@article {Ilmanen1, author = {Antti Ilmanen and Thomas Maloney and Adrienne Ross}, editor = {Connett, Wendy}, title = {Practical Applications of Exploring Macroeconomic Sensitivities: How Investments Respond to Different Economic Environments }, volume = {2}, number = {2}, pages = {1--5}, year = {2014}, doi = {10.3905/pa.2014.2.2.070}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Exploring Macroeconomic Sensitivities: How Investments Respond to Different Economic Environments Antti Ilmanen Thomas Maloney Adrienne Ross An increasing number of investors are attempting to gauge how their allocations to various assets are impacted by macroeconomic risk factors such as growth, inflation, real yields, volatility and illiquidity. Because macroeconomic factors or exposures are not directly investable, this approach creates a challenge, Maloney tells us in this Practical Applications report.The authors of Exploring Macroeconomic Sensitivities: How Investments Respond to Different Economic Environments in the Spring 2014 issue of The Journal of Portfolio Management provide a framework for constructing well-diversified portfolios that can better withstand macroeconomic shocks. The article was co-written by Thomas Maloney, Vice President of AQR Capital Management , Antti Ilmanen, Principal of AQR in London, and Adrienne Ross, an Associate at AQR in Greenwich, Connecticut.TOPICS: Analysis of individual factors/risk premia, volatility measures, in markets}, issn = {2329-0196}, URL = {https://pa.pm-research.com/content/2/2/1.5}, eprint = {https://pa.pm-research.com/content/2/2/1.5.full.pdf}, journal = {Practical Applications} }