Factor Investing Models in Finance
Introduction Factor investing is a systematic approach to investment management that uses specific characteristics, known as "factors," t…
Decoding Uncertainty: A Journey Through Bayes' Classifier and Its Modern Applications
Bayes' classifier is a statistical classification method based on Bayes' Theorem . It is widely used in supervised learning to classify dat…
Optimizing k-Nearest Neighbors for Large-Scale Data: Efficient Search, Dimensionality Reduction, and Real-World Applications
Introduction The k-Nearest Neighbors (k-NN) algorithm is a classic, non-parametric machine learning technique used for both classification and reg…
Mechanics of Futures Markets
Futures markets are essential in modern financial systems, allowing participants to hedge risks, speculate on price movements, and ensure price sta…
Navigating the Complex World of Derivatives: Markets, Contracts, and Trading Strategies
The financial ecosystem operates through various derivative markets and contracts designed to manage risks, speculate, or facilitate trading activi…
Time Value of Money (TVM)
The Time Value of Money (TVM) is a fundamental concept in finance that asserts the idea that money available today is worth more than the same amo…
Uncovering Hidden Themes: Advanced Topic Modeling with Latent Dirichlet Allocation
Abstract Latent Dirichlet Allocation (LDA) is a powerful generative probabilistic model used for identifying hidden topics within large datasets of…
LASSO Regression: A Powerful Tool for Feature Selection and Regularization
LASSO (Least Absolute Shrinkage and Selection Operator) regression is a type of linear regression that enhances prediction accuracy and interpretab…
Ridge Regression: A Powerful Tool to Combat Multicollinearity
Introduction Ridge regression, also known as Tikhonov regularization, is a form of linear regression that introduces a regularization parameter to de…
