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How Rising Inflation Affects Your Investments

Posted on December 8, 2021 By 
Inflation is an important indicator of an economy’s health, as it indicates how the costs of goods and services are rising. While consumers often look at the prices of individual products as a gauge of their affordability, they have a broader need for a wide range of commodities. These include …
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Cross-Sectional Momentum in the Commodity Market

Posted on December 5, 2021 By 
Momentum trading is often divided into 2 categories: time-series momentum and cross-sectional momentum. Time-series based trading strategies generate trading signals based on the asset’s past returns. A typical time-series trading strategy usually involves buying assets with positive trend signals and selling those with negative trend signals. In contrast, cross-sectional trading …
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How to Determine Credit Risks of a Startup

Posted on November 30, 2021 By 
There is a very interesting discussion on stackexchange on how to determine the credit risks of a startup. What would be the ideal way to develop the IFRS9 ECL model for startup fintech when there is no historical data. There are 2 answers to this question (as of November 2021) …
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Is It Better To Be Lucky Than Good?

Posted on November 28, 2021 By 
In the financial market, the logarithms of asset prices are often modeled as a normal distribution. Elsewhere in life, many things are normally distributed: people’s height, education levels, talents, working hours in a day, etc. Success, as measured by wealth, however, is not normally distributed. In fact, it’s heavily skewed …
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Does Intraday Momentum Exist in the Crude Oil Market

Posted on November 24, 2021 By 
Day trading is a popular discussion topic in the practitioners’ literature, the blogosphere, and social media. It receives,  however, less attention in the academic community. We have previously discussed a paper on the intraday momentum in the stock indices. Reference extended the research to the oil market. It used …
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Tail Risk Hedging Strategies: Are They Effective?

Posted on November 11, 2021 By 
Portfolio hedging is a risk-management practice that uses a number of strategies to mitigate the risks of any given portfolio. Tail risk hedging in particular is one of the techniques used in equity portfolio management. It basically involves buying put options in a certain amount to partially or fully protect …
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