Dynamic portfolio optimization

Abstract

A Short term investor is looking for immediate gains. He has to keep changing his stocks so that he gets the maximum returns. This project aims to do that . Initially the market trends are studied and a model is come up with. We get the bounds for the return and say that if the return go outside these bounds then optimally is lost and we need to reallocate the stocks. These bounds are found by various methods. This project uses the Bon ferroni bounds and improved inclusion exclusion bounds. Further this project explore the possibility of using abstract tubes via signal detection problem . It also explores the idea of network reliability as done by kiaus Dohmen. Five stocks were analysed and the stocks following a long normal distribution were used for all the analysis. To break the problem down we use only 2 or 3 stock portfolios.