Scenario Generator
Generate forward looking scenarios for investment portfolios and calculate chances of reaching various investment goals.
Stress Testing
See how a portfolio reacts when a specific risk factor shows a significant jump. E.g. what happens if stock markets crash? Or if inflation spirals out of control?
We Help You Visualize Uncertainty
Investing comes with uncertainty. Risks in absolute sense, such as daily volatility with the possibility of market crashes, as well as risk in relative sense, such as not being able to reach investment goals, a retirement income or a return objective. The Finbotx scenario generator helps you to quantify these risks. Our scenario generator belongs to the most advanced scenario generators for wealth management currently available, taking into account the non-normality of asset returns, sudden market jumps and shifts in correlations. Our collaboration with the VU University in Amsterdam ensures the latest academic insights are incorporated in our models.
Flexible API-only Service
Finbotx provides cutting edge and fully cloud/API based quantitative models in order to visualize and quantify both absolute and relative investment risks. As an API only service we offer full flexibility as to how you would like to present the results in your application. Have a look at our samples and user cases to get some inspiration on how to integrate Finbotx functionality in your own application!
With a scenario generator you can show clients forward projected paths of investment portfolios, enabling clients to see the likely range of potential values of an investment portfolio. These scenarios can also be used to calculate the likelihood of achieving investment goals and show various risk metrics.
Example:
Current Investment: EUR 500,000
Desired income: EUR 24,000 p.a.
Starting: 20 yrs from now
Duration: 20 yrs
Select risk profile:
Expected End Values (50yrs)
| Expected Scenario | |
| Good Scenario | |
| Bad scenario | |
| Average Shortfall |
Chance of reaching Income Goal
Expected End Values (50yrs)
| Expected Scenario | |
| Good Scenario | |
| Bad scenario | |
| Average Shortfall |
Chance of reaching Income Goal
One can use the stress testing module to show how a portfolio would react to hypothetical scenarios. Finbotx enables you to define various stress scenarios to show to users of your application. For example:
Q: What would happen to my portfolio if 5 yrs from now European equity prices drop by 20%?
Current Investment: EUR 500,000
Desired income: EUR 24,000 p.a.
Starting: 20 yrs from now
Duration: 20 yrs
Select risk profile:
In order to provide clients insight in the risks of their portfolios, one can use the Finbotx back testing module to show how historical events would have impacted the client’s portfolio. These historical scenarios can also be projected forward in the scenario cloud, so one can also show what would happen to a portfolio and the corresponding investment goals should there be another credit crisis (for example) 2 years from now.
Q: How would my portfolio have performed during the Credit Crunch?
Investment: EUR 500,000
Investment start: 01 Jul 2007
Select risk profile:
Statistics
| Max Draw Down | |
| Highest point at | |
| Lowest Point at | |
| Recovered on | |
| Years to Recover |
Q: How much do I need to invest now in order to have a lump sum of EUR111k 30yrs from now?
Q: How much do I need to invest now in order to have a lump sum of EUR111k 8 yrs from now?
With the deposit calculation functionality you can calculate how much you would need to invest in a certain portfolio, to reach a goal in the future with a given probability. If a median certainty (i.e. 50/50) is not certain enough to reach an important investment goal, users can increase the certainty to see what the impact is on the investment needed today.
