Ai for Alpha, a pioneering fintech firm specializing in leveraging AI for sophisticated investment strategies, announced the launch of its “Global Macro Decoding” strategy.
Beatrice Guez, CEO of Ai for Alpha, described this innovative strategy as a significant enhancement to the company’s suite of decoding replication strategies. “It mirrors the industry’s leading Global Macro Hedge fund Strategies, skillfully navigating macroeconomic dynamics in equities, credit, sovereign bonds, commodities, and currencies,” Guez explained.
Thomas Jacquot, Head of Business Development, highlighted the strategy’s versatility: “Global Macro Decoding not only captures directional movements but also identifies refined arbitrage opportunities across various asset classes. It offers a highly complementary addition to our portfolio of replication strategies, including CTA, risk parity, long/short equity, and global balanced strategies. All these are replicated with a high degree of correlation using liquid market instruments. Notably, this strategy showcases distinct correlations of 0.16 with CTAs and 0.11 with global equities, underscoring its unique diversifying positioning.”
The strategy leverages a selection of 24 highly liquid markets across equities, Credit, sovereign bonds, commodities, and currencies. Our method involves mapping betas not only to individual markets but also to trend factors derived from these markets. This dual approach effectively captures the non-linear behaviors and directional biases inherent in various asset classes typical of Global Macro strategies. As a result, it achieves a correlation of 0.83 with global macro strategies and maintains a consistent superior risk-adjusted return.
Key Ai Global Macro Decoding statistics: achieving a high correlation to the Global Macro Benchmark and superior risk-adjusted return.
|
|
Ai Global Macro Replication |
Global Macro Benchmark |
|
Annual Return |
5.5% |
3.1% |
|
Vol |
5.4% |
5.2% |
|
Sharpe Ratio |
1.02 |
0.60 |
|
Max DD |
10.4% |
8.9% |
|
Return/Max DD |
0.5 |
0.3 |
|
Information Ratio |
0.52 |
|
Correlation |
0.83 |
About Ai for Alpha: Ai For Alpha is a leading provider of generative AI and AI-powered investment models to large financial institutions in Europe, the Americas, and Asia. The company has received numerous awards for its achievements in AI applied to finance, including the EIT’s European Digital Label for Innovation and the Women TechEU 2023 award. Ai For Alpha’s publications rank in the top 1% of most-read articles on SSRN, the world’s.
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