Research projects

Project CEMAPRE internal

TitleFrontier Portfolio Management: Digital Assets, ETF Innovation, and China's Market Dynamics
ParticipantsLucas Firmino, Raquel Gaspar (Principal Investigator), Yinong Niu, Inês Reis, Hyeinduk Sim
SummaryThis 12-month project investigates three critical frontiers in modern portfolio management: digital
assets, exchange-traded funds (ETFs), and the unique Chinese equity market.

First, it will assess the market efficiency and diversification potential of major cryptoassets
(like Bitcoin) to determine their viability in traditional portfolios. Second, it will study the
drivers of massive capital inflows into ETFs and develop advanced, alternative tracking techniques
to improve performance. Third, it will analyze the specific structural and behavioral features that
differentiate China's stock markets (Shanghai, Shenzhen) from global counterparts, focusing on
regulatory impacts and retail investor influence.

The project also aims to develop enhanced risk assessment models, including robust Value-at-Risk and
Expected Shortfall measures for mixed-asset portfolios, and explore the application of actuarial
loss aggregation methods to financial market risk.

The goal is to produce actionable insights and innovative methodologies for navigating today’s
complex investment landscape, bridging gaps between new asset classes, evolving financial products,
and distinctive emerging markets.