The Intertek Group

Consulting

Today's equity modeler faces new challenges (see What Can Quants Do Now?). Not only have markets lost a significant fraction of their value, their behavior has become more volatile. Factors and predictors now loose their explanatory and predictive power more rapidly. Correlation structures change more frequently and more significantly,  challenging asset allocation, portfolio construction, and risk management. In today's environment, modelers will need a new set of tools to analyze the behavior of stock prices and returns.

The Intertek Group provides consulting to help firms implement financial modeling. We combine on-site training and model development to allow clients to develop their specific competitive edge.

If you are considering outsourcing some tasks of model development or of the R&D activity, The Intertek Group can provide a cost-effective, innovative, state-of-the art solution in the following areas:

Ø       Dynamic factor models, able to capture specific aspects of market forecastability. The family of dynamic models includes models that capture factors, regimes, or short-term fluctuations and long-term equilibrium relationships

Ø       Non-linear models based on clustering to define sector factor models based on true similarities between returns processes

Ø       Methods based on the noise-to-signal ratio and random matrix theory for the optimal selection of factors and/or factor models

Ø       Robust methods, including techniques for robust estimation and model risk mitigation.

To discuss a consulting project or to obtain a quote for model development or R&D, contact Sergio Focardi (Tel: +33 1/ 45 75 51 74; cell: +39 348/530 85 28; email: sfocardi@theintertekgroup.com).