Archive for Month: Ιανουάριος

Investment strategy and style drift: Mind the gap?

What’s the difference between systematic and mechanistic processes in complex systems? When it comes to investments, this is how we define it at KlarityRisk: Systematic is a process dictated by principles of implementation (i.e. to provide guidelines that repeatedly conform with predetermined rules), applied in the same methodological way through time....

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Active vs. passive investing: Adversaries or allies?

The amount of research and press coverage about passive versus active investing has been unprecedented. If emerging investment flows are accounted for, the popular vote seems to be rather loud. Passive investments have been attracting a record-breaking amount of inflows, whilst active ones have been experiencing incremental outflows. It is not the purpose of our...

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Market lessons from Nobel Prize winners: Risk management & perceptions

Behavioral Sciences, as applied to humans, focus on the systematic analysis of the psychology of judgement and decision-making. Behavioral Economics, as applied to “the economic man” or ‘Econs’ examine how investors may diverge from being consistently rational and self-interestedagents, in an attempt to derive the greatest value possible from the least amount of...

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