APT offers risk factor bases built on a mathematically proven methodology (Arbitrage Pricing Theory), using historical market data.
By ensuring that no arbitrary risk factors are included, the bases guarantee reliability and responsiveness.
Periodic updates of the databases enable automatic adjustment of risk factors to market movements, essential for producing accurate calculations and immediate interpretation of portfolio risks.
This allows you to respond more rapidly to risk attribution.
Relevant use of statistical theory also ensures room for extreme events in thick distribution tails.

The system allows you to choose the most appropriate basis for your investment universe, enabling the most accurate calculations. Over 50
multi-factor bases are available, by country, region, or globally, such as emerging markets or Arab markets.
Instruments covered include equities, bonds, currencies, indices, and more. Monte Carlo techniques can also be applied to derivatives and structured products.
Bases are produced in several currencies to enable risk calculations in the client’s reference currency, with the main currencies being EUR, USD, GBP, CHF, and YEN.

APT supplies two types of factor bases for assessing short-term,
medium-term and long-term risks:

• MTV (Medium Term Volatility) bases, monthly,
• STV (Short Term Volatility) bases, weekly.

STV bases are built on a 180-week observation period, like MTVs, but with exponential smoothing calibrated so that half of the volatility is explained by the last 13 weeks. The advantage of STV is that it gives short-term volatility estimates, more in line with observed instantaneous volatility, and also gives an immediate account of the impact of shocks to the market.