Portfolio Prerequisite: Single Segment Models
Before you can build your portfolio model, you must first build your individual segment models. For guidance on adding factors or data to a segment, please see our earlier sections.
Building a Single Segment Model
Building a single segment model for a portfolio follows the same process as if you are building an independent model with a few additional considerations/requirements listed below. This section walks through the process of building a single segment model.
Additional Portfolio Considerations
When single segment models are to be used in a portfolio model there are a few additional considerations
Same End Date: Each segment model must have the same end date for them to be combined in a portfolio segment.
Independent Sales: The sales for each single segment should be independent (no overlap) from the other segments.
Minimum of 2 Segments: A portfolio model requires at least two segments.
Segment Tactics Only: include tactic investments that should be directly tied to the single segment. If the tactic is shared across segments, add to the portfolio level. If there are no tactics at the single segment level, one blank factor must be added to simulate the models.
Once you have build out at least two single segments, you can then build a portfolio model in the portfolio segment.
Notes
Environment Factors: Environmental factors only exist at the single-segment level.
Locks Segment Model: Once you simulate a portfolio, the segment model used becomes locked.