Download PDF USA It’s been a short week on Wall Street because of Thanksgiving Day, but enough to allow stock markets to close the recent “misstep” and return to near all-time highs. If just a few days ago hopes for a December rate cut seemed to be crumbling under the Read more…
Download PDF Introduction Venezuela is going through one of the worst political and economic crises in the world. The currency is crashing again, inflation is returning to triple digits, and the president is thought to be the head of a narco-trafficking cartel. Moreover, the United States is increasing sanctions and Read more…
Download PDF Recently, long-time investor and market sceptic Michael Burry deregistered his hedge fund, Scion Asset Management, effectively stepping away from managing outside capital while remaining active in markets. Almost simultaneously, he re-emerged publicly with a series of posts and a Substack focused on what he characterizes as an AI-driven Read more…
Download PDF USA Following significant increases in stock market enthusiasm, particularly in technology and AI sectors, over the past few weeks, concerns have emerged regarding the sustainability of this growth. Consequently, the market cooled down this week, with the sell-off from the end of last week continuing. Not even Nvidia’s Read more…
Download PDF An Introduction to HFT High-frequency traders (HFTs) account for a large proportion of the trading volume in security markets today. Despite this, there is very little understanding of the overall industry. We believe that you, the reader, should be made aware of this little-known yet massively impactful industry Read more…
Download PDF Introduction to Stochastic Volatility Models The distributions of many assets’ price returns tend to show time-varying variance. While returns show little to no persistence in large samples, squared returns exhibit high persistence. Additionally, empirical return distributions tend to show fatter tails than a normal distribution would imply, which Read more…
Download PDF Introduction On November 4th, the 34-year-old democratic socialist Zohran Mamdani became the first Muslim mayor-elect of New York City, comfortably defeating the former governor of New York, Andrew Cuomo. Some of his major policy promises throughout his campaign include freezing the rent for all stabilized tenants, providing free Read more…
Download PDF USA The biggest news of the week was delivered on Wednesday when the House passed the agreement to end the government shutdown and President Trump later in the day signed the bill. It marked the end of the longest government shutdown, lasting 43 days, and importantly allowing investors Read more…
Download PDF Introduction The rapid expansion of digital assets like Bitcoin (BTC) and Ethereum (ETH), marked by surging market capitalization and trading volumes, has signaled the arrival of a new asset class. Instruments for both cash and derivative exposure are now actively traded across crypto-native exchanges (like Deribit and Binance) Read more…
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…