Johannesburg Interbank Average Rate (JIBAR) is the average interest rate at which banks lend money to one another in the interbank market in Johannesburg, South Africa. JIBAR is used as a benchmark for pricing financial products in South Africa. What is Sabor rate? A Sabor rate is the rate charged on money market accounts in … Read more
Hot money is defined as funds that are invested in short-term instruments in order to take advantage of interest rate differentials. The term is typically used in reference to investments made by central banks or large institutional investors. Hot money generally refers to large sums of money that are moved quickly in and out of … Read more
. Sortino Ratio: Definition, Formula, Calculation, Example How do you calculate ulcer index? The ulcer index is a measure of the severity of ulcers, and is calculated by dividing the sum of the lengths of all ulcers by the sum of the lengths of all healthy tissue. What is var risk management? Risk management is … Read more
What is quantitative analysis (QA), and how is it used in finance? How do you start a quantitative analysis? In order to start a quantitative analysis, the first step is to identify the problem that you want to solve. Once the problem has been identified, you need to gather data that is relevant to the … Read more
An alpha generator is a tool used by quantitative analysts to generate alpha, or return above the market return, from a given investment. The alpha generator takes into account a variety of factors, including the asset’s price, volatility, and liquidity, in order to generate a return that is higher than what the market would offer. … Read more
Weighted alpha is a measure of a stock’s performance that takes into account both the price movements of the stock and the volume of shares traded. The weighted alpha is calculated by taking the product of the stock’s alpha and the stock’s weight. The alpha is a measure of the stock’s price performance. The alpha … Read more
A quant fund is a type of hedge fund that employs quantitative analysis in order to make investment decisions. Quantitative analysis is a type of investment analysis that relies on mathematical and statistical models to make investment decisions. Quantitative analysts use these models to identify trading opportunities and make predictions about future market movements. Quantitative … Read more
PMPT is a framework for portfolio construction that emerged in the late 1970s. It is based on the idea that investors are risk-averse and seek to maximize expected return. PMPT is an extension of Modern Portfolio Theory (MPT), which was developed in the 1950s. PMPT relaxes some of the assumptions of MPT, such as the … Read more
A zero-beta portfolio is a portfolio that consists of a mix of investments that have a combined beta of zero. Beta is a measure of a security’s volatility in relation to the market. A security with a beta of 1 is just as volatile as the market, while a security with a beta of 2 … Read more
. Fama and French Three Factor Model: Definition, Formula, and Interpretation What is a factor based model? A factor based model is a type of statistical model that is used to analyze the relationships between variables. Factor based models are used to identify the underlying factors that influence the behavior of the variables. The factors … Read more
