December & Company-NH Investment & Securities Develop Event-Driven Korean Stock Solution Algorithm

December & Company, which operates the AI-based simple investment platform 'fint,' announced on the 20th that it has partnered with NH Investment & Securities to develop a new investment algorithm.

The December-NH Event-Driven Korean Stock Solution was developed to enhance the accessibility of robo-advisors (RA) by combining NH Investment & Securities' insights with December & Company's algorithms. It selects stocks based on four key events verified through backtesting and implements an efficient investment strategy through additional filtering using December & Company's stock evaluation engine.

According to backtest results, the algorithm's returns were more than 40% higher compared to the benchmark index (KOSPI), while the maximum drawdown (MDD) was about half as low. The portfolio is optimized through frequent rebalancing based on event changes, maintaining a minimum of 10 and a maximum of 20 investment stocks to enable efficient risk management.

Once the algorithm is implemented, NH Investment & Securities will collect stock data based on four events expected to have high investment attractiveness: ▲positive business performance ▲earnings below expectations ▲top foreign investor inflows ▲capital increase, and provide it to December & Company. The collected data will be loaded into December & Company's database and used to calculate model portfolios (MP) by type. Since corporate-related events are automatically captured daily through news, it is expected to quickly set investment points compared to existing strategies.

The algorithm was registered on the Koscom RA Testbed on the 4th, and customer services are planned to begin from November next year, when passing the testbed is expected.

Song In-seong, CEO of December & Company, introduced, "We developed an algorithm that combines traditional event-driven investment strategies with innovative robo-advisor (RA) technology to respond quickly and objectively to market events." He added, "By leveraging AI investment strategy engine technology and expertise to advance the algorithm, we plan to provide more efficient investment strategies."