This is a summary of links featured on Quantocracy on Friday, 07/19/2024. To see our most recent links, visit the Quant Mashup. Read on readers!
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Portfolio Hedging with Put Options [Robot Wealth]There are 2 good reasons to buy put options: Because you think they are cheap Because you want downside protection. You want to use the skewed payoff profile to protect a portfolio against large downside moves without capping your upside too much. The first requires a pricing model. Or, at the least, an understanding of when and under what conditions options tend to be cheap. The second doesnt
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The Impact of Amortizing Volatility across Private Investments [Alpha Architect]While publicly traded stocks, bonds, and real estate have their prices constantly adjusted throughout the day, leading to lots of volatility, private capital managers have significant discretion as to when and how they mark-to-market or mark-to-model their portfolios (typically valued quarterly). Because their valuations are less frequent, private equity returns appear smoother. If the lagged
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Research Review | 18 July 2024 | Artificial Intelligence and Finance [Capital Spectator]The Finance AI Challenge: An Evaluation of the Top Six Free Web-based AI Models David Krause (Marquette University) June 2024 This article evaluates six free web-based AI models-ChatGPT, Gemini, Copilot, Claude, Perplexity, and Meta AI-in their performance on finance-related tasks. Utilizing a structured approach, we assessed the models abilities to handle factual, conceptual, and computational