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A full-blown alpha model covering all securities is
typically employed by quantitative or high frequency firms due to its
reliance on computing power.

Intermediate

Alpha model is a model for forecasting the future return of securities in the coverage universe. Inputs to an alpha model may include fundamental, quantitative or technical factors. An alpha model, when paired with a risk model is used to derive portfolio weights using portfolio optimization software.

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**Wes: ***Exactly why would you want to push our
*
alpha model *up to the
cloud?*

**Guy: ***I don't know, it just sounded like a
cool project.*

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Keywords:

alpha model

forecast return

stocks

coverage universe

fundamental

quantitative

technical

risk model

portfolio weight

portfolio optimization

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