Portfolio Selection Systems (PSS) publishes a state of the art portfolio selection software package PSS Release 2.0: Digital Portfolio Theory. PSS Rel 2.0 is the only application that uses the latest digital signal processing technology to find long-term optimal investment portfolios. Portfolio Selection System 2.0 gives the investor the ability to achieve portfolio timing and optimal diversification for specific holding periods. Applying digital signal processing to the classical Modern Portfolio Theory problem results in Digital Portfolio Theory. The mathematics of digital signal processing, and portfolio network theory have resulted in a revolutionary new approach to risk management and portfolio selection. By defining mean-reversion risk, risk time-dimensions are added that allow memory to be included in the investment model. The PSS Rel 2.0 software enables the user to find optimal diversified portfolios of investments based on systematic, unsystematic, calendar and non-calendar mean-reversion risk. Not only is PSS the most sophisticated large scale long-term portfolio optimization software but it also performs fundamental analysis as well. The PSS application does not do any form of technical analysis or forecasting. PSS utilizes digital signal processing technology to measure the mean-reversion risk of calendar and long memory effects. Calendar and non-calendar mean-reversion risks are used to solve the Digital Portfolio Theory model. The PSS software is presented in the PSS User’s Guide and uses Digital Portfolio Theory developed by Professor C. Kenneth Jones. The PSS application makes the benefits of the new Digital Portfolio Theory available to the average investor.
Professor C. Kenneth Jones
Also available from PSS is the textbook, Portfolio Management, by C. Kenneth Jones. The book gives an in depth treatment of the theoretical model used in the software package. It presents the theoretical transformation of financial theory using signal processing to describe risk. The portfolio network model under uncertainty derived in the book creates a unified field of financial risk management and portfolio optimization. A complete derivation of Digital Portfolio Theory is available in the book Portfolio Management published by McGraw-Hill in 1992.