Systems and methods for customizing a portfolio using visualization and control of factor exposure

Abstract

Systems and methods for customizing a portfolio using visualization and control of factor exposures are disclosed. Assets are selected for inclusion in factor portfolios from a universe of assets based on risk premia factor scores. The factor portfolios can be combined into blended portfolios having varying degrees of factor exposures using simple visual controls for adjusting relative proportions of the factor portfolios. Any one of the individual factor portfolios and the resulting blended portfolio can be evaluated by comparing its performance against a benchmark portfolio or across a number of regimes representing various market or economic conditions or factor-specific regimes.

What is claimed is: 
     
         1 . (canceled) 
     
     
         2 . A method for interactive portfolio visualization, the method comprising:
 storing information regarding a plurality of different predetermined asset groupings each associated with a different set of grouping factors;   generating a graphic user interface that includes a visualization of a blended portfolio corresponding to one or more of the asset groupings, the graphic user interface further includes one or more interactive controllers each corresponding to a different grouping factor;   receiving user input via at least one of the interactive controllers, wherein the user input indicates an adjustment to an identified grouping factor associated with the at least one interactive controller;   filtering the asset groupings stored in memory based on the adjusted grouping factor;   generating an updated blended portfolio as a weighted combination of the filtered asset groupings, wherein the combination is weighted based on relative proportions corresponding to the adjustment indicated by the received user input; and   updating the graphic user interface to include a visualization of the updated blended portfolio.   
     
     
         3 . The method of  claim 2 , wherein the set of grouping factors include at least one of geographic region, industry, size, quality, volatility, risk tolerance, stability, momentum, and value risk premia factors. 
     
     
         4 . The method of  claim 2 , wherein the visualization includes at least one of line graphs, pie charts, and bar graphs. 
     
     
         5 . The method of  claim 2 , further comprising dynamically updating the visualization of the blended portfolio based on updated asset information from one or more online sources. 
     
     
         6 . The method of  claim 2 , wherein the graphic user interface further includes an analytical tool selectable to compare metrics of the blended portfolio with metrics of a benchmark portfolio, wherein a visualization of the benchmark portfolio is overlaid on the visualization of the blended portfolio. 
     
     
         7 . The method of  claim 6 , wherein the graphic user interface further includes a menu that includes one or more benchmark portfolios, and further comprising receiving user input selecting the benchmark portfolio for comparison. 
     
     
         8 . The method of  claim 2 , wherein a weight is assigned to each asset in an identified one of the asset groupings, and wherein generating the updated blended portfolio includes applying different weights to assets in the filtered asset groupings. 
     
     
         9 . The method of  claim 2 , wherein the interactive controllers are adjustable to increase and decrease the corresponding grouping factor, the interactive controllers including at least one of sliders, dials, and buttons. 
     
     
         10 . The method of  claim 2 , wherein the graphic user interface further includes a graphical form illustrating relative contributions of the asset groupings of the blended portfolio. 
     
     
         11 . The method of  claim 2 , wherein the graphic user interface further includes one or more buttons selectable to apply a predetermined proportion of the asset groupings. 
     
     
         12 . A system for interactive portfolio visualization, the system comprising:
 database memory that stores information regarding a plurality of different predetermined asset groupings each associated with a different set of grouping factors; and   a processor that executes an application stored in memory, wherein the processor executes the application to generate a graphic user interface that includes a visualization of a blended portfolio corresponding to one or more of the asset groupings, the graphic user interface further includes one or more interactive controllers each corresponding to a different grouping factor; and   a communication interface that communicates with a user device over a communication network, wherein the communication interface receives user input via at least one of the interactive controllers, wherein the user input indicates an adjustment to an identified grouping factor associated with the at least one interactive controller;   wherein the processor further executes the application to:
 filter the asset groupings stored in memory based on the adjusted grouping factor; 
 generate an updated blended portfolio as a weighted combination of the filtered asset groupings, wherein the combination is weighted based on relative proportions corresponding to the adjustment indicated by the received user input; and 
 update the graphic user interface to include a visualization of the updated blended portfolio. 
   
     
     
         13 . The system of  claim 12 , wherein the set of grouping factors include at least one of geographic region, industry, size, quality, volatility, risk tolerance, stability, momentum, and value risk premia factors. 
     
     
         14 . The system of  claim 12 , wherein the visualization includes at least one of line graphs, pie charts, and bar graphs. 
     
     
         15 . The system of  claim 12 , wherein the processor further executes the application to dynamically update the visualization of the blended portfolio based on updated asset information from one or more online sources. 
     
     
         16 . The system of  claim 12 , wherein the graphic user interface further includes an analytical tool selectable to compare metrics of the blended portfolio with metrics of a benchmark portfolio, wherein a visualization of the benchmark portfolio is overlaid on the visualization of the blended portfolio. 
     
     
         17 . The system of  claim 16 , wherein the graphic user interface further includes a menu that includes one or more benchmark portfolios, and wherein the communication interface further receives user input selecting the benchmark portfolio for comparison. 
     
     
         18 . The system of  claim 12 , wherein a weight is assigned to each asset in an identified one of the asset groupings, and wherein the processor generates the updated blended portfolio by applying different weights to assets in the filtered asset groupings. 
     
     
         19 . The system of  claim 12 , wherein the interactive controllers are adjustable to increase and decrease the corresponding grouping factor, the interactive controllers including at least one of sliders, dials, and buttons. 
     
     
         20 . The system of  claim 12 , wherein the graphic user interface further includes a graphical form illustrating relative contributions of the asset groupings of the blended portfolio. 
     
     
         21 . The system of  claim 12 , wherein the graphic user interface further includes one or more buttons selectable to apply a predetermined proportion of the asset groupings. 
     
     
         22 . A non-transitory, computer-readable storage medium, having embodied thereon a program executable by a processor to perform a method for interactive portfolio visualization, the method comprising:
 storing information regarding a plurality of different predetermined asset groupings each associated with a different set of grouping factors;   generating a graphic user interface that includes a visualization of a blended portfolio corresponding to one or more of the asset groupings, the graphic user interface further includes one or more interactive controllers each corresponding to a different grouping factor;   receiving user input via at least one of the interactive controllers, wherein the user input indicates an adjustment to an identified grouping factor associated with the at least one interactive controller;   filtering the asset groupings stored in memory based on the adjusted grouping factor;   generating an updated blended portfolio as a weighted combination of the filtered asset groupings, wherein the combination is weighted based on relative proportions corresponding to the adjustment indicated by the received user input; and   updating the graphic user interface to include a visualization of the updated blended portfolio.