Financial Allocation Management Using Behavioral Psychology

Abstract

In the fast-changing scenario of financial investment strategies, integration of behavioral psychology with advanced analytics has become one major trend that could help improve portfolio allocation decisions. This research paper discusses a new scenario in portfolio allocation that uses sentimental analysis to make proper considerations of an investor’s risk tolerance and financial objectives. Unlike traditional methods, heavy on quantitative data, the research supplements insight into the investor’s financial interest and disposition with behavioral cues emanating from social media interactions.

Artificial Intelligence, Behaviour, Investment, Modern Portfolio Theory, Portfolio, Psychology, True Risk Tolerance