Top-down Estimating: Definition, Techniques, Approaches, Advantages and Disadvantages, vs. Bottom-up Estimating

Posted on September 15, 2024 By John

Companies may use various estimation methods for specific projects. One of the most prevalent ones is top-down estimating. What is Top-down Estimating? Top-down estimating is a project management technique that involves creating high-level estimates for a project’s cost, duration, or effort. Instead of breaking down the project into individual tasks, …

Trading VIX Futures Using Machine Learning Techniques

Posted on September 13, 2024 By Harbourfront Technologies

VIX futures are financial contracts that allow investors to trade on the expected future volatility of the S&P 500 Index, as measured by the VIX (Volatility Index). These contracts provide a way to hedge against or speculate on changes in market volatility. VIX futures are popular in times of uncertainty, …

Negotiable Certificate of Deposit: Definition, Example, Meaning, Characteristics, Advantages, Disadvantages

Posted on September 11, 2024 By John

Understanding financial tools can be a game-changer, and one such tool is the Negotiable Certificate of Deposit (NCD). It’s important because it plays a key role in managing money and investments, which can impact the financial future. NCDs can be a smart way to grow savings over time, making them …

Enhancing Volatility Portfolio Returns with VRP Timing

Posted on September 9, 2024 By Harbourfront Technologies

The volatility risk premium (VRP) refers to the compensation investors receive for bearing the risk of higher-than-expected market volatility, often manifesting as the difference between implied and realized volatility in options markets. The VRP is not constant; it changes according to the market regime. Reference proposed a timing scheme …

Step Allocation (Step-Down) Method: Definition, Meaning, Examples, Advantages, Disadvantages

Posted on September 7, 2024 By John

Some departments within a company only exist to serve other departments. When allocating the costs incurred at these departments, companies must consider various factors. A technique that can help achieve that is the step allocation method. What is the Step Allocation Method? The step allocation method, or the step-down method, …

Using Hurst Exponent to Time the Market

Posted on September 5, 2024 By Harbourfront Technologies

The Hurst exponent is a statistical measure used to evaluate the long-term memory or autocorrelation of a time series, indicating whether a system exhibits trending behavior, mean-reverting characteristics, or randomness. A Hurst exponent greater than 0.5 signifies the existence of long-range dependence, implying that previous trends are prone to persisting …

Marketable Securities: Definition, Examples, Meaning, Characteristics, Types

Posted on September 3, 2024 By John

Marketable securities play a crucial role in the financial world by offering an easy way to manage and grow money. They’re very helpful for businesses and individuals looking to keep their funds flexible and accessible. Plus, they can be a solid safety net during unexpected situations. Understanding their importance can …

Predicting Intraday and Daily Volumes Using ARIMA Model

Posted on September 1, 2024 By Harbourfront Technologies

Volume is an essential, integral market data. However, it receives much less attention in research literature compared to price data. Understanding and being able to model volume dynamics is important because buy-side firms must plan and time their trades to avoid significantly impacting the market, revealing their identities, and incurring …

Using Dividend Futures to Determine the Bubble Component in Stock Price

Posted on August 28, 2024 By Harbourfront Technologies

Dividend futures are financial derivatives that allow investors to speculate on or hedge against the future dividend payments of a specific company or index. Unlike traditional equity futures, which are based on the price of the underlying asset, dividend futures are directly linked to the dividends that a company or …

Do Covered Calls Deliver Superior Returns – International Markets

Posted on August 24, 2024 By Harbourfront Technologies

A covered call is an options strategy where an investor holds a long position in a stock and simultaneously sells a call option on the same stock. This strategy allows the investor to generate additional income from the premium received by selling the call option. The trade-off is that if …