Algorithmics and Axioma have announced a business relationship to offer buy side clients data derived from multi-factor equity models as part of Algo Risk Service.
Algo Risk Service is Algorithmics’ hosted portfolio construction, risk management and reporting service. The combined proposition integrates data derived from Axioma’s proprietary equity models in order to meet a market demand for customised risk solutions offering options for data source and modelling.
Dr Sebastian Ceria, CEO, Axioma, said, “Most clients want to achieve modelling consistency between the risk-focused middle office and investment-oriented portfolio managers in the front office; our collaboration with Algorithmics provides that consistency of equity risk. Axioma’s front office clients will enjoy consistent modelling with their middle office risk departments.”
Axioma Risk Models offer a wide range of regional and style-base models that are recalibrated daily as opposed to the industry norm of monthly, with re-estimations and production of factor exposures, covariance matrices, and asset specific risks.
