Question: Instead of using quantitative analysis to make investment decisions, are there any quantitative investment tools or strategies that analyze and/or optimize an actively managed portfolio?
Here are some examples to help explain what I am asking.
Example 1: Using variance/covariance calculations to determine the correlation between assets, therefore analyzing diversity of risk.
Example 2: Build models to test a given portfolio's reaction to different economic shocks or past scenarios.
Thank you in advance for any input!