FranklinX
  • Franklin X: The BlackRock On-Chain
    • The Driving Purpose
  • Crypto AI Agent: Franklin X
    • Key Objectives
    • Why Crypto AI Agent Franklin X?
    • What Franklin X Offers
  • Getting Started
    • Step 1: Accessing the Platform
    • Step 2: Exploring the Features
  • Core Functionalities
    • Sentiment Analysis
    • Portfolio Optimization
    • Twitter Agent
    • Performance Reporter
    • Non-Custodial Approach
    • Future-Ready Features
  • Roadmap and Future Plans
    • Immediate Roadmap
  • Technical Overview
    • Portfolio Optimization Algorithms
    • Security and Non-Custodial Design
    • Developer Tooling and APIs
  • Explainer: Modern Portfolio Theory (MPT)
    • Historical Background
    • Key Concepts
    • Application in Franklin AI
    • Why MPT Matters
  • Frequently Asked Questions (FAQ)
    • General Questions
    • Features and Functionality
  • Terms and Conditions
Powered by GitBook
On this page
  1. Explainer: Modern Portfolio Theory (MPT)

Application in Franklin AI

Franklin AI employs MPT to:

  • Generate Optimized Portfolios:

    • It calculates expected returns, risks, and correlations using historical and real-time data.

    • Constructs portfolios along the efficient frontier to balance risk and return.

  • Diversify Assets:

    • Reduces risk by analyzing correlations among meme coins, blue chips, and other assets.

  • Improve User Decision-Making:

    • Provides visualizations like efficient frontier plots, helping users understand risk-return trade-offs.

PreviousKey ConceptsNextWhy MPT Matters