ITA Wealth Management

  • Home
  • Blog
  • Lifetime ITA Membership
  • Portfolios
    • Bethe Portfolio
    • Bohr Portfolio
    • Carson Portfolios
    • Dirac Portfolio
    • Einstein Portfolio
    • Franklin Portfolio
    • Galileo Portfolio
    • Gauss Portfolio
    • Huygens Portfolio
    • Kahneman-Tversky Portfolio
    • Kepler Portfolio
    • McClintock Portfolio
    • Millikan Portfolio
    • Pauling Portfolio
    • Rutherford Portfolio
    • Schrodinger Portfolio
  • Forum
  • Reset Password
  • Contact Me
  • ITA Feedback
  • About Me
You are here: Home / Archives for Portfolio Management / Portfolio Construction

Diversification Through Correlation Analysis

September 25, 2013 By Lowell Herr

“It’s not the number of assets that determines diversification, it’s the correlation among them.” – Richard Bernstein Diversification through correlation analysis is another step in our efforts to lower volatility while maintaining a respectable return for the ITA portfolios.  In the following example I’ve selected twenty-two (22) ETFs that are frequently used to populate the […]

Filed Under: Portfolio Construction

Correlation Matrix of Critical ETFs

September 27, 2013 By Lowell Herr

As requested in a comment, here is the correlation matrix of critical ETFs used in nearly all the ITA portfolios.  I cut the time frame to 23 months of data so VSS and VNQI did not show up with “short-term” data errors.  Identical percentages were assigned to each ETF with exception of SDS.  The percentages […]

Filed Under: Portfolio Construction Tagged With: Portfolio Construction

How to Construct a Portfolio

October 9, 2013 By Lowell Herr

If you are relatively new to investing or if you have been building a portfolio by selecting individual stocks and find you are under performing the market and wish to switch to index investing, how does one construct a portfolio?  Index investing is actually much easier and less stressful than stock picking.  Here are the […]

Filed Under: Beginning Investors, Critical Material, Portfolio Construction Tagged With: Portfolio Construction

Finding Low Correlated ETFs

October 18, 2013 By Lowell Herr

In keeping with HedgeHunter’s recent “Cluster Weighting” presentation, finding low correlated ETFs to pair with equity ETFs is essential.  The following correlation matrix shows a mixture of highly correlated securities along with modest and low correlated ETFs.  Only SDS is negatively correlated and that is strictly due to it being a short ETF.  In other […]

Filed Under: Portfolio Construction Tagged With: Portfolio Construction

QPP Analysis

October 22, 2013 By Lowell Herr

A Quantext Portfolio Planner (QPP) analysis was requested for the following ten securities.  In the analysis the S&P 500 is projected to return an annualized 7.0% over the next six to twelve months. QPP Analysis:  This array of 10 ETFs is projected to top the S&P 500 by 220 basis points annually.  The projected standard […]

Filed Under: Portfolio Construction Tagged With: Portfolio Construction, QPP Analysis

Portfolio Construction: The Essential Decisions

October 25, 2013 By Lowell Herr

William J. Bernstein, in his most recent book, “The Investor’s Manifesto” writes, “Before diving into the most important issue faced by any investor–the asset allocation decision–you will need to understand four things: save as much as you can, make sure you have enough liquid taxable assets for emergencies, diversify widely, and do so with passive […]

Filed Under: Portfolio Construction Tagged With: Portfolio Construction

How Many Assets Should I Hold In My Portfolio?

October 27, 2013 By HedgeHunter

This question has been asked in a number of Blog Posts and we pussy-foot around it because there really is no definitive answer. On the one hand we need enough to give us an adequate level of diversification (whatever that means) to reduce volatility (risk) while keeping our commissions, management costs and fees to a […]

Filed Under: Beginning Investors, Portfolio Construction Tagged With: Portfolio Construction

Portfolio Positions

November 5, 2013 By Lowell Herr

The following is a table of the structure of the portfolios tracked here at ITA.  Please react and let me know if this is helpful.  The table is incomplete, but readers will pick up the idea. Note that the percentages assigned to the Schrodinger are actually asset class assignments rather than percentages invested in the […]

Filed Under: Portfolio Construction Tagged With: Portfolio Construction

  • 1
  • 2
  • 3
  • …
  • 15
  • Next Page »

