Core equity risk models.

Five equity risk models, each built with the best methodology for its market: fundamental, macroeconomic, statistical, global, and single-country. Independently subscribable, comparable by construction, in production since 1985 — hybrid and self-adapting since long before the industry called it new.

Endogenous · FundamentalCore Equity

US Fundamental Equity

A multi-factor endogenous risk model, controlling exposure to the fundamental characteristics that drive US equity return.

Built for US equity managers who need to control exposure to endogenous factors: the fundamental characteristics of the companies themselves, such as price-to-earnings ratio and yield, not only forces outside the portfolio. It decomposes risk across 67 factors, so every position's contribution resolves into the specific bets a manager is actually making, intended or not.

67
Risk factors
11
Fundamental characteristics
55
Industry groups
Controls forPrice-to-earnings, dividend yield, and the rest of the eleven fundamental characteristics, plus market beta and 55 industry groups.
HorizonsLong-horizon forecasts with adaptive near-horizon risk updated daily from news feeds.
Exogenous · MacroeconomicCore Equity

US Macroeconomic Equity

Risk contributions from macroeconomic factors, integrating the economy's drivers into US stock selection and portfolio management.

A multi-factor US risk model that lets managers monitor and gauge risk in terms of the macroeconomic forces that move markets, and fold those forces directly into stock selection. It sits in one comparable frame alongside the fundamental and multi-asset models.

7
Macroeconomic variables
Long + near
Risk horizons
1985
Developed since
Tilts onExpected changes in any of seven macroeconomic variables.
Sits withinOne comparable frame alongside the fundamental and multi-asset models.
Statistical · TradingCore Equity

US Short-Term Equity

The risk model for trading portfolios: daily variance forecasts for managers with short investment horizons.

Gives managers with short investment horizons daily variance forecasts, using a statistical factor model that infers its factors from security behavior rather than imposing them, re-estimated for every trading day so it responds to sudden change at the firm, factor, and market levels.

Daily
Fresh estimation
Statistical
Factor inference
Short
Investment horizon
MethodA statistical factor model that infers factors from security behavior, re-estimated for every trading day.
Responds toSudden changes at the firm, factor, and market levels.
Global · Mixed-estimationCore Equity

Global Equity Risk

A mixed-estimation model of global equity: every security's exposure to region, sector, rates, oil, and currency.

Measures every security's exposure to its region, its sector, global interest rates, and oil prices, and includes fundamental variables such as size, dividend yield, and growth orientation. Risk is measured relative to the investor's home currency.

Its statistical factors are drawn only from what the named factors leave unexplained, so a security's specific risk stays genuinely idiosyncratic rather than a catch-all for everything the model missed — the hybrid approach Northfield has run since 2003, well ahead of its wider adoption.

68
Developed & emerging markets
57
Currencies
Home-currency
Aware
ExposuresRegion, sector, global interest rates, oil, size, dividend yield, and growth orientation.
CurrencyRisk measured relative to the investor's home currency.
Hybrid · Single-country & regionalCore Equity

Single-Country & Regional Equity

A hybrid factor approach for portfolios invested in a single market or region, comparable across every country.

Built for controlling the risk of portfolios invested in a single market or region, using a hybrid factor approach. A shared factor structure makes risk comparable across every market, from a portfolio in one country to a book spanning several.

13
Country & regional models
Hybrid
Factor approach
Consistent
Cross-market structure
MarketsAsia Pacific, Asia Pacific inc. Japan, Australia, Brazil, Canada, China, European Union, Japan, South Africa, Switzerland, United Kingdom, United States, and US/Canada.
Why it mattersA shared factor structure makes risk comparable across every market.
Feature breakoutCore Equity

One equity suite, comparable by construction.

Fundamental, macroeconomic, statistical, global, and single-country — five models on one factor foundation, so a view formed in one is legible in all.

Foundation
One factor set across five models

Fundamental, macro, statistical, global, and regional risk are comparable by construction, not stitched together after the fact.

Specific risk
Hybrid, positively defined

Statistical factors capture only what the named factors miss, so a stock's specific risk stays genuinely idiosyncratic — Northfield's approach since 2003.

Breadth
Endogenous and exogenous

Control the fundamental characteristics of companies and the macroeconomic forces that move them, without leaving the frame.

Horizon
Long plus adaptive near-horizon

Long-horizon forecasts blend with daily, news-aware near-horizon risk for the horizon you actually trade.

Reach
US to 68 markets

From a single US book to a global, 68-market universe on one shared structure.

RelatedCore Equity

XRD Equity is a distinct weekly hybrid methodology and keeps its own page. Everything, Everywhere spans the whole multi-asset book in one model. See the full risk-model directory.

One methodology. Every equity book.

Fundamental, macroeconomic, statistical, global, and single-country, comparable by construction since 1985.

Run any core equity model against your book, directly from Northfield or through FactSet, Murex, Dynamo, and our other distribution partners.

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