Portfolio optimisation for 2 shares - What are some recommended metrics to use?

External question — Cross Validated Stack Exchange Author: Frankie139 Original post: https://stats.stackexchange.com/questions/664525 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I want to maximize the total number of shares of either A or B, by reallocating shares daily. For simplicity, the trades occur at each day’s closing prices. I'm basically determining the "optimal trades" (either sell A and buy B, or sell B and buy A) based on the price ratio. Each day's share price is the closing price of the shares, and I fixed the share's held (162,000 & 51,100) daily. Basically I want to "look back" and analyse the historical results, and see "what if I had rebalanced my portfolio on day "x", I could have ended up with more shares of A or B, than I would have if I had rebalanced my portfolio on day "y"". For example, in Day 6, Price A (4.30) < Price B (4.39), so sell all 51,100 shares of B $( 51,100 \cdot 4.39 = 224,329 )$ and buy A $( \frac{224,329}{4.3} \approx 52,170 )$ . New shares: $A = 214,170, B = 0.$ My table below is fine, but these metrics are quite "straightforward". What would be the recommended portfolio optimisation metrics that I could use to analyse the data? Apart from calculating variance and covariance of A & B, are there any other metrics/statistical tools I could use? What techniques could I use to check for predictive elements of the 2 share movements?