System for facilitating selection of investments

• US 7,584,132 B2
• Filed: 02/05/2002
• Issued: 09/01/2009
• Est. Priority Date: 02/06/2001
• Status: Active Grant

• Current Assignee: Strategic Capital Network LLC
• Original Assignee: Strategic Capital Network LLC
• Inventors: Hunter, Brian A.
• Primary Examiner(s): Campen; Kelly
• Application Number:
  US10/296,414
• Publication Number:
  US 20030126058A1
• Time in Patent Office: 2,765 Days
• Field of Search: 705/36.R, 705/40, 705/35, 705/37, 705/7, 705/1, 705/10, 705/2, 273/256
• US Class Current: 705/36.00R
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A tool implemented in a computer system for analyzing the performance of a set of investment opportunities (FIG. 2). The tool operates in a screening mode whose displayed results permit the user to compare performance of the investment opportunities over time (211) and in a fitting mode whose displayed results permit the user to compare performance of pairs of the investment opportunities with regard to diversity of risk (213). In the screening mode, the investments are compared with regard to a number of different metrics. Included in the metrics is the Hunter Ratio, a pseudo-reliability metric. In the fitting mode, the correlation coefficient and Blend Anxiety of the returns of pairs of investment opportunities are measured. The Blend Anxiety is computed using the covariance of the returns. A graphical user interface for the tool permits the user to select investment opportunities, asset classes, benchmarks, kinds of calculations, and periods of time over which the calculations are to be performed (201). The results of both the screening mode and the fitting mode are displayed to the user in the form of spreadsheets.

Claims

1. Apparatus for analyzing the performance of a set of investment opportunities,

the apparatus comprising:

an analyzer that analyzes investment performance information covering a period of time for each investment opportunity of the set; and

a graphical user interface that a user of the apparatus uses to control operation of the analyzer and display results of the analysis,

the analyzer analyzing the investment performance information in a screening mode whose results, as displayed in the graphical user interface, permit comparison of the performance of the investment opportunities by the user and further analyzing the investment performance information in a fitting mode whose results, as displayed in the graphical user interface, permit comparison of performance of pairs of the investment opportunities by the user with regard to diversity of risk.

2. The apparatus set forth in claim 1 wherein:

the user uses the graphical user interface to select a subset of the set of potential investment opportunities; and

the analyzer analyzes the investment performance information for the selected subset in the screening and/or fitting mode.

3. The apparatus set forth in claim 2 wherein:

the investment performance information includes a plurality of asset classes, each of the investment opportunities belonging to an asset class; and

the user further uses the graphical user interface to select the subset such that investment opportunities in the subset belong to a given asset class.

4. The apparatus set forth in claim 1 wherein:

the analyzer performs operations belonging to a set thereof on the investment performance information; and

the operations include computing a Hunter Ratio for an investment opportunity.

5. The apparatus set forth in claim 4 wherein:

the Hunter Ratio is computed in the screening mode; and

the operations include, in the fitting mode, using the investment performance information in computing a blend anxiety of the investment opportunities making up the pair.

6. The apparatus set forth in claim 1 wherein:

the analyzer performs operations belonging to a set thereof on the investment performance information in screening mode; and

the graphical user interface displays the results from the screening mode as a spreadsheet that the user manipulates, the spreadsheet having a row for each of the investment opportunities and a column for each of the operations.

7. The apparatus set forth in claim 1 wherein:

the analyzer performs operations belonging to a set thereof on the investment performance information; and

the user uses the graphical user interface to select a subset of the set of operations to be performed by the analyzer in the screening mode.

8. The apparatus set forth in claim 7 wherein:

the user further uses the graphical user interface to select for a given operation in the subset a selected period of time within the covered period of time, the analyzer performing the given operation on the investment performance information for the selected period of time.

9. The apparatus set forth in claim 1 wherein:

the user uses the graphical user interface to select a period of time within the covered period of time; and

the analyzer analyzes the investment performance information over the selected period of time in the screening mode and/or the fitting mode.

10. The apparatus set forth in claim 1 wherein:

the graphical user interface displays the results as a spreadsheet that the user manipulates.

11. The apparatus set forth in claim 1 wherein:

the user uses the graphical user interface in the fitting mode to select a first subset and a second subset of the set of investment opportunities; and

each pair is made up of an investment opportunity from the first subset and an investment opportunity from the second subset.

12. The apparatus set forth in claim 11 wherein:

in the fitting mode, the results are displayed in a table having a row for each of the investment opportunities belonging to the first set and a column for each of the investment opportunities belonging to the second set; and

the results for each pair of the investment opportunities appear at the intersection of the row for the member of the pair from the first subset and the column for the member of the pair from the second subset.

13. The apparatus set forth in claim 12 wherein:

the analyzer computes for each pair a blend anxiety of the investment opportunities making up the pair using the investment performance information; and

the blend anxiety appears at the intersection for the pair.

14. The apparatus set forth in claim 13 wherein:

the blend anxiety is computed by computing the covariance of the investment performances of the investment opportunities making up the pair.

15. The apparatus set forth in claim 13 wherein:

the analyzer computes for each pair a correlation coefficient of the investment opportunities making up the pair using the investment performance information; and

the correlation coefficient appears at the intersection for the pair.

16. The apparatus set forth in claim 1 wherein:

in the fitting mode, the analyzer computes for each pair a blend anxiety of the investment opportunities making up the pair using the investment performance information; and

the displayed results show the pair and the blend anxiety.

17. The apparatus set forth in claim 16 wherein:

the blend anxiety is computed by computing the covariance of the investment performances of the investment opportunities making up the pair.

18. The apparatus set forth in claim 16 wherein:

in fitting mode, the analyzer further computes for each pair a correlation coefficient of the investment opportunities making up the pair using the investment performance information; and

the displayed results further show the correlation coefficient.