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Building Blocks of Quantitative Finance, Statements

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Building Blocks of Quantitative Finance Part A

INVESTOR SERIES Proper financial analysis will not only help you understand your company’s financial condition, helping you determine its creditworthiness, profitability and ability to generate wealth, but will also provide you with a more in-depth look at how well it operates internally. Different types of financial analysis Several techniques are commonly used as part of … Read more

+70% Analyst Price Targets are NOT Correct

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FACT Analysts price target is a guess linked to their estimates of future performance. Most statistacal backed studies indicate that their overall accuracy rate is around 30% for price 12-18 month targets. As they tend to make long term projections to derive a target price, with a linear exponential thinking and they focus on fundamentals … Read more

Fast Facts of Algorithmic Trading

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INVESTOR SERIES Algorithmic trading accounts for around 60-73% of the overall US equity trading (source: Wall Street). Benefits of Algorithmic Trading Benefits: Trades are executed at the best possible prices. Trade order placement is instant and accurate (there is a high chance of execution at the desired levels). Trades are timed correctly and instantly to avoid … Read more

5 Takeaways on Inflation from the May CPI Report

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GOVERNMENT REPORT SERIES The only thing that saves us from the bureaucracy is its inefficiency Public bureaucracies are less efficient than private organizations in most all of their activities. This is attributed to the absence of competition and of the profit motive. Now, back on Topic Inflation is still picking up pace The media focuses … Read more

2 Of the Most Common Quant Trading Strategies

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INVESTOR SERIES The Answer: Trend Chasing and Momentum Trading Bonus: Arbitrage Trend chasing and Momentum Trading The most popular quant strategies involve trend chasing and momentum trading. Traders who design trend-chasing algorithms use the technical indicators of moving averages and strength indicators. Trades are executed based on trends that follow set parameters. This is a … Read more

Jedi Mastery of Bear Markets

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INVESTOR SERIES In June 2022, the S&P 500 entered a bear market for the first time since March 2020. Question: What defines a bear market? Fact: Wall Street uses the “bear market” term to describe a sustained period when the equity markets are down at least 20% from their recent peaks. Question: When was last … Read more

Insider Trading Hedge Funds Facts

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INVESTOR SERIES Question: What do hedge funds actually do? Fact: A hedge fund is an investment vehicle for high-net-worth individuals, institutional investors, and other accredited investors. The term “hedge” is used because these funds historically focused on hedging risk by simultaneously buying and shorting assets in a long-short equity strategy. Question: Are Mutual funds considered … Read more

Earn A+ Grade in Mathematical Finance

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101 SERIES Mathematical finance, also known as quantitative finance and financial mathematics, is a field of applied mathematics, concerned with mathematical modeling of financial markets. There are two separate branches of finance that require advanced quantitative techniques: 1. Derivatives pricing 2. Risk and portfolio management. Mathematical finance focus in within the fields of computational finance … Read more