Risk and Return Attribution

In order to get portfolios to certain targets, investors must know how much each of the asset classes and assets must contribute to the overall goal. With our risk and return attribution service, those investors can easily obtain in real time precise calculated results instead of doing complicated calculations themselves. By selecting an existing asset in a portfolio, investors can see how much revenue it is gaining and how much tail-risk it is contributing to the portfolio.

Our platform differs from others in that in addition to basic risk and return attribution, we take into account extreme events. Investors should be compensated for extreme risks that they have taken by investing in an asset with such characteristics, and our platform will identify that for them. In addition, our return attribution functionality will show if implied return is more than the historical choice, thus identifying an element as an ideal choice.

Investors’ jobs are made much easier by the risk and return attribution tool, as they can easily apply calculations to both risk and return spaces to immediately see how an asset performs and what is required to hit the target. Investors can use HedgeSPA’s services to both explain history and forward-looking scenarios and see how their assets perform, under the Historic and Current Scenarios in Analytics of the Selection Panel. The main question answered by this analytics tool is if the return produced is enough to justify the risk, and this will help investors improve their portfolios by selecting the best assets with the lowest risk and highest returns.