Download PDF Introduction In an era where markets are inundated with data and traditional analysis is continuously challenged by evolving market dynamics, this article was conceived as an attempt to harness machine learning (ML) to capture and exploit momentum signals in financial time series. The central idea was to blend Read more…
Download PDF USA U.S. equities faced a volatile week as investors tried to figure out how to react to President Trump’s renewed threats of tariffs, inflation numbers that were higher than expected, and the Federal Reserve’s cautious stance on future rate cuts. At the beginning of the week, financial markets faced Read more…
Download PDF Introduction Prediction markets have long been touted as effective aggregators of information, leveraging the collective intelligence of participants to generate probability estimates for real-world events. Platforms like Kalshi have taken this concept a step further by allowing users to speculate on a broad range of outcomes, from political Read more…
Download PDF Introduction When it comes to pizza restaurant franchises, Domino’s [NYSE: DPZ] is a household name across the world. Trading at a current stock price of $476, it is down 6.5% in the last six months. Despite many sell side analysts revising their target price downwards for Domino’s over Read more…
Download PDF Introduction Historically, prediction markets trace their roots back to early experiments in political and economic forecasting, such as the Iowa Electronic Markets in the late 1980’s, allowing participants for the first time to trade contracts tied to the outcomes of specific events. Since then, these markets have evolved Read more…
Download PDF USA This past week, the U.S. economy exhibited resilience as key data points underscored a mixed but stable environment. Housing starts fell by 3.1% month-over-month, reflecting continued challenges in the housing market, but initial jobless claims reached a seven-month low at 213,000, signaling strength in the labor market. Read more…
Download PDF USA Major stock indexes ended the week on a positive note, recouping some of the losses from the prior week despite ongoing uncertainty surrounding the policies of the incoming Trump administration and heightened geopolitical tensions arising from the Russia-Ukraine conflict. The week’s gains were broadly distributed, with smaller-cap Read more…
Download PDF Introduction In this third episode of the Backtesting Series, we will explore the broad space of Factor Models. If you haven’t already, we recommend reading the first two episodes before proceeding with this article. Please note that the series will include the following parts: Part 1: Introduction Part Read more…
Download PDF Introduction This article expands on BSIC’s previous work on systematic credit by investigating further the use and implementation of factors in the investment-grade corporate bond market. The article starts by discussing the definition of factors used in the analysis and presents two different approaches to the construction and Read more…
Download PDF Introduction Building on our earlier analysis of Binary Options and Asian Options in the first two parts of this series, this third installment introduces Basket Options and Barrier Options, offering an in-depth look at their pricing, sensitivities, and practical implementation through Monte Carlo simulations and Python. Basket Options, Read more…
Download PDF Introduction to Graph Theory Graph theory is a field of mathematics that explores the properties of graphs, which are abstract representations of a set of objects where some pairs of the objects are connected. In an undirected graph , the set represents vertices (or nodes), and represents edges, Read more…
Download PDF USA All major indexes declined over the week with the Dow Jones Industrial Average being the best of the bad, retracting on previous week’s gains as uncertainty over incoming policies grew, leading to disparities in sector returns. The Russell 2000 fell by the most (-3.99%) following its rally Read more…
Download PDF Disclaimer: This article is intended solely for informational purposes. Bocconi Students Investment Club does not endorse any political candidate or party. Introduction Millions of Americans this week have cast their ballot for the presidential election, which has been undoubtedly one of, if not the most important event of Read more…
Download PDF Introduction As announced in our previous episode, the second article in our Backtesting series will discuss Cross Validation and introduce a new Backtesting strategy, first presented by Giuseppe Paleologo (2024). If you haven’t already, we recommend reading the first episode before proceeding with this article. Please note that Read more…
Download PDF Introduction In our previous exploration of sports betting, we examined basic market efficiency and evaluated whether straightforward strategies could uncover statistical arbitrage opportunities. Our findings showed that, while betting markets may appear exploitable at first glance, they remain highly efficient, leaving little room for profit under simplistic approaches. Read more…