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1997 Risk Model delivered in Excel format to the financial market.
The HSBC James Capel Portfolio Analyser is tailored to the unusual structure
of the Australian sharemarket – the high concentration of mining companies.
It consists of a spreadsheet that analyses the risk of a portfolio of Australian
The Portfolio Analyser highlights the overall risk of a portfolio against a
number of different benchmarks and, importantly, the sources of this risk
in terms of both stocks and sectors.
The style views approach enables assessment of the portfolio using more
than one paradigm. This allows investors to better allocate stocks to
match their views of sector groupings, or the risk of the portfolio.
The key benefit of the Portfolio Analyser over rival products is its ability to
interrogate the engine, rather than being presented with a “black–box”
This page lists all the significant correlations between pairs of different stocks –
both significantly positive and negative correlations.
This information is useful in looking for arbitrage opportunities in the market.
For example, two companies’ share prices and dividend returns might move
closely together – perhaps due to a similar sector exposure. If their share price
returns move out of sync, for no apparent reason, we have the basis for a
possible pairs trading opportunity.