Optimal Asset Allocation
Asset allocation is an approach of spreading investment across different asset classes instead of investing on one, its a strategy to balance risk and potential return over a given time period. This involves a mix of stocks, bonds and cash, or money market securities.
Derivatives: Hedging Options
Financial derivatives just from its name "derivative" is a financial instrument that derives its value from the performance of an underlying asset like stocks and other financial instruments Derivatives aid in hedging and speculation of market movements hence help in reducing risk and preventing losses
Hidden Markov Model
HMM is an instance of the state space model in which the latent variable are discrete.What's this state space model? State-space models are models that use state variables to describe a system by a set of first-order difference equations.This is similar to the principles of Markov chains however in this case the latent states are assumed to be the dictator of the observed values.
Monte Carlo Simulation and Stock Prices Forecasting
Monte Carlo Simulation is a mathematical technique used in modeling the probability of different outcomes especially where there is uncertainty or randomness of variables. Monte Carlo simulation helps in providing an understanding of the impact of risk and uncertainty in prediction and forecasting models.
Information Theory in The Financial Markets
In 1948 Claude Shannon founded the field of Information theory in his paper titled, “A Mathematical Theory of Communication.” His interest was on how much information a communication channel could transmit.In the financial markets investors and analysts are interested in separating noise from information to aid in predicting the market movement and measuring risk exposure.
Innova Admitted to the CMA Regulatory Sandbox
We are delighted to announce that Innova Limited (Innova) has received approval from the Capital Markets Authority (CMA) to conduct testing of our innovative cloud-based data analytics platform. This approval is a significant milestone for us, as it allows us to demonstrate the capabilities and potential impact of our platform in the financial industry.