Axioma Risk Model Machine

Custom risk models enable you to build better portfolios and to gauge more accurately the performance and risks of your investment approach. Period. Axioma Risk Model Machine gives you the power to build risk models tailored for your firm by combining Axioma’s research and our exhaustively tested model engine with the unique insights of your organization.

  • Improve the accuracy of portfolio-risk forecasts with models that are tailored to your investment process
  • Construct more efficient portfolios by allocating risk to those factors you believe will outperform
  • Better understand and communicate—both internally and externally—what is driving portfolio returns
  • Prevent unintended risk-taking by focusing on risk specific to your investable universe
  • For fundamental models, select any combination of “style” factors you wish, choosing from Axioma’s factor library, a third-party provider or your own proprietary factors
  • Choose your industries, using Axioma’s GICS-based classification or your own
  • Define the estimation universe to any set of assets or market cap
  • Road test and refine your custom risk models before you deploy to assess the quality of your models
  • Incorporate custom risk models into your production and research workflows—all of Axioma’s portfolio-management tools integrate fully with the models you build
  • Build your custom risk models with confidence, using Axioma’s thoroughly time-tested algorithms

Axioma Risk Model Machine: Customizable Risk Models Tailored to Your Investment Process

Custom risk models built with Axioma Risk Model Machine (RMM) enable clients to achieve enhanced results because the models are tailored to the client’s own investment process. RMM is a flexible, powerful and easy-to-use tool that provides users with a competitive edge in risk forecasting, portfolio construction, performance attribution and alpha research.

Axioma Portfolio Analytics: An Integrated View of Your Portfolio's Risk and Return

Axioma Portfolio Analytics provides time-series risk analysis, stress testing, and both traditional Brinson and factor-based performance attribution, fully integrated with Axioma's fundamental, statistical and macroeconomic risk models as well as custom risk models built with the Axioma Risk Model Machine.

Aligning Alpha and Risk Factors: A Panacea to Factor Alignment Problems?

The practical issues that arise due to the interaction between three principal players in any quantitative strategy, namely, the alpha model, the risk model and the constraints are collectively referred to as Factor Alignment Problems (FAP).  Axioma researchers provide theoretical guidance to clarify the role of constraints in influencing FAP and illustrate how Axioma’s Alpha Alignment Factor (AAF) methodology can handle misalignment resulting from constraints.

Find out more about how Axioma Risk Model Machine can help you. Contact us at or call us:
North America: +1-212-991-4500
Europe: +44-203-621-8241
Asia: +852-8203-2790 
We look forward to hearing from you.