Extreme Value Theory (EVT)
We look at Extreme Value Theory (EVT) in trading. How to measure tail risk. Included is a Python code example.
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Stock Trading News – page 12
![Beneish M-Score [Components, Formula, Calculation, Example]](https://www.daytrading.com/wp-content/uploads/2022/10/Screen-Shot-2022-10-23-at-6.00.27-AM.png)
Beneish M-Score [Components, Formula, Calculation, Example]
The Beneish M-Score is a statistical model. Learn how it can help you detect when a company has manipulated its earnings.
How to Make a Monte Carlo Simulation in Python (Finance)
Monte Carlo Simulation in Python - We run examples involving portfolio simulations and risk modeling. List of all applications.
25+ Options Pricing Models – Ways to Value Options & Derivatives
There are many options pricing models with complex mathematical foundations and variables that go into option valuation.
Partial Differential Equations in Finance (PDEs)
In finance, partial differential equations (PDEs) are important when pricing complex derivatives and assessing risk. Learn more here.
Derivatives Pricing – Terms, Definitions & Topical Outline
Derivative pricing involves models like Brownian motion and risk-neutral valuation to predict price movements and valuations.
Q World vs. P World (Quant Modeling)
We explore Q World's risk-neutral valuation for derivatives and P World's real-probability approach for trading and investment decisions.
Hamada’s Equation: Separating Financial Risk from Business Risk
We look at the Hamada's Equation and compare it to Miller-Modigliani. Separates business and financial risk.
3-Asset & 4-Asset Portfolios
Learn how to simplify a portfolio by using just 3 or 4 assets. We look at how 3 to 4 assets can be used for diversification.
What Impact Do Elections Have on Financial Markets?
Politcal elections can have significant power over financial markets, both immediately and over time. Learn more in our article.