVITZ THEORY OF PORTFOLIOS RISK AND PROFIT

• Classification comparison and preference of
  Portfolios based on risk and profit
• Profit measuresAverage Rate of Return
• Risk measures
• Volatility
• Elasticity
• Combinations

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PORTFOLIOS OF MAXIMUM PROBABILITY OF PROFIT

• The cut-off-rate technique
• The Sharp ratio of profit and risk
• The Treynor ratio of profit and risk
• Find the portfolio that has the maximum
  probability to result to a profit above a preset
  level

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CONTSTRAINTS ON THE DESIGN OF PORTFOLIO BY THE
USERS

• Constraints on the number of assets
• Constraints through short listing based on
  fundamentals
• Constraints through short list based on news
• Analysis
• Constraints through arbitrary short lists
• Constraints by indexes

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DEFENSIVE , OFFENSIVE AND NEUTRAL PORTFOLIOS

• The elasticity of the portfolio relative to the
  general index
• Less than 1 Defensive
• More than 1 Offensive
• Negative Opposite to the Market
• Positive Parallel to the Market

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NEUTRAL PORTFOLIOS DESIGNER

• Find the Portfolio of zero elasticity relative to
  the market

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HEDGING A PORTFOLIO WITH DERIVATIVESHEDGING
DESIGNER FOR HEDGE FUNDS

• After choosing the elasticity, estimation of the
  required futures or options to hedge the
  portfolio (Delta neutral hedging )

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RISK-AND-PROFIT PORTFOLIO FREE DESIGNER

• The dependence and changes of risk and profit
  when the percentages change (for sub optimal
  design experimentation)
• A matrix with arrows for sensitivity analysis
  experimentation

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HISTORICAL PORTFOLIO SIMULATOR

• Historical Simulator for testing the Portfolio
• in the past.
• User defined transaction costs and Bid-Ask
  spreads costs

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CRYSTALL-CLEAR PRINT OUTS OF ALL THE TABLES AND
IMAGES

• Print outs of all the out put tables of the
  program
• The print outs admit export in Excel for user
  defined modifications

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COMMUNICATION OF THIS PROGRAM WITH ITS
ENVIRONMENT AND OTHER PROGRAMS

• Exporting to Microsoft Office
• Excel
• Access
• Word
• Etc.
• Link and feed of data from other programs.

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TECHNICAL SPECIFICATIONS

• Software Little space to store
• HardwareRuns in Pentiums 1,2,3,4
• In Windows 98 ,NT etc
• Communicates, if wanted, with the Internet

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ADVANTAGES OF THIS PROGRAM

• Advantages compared to other programs
• Supports Historic Simulation
• Support Hedging with Derivatives
• It is fast and simple to use