Our expertise lies in finely tuning the exposure of the chosen investment and enhancing the overall performance of the financial products we’re integrated with through risk-return enhancement.
Transparency
To ensure transparency, our team works in close collaboration with the client to create the final solution. The client’s capital market expertise is leveraged into the data design and modeling, thus ensuring the interpretability of the solution’s inputs and outputs.
Risk Management
Our solution analyzes market risk using qualitative data for risk modeling, validation and backtesting in order to produce more accurate forecasts of aggregate financial or economic variables that could affect the investment portfolio.
Financial Engineering
Our technology can weight allocations within an index to favor certain characteristics, such as sustainable dividends or low volatility, using mathematical models to analyze multiple datasets to identify patterns and insights as inputs in the investment decision-making process.
DATA CHALLENGE
While our clients’ investment strategies are generally built around analysis of price-to-earnings ratios, dividend yields, and other structured financial data, the new frontier to finding alpha and reducing risk lies in the ability to glean insight from massive amounts of unstructured, text-heavy data which is not always easily obtainable.
This is where Azzilon comes into play. We enable investment managers to seize the strength of big data, advanced processing power, the speed of AI, and their own capital markets expertise to find ways to improve alpha, or any variety of portfolio metrics.
TECHNICAL ANALYSIS
Analyzing historical data (like price and volume) to navigate the gap between intrinsic value and market price.
PRICE
Analyzing price through multiple contexts, whether it be time frame or type (percentage, absolute, or net), as well as the price-to-earnings ratio in fundamental analysis and the rate-of-change indicator in technical analysis.
VOLATILITY
Using standard deviation and maximum drawdown to measure market volatility to support trade strategies depending on risk tolerance.
CUSTOM DATA
Additional data such as macroeconomic data, unemployment rate, consumer price index, sentiment data or earnings calendar can be used to enhance investment management.
METHODOLOGY
When customizing our client’s solution, weighting and direction of the portfolio elements can be defined by four segments that operate at an individual and group level. Calculations are made on a daily basis, but a rebalancing is only determined at the end of a specific period ( ex : trading week or day )and applied on the period ( ex : next trading day ). The creation of the portfolio can include up to four independent segments that can work together in certain aspects, as follows:
DIRECTIONAL COMPONENT CALCULATIONS
A strategy that allows selecting the direction ( long or short) of each product in the investment universe, based on daily returns, upward and downward movements, and momentum.
WEIGHT ALLOCATION CALCULATIONS
A strategy which calculates how much in percentage to be included in the portfolio, based on their potential contribution.
CONDITIONAL REBALANCING CALCULATIONS
A strategy to determine whether and when to rebalance, based on daily or weekly changes and average performance of the portfolio.
PORTFOLIO EXPOSURE CALCULATIONS
A strategy to manage the portfolio internal risk, based on standard deviation of the portfolio with volatility control adjusted at each rebalancing point.
CUSTOM SOLUTIONS
Working in close collaboration with our clients, we define portfolio components, investment objectives, trading strategy, rules, permissions, and restrictions to come up with an indexed systematic portfolio.
Asset classes
Through our system’s ability to be asset class agnostic we can tailor our solution using custom data components as well as fundamentals and macros to enhance performances for outcomes across all portfolio types.
Let us get back to you.
We’re here to help and would be happy to answer any questions you might have about our solutions and how they can improve your investment and asset management outcomes. We look forward to hearing from you..
