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.
Fields of science
Keywords
Programme(s)
- HORIZON.3.2 - European innovation ecosystems Main Programme
Funding Scheme
HORIZON-CSA - HORIZON Coordination and Support ActionsCoordinator
92200 NEUILLY-SUR-SEINE
France