Quant Funds Look to AI to Master Correlations

Machine learning shows promise in grouping assets better and predicting regime shifts, say fund managers.

Relationships – whether between financial assets or people – are a complicated business.

Investors pore over asset correlations for clues as to how the behavior of one security is likely to affect the behavior of another. Now, buy-siders are seeking to harness artificial intelligence to control the sorts of changes in asset relationships that can unbalance portfolios, water down diversification – and, ultimately, crimp returns.

The work involves reappraising how securities should be grouped

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe

You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Waterstechnology? View our subscription options

Waters Wrap: The tough climb for startups

Anthony speaks with two seasoned technologists to better understand why startups have such a tough time getting banks and asset managers to sign on the dotted line.

FCA declines to directly regulate market data prices

A year-long investigation by the UK regulator to determine whether competition is hindered in the wholesale data markets has concluded with its decision not to directly regulate much-maligned data pricing and licensing structures.

You need to sign in to use this feature. If you don’t have a WatersTechnology account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here