The Markowitz Model Analysis

The Markowitz model

The Markowitz model is the foundational process of evaluating an individual security based on its expected return (the mean) and its risk (the variance or standard deviation) applied in context of the Indian Equity space.

Modern Portfolio Theory

Applied the Modern Portfolio Theory to a single stock which helps investors understand the asset's risk-reward profile in isolation, enabling smarter investment decisions.

Market Coverage

The Indian equity space (NSE) has 2,671 listed companies. The top 500 companies claim 92% of the entire free float market capitalization, making them critical for comprehensive portfolio analysis and market insights.

Identifying The Efficient Frontier

Analyzing the top 500 companies helps identify the Efficient Frontier, enabling investors to construct optimally diversified portfolios. Our platform extracts daily pricing data and provides real-time statistics in an interactive visualization.

Portfolio Optimization

Disregarding the outlier points an Efficient Frontier can be drawn or imagined on the plot and the securities lying close to the line should be considered better options for portfolio construction.

Disclaimer

The Markowitz Model heavily depends on historical data, which may not reliably predict future market trends. Equity market investments are subject to high market risks, including the potential loss of principal, as security prices fluctuate based on economic and company-specific factors. Past performance does not guarantee future results. Investors should read all related documents carefully, consider their risk tolerance, and consult professional advisors.