# K-Means Portfolio for Value Investors

The Matlab code to easily create your own K-Means Portfolio is up!! Click here to see it on my Github K-Means Clustering is the simplest clustering algorithm for discovering patterns and structure in data among many dimensions. Can it work for Value investors? Let's do a simple test to see if it holds up in out-of-sample testing. Basic Overview Without getting into much of the math (a simple google search will suffice), K-Means clusters data through a simple iterative algorithm that initiates centroids and moves each centroid toward an optimized mean where the cost function : euclidean distance between each point and the […]