Contact

No.
Qi complements traditional style factor models. While Axioma decomposes risk into style factors, Qi decomposes risk into macro factors. One can connect style and macro by using Qi to reveal the macro forces driving style and other thematic factors. Qi can also be used“side by side” with traditional equity fundamental factor models. It provides a macro lens to view your overall portfolio exposure and risk. Most clients use both. This dual approach provides deeper insights into portfolio behavior, especially during regime shifts.

‍

They complement each other within your risk process.
Use both for comprehensive risk intelligence. Style models identify your exposures to factors like value and momentum; Qi explains your portfolio in terms of macro factors. Qi can also show the macro drivers of style factors. For example, knowing your portfolio has high momentum exposure is valuable—understanding what macro conditions drive momentum's performance is transformative.

‍

Most clients integrate Qi through:
 A dedicated "Macro Risk" section showing factor sensitivities and
contributions
 Enhanced attribution that includes macro alongside traditional breakdowns
 Scenario analysis showing potential impacts from specific macro shifts
 Risk alerts when factor relationships deviate from historical patterns
We provide templates aligned with standard risk frameworks, ensuring seamless
integration without disrupting existing workflows.

‍

We use daily real GDP “Nowcasts” to give us a point-in-time real GDP estimate every day. These Nowcasts are econometric models that take in all the economic
data releases and update the most likely real GDP for the current quarter. There are Nowcasts for all major economies.

‍

‍

‍

Our selection process balances rigor with relevance:
 Economic significance (clear financial theory connection)
 Statistical validation (persistent explanatory power)
 Independence (minimal overlap between factors)
 Cross-asset relevance (explanatory power across markets)
 Stability analysis (predictive value across regimes)

‍