New Stock Portfolio Model Beats Market Declines, Ideal for Risk-Averse Investors!
Stock portfolio optimization using a new method called relative robust risk parity aims to evenly spread risk among assets. By considering different scenarios for risk, the model selects a portfolio with the least relative volatility. Tested on 8 industries from the Tehran Stock Exchange, this approach outperformed traditional models in terms of returns and resilience to market downturns. Investors looking to protect against market declines should consider using this method for their stock portfolios.