Quantitative Research

Research, optimize, and simulate portfolios on one platform.

Construct Portfolios that Generate Alpha

FactSet’s integrated tools for quantitative research take you from idea to construction and beyond. In one system, you can find original insights in unique data, identify winning investment opportunities, translate a stock selection framework into an investable portfolio, build an optimal portfolio that harnesses the strength of that model, and examine and evaluate the strengths and weaknesses of the product.

construct portfolios that generate alpha
Quantitative Research
    research investment ideas

    Research investment ideas.

    Translate fundamental research ideas into changes in your active portfolio tilts to identify relationships between variables and subsequent returns for a universe of securities. Use our portfolio simulation tools to test ideas and construct and rebalance more realistic portfolios with buy/sell rules and trading constraints.

     

    Portfolio Simulation

    MOVING FROM RESEARCH TO CONSTRUCTION AND BEYOND

    Download our white paper to see how a systematic approach to constructing portfolios can improve your ability to realize the potential of your stock selection process and generate excess return.

    find the factors that drive performance

    Find the factors that drive performance.

    Quickly test theories about which factors drive performance with quantitative backtesting models that integrate your data with the data sources available on FactSet. Using the quantitative or qualitative factors you identify, FactSet calculates subsequent returns for each fractile, the entire universe, and the selected benchmark in easy-to-understand reports that help you identify factors correlated with excess returns. 

    Additionally, DataRobot on FactSet integrates advanced automated machine learning technology allowing you to build, deploy, monitor, and manage sophisticated machine learning models quickly and easily. Be confident in your results thanks to FactSet’s extensive symbology mappings that provide extensive historical data in your backtests.

    Backtesting
    identify signals of alpha and risk

    Identify signals of alpha and risk.

    Identify sources of alpha by evaluating characteristics’ correlation to returns then highlight results through flexible charts and reports that demonstrate your value to the front office. Create stress tests to shock your portfolio under extreme market conditions allowing you to identify and hedge against vulnerabilities.

    Characteristics Analysis
    construct optimal portfolios

    Construct optimal portfolios.

    With a breadth of risk models from FactSet and leading providers, use our integrated optimizer tools to set portfolio constraints and generate the trades necessary to construct an optimal portfolio and risk-return tradeoff. Match your strategy with limits on sector weights, asset weights, turnover, and other metrics so your optimal portfolio is sure to comply with fund mandates. Once you have the portfolio, share it with other FactSet applications for more analysis or export the results to communicate with other teams.
    Portfolio Optimization
    quantitative research evaluate new datasets

    Instantly evaluate new datasets.

    Explore and evaluate new ideas faster with FactSet Data Exploration. Combining the power of the cloud with the content of the Open:FactSet Marketplace, the cloud-based environment allows you to begin evaluating new alternative and financial datasets without IT implementation or adding costly infrastructure. Instantly interact with data from the Marketplace in a fully hosted environment that includes industry standard databases, programming languages (Python and R), and data visualization tools. Easily implement your content into a secure instance of your database or download content as if the server is on your own network, while reducing hardware costs and maintenance with FactSet Managed Database Service.

    Data Exploration
    Analytics & Data_Quantitative Research_Data Robot

    Access powerful machine learning tools.

    DataRobot on FactSet integrates automated machine learning technology into the FactSet workstation, allowing you to build, deploy, monitor, and manage sophisticated machine learning models quickly and easily. Access hundreds of powerful open source machine learning algorithms to create predictive, automated AI applications for factors such as equity volatility, bond performance, and macroeconomic event predictions.

    With FactSet and DataRobot together, you can scale AI- and data-driven investment strategies, access industry-leading core and unique content, operationalize research creation and alpha signal management, all with support from world-class data science professionals.

    DataRobot

    Talk To Us

    The best way to understand what makes FactSet different is to see it for yourself. We've worked with investment professionals for 40 years, so we understand your workflow and know precisely how to help. Talk to us about your challenges, and we’ll help you design the most effective solutions for your firm with everything you need — and not what you don’t.

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