Next-Generation AI identifies hazardous assets. And Companies.
Introducing the Universal Risk Shield™.
High Complexity - A New Form of Risk
Stocks interact as large, complex and dynamic networks, that change constantly. The nature and structure of this complexity should be known in order to better understand risk and volatility. This is because complexity is a hidden systemic form of risk.
A great way to understand complexity is to measure it.
In turbulence such intricate networks contain numerous hubs - concentrations of risk. In order to reduce the exposure of a portfolio, it is paramount to position oneself away from high-complexity assets.
Below the arrows indicate two potentially hazardous stocks that dominate the structure of the stock universe in their vicinity as well as risk.
The region around the hazardous stocks is not the best place from which to pick stocks.
See example of stock interaction network. The example is the FTSE 100. Large squares represent the hubs, i.e. high-complexity stocks.
The bottom line:
We don’t tell you which stocks to pick or how to build your portfolios - we tell you which stocks to avoid.
AI 2.0 For a New Correlation Science
Correlations play a central role not just in portfolio design or risk management. It is paramount to get them right. However, conventional linear correlations may deliver misleading results. This is because they cannot capture nonlinearities in data. Data very rarely has a linear look and feel or a gaussian distribution.
UR has developed a radically innovative generalized correlation, which takes into account nonlinear aspects of data. The method relies on a brand new next-generation AI technology which treats data as images, emulating an expert looking at it. The system actually sees correlations.
Data is analyzed by emulating the brain without the need to build math models.
The method has its roots in quantum physics, nonlinear mechanics and biology.
Based on this approach we determine the true structure of correlations and the Complexity Landscape of a universe of assets.
We offer the correlation of the 21st century. Over the last decade our generalized correlations have been tested and are being utilized in medicine, manufacturing, defence, air traffic management and Business Intelligence. in software and hardware solutions.
Science not opinions.
How It Works
The Universal Risk Shield is a Desktop tool which may be linked to any data source such as Bloomberg terminals, Reuters Eikon, etc. The tool identifies high complexity assets from investable universes. It also scans Balance Sheet identifying highly complex and fragile corporations. The Universal Risk Shield comprises two Apps.
Unsafe Asset Finder
The App can also be used to analyze the complexity makeup of indices - click on link below:
The second App is the Balance Sheet Scanner.