Using machine learning to provide custom investment portfolio analysis
Machine Learning allows us to investigate portfolio data and performance without preconceptions, and identify natural sets and breaks hidden in the dataset, to improve the investment process. It bypasses the need to set arbitrary groups or categories that might appear logical but do not suit the data, and which would obscure potentially important messages.
The result of using machine learning is personalised analysis for every portfolio rather than using a ‘one size fits all’ approach. Harnessing this data science allows us to precisely identify the unique characteristics and sources of alpha for each individual portfolio.
Using machine learning, asset owners and asset managers are able to see patterns and clusters in the data that would have otherwise been obscured.
Download the full paper here to understand how Inalytics are using machine learning to identify investment skill.
Contact us to learn more about how we analyse portfolios and decision making to improve the investment process and help select skilful portfolio managers.