''Turn uncertainty into strategy with our VaR calculator''

Finadem V@R
A Powerful Market risk management tool

A financial institution must always have control over the risks it takes, especially in highly speculative and volatile markets.

Finadem VaR is the ideal tool for monitoring your portfolio's exposure to market risks and helping managers to set risk limits.

Data Analysis

Historical market data comes from external platforms, which require efficient processing in order to detect any anomalies that could distort results or degrade calculation accuracy.

Compute the VaR

Finadem VaR identifies all the different risk factors and their correlations that impact your portfolio according to the financial instruments in it.

Determine your portfolio's P&L and VaR with the utmost precision, using historical and Monte Carlo simulation methods.

Visualization

Take control of your settings and visualize your results according to a protective portfolio segmentation designed to categorize different risks.

Finadem VaR Financial instruments

Stocks

Equities are very common in portfolios, and their prices are generally very volatile.

Finadem V@R includes these securities for better management of the market risk associated with the unpredictable variation in their prices in your portfolio.

Fixed Incomes

Government and corporate bonds.

Bond yields can be directly influenced by factors such as interest rates, inflation, currency risks...

Finadem V@R determines bond prices based on spreads and yield curve data.

Forex

If you have positions in many currencies in your portfolio, a variation in the currency pairs considered can greatly affect the P&L of the portfolio.

So Finadem V@R takes currency risks into account, as well as the overnight rate that determines the value of your asset from one day to the next.

Derivatives

Derivative financial products are products whose value is derived from an underlying asset.

Finadem V@R mainly includes currency forwards held by the institution.

Value at Risk (VaR) is an essential tool for effectively managing the market risk of huge portfolios involving several categories of financial products.

Finadem includes two of the most widely used methods.

Historical Simulation

With this simple method of estimating VaR, no assumptions are made about the shape of the P&L distribution.

Once the historical data series of portfolio returns is available, it is possible to construct the empirical P&L distribution and deduce the VaR at the desired quantile.

Monte Carlo

This method is used to construct the profit and loss distribution by generating a large number of pseudo-random samples from a known distribution.