Financial experts rely on factor models to grasp how different assets behave together and manage risks. But after major events like the COVID-19 pandemic, these models might need a reality check. That's where the mosaic permutation test comes in. It's a clever way to ensure your models are still doi
The world of cryptocurrencies is vast and growing rapidly, with thousands of different types now available. While there's a lot of diversity, there's also a fair amount of deceit, with scammers hoping to cash in on the current craze. To understand how unique these cryptocurrencies really are, resear
The financial world is buzzing with excitement as Donald Trump makes his comeback to the White House. Stocks are on a roll, with the S&P 500 leaping by 2. 1% and the Dow rocketing up by 1, 292 points. Bitcoin investors are over the moon, with prices reaching a record high of over $75, 000. Trump's f
President-elect Donald Trump's economic plan includes new tariffs on imported goods. This could make things pricier for Americans, especially those earning less. Economists warn that these tariffs might increase household costs by thousands of dollars per year on items like clothes, furniture, and a
In the blink of an eye after the election results were out, the stock market jumped up. The Dow Jones Industrial Average was up by more than 3 percent, and the Nasdaq Composite and S&P 500 weren't far behind, rising by nearly 2 percent. Crypto In the crypto world, things got really exciting. The p
Have you ever wondered how weather forecasts and complex financial models are connected? Well, they are, thanks to some heavy-duty math! We're talking about weather derivatives, Black-Scholes equation, Feynman-Kac theorem, and the Fokker-Planck equation. These might sound like a mouthful, but they'r
Imagine if our pension system worked differently. Instead of today's pay-as-you-go (PAYG) method, what if pensions were funded by human capital investments? The PAYG system has a major flaw—it ignores who contributes to raising the next generation and even whether they do at all. This study suggests
Belarusian banks are making a big change by switching to international financial reporting standards, known as IFRS. This shift isn't easy, and one of the trickiest parts is figuring out how to handle loans and conditional obligations. These are rules set by the International Financial Reporting Sta
In investment, the Sharpe Ratio is used to measure the performance of a strategy. But how do you know if your strategy is the best among many options? Enter the Intersection-Union Test. This test is like a competition where you compare the Sharpe Ratio of your benchmark strategy with others. The coo
Ever thought about how traders keep their trades going without adding extra money? Welcome to the world of self-financing trading! This concept is a big deal in Quantitative Finance. It was first introduced by Harrison and Kreps in 1979 and expanded by Harrison and Pliska in 1981. In simple terms, s
