Metals are essential components of modern economies, shaping industries from manufacturing to technology. To help businesses anticipate market shifts, we developed an AI-powered scenario generator that simulates monthly prices for industrial and precious metals. The generated scenarios provide monthly average prices of the following metals: By simulating real-world price paths, the generator enables users to […]
Tag: Scenario simulation
Robustness of the AI-based Economic Scenario Generator
Econometric Scenario Generators (ESG) are key instruments in financial risk management. As such, the quality and robustness of the generated scenarios are important factors for reliable risk management. A key indicator of ESG quality is a reasonable correlation between economic variables and the preservation of stylized facts in the generated scenarios. In this post, we […]
Future-Proofing Financial Risk: AI-based Economic Scenario Generator vs. Traditional Statistical ESG
In an era of increasing economic volatility, accurate risk measurement has become the cornerstone of financial resilience. Economic Scenario Generators (ESGs) – sophisticated models that simulate potential future economic conditions – stand at the core of risk management in financial organizations. Scenarios generated with an ESG allow financial professionals to assess the risk under various […]
A Few Economic Scenario Examples Generated by AI, 2024
One important aspect of economic scenario generators (ESG) is their ability to capture stylized facts observed in the historical data. Examples of stylized facts include but are not limited to, correlations between macroeconomic indicators, leading and lagging effects, level-dependent dynamic relationships, and even inverse relationships during stress periods. In this blog, we present a few […]