Firms that subscribe to our optional rebranding service can have added, to their semi-bespoke versions of the software, proprietary sets of market assumptions and asset classes. These assumptions will then be available to all of the advisers and clients who use their rebranded version of Voyant.
Example File - Investment averages
The investment averages file should contain the average and standard deviations for each asset class in the new set of market assumptions.
UK_LARGE_CAP_STOCKS will be parsed and displayed in Voyant as “UK Large Cap Stocks”;
There is no limit on the number of asset classes; however, fifteen is the recommended maximum. Introducing over fifteen classes may affect their display in the Voyant user interface.
• Asset classes, which serve as the column headings, must be formatted in all caps with underscores used to represent spaces.
• CASH is a required asset class with all other being client defined.
• There is no maximum limit on the number of asset classes; however, having over fifteen classes may affect their display in the Voyant user interface.
• The Investment Averages file should be sent to Voyant in a comma-separated value (.csv) format.
• Column headings must be upper-cased.
The Correlation Coefficient File
The correlation coefficients file defines the correlation coefficient matrix between each of the asset classes in the market assumptions set. Asset class names used in this file must match, verbatim, those defined in the investments averages file.
The correlation coefficient indicates the strength and direction of a linear relationship between two random variables. The correlation coefficient ranges from +1, indicating a perfect positive linear relationship, to -1, indicating a perfectly negative linear relationship.
One recommended way compute the correlation coefficients for a data set is to use the Excel CORREL function on the historical prices for each combination of asset classes.
2. Use Excel functions to compute an average and standard deviation for each asset class.
3. Then using the historical prices for each combination of 2 asset classes, use the Excel CORREL function to compute the correlation coefficient for the asset pair.
The following example shows how a correlation coefficients file should be formatted.
• The names of asset classes must match, verbatim, those defined in the accompanying Investment Averages file.
• The Correlations Coefficients file should be sent to Voyant in a comma-separated value (.csv) format.