XRD Equity Models.
A hybrid methodology — currency, market, and industry sensitivities plus nine style factors, updated weekly.
Weekly, at four-week resolution.
The Northfield XRD Equity Risk Models analyze single-country, regional, or global portfolios, giving each security's sensitivity to its currency, market, and industry — as well as to nine style factors.
Style, macro, and market — refreshed every week.
They can also estimate the sensitivity of any portfolio and its benchmark to a wide range of macroeconomic variables. The models are updated weekly using four-week return observations, in a variety of base currencies.
Regional models are available for the USA, Japan, Europe, Asia ex-Japan, Latin America, and a Natural Resources region spanning Australia, New Zealand, Canada, and South Africa.
XRD is a double hybrid: named factors and statistically inferred ones are estimated together, so what remains as security-specific risk is genuinely idiosyncratic rather than a residue of everything the factors missed. Northfield pioneered this hybrid design decades ago and has refined it continuously — the wider industry has only lately arrived at the same idea.
Why the double hybrid.
A weekly, four-week-return model that keeps style, macro, and market risk on one adaptive structure.
Named and statistically inferred factors are estimated together, so what remains as security-specific risk is genuinely idiosyncratic — a design Northfield pioneered decades before the field adopted it.
Refreshed every week at a resolution that sits between daily noise and monthly lag, tuned for style and macro rotation.
Every security's sensitivity to its market and to nine style factors, plus a wide range of macroeconomic variables, in one read.
Single-country, regional, or global portfolios on one shared structure, comparable across markets and base currencies.
One methodology.
Thirteen models.
Each model is independently subscribable, estimated on the same granular, adaptive factor approach Northfield has developed continuously since 1985. Everything, Everywhere spans the whole book; each of the others goes deep on one part of it.
Style and macro, weekly.
Hybrid equity risk, updated weekly — since 1985.
Run XRD Equity Models against your book — directly from Northfield, or through FactSet, Murex, Dynamo, and our other distribution partners.
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