Optima • Portfolio Intelligence

Correlation lies.
Causality reveals.

Two assets move together—but why? Shared driver? Direct influence? Pure coincidence? Optima uncovers the true causal structure behind returns.

See Optima in ActionHow It Works
25%
Better Sharpe
3x
Faster scenarios
100%
Explainable

Portfolio Attribution

Click an asset to see causal drivers

Return
+12.3%
Sharpe Ratio
0.68
Causal Attribution
Macro: +8%, Sector: +4%
Key Drivers:
Fed PolicyInterest RatesInnovation
Audit Trail: Complete

The $10 trillion correlation trap

Correlation-based models dominate quantitative finance. They're fast, they're familiar, and they're fundamentally wrong.

78%
Of factor models rely on correlation, not causation
40%
Performance degradation when regimes shift
0%
Ability to explain "why" to clients or regulators

Two assets. Two stories.

Asset A and Asset B are 0.85 correlated. Should you hedge one with the other?

Correlation says: Yes

Correlation coefficient0.85
Recommendation:
"Hedge Asset A with Asset B to reduce portfolio variance"
What could go wrong?
If correlation breaks (regime change, hidden driver shifts), your hedge becomes a double loss

Optima says: No

Causal relationshipIndirect
Discovery:
"Both assets are driven by Factor X. No direct causal link. Not a hedge."
Optima Recommendation:
Hedge Factor X directly. Asset B won't protect you—it will amplify losses when X shifts.
Real Example: 2022 Tech Drawdown

Funds using correlation-based hedges saw both their tech positions and their "hedges" decline simultaneously. Causality-aware managers identified the shared driver (rates) and hedged appropriately.

Simulate before you trade

Test rebalancing decisions with causal confidence

What-If Scenario

+50 bps
Fed hikes by 0.5%
-10%
Reduce sector weight
5.2 → 4.1
Shorten bond duration

Predicted Impact

Expected Return
+9.2%
+1.8% vs. baseline
Portfolio Risk
14.3%
-2.1% volatility reduction
Sharpe Ratio
0.72
+0.15 improvement
Optima Recommendation:
Execute rebalance. Expected to improve risk-adjusted returns with 87% confidence.

Built for compliance and reporting

Every decision in Optima comes with a full causal audit trail. Perfect for regulatory reporting and client explanations.

Full Attribution

Trace every return back to its causal drivers

Scenario Documentation

Complete audit trail for what-if analyses

Regulatory Reports

Export causal explanations for compliance

See beyond correlation.
Trade on causality.

Discover how Optima transforms portfolio management with causal AI.

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