Resources Industry Parallels

Forecasting Similarities between the Resources and Investment Industries

Both the petroleum industry and the finance industry face the same challenges - forecasting a portfolio’s size of future returns and the associated probability of success. Both industries have interesting similarities, and differences, in forecasting methodologies. They both use risk analysis to decide on the projects they will invest in.

Assessing portfolio risk using the Efficient Frontier

Archimedes Financial Planning uses the Efficient Frontier methodology, a blend of approaches of the petroleum exploration industry and finance industry, to assess portfolio risk and target a more effective result than standard financial planning methodologies.

Over the last 10 years, a number of authors have recognised that combining the better elements of each industry’s forecasting methods can produce a more reliable result.

Find out more about how Archimedes Financial uses the Efficient Frontier in the finance industry