BRAIN is a Research Company that develops proprietary signals based on alternative data and algorithms for investment strategies on financial markets.

BRAIN also partners with Clients to support them in developing, optimizing and validating their own proprietary models. 

BRAIN

Brain develops algorithms for trading strategies and proprietary signals on financial markets.

Brain also supports Investment Management firms in transforming their ideas in proprietary models and in testing and optimizing their algorithms. 

Our workflow is supported by robust software development competences to develop and deploy our solution on the most suitable IT infrastructure. 

We base our solutions on dynamic stochastic models, as well as on Machine Learning and Natural Language Processing algorithms. 

We have developed a proprietary backtesting module to assess investment strategies, either proprietary or third parties. 

BRAIN PRODUCTS

Dynamic Volatility Signal

DYNAMIC VOLATILITY SIGNAL

Risk ON/OFF signal based on volatility and other stress indicators.                                                                                                                  

Brain Sentiment Indicator

BRAIN SENTIMENT INDICATOR

The Brain Sentiment Indicator (BSI) measures the “mood” on a specific company based on the analysis of financial news.

Brain Market Sentiment

BRAIN MARKET SENTIMENT

Brain Market Sentiment (BMS) provides a daily a score on the general mood of the market by automatically selecting and analysing thousands of news from most popular financial media.
A subset of relevant news related to "fear" or "opportunity" is selected and clustered by topic. The BMS provides an aggregate score for the news topic sentiment of last days. 

Brain Thematic Baskets

BRAIN THEMATIC BASKETS 

Algorithm-based selection among a large database of companies of a basket of stocks whose business is related to a specific theme (es. "nanotechnology"). The selection is performed by analyzing company public documents and web pages by leveraging on natural language processing and machine learning classifications and clustering techniques.

Clustering of Market Scenarios

CLUSTERING OF MARKET SCENARIOS

With Unsupervised Machine Learning techniques our algorithms identify non trivial patterns among a large number of financial and macroeconomic data to find days in the past which are “similar" to the current scenario. Investment models can be built by analyzing the performance of various financial instruments on the market clusters identified by the system.                              

Stock Selection Model

STOCK SELECTION MODEL

Brain has developed a framework to investigate the optimal choices of datasets, algorithms and features to create a predictive model for stock selection. The stock ranking is based on a Supervised Machine Learning model that includes as features a large number of conventional data and alternative data.                                                                                                                                                            

Language Analysis of Earnings Calls

LANGUAGE ANALYSIS OF EARNINGS CALLS

Brain has developed a method to analyze the sentiment and various language complexity metrics of earnings calls transcripts. Each call is divided in the main parts (Management, Q&A) and actors (Managers, Analysts); for each piece the metrics are calculated and a correlation score is evaluated between such metrics (sentiment, language complexity) and the average future return of a company.

BRAIN TECHNOLOGIES

Proprietary technologies  that constitutes the engine of Brain Products

Natural Language Processing

NATURAL LANGUAGE PROCESSING

Brain products and solutions leverage on Natural Language Processing techniques (NLP) to extract from structured and unstructured texts meaningful metrics such as sentiment, language complexity and topics. In the context of NLP we use various machine learning techniques to assess the relevance of a company document (e.g. text extracted from web site) with respect to a specific theme (es. “nanotechnology” or “robotics”) or to identify the relevant topics in documents.

Supervised Machine Learning

SUPERVISED MACHINE LEARNING

Brain has developed a set of Machine Learning and financial features engineering tools aiming at providing inference on the markets. Our models yield statistical predictions on targets such as assets returns; using ensemble machine learning models we can calculate probabilities associated to the spectrum of predictions. These tools can be used as building bricks for investment strategies or for proprietary and third parties’ portfolio models.                                                                                                     

Mobirise

UNSUPERVISED
MACHINE LEARNING

Brain combines various clustering algorithms together with dimension reduction techniques to extract relevant features and to cluster various types of data sets, for example all company documents by topic or the past history of market days in order to extract meaningful information.                    

Mobirise

PROPRIETARY BACKTESTING AND VALIDATION MODULE

Brain has developed a proprietary backtesting and validation approach that we use to test and optimize our models, so that our results are less dependent on the specific historical trajectory markets have undergone. The method can be used also to validate or to optimize third parties’ models.

