Optimal diversification of a retail portfolio

As risk management comes to the force and capital adequacy becomes more of a concern companies find themselves needing to know correlations within their portfolios so they can distribute capital across assets in the most sensible way.

Corporation-level risk management involves correlation of processes within business units. Possible gains from correct diversification must be known. An intelligent distribution will decrease capital demands and make for flexible pricing.

RRAS can give a detailed and analytically sound assessment of likely diversification payout for the current and future portfolios, whether it is mortgage or auto loans, credit cards, consumer credit, microcredit etc.

The software detects correlations within a portfolio and possible diversification venues across all assets.

The key idea behind correlation search is to use RRAS to detect a portfolio’s main driving forces, then use regular statistical methods to in order to estimate the mutual correlation. BSC’s specialists have a great deal of experience in this field. Contact us, and we will find a solution that will let your business achieve new efficiency heights.