THE PORTFOLIO DESIGNER:

A basic tool to reduce the

markets complexity and make a
short list of assets to invest.

 TARGET USERS:
 Private Investors
 Brokerage AXE ,AXEΠΕΥ, ΑΕΠΕΥ
 BANKS
 FINANCIAL ORGANIZATIONS
MAIN OBJECTIVES
 To result in to a short list and optimal
allocation of assets to invest
 To Design Hedging with Derivatives
BASIC FUNCTIONALITIES
 Optimal Portfolio Selection
 Hedge Designer
 Historic Simulation
 HUNAM-AND-COMPUTER
INTERACTION PRINCIPLES
OF QUALITY IN THE
DESIGN OF THIS
SOFTWARE
 As few as possible menus and input-and out-put
forms
 As simple and friendly as possible, interface
 As much as possible hidden automation
 We keep it intelligent and as simple and self-
evident as possible
 Artificial Intelligence methods
INTERNAL STRUCTURE
QUALITY OF THE PROGRAM

 Full use of the most modern design and

programming technology
 Optimal internal structured programming for
speed and real-time efficiency
 Effective both on recent and less recent hardware
 Full communication with Microsoft Office and
other programs
MARKOVITZ THEORY OF
PORTFOLIO’S RISK AND
PROFIT
 Classification comparison and preference of
Portfolios based on risk and profit
 Profit measures:Average Rate of Return
 Risk measures:
 Volatility
 Elasticity
 Combinations
PORTFOLIOS OF MAXIMUM
PROBABILITY OF PROFIT
 The cut-off-rate technique
 The Sharp ratio of profit and risk
 The Treynor ratio of profit and risk
 Find the portfolio that has the maximum
probability to result to a profit above a
preset level
CONTSTRAINTS ON THE
DESIGN OF PORTFOLIO BY
THE USERS

 Constraints on the number of assets

 Constraints through short listing based on
fundamentals
 Constraints through short list based on news
Analysis
 Constraints through arbitrary short lists
 Constraints by indexes
DEFENSIVE , OFFENSIVE
AND NEUTRAL PORTFOLIOS
 The elasticity of the portfolio relative to the
general index
 Less than 1: Defensive
 More than 1: Offensive
 Negative : Opposite to the Market
 Positive: Parallel to the Market
NEUTRAL PORTFOLIOS
DESIGNER

 Find the Portfolio of zero elasticity relative

to the market
HEDGING A PORTFOLIO
WITH
DERIVATIVES:HEDGING
DESIGNER FOR HEDGE
FUNDS
 After choosing the elasticity, estimation of
the required futures or options to hedge the
portfolio (Delta neutral hedging )
RISK-AND-PROFIT
PORTFOLIO FREE DESIGNER

 The dependence and changes of risk and

profit when the percentages change (for sub
optimal design experimentation)
 A matrix with arrows for sensitivity analysis
experimentation
HISTORICAL PORTFOLIO
SIMULATOR
 Historical Simulator for testing the Portfolio
in the past.
 User defined transaction costs and Bid-Ask
spreads costs
 CRYSTALL-CLEAR PRINT
OUTS OF ALL THE TABLES
AND IMAGES
 Print outs of all the out put tables of the program
 The print outs admit export in Excel for user
defined modifications
COMMUNICATION OF THIS
PROGRAM WITH ITS
ENVIRONMENT AND OTHER
PROGRAMS

 Exporting to Microsoft Office:

 Excel
 Access
 Word
 Etc.
 Link and feed of data from other programs.
TECHNICAL
SPECIFICATIONS
 Software : Little space to store
 Hardware:Runs in Pentiums 1,2,3,4
 In Windows 98 ,NT etc
 Communicates, if wanted, with the Internet
ADVANTAGES OF THIS
PROGRAM

 Advantages compared to other programs:

 Supports Historic Simulation
 Support Hedging with Derivatives
 It is fast and simple to use