Case Study: CLS Group uncovers key drivers of FX returns in market stress with causaLens AI

CLS Group - Customer Case Study

CLS Group, a major financial market infrastructure provider, sought to understand the key drivers of foreign exchange (FX) currency returns during periods of significant market stress, known as risk-off episodes. They partnered with causaLens and utilized its AI platform to analyze their extensive proprietary FX trade data and discover predictive signals.

Using the causaLens platform, the team tested a wide range of economic factors and discovered that volatility indicators and, crucially, FX volume-based liquidity factors were statistically significant drivers of USD currency returns in both the short and long term following a risk-off event. This insight, enabled by CLS's previously unavailable volume data, suggests that market participants can more effectively calibrate their trading strategies for periods of stress by incorporating these drivers into their models.

CLS Group