Asset management models
Many aspects of asset management can be addressed using quantitative models. It is no surprise that asset managers increasingly employ models to measure potential returns, estimate risks and optimise portfolio allocations.
Ferra uses its own models for its own asset management, with efficient frontier type models helping with asset allocation, trading models assisting with timing and risk models used to determine hedges and avoid taking on too much risk. Statistical arbitrage models play a big role in hedging away some of the risk of directional trading in a portfolio..