Wed Jun 23, 2021
For those who were unable to hear my presentation at the MoneyShow in Orlando last week, let me summarize the key points and make the slides available to anyone who may have missed them. Please feel free to contact me if you would like to receive the slides of the presentation on our quantitative work at Cumberland Advisors.
- Quantitative finance is still relatively new. It has advanced quickly since the ’90s.
- Computer trading has taken up a substantial portion of the US equity market volume.
- The stock market demonstrates random behaviors. Quantitative trading seeks patterns that are unobvious to the naked eye.
- One of the most renowned examples is the golden ratio.
- The golden ratio exists in many places in nature.
- Here is a hypothetical portfolio constructed based on numbers solely related to the golden ratio: https://www.cumber.com/market-commentary/outperform-market-ii-golden-ratio.
- We combine quantitative analysis and fundamental theories in finance for our quantitative strategies.
- Quantitative finance focuses on improving risk-adjusted performance.
- Why is risk performance important?
- Common risk measures
- Cumberland Advisors uses quantitative analysis to attempt to improve our risk performance.
- Cumberland Advisors quantifies market behaviors and then trades the identified market opportunities.
- Cumberland Advisors deploys leverage in quantitative finance.
- Understand and take advantage of leverage when appropriately managing risk.
- Leverage through ETFs vs. margin debt.
- Cumberland Advisors offers low-volatility investments to risk-averse investors and a leveraged investment to financially qualified risk lovers.
Once again, feel free to contact me via email to request the presentation slides regarding our quantitative work. I look forward to your questions and comments.
Leo Chen, Ph.D.
Portfolio Manager and Quantitative Strategist
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