One of the key properties of your investment strategy is the investment horizon. ✅
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On the other hand if you are investing activly, then you are trying to select the best assets in the index.
This video is dedicated to explaining what is the investment horizon in the context of active portfolio management✅
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We start with two key definitions:
✅Investment horizon;
✅Information Coefficient (IC);
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Next we explain what are lagged IC and horizon IC. 💹
💯This relationship gives opportunity to us to find the optimal investment horizon for given factor portfolio. It is very important, because it can directly tells how long should investors hold active portfolio ✅
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This video is based on several research papers on active portfolio management. Most importantly: Qian, Hua and Sorensen (2007) "Information horizon, Portfolio turnover and optimal alpha models".
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We are academic research group that works in the field of finance and more specifically wealth management. After successful experience in applying theoretical models in practical asset management we are currently dedicated to providing better research and education in our field. We have developed a successful model for transferring knowledge between research and education. The model consists of:
✅ developing research projects;
✅ testing the results in investment practice;
✅ using this experience in creating educational content.
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