Category: Forex Trading

  • 10 Modeling Daily Returns with the GARCH Model Introduction to Computational Finance and Financial Econometrics with R

    However, there exist investments which have considerably more risk and create opportunities for profit through that risk. As a result, we can capture the notion of risk through modeling volatility to make profits. Where Xₜ is the current asset price/return and we condition on all previous prices/returns. We will build on a previous Medium Post, […]

  • GARCHNet: Value-at-Risk Forecasting with GARCH Models Based on Neural Networks Computational Economics

    Moreover, the increased volatility may be predictive of volatility going forward. Volatility may then return to levels resembling that of pre-crisis levels or be more uniform going forward. A simple regression model does not account for this variation in volatility exhibited in financial markets. It is not representative of the “black swan” events that occur […]

  • Types of Financial Models List of Common Examples

    Properly projecting earnings and cash flows into the future is important since the intrinsic value of a stock depends largely on the outlook for the financial performance of the issuing company. In practice, a financial model is a spreadsheet (usually in Microsoft’s Excel software) that analysts use to forecast a company’s future financial performance. Sales […]

  • Financial Statement Analysis: How Its Done, by Statement Type

    The term may refer to an assessment of how effectively funds have been invested. A financial analysis may also be an assessment of the value and safety of debtors’ claims against the company’s assets. Financial analysis is the examination of financial information to reach business decisions. This analysis typically involves an examination of both historical […]

  • Purchasing Managers Index PMI®

    Breaking results into component contributions further illuminates initiating fluctuations. The policy thus discerns where impetus originates, guiding nuanced support. Corporates optimize resource deployment, understanding influential propagation routes. By basing participation around the prestigious Business Survey Committee aligned with industrial significance, responses yield accurate microcosms of prevailing circumstances. Additional care ensuring appropriately balanced regional representation bolsters […]

  • PMI, Purchasing Managers Index Manufacturing, Services

    Logistics controllers replenish or reduce warehouse stocks, heeding inventory changes. A PMI of 50 means that the sector in question has not changed when compared to the previous month. If PMI is more than 50 then the sector has expanded, and if it is less than 50 the sector has contracted. The ISM Manufacturing “Report on […]

  • How To Use The CAPE Ratio To Double The Return Of The S&P 500

    But it wasn’t until 1996 that Yale University professor Robert Shiller and his colleague John Campbell proposed the CAPE ratio. If you want to get rich you cannot just haphazardly throw darts at the stock page. You must have a plan and demonstrably useful tools to limit risk while also enhancing your returns. The CAPE […]

  • CAPE Ratios by Country 2024 Shiller PE

    They read an article in a so called “financial’ publication and think “that sounds like a good idea” or worse yet listen to a guy like Cramer. One of the secrets to stock market success is the price paid for a stock. Buying at the top of a market when valuations are stretched will typically […]