Financial Forecasting
Forecasting has always been essential to our society as well as magical. In today’s financial industry, economists often use the past to try to predict the future. Knowing which approach to use and the consequences of such a choice is crucial in today’s environment.
SFI Professor Amit Goyal, from the University of Lausanne, explains the key difference between a cross-sectional approach and a time-series approach, how to make the two comparable, and why the cross-sectional one helps obtain better financial returns. Umberto Boccato and Mark Temnikov, from Mirabaud Asset Management, highlight the diversification benefits at stake and why investors should rely upon a mix of approach, styles, and asset classes when constructing their portfolios.
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