Beyond the Models Everyone Else Still Uses
Most financial models are not wrong because nobody noticed their limits. They persist because replacing foundations is harder than adding parameters.
“Your Sharpe ratio is too low.”
That comment from a hiring manager at a large quantitative hedge fund exposed a deeper problem: traditional finance was treating positive and negative variance as if they were the same thing.
It was not. And that distinction — between variance that hurts and variance that helps — is where this framework began.
That question led to partial moments.
What began as an attempt to build a more relevant risk metric eventually expanded into a broader mathematical framework: one in which mean, variance, skewness, kurtosis, covariance, and even the empirical cumulative distribution function can be expressed as special cases of a more general structure.
OVVO Labs builds financial tools on partial moments and nonlinear nonparametric statistics, so pricing, portfolio construction, and macro forecasting can be grounded in empirical structure rather than inherited assumptions.
This is not a collection of disconnected products. It is one foundation applied across three core financial tasks:
- options pricing
- portfolio optimization
- macro nowcasting
The mathematics stays under the hood. The output is available today.
Built on NNS
The broader statistical toolkit behind OVVO Labs is available through the NNS package.
NNS provides the nonlinear nonparametric framework underlying the work: partial moments, dependence measures, regression tools, and related methods. OVVO Labs applies that foundation to focused financial workflows for practitioners.
Validation from the Foundations of Portfolio Theory
Fred Viole with Harry Markowitz
I agree that your approach is more general than old-fashioned mean variance… I wish you the best in getting your ideas out.
Harry Markowitz
That matters because it places OVVO Labs in direct conversation with the foundations of modern portfolio theory.
The complexity stays under the hood. The user gets focused applications that can be used now.
What Users Say
Very large firms will do their own forecasts, but the reality is it’s unlikely they will be better than this one. The econometrics are likely better than what you’d do internally at a small fraction of the cost.
Head of Risk Management on MacroNow
OVVO Labs options tool has materially reduced my research time while improving structural discipline.
Quant Researcher on the Options App
Every time I track the top ranked securities, the signals are good across different allocation ranges.
Active Trader on the Portfolio App
Start With the Live Tools
Built for quantitative researchers, portfolio managers, risk professionals, and serious active investors who want a more rigorous foundation than the standard toolkit provides.
Explore the introductory tools below to get a hands-on sense of the workflow, output, and structure of the platform.
Manage your subscriptions or ask technical questions before diving into the tools.
For institutional licensing, team access, or custom arrangements, contact us directly.
Options
Complementary Intro Site: ovvo.shinyapps.io/options_intro
Call = upper partial moment.
Put = lower partial moment.
No Black-Scholes. No lognormality. Confidence intervals from the empirical distribution.
Portfolio
Complementary Intro Site: ovvo.shinyapps.io/portfolio_intro
Utility preferences embedded directly into covariance.
Four directional quadrants capture upside dependence, downside dependence, and divergence.
Built to see crash dependence that standard correlation was never designed to capture.
MacroNow
Complementary Intro Site: ovvo.shinyapps.io/macronow_intro
Nonparametric vector autoregression across 30 Fed variables.
Forecasts GDP, CPI, and unemployment from a broader empirical framework rather than rigid parametric assumptions.
Built for live nowcasting and scenario-aware decision support.
Ranking Tool
Create expected partial moment ranks for your securities.
A focused way to surface relative opportunity through the same broader framework.
Bundle
One coherent system across pricing, portfolio construction, and macro forecasting.
A broader framework, available as a single subscription.
For institutional licensing, team access, or custom arrangements, contact us directly.
Markets Do Not Care About Your Assumptions. Neither Do We.
OVVO Labs gives you a more general framework for options pricing, portfolio construction, and macro forecasting — expressed through tools you can use today.