Sheryl

Introducing Investment Risk: What Every Investor Needs to Know Investing inherently involves uncertainty. Every investment carries the potential for both profit and loss, making a thorough understanding of risk crucial for successful portfolio management. Risk, in the investment context, refers to the chance that an investment’s actual return will differ from its expected return. This … Read more

Understanding Asset Pricing Models and the Fama-French Three-Factor Model Asset pricing models are crucial tools in finance. They help investors understand and predict the returns of different assets. The Capital Asset Pricing Model (CAPM) is a widely known model. However, it has limitations. For example, CAPM struggles to fully explain the returns of assets based … Read more

Understanding Data Sources for Indian Equities Accessing real-time and historical stock market data is crucial for informed decision-making in the financial world. APIs (Application Programming Interfaces) have emerged as indispensable tools for obtaining this data efficiently and programmatically. They bridge the gap between data providers and consumers, enabling seamless integration of financial information into various … Read more

Decoding Running Terminology: What’s the Difference Between Moving Freely and Not? The English language is full of nuances, especially when it comes to seemingly similar phrases. Two such phrases, “on the run” vs “off the run,” often cause confusion due to their subtle differences and context-dependent meanings. While they both involve the concept of running, … Read more

Gauging Investment Success: Understanding YTD Return Year-to-Date (YTD) return is a vital metric for investors seeking to understand investment performance. It represents the percentage change in an investment’s value from the beginning of the current calendar year (January 1st) to the present date. Investors track YTD return to quickly gauge how their investments are performing … Read more

Understanding Market Returns: The Big Picture Investing involves navigating the complexities of market returns. What is the expected return on the market? It’s a fundamental question for every investor. Market return refers to the gain or loss experienced on an investment over a specific period. This can be expressed as a percentage increase or decrease … Read more

Unveiling Expected Shortfall: A Deeper Dive into Risk Assessment Conditional Value at Risk (CVaR), also known as Expected Shortfall (ES), is a crucial risk measure that extends beyond the limitations of Value at Risk (VaR). While VaR identifies a threshold for potential losses, CVaR quantifies the expected magnitude of losses exceeding that threshold. This makes … Read more

Defining Credit Risk: The Foundation Credit risk represents the potential for financial loss stemming from a borrower’s failure to meet their debt obligations. This encompasses various scenarios, including loan defaults and missed payments on bonds. For lenders, credit risk translates directly to lost principal and interest. Investors face similar losses with defaulted bonds or other … Read more

Unveiling Data Shape: Asymmetry and Symmetry in Distributions Understanding data distributions is fundamental to statistical analysis. The shape of a distribution reveals valuable insights about the data. One key characteristic is symmetry. A symmetrical distribution is balanced. Imagine folding the distribution in half. The two halves would mirror each other. The normal distribution, often visualized … Read more

Understanding the 200-Day Moving Average The 200-day moving average (DMA) is a simple way to track the average closing price of the S&P 500 over the past 200 trading days. Imagine it as a smoother version of the S&P 500’s price, ironing out the daily ups and downs to reveal the underlying trend. This long-term … Read more