Automated market makers (AMMs) are typically interpreted and evaluated as decentralized exchanges. Herein, we take the perspective envisioned by Balancer that an AMM can also be viewed as a portfolio technology that programmatically enforces an economic mandate. In particular, we follow the geometric mean market maker (G3M) invariant employed by that protocol in order to enforce a target-weighted portfolio. We introduce a multi-asset fee structure to the G3M under which competitive arbitrage implements a band-rebalancing strategy with mis-weighting bounded ex ante, allowing compliance with the mandate to be verified directly from the pool's observable holdings. We then compare simulated G3M portfolios against the realized performance of VBIAX, EQL, and EDOW on annualized returns and tracking error against the portfolio mandate. Across these historical case studies, and using arbitrage-only order flow, the G3M is found to outperform the incumbent funds in both metrics for certain fee ranges.
The rapid growth of retail investors in Indonesia, from 2.48 million in 2019 to over 20 million by 2025, underscores an urgent need for empirically grounded portfolio optimization frameworks adoptable into practical tools such as robo-advisory systems. This study applies the Markowitz Mean-Variance model to construct a...
Irfan Andi Pramudya, Intan Shaferi· The International Conference...· 0 citations
Shariah-compliant equity screening provides a transparent setting in which institutional rules determine who may own a stock. A binary label identifies current eligibility but not whether the feasible investor base is fragmented across standards or close to changing. We define this instability as classification uncerta...
Abdulrahman Qadi, A. Sharma, Francesca Medda· 0 citations
Classical portfolio theory frequently assumes frictionless markets, but in reality, transaction costs, like fees and market impact, can erode returns and cause excessive turnover. Incorporating these costs transforms rebalancing from a mechanical rule into a strategic decision: determining exactly when and how much to...
GAUGE is introduced, a benchmark for evaluating agent-built valuation models against observed analyst practice rather than a single point answer, and current agents are substantially stronger at model construction than valuation judgment.
This paper proposes an investment strategy through resource allocation into Kalshi Crypto Event Contracts in order to effectively hedge exposure to spot asset volatility. Using Bitcoin as a proof of concept, we treat corresponding Kalshi markets on the asset's future price as option contracts, and through construction...
In India, the retail investment market has changed fast in the last decade due to mobile-first applications, prevalent digital payment systems, and the consistent growth of investment advisory services registered by SEBI. Retail penetration of capital markets is reflected in the fact that the number of demat accounts h...
V. Verma, Akshay Raj, Deeban Chakravarthy V· 2026 7th International Confe...· 0 citations
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