Macro exposure risk explained

Macro exposure risk explained

Robust and technology-driven
Dynamic, machine-driven Macro Risk data has been designed to help monitor true underlying macro exposure using a rigorous and scientific approach.

Proprietary quantitative model
Macro factors are large in number and highly correlated. This creates challenges for the traditional correlation matrix approach to understanding risk. Quant Insight™ performs large-scale data transformation and applies a modified Principal Component Regression approach. The net result is the ability to measure the independent impact of each macro factor on a stock price.

Calculate portfolio level /stock level macro risk in currency terms
Use the sensitivity data to identify high-risk stocks in various macroeconomic scenarios effectively. Calculate the change in the value of a stock holding from a shift in each of the macro factors.

Stress test and hedge effectively
Robust daily files provide data that enables users to check the impact of various macro shocks on their portfolio and come up with effective hedging strategies before the event.