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https://doi.org/10.2478/zireb-2020-0012

A-KA Model: an Optimization of the Stock’s Portofolio

Filippo Regina ; Dipartimento di Economia e Finanza, University of Bari “Aldo Moro”
Mauro Gianfranco Bisceglia ; Dipartimento di Economia e Finanza, University of Bari “Aldo Moro”


Puni tekst: engleski pdf 1.216 Kb

str. 21-40

preuzimanja: 354

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Sažetak

The elaborate proposes a compact alternative methodology to the classical stocks portfolio optimization based on the normal distribution of the returns of the assets named Adaptable - Kurtosis Asymmetry model (A-KA). In the financial theory is well-known that odd-order moments of a distribution describe a particular performance characteristic; on the contrary, the even-order moments tell a precise sense of risk of a distribution of returns. If it is true that, in general terms, minimizing the variance also minimizes the volatility of portfolio return is also true that we should minimize the kurtosis to get away from unpleasant situations in case “Extreme” events occur, especially if negative. The idea behind this paper is to exploit the four moments of return’s distributions, optimizing an alternative risk indicator to variance, such as the kurtosis of the final distribution of the portfolio, making constraints on distributive asymmetry, in a dynamic underlying logic.

Ključne riječi

Asset Allocation; Portfolio construction; Stocks; Skewness; Kurtosis; Active Return; Rebalancing

Hrčak ID:

247283

URI

https://hrcak.srce.hr/247283

Datum izdavanja:

30.11.2020.

Posjeta: 1.135 *