Comparison of Two State-of-art Asset Allocations in Context of Indicators

Abstract

With the continuing development of the financial investment market and the support of the government, more and more resources and technology are focusing on the investment enterprise. Investors’ enthusiasm has surged, but they lack the professional information support for portfolio methods. This paper will investigate the two different well-known types of asset allocation portfolio namely alpha strategy and beta strategy for further interpretation and analysis. For different combinations, this study defined the same quantitative index, for income return ratio, maximum retreat, sharp rate of the three aspects of quantitative indicators compared to produce the better solution. According to the analysis, the study find that alpha strategy will get more positive return but need to bear more risk. On the opposite, the beta strategy presents a trend of stable with low return and low risk. These results shed light on guiding further exploration of selecting the investment strategies into the real life and the more scientific way to get profit.