Create AI Video
Create AI Video

Dr. Nadeem

bilalrashid3456
2024-04-21 14:11:20
Advance Mathematical Tools for Financial ModelingWhat math we coveredWe covered basic probability theory, algebra, variance/ standard deviation, averages and basic regressions.Most financial modeling does not take very advanced math, with the exception of some derivatives models.But there are a few more useful tools we didn't have time to cover.If you have a complicated custom model, such that the algebra is getting too difficult to do by hand, you can use a computer algebra system.Statistics ToolsWe covered Ordinary Least Squares (OLS) regressions, which is what anyone means if they just say regression.There are many more kinds of regressions, we can't even mention them all here. But most likely to be useful include logistics regression for when probabilities are dependent variables and panel regression + fixed effects for when you are dealing with multiple instruments over time.There are many time - series models to cover, as was mentioned in the forecasting lecture.Machine learning /AI can be used to make classifications or predictions.Mathematical Tools ResourcesOptimization with SciPyComputer Algebra with SymPyLevenshtein Distance using fuzzywuzzyIntro to logistic Regression in PythonIntro to Panel Regression in PythonStatistical Models in statsmodelsMore statistical model in linearmodelsMore statistical Tools in ScipyGetting started with Machine Learning in Python.Presenting ModelsWe didn't have very much time to cover presenting the model in Python, other than formatting text.For Excel, the model is already presented so just structure the workbook well.A well structured Jupyter notebook or Python script is important for another modeler to pick up where you left off. But it still is not an ideal format for non technical consumers of your model.Create ReportsLess technical consumers of the model may just want the model conclusions and not to actually use the model themselves.Advanced PlottingWe covered very basic plots using pandas.It provides all thew plotting functionality to pandas and and any pandas plots can be adjusted using other options.Several libraries exists for interactive plots, which allow for dropdowns, sliders, selectingpoints, zooming, tooltips and more.Other plotting styles are becoming more popular, in which you just describe the data and it can generate interactive plots for you.Presentation ResourcesIntro to Creating HTML Reports in PythonCreate HTML Reports and Output to PDFTemplating HTML.

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