Generate investment ideas with
AlphaPredictor®

Advanced learning model that forecasts the movements of funds, asset classes, markets and securities across the business cycle

What is AlphaPredictor®?

Our cutting-edge investment technology, AlphaPredictor® can forecast the movements of a wide range of investment assets and help build portfolios designed to outperform and/or reflect economic views.

Inputs

Our model focuses on the right data not just ‘big’ data. Macroeconomic variables to identify changing economic conditions and risk factors to help determine what is driving risk and returns.

Learning and Forecasting

Our model learns about the evolving relationships between macroeconomic variables, risk factors and asset prices to calculate probabilities and make predictions about the future.

Portfolio Construction

Our powerful and flexible portfolio engine can be used to build portfolios that aim to outperform benchmarks, achieve specific objectives and/or reflect ‘house’ views.

Macroeconomic variables are used to identify the state of the economy

Default spread
Term spread
Inflation
Interest Rate
Dividend yield
Sentiment

Risk factors are used to identify risk exposures and the return drivers of investment assets

Equity beta
Fixed Income beta
Credit beta
Commodity beta
Property beta

Key Differentiators

Identifies best combination of assets to hold across the economic cycle

Learns and adapts across time to quickly respond to fast-changing investment conditions

Delivers a range of investment outcomes, all based on same fundamental insights, across and within assets classes

On the cutting edge of developments in quantitative investment management due to our academic bona fides

Features and Benefits

What can you expect?

AlphaPredictor® is a cutting-edge investment technology at the frontier of quantitative investing and based on the academic research of our founders. AlphaPredictor® has the ability to model complex interactions between macro variables, risk factors and security prices, learning and adapting, quickly responding to fast-changing conditions.

The technology has a range of applications from generating forecasts, creating portfolios, understanding fund and security behaviour, generating forward-looking fund ratings and providing detailed attribution and risk reporting.

Forecast return and risk for a range of investable assets

Forecasts the behaviour of funds, asset classes, markets, factors, sectors and securities over different time horizons

Peer Group Analysis

Forecasts aggregate characteristics including alpha within a peer group, quantifies managers’ all-weather and time-varying skills, calculates risk factor exposures and measures sensitivities to the economic cycle

Forward-looking fund ratings

Generates forward-looking fund ratings over different time horizons and within and across peer groups

Advanced learning model

An adaptive model that captures the complex and evolving relationships between macro variables, risk factors and security prices

Powerful portfolio engine and ability to backtest investment strategies

A powerful optimization engine that allows for the construction of long-only and long-short portfolios with customised investment objectives, risk limits and factor exposures. Strategies can be backtested to assess performance across different market and macroeconomic environments

Detailed attribution and risk reporting

Provides deep insights into the key drivers of investment asset and fund behaviour. Captures the alpha potential within user-defined investment universes, portfolios and of individual assets along with important macro sensitivities which may impact performance

Case Studies

Case Studies for AlphaPredictor®

AlphaPredictor® has many use cases. Have a look at some case studies from FinTech, wealth managers, asset managers and asset owners and investment platforms.

Asset allocation

A global religious organisation wanted to provide their investment committee and stakeholders with tactical asset allocation research and a tactical component to be used alongside their strategic asset allocation risk models.

Model Portfolios

A European discretionary wealth manager was interested in expanding their investment offering by adding 3 risk graded multi-asset funds covering safety, moderate and growth risk profiles.

Peer Group Analysis and Forward-Looking Fund Ratings

A UK FinTech company focused on the asset and wealth management industries asked Parala to help power its fund manager peer group analysis and forward-looking fund ratings for its website using Parala’s AlphaPredictor® investment technology

Portfolio Construction and Portfolio Optimisation

A US asset management company used external managers for its investment products and aimed to outperform the relevant fund peer groups.

Risk Management

An online investment platform offered its investors access to a range of actively managed investment funds selected by its fund selection team.

Fund Buy and Sell Lists

A global investment consulting firm wanted to strength its buy list for its global equity manager universe and identify managers that were at risk of underperformance where they were particularly unskilful given current economic conditions.

Our Blog

Latest blog posts

From research about asset classes, sectors and peer groups to articles about how to get the most out of AlphaPredictor®, you’ll find our latest thoughts here.

Emerging Market Equity Risk Factors Sensitivity to the Business Cycle

It is common knowledge that the business cycle moves through stages in which it expands, contracts and recovers and these stages have an influence on asset prices.

Parala

March 14, 2023

ESG and SRI factor sensitivities to the business cycle and differences across the most popular ETFs

In this article we take a look at some of the largest passive US and Global ESG and SRI ETFs with one or two additional ones included for variety.

Steven Goldin