Method based on multiple share combinations for optimizing...

Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance

Reexamination Certificate

Rate now

  [ 0.00 ] – not rated yet Voters 0   Comments 0

Details

C705S035000

Reexamination Certificate

active

07555452

ABSTRACT:
A method and a computer program for optimizing the return of an investment portfolio are disclosed. Pre-selected stocks are swapped in function of their inter-related price fluctuations. As soon as a stock rises more than say 15% compared to other stocks, half of it is sold to acquire the cheaper shares. By doing so systematically for all possible stock combinations, the number of shares increase gradually and eventually their values, as compared to a classic buy-and-hold strategy or a global index. The process includes a mechanism that creates and exploits multiple stock combinations, growing sharply with the number of stocks held. A spreadsheet traces actual share-price correlation and manages the portfolio, starting from a buy and hold strategy, applying a buy-low and sell-high tactic, and containing risk through build-in stops. Thereby an adapted stock screening program is provided, enabling to construct a diversified portfolio with correctly priced, good value stocks.

REFERENCES:
patent: 5220500 (1993-06-01), Baird et al.
patent: 5933815 (1999-08-01), Golden
patent: 6484151 (2002-11-01), O'Shaughnessy
patent: 6601044 (2003-07-01), Wallman
patent: 6832210 (2004-12-01), Li
patent: 2003/0101129 (2003-05-01), Waddell et al.
Profiting from the Vargaries of Human Nature by Andrew Capan, Global Investor, Jul./Aug. 1994, issue 74, p. 17.
Against the Tide; Contrarian Picks for When the Market Turns Aline Sullivan. International Herald Tribune. Paris: May 16, 1998. p. 17.
Vanguard Windsor Fund Prospectus, Jun. 1, 1999. Retrieved from http://www.sec.gov/Archives/edgar/data/107606/0000893220-99-000415.txt.
Gatev, Evan G. et al. “Pairs Trading: performance of a relative value arbitrage rule”, Yale School of Management, New Haven, CT, First Draft Jun. 1998; Current Draft: Feb. 27, 1999.

LandOfFree

Say what you really think

Search LandOfFree.com for the USA inventors and patents. Rate them and share your experience with other people.

Rating

Method based on multiple share combinations for optimizing... does not yet have a rating. At this time, there are no reviews or comments for this patent.

If you have personal experience with Method based on multiple share combinations for optimizing..., we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Method based on multiple share combinations for optimizing... will most certainly appreciate the feedback.

Rate now

     

Profile ID: LFUS-PAI-O-4082834

  Search
All data on this website is collected from public sources. Our data reflects the most accurate information available at the time of publication.