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1996 - Mathematical theory of
Q-Distributions was documented 2 years after
it was first discovered in 1994. For the first
time in history, it enabled researchers to
generate a family of fat-tailed and skewed
probability distributions for modeling stock
prices and asset return statistics.
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1997 - With
Q-Distributions as its foundation, Institute
for Systematic Investing Research (ISIR) made
systematic investing a widely accepted
concept. It was defined as a disciplined
quantitative procedure applied to a given
asset portfolio over a specific future time
period for the purpose of improving return and
reducing volatility.
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 1998
- Ongoing projects at
ISIR on statistical data processing of human
emotion led the discovery of Huemo, a
quantitative measuring system of human emotion
for the stock market. Most investors suffered
detrimental losses due to poor understanding
of a disaster downtrend. The research of Huemo
presented clear understanding of such
occurrences. |
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1999 - Huemo
Index was successfully tested using data of S&P
500 index share (SPY) and over 500 large-cap
individual stocks. The results showed
that the Huemo empowered S&P 500 Fund achieved positive return every
year since 1995. |
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2001 - Huemo
Theory was further validated using S&P
500 market price and volume data since 1950. The results showed
that it predicted S&P 500 trend changes
during the most unpredictable volatile period
from 1967 to 1982. Human emotion analysis challenged
the conventional methods of fundamental
analysis and technical analysis, allowing
investors to explore a third dimension of stock market
behavior. |
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2002 - Huemo
Theory was expanded to derive a banded and
centered Sentiment Index for easier readings
and applications. A real-time continuous
version was developed as a broad market
measure on investor sentiment. A mutual fund
version was also developed to assist asset
managers in better asset allocation and risk
management. A new dynamic asset allocation
model was also proposed and validated. |
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