Utilizing the real estate investment trusts for portfolio optimisation by application of genetic algorithm.

Complex investment decisions require thorough study. Modern portfolio theory provides some broad guidelines on diversification within this framework, focusing on financial instrument categories. A diverse portfolio and favorable economic conditions are the main factors affecting investor returns. Th...

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Publicado en:Humanities & Social Sciences Communications Vol. 12; no. 1; pp. 1 - 12
Autores principales: XU, Li, Matac, Liviu Marian, Espinosa Cristia, Juan Felipe, Dias, Rui, Pavel, Codruta-Daniela
Formato: Artículo
Publicado: Springer Nature 4/3/2025
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Acceso en línea:Ver este registro en EBSCOhost
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      dt: 4/3/2025
      vid: 12
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      pub: Springer Nature
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        10.1057/s41599-025-04715-0
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        atl: Utilizing the real estate investment trusts for portfolio optimisation by application of genetic algorithm.
      aug:
        au:
          XU, Li
          Matac, Liviu Marian
          Espinosa Cristia, Juan Felipe
          Dias, Rui
          Pavel, Codruta-Daniela
        affil:
          https://ror.org/0419nfc77 College of Economics & Management, China Three Gorges University, Yichang, China
          https://ror.org/04yvncj21 Faculty of Accounting and Management Information Systems, Bucharest University of Economic Studies, Bucharest, Romania
          https://ror.org/05510vn56 Departamento de Ingeniería Comercial, Universidad Técnica Federico Santa María, 2390123, Valparaíso, Chile
          https://ror.org/05mnej980 ISG-Business & Economics School–CIGEST, Lisboa, Portugal
          https://ror.org/0077saz97 ESCAD–Instituto Politécnico da Lusofonia, Lisboa, Portugal
          https://ror.org/0583a0t97 Faculty of Economics & Business Administration, West University of Timisoara, Timisoara, Romania
      su:
        Financial crises
        Investors
        Real estate investment trusts
        Financial instruments
        Decision making in investments
      sug:
        subj:
          Financial crises
          Investors
          Real estate investment trusts
          Financial instruments
          Decision making in investments
      keyword:
        Commerce
        Finance and Investment
        Management
        Tourism and Services Banking
      ab: Complex investment decisions require thorough study. Modern portfolio theory provides some broad guidelines on diversification within this framework, focusing on financial instrument categories. A diverse portfolio and favorable economic conditions are the main factors affecting investor returns. The research used the RIETS portfolio and genetic algorithm to improve investment portfolio Sharpe ratios. Since 2008, when the financial crisis increased activity, investors and scholars have focused on REITs. REIT investments have gained popularity in recent years due to their long-term stability and consistent profitability. Studies that emphasize management perspectives are valuable, but they also have significant limitations. Asset management's primary goal is to optimize investor returns. It is imperative to evaluate asset management strategies in order to guarantee the assets' long-term efficiency. This study examines 456 distinct portfolios in order to rectify this deficiency and demonstrates how the incorporation of REITs into mixed-asset portfolios enhances them in a variety of critical financial metrics. The results of the study suggest that utilizing genetic algorithm optimization outperforms a globally diversified portfolio with the lowest volatility. The data indicates that investing in REITs is a highly effective strategy for improving the Sharpe ratio, average returns, and risk profile.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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