FRACTAL ANALYSIS IN ALTERNATIVE INVESTMENTS: UNVEILING DYNAMICS AND DIVERSIFICATION BENEFITS

The realm of alternative investments, comprising commodities, real estate, private equity, and other non-traditional asset classes, presents a rich landscape for investors seeking diversification and enhanced returns. Amidst the complexities of these markets, fractal analysis emerges as a powerful tool for unraveling the intricate dynamics and exploring diversification benefits. This paper delves into the application of fractal theory in alternative investments, assessing its efficacy in analyzing asset price movements, correlations, and portfolio diversification. Through a comprehensive review of the literature and empirical evidence, we elucidate how fractal analysis techniques can deepen our understanding of alternative investment markets and inform strategic decision-making. Key findings highlight the ability of fractal analysis to capture nonlinear dependencies, self-similarity, and multi-scale dynamics across various asset classes. The study demonstrates how these insights enhance portfolio resilience, optimize asset allocation, and improve risk-adjusted returns. Additionally, this research contributes novel perspectives on integrating fractal methods with portfolio management and risk diversification strategies.

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Publication Details

Journal
Fractals
Published
2024-12-26
DOI
https://doi.org/10.1142/s0218348x25500124
Primary Topic
Theoretical and Computational Physics
Type
article
Field-Weighted Citation Impact
0.00
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article

FRACTAL ANALYSIS IN ALTERNATIVE INVESTMENTS: UNVEILING DYNAMICS AND DIVERSIFICATION BENEFITS

Norazryana Mat Dawi, Petra Marešová
Fractals
Theoretical and Computational Physics
article

FRACTAL ANALYSIS IN ALTERNATIVE INVESTMENTS: UNVEILING DYNAMICS AND DIVERSIFICATION BENEFITS

Norazryana Mat Dawi, Petra Marešová
article en

Abstract

The realm of alternative investments, comprising commodities, real estate, private equity, and other non-traditional asset classes, presents a rich landscape for investors seeking diversification and enhanced returns. Amidst the complexities of these markets, fractal analysis emerges as a powerful tool for unraveling the intricate dynamics and exploring diversification benefits. This paper delves into the application of fractal theory in alternative investments, assessing its efficacy in analyzing asset price movements, correlations, and portfolio diversification. Through a comprehensive review of the literature and empirical evidence, we elucidate how fractal analysis techniques can deepen our understanding of alternative investment markets and inform strategic decision-making. Key findings highlight the ability of fractal analysis to capture nonlinear dependencies, self-similarity, and multi-scale dynamics across various asset classes. The study demonstrates how these insights enhance portfolio resilience, optimize asset allocation, and improve risk-adjusted returns. Additionally, this research contributes novel perspectives on integrating fractal methods with portfolio management and risk diversification strategies.

FractalsVol. 33(01)
University of Hradec Králové (CZ)
Openalex Percentile: Top 85%
Theoretical and Computational Physics
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