Quantitative Finance

Quant Investment & Machine Learning is indeed a very large and diverse field. Therefore, it is difficult to be a master of all subjects. Below are a few questions I find quite useful for the preparation. If you are interested in the this topic, you can also find the previous…

Little known outside the community, Jane Street is one of the world’s largest market-maker who trades more than $17 trillion worth of securities in 2020. Yet, the company is also well known for its difficult interview questions. Here I list a few questions I find online, and I feel quite…

Estimating a trend in a time series and using that trend to predict future values of the time series is the simplest method of forecasting. We can examine two types of trends, linear trends, and log-linear trends, and discuss how to choose between them. Linear Trend Models The simplest type…

And how hedge funds use them to make investment decisions — Terminology Asset returns Asset returns imply the price change one asset can have over a certain time period. The significance of asset returns and their distribution is to understand how to maximize profits and minimize the risk of owning an investment. Volatility Volatility is an indicator of the speed of a stock price change…

In this article I will implement and backtest a strategy based on a paper ‘Trading in the Presence of Cointegration’ (Galenko et al. 2009). Statistical arbitrage strategies are based on the same principles as pairs trading strategies, but they involve trading in a portfolio of several cointegrated assets instead of…

Below are a series of questions I find from websites that others share from their recent experience. How these are helpful to whoever are preparing for their interviews :) ▌Source：Point72 Question Describe the motivation behind random forests. What are two ways in which they improve upon individual decision trees? Answer …