AI-selected investment portfolios generate consistently higher returns than S&P and Russell indices across large, mid and small-cap stocks.
Market-cap–adapted AI-selected investment portfolios deliver significantly higher returns. Extensive performance analysis is conducted using more than 50 risk and return metrics, along with benchmarking against the S&P and Russell indices.
AI-selected investment portfolios
- Hybrid specialized AI engines, combining supervised and unsupervised machine learning models, generate buy–sell signals for each stock and more importantly, investment selection ranking for different investment horizons. For monthly to yearly holding horizons, strong/buy stocks are ranked in descending order of expected return, while strong/sell stocks are ranked in ascending order of expected return.
- AI-selected investment portfolios are then constructed for each market-capitalization class by the top 10, 20, or 30 ranked stocks within each buy or sell category. For example, for a monthly investment horizon, portfolios are constructed each month by selecting the top N AI-ranked strong/buy stocks within each market-cap category. Portfolio positions are refreshed monthly by replacing existing holdings with newly top-ranked stocks, thereby replicating a synthetic, AI-driven monthly investment strategy based on leading AI-selected stocks in each market-cap class.
AI portfolio performance analysis
The performance of the AI-driven investment portfolios by market capitalization segments are measured by 50+ risk and return metrics while being benchmarked against the corresponding S&P and Russell indices. The AI-selected portfolios consistently outperform their benchmark indices, thereby demonstrating the effectiveness of the AI stock selection models.
Portfolio optimization
- The AI investment portfolios discussed here are designed solely to evaluate the performance of AI buy–sell signals at the sector level. To ensure sufficient liquidity, only stocks with a minimum average daily trading volume of 45,000 shares are included. Each AI portfolio is constructed from a basket of the top 10, 20, 30, or 40 AI-selected stocks and employs an equal-weight (one-to-one) allocation across all constituent stocks.
- Sophisticated optimal portfolios can be constructed using a range of advanced stock-allocation optimization algorithms, including (semi) mean–variance optimization, drawdown minimization, and downside risk optimization based on Value at Risk (VaR) and Conditional Value at Risk (CVaR), tailored to a specified initial investment capital. These advanced portfolio optimization capabilities are addressed separately within our AI Portfolio solutions. Explore more
Mega-cap stock long monthly AI investment portfolio comparative performance analysis against S&P 500 and Russell 200 indices.
Mega-cap AI investment long portfolios are constructed by selecting the top 10, 20, 30, 40, and 50 AI-ranked strong/buy mega-cap stocks across all sectors. Portfolio positions are rebalanced monthly based on the latest AI rankings. The monthly returns of these AI-driven portfolios (AI Portfolio Return) are benchmarked against the mega-cap indices S&P 500 and Russell 200.
Large-cap stock long monthly AI investment portfolio comparative performance analysis against S&P 500 and Russell 1000 indices.
Large-cap long-only AI investment portfolios are constructed by selecting the top 10, 20, 30, 40, and 50 AI-ranked strong/buy large-cap stocks across all sectors. Portfolio positions are rebalanced monthly based on the latest AI rankings. The monthly returns of these AI-driven portfolios (AI Portfolio Return) are benchmarked against the large-cap indices S&P 500 and Russell 1000.
Mid-cap stock long monthly AI investment portfolio comparative performance analysis against S&P 400 and Russell Mid-cap indices.
Mid-cap AI investment long portfolios are constructed by selecting the top 10, 20, 30, 40, and 50 AI-ranked strong/buy mid-cap stocks across all sectors. Portfolio positions are rebalanced monthly based on the latest AI rankings. The monthly returns of these AI-driven portfolios (AI Portfolio Return) are benchmarked against the mid-cap indices S&P 500 and Russell Mid-cap.
Small-cap stock long monthly AI investment portfolio comparative performance analysis against S&P 600 and Russell 2000 indices.
Small-cap AI investment long portfolios are constructed by selecting the top 10, 20, 30, 40, and 50 AI-ranked strong/buy small-cap stocks across all sectors. Portfolio positions are rebalanced monthly based on the latest AI rankings. The monthly returns of these AI-driven portfolios (AI Portfolio Return) are benchmarked against the small-cap indices S&P 500 and Russell 2000.