Portfolio Trading Optimization. Reducing risk. Enhancing precision.
Whether you trade simple pairs or complex baskets, you need sophisticated models and precise portfolio analytics. That’s the benefit of Instinct® Portfolio, which continually evaluates and models granular trading details to determine how risk, correlations and cost evolve over the course of a day and across regions.
*This information is not attributed to any one particular firm, but is instead based on general market knowledge of the range of portfolio tools within the industry offering features ranging from blunt macro methodologies to highly precise and customizable algorithms.
Benefiting multiple trading objectives
Instinct Portfolio can benefit a broad range of clients and trading objectives, including:
- Large institutions, such as pension funds and insurance companies, which typically have low risk tolerance and seek accurate measurements for better informed portfolio construction and a globally balanced approach
- Traditional long/short hedge funds that seek to optimize daily pairs trading and mini-baskets
- Quant funds that may trade single stocks, pairs and/or portfolios, and require customized approaches and execution that account for their alpha objectives
Instinct Portfolio features
Complete suite of trading capabilities supports Instinct Portfolio including:
- Pre-trade analytics provide information on style and sector risk, in addition to constituent detail on risk contribution and expected impact
- BofAML algorithms are utilized for portfolio execution, including the Instinct Strategies
Reducing risk and minimizing trade costs
As an example, BofAML has seen risk reduction and minimized trade costs in a $150 million market-neutral trade versus other trading strategies
Total slippage of 100 long/short trades
BofAML desks have seen improved cumulative performance of trades versus arrival