Download PDF Introduction What are the main differences between different European economies right now? Will the two traditionally strongest nations be able to recover from these years of weak economic performance and political uncertainties? In this article we will try to tackle these questions, as well as exploring the principal Read more…
Download PDF Introduction This article explores how Hierarchical Risk Parity (HRP) compares to other portfolio optimization strategies, particularly those based on volatility and traditional portfolio theory. To rigorously test this approach, we constructed a portfolio that rebalances on the first tradable day of December each year from 2005 to 2025. Read more…
Download PDF USA Most stock indexes ended the week on a negative note, although the Russel 3000 Value finished 1.54% higher and the Dow Jones Industrial Average finished 0.80% higher. The NASDAQ and Russel 3000 Growth index significantly underperformed the market, predominantly driven by regulatory uncertainty and concerns of the Read more…
Download PDF Introduction Over the past decades, private equity has emerged as a robust asset class, consistently matching—and often outperforming—public market returns over longer horizons. This article examines the performance of private equity funds, detailing how strategies such as multiples expansion, deleveraging, and operational improvements have driven returns. Yet over Read more…
Download PDF USA U.S. equities experienced a volatile week as markets navigated a mix of strong early gains and later losses amid mounting geopolitical and tariff concerns. With Presidents’ Day keeping markets closed on Monday, trading began on Tuesday with stocks surging and the S&P 500 Index reaching record highs Read more…
Download PDF Introduction Tariffs have recently made headlines, and this time they are the centerpiece of President Trump’s new trade strategy. Simply put, tariffs are taxes imposed on goods imported from other countries, with the goal of protecting local businesses or balancing trade. Though they seem like a simple solution, Read more…
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…