If the year to date stock market has left us with any enduring lessons, it’s that asset return distributions can be significantly skewed and asymmetrical, but it is possible to manage the risk and control risk in a Portfolio (risk is defined as the volatility of daily returns.) In this edition of Guest Post, QuantInsti discuss portfolio management, which, in my opinion is often misunderstood. A Comprehensive Guide to Portfolio Management Portfolio management is a technique of managing investment portfolios by analyzing the risk/return trade-offs of a portfolio as a whole and its underlying securities. When it comes to trading, portfolio management is often used in rotation strategies. In these strategies, the trader will divide funds into various sectors of the market so that they can take advantage of any opportunities within that sector while avoiding over-investing in one sector. What is a Portfolio? A portfolio is an investment
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