PreCog

PreCog provides a powerful and unique source of alpha that can assist a longer-horizon investor in timing their entry or exit points of trades based on a next generation set of predictive models powered by advanced statistics and supervised machine learning algorithms.

PreCog

PreCog is Alpha Vertex’s global stock selection model, which aims to predict short-term alpha from one week to one month. The production model includes the top 3,000 US equities; research is underway for Western Europe and developed Asian markets.

Inputs into the PreCog model comprise over 100 factors from Alpha Vertex’s factor library consisting of mostly alternative or unconventional signals. The PreCog model structure is purely systematic and when new factors are added to the factor library, a selection algorithm can automatically assess whether any of them should join the model.

PreCog pairs with our Alta product, which provides high quality investment signals from complex and unstructured data such as earnings calls, conference calls, news releases, investor presentations and product announcements. When used together, both products provide a powerful advantage in the market.

PreCog, based on a next generation set of predictive models powered by advanced statistics and supervised machine learning algorithms, provides a powerful and unique source of alpha that can assist a longer-horizon investor in timing their entry or exit points.

It also serves as a tool that can be used in combination with existing systematic or qualitative strategies with similar holding periods.

PreCog delivers strong forecasting capability even during volatile periods

Consistent performance across large samples of portfolios

Models are recalibrated to changing market conditions and incorporate a wide range of alternative and traditional datasets