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.
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