In 1952, a gentleman named Harry Markowitz put forth a theory exploring how one would apply mathematical theory to the management of investment securities, setting the stage for what is now referred to as Modern Portfolio Theory. In short, Harry posited that each individual investment – be it a stock, a bond, or a derivative – has a certain amount of risk, measured by its variance or how much its value moves around, and an expected return given that risk. The real insight, however, was to look at how a set of investments behaved collectively, instead of in isolation. This spurred the notion of diversification – you can smooth out your returns by holding things that move in opposition to each other, by holding assets that have negative correlations in industry parlance.
We’re expanding our investment management offerings today to offer the capability to address some key questions with the Predictive Market Scenario service.
The world’s most sophisticated, trusted financial models have landed on Bluemix! For decades IBM Algorithmics has helped some of the world's largest financial institutions to manage their risk. Now we’re bringing that same capability to the cloud through a new set of Bluemix services.
The Investment Portfolio service maintains a record of your investment holdings through time, in an easily accessible state right on IBM Bluemix. The service provides persistent storage of all your portfolios and their associated transactions using flexible object definitions so you can store more information without worrying about format.