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While Model is a term that is interpreted differently across the industry, Accio Analytics has a specified use of this term. At Accio Analytics, a Model is a specific rule that the application will follow and/or perform to arrive at a result in itself or as part of a larger ruleset. A calculation is a model and so are any subsequent calculations performed on the results of the initial. For example, Brinson-Fachler is a model and so is Geometric Smoothing. Parameters that are to be standardized and used for calculations are also models (ie. Classification structures, time periods, etc.).
As a more detailed example, in attaining a 5 year return for a fund at the GICS Sector level, the following would be examples of some of the models that would be used:
- Calendar (to determine any holidays)
- GICS Classifications (to determine the GICS Sectors)
- Returns (to determine the type of return you would want to report)
- Time Periods (to define the interval you want to report)
- Linking (to link the daily returns throughout the 5 years of data)
- Validations (to ensure that you have all the minimum required data to arrive at the calculated results)
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