Axioma Risk Models

Axioma innovations transformed the risk model space. With fundamental and statistical variants for country, region and global models, at varying time horizons, along with macroeconomic models—all updated daily—you get multiple views of risk on a timely basis. Plus, our patented, innovative methodologies and model transparency add value and confidence to your risk reporting.

  • Axioma is the industry leader in timeliness of risk models. From the beginning, all Axioma models have always been estimated and updated on a daily basis for all model geographies
  • Rely on daily updates to all models, with re-estimation and production of factor exposures, covariance matrices and asset-specific risks
  • Use the model geographies suited to your strategies—Global, Emerging Market, Europe, Asia, and numerous single country markets
  • For each model geography, have access to multiple views of risk, all updated daily—the most comprehensive and valuable suite of risk models available on the market
  • Fundamental Models allow you to understand and decompose the risk and return of portfolios into intuitive factors
  • Statistical models provide an alternative view on risk and a framework which may pick up sources of risk not fully captured by a fundamental risk model
  • Macroeconomic models as available in some regions, allowing you to understand the sensitivities to key economic factors for stress testing analysis
  • No black boxes—Axioma provides complete model transparency, enabling you to better understand and manage your risk
  • All Axioma models are consistent with industry standards (GICS)
  • Advanced innovative methods such as the Dynamic Volatility Adjustment which improve the accuracy of risk forecasts, especially during times of volatility changes
  • Direct integration of the Axioma's industry leading optimization tools, allowing you to use multiple risk models simultaneously in portfolio construction

Axioma's Risk Model Suite: Innovations that Help You Meet the Challenges of Today's Volatile and Complex Markets

Unlike any other offering on the market, Axioma's suite of Robust Risk Models provides both fundamental and statistical factor models and macroeconomic models, with all components updated on a daily basis.

Axioma's Macroeconomic Model: Insights Into Equity Portfolios from a New Perspective

Axioma’s macroeconomic‐based model provides a way to measure and manage financial risk in a U.S. portfolio by considering macroeconomic variables and events.

The Signpost Up Ahead: Risk Danger Zones - What Multiple Risk Models Can Tell Us about Future Drawdowns

Axioma's researchers show that predictions using multiple risk models can potentially identify “danger zones” associated with future market drops. We use two risk metrics – average predicted risk and the maximum difference between Axioma’s four risk model predictions – to identify conditions when the maximum, forward, 90-day drawdown has been significant.

How to Evaluate a Risk Model

Risk model providers commonly report the average R2 value of the asset returns model. Some models, such as statistical models, will consistently have greater R2 values than others. However, strong explanatory power from a returns model does not necessarily translate into an accurate risk model. The ultimate test of risk model lies in the testing of its risk forecast against realized value.

Find out more about how Axioma Risk Models can help you. Contact us at or call us:
North America: +1-212-991-4500
Europe: +44-(0)20-7856-2424
Asia: +852-8203-2790 
We look forward to hearing from you.