Greek Risk Management

The Greeks

Investing risks can be influenced by a number of factors, and these factors can either help or hurt our investment, depending on the type of our investment positions they have established.

To become a successful investor, it is essential to understand what factors influence our investment, which requires learning about the so-called "Greek Risk Measures" - a set of risk measures, DELTA, THETA, VEGA and GAMMA, that indicate how exposed our investment position is to time-value decay, implied volatility and changes in the underlying price.

AirU Alternative Position-Sizing System (AAPSS)

In the stock markets, we all know, determining the proper position size before a trade can have a very positive impact on our trading results. And also, a proper position size always comes from a good Risks-Sizing System. Here, we are proud of saying that AirU have developed a Risks-Sizing System to optimize an appropriate position size as facing these risks in these markets.

Integrative Matrix-Analysis

By integrating quantitative and fundamental analysis, called as Integrative Process, we have developed our very high frequency algorithm process that makes sense in theory and in practice, and according to matrix-analysis with over than 2,800 stocks, such as large/mid/small cap, growth prospects, alpha trends, market multiples …and various variables.

Both long-term investment results and performance attribution have proven our approach to be successful. The inherent strength of our process, and its consistent application over time, has led to winning new mandates as well as significant allocations of additional assets.


In generally, an equity market-neutral strategy should wipe off market delta risk, and generate absolute returns, while being largely independent of the market’s performance.

Investing in Relationships

An equity market-neutral strategy seeks to generate returns by exploiting equity market inefficiencies, and involves simultaneously holding long and short equity portfolios of approximately the same delta amount. Such as, trades involve buying attractive stocks, the long portion of the portfolio, and selling unattractive stocks, the short portion of the portfolio, and the spread between the performance of the longs and the shorts provides the primary return for this strategy.

Approaches to Equity Market-Neutral

In markets, there are two basic approaches to equity market-neutral: Statistical Arbitrage and Fundamental Arbitrage, and many successful managers blend these two techniques, depending on market conditions and/or their expertise.

Statistical Arbitrage

In this type, statistical arbitrage involves model-based, short-term trading using quantitative and technical analysis to detect profit opportunities, and the manager hopes to discover a persistent and statistically significant method to detect profit opportunities.

Here, the leverage used for this type is higher, and typically depends on the number of positions in the portfolio, the desired liquidity and the risk budget. Normally, Pairs-Trading, Stub-Trading, Multiclass-Trading are this type.

Fundamental Arbitrage

In this type, the manager or analysis mainly use fundamental factors (e.g., price/earnings, price/cash flow, price/earnings before interest and tax, price/book, discounted cash flows, return on equity, operating margins and other indicators) and quantitative data to building portfolios, usually, by buying certain industries or companies and also selling certain industries or companies.

Trading with Smart AI

Transactions, risk calculations, trading strategies, proportion of every position and stock in Ark Show’s net asset are all done automatically by AI. Ark Show works based on market timing and long short equity trading styles of hedge fund.

Through multiple analysis process and calculations, it is capable of innovating and even developing its own trading strategies.

Ark Show applies Natural Language Processing (NLP) to make analysis processes. Ark Show identifies and processes the contents related to stock market, including news, articles and reports, and then transfers the data into its database to be analyzed. Then creates a decision tree to analyze the benefits of particular stocks, degree of fluctuation and types of stocks connected to a particular subject mentioned in a report which might affect stock prices by matching comparisons with the trends of stock prices.

We apply Viterbi algorithm and Hidden Markov model to enable our AI to review and learn financial terms. Our AI has the ability to recognize over 80,000 financial terms from its own financial term dictionary database we set up to improve its capability of understanding and identifying useful information.

Chinese Natural Language Processing(NLP)

For Ark Show’s NLP, we have successfully built a dictionary database of up to 80,000 and growing financial terms so that it can understand the basic contents of news, reports and articles of the stock market. With these terms, Ark Show would be able to identify and distinguish the relationships between stocks and their effects.

Ark Show applies Natural Language Processing(NLP) to make analysis processes. After going through big data sources, Ark Show identifies and process the contents of stock market related news, article and reports and then transfers the data into it’s database to be analyzed.

We have developed Ark Show, to save time for our investors backed with Big data algorithms and powered by our machine learning AI that uses hedge fund strategy and automated Data Mining through Web Crawling technology to analyze and learn articles/news of stock market to make prediction and risk calculations through setting up, expand and learn its own financial-wording dictionary.

Ark Show integrates Data Mining technology to crawl into thousands of information sources and Natural Language Processing (NLP) to analyze information before making trading decisions.

Data Mining & Web Crawling

In order to improve Ark Show’s analyzing ability and reliability, we apply Data Mining technology to enable Ark Show to crawl through a large array of report, reviews and news on the stock market for analyzing.

For our Data Mining technology, we have managed to stably crawl through more than 26 specified websites in a high frequency for usable information 24/7. It is able to classify different data into each respective databases by itself through various data cleansing and data classification processes.