Risk Normalization & Alpha Tracking
Compare risk across asset classes on one scale, and see where excess return actually comes from.
The problem. A credit position and an equity pair are measured in different units, so PMs and Risk struggle to compare them. Excess return is reported by book, which hides which investments earn their risk.
What we do.
- Normalize: put risk across asset classes on a common basis, such as beta, volatility, or margin.
- Attribute: track excess return at the individual investment level against the normalized risk it consumed.
- Report: deliver recurring views tailored to PMs, Risk, and investment committees.
What it unlocks. Grounded conversations about risk budgets and risk monetization. Capital moves toward the investments that earn it.
Who it's for. Asset managers where Risk and PMs need a shared language.