IT DEPENDS ON YOUR CHOICE OF PERFORMANCE METRIC WEIGHTS.
Subscribers will be asked to assign a weight to each of the following four performance metrics:
The market adjusted risk per unit of return.
The percentage of works offered that sold.
The ratio of that artist’s sales to the sales of the artist in the database with the largest number of sales.
The percentage of works that sold at a loss.
Each artist has a unique numerical value for each of the four-performance metrics based on historical results in the repeat sale auction market.
We ask you to reveal your relative preference for the four-performance metrics by using the preference slider below. The only constraint on your weight is that their sum be equal to 100%.
Multiplying each of an artist’s four performance metrics by the user chosen weight for each metric and then adding them together in a special way yields the artist investment potential (AIP) for that artist. Artists with small positive AIP values have a stronger investment potential than artists with high AIP values. Artists’ AIP values can be compared by the user as a way of facilitating the selection of an artist for investment. There is no one correct set of weights their values are personalized and therefore not comparable across users.
In our System, artists are compared according to their respective Artist Investment Potential (AIP) scores. An artist’s AIP is based on your personal decision about the relative importance of each of the performance metrics to your investment goals and risk tolerances. Its importance is shown by the relative weight you assign to each metric. The sum of the weights must total 100 %.
PICASSO AIP 1.4138
Become a PREMIUM SUBSCRIBER (current introductory half price offer of $125 per calendar year) and find out your AIP results for 900 of the most actively traded artists in the international auction market. As an example, see below the top five artists in the high price high market activity group given your weights and current crowd source weights.
To make your investment selection process easier, we use a database of the repeat sales of the almost 900 most active artists, at least 10 repeat sale pairs, from the master database representing about 8000 artists. These most active artists in the auction market are further grouped into artists with similar frequency of sales and average price level of sales.