Add to ORKGPassive portfolio management which aims to replicate a stock index faces basically two different optimization methods. Traditional portfolio management employs historical stock return data of preselected stocks in order to replicate the underlying stock index. The cointegration method em-ploys time series data of stock prices instead, even though stock price data may statistically often exhibit random walk behavior. In this review the advantage of the latter method could be asserted. Thereby, different stock portfolios with respect to the Swedish stock market are constructed which rest upon both, the concept of correlation and the concept of cointegration. The cointegration based models dominate, which can be ascertained by comparing their ...