Source: Societe Generale Corporate & Investment Banking
Societe Generale Corporate & Investment Banking has launched its Relative Value algorithm, a participation-style strategy, which provides institutional investors with the ability to select a strategy that adjusts its participation to a stock's performance relative to an underlying index.
This unique product underlines the bank's innovative approach to providing investors with a diverse range of algorithms driven by short term price movements, ensuring they can trade safely and seek out opportunities in challenging markets. This allows clients to drive the participation based on the performance of the stock versus an underlying index or price point as well as specifying if any divergence is temporary or will continue. It provides the ability for clients to express their views on the stock and drive the model directly creating opportunities.
The core approach to algorithmic development has always leveraged the bank's cutting edge quantitative models to drive performance but is now moving this control to the client's desktop.
Relative Value algorithm serves as an alternative to a classic volume in line strategy with investors benefitting from a minimum and maximum participation strategy that will take advantage of fair value relative to a chosen index. The ability to specify a floating limit based on the stock price versus underlying index leverages the same concept and is now available on the full product suite.
The algorithm is available via most 3rd party trading platforms as well as via direct FIX connections.