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AI-READY FACTORS

Dive into AI Explainability and understand the key drivers influencing predictions

What are AI-Ready Factors?

“Factors” are specific pieces of data that are considered important in predicting asset returns.
AI-Ready Factors refer to factors that are already in a format that’s easy for an AI/ML model to understand and use. These factors have been selected or engineered to capture valuable financial insights that help predict outcomes like stock price movement.


How can we use the AI-Ready Factors for AI Explainability?

In many business applications, the explainability of a Machine Learning model is just as essential as its performance.
Therefore, we built our platform to natively support state-of-the-art techniques for AI explainability and to quantify the impact of each AI-ready factor on each prediction.

AI-READY FACTORS

We offer approximately 40 high-quality, normalised, and ready-to-use uncorrelated AI-Ready Factors, providing a robust toolset for data-driven decision-making. 
Our factors derive from set of features that contains:

TECHNICAL INDICATORS

Mathematical calculations based on a security or market's past price, volume, or open interest.

  
FUNDAMENTALS

 information related to the company's financial health and performance.

  
Volatility and options derived features

 Volatility refers to the degree of variation in a security's price over time. We also extract features from option contracts traded on the underlying assets that belong to the investment universe we cover with our predictions.
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MOMENTUM The rate at which a security's price changes. It's often measured over specific periods, and momentum strategies may look for securities that are moving significantly in one direction.  
MARKET DISPERSION Measures the difference between the best and worst-performing assets in a particular market or sector. High dispersion indicates a greater difference between top and bottom performers, which can be a sign of market uncertainty.  
SENTIMENT Analysis of news articles, financial reports, or social media to determine the overall sentiment or mood of investors regarding a particular security or market.  
Sector Performance How well the particular market sector of the asset (e.g., technology, finance, health care) is performing compared to others.  
Macroeconomic Indicators

Broader economic data that can influence financial markets, such as Interest Rates, Inflation Rates, Unemployment Rates, Gross Domestic Product (GDP) and Consumer Price Index (CPI).

  
USE CASES

Deep Insights

To identify and analyse the underlying factors driving asset performance, providing deeper insights into market behaviour and asset dynamics.

Strategic Allocation

Understanding the drivers behind performance aids in constructing portfolios aligned with prevailing market trends and economic conditions, enhancing the strategic asset allocation process.

Customised Strategies

Insights into what drives asset performance enable managers to tailor investment strategies to meet specific client needs and preferences, enhancing client satisfaction and retention.
WHY AXYON AI AI-READY FACTORS
Lower signal-to-noise ratioAxyon AI’s philosophy emphasises the importance of minimising signal-to-noise ratio in carefully curated and engineered datasets that capture relevant and uncorrelated market dynamics.
Built-In Data Robustness

Continuous refinement and optimisation of engineered factors maintain statistical robustness and relevance.

 
Comprehensive Market CoverageLeveraging Axyon AI's Factor Engineering capabilities empowers companies to access comprehensive market coverage, robust indicators, and differentiated solutions tailored to their specific needs.
Competitive EdgeBy focusing on carefully curated data sets (traditional & non-traditional) going back as far as the year 2000, advanced processes, and proprietary technology, Axyon AI provides a competitive edge in the rapidly evolving financial services landscape.