Why multi-asset investing calls for 3G factor models

Factor models can be helpful in identifying unseen risks in investor portfolios

damian-handzy-investor-analytics-hfr0915

Factor models continue to increase in popularity, especially due to their most appealing attribute: the simplification of otherwise bewildering array of risk and return measures into a handful of explanatory causes. The aim is to identify a small number of causes (factors) that explain the complex dynamics of a large number of moving parts (securities in a portfolio). Factor modelling isn't just used in financial services: the statistical techniques we employ in our industry are just as

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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net 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: