Author: Harbourfront Technologies

Using Machine Learning to Predict Market Volatility

The unpredictability of the markets is a well-known fact. Despite this, many traders and portfolio managers continue to try to predict market volatility and manage their risks accordingly. Usually, econometric models such as GARCH are used to forecast market volatility. In recent years, machine learning has been shown to be …

How Much Should I Pay For Travel Insurance?

How much should you realistically pay for travel insurance? There is no easy answer, as the price of insurance can vary based on a variety of factors, including your age and destination. However, by understanding what goes into calculating premiums and what coverage is available, you can make an informed …

Can Options Volume Predict Market Returns?

Most of the research in equity and index options has been devoted to volatility and the volatility risk premium. Relatively less attention is paid to options volume. To tackle this issue, article examined options volume from the perspective of in-the-money options order imbalance. It showed that the public directional …

Mean-Reverting Process in Real Option Valuation

What does the mean reversion of asset price have to do with options pricing? We have explored this topic previously for financial options. However, the mean-reverting property of an asset affects not only the values of financial options but also real options. A real option is the right – but …

Valuation Adjustment Mechanism (VAM): Definition, Agreement, Example, Usage

The term mergers and acquisitions (M&A) refers to the consolidation of companies through financial transactions. This process involves one company acquiring another company’s shares. Several terms and conditions may apply to these transactions. However, these terms may differ from one market to another. The valuation adjustment mechanism is unique to …