Portfolio selection is the most basic technique in quantitative finance. It means forming a diversified portfolio of assets with minimum risk for a target level of expected returns.
This requires an estimate of the covariance matrix of asset returns. In the US alone, there are over 3000 stocks that are sufficiently liquid to be included in a client’s portfolio. The covariance matrix will be very large. This is where the expertise of Studdridge International comes into play. We help asset managers optimally allocate their clients’ capital across the widest possible range of investments.