Complexity Portfolio Theory

We have been getting a lot of questions on the relationship of Predicitve Risk Analytics (PRA) and complexity management to portfolio assessment. Specifically, the question is, "how can we apply PRA for complexity management to stock portfolio assessment. Here's an answer for you. Our software is being applied Assetdyne which can be found at 

Assetdyne LLC is a privately held company founded in 2013. Assetdyne has developed the Complexity Portfolio Theory (CPT) and offers an exclusive and sophisticated system which measures the complexity and resilience of stocks and stock portfolios and which introduces the concept of complexity to portfolio theory and design.

While conventional portfolio design often follows the Modern Portfolio Theory (MPT), which identifies optimal portfolios via minimization of the total portfolio variance, the technique developed by Assetdyne designs portfolios based on the minimization of portfolio complexity. The approach is based on the fact that excessively complex systems are inherently fragile.


Assetdyne's system is designed specifically for a turbulent economy, in which resilience represents a fundamental characteristic of a healthy business. In order to design resilient portfolios it is necessary to embrace the concepts and measures of complexity. The system developed by Assetdyne allows users to compute the Resilience Rating and Complexity of single stocks, stock portfolios, derivatives and other financial products.

Let us know if you'd like to explore CPT.