In a previous blog (Building Custom Baskets), we showed how Finsera Basket Builder can be used to easily construct a custom cybersecurity basket.

Here we show how the performance of such a basket can be incrementally enhanced.

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Annualized Returns:

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Annualized Information Radio:

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Demo 1:

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Demo 2:

We then incrementally build and compare the performance of 3 different baskets:

The initial cap-weighted basket of cybersecurity stocks based on the largest 5 ETFs by AUM (cyber_5)
A second basket which excludes the bottom quintile of cybersecurity names based on Sales Growth (cyber_5_1)
A third basket which further excludes the highest quintile of names based on market Beta (cyber_5_2)


Using our basket compare module:

We can see that Finsera’s basket builder makes it easy to test assumptions and implement small refinements in basket composition which can result in meaningful performance improvements.

Basket Compare Annualized Return Charts:

‘cyber_5’: initial basket; ‘cyber_5_1’: excludes bottom quintile based on Sales Growth; ‘cyber_5_2’: excludes bottom quintile based on Sales Growth and excludes highest quintile of names based on Beta

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