This is a summary of links featured on Quantocracy on Sunday, 07/18/2021. To see our most recent links, visit the Quant Mashup. Read on readers!
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Create a Personal Portfolio/Wealth Simulation in Python (Part 2) [Python For Finance]Welcome to Part 2 of the series of posts dealing with how to build your own python based personal portfolio /wealth simulation model. At the end of the first post (which can be found here), we got to the point where we had modelled some inflows, some outflows, we had applied an annual salary raise to our future income flows, along with applying various tax rates to both our active income (salary)
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Man vs. Machine: Stock Analysis [Quantpedia]Nowadays, we see an increasing number of machine learning based strategies and other related financial analyses. But can the machines replace us? Undoubtedly, AI algorithms have greater capacities to digest big data, but as always in the markets, everything is not rational. Cao et al. (2021) dives deeper into this topic and examines the stock analysts. Target prices and earnings forecasts
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The Misery Index and Future Equity Returns [Alpha Architect]Prospect theory was developed by Daniel Kahneman and Amos Tversky in 1979. The theory starts with the concept of loss aversionthe observation that people react differently between potential losses and potential gains. Thus, people make decisions based on the potential gain or loss relative to their specific situation rather than in absolute terms. Faced with a risky choice leading to gains,
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Research Review | 16 July 2021 | Forecasting [Capital Spectator]Forecasting the Long-Term Equity Premium for Asset Allocation Athanasios Sakkas (U. of Nottingham) and Nikolaos Tessaromatis (EDHEC) July 12, 2021 Long-term country equity premium forecasts based on a cross-sectional global factor model (CS-GFM), where factors represent compensation for risks proxied by valuation and financial variables, are superior, statistically and economically, from forecasts