Alpha Beta Blog
Published in

Alpha Beta Blog

Photo by Leroy Evans on Unsplash

Avoiding Nonlinear Risks

That can destroy your portfolio

I realized after publishing my article on risk factors that I forgot to talk about the importance of nonlinear factors and measuring your portfolio’s exposure to them.

The classic example is short vol, which is a bit like picking up dollar bills in front of a steamroller. Most of the time you end up happy with a lot of dollar bills, but if…




An attempt to unravel the mystery of stock markets and make some profits along the way. Follow Alpha Beta Blog to join our community!

Recommended from Medium

The happiness money can buy

New Business? It’s a Good Time to Think About Retirement Plans

New business? It’s a good time to think about retirement plans.

How to Get a Realtor Commission Rebate in NYC

Invest — Should You Invest In Raw Land

The Benefits of Buying a NYC Townhouse over a Condo

Get your savings habit in gear with America Saves Week

Learn how can traders simply recognise and benefit from wave patterns

Buying a House with Cash in NYC

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Tony Yiu

Tony Yiu

Data scientist. Founder Alpha Beta Blog. Doing my best to explain the complex in plain English. Support my writing:

More from Medium

Americans are Expecting Inflation to Decline from Current Levels

Understanding The Economic Machine Part 1

The Expectation of Sums is Not the Sum of Expectations

Quantitative Researcher Interview Questions from Top Trading Shops