Hedge funds – quantitative

In the search for risk-free alpha, quantitatively driven funds need a statistically robust model that minimises the overlap between risk and alpha.

EMA’s Alpha Toolbox corrects for the “contemporaneous/simultaneous estimation bias” to allow for use of full-information maximum likelihood estimation techniques for risk-adjusted testing of valuation/trading models.

This improves the probability that a historically observed alpha will deliver risk adjusted outperformance in future.

In operation, EMA’s Excerpt risk analysis system can be delivered as an API to facilitate the integration of its advanced analytics into any front or middle office platform.