Quant Insight, a London based firm specializing in machine learning driven macro analytics is planning to take its expertise in the field of foreign exchange in Europe. The financial technology firm has partnered with Euronext, the leading pan European exchange in the Eurozone, to develop a new alternative data intelligence service, Macro Risk Insight, to provide asset managers with valuable data-driven insights into the risk exposure of investments to global macro factors at large.
Macro Risk Insight uses innovative quantitative techniques to facilitate clients to identify important macro factors such as real rates, exchange rates, inflation and commodity prices, that drive the pricing of their business assets and portfolios. The business intelligence service covers pan-European blue-chip equities, uses Quant Insight’s proprietary adaptive models to calculate each stock’s exposure to macro factors. It also calculates the sensitivity of each stock for more than 30 individual factors and predicts the corresponding share price movement for a given change in the value of each factor.
Nicolas Rivard, Head of Advanced Data Services at Euronext, said, “Our clients are increasingly asking for high quality alternative data sets to help them manage their risk exposure, and we are working closely with a number of exciting new analytical content providers, like Quant Insight, to develop the products that will help them with this challenge.” The Euronext leadership strongly believes that Macro Risk Insight will be invaluable in helping asset managers to manage the risk exposure of their portfolios to a wide range of macro-economic factors. Euronext plans to release a number of data alternatives to aid financial decision making in 2019.
Mahmood Noorani, Founder, and CEO at Quant Insight said: “The influence of macro factors is growing across asset classes, and understanding the true underlying macro exposure of assets is becoming critical. This partnership with Euronext is a key step for Quant Insight in bringing powerful data-driven solutions to a much broader universe of clients.”
Asset managers have long faced this problem of incompetency when it comes to analyzing the effect of macro factors and economies on their investments. With such data-driven models of financial decision-making asset managers are sure to reap the benefit of financial technology in the longer run.