Quantifying Market Dislocations Across Asset Classes
Our robust cross-asset valuation engine reveals dislocations between macro fundamentals and market prices. By linking economic factors like GDP, inflation, and central bank expectations to asset movements, we identify when securities deviate from their macro-warranted values. This sophisticated approach processes vast datasets across 18,000+ securities, transforming complex relationships into clear signals for timing entry and exit points across equities, fixed income, FX, and commodities.
Spotting Market Dislocations in Real-Time
Our Macro Valuation Engine provides rigorous assessment of Fair Valuation Gaps, instantly identifying when securities detach from underlying macro fundamentals and creating actionable trade opportunities.
* In June, 10-year US Treasury yields declined as softer economic data fuelled recession concerns
* Our model's macro-warranted valuation remained solidly above 4.50%, signalling Treasuries were not an optimal recession hedge
* The market eventually confirmed our analysis as yields realigned with macro conditions, closing the valuation gap we had identified
Detecting Market Stress before Price Action
Significant drops in our model confidence metrics frequently precede spikes in market volatility. This relationship provides a valuable early warning system for investors.
* In March 2024, our model detected a critical warning pattern in market behavior
* The market continued rallying while simultaneously showing increased sensitivity to real yields and VIX
* This contradictory signal—bullish price action with growing stress indicators—raised red flags
* The subsequent 5% market correction validated our analysis
* This case study demonstrates how regime shifts typically manifest in our metrics before appearing in price action
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Benefits
Cross-Asset Opportunity Detection
Spot valuation dislocations between price and macro fair value across 18,000+ securities spanning multiple asset classes.
Trade Idea Generation
Discover data-driven signals identifying securities most likely to mean-revert to their macro-warranted values.
Integrated Factor Framework
Understand how the same macro factors influence different assets through a consistent analytical lens, enabling coherent cross-asset allocation.
Superior Timing Signals
Determine optimal entry and exit points based on quantifiable deviations from macro fair value rather than subjective judgment.
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