Our Methodology.
Advanced portfolio analysis powered by academic research
How RiskOptimix Works
A simple approach to modern portfolio analysis
Multi-Layered Analysis
We combine traditional portfolio metrics with GARCH ensemble models to provide both immediate insights and risk forecasting.
- Essential portfolio statistics
- Risk metrics (VaR, Sharpe ratio, maximum drawdown)
- Advanced volatility modeling
Advanced Models
Our Premium forecasting uses advanced volatility models, making professional risk management accessible to everyone.
- CCC & DCC ensemble modeling
- Dynamic correlation analysis
- Time-varying risk forecasts
Our Four-Step Process
From raw data to insights
Data Collection & Validation
We retrieve up to 10 years of historical data for each stock in your portfolio. Our system validates data quality and handles corporate actions to ensure accuracy.
Statistical Analysis
We calculate portfolio metrics including returns, volatility, correlations, and risk measures. This forms the foundation for understanding your portfolio's current risk profile.
Advanced Modeling Premium
For Premium analyses, we apply ensemble GARCH models that combine multiple volatility models (GARCH, EGARCH, TGARCH) with different probability distributions to create robust forecasts.
Risk Forecasting Premium
Using either CCC (constant correlation) or DCC (dynamic correlation) models, we forecast future portfolio risk and provide insights for risk management.
Technical Framework
The mathematics behind professional risk management
GARCH Ensemble Modeling
We fit multiple volatility models for each asset:
- GARCH - Standard volatility clustering
- EGARCH - Asymmetric volatility effects
- TGARCH - Threshold effects
- APARCH - Asymmetric power effects
Correlation Dynamics
Two sophisticated approaches to correlation modeling:
Constant correlations, faster computation, stable results
Time-varying correlations, captures market dynamics
Risk Forecasting
Multi-horizon portfolio risk predictions:
- 1-day ahead - Immediate risk assessment
- 5-day ahead - Weekly risk planning
- 22-day ahead - Monthly forecasting
- Confidence intervals - Uncertainty quantification
Why This Approach Matters
The difference between basic analysis and professional risk management
Predict, Don't Just Analyze
Traditional portfolio analysis only tells you what happened. Our approach predicts what's likely to happen next, helping you make proactive risk management decisions rather than reactive ones.
Capture Market Dynamics
Our DCC models recognize that correlations change during market stress. When markets crash, correlations often spike—and our models capture this, providing realistic risk estimates when you need them most.
Institutional-Quality, Individual-Friendly
We automated the use of advanced risk models. Get high-quality analysis without the complexity or cost barriers.
Evidence-Based Decision Making
Every forecast comes with confidence intervals and validation metrics. You know not just what we predict, but how confident we are in those predictions—critical for informed decision making.
Explore Our Methodology Further
Download detailed examples and technical documentation
Ready to experience professional portfolio analysis?
Contact
Get in touch with our portfolio analysis experts
riskoptimix@gmail.com
Response Time
We typically respond within 24 hours
Support
Technical support and portfolio analysis questions