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Recent Posts

  • Testing Sample 25 ETF Portfolio August 9, 2013
  • Bullish Percent Indicators: 9 August 2013 August 10, 2013
  • Preparing For Next Week August 10, 2013
  • Using The Curie To Answer Some Important Questions August 11, 2013
  • Managing the Basic Portfolio August 16, 2013
  • Occam’s Razor and Investing August 26, 2013
  • Labor Day Weekend Music September 1, 2013

Recent Comments

  • HedgeHunter on Options Corner – 2 December 2020
  • HedgeHunter on GLD Options Inflation Play – 16 October 2020 Update
  • Lowell Herr on Rutherford Portfolio Review (Tranche 1) – 8 January 2021
  • Lowell Herr on Dirac Portfolio Review – 31 December 2020
  • HedgeHunter on Dirac Portfolio Review – 31 December 2020
  • Lowell Herr on Dirac Portfolio Review – 31 December 2020
  • Richard Dougherty on Dirac Portfolio Review – 31 December 2020
  • HedgeHunter on Dirac Portfolio Review – 31 December 2020
  • Richard Dougherty on Dirac Portfolio Review – 31 December 2020
  • Lowell Herr on Happy New Year
  • David Cross on Happy New Year
  • Lowell Herr on Portfolio Construction For 2021
  • Lowell Herr on Portfolio Construction For 2021
  • Lowell Herr on Portfolio Construction For 2021
  • LiftLock on Portfolio Construction For 2021

Tag Cloud

Aristotle Portfolio (79) Asset Allocation (21) Beginning Investors (86) Bethe Portfolio (62) Bohr Portfolio (101) Bullish Percent Indicators (314) Carson Portfolios (23) Copernicus Portfolio (35) Critical Material (141) Curie Portfolio (21) Dual Momentum (86) Einstein Portfolio (94) Euclid Portfolio (78) Feynman Study (25) Franklin Portfolio (23) Galileo Portfolio (89) Gauss Portfolio (107) Hawking Portfolio (207) Huygens Portfolio (92) ITA Portfolios (17) Kahneman-Tversky Portfolio (27) Kepler Portfolio (103) Maxwell Portfolio (33) McClintock Portfolio (21) Millikan Portfolio (46) Miscellaneous (49) Momentum (186) Music (40) Options (92) Pasteur Portfolio (25) Pauling Portfolio (54) Portfolio Construction (186) Portfolio Management (582) Portfolio Performance (651) Retirement Planning (21) Risk Management (62) Rutherford Portfolio (228) Schrodinger Portfolio (80) Short-Term Analysis (54) Spreadsheets (19) Stocks (40) Technical Indicators (21) Tranche Investing (70) Uncategorized (30) Weisskopf Portfolio (18)

Users Online

8 Users Online
Users: HedgeHunter, 3 Guests, 4 Bots

Most Popular Posts

  • Dirac Portfolio Review – 31 December 2020 (251)
  • Understanding The New Kipling Spreadsheet (211)
  • Toward A More Just Society: Part I (177)
  • Portfolio Construction For 2021 (158)
  • Asset Allocation Feature of the Kipling Spreadsheet (143)
  • What Is A Good Sortino Ratio? (140)
  • Sample Carson IRR Comparisons (112)
  • Is The Dual Momentum System Broken? (108)
  • Kepler ETF Rankings (107)
  • Toward A More Just Society: Part II (90)

General Investment News

Portfolios coming up for review are:  Schrodinger, Galileo, Einstein, and Pauling.  Non-scheduled portfolios may be reviewed.  If you are a new user, check the posts you missed. Links to Random Posts are found in the lower right-hand footer or just to the right of what you are now reading.  Most popular posts are found in the lower left-hand footer.

Contact me at itawealth@comcast.net if interested in a Lifetime Membership.  Current Platinum members will be grandfathered into a Lifetime Membership in the summer of 2021.

Random Posts

  • Testing Sample 25 ETF Portfolio
  • Bullish Percent Indicators: 9 August 2013
  • Preparing For Next Week
  • Using The Curie To Answer Some Important Questions
  • Managing the Basic Portfolio
  • Occam’s Razor and Investing
  • Labor Day Weekend Music
  • Harold Evensky’s Definition of Active vs. Passive Portfolio Management
  • The Feynman Study
  • “Momentum” Plus SHY Discussion of Feynman Portfolio

Log in | Website Design by BOING