Asset allocation model
Diversification is the age-old strategy of owning securities with different risk attributes to mitigate total risk in a portfolio. The opposite of diversification is creating a highly concentrated investment portfolio, where the investor may only own a handful of stocks or just one or two stocks. As a result, the potential reward/risk of loss is much higher than a portfolio with securities diversified across a sector, style, and region.
This asset allocation model was created using Diversification Score® - our unique quantitative algorithm that analyzes the risk metrics of all industries and stocks included to find the most resistant models to changes in the market situation.
Every day, Artificial Intelligence surveys the quality of selection and allocation of shares in the portfolio and evaluates its level of diversification. As soon as it falls below "Good," the portfolio is automatically rebalanced.