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Use JMP ® as a FinTech Robo: Portfolio Visualization and Automatic Rebalance Advisor

Hui Di, JMP Senior Development Tester, SAS

Revolution? In recent years, financial service giants such as BlackRock and other firms like Charles Schwab have begun using algorithms to automatically adjust portfolios in accordance with a customer's risk preference. The algorithms keep people’s emotions in check. However, today’s clients may have multiple accounts due to job changes, funds choices or better tools. Rebalancing among different accounts becomes a challenge. First, I’ll use historical data from Aswath Damodaran, an NYU professor, and simulation in JMP to demonstrate why rebalancing is necessary to protect your portfolio. Second, I’ll show you how to import your account into JMP, and visualize asset allocation for all accounts. We will drill down into each single fund for its asset allocation, and then gather all assets information using virtual join to make a master data table. With the master data table, we can perform portfolio visualization to understand actual asset allocations. I will demo how to use algorithms to advise a user on portfolio adjustment based upon risk tolerance. Finally, I will show how to publish a summary report on portfolio visualization and rebalance advice by exporting to HTML5 for mobile access and drill-down analysis.

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