Category Archives: Financial techniques

La rubrique “Aspects techniques” contient des billets sur les aspects techniques de l’application SimTrade : compatibilité avec les navigateurs, architecture, bogues résolus, etc.

Implied Volatility

In this article, Jayati WALIA (ESSEC Business School, Grande Ecole – Master in Management, 2019-2022) explains the concept of implied volatility, its interpretation in options pricing and methods of computation. Introduction Volatility is measure of fluctuations observed in an asset’s … Continue reading

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Warren Buffet and his basket of eggs

Warren Buffet and his basket of eggs In this article, Rayan AKKAWI (ESSEC Business School, Master in Strategy & Management of International Business (SMIB), 2021-2022) analyzes the two following quotes “Do not put all eggs in one basket” and “Put … Continue reading

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Momentum Trading Strategy

Momentum Trading Strategy This article written by Akshit Gupta (ESSEC Business School, Master in Management, 2019-2022) explains the momentum trading strategy. Introduction The momentum trading strategy is a strategy where a trader buys a security when its market price starts … Continue reading

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Returns

In this article, Jayati WALIA (ESSEC Business School, Grande Ecole – Master in Management, 2019-2022) explains how returns of financial assets are computed and their interpretation in the world of finance. Introduction The main focus of any investment in financial … Continue reading

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Supply and Demand

Supply and Demand In this article, Diana Carolina SARMIENTO PACHON (ESSEC Business School, Master in Strategy & Management of International Business (SMIB), 2021-2022) explains the economic concept of supply and demand, which is key to understand the way markets work. … Continue reading

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Risk Aversion

Risk Aversion In this article, Diana Carolina SARMIENTO PACHON (ESSEC Business School, Master in Strategy & Management of International Business (SMIB), 2021-2022) explains the economic concept of risk aversion, which is key to understand the behavior of participants in financial … Continue reading

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Specific risk

In this article, Youssef LOURAOUI (Bayes Business School, MSc. Energy, Trade & Finance, 2021-2022) explains the specific risk of financial assets, a key concept in asset pricing models and asset management in practice. This article is structured as follows: we … Continue reading

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Systematic risk

In this article, Youssef LOURAOUI (Bayes Business School, MSc. Energy, Trade & Finance, 2021-2022) presents the systematic risk of financial assets, a key concept in asset pricing models and investment management theories more generally. This article is structured as follows: … Continue reading

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The Monte Carlo simulation method for VaR calculation

In this article, Jayati WALIA (ESSEC Business School, Grande Ecole – Master in Management, 2019-2022) explains the Monte Carlo simulation method for VaR calculation. Introduction Monte Carlo simulations are a broad class of computational algorithms that rely majorly on repeated … Continue reading

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Implementing Markowitz asset allocation model

In this article, Youssef LOURAOUI (Bayes Business School, MSc. Energy, Trade & Finance, 2021-2022) explains how to implement the Markowitz asset allocation model. This model is used to determine optimal asset portfolios based on the risk-return trade-off. This article follows … Continue reading

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