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How to Deal with Missing Financial Data

Posted on March 15, 2023 By 
In the financial industry, data plays a critical role in enabling managers to make informed decisions and manage risk effectively. Financial data can come from a wide range of sources, including economic indicators, company financial statements, market data, customer transaction histories, and social media sentiment. By analyzing this data, financial …
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AI Aging: Model Quality Degradation

Posted on March 3, 2023 By 
Artificial Intelligence (AI) and Machine Learning (ML) are two rapidly growing fields that have revolutionized the way we process and analyze data. AI refers to the development of computer systems that can perform tasks that typically require human intelligence, such as visual perception, speech recognition, decision-making, and natural language processing. …
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An Option Pricing Model Based on Market Factors

Posted on February 21, 2023 By 
In option pricing theory, the risk-neutral measure is a measure that allows for the valuation of financial instruments such as options. The risk-neutral measure is obtained by assuming that investors are indifferent to the risk and that the expected rate of return on all assets is equal to the risk-free …
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Diffusive Volatility and Jump Risks

Posted on January 29, 2023 By 
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 volatility helps investors to gauge …
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Factor Model for Delta-Hedged Options Returns

Posted on January 16, 2023 By 
Options are contracts that allow traders to buy or sell a security at a predetermined price. Options give the holder the right, but not the obligation, to buy (call option) or sell (put option). They are traded on exchanges like stocks and have their own ticker symbols. Options can be …
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Do Commodities Lead the Equity Markets?

Posted on December 26, 2022 By 
It is generally accepted that commodity prices can have an impact on equity markets, as the prices of commodities can affect the profitability and performance of companies in various sectors. For example, a rise in the price of oil may benefit companies in the energy sector, while a decline in …
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