Touching the sky with high alpha rates in 2022
Since we learned that our intelligent stock rating tool is going to be a game changer for banks, investment houses, and financial institutions, we have prided ourselves on our commitment to providing superior equity analysis that boosts stock portfolio performance.
Now, we’ve got the data to support our assessments - here is one of the most important analytics of our success: our index alpha rates!
Our success in numbers
We are pleased to announce that our success rates have reached new highs for 2022:
The most high-achieving excess return is at the "Deshe Strong Buys" universe at B3.
As you can see, our universe has achieved an excess return of 9.5%, thanks to an average positive return of 4.4% in our strong buy-rated B3 listed equities.
These numbers reflect our technology’s significance, especially when markets are not covered to the maximum.
Our ability to identify important data and help investors overcome language barriers using our NLG (Natural Language Generation) engine allows them to achieve intelligent insights based on fundamental analysis of local companies.
Strategies that work in even the most "efficient markets"
Even in the most efficient markets, such as the US in general and the S&P500 in particular, our investment strategies were able to deliver significant excess returns.
For example, as part of a collaboration with Collective2, two of our main investment strategies, which focus on 20 of the prominent S&P500 and SPYD (companies with high dividend rates) stocks, provided high excess returns.
The strategy in which we selected stocks out of the S&P500, produced a positive return of 3.10%, while the ETF provided a negative return of -11.52%, with an excess return of 14.62%.
Other than that, the strategy in which we selected stocks out of the SPYD, yielded a positive return of 8%, while the ETF provided a negative return of -8.02%, with an excess return of 16.02%.
Increasing alpha rates in volatile stock markets
Increasing success rates in volatile stock markets can be a difficult task. This is because volatile markets can often lead to sudden changes in stock prices. These changes can be difficult to predict and can result in losses if the investor is not careful.
In order to increase alpha rates in volatile stock markets, investment advisors and portfolio managers must be able to identify investments that have the potential to outperform the market. This requires extensive research and a thorough understanding of the market.
Fortunately, our AI-based research tool makes it possible for us to identify and analyze stocks that are likely to outperform the market in the near future. Even during turbulent times, this unbiased technology assists our customers in increasing alpha rates.
AI-based recommendations as a second opinion for investment professionals
AI-based research and analytics can be beneficial for investment professionals as they get a second opinion on their decisions. Those systems are able to analyze large amounts of data quickly and provide insights that may not be immediately visible to humans. This can help investment advisors and portfolio managers make more informed decisions.
Our AI-based research tool analyzes all 44,000 global stocks while comparing all companies to their peers in the relevant sectors, and evaluating their ability to outperform or underperform in comparison to other players in the market.
This capability enabled us to strategize and build stock universes with high excess returns.
To find out more about our AI-based research and how it can increase your alpha rates and generate excess returns, subscribe to our newsletter. We look forward to helping you make knowledgeable decisions and maximize your returns.