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AI for Portfolio Optimization: unveiling smart investment strategies

Alessio Garzonio

Artificial Intelligence is transforming the way we are approaching investments.

Asset allocation, trading processes, risk management and other areas of portfolio management: many financial advisors are already using these technologies to provide investors with customized financial products. 


What is portfolio optimization and how AI can enhance it

Portfolio management is the activity of controlling a group of assets, like bonds, cash and stocks to meet long-term financial goals.

AI can be used to run more accurate analysis and make asset allocations more efficient for every portfolio, providing estimates of returns and variances/covariances to determine optimal asset weights.

Furthermore, AI can easily assess earnings transcripts, identify correlations between securities and market indicators, and monitor keywords and topics trending online.

PulseFolio and Finary AI: new approaches for Portfolio Optimization 

In this fast paced environment, new solutions are taking over the market. 

For example, PulseFolio uses advanced algorithms and analytics to help traders optimize their crypto portfolios, providing customized recommendations for each user on a very intuitive platform.

Finary AI is a digital financial advisor powered by GPT-4, available 24/7 via app, that automatically scans users portfolios and gives them a comprehensive report.

At this very moment, there is just a beta version rolling in France, but it will soon land on the international markets.

The main advantages of this solution lies in its potential to:

  • Assesses the overall strategy
  • Identifies portfolio’s strengths and weaknesses
  • Suggests high-impact improvements


FinScience for Retail Platform: the missing piece

FinScience keeps developing financial solutions to let users deep dive and analyze their investment portfolio from a brand new point of view. 

Our portfolio analysis focus on:

  • Thematic exposure 

providing useful insight on themes and related equities, for example “Your portfolio includes 35% SaaS, 42% Cloud computing, 23% 5G. Similar themes are MedTech, Robotics, Deep Learning. Technology trends is the most relevant thematic area in your portfolio.”

  • Diversification 

generating powerful suggestions on how to cover the most relevant themes, for example “You don’t have any relevant exposure in health technologies themes. See Medtech, Vaccine, Telemedicine, Mental health and other 3 themes.”

  • ESG Risks

giving reliable advice on Environmental, Social and Governance exposure, for example “Your ESG risk score is 75/100. Climate change is the ESG category you are most exposed to and these are the worst players in your portfolio”.