Investors warm to quant tools to gauge political risk
Many funds have lost confidence in traditional ways of measuring political risk
BlackRock, the world’s largest asset manager, is looking to use text sentiment analysis to gauge geopolitical risk, which it says is at its highest level since the Russian invasion of Crimea in 2014.
The BlackRock Geopolitical Risk Indicator (BGRI) works by tracking the number of times geopolitical risk is mentioned in the Dow Jones Global Newswire and Thomson Reuters’ broker report database – and crucially, the sentiment of the text. The more positive the BGRI score, the more concern for
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