Empowering investors with Smart Alpha Insights powered by Deep Factor AI.

Using our live Alpha predictions, our highest rated 1,000 stocks have outperformed the bottom 1,000, by an average of 28.02% over the predicted 12 month periods. Powered by our Deep Factor AI, which covers a global market capitalization of over $100 trillion equities, 3AI’s Alpha Insights are applicable to all levels of institutional investing.

Leveraging 326 factors on every stock to provide a deeper analysis of companies than ever before, our Alpha Insights are the “Smart Alpha” stock prediction solution the investment industry has been waiting for.


Companies are complex

Evaluating companies is a complex undertaking, requiring a deep, multi-dimensional lens, that digs into accounting forensics, technical price patterns, sentiment, valuation, and maps real-world events to future expected financial performance.

For example, sales growth can have a fundamentally different meaning when accruals are expected to be high. The meaning of one stock metric can indeed fundamentally change when viewed in light of another. Traditional linear prediction models are unable to handle the conditionality inherent in stock analysis.


Explosion in data

With as much data now being produced every two years as in the entirety of human history before, it has become a challenging and costly endeavour for funds to stay abreast of the exponentially growing information that has relevance to a stock, and use it effectively for prediction. A continual R&D effort supported by expensive technology, costly data, and machine learning talent is required, yet with no guarantee of results.

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Pitfalls in stock prediction

Predicting stocks is notoriously challenging. From gathering and cleaning vast quantities of data, to forming factors that deal with noisy financial data, and then developing prediction systems, there are numerous pitfalls, such as look-ahead bias, point-in-time data requirements, and overfitting. Investors need a solution that solves for these challenges and continues to work effectively in a live environment.


Black box AI

Only machine learning (AI) solutions have the capability to learn from the vast quantities of data now available for stock analysis. However, relying on third-party AI predictions can be challenging, where the system producing the forecasts is a Black Box that cannot be understood or explained.


Deep Factor AI

3AI’s market-leading Deep Factor AI compresses billions of data points into the single number you care about, alpha. Our Deep Factor technology evaluates 326 models, called factors, on every stock. These cover all investment and trading philosophies, leaving no stone unturned.

Furthermore, we leverage the research work of 18,000 equity analysts, to map real-world events to changes in company financial forecasts. This enables our Deep Factor AI to ask and get explainable answers to more questions than ever before, forming a far deeper conditional understanding of every company analysed.


An evolving turn-key data solution

Our ready-to-use Alpha Insights deliver the work of an extensive team, incorporating years of development, data cleaning, cloud computation, and investigatory data research, straight to you. Mapped directly to securities, minimal lift is required to verify and use our Alpha Insights.

Furthermore, our team is dedicated to product evolution by continually adding more alternative datasets, boosting algorithms, and adopting the latest computational techniques, to enhance our Alpha Insights. We can also work directly with you to deliver bespoke solutions, incorporating proprietary analytics, data, or models.

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03_  THE PROBLEM: PITFALLS In prediction

Proven prediction capability

With an extensive history in professional investment, the team at 3AI sought from the very start to solve the challenges in stock prediction. In all facets of system design we strive to ensure that our live forecasting accuracy is at the very least as good as our history.

In walk forward simulation, our self-learning AI has been evolving and improving since the 1970s, producing increasingly accurate Alpha Insights over time. Since going live, the predictive accuracy is now clearly outperforming historical averages.

04_  THE PROBLEM: Black box ai

Explainable AI

Our Explainable Alpha Insights provide investors with the information they need to contextualize the sources of each prediction, by gleaning stock specific sensitivity to factors. For example, highly predictable companies are typically more sensitive to valuation, whereas rapid growth firms tend to be more sensitive to changes in analyst expectations.

These Alpha Insights open up a new field of strategy optimisation research, such as enabling rapid detection of stocks most amenable to your edge, or reducing exposure to stocks more sensitive to information not evaluated in a strategy.

Interested in Explainable Alpha Insights powered by Deep Factor AI?