DERIVATIVES

Diffusive Volatility and Jump Risks

Posted on January 29, 2023 By Harbourfront Technologies

Implied volatility is an estimation of the future volatility of a security’s price. It is calculated using an option-pricing model, such as the Black-Scholes model, as it takes into account various factors including the current price of the underlying asset and its strike price. Implied …

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RISK MANAGEMENT

How Credit Risks Affect Momentum Strategies Returns

Posted on December 14, 2022 By Harbourfront Technologies

Credit risk is the probability of loss from a borrower or counterparty. It is also known as default risk and refers to the potential that an entity may not be able to meet its obligations when due. Credit risk can arise from various sources including …

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TRADING

How Accurate is Machine Learning Prediction in Finance?

Posted on January 26, 2023 By Harbourfront Technologies

Machine Learning (ML) is a type of Artificial Intelligence (AI) that provides computers with the ability to learn without being explicitly programmed. It focuses on the development of computer programs that can access data and use it to learn for themselves. The process of learning …

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Latest Post

Cash Payment Journal: Definition, Example, Entry, Format, What It Is

Posted on February 3, 2023 By John

A journal is a book or record of transactions that companies maintain to aid their financial accounting process. Usually, it is the first step in the accounting cycle. Once a company identifies any financial transaction, it must record it with …

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