ARB Process

Behavioral Financial Asset Pricing Model (BAPM)

A new tool available to investors

Arborescence Capital has developed primarily for institutional investors, a decision making tool through an innovative model based on behavioral aspects of equity markets (BAPM).

Asset allocation is based on an analysis of long-term cycles that influence markets: economic, monetary, stock and technical resulting in a choice of ten indicators considered relevant to apprehend the needs of investors.

This approach is refined by several short-term indicators that can lead to a monthly allocation.

The sectoral tool, built in the same spirit, and composed of several variables of different time horizon, can lead to a monthly type allocation for each sector, for the U.S. market (S & P 500 ), as well as for Europe (Stoxx Europe 600).

The data used has substantial time series (periods of at least 10 years to decades).

Correlations of each data used have statistically meaningful averages.