Partner insight: Using volatility to create advantages for investors

clock • 1 min read
Partner insight: Using volatility to create advantages for investors

Technology allowed Collidr to adapt its investment strategies when coronavirus hit, benefiting clients

Volatility has certain characteristics that means it can be forecast. Recognising the nature of volatility and how it changes allows for portfolios to be rebuilt, re-optimised and ready for implementation ahead of time.

Collidr's Adaptive Risk Exposure System (ARES) can understand the volatility regimes of over 200 asset classes, according to Symon Stickney, founder of Collidr.

"We combine these assets into groups that allow us to detect changes of regime," he says.

"Those changes can be a move from a high-volatility regime, for example, which can often be quite destructive for traditional asset classes such as equities, bonds and commodities, through into medium-volatility and onto low-volatility environments, which tend to be quite positive for growth assets"

When coronavirus first hit in 2020, Collidr's system alerted the team to a regime shift, which enabled them to implement the appropriate investment strategies for that new regime and navigate this period of market turbulence.

"Having this type of adaptive framework allows you to confidently move between states and increase the probability of success," says Stickney.

Used well, this type of technology can create small, incremental advantages that add up to strong performance over the long-term.

For more on how Collidr is using cutting-edge technology to improve outcomes for investors, read our exclusive guide

This post is sponsored by Collidr

More on Investment

Investors take group action against RL360 over collapsed funds

Investors take group action against RL360 over collapsed funds

Claim brought to Isle of Man to seek compensation for losses

Isabel Baxter
clock 27 March 2025 • 2 min read
Watch Professional Adviser's Working Lunch on Baillie Gifford's Scottish Mortgage trust - A World of Opportunities

Watch Professional Adviser's Working Lunch on Baillie Gifford's Scottish Mortgage trust - A World of Opportunities

Catch up on the discussion

Professional Adviser
clock 25 March 2025 • 1 min read
Other investing strategies are available: Performance chasing has served well despite risks

Other investing strategies are available: Performance chasing has served well despite risks

'Perhaps not surprisingly in such momentum-driven markets, performance chasing came out top'

Laith Khalaf
clock 24 March 2025 • 4 min read

In-depth

MPS movers: Why Quilter, Tatton, Waverton came out on top

MPS movers: Why Quilter, Tatton, Waverton came out on top

Less launches expected as industry has ‘seen the peak’

Isabel Baxter
clock 05 March 2025 • 5 min read
Driving change in advice: The importance of visible female leadership

Driving change in advice: The importance of visible female leadership

Leveraging International Women’s Day to boost awareness of financial planning careers

Sahar Nazir
clock 06 March 2025 • 6 min read
How FCA could tackle review of 'opaque' MPS market

How FCA could tackle review of 'opaque' MPS market

Target market an expected focus as propositions have ‘questions to answer’

Isabel Baxter
clock 03 March 2025 • 4 min read