SimCorp has created its Axioma Worldwide Equity Factor Risk Model: Trading Horizon, which enables forecasts risk over a twenty-day period and provides daily updates on factor exposures for strategies requiring frequent rebalancing.
The new iteration of the finance technology giant’s analytics suite incorporates style factors such as short interest and opinion divergence to track liquidity and volatility across global markets.
SimCorp said the model’s release comes at a “critical time” after AI-related trades exaggerated momentum and liquidity risks and as trade spats are distorting currency movements.
“Markets are moving faster than ever, and traditional risk models often fail to capture short-term dynamics,” Ian Lumb, head of analytics product management, said at the launch.
Investors use the model as a leading indicator for rebalancing decisions and for understanding risk sources during volatile periods, Lumb added.
The software allows users to quantify exchange-rate sensitivity and monitor momentum to manage effects from tariff disputes or sector rotations. Equity factor risk models are mathematical tools used by financial institutions to identify and quantify the drivers of return and risk within stock portfolios.
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