SWR algorithm formula: SWR = (portfolio initial value x SWR initial value)\/Portfolio initial value Where SWR initial value is usually 3-4%, portfolio initial value is the target value of the portfolio, and portfolio initial value is the current value of the portfolio.
Fisher process algorithm formula: F(t 1) = F(t) (μ-σ ^2\/2)? t σ√(? t)Z where F(t) is the value of the portfolio at time t, μ is the expected return, σ is the standard deviation,? t is the time interval and Z is the standard normally distributed random variable.
These algorithmic formulas can be used to calculate the specific value of the shock protection, but the specific algorithm chosen depends on the needs and preferences of the individual or organization.
Hedging algorithm is a method used to assess the risk of financial markets. The specific algorithm formula includes the following steps:
First, the historical return series of the asset is calculated.
Then, the mean and standard deviation of the asset are calculated.
Next, the value at risk of the asset is calculated based on the mean and standard deviation of the asset.
Finally, according to the value at risk of the assets, calculate the asset hedge. The higher the hedge value, the less the risk of the asset, the more stable investors can hold the asset. Shock protection algorithms can help investors assess the risk level of different assets and make more informed investment decisions.