Learn about the basics of portfolio theory, which are a key for designing portfolios for mutual funds.

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Till now in our ‘’, we have learned about the and , their applications in the real world and how they work on a transaction level. In this article, we will look at the risks and return properties of a collection of stocks.

For example, consider…

Learn about stock volatility, ARCH and GARCH model and how GARCH model analyzes volatility.

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Volatility

Volatility is the standard deviation of probability distribution of log returns. It is the measure of the spread of this particular distribution. Volatility gives a sense of range of values, log returns are likely to fall into.

Volatility can be used for :

  • Measuring risks
  • Defining position sizes
  • Designing alpha…

Learn about advanced methods for time series analysis including ARMA, ARIMA.

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In this series, we will cover the following ways to perform time-series analysis-

  1. Random Walk
  2. Moving Averages Model (MA Model)
  3. Autoregression Model (AR Model)
  4. Autoregressive Moving Averages Model (ARMA Model)
  5. Autoregressive Integrated Moving Averages (ARIMA Model)

Random Walk Model

The random walk hypothesis is a financial theory stating that stock market prices evolve…

Learn about ETFs and how they are used by investors.

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In this article, we will learn about the Exchange Traded Funds (ETFs) and how they work. To understand more about ETFs, let us first understand few drawbacks of open-ended and close-ended mutual funds. You can read more about what are open-ended and close-ended mutual funds in my post .

Drawbacks of Mutual Funds

Drawbacks of Open-ended Mutual Funds

  1. An…

Learn about regression and how regression relates to trading and other advanced methods.

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This series focuses on two main points:

  • Checking and transforming data.
  • Regression.

There are some visual ways to check if a distribution is normally distributed or not:

  • Box-whisker plots helps us visually check if a distribution is symmetric or skewed.
  • A histogram lets us check if a distribution is symmetric/skewed…

Learn about the overall quant workflow, including alpha signal generation, alpha combination and trading.

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A hypothesis is an idea for a way to profit from trading. This hypothesis goes through a several phases of rigorous testing. After coming up with a hypothesis, next comes the research phase. In the research phase, we decide what set of positions to enter, on which assets and at…

Purva Singh

Hi! I am a tech enthusiast currently working on leveraging language technologies to solve financial use-cases! View my work here:

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