Description:FIELD OF THE INVENTION
The present invention relates to financial technology and automated investment analysis. More specifically, it pertains to systems and methods for evaluating, comparing, and forecasting returns of equity-based investment portfolios. The invention combines real-time and historical data with adaptive algorithms to provide comparative insights between share-based and stock-based portfolios, thereby assisting investors in making informed, data-driven financial decisions.
BACKGROUND OF THE INVENTION
The proposed invention addresses the critical challenge of effectively evaluating and comparing the performance of share-based and stock-based portfolios in a consistent, automated, and data-driven manner. Traditional methods for assessing portfolio returns often rely on manual analysis or generic financial tools that may not account for real-time market fluctuations, investor preferences, or the nuanced differences between share-based (individual equity investments) and stock-based (diversified or structured equity instruments such as ETFs or mutual funds) portfolios. This invention solves the problem of inefficiency, subjectivity, and lack of scalability in portfolio analysis by offering an automated platform that standardizes the evaluation process, integrates historical and real-time market data, and computes relative returns using advanced algorithms. It serves the purpose of empowering investors, financial analysts, and portfolio managers with precise, comparative insights that support informed decision-making, optimize investment strategies, and enhance risk-adjusted returns across varying market conditions.
US12189709B2: A stratified or segmented composite data structure can be formed by selecting a group of data entities, stratifying or segmenting them according to attributes, and assigning relative weights to the components based on their stratified or segmented positions. The attributes are selected from a universe of possible values. Further positive and negative biases can be applied at any arbitrary point or position, including to individual data entities, groups of arbitrarily selected data entities, or arbitrary positions.
US08751357: Embodiments of the invention are directed to a system, method, or computer program product for evaluating risk adjusted performance of an investment portfolio. This invention may be applied to any asset which has a value. The invention evaluates risk adjusted performance of an investment portfolio by first determining at least one positive utility concept and at least one negative utility concept describing an asset. Then, the invention normalizes the at least one negative utility concept to an equivalent negative utility concept describing or deriving from a group of assets. Finally, the invention may relate at least one positive utility concept and at least one normalized negative utility concept to determine a performance measure. In this way, the invention normalized negative asset returns such that better investor utility ratings are not falsely provided.
Conventional portfolio evaluation methods rely heavily on manual analysis or generic financial tools that fail to capture the differences between share-based investments (such as individual equity holdings) and stock-based investments (such as mutual funds, ETFs, or index funds). These traditional approaches lack scalability, are often subjective, and do not incorporate real-time fluctuations or user-defined risk preferences. As a result, investors face challenges in understanding relative portfolio performance, adjusting strategies dynamically, and optimizing returns under varying market conditions. The present invention addresses these issues by offering an automated, intelligent platform capable of side-by-side comparative analysis of portfolios, integration of multiple market data sources, incorporation of adaptive risk parameters, and delivery of personalized investment insights.
SUMMARY OF THE INVENTION
This summary is provided to introduce a selection of concepts, in a simplified format, that are further described in the detailed description of the invention.
This summary is neither intended to identify key or essential inventive concepts of the invention and nor is it intended for determining the scope of the invention.
The invention provides an automated platform that evaluates and compares the relative returns of share-based and stock-based portfolios using a data-driven approach. The system integrates modules for data acquisition, preprocessing, risk analysis, trend evaluation, return forecasting, and comparative visualization. By leveraging both historical and real-time market data, the platform identifies performance differences, volatility, and sectoral trends.
A central analysis engine incorporates adaptive algorithms that factor in user-defined preferences such as risk appetite, time horizon, and sectoral exposure. The system processes inputs for both share-based and stock-based investments in parallel, generating comparative reports that highlight differences in returns, risks, and growth potential.
The invention also provides an interactive dashboard with filters, customization tools, and visual analytics. This allows investors and analysts to explore scenarios, simulate outcomes, and respond quickly to market changes. Recommendations are generated based on comparative analysis, enabling optimal decision-making.
The novelty lies in integrating comparative evaluation of different portfolio types within a unified automated platform, supporting real-time, side-by-side insights rather than isolated asset tracking. This results in more precise, efficient, and personalized investment management.
To further clarify advantages and features of the present invention, a more particular description of the invention will be rendered by reference to specific embodiments thereof, which is illustrated in the appended drawings. It is appreciated that these drawings depict only typical embodiments of the invention and are therefore not to be considered limiting of its scope. The invention will be described and explained with additional specificity and detail with the accompanying drawings.
The Automated Platform for Evaluating Relative Returns of Share-Based and Stock-Based Portfolios is designed to help make it easier and better for people to compare investments of different types of equity instruments. By using current market information, old records and user adjustments, this system automatically provides the difference in returns between several portfolios made up of individual stock and those made from broader stock index and ETF groups. With the help of advanced analysis, the system reveals what’s happening with trends, volatility and returns to investors, helping them make their decisions. Because the dashboards are easy to use and filters can be set up as you like, the app helps all kinds of investors manage their investments with comfort and understanding.
