Arrow_Blue_Orange.pngTop-Line Risk Drop in Q3 Masks Underlying Turmoil



Q3 2018 saw large divergences between indexes typically viewed as “risk on”-type assets and their presumably less-risky counterparts. Top-line risk was down led by the fall in market risk, but other sources—many of which are the things managers tilt on and that drive active risk—actually bucked the market trend and increased.


Authors: Axioma Applied Research Team

 
Melissa R. Brown, CFA 
Managing Director, Applied Research





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Diana R. Rudean, PhD
Director, 
Applied Research





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Olivier d'Assier
Executive Director, Applied Research APAC






Natan Borshansky
Manager, Applied Research






Christoph V. Schon. CFA, CIPM
Executive Director, Applied Research
Arrow_Blue_Orange.pngTop-Line Risk Drop in Q3 Masks Underlying Turmoil



Q3 2018 saw large divergences between indexes typically viewed as “risk on”-type assets and their presumably less-risky counterparts. Top-line risk was down led by the fall in market risk, but other sources—many of which are the things managers tilt on and that drive active risk—actually bucked the market trend and increased.

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Author: 
Applied Research Team