Mathematics and Econometrics

Learn the practical applications of mathematics and econometrics in finance. This series of blogs covers time series analysis, portfolio management, probability distribution, econometrics and many mathematical models.

Top Picks

Introduction to Statistical Thinking for Smarter Choices and Analysis

Statistical thinking, a beginner's guide! Making decisions with limited information is a part of life. Get introduced to the way of making decisions using a structured approach through statistics....
8 min read

Exploring Linear Regression Analysis in Finance and Trading

Getting under the hood of linear regression where we demystify the jargon regularly encountered on the topic. Let’s dive in!...
13 min read

Stock Market Math: Essential Concepts for Algorithmic Trading

Find out the essential stock market maths concepts crucial for algorithmic trading. This guide simplifies complex mathematical topics, such as probability, calculus, linear regression and much more!...
27 min read

Standard Deviation in Trading: Calculations, Use Cases, Examples and more

Learn about standard deviation in trading: its calculations, use cases, examples, and more. Enhance your trading strategies by learning to use this statistical measure for assessing risk and volatility in financial markets....
21 min read

A comprehensive guide to Dijkstra algorithm

Learn all about the Dijkstra algorithm! Dijkstra algorithm is one of the greedy algorithms to find the shortest path in a graph or matrix....
15 min read

Kurtosis & its Application in Risk Evaluation

This blog discusses the concept of kurtosis and its application in understanding the risk profiles of financial securities besides common misconceptions regarding its calculation and interpretation....
9 min read

All About Time Series: Analysis and Forecasting

Learn about Time Series Data Analysis and its applications in Python. Learn types, components, decomposing, forecasting, calculating, plotting and validating Time Series....
20 min read

Fibonacci Numbers - Harmonic Patterns

By finding patterns of varying lengths and magnitudes, the trader can then apply Fibonacci ratios to the patterns and try to predict future movements....
8 min read

Hurst Exponent: Calculation, Values and More

This comprehensive article gives you an insight into the Hurst Exponent and shows you how to calculate it with the help of an example....
6 min read

Mathematics and Econometrics

Laying the Groundwork for Ito's Lemma and Financial Stochastic Models

Explore the foundational concepts behind Ito's Lemma in trading, including the chain rule, deterministic and stochastic processes, the drift and volatility components of stock prices, and how stocks follow a Weiner process....
Mathematics and Econometrics
9 min read

The Risk-Constrained Kelly Criterion: From the foundations to trading

Learn about the risk-constrained Kelly Criterion to make your trading have less drawdown and better strategy performance!...
Mathematics and Econometrics
6 min read

A time-varying-parameter vector autoregression model with stochastic volatility

Learn about the TVP-VAR model that is being heavily used in macroeconomics. It can give you better results than a basic VAR for trading. Enjoy it!...
Mathematics and Econometrics
15 min read

Stock Market Math: Essential Concepts for Algorithmic Trading

Find out the essential stock market maths concepts crucial for algorithmic trading. This guide simplifies complex mathematical topics, such as probability, calculus, linear regression and much more!...
Mathematics and Econometrics
27 min read

Fibonacci Retracement: Trading Strategy, Python implementation, and more

Get to know all about Fibonacci retracement trading strategy in Python. Master the art of identifying potential price reversal levels using Fibonacci ratios for informed trading decisions. This blog makes for a beginner-friendly guide with everything included from basics to advanced....
Mathematics and Econometrics
9 min read

Standard Deviation in Trading: Calculations, Use Cases, Examples and more

Learn about standard deviation in trading: its calculations, use cases, examples, and more. Enhance your trading strategies by learning to use this statistical measure for assessing risk and volatility in financial markets....
Mathematics and Econometrics
21 min read

Autocorrelation and Autocovariance: Calculation, Examples, and More

Autocorrelation and Autocovariance are essential in the time series analysis topic! This tutorial will guide you on their definitions, their computations and plotting using Python and R. Read now!...
Mathematics and Econometrics
10 min read

Covariance and Correlation: Intro, Formula, Calculation, and More

Covariance and Correlation - what are they? Learn the various concepts, industry applications and Python computations in this tutorial....
Mathematics and Econometrics
24 min read

Probability Trading: Understanding, Formula, Application, Types, and Properties

Probability for Trading is covered in a detailed manner in this blog. Learn how you too can measure the likelihood of the occurrence of an event and facilitate decision-making in your trading....
Mathematics and Econometrics
8 min read

Linear Regression: Assumptions and Limitations

Linear regression assumptions, limitations, and ways to detect and remedy are discussed in this 3rd blog in the series. We use Python code to run some statistical tests to detect key traits in our models....
Mathematics and Econometrics
12 min read