Portfolio Optimization Across Risk, Returns, and Climate

Bob Meindl, MathWorks

Learn how to leverage portfolio optimization models in conjunction with climate data while balancing the demands of transparency, scalability, and model risk management. Climate data and optimization can impact the bottom line of organizations by tilting portfolios in a targeted way. Building advanced analytics and machine learning models on top of these factor repositories of climate data can improve business decisions. Some tasks that stand to gain the most from such improvements include risk mitigation, trading opportunity identification, customer goal-based investing, and forecasting risk across complex multibillion-dollar instrument portfolios. However, implementation at scale and with compliance is daunting to most financial institutions at all levels of Assets Under Management (AUM).