Discipline. Research. Technology.
In an increasingly complex world where investors are inundated with data and news, meaningful conclusions can be difficult to reach. Behavioral biases can drive irrational action in financial markets. Because of this, we favor a model-based investment approach applying artificial intelligence and machine learning tools rather than discretionary-based investing. We believe that this approach produces a more consistent, repeatable process, superior risk controls and more effective implementation.
Della Parola employs a disciplined three-step methodology built on years of research and experience. Through the execution of this time-tested methodology utilizing our proprietary, predictive analytics risk mitigation model, we strive to minimize overall downside risk in unfavorable market environments and conversely, increase returns during favorable market conditions.
Our risk mitigation tool combines forecasting models in a machine learning framework to create a dynamic market risk model. The model is premised on two papers authored by Dr. David Mascio, Dr. Frank Fabozzi and Dr. J. Kenton Zumwalt and published in the Journal of Forecasting.
Investors can at times react irrationally to market movements based on inputs from the media and their own preconceived notions of how markets should operate. Our investment approach takes the emotion out of investing by implementing model-based investment techniques to identify market pricing anomalies to generate alpha.