Complexity is a fundamental physical property of any system, defined as a function of “the structure of information flow” and “entropy”.Optimum’s proprietary algorithm extracts all linear and non-linear relationships between the components of a system. It requires no models and accounts for the nonlinearities and dispersion of data using entropy concepts, not standard deviations.Applied to an Equity Index, the algorithm output is the complexity contribution of each stock [components] to the overall complexity of the Equity Index [the system].The stocks are then ranked from highest to lowest complexity contribution and gathered in the Index Complexity Profile. The stocks ranking at the top of the Complexity Profile add complexity to the portfolio and induce fragility. The stocks ranking at the bottom of the complexity profile are the most resilient and can be considered truly uncorrelated to the investment universe, adding resilience.Optimum is also able to determine an “Optimum Complexity Range”, containing stocks with short-term predictability of [risk adjusted] superior performance.Investment strategies based on this approach are live trading and outperform their reference index on a regular basis.