Investment management is about focusing on the whole portfolio and not just the individual pieces. A great stock picker that cannot manage portfolio risk is eventually a poor stock picker. AI Investing develops a variety of tools that continually assess portfolio risk. This is a complex but essential task in an ever changing market with an ever-changing portfolio.

Modern Portfolio Theory, Post Modern Portfolio Theory and other approaches attempt to optimize portfolio positions based on the desired risk/return profile. Many aspects of portfolio theory make intuitive sense. Diversify your investments to reduce their correlation. Make sure an investment's expected return is commensurate with it's volatility. Continually reassess your entire portfolio based on the your desired level of risk/reward. These are simple objectives but the number of variables involved often requires some complex simulation.

Complex simulation is what we love here at AI Investing. We look at the big picture. A portfolio is a constantly changing entity and needs to be managed as a whole for maximum returns.