Omega Point and Alpha Theory are teaming up to provide insights to our mutual customers that combines Alpha Theory’s fundamental research sizing and Omega Point’s risk optimization. Once enabled, enjoy the seamless transfer of position and forecast data from AT into the Omega Point platform to superpower your alpha-generating workflows.
Enabling the Integration
To access the Alpha Theory application, visit the platform tab within your account’s home page.
After an initial configuration — including authenticating with your Alpha Theory credentials — customers can select which fund data to import into Omega Point.
For each selected fund, associated resources are generated in the Omega Point Resources screen.
Using Omega Point
Accessing this portfolio within Omega Point facilitates full factor analysis, attribution, and decomposition utilizing one of the risk models from the Data Cloud.
In addition, two automatically-generated experiments — which represent Alpha Theory’s optimal position sizing & an Omega Point Risk-Sized experiment — are available for side-by-side comparison with the original portfolio.
And as seen below in the side-by-side comparison between the original and experimental fund.
Using Alpha Theory
As a two-way integration, data that is available within Omega Point is now made available within Alpha Theory, including breaking down performance into its Specific and Factor performance contribution per-security.
Additionally, it is possible to display various exposure metrics related to each position, including:
Evaluating each position's net exposure contribution to each style factor
Each security's position in the market, as expressed by its style factor z-score
Taking advantage of Alpha Theory's Optimal Position Sizing to evaluate the exposure delta between the current portfolio and the portfolio based on the OPS
Finally, for OP enterprise customers, predicted risk metrics are also available within Alpha Theory, as presented by each position's risk contribution to the factor risk decomposition.
With the Alpha Theory + Omega Point Integration, mutual customers get to take advantage of two powerful systems, converting your fundamental research into smarter sizing decisions to boost performance!