State Street Corporation (STT) has launched GX Investment Labs, its newest initiative and suite of interactive applications, which can be utilized by clients to construct and facilitate their investment process.
Back in October, State Street’s FX Connect, its multi-bank foreign exchange platform was integrated in a partnership with ITG Triton’s execution management system, which targeted a Q1 date for institutional clients.
In particular, GX Investment Labs will encompass three new comprehensive portals, each of which targets a specific area of focus, i.e. dynamic risk management, liquidity modeling and asset allocation. GX Risk Lab, Liquidity Lab and Portfolio Lab are all slated to be launched throughout 2015, with the prospect of additional labs already in the pipeline.
GX Risk Lab
Risk Lab allows clients to create, analyze and monitor risk indices on a daily basis, utilizing such tools as absorption ratios, centrality, turbulence, volatility and correlation surprises. An added utility to Risk Lab is the ability to measure a portfolio’s intrinsic risk and performance or applied to specific scenarios and markets via customized stress test scenarios, event studies and dynamic filter rules.
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GX Liquidity Lab
In addition, Liquidity Lab is a lucid simulation environment that enables investors to estimate the return and risk associated with the ways they trade and allocate liquidity. Moreover, simulations can model regime-switching dynamics, specific rebalancing rules, and potential capital call distributions.
GX Portfolio Lab
Finally, Portfolio Lab constitutes a toolkit that envelops multiple optimization algorithms and risk budgeting tools. Clients can also identify optimal asset allocations given specific preferences and capital market assumptions, control for benchmark-relative risk and non-normal return distributions and analyze within-horizon risk distributions.
According to Will Kinlaw, Senior Managing Director and Head of Research and Investment Strategies at State Street Global Exchange, in a statement on the launch, “Investors need tools that can analyze their portfolios across multiple asset classes, investment regimes, and allocations. GX Investment Labs convert our most widely followed research ideas into practical and interactive tools that help our clients apply them to their portfolios.”