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Leveraging artificial intelligence to help asset managers better grasp the complexity of financial markets and make informed investment decisions

Project description

AI-based decision support tool for investment professionals

With the increasing flow of information, it is impossible for a human to anticipate the impacts on the financial markets. The EU-funded Ai For Alpha project is presenting a solution based on the latest AI techniques to help make investment decisions. The model will analyse a large amount of data to anticipate market regime shifts and adjust asset allocation accordingly. Moreover, it will identify key market drivers through clear explanations to help managers make informed decisions. The consortium has already developed a proprietary technology to decode the positioning of sophisticated hedge funds and replicate their performance. Investment professionals will use Ai For Alpha to understand key market information and create investment strategies.

Objective

Ai For Alpha is a solution based on the latest artificial intelligence techniques to help investment professionals in their management decisions.

From our previous experiences in finance, we realised that information flows faster and faster and is sometimes contradictory. It is impossible as a human to analyse all these different signals at the same time to anticipate their impact on the markets.

Our vision is that today, in an increasingly complex world, the asset manager needs the machine to outperform his process. This is augmented intelligence. In our view, the machine will not replace the manager, it is a decision support tool.

We have developed a Deep Learning solution to help managers analyse the impact of a considerable quantity of market data (economic and financial data, changes in prices in commodities, currencies, volatility, credit spreads, etc.). Depending on market conditions, the model helps the manager to anticipate regime changes and adapt to the market environment in order to determine the best investment timing.

The significant advantage of our solution is that the manager can see which market information explains the regime expectations at any time. Unlike other AI models that are often black boxes, the manager here understands the model's decisions and has a better understanding of the market's drivers.

The solution has been validated by Société Générale's research teams. SG uses it to propose innovative investment solutions to their clients.
The solution is also deployed for a French asset management company (Homa Capital). Ai For Alpha has calibrated its equity strategy to anticipate regime crises in the different markets and adapt its asset allocation according to market conditions.

Our objective now is to scale our solution and develop it for other clients.

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Keywords

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Programme(s)

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Topic(s)

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Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

HORIZON-CSA - HORIZON Coordination and Support Actions

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Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

(opens in new window) HORIZON-EIE-2022-SCALEUP-02

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Coordinator

A.I. FOR ALPHA
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 75 000,00
Address
35 BOULEVARD D INKERMANN
92200 Neuilly-Sur-Seine
France

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Region
Ile-de-France Ile-de-France Hauts-de-Seine
Activity type
Private for-profit entities (excluding Higher or Secondary Education Establishments)
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

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