Asset charts are important visual presentation tools to highlight financial information in the form of network structures.
Financial portfolios in the form of assets that do not have complex relationships arising from different parts of the business, including ownership, management, and geographic location, among other factors.
The complexity of investment portfolios is reflected not only in the influencing factors but also in the consequences of investments, such as returns and costs.
Because assets are surrounded by different characteristics, it is essential that each investor or stakeholder understands a holistic representation of the effects, relationships, and outcomes of those characteristics on the assets.
The clarity of these features and their relationship / impact to the asset can be clearly emphasized using network diagrams. The networkography describes the nodes and edges and the relationships between the different entities representing the nodes and edges.
Some of the financial clarity provided by these charts includes: –
- Survey
Asset charts are useful tools for identifying the network structure of a portfolio. The relationships between the different entities in the portfolio cascade into each attribute, highlighting the nodes and edges of the portfolio. Visualization of these entities and corresponding relationships are essential tools in portfolio labeling.
Asset Mapping Assets are a critical factor in determining ownership and responsibility and in strengthening the transparency and visibility of an investment. Clearing not only strengthens investment intelligence, but also provides better visibility into leadership and decision-making.
- Diversification
Asset charts are also ingenious tools for emphasizing the quality of decentralization. The network structure of the portfolio emphasizes the diversity of assets in a robust way, which facilitates institution-specific and data-driven decision-making. The image created by the asset charts can be used to determine the diversification structure and identify key factors to assess the validity of the existing structure.
- Risk
Utilizing network diagnostics in an asset chart is a very fundamental application of asset charts. By examining the network effect, the risk aspect of the investment portfolio can be identified in an existing situation or simulated. Therefore, the asset chart can be used in risk management as an early warning system for risk concentration, forensic analysis and diagnostics of portfolio scenarios, stress testing, among other risk management applications.
In addition, the visibility provided by asset charts in relation to the entities highlights the different businesses and activities surrounding the asset and the asset, and thus the asset chart provides a better picture of the contagion risk that the asset is likely to face based on its relationships with other companies or firms. activities described by the butterfly effect.
- Trend
Finally, examining network impact not only provides risk exposure, but also allows decision makers to optimize the benefits identified from the asset chart. The analysis provided can be used to identify trends and thus proactively create better products for future applications, new products based on behavior change, and alternative solutions to market as presented by the models.