> ## Documentation Index
> Fetch the complete documentation index at: https://docs.activeviam.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Omega

<Badge color="gray" size="lg">[ima](./measures/imadrc)</Badge>

|                 |                                                                                                                                                               |
| --------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Description** | The IMCC multiplier reflecting weighted average of 1 and the ratio of undiversified IMCC(C) to diversified IMCC(C) (BCBS 395: 2.1 Q1) for each sliding window |
| **Notation**    | $\omega$                                                                                                                                                      |
| **Formula**     | $\displaystyle \omega=\rho +(1-\rho) \frac{ \sum_{i=1}^R IMCC(C_i) }{ IMCC(C)}$                                                                               |

The measure is based on the weighted average of the constrained and unconstrained expected shortfall charges - [ES (Capital Constrained)](./es-capital-constrained-stress) and [ES (Capital Unconstrained)](./es-capital-unconstrained-stress).

With $\omega$, the  [IMCC](./imcc-stress) formula can be rewritten as:

$$
IMCC = \omega \cdot IMCC( C )
$$

When the **Sliding Window** hierarchy is not present, a vector of indicators is returned, which you can expand on [Sliding Window](./sliding-window).