Modeling Equities Returns: The Linear Case | Hudson River Trading
Built by coders, led by coders. At HRT we are mathematicians, computer scientists, statisticians, physicists, and engineers. We trade on more than 200 markets worldwide, with offices and teams in 6 countries. Building the future of trading together. As a liquidity provider, HRT develops automated trading algorithms designed to provide the best prices to our clients. Read More ▸ Read More ▸ Read More ▸ Join our vibrant community of curious thinkers and eager automators, working together at the forefront of innovation. A place where kindness and excellence converge across six countries and nearly all the world’s electronic markets. Full-time & internship opportunities for current undergraduates, graduating seniors, Masters, or PhD students. BY RAY ZHANG ALGO MAR 9, 2023 Having an accurate high-level overview of market dynamics is crucial in algorithmic trading. At HRT, many trading teams curate their own models to understand risk and performance profiles of their portfolios. Here we’ll d
Introduction Having an accurate high-level overview of market dynamics is crucial in algorithmic trading. At HRT, many trading teams curate their own models to understand risk and performance profiles of their portfolios. Here we’ll dig into a specific class of models called factor models and understand how it encapsulates asset relationships, allows for portfolio optimization, and explains investment performance attribution. Modeling The first step to making money and managing risk in the stock market is having an accurate model of where the sources of profit and loss are coming from.…
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