Download PDF Introduction PCA (principal component analysis) allows you to explain a system’s total variance through a number of orthogonal components, thus, independent between each other. The main PCs account for most of the variance of the system and represent the main factors that influence variability. In a trading environment, Read more…
Download PDF USA All major US equity indexes declined during the week as concerns about the labor market, stretched valuations in the tech sector, and prolonged uncertainty surrounding the longest government shutdown in US history weighed on investor sentiment. The S&P 500 fell 1.60%, while the Dow Jones Industrial Average Read more…
Download PDF Note that this is an academic project and we have no intention to utilize this project in real cash online poker as that goes against services terms of conditions. It is no coincidence that poker is frequently mentioned when discussing the world of trading, and that even firms Read more…
Download PDF US U.S. equities ended the week mixed, signaling a pause in the market’s recent upward momentum. The Dow Jones Industrial Average advanced 0.32%, while the S&P 500 edged down 0.08% and the NASDAQ Composite gained 0.80%, supported by continued strength in large-cap technology names. In contrast, smaller companies Read more…
Download PDF Introduction Markets have long been known to exhibit persistent features over a period of time, through the years they have been described in several different ways: calm and turbulent, bullish and bearish, liquid and illiquid, due to macro conditions, geopolitical events, tech disruption, etc. These terms all refer Read more…
Download PDF Introduction Over the years many researchers studied returns in the market, in particular empirical analysis has shown that market returns follow a quasi-normal distribution. This assumption however doesn’t capture the fact that markets exhibit more sharp movements than what the standard normal distribution would imply, thus we say Read more…
Download PDF Introduction Over the past decade, volatility as asset class has attracted the attention of several institutional investors, who consider it as an interesting hedge against long position in equities, given the evident negative correlation that persist between the two asset classes due to the leverage effect. Unfortunately, volatility Read more…
Download PDF Introduction The European Union’s Emissions Trading System is undergoing major changes as part of the EU’s ambitious “Fit for 55” climate package. These reforms tighten the carbon market in unprecedented ways to help meet a 55% emissions reduction by 2030. Three key developments are reshaping the EU carbon Read more…
Download PDF US U.S. equities ended the week notably lower, marking a pause in the recent upward momentum. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average fell by approximately -2.43%, -3.01%, and -2.73%, respectively, logging only the third weekly decline in the past ten weeks. The market had Read more…
Download PDF USA US equities ended the week on a stronger note: despite the US government shutdown on Wednesday, the market has seen all-time highs during the week for both S&P500 and DJIA. The S&P 500 and Dow each gained about +0.83% and +0.95% respectively for the week, while the Read more…
Download PDF Introduction Whenever approaching Quant Trading it is crucial to be aware that the benefit of each trade we make needs to overcome the cost of trading. Transaction cost models are a way to quantify the cost of making a trade of a given size so that the information Read more…
Download PDF Introduction Bond markets across major economies-including France, Japan and the UK have undergone notable shifts in recent weeks as investors reassess fiscal uncertainty, inflation, rates trajectories, and political turmoil. While the recent election of new prime minister Sanae Takaichi in Japan is currently capturing markets participant’s attention, the Read more…
Download PDF Introduction Bulgaria –already an EU member but not yet in the euro area– has received the European Commission’s green light to adopt the euro in 2026, becoming the 21st member of the Eurozone. The ECB believes that the euro’s introduction will help improve overall economic stability and create Read more…
Download PDF USA U.S. equities ended the week on a weaker note, despite a Friday rally that helped recover some of the losses. The major indices remained under pressure from rising Treasury yields and renewed trade announcements, leaving investors concerned with further volatility. On Friday, the major indices managed to Read more…
Download PDF Introduction (to Exchange Rate Models) Exchange Rate Models are widely used by entities ranging from central banks to international financial institutions to assess exchange rate misalignments. Strong and persistent departures from equilibrium levels are thought to have a substantial bearing on growth prospects, price dynamics, or even financial Read more…