Category: Risk Management
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Backtesting Magnificent Seven — Volatility, Drawdown & Returns
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Read more: Backtesting Magnificent Seven — Volatility, Drawdown & ReturnsThis is a summary of my full article on Medium. For the complete deep dive, check out the original post here. You can find the full Python code here if you’re interested in the technical details. Inspired by the 1960 Western film The Magnificent Seven, the financial world has adopted this name for a standout group of tech…
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What Every Trader Should Know About Correlation (But Few Do)
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Read more: What Every Trader Should Know About Correlation (But Few Do)Correlation assesses the relationship between two variables, essentially showing whether they increase or decrease simultaneously. For example, in trading, a strong positive correlation between Apple and Microsoft means their price movements are generally in sync. On the other hand, assets such as the USD and Gold often demonstrate a negative correlation. Gold prices typically decline…
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Building Better Portfolios: Python Strategies for Risk Management and Returns
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Read more: Building Better Portfolios: Python Strategies for Risk Management and ReturnsYou have selected the assets you would like to invest in, after spending hours analyzing data and now it is time to get into the market. Does it make sense to invest your capital using the same amount of money for each stock? Well, simply the answer is no. Modern Portfolio Theory Modern Portfolio Theory…