1.

Record Nr.

UNINA9910254253103321

Autore

Silva Antonio Daniel

Titolo

Portfolio Optimization Using Fundamental Indicators Based on Multi-Objective EA / / by Antonio Daniel Silva, Rui Ferreira Neves, Nuno Horta

Pubbl/distr/stampa

Cham : , : Springer International Publishing : , : Imprint : Springer, , 2016

ISBN

3-319-29392-3

Edizione

[1st ed. 2016.]

Descrizione fisica

1 online resource (108 p.)

Collana

SpringerBriefs in Computational Intelligence, , 2625-3704

Disciplina

620

Soggetti

Computational intelligence

Algorithms

Economics, Mathematical 

Finance

Computational Intelligence

Algorithm Analysis and Problem Complexity

Quantitative Finance

Finance, general

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

Description based upon print version of record.

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

Introduction -- Literature Review -- System Architecture -- Multi-Objective optimization -- Simulations in single and multi-objective optimization -- Outlook.

Sommario/riassunto

This work presents a new approach to portfolio composition in the stock market. It incorporates a fundamental approach using financial ratios and technical indicators with a Multi-Objective Evolutionary Algorithms to choose the portfolio composition with two objectives the return and the risk. Two different chromosomes are used for representing different investment models with real constraints equivalents to the ones faced by managers of mutual funds, hedge funds, and pension funds. To validate the present solution two case studies are presented for the SP&500 for the period June 2010 until end of 2012. The simulations demonstrates that stock selection based on financial ratios is a combination that can be used to choose the best companies in operational terms, obtaining returns above the market



average with low variances in their returns. In this case the optimizer found stocks with high return on investment in a conjunction with high rate of growth of the net income and a high profit margin. To obtain stocks with high valuation potential it is necessary to choose companies with a lower or average market capitalization, low PER, high rates of revenue growth and high operating leverage.