Corporate financial management is the financial management of an enterprise. It is the management of the process of raising, investing and distributing funds, and it is also the asset management of the enterprise's cash flow.
If an enterprise stores excessive cash for a long time, it will cause the funds to be unable to be invested in turnover and unable to make profits.
When companies need to expand production, they find it difficult to raise funds.
Therefore, corporate financial management must generate returns on the premise of safety and liquidity.
Currently, more and more business owners are beginning to pay attention to information about corporate investment management.
Ensure the safety of funds and avoid financial risks. Currently, many companies have financing needs. Therefore, business owners may obtain funds through some financing channels, but they must pay attention to the cost of funds in this area. If the financing costs are too high, the return on investment will be relatively reduced.
, it is necessary to consider that sudden systemic risks and non-systemic risks will passively prolong the financing period, thereby increasing financing costs.
The cost of capital is low and the financing cycle is long.
This is what business owners are concerned about, but many business owners tend to ignore point 2 and underestimate the financing cycle. In many cases, the expiration of the financing cycle triggers a chain reaction of increased capital costs.
Ensure the liquidity of funds and avoid the breakage of the enterprise's capital chain. If the normal business activities of an enterprise require very high frequency of funds in and out, then the products invested need to be flexible, and the purchase and redemption must be very fast.
If this is taken as the premise, currency funds are undoubtedly a very good choice, which can not only provide higher returns than current deposits, but also maintain the liquidity of funds and prevent the company's capital chain from breaking.
However, the rate of return of currency funds is not high, so it is suitable for companies that require high frequency of capital in and out, in the form of quick deposits and withdrawals.
Improve the efficiency of capital utilization and promote capital appreciation. If the company does not need funds to enter and exit quickly and can be used for medium and long-term investment, then it can carry out customized investment models for the company, and can use macro asset allocation strategies to invest and portfolio investments.
Model, hunt for different targets in the capital market, analyze and select investment targets through quantitative models.
Later, we will briefly introduce the macro asset allocation model and the application of quantitative trading strategies in the capital market.
Asset Allocation Model Asset allocation strategy refers to allocating investment funds among different asset classes according to investment needs, usually allocating assets between high-risk, high-yield products and low-risk, low-yield products.
Calculate combinations through quantitative financial models to achieve the purpose of obtaining returns.
Asset allocation has different meanings at different levels.
From the scope point of view: it can be divided into global asset allocation, stock and bond asset allocation and industry style asset allocation; from the time span and style category point of view: it can be divided into strategic asset allocation, tactical asset allocation and asset mixed allocation; from the perspective of asset allocation
Based on the characteristics of the manager and the nature of the investor: it can be divided into Buy-and-hold Strategy, Constant-mix Strategy, and Portfolio-insurance Strategy.
, Tactical Asset Allocation Strategy.
Investors' risk appetite, liquidity needs and time horizon requirements usually need to be taken into account, as well as practical investment restrictions, operational rules and tax issues.
For example, the money market funds we mentioned earlier are often used by investors as short-term cash management tools because they have good liquidity and low risks.
Asset allocation strategies are actively managed on the basis of different risk tolerances of investors. They have different characteristics and perform differently in different market environment changes. At the same time, they impose different market liquidity requirements for the implementation of the strategy.
It depends on the specific situation, because the asset allocation model is flexible and changes.
Quantitative trading model: Quantitative trading model, quantitative investment and traditional investment, both are based on the theoretical basis of market inefficiency or weak efficiency.
The difference between the two is that quantitative investment places more emphasis on data and rigor.
Using artificial intelligence and big data, quantitative trading has the following characteristics: 1. Discipline to make decisions based on the results of the model, rather than based on feelings.
Discipline can not only restrain the weaknesses of human nature such as greed, fear, and luck, but also overcome cognitive biases and can be tracked.
2. The systematic manifestation is “three excesses”.
The first is multi-level, including models at three levels: major asset allocation, industry selection, and specific asset selection; the second is multi-perspective, with the core ideas of quantitative investment including macro cycles, market structure, valuation, growth, and profitability.
Quality, analyst profit forecasts, market sentiment and other perspectives; the third is multi-data, that is, the processing of massive data.
3. Arbitrage thinking Quantitative investment captures opportunities brought about by mispricing and misvaluation through comprehensive and systematic scanning, thereby discovering valuation depressions and making profits by buying undervalued assets and selling overvalued assets.