24 February 2018
Visit www.capgemini.com/worldreports

RiskMetrics maps out financial volatility

15 March 2002  |  2967 views  |  0 RiskMetrics maps out financial volatility

RiskMetrics Group has developed a new visualisation tool for mapping risk hot spots across the S&P index and Nasdaq 100 financial markets.

Arranged by market cap and stock price volatility, the Risk Map of the Market is color-coded to depict the different ranges of stock price volatility. The most volatile stocks appear as red boxes while the least volatile stocks are represented by blue boxes. Likewise, stocks with the largest market caps are arranged on the left-hand side of the chart, moving gradually to the right-hand side of the chart as market caps get smaller.

When a user scrolls his mouse over each box, he receives a risk synopsis of that stock, including its RiskGrade measure - scale of zero to 1000 of volatility; its Xloss, a measure of the amount an investor could potentially lose on a bad trading day based on an average of the stock's worst trading days; and the RiskImpact of that stock on the rest of the holdings in the index.

"Transparency is the key to building investor confidence," says Michael Thompson, RiskMetrics Group market strategist. "The Risk Map of the Market is the quickest way for investors to get a comprehensive picture of the risk of those stocks that make up their investment portfolios," he says.

The tool can be delivered as both a stand alone module and as part of RiskMetrics' new investment management platform, WealthBench.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Consumers wise up to pensions with RiskMetrics

Consumers wise up to pensions with RiskMetrics

14 February 2002  |  2618 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.vasco.comVisit http://info.nice.comvisit www.ebaday.com

Top topics

Most viewed Most shared
Ripple makes new connections to emerging marketsRipple makes new connections to emerging m...
11773 views comments | 16 tweets | 10 linkedin
hands typing furiouslySome Interesting Applications Of The Inter...
10319 views 3 | 9 tweets | 1 linkedin
Basel Committee outlines disruptive fintech scenariosBasel Committee outlines disruptive fintec...
8546 views comments | 15 tweets | 26 linkedin
Investment Association sets up fintech accelerator for asset managersInvestment Association sets up fintech acc...
8074 views comments | 19 tweets | 10 linkedin
R3 creates Legal Centre of Excellence for blockchain technolgyR3 creates Legal Centre of Excellence for...
7762 views comments | 10 tweets | 14 linkedin

Featured job

Find your next job