RISK MANAGEMENT

OUR RISK MANAGEMENT SERVICE

  • We estimate the risks of your portfolio by employing our A.I. based models and deliver results through a confidential  report. 
  • We disentangle the risks included into your portfolio to assess your exposure toward different risk factors.
  • We make customized stress tests and plans to manage these difficult situations.
  • We provide volatility filters and early warning signals to help you reduce your exposure in a timely manner.

HOW TO AVOID CRASHES

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  • Switch from a backward-looking toward a forward-looking approach toward Risk Management by employing volatility filters extrapolated from options and powerful predictive models.
  • Employ macroeconomic-based and sentiment-based measures to assess the probability of a market crash.
  • Our proactive risk management approach aim at reducing the exposure of your portfolio right before the losses materialize.

RISK MANAGEMENT

  • We estimate the portfolio risk using a variety of advanced model including copulas, Monte-Carlo simulations and artificial intelligence based models.
  • Black swan risks are estimated with the Extreme Value Theory.
  • We integrate in our risk measures the information coming from options.
  • All our results are subject to a rigorous scientific validation.
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STRESS TESTING AND MANAGEMENT

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  • We create customized stress test reports.
  • We make detailed plans to be ready to face the most challenging adversities.
  • Our plans includes strategies to face both a geopolitical or a financial crisis.
  • We consider ever adverse scenarios specific to a single asset class like a sudden anomalous surge of interest rates or the collapse of some currencies.
  • Further extensions are available upon request.

RISK DECOMPOSITION

  • The decomposition of the portfolio risk into its components is fundamental for portfolio management.
  • Our approach allows to monitor which risks we want in the portfolio and reduce them timely.
  • The decomposition allows us to gain a better understanding of the genesis of the return per-unit of-risk of the different subsets of the portfolio.
  • Our approach for the risk decomposition is nonlinear providing a more precise assessment with respect to the traditional approaches developed in the industry.
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