NEW YORK, March 1, 2005 - Imagine Software, the leading provider of full-service hosted trading and risk management solutions for the global financial industry, today announced the addition of Historical Monte Carlo analysis to its current risk module. The enhanced risk module allows companies to better understand and evaluate large portfolios of traded instruments based on historical risk levels.
"The ability to run Monte Carlo simulations, reflecting historical risk levels, specifically meets the needs of global Hedge Funds seeking to better understand the behavior of portfolios under a range of price movements," says Dr. Lance Smith, Chief Executive Officer at Imagine Software. "It is at the core of our clients' strategy to calculate and analyze a variety of computation-intensive financial risks quickly to develop effective trading and hedging strategies."
Financial institutions use multiple methods to compute Value-at-Risk, each with their own merits. Monte Carlo consists of running a large number of scenarios based upon specified distributions. The historical approach uses historical data directly to evaluate portfolio risk. The benefits include a readily audited, factually based approach that naturally incorporates multiple risk factors.
Historical Monte Carlo analysis is available in Version 6.0.1 of the company's Imagine Trading System. With this enhancement, the system, available as a hosted service at Derivatives.com and as an enterprise application, builds on its highly sophisticated analytical and decisions support tools for real-time derivatives trading and risk management. Traders and risk managers can now examine exposures to shifting prices based on the simulation of historical market data, such as the Stock Market Crash of 1987.
Imagine recently ranked first in equity trading analytics in Risk Magazine's annual Technology Survey, and placed favorably in nine other categories.
Imagine is the only vendor that offers a full-service hosted solution, which provides the benefits of software on demand. It can be deployed immediately around the globe at minimal cost.