Overview


Asset allocation involves applying a strategic stock selection and sizing strategy to your portfolio and then rebalancing the portfolio regularly to maintain the specified allocations.

The goal is to create additional value and thus superior returns when compared to traditional buy and hold strategies.

Multiple portfolio allocation strategies are available which include:

  • Minimum Correlation Algorithm
  • Volatility Weighted Momentum
  • Elastic Asset Allocation
Each allocation strategy has different strengths and are typically chosen based on an investors goals and risk preferences.


By applying an asset allocation strategy to a portfolio, investors will typically make regular adjustments to maintain the suggested position sizes or holdings in an effort to achieve market beating returns.

Using the asset allocation tool involves:

  1. Creating a portfolio of stocks and ETF's within our Portfolio Analyzer tool
  2. Selecting one of the allocation strategies based on your objectives
  3. Analyzing the results of the analysis and adjusting the portfolio if required
  4. Rebalancing the portfolio regularly (eg: monthly, quarterly) to maintain the portfolio composition suggested by the asset allocation tool
If you are new to the concepts of asset allocation and diversification, several educational articles and videos are provided to our members.

Features


Visually analyze your portfolio allocation by Position, Sector and Industry.


Select an asset allocation strategy based on your objectives. We provide strategies that are more or less aggressive, or which focus more on diversification.


Create a chart of your stock portfolio on the efficient frontier using principles from Modern Portfolio Theory.


Positions which are over or under weight are flagged, allowing you to adjust or remove them.


Create multiple portfolios to analyze using different allocation strategies.

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