Portfolio and investment risk analysis on global grids

Abstract

The financial services industry today produces and consumes huge amounts of data and the processes involved in analysing these data have large and complex resource requirements. The need to analyse the data using such processes and get meaningful results in time, can be met only up to a certain extent by current computer systems. Most service providers attempt to increase efficiency and quality of their service offerings by stacking up more hardware and employing better algorithms for data processing. However, there is a limit to the gains achieved by using such an approach. One viable alternative would be to use emerging technologies such as the Grid. Grid computing and its application to various domains have been actively studied by many groups for more than a decade now. In this paper we explore the use of the Grid in the financial services domain; an area which we believe has not been adequately looked into.

The Applications and Trends of High Performance Computing in Finance

“…Such as: high cost of the computational resources and difficult programming environment involves the efficiency of the message passing. In order to overcome these drawbacks, Rafael Moreno-Vozemediano [13] explored the application of Grid technologies within financial services domain by executing a portfolio optimization application that estimates the Value-at-Risk for a given portfolio through Monte Carlo simulation. This technology is based on the efficient sharing and cooperation of heterogeneous, geographically distributed resources such as CPUs, clusters, multiprocessors, storage devices, databases and scientific instruments.…”

Incidence of Short Term Private Capital Outflow: Empirical Analysis in Nigeria

“…According to Reilly and Brown (2012) investors in pursuance of optimal investment portfolio unavoidably become risk-averse selecting assets with the lowest risk in the list of options open to them. Portfolio investment is hinged on the framework of risk return trade-off, as higher return on investment is accompanied by higher level of risk (Moreno-Vozmediano et al, 2007). There are the factors driving domestic capital out whereby the content and direction of present and future macroeconomic policies are uncertain and/or volatile, domestic investors will be unsure about the effect of these macroeconomic volatilities or uncertainties on the value of their assets locally.…”