DERIVATIVES

Decomposing Volatility into Idiosyncratic and Systematic Components

Posted on November 23, 2023 By Harbourfront Technologies

Follow us on LinkedIn Volatility refers to the degree of variation of a trading price series over time. It is a statistical measure of the dispersion of returns for a given security or market index. High volatility indicates a greater potential for significant price swings, …

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RISK MANAGEMENT

How Hedging Frequency and Volatility Affect Profit and Loss

Posted on December 5, 2023 By Harbourfront Technologies

Follow us on LinkedIn Delta hedging is a risk management strategy widely used in financial markets, particularly in options trading. The primary objective of delta hedging is to offset or neutralize the directional risk, or delta exposure, associated with an options position. Delta represents the …

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TRADING

Covariance Risk Premium as a Predictor of Market Returns

Posted on December 9, 2023 By Harbourfront Technologies

Follow us on LinkedIn Various prediction methods are employed in the stock market, leveraging diverse techniques and data sources. Fundamental analysis delves into a company’s financial health, examining factors like earnings, assets, and management. Machine learning and artificial intelligence have gained prominence recently, using algorithms …

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Latest Post

Stock Exchange: What It Is, Purpose, Function, Examples

Posted on December 8, 2023 By Maria Deneuve

Follow us on LinkedIn In the bustling arena of finance, the stock exchange stands as a dynamic hub where fortunes are made, companies are valued, and economic landscapes are shaped. This blog post ventures into the heart of the financial …

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