BRIEF DESCRIPTION OF THE DRAWINGS
The illustrated embodiments of the subject matter will be understood by reference to the drawings, wherein like parts are designated by like numerals throughout. The following description is intended only by way of example, and simply illustrates certain selected embodiments of devices, systems, and methods that are consistent with the subject matter as claimed herein, wherein:
FIGURE 1: SYSTEM ARCHITECTURE
The figures depict embodiments of the present subject matter for the purposes of illustration only. A person skilled in the art will easily recognize from the following description that alternative embodiments of the structures and methods illustrated herein may be employed without departing from the principles of the disclosure described herein.
DETAILED DESCRIPTION OF THE INVENTION
The detailed description of various exemplary embodiments of the disclosure is described herein with reference to the accompanying drawings. It should be noted that the embodiments are described herein in such details as to clearly communicate the disclosure. However, the amount of details provided herein is not intended to limit the anticipated variations of embodiments; on the contrary, the intention is to cover all modifications, equivalents, and alternatives falling within the scope of the present disclosure as defined by the appended claims.
It is also to be understood that various arrangements may be devised that, although not explicitly described or shown herein, embody the principles of the present disclosure. Moreover, all statements herein reciting principles, aspects, and embodiments of the present disclosure, as well as specific examples, are intended to encompass equivalents thereof.
The terminology used herein is for the purpose of describing particular embodiments only and is not intended to be limiting of example embodiments. As used herein, the singular forms “a",” “an” and “the” are intended to include the plural forms as well, unless the context clearly indicates otherwise. It will be further understood that the terms “comprises,” “comprising,” “includes” and/or “including,” when used herein, specify the presence of stated features, integers, steps, operations, elements and/or components, but do not preclude the presence or addition of one or more other features, integers, steps, operations, elements, components and/or groups thereof.
It should also be noted that in some alternative implementations, the functions/acts noted may occur out of the order noted in the figures. For example, two figures shown in succession may, in fact, be executed concurrently or may sometimes be executed in the reverse order, depending upon the functionality/acts involved.
In addition, the descriptions of "first", "second", “third”, and the like in the present invention are used for the purpose of description only, and are not to be construed as indicating or implying their relative importance or implicitly indicating the number of technical features indicated. Thus, features defining "first" and "second" may include at least one of the features, either explicitly or implicitly.
Unless otherwise defined, all terms (including technical and scientific terms) used herein have the same meaning as commonly understood by one of ordinary skill in the art to which example embodiments belong. It will be further understood that terms, e.g., those defined in commonly used dictionaries, should be interpreted as having a meaning that is consistent with their meaning in the context of the relevant art and will not be interpreted in an idealized or overly formal sense unless expressly so defined herein.
The Automated Platform for Evaluating Relative Returns of Share-Based and Stock-Based Portfolios is designed to help make it easier and better for people to compare investments of different types of equity instruments. By using current market information, old records and user adjustments, this system automatically provides the difference in returns between several portfolios made up of individual stock and those made from broader stock index and ETF groups. With the help of advanced analysis, the system reveals what’s happening with trends, volatility and returns to investors, helping them make their decisions. Because the dashboards are easy to use and filters can be set up as you like, the app helps all kinds of investors manage their investments with comfort and understanding.
The diagram illustrates a process flow for an investment analysis system that compares stock and share investments. The process begins with a "Start" point, then prompts the user to "Select investment type," offering a choice between "Stock investment" and "Share investment". Regardless of the selection, an AI analyzes relevant data – trends for stock investment and company performance for share investment. Subsequently, a risk assessment and return forecast are generated for each investment type. These assessments are then compared with the user's risk profile. Based on this comparison, the AI suggests an optimal investment plan for both stock and share investments. The system then presents a "Comparison Report," followed by a "Recommendation Summary". Finally, the user has the option to "Download Report/Visual insights" before the process concludes with an "End" point.
The novelty of the Automated Platform for Evaluating Relative Returns of Share-Based and Stock-Based Portfolios lies in its real-time, side-by-side analysis of individual stocks and index-based investments using an adaptive engine that integrates user-defined risk, market dynamics, and sectoral factors for personalized portfolio insights.
The invention provides an automated platform for comparative analysis of share-based and stock-based portfolios. The system consists of several integrated modules working in real-time.
The data acquisition module collects market data from multiple sources, including stock exchanges, financial reports, and historical datasets. Both share-level and stock-index-level information is gathered.
The preprocessing module ensures normalization, cleaning, and formatting of the raw data. Outliers, missing entries, and inconsistencies are addressed to maintain data integrity.
