Key Objectives:
Using Macro Factor Risk Modelling (MFERM)

Every portfolio manager and risk officer faces the same fundamental challenge: are you being properly compensated for the macro risks embedded in your portfolio?

MFERM addresses this by mapping the macro DNA of each asset, exposing the hidden betas that traditional models miss—those subtle but significant exposures to interest rates, credit spreads, currency movements, and growth expectations that can quietly dominate returns during volatile periods.

Our framework decomposes performance with precision, clearly separating what portion stems from genuine alpha versus macro-driven factors. This isn't just academic analysis—it transforms guesswork into quantifiable insight, enabling risk teams to see previously hidden exposures and helping portfolio managers understand whether their outperformance reflects skill or simply being positioned correctly for the macro environment.

Watch video #3 in our Partnership series with Omega Point

Author
Qi Analytics Team

Related Articles

Macro Spotlight - China A Shares – Macro explains almost entirety of YTD returns
July 25, 2025
Qi Macro Risk

Macro Spotlight - China A Shares – Macro explains almost entirety of YTD returns

Macro Spotlight - Two Bond Signals Every Equity Investor Should Watch
July 23, 2025
Qi Macro Risk

Macro Spotlight - Two Bond Signals Every Equity Investor Should Watch

Macro Spotlight - Cracks Under the Surface
July 23, 2025
Qi Macro Risk

Macro Spotlight - Cracks Under the Surface

Macro Spotlight - The S&P500 in Q2: A Tale of Both Macro & Idio
July 4, 2025
Qi Macro Risk

Macro Spotlight - The S&P500 in Q2: A Tale of Both Macro & Idio