Quant Risk Management Statistical or mathematical techniques have been used in investment management and finance to better understand risk but there are limitations, sometimes severe limitations. At the end of the day, there is no substitute for common sense and an understanding of the sometimes complex underlying drivers of price relationships that often become oversimplified

Japan’s quarter on quarter GDP growth recorded a 0.90% increase versus consensus estimates of 1.0% and a prior quarter’s alarming 3.8% decline. There are several ways to read this.

Equity Market Review Once again equity markets are looking vulnerable. The high octane markets in Asia such as Shanghai, HK and Bombay have certainly corrected sharply, and this amid quite benign news. How do we make sense of these markets? The retail investor and, quite embarrassingly, the professional investor panicked in the second half of

Japan’s quarter on quarter GDP growth recorded a 0.90% increase versus consensus estimates of 1.0% and a prior quarter’s alarming 3.8% decline. There are several ways to read this. One is that growth was positive on a quarterly basis and we should all be thankful for it, let’s all go and buy equities. The other

Here is an analysis of the dispersion of returns in the various sectors of the European equity markets as defined by the Stoxx sub sector indices. Dispersion here has been defined as the standard deviation of returns across the constituent stocks in a Stoxx sector index. I looked at 2 year daily data as well