Category: Quant Trading

Introduction Portfolio diversification is a crucial risk management technique used by investors to protect their investments and enhance their returns. Here, we’ll dive into what portfolio diversification means, why it’s important, and how investors use it to minimize risk. What Is Portfolio Diversification? Portfolio diversification involves spreading investments across a variety of assets, sectors, or…

Introduction Backtesting is the process of testing a trading strategy using historical data to see how it would have performed in the past. This helps traders understand if their strategy has potential profitability before risking real money. The goal is to simulate the trading strategy in a past market environment and analyze the outcomes. If…

Introduction Data analysis is essential in any research, decision-making, or business strategy. However, before any meaningful insights can be drawn from data, the data must be prepared and polished. This is where data cleaning and preprocessing come into play. These two steps are crucial for ensuring data quality, accuracy, and relevance. Let’s break down each…

Introduction Programming languages are tools that help us write instructions for computers to perform tasks. They vary in design and use cases, with some specialized for data analysis, others for web development, and more. Let’s explore two prominent languages, Python and R, with a focus on their key libraries and frameworks. 1. Python: A Versatile…

Introduction Probability theory is a branch of mathematics that helps us measure how likely an event is to happen. Imagine you have a coin, and you flip it. It can either land on “heads” or “tails.” Probability theory allows us to figure out the chance of each of these outcomes happening. Key Concepts in Probability…