The risk analysis module evaluates volatility, drawdowns, and other key risk indicators for each portfolio. It compares these against user-defined risk preferences, allowing personalized insights.
The trend analysis module uses statistical and AI-based techniques to identify market momentum, sectoral shifts, and emerging patterns across individual equities and diversified stock instruments.
The return forecasting module applies adaptive algorithms to project expected returns for both portfolio types under multiple scenarios. Forecasts incorporate sectoral weightage, market volatility, and investor-defined constraints.
The comparative analysis engine integrates the outputs from the risk, trend, and return modules. It generates side-by-side comparisons of share-based and stock-based portfolios, presenting relative performance indicators such as average return, risk-adjusted return, and Sharpe-like indices.
The recommendation engine evaluates comparative results and proposes optimal allocation strategies between individual shares and broader stock-based investments. This enables users to diversify or re-balance their portfolios in line with both performance trends and personal risk appetite. The visualization and reporting module provides interactive dashboards that allow filtering by sector, time horizon, or performance metric. Graphical reports, tables, and heat maps are generated to illustrate portfolio comparisons clearly.
A user feedback mechanism enables the system to refine future recommendations by learning from investor preferences and behavior. The platform also supports simulation of what-if scenarios, allowing users to evaluate potential portfolio performance under varying market conditions. The invention is scalable to large datasets, supports multi-user access, and can integrate with brokerage APIs for seamless updates.
In one embodiment, the system is used by retail investors seeking simplified comparative analysis between individual equity holdings and mutual fund investments.
In another embodiment, financial advisors deploy the platform to generate client-specific recommendations that align with defined financial goals.
In yet another embodiment, institutional portfolio managers utilize the system for large-scale risk-adjusted comparisons of sectoral investments. This comprehensive architecture ensures consistency, adaptability, and precision in comparative investment analysis, addressing the gaps left by existing financial tools.
Best Method of Working
The best method of working involves deploying the automated platform as a cloud-based or server-based application accessible through a web or mobile interface. Market data is continuously fed into the acquisition module, processed for normalization, and analyzed in real time. Investors log in, define their preferences such as risk tolerance and time horizon, and upload their portfolio details. The platform computes relative performance metrics, forecasts outcomes, and generates comparative reports. The user dashboard presents side-by-side analysis, allowing investors to visualize and compare share-based versus stock-based portfolios instantly. Recommendations are presented in both textual and graphical formats, enabling informed decisions. This implementation ensures scalability, accuracy, and user-friendliness.
ADVANTAGES OF THE INVENTION
 Created ways to assess investment growth faster with more exactness, reduced the amount of manual effort required, improved user understanding of finances and gave them more control.
 Because of the detailed comparisons and personal support the platform offers, investors can make the best decisions, respond to changes quickly and see better results in their investments.

, Claims:1. A system for automated evaluation of relative returns of share-based and stock-based portfolios, comprising:
• a data acquisition module configured to collect real-time and historical financial data;
• a preprocessing module configured to normalize and clean portfolio and market data;
• a risk analysis module configured to compute volatility and investor-specific risk profiles;
• a trend analysis module configured to detect market momentum and sectoral changes;
• a return forecasting module configured to project expected returns under varying scenarios;
• a comparative analysis engine configured to generate side-by-side evaluation of share-based and stock-based portfolios;
• a recommendation engine configured to suggest optimal portfolio allocation strategies; and
• a visualization interface configured to provide interactive dashboards, reports, and graphical insights.
2. The system as claimed in claim 1, wherein the data acquisition module integrates both stock-level and index-level information.
3. The system as claimed in claim 1, wherein the risk analysis module compares computed indicators against user-defined risk preferences.
4. The system as claimed in claim 1, wherein the trend analysis module employs AI-based techniques for identifying emerging patterns.
5. The system as claimed in claim 1, wherein the recommendation engine adapts outputs based on user feedback.
6. A method for automated evaluation of relative returns of share-based and stock-based portfolios, comprising the steps of:
• collecting real-time and historical market data for shares and stock indices;
• preprocessing the collected data by normalization and cleaning;
• analyzing risk by computing volatility and comparing with user-defined parameters;
• detecting trends across equity instruments and stock-based investments;
• forecasting returns under varying conditions using adaptive algorithms;
• performing comparative analysis to evaluate side-by-side performance of share-based and stock-based portfolios;
• generating recommendations for optimal portfolio allocation; and
• presenting results through an interactive visualization interface.
7. The method as claimed in claim 6, wherein the risk analysis includes calculation of drawdowns, volatility indices, and risk-adjusted returns.
8. The method as claimed in claim 6, wherein return forecasting incorporates sectoral exposure and investor-defined constraints.
9. The method as claimed in claim 6, wherein comparative analysis outputs relative growth, volatility, and risk-adjusted indices.
10. The method as claimed in claim 6, wherein results are provided as downloadable reports and visual insights for decision-making.