What is the RiskWeather program?
The following article is a summary of the research data to design the 10 weather icons for the Risk Weather program.
Q 1 : What is the Risk Weather Program?
No one knows exactly when the stock market will crash, for how long, when it will bounce back and how long it will hold up. For this reason, investment advice from Peter Lynch, a well-known fund manager who has run mutual funds at Fidelity with long-term high returns, makes sense. "If you prepare for or predict a stock market crash, you lose far more money than you lose in the stock market crash itself." This story may be advice that exacerbates the anxiety and fear of investors who are anxious about not being able to predict the future. But in reality, it is also very wise advice.
As such, the stock market is subjectively influenced by various circumstances, including economic and political variables, so it is very difficult to predict the stock market, and other experts argue that it is completely unnecessary. However, theoretically, as a method of predicting such an uncertain stock market, it can be summarized in two ways: fundamental analysis method and a technical analysis method. The fundamental analysis method is to look at the past and present situation of a company and analyze the current stock value and future stock price. Technical analysis method refers to a method of predicting the future stock price by looking at the historical stock price and trading volume
Among these analysis methods, the risk weather program was created to predict the risk of the stock market based on a mathematical model.
From 2007 to 2008, as the financial crisis that started with individual financial institutions spread rapidly throughout the global financial market, and as world famous financial institutions went bankrupt in a chain of bankruptcies, countries around the world were struggling to stabilize their financial systems and manage systemic risks. I realized how important it is.
However, although the need to manage these risks is increasing, the people who deal with this data are experts in a very limited field, and there are very few cases in which it is presented visually in an easy-to-understand manner to the general public. Therefore, based on scientific and mathematical theories, the purpose of the Risk Weather program is to visualize and show the level of risk occurring in the stock market so that the general public can easily understand it.
The Risk Weather program, developed to allow the public to easily understand and easily view complex and professional stock market crisis data.
Girin instruments.Inc is a fin-tech company that provides solutions based on powerful mathematical probability models. The models abstract a mathematical structure from chaotic financial data.
The financial solutions on the models efficiently analyze risk in the highly volatile financial market and help customers’ decision-making in portfolio management.
The Riskweather program is one of five solutions developed by the Girin instruments.Inc.
Q2. Who are RiskWeather's main users?
The stock market is unpredictable and subject to fluctuations, so the general public has no choice but to rely on expert opinions or analysis. However, these data are not easy to understand, so it is difficult to personally judge and analyze them. Therefore, the Risk Weather program shows the crisis in the form of a weather forecast icon for easy understanding by the general public. It is subdivided into 10 categories and shown based on a mathematical model.
When we were assigned to design this icon, the focus was on an icon that was friendly to the general public. Realistic and minimalistic icons may take data analysis seriously or misunderstand it as a tool for direct investment. Therefore, it is designed in an animation format as a friendly reference as much as possible.
Q3. How do you view risk weather?
If you see a year icon like the one below on a stock investment you are interested in, it's a good sign.
However, if you see the icon of a volcanic eruption on the left, you need to analyze the cause more carefully.
Below is the index and risk level suggested by each of the 10 icons.
Q4. Where can I see Risk Weather?
The Risk Weather program was developed with the simplest interface and structure so that it can be easily incorporated into portal sites or mobile sites.
The stock markets offered to date are: Bitcoin, Binance Coin, Bitcoin Cash, Cardano, Digital Cash, Ethereum, Litecoin, Ripple, S&P 500 Index, Russell 2000 Index, Nasdaq Composite, Hang Send index, Nikkei 225, FTSE 100 Index, CAC 40 Index, Amazon, Apple, Facebook, Google(Alphabet), JPMorgan Chase&Co, Tesla.
And the 7-day forecast data is visualized and shown as shown below.
The RiskWeather program is currently available as a free trial on the Girin Instruments website (https://www.girininst.com) main screen.
Myungja Anna Koh