Combining industry standard allocation and optimization techniques with our patented fat-tailed risk management software framework, the Cognity risk analytics platform arms fund managers and multi-manager investors with a comprehensive suite of portfolio construction capabilities. Leveraging both qualitative research and quantitative insight, portfolio managers, quantitative analysts and asset allocators can:
The key results are:
Tail Risk Budgeting
Cognity goes beyond classical risk budgeting with its patented ETL framework for “tail risk” budgeting. Maximizing expected returns per unit of allocated downside risk, Cognity’s visual tail risk analytics environment transforms risk measurement into returns management. As the only commercial risk management software platform offering true downside risk budgeting, Cognity risk analytics drive consensus between portfolio and risk managers by clearly identifying tactical rebalancing opportunities in a common portfolio construction view.
Deploying patented fat-tailed modelling processes on the same risk management software system, Cognity is the only platform to deliver ETL efficient portfolios optimized for minimum tail risk and maximum tail return. Combining market expectations, internal policy and risk tolerance levels, Cognity produces diversified strategic tail-adjusted allocation guidelines across asset class, sector and geography.
Tail Hedged Overlay Strategies
Hedge overlays are power vehicles for actively mitigating risk. Understanding the tail dynamics of your underlying assets is essential prior to applying any hedging strategy. Cognity risk management software provides a unique lens into both these tail dynamics with powerful insight for:
Combining our patented risk management software with ground breaking portfolio construction capabilities, Cognity is the most comprehensive commercial risk analytics platform available today.
Gregory Crawford talks with David Merrill, CEO of FinAnalytica, talks about the communication gap between portfolio managers and risk managers and how that's being filled.
Version 4.0 offers enhanced ‘Tempered' Stable Distributions modelling and increased performance through new scenario caching. Users have access to expanded upside tail returns analytics and enhanced tail risk hedging models