Acumain Inc.

"Acumain and Calfus forge partnership to develop AI-solutions to revolutionize investment management" The partnership brings together Acumain’s financial expertise and Calfus’ software engineering skills. The collaboration is poised to redefine the landscape of customized investment management by leveraging the power of technology to enhance efficiency, security, and client services. #aiengineering #aianalytics #aiplatform #Calfus #aiinvestment #aiproducts #aifinance #Acumain Baljeet Chhazal Sanjay Misra Acumain Inc. Reference to the yahoo finance news link for more details. https://lnkd.in/gW_T9XYF

Carbon Pricing Confusion: The Origin and A Simple Solution. Do stock prices reflect carbon transition risk? Several recent papers in leading academic journals disagree on this critical question. Whether high carbon emitting firms outperform (i.e., experience a higher cost of capital) low emitting firms depends on measures and units used – disclosed vs. estimated emissions, absolute emissions vs. carbon intensity. In our recent paper, my co-author Abraham Lioui and I argue that the confusion is related to the methodology used by these published studies because their portfolios underlying the carbon premium are not scale invariant and fully funded. Scale invariance means using carbon intensity in tons or hundreds of tons of CO2 per million sales should deliver the same carbon premium. Fully funded requires long and short leg weights to add up to one each, similar to style factors (value, momentum, etc.). The methodology in the published papers fails on these two dimensions. To correct these issues, we suggest a simple solution: a fully funded emissions-weighted carbon factor. The weights of stocks are their emissions, and the sum of the weights for the short and long legs is scaled to equal one. We obtain the emissions-weighted carbon factor by applying economics, not gut feel! In particular, it has the same ex-ante Sharpe ratio as the factor used in the literature. When using the emissions-weighted carbon factor, we show that the carbon transition risk premium, 1) can be much less sensitive to the emissions measures (estimated vs. disclosed emissions, absolute emissions vs carbon intensity); 2) is higher than previously reported (several tens of bps vs just a few bps per month); 3) varies considerably across time. More here: