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Where RiskModels fits next to Barra and Axioma
Barra and Axioma are the institutional standard — enterprise risk infrastructure for large risk teams. RiskModels is a different delivery model for a different buyer: equity risk decomposition by API, with ETF hedge ratios you can trade, for any US stock, fund, portfolio, or 13F.
It is not a replacement for an enterprise risk platform. It is the API-native risk layer for teams that need holdings-level decomposition without one.
The spectrum
From do-it-yourself to enterprise — and the gap in the middle
Build it yourself
Fama-French · open source · in-house
Open factor libraries and your own regressions. Free and flexible — but you own the data pipeline, the model maintenance, and the work of explaining what each position is really betting on.
RiskModels
API-native · pay-per-call
Holdings-level decomposition into market, sector, subsector, and residual — plus the ETF hedge ratios to act on it — from one API call. No platform to stand up, no seats, no enterprise contract.
Enterprise risk platforms
Barra · Axioma
Broad factor libraries, covariance engines, optimizers, reporting, governance, model history, and vendor support — built for large institutional risk teams. The trusted institutional standard.
The middle tier is the gap: real, holdings-level decomposition for teams that don't need — or can't justify — a full enterprise risk platform.
What RiskModels does
Decomposition you can act on, by API
The distinctive output isn't a factor exposure — it's a tradable one. Each layer maps to an ETF, and each ETF comes back with a hedge ratio in dollars.
Additive four-layer decomposition
Every position splits into market, sector, subsector, and residual — and they add up: market_er + sector_er + subsector_er + residual_er ≈ 1. No hidden factors.
Executable ETF hedge ratios
The headline output is a trade, not just an exposure: dollars of factor ETF per $1 of stock, computed from the same regression that explains the risk.
API-native and agent-callable
JSON in, hedge ratios out — from your app, notebook, or agent. Add the MCP connector to Claude, Cursor, or VS Code with no terminal and no API key.
Pay per call
Start with $20 in free credits, then pay per successful call. No seats, no platform license, no enterprise lock-in.
Broad, deep coverage
About 3,000 US equities with daily history back to 2006 — single stocks, funds, portfolios, and disclosed 13F books.
Published methodology
Open research and reproducible decomposition logic with real citations (Frisch-Waugh-Lovell, Cremers-Petajisto, Grinold-Kahn). The model is documented on riskmodels.org.
Who it's for
Between DIY factor libraries and enterprise platforms
- RIAs and family offices that want holdings-level equity risk without standing up an enterprise platform
- Emerging managers and small hedge funds
- Allocators doing manager, fund, and 13F look-through
- Fintech apps and AI finance agents embedding risk decomposition
- Developers and quants prototyping before committing to enterprise tooling
When to choose an enterprise platform
Barra and Axioma are the right call when…
We're honest about the boundary. If any of these describe you, an enterprise risk platform is built for exactly that:
- •You need a full portfolio-construction optimizer ecosystem
- •You need multi-asset-class coverage beyond US equities
- •A large risk team requires governance, audit trails, long model history, and dedicated vendor support
For everyone in the gap — same problem domain, different delivery model, different buyer, different workflow.
Try the decomposition on a ticker you own
Get a free API key in under a minute, or read the methodology behind the model. $20 in credits, no subscription.