There are basically five strategies which can help you in allocating your risk management. 1. Learn about the company If you’re going to put money into the stock market, you need to devote time and energy to learning about the company’s financial statements and annual reports, as well as the state of the economy at […]
Quantitative
What is Risk Management in the Stock Market?
In the stock market, risk management is locating, quantifying, and dealing with the various risks that can affect investment. It’s a must-have in the stock market since it aids traders and investors in deciding whether to purchase or sell a specific security. Due to the potential negative effects of various risks on a person’s investment […]
Stock Portfolio Monte Carlo Simulation in Excel
Introduction Monte Carlo simulations are currently the most common used techniques to estimate the risks that a Bank or firm might be facing at a given time. A Monte Carlo simulation is no more than a series of predictions for possible future events. Once the simulation has run, (virtually) millions of its results will produce […]
Machine Learning Risk Models
Brand new paper “Machine Learning Risk Models” https://ssrn.com/abstract=3308964 gives a new algorithm and source code for building non-factor risk models using machine learning techniques. It also compares them empirically to other risk model constructions.
Real Time Stock Prices in Excel
Excel is undoubtedly the best platform for performing custom tasks on your stock portfolio, such as generating performance charts with respect to non-standard quantities. Generally you would rather base your trading decisions not only on past and current share prices, but also on mathematical quantities calculated out of those prices, broadly known as Technical Indicators. […]
ModelRisk: FREE Risk Modelling within Microsoft Excel
ModelRisk is a Monte Carlo simulation FREE Excel add-in that allows the user to include uncertainty in their spreadsheet models. ModelRisk has been the innovation leader in the marketplace since 2009, being the first to introduce many technical Monte Carlo method features that make risk models easier to build, easier to audit and test, and […]
ERM Adoption Struggling to Keep Pace in Today’s Complex World
It has been a decade since the Great Recession hit our country, threatening to end the American way of life through an economic meltdown. In hindsight, the 2008 sub-prime loan crisis can go down as one of the greatest cumulative risk management failures in U.S. history. When rewards increase, the risks always follow suit, a […]
What do 101 real-life Quant Trading Signals look like?
Paper “101 Formulaic Alphas” https://ssrn.com/abstract=2701346 (freely downloadable PDF) gives explicit formulas – which are also computer source code – for 101 real-life quantitative trading signals (alphas). 26,000+ downloads.