Proprietary Backtesting and Validation Module

WEB SCRAPING TECHNIQUES
ON LARGE SCALE

Using the state-of-the art web scraping techniques we collect public information from the web to complement our models with alternative data. An example of web scraping procedure could be the near real time collections of all new cars insertions from specialized web-sites in order to have an updated view of the car market share for each brand.

SERVICES

Brain assists Investment Management firms in the development of their proprietary algorithms.

Leveraging on our competences and coding resources we aim at becoming a client’s partner in validating and optimizing pre-existing algorithms, as well as offering support to new developments.

We would like to support companies at transforming their expertise and investment approach into algorithms. This would add value to the company by deploying across the whole organization what typically is concentrated knowledge.

  • Partnership in model development
  • Algorithm validation and optimization
Brain Services

Brain assists Investment Management firms in the development of their proprietary algorithms.

TEAM

Matteo Campellone

Executive Chairman and Head of Research

Matteo Campellone holds a Ph.D. in Physics and a Master in Business Administration. Matteo’s past activities included Financial Modeling and Risk Management for financial institutions as well as Corporate Risk and Value Based Management for industrial companies. As a Theoretical Physicist he worked in the field of statistical mechanics of complex systems and of non-linear stochastic equations. Amongst other results, he put forward some new solutions for the finite size corrections to an universality class of Spin Glass models, and developed an approximation method to approach some non-linear stochastic equations.                                                                       

Francesco Cricchio

Chief Executive Officer and CTO

Francesco Cricchio obtained his Ph.D. in Computational Physics applied to Quantum Physics from Uppsala University in 2010. He is the author of several scientific publications on the prediction of material properties from computer simulations with focus on superconductors and magnetic compounds. In 2009 one of his publications has been awarded the cover of Physical Review Letters. He focused his career in solving complex computational problems in different sectors using a wide range of techniques, from density functional theory in the domain of solid state physics to the application of machine learning methods and advanced statistics in the industrial domain.

Simone Conradi

Director

Simone Conradi obtained a Ph.D. in Theoretical Physics focusing his research activities on Lattice Quantum Chromodynamics using methods of Computational Physics. He specialized in statistical physics and in thermodynamics of quantum field theories applied to the fundamental matter, achieving new insights about the confining properties of quarks and gluons at finite temperature and density. Moreover, he got a ten years long career in the railway industry, focusing in the development of human safety relevant systems and in the management of trains diagnostic data, from cloud architecture design to predictive models development.

Alessandro Sellerio

Specialist

Alessandro Sellerio obtained a Ph.D. in Physics focusing on jamming and vitrous phase transition in granular media, using theoretical models, simulations and experiments. He has extensive experience and a ten year long career in the fields of condensed matter physics, statistical physics and complex systems, during which he collaborated with a number of international research groups. Currently he is lecturer at University of Milan teaching python, machine learning and molecular dynamics for the masters course in  Computational Methods.                                                                                                                                                   

Michael Burnett

Board Member

Michael Burnett has an MBA in finance and strategy from London Business School and a Bachelor of Science from the University of Southern California where he attended on academic scholarship. Michael’s career has spanned technology and finance, working for companies such as Apple, Cisco and Yahoo! and working in investment banking where he closed more than 45 transactions with media and technology companies totaling more than $25 billions. Michael has been invited and guest lectured at New York University (Stern School of Management), SDA Bocconi and Università Cattolica.

Lucia Rota

Board Member

Lucia Rota is a Certificated Public Accountant in Torino, Partner of Studio Rota, President of Board of Director of ACR srl, auditing company, and statutory auditor of Fidersel Spa, Nomen Fiduciaria Spa and Cofin Srl. She holds a MBA degree in SDA Bocconi, Milan (2010). She is also registered as freelance journalist. She created InnerDesign, an online platform dedicated to the design world. She collaborates with Italian accelerators and Business Angels as external consultant. IED Moda Professor in Entrepreneurship, Communication and Marketing for the period 2013 – 2016.

Contact Us

Milan, Italy

contacts@braincompany.co

Brain Copyright

contacts@braincompany.co

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