Investment diversification as a strategy for reducing investment risk

Exploring Investment Strategies in Financial Markets through Agent-based Modeling: Active Investment Strategy and Passive Investment Strategy Exploring Investment Strategies in Financial Markets through Agent-based Modeling: Active Investment Strategy and Passive Investment Strategy

Recent progress of computer technology makes it possible to analyze financial and economic systems through simulation studies. Among them, agent-based modeling is promising. In this paper, using agentbased modeling from distributed artificial intelligence, I discuss the validity of passive investment strategies in financial markets where active investors who hold future information exist. As a ...

Information Production, Corporate Investment and Diversification Discount

This paper offers a market microstructure based model to explain the well-documented diversification discount. While explicitly assuming that stock price conveys valuable information to the management, our model shows that the value loss from diversification is a function of the stock price informativeness. If more investors are willing to follow and actively trade a certain stock, more informa...

Fuzzy Risk Analysis Model for E-tourism Investment

This paper provides a Fuzzy based decision support system (DSS) for risk analysis in E-tourism ( Electronic Tourism ) investment. In general term, E-tourism is the use of information and communication technology (ICT) in tourism which may allow operating tourism in least variable cost, least time and increased work efficiency. It is worth noting that there are many factors that affect the deve...

contrarian investment strategy based on reward-risk stock selection criteria

stock selection criteria play a key role in contrarian portfolio construction. the usual approach is applying cumulative return as stock selection criteria however applying this criterion leads to ranking stocks without considering investment risk. in this study, we analyze contrarian strategies that are based on reward–risk stock selection criteria in contrast to ordinary contrarian strategies...

The Importance of Investment Strategy