In line with our management approach, we put at your disposal computerized trading models in order to realize
risk hedging or trading operations.
Developed by the R&D COMMORISK, our models are based on rules of highly strict risk management.
We offer standard or customized models if the standard frame does not fit with your requirements.
Performances of our model are first rate.
For the concerned asset, COMMORISK R&D pools different strategies in a portfolio according to the
complementarity of their response (trend following, contrarian …) and
management scope (Short, Medium or Long Term, cash burn, performance smoothing).
To ensure effective hedge when market rises (risk is materialized):
The market operator in « short » position should hedge his risk by purchasing; thus he faces an upside risk:
CPRM Buyer Portfolio should grow when prices go up.
To reduce losses when market falls (risk decreases or vanishes):
By short cutting unnecessary money consumption (Hedge reduced or cancelled), CPRM Portfolios minimize short fall:
CPRM Buyer Portfolio should avoid losing when prices go down.
NB: The Buyer Portfolio can not hold a net selling position …
It only provides selling tips in order to cancel a previous purchasing position
To ensure effective hedge when market falls (risk is materialized):
The market operator in « long » position should hedge his risk by selling; thus he faces a downside risk: CPRM Seller Portfolio should grow when prices go down.
To reduce losses when market rises (risk is decreasing or vanishes):
By short cutting unecessary money consumption (Hedge reduced or cancelled), CPRM Portfolios minimize short fall: CPRM Seller Portfolio should avoid losing when prices go up.
NB: The Buyer Portfolio can not hold a net buying position … It only provides selling tips in order to cancel a previous selling position.
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