The powerful allocation tool serves the general investor audience seeking a risk indicator with predictive signals
Qraft Technologies, a leading AI-driven, invest-tech company, announces the U.S. launch of the Qraft AI Risk Indicator. Powered by Qraft’s proprietary artificial intelligence (AI) models, the AI Risk Indicator forecasts risk in the U.S. equity market for the upcoming week. The indicator provides direction to help actively position portfolios for expected risk using an easy-to-interpret scoring methodology.
“Investors today are faced with unprecedented levels of uncertainty in financial markets,” says Marcus Kim, founder and CEO of Qraft Technologies. “We developed the Qraft AI Risk Indicator to act as a compass for equity allocation amid volatility. Our AI solutions rapidly streamline and process vast amounts of data, delivering a timely and accurate risk prediction that surpasses the limitations of traditional asset management. We’re pleased to be at the forefront of these technological executions with the launch of this indicator.”
Popular market indicators provide little actionable insight to help investors navigate volatile markets. The Qraft AI Risk Indicator, however, provides a weekly assessment of expected market risk via a numerical signal that can be aligned to an equity/cash allocation:
- Risk On: The indicator forecasts low risk in the coming week, suggesting now is an opportune time to take on risk in the portfolio. Risk On scores range from no cash up to 14% cash allocation, with the balance in equities.
- Cautious: The indicator forecasts median risk in the coming week, suggesting heightened vigilance. Cautious scores range from 15% to 49% cash allocation, with the balance in equities.
- Risk Off: The indicator forecasts high risk in the coming week, suggesting now is an opportune time to take off risk in the portfolio. Risk Off scores range from 50% to 100% cash allocation, with the balance in equities.
The Qraft AI Risk Indicator uses machine-learning techniques to absorb, analyze and process a wide range of macro and market data in real time, with the AI predicting the risk environment in a manner that is instant, automatic and actionable.
The model, available weekly via Qraft’s webpage, was derived from an indicator originally developed by Qraft in 2019 for an institutional investor in Korea. Since then, the model has provided accurate risk predictions, allowing the client to proactively hedge amid the COVID-19 drawdown experienced in 2020 as well as the market downturn earlier this year. Importantly, the model clearly quantifies when to re-enter risky assets, which can assist in upside participation when markets rebound. A similar model, the Boom & Shock Index, is published weekly in Korea in partnership with the MK Business Daily.
“Qraft remains on the cutting edge of AI technologies for the financial industry,” says Francis Oh, Qraft Technologies APAC CEO. “For investors seeking direction in uncertain markets, AI-powered products offer heightened efficacy and guidance. The launch of the indicator in the U.S. is another step forward for our firm in establishing leadership in this space, demonstrating our ability to meet the changing needs of investors, and democratizing artificial intelligence for every investor.”
Qraft is an invest-tech company aiming to drive growth in the asset management industry through its innovations in artificial intelligence (AI) and investing. Qraft has four AI ETFs listed on the NYSE (tickers: QRFT, AMOM, HDIV, NVQ) and offers other investment solutions, including a robo advisory solution and an AI order-execution system. From data processing to alpha research and portfolio execution, Qraft has established a successful track record in developing innovative AI solutions that have been adopted by major financial institutions and turned into successful AI products and services.
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Gregory FCA for Qraft