We Have a Stress Test App–Check It Out
The Stress Test App is the latest addition to the current collection of customizable apps available in the Imagine Marketplace. Similar to the other simulation tools in Imagine, the Stress Test App uses archived data to stress current portfolios and generate robust historical simulations that estimate how a portfolio would perform under documented periods of extreme risk volatility.
The Stress Test App provides value-added features on top of regular historical stress testing abilities: advanced control over your inputs coupled with the ability to analyze your output in great detail. The App:
- creates output that clearly explains the variables used to calculate the theoretical values
- offers greater user-control over the logic and defaults to generate simulations
Additionally, a companion dashboard provides at-a-glance simple views that clearly identifies a portfolio’s strengths and vulnerabilities under a pre-defined stress scenarios.
If a firm does not have all of its positions modeled on the same risk platform, it cannot know its total risk. But strong tools and practices can help sell-side and buy-side firms alike to avoid creating dangerous conditions.
Broker-dealers understand the importance of producing accurate margin calculations for their clients’ accounts, but they need to know more than just how much margin each client must post; they need to know why the margin system came up with a given result.