Understandable Artificial Intelligence

Overview

©2018 Economic Data Sciences

Risk analysis is one of the core value proposition of EDS software

  • We provide rigorous analysis of factor exposures and geographical risk assessment

  • Using EDS preference based approach, clients can focus on reducing certain risks or increasing exposure to others

Expected Alpha vs Active Risk

©2018 Economic Data Sciences

We use a very high bar when estimating forward-looking alpha expectations. These forecasts represent excess return over a benchmark and over factor driven return. Why do we do this? In essence, factor driven return can be harvested elsewhere, hence we use this strict definition

Funds names shorthand is on the following slide

*Data from EDS, Oppenheimer, & Bloomberg, courtesy of London Business School

Fund Names Shorthand

©2018 Economic Data Sciences

  • LCV - U.S. Large Cap Equity Value
  • LCG - U.S. Large Cap Equity Growth
  • MCV - U.S. Mid Cap Equity Value
  • MCG - U.S. Mid Cap Equity Growth
  • Small Cap - U.S. Small Cap Equity
  • Global - Global Equities
  • International DM - Developed Markets Equities
  • International EM - Emerging Markets Equities

Risks Breakdown

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Risks by Type

©2018 Economic Data Sciences

Risks Breakdown - Type

©2018 Economic Data Sciences

Risks Breakdown - Geography

Disclaimers

©2018 Economic Data Sciences

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this presentation, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for an individual's portfolio.

Our projections are based on current market conditions which can vary over the coming months and weeks. Additionally, our projections are based on historical market behavior which may vary unexpectedly. Using Machine Learning, our tool should adjust to new market fluctuations but we might not be able to avoid short term volatility.

Get In Touch

©2018 Economic Data Sciences

info@EconomicDataSciences.com

www.EconomicDataSciences.com

info@EconomicDataSciences.com

Risk analysis

By Economic Data Sciences

Risk analysis

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