US 2018/0293656 A1 · ALGORITHMIC SYSTEM FOR DYNAMIC CONDITIONAL ASSET PRICING ANALYSIS AND FINANCIAL INTELLIGENCE TECHNOLOGY PLATFORM AUTOMATION

Abstract

The current invention pertains to the novel, nonobvious, and applicable design and development of an algorithmic system for dynamic conditional asset pricing output and financial intelligence technology platform automation. Core technicality entails the consistent estimation of dynamic conditional alphas after one controls for myriad fundamental characteristics such as market risk, size, value, momentum, asset investment growth, and operating profitability through recursive multivariate filtration. Conditional specification test evidence supports the use of the dynamic conditional multifactor asset pricing model against the static alternatives. The fintech platform allows users to interact with one another by transmitting valuable units of financial intelligence and information in an online social network. The information units include dynamic conditional alpha rank order, key financial ratio summary, quadripartite visualization of financial data, and financial statement analysis. The fintech platform automates social network functions for better interactive engagement through minimum viable cloud computing facilities for web mobile app design.

Claims16

Dependent claims

A dynamic conditional asset pricing system for the effective and accurate return prediction of a risky asset, wherein each risky asset is a stock, bond, currency, commodity, or a portfolio of risky assets, comprising:

a database for collecting financial price and return data and financial statement data of the risky asset;
a Sharpe ratio generation module for yielding the risky-asset-specific ratio of average excess return to standard deviation of excess returns on the risky asset;
and
a risky asset return prediction module for effective and accurate risky asset return prediction, dynamic conditional alpha rank order, and additional financial intelligence and information including major financial ratios and financial statements comprising balance sheets, income statements, and cash flow statements as well as mean excess returns and return volatilities.

1 more element

An algorithmic financial intelligence technology (fintech) platform, which can be hosted in at least one internal cloud server with cloud computing connections to at least one external cloud server, comprising:

a dynamic conditional asset pricing system with the core functionalities of both static and dynamic conditional estimation of alpha and beta factor premiums, recursive multivariate filtration, and conditional specification test;
a fintech output module for exporting financial intelligence and visualization including core ratio summary, major financial statement analysis, quadripartite visualization of asset price and return data both over time and in the cross-section, dynamic conditional alpha rank order, key taxonomy of mean excess returns and return volatilities;
and
an internal social network interface that connects both the dynamic conditional asset pricing system and the fintech output module within at least one internal server to multiple external social networks;
wherein multiple users interact with one another by transmitting valuable units of financial intelligence, quantitative and qualitative information, text, or other visual content including status updates, posts, comments, favorites, likes, unlikes, dislikes, shares, tags, tracks, saves, invites, notes, messages, traffic statistics, and so forth.

2 more elements

Dependencies are inferred from the claim text.

Algorithmic system for dynamic conditional asset pricing analysis and financial intelligence technology platform automation

Life of this patent

Algorithmic system for dynamic conditional asset pricing analysis and financial intelligence technology platform automation

Life of this patent

Abstract

Claims16