BNP Paribas has partnered with artificial intelligence (AI)-driven investment solutions company QuantumStreet AI to launch a proprietary new BNP Paribas Cross Asset Trend and AI Index in Brazil.

The new solution brings together conventional trend-based investing techniques and the AI-powered approach of trend-following signals powered by QuantumStreet AI. It is expected to be launched in other parts of the world.

It will also combine BNP Paribas’ proprietary trend analysis and utilise its indexing capabilities and QuantumStreet AI’s machine learning models for institutional investors.

The new index is designed to deliver an extensive view of cross-asset market trends, including equities, fixed income, and commodities and across geographies encompassing equities and bonds in the US, Europe, and Japan.

QuantumStreet AI principals Chris Natividad and Subhra Tripathy said: “We are thrilled to be working with BNP Paribas on the introduction of this new Index.

“It is ever so important to identify and harness consistent sources of return within a systematic framework, and AI driven approaches provide a solid basis for that.”

By delivering the basis for global structured products being made available to BNP Paribas’ clients, the BNP Paribas Cross Asset Trend and AI Index will provide investors with a special perspective and way to access market trends.

It will also bring emerging opportunities for investors.

XP offers the BNP Paribas Cross Asset Trend and AI Index on its platform. It is a technology-driven platform and provider of financial products and services in Brazil.

BNP Paribas Americas global equities head Adil El Batji said: “BNP Paribas’ collaboration with QuantumStreet AI highlights the bank’s commitment to fostering innovation and exploring new avenues for enhancing investment strategies.

“This collaboration brings together the knowledge of two industry leaders to provide clients with cutting-edge quantitative investment solutions that leverage data-driven insights to optimise portfolio performance and transform the investment landscape.”

BNP Paribas said that the strategy behind the new index integrates a wide array of information sources, combining historical data and forward-looking indicators through AI analysis.

QuantumStreet AI harnesses IBM WatsonX as the core of its generative AI platform.