Are Weak Data Visualizations Preventing You From Maximizing Alpha?

3 min read
May 20, 2021 1:24:54 PM


How Wealth Owners Are Unlocking Insights With Machine Learning

Did you know, society generates 1.145 trillion megabytes of data every single day? The world of data is a sandbox of discovery—the challenge is using it effectively. 

That can be overwhelming. Artificial Intelligence and machine learning are catching up with big data, and it's easier than ever to benefit from the shift. Even those who don’t crunch numbers for a living will be able to enjoy organized data and visualization which will enable greater understanding of our portfolios and enables more powerful decision-making. 

Artificial Intelligence and Better Data Visualization Provide a Competitive Edge

For decades people have been trying to understand and exploit data. Take a look at the number of market visualization tools that have surfaced lately. They allow just about anyone to interpret signals and make predictions based on their own perspective. We can leverage those advances in visualizations and use machine learning algorithms to make them sharper and more effective. 

Until recently, these algorithms were out of reach for the average investor. Today, developers are building platforms and services that make deep learning accessible to everyone. There are obvious use cases such as interactive graphs or elegant charts. But from there, it's easy to imagine a world where your portfolio is benchmarked against others in a similar cohort, allowing you to fine-tune your strategy. 

Using the right wealth management platform will allow wealth owners and family offices with complex portfolios to access these data visualizations and unlock a complete picture of their overall wealth in exciting new ways.



Fundamental Analysis

These AI-powered visualizations can help investors gain insight into asset classes. The algorithms can uncover hidden correlations between those same asset classes and use this data to suggest which investment opportunities may outperform others.  

We can use AI to scan things like annual reports, economic articles, and other financial datasets to gain more helpful insight into the fundamentals of a company. All of this combined can lead to a more effective asset management strategy.



Better Portfolio Understanding

Artificial intelligence can also help us by better predicting future outcomes or expected returns, which can aid with optimal asset weights. 

Algorithms are capable of handling complex optimization problems. For instance, they can restrict the number of assets or set minimum holding thresholds, leading to more significant portfolio insights. 



Risk Management

AI can analyze qualitative data, like news reports or social media, to assess for risk. Additionally, it can forecast risk variables ensuring absolute risk falls within tolerable levels. 

It can also assist with transaction costs for large purchases. It can find the best prices for breaking up more significant trades into smaller chunks.

Algorithmic traders already use artificial intelligence (we just call them Robo-advisors.)


Artificial Intelligence Improves Accessibility to Data Visualization

These tools can supercharge your visualizations. Wealth owners can capitalize on the advancements and availability of algorithms to find insights in the same way financial analysts of the past did without the need to manually calculate outcomes. 

If you're looking to improve your portfolio management, we can help. Our wealth management platform uses AI technology to bring all your Assets Under Intelligence. 

Let Copia help you Simplify Wealth. Like to learn more? Get early access today.

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