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Quantitative Finance : Recent Questions and Answers

Find answers to your questions about Quantitative Finance or help others by answering their Quantitative Finance questions.

Do corporate events happen intraday?

Does any corporate event that affects the stock price/shares outstanding happen during the trading session in vanilla US Common stocks or predominantly at night ?...

Asked on 01/06/2022

1 answer

Physical commodity trading quantitative risk return model

I am very new to commodities, I was previously in portfolio management/optimization (Black Litterman Markowitz etc). I am now a Buy-Sell analyst for Petrochemicals, and need to understand the basic...

Asked on 01/04/2022

5 answer

Calculating M in Kelly portfolio optimization

My Question In: $F^* = C^{−1}[M−R]$where $M$ is a vector of $n$ securities returns, is the log return, or arithmetic return, intended to be used for...

Asked on 01/04/2022 by oDUfrKeqea

1 answer

Textbooks on algorithmic trading

What are good sources and textbooks covering the theory and models behind algorithmic trading and strategies?...

Asked on 01/02/2022

1 answer

What can I do with AIG+

Got the following notice. What Can I do with AIG+ WARRANT I have? What will happen on 01/12/2021? What will happen on 01/14/2021? Will I get $45.088365 PER WARRANT ?...

Asked on 01/02/2022

2 answer

How can we estimate new stock price after a large purchase?

Suppose someone buys $4bn of a particular stock over the period of a few weeks. Depending on how much that stock is being traded, you would expect that the price...

Asked on 01/02/2022

4 answer

Testing the significance of active trading strategies other than stocks

In active asset management industry, a common approach to Test whether my Strategy Provides significant alpha is to Regress Portfolio Returns on Fama French 3 (or 5 factors) and check...

Asked on 12/31/2021

1 answer

Simulation scheme for SABR beside the standard Euler discretization

QUESTION:Beside Euler Scheme, is there another more robust (and preferably easy to implement) way to simulate asset path with SABR dynamics?Simulation that will withstand even for high volatilities....

Asked on 12/31/2021

1 answer

Leverage and Tracking difference

I am a little confused. I have calculated the tracking difference of an Index and a n ETF using the return getting 0,4% tracking difference per year. I have then...

Asked on 12/28/2021

1 answer

Power Options & Forwards on Stock Squared

Short story: the process for Stock price squared is not a martingale when discounted by the money-market numeraire under the risk-neutral measure. How can we then compute derivative prices on...

Asked on 12/28/2021

1 answer

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