Investing is not a simple task. It requires careful planning and understanding of risks. But what if the way you're measuring these risks is not quite right? This is a concern raised by some financial experts about a widely used method for assessing portfolio risk. The standard approach, created in 1952, assumes that every trade is of the same size. However, in real...
The green equity market has been growing rapidly, offering fresh investment paths. This growth has sparked interest in how green investments interact with traditional ones. To understand this better, a study looked at how information flows between different green sectors and how this affects investment strategies. The study used a special model and various portfol...
The tech and crypto markets are unpredictable. This is a problem for standard models, like the Markowitz model, which rely on assumptions that don't always fit. Many experts are looking for new methods that can handle this. Deep Reinforcement Learning (DRL) is a promising approach. It uses AI to make decisions based on rewards. These rewards are calculated b...
Imagine you're trying to figure out how different cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Ripple move together. You look at their prices from January 2016 to December 2021, including the crazy time of the crypto crash and the pandemic. You use a special tool called the Generalized Autoregressive Score (GAS) model to do this. What you find is that thes...
Despite predictions of continued sluggishness, Chris Retzler, manager of the Needham Small Cap Growth Fund, is betting on certain stocks to weather an economic slowdown. He believes even if the Federal Reserve cuts interest rates, the effects won't be felt immediately and that the economy needs to slow further, with rate cuts potentially a sign of a more serious econ...