Active charts are important visual presentation tools to highlight financial information in the form of network structures.
Financial portfolios in the form of uncomplicated assets arising from various components of the business, including geographical location between ownership, management and other elements.
The complexity of investment portfolios is reflected not only in the contributing factors, but also in the results of investments, such as income and expenses.
With the various attributes surrounding assets, a complete description of the effects, relationships and consequences of these attributes on assets is essential for any investor or interested party to understand financially.
The clarity of these properties and their impact on connections / assets can be clearly highlighted using network charts. A network graph is characterized by connections between nodes and edges and various objects representing nodes and edges.
Some of the financial clarity provided by these charts includes:
- Mapping
Active charts are useful tools used to determine the network structure of a portfolio. Relationships between different entities in the portfolio are reduced to each attribute, emphasizing the nodes and edges of the portfolio. Visualization of these objects and relevant relationships are important tools for portfolio marking.
Asset mapping is important in identifying asset ownership and liability and in enhancing the transparency and visibility of investments as a whole. Cleaning not only enhances investment intelligence, but also provides better visibility for management and decision making.
- Diversification
Active charts are also a powerful tool for emphasizing the quality of diversification. The network structure of the portfolio strongly emphasizes the diversity of assets, which facilitates institution-based and information-based decision-making. Using an image created with active graphs, a diversification structure can be created and key factors can be identified to assess the reliability of the existing structure.
- Risk
The use of network diagnostics in active graphics is a very fundamental application of active graphics. By studying the network effect, the risk aspect of the investment portfolio can be identified or simulated in the current situation. Therefore, an active schedule can be used as an early warning system for risk concentration, forensic analysis and portfolio scenario diagnostics, stress testing among other risk management applications in risk management.
In addition, the visibility provided by the enterprise relationship asset charts highlights the various businesses and activities that cover the asset, and thus the asset graph provides a better view of the risk of infection that the asset may face based on its relationship with another business or business. activities described by the butterfly effect.
- Trends
Finally, network effect research not only provides exposure to risks, but also allows decision makers to optimize the subsequent benefits identified from the asset schedule. The analysis provided will be used to identify trends and thus forecast to create alternative solutions for the market, as illustrated by better products for future applications, new products based on behavior change, and examples.