Portfolio Management & Risk

Portfolios that understand risk

Black-box models can't explain drawdowns or adapt to regime changes. Causify builds causal portfolios that trace risk to its drivers and respond to market shifts automatically.

The portfolio problem

Portfolio managers face relentless pressure: deliver returns, control risk, and explain every decision to committees and regulators. Traditional factor models and ML strategies work until they don't—and when they break, no one knows why.

Black-box models can't explain which risk drivers caused a drawdown or how a portfolio would perform under counterfactual scenarios. Managers can't defend their positions or adapt quickly to market regime shifts.

How Causify helps

Causify constructs causal models of portfolio risk, connecting asset returns to fundamental drivers: macro conditions, sector dynamics, liquidity, and sentiment. You see which factors causally drive performance, not just what correlates.

Managers can stress-test portfolios under counterfactual scenarios, identify hidden risk concentrations, and explain decisions to risk committees with full audit trails. When regimes shift, causal models adapt automatically.

25%+
Better risk-adjusted returns
40%
Faster regime adaptation
100%
Explainable to committees

How it works

1

Integrate market data

Connect returns, risk factors, macro indicators, and alternative data to build a comprehensive view.

2

Discover causal drivers

Causify identifies which factors causally drive portfolio risk and return, not just correlations.

3

Construct causal portfolios

Optimize portfolios using causal models that adapt to regime changes and capture non-linear dynamics.

4

Stress-test & explain

Simulate counterfactual scenarios and explain every position to risk committees with audit trails.

Introducing Optima

Our dedicated capital markets platform combines causal portfolio construction with regime-aware risk management. Learn more about Optima's advanced capabilities for quantitative strategies.

Explore Optima

Build better portfolios with causal AI

Talk to our team about causal portfolio management and risk analytics.