LoadingLoading
Specialized documentation, mathematical formulations, and empirical backtesting frameworks for quantitative finance basics.
Comprehensive guide, formulas, and quantitative methods for What is AAA credit rating?.
公司的盈利能力在很大程度上受到经济周期的影响。在经济扩张期，利润大幅上升，消费支出增加；而在经济衰退期，消费者支出减少，利润骤降甚至可能出现亏损。尽管周期性行业（如商品和金融）公司的利润波动显著高于防御性行业（如公用事业和制药），但在深度衰退面前，只有少数公司能够维持稳定的盈利能力。
The CBOE Volatility Index (VIX) is a real-time index that represents the market's expectations for the relative strength of recent price changes in the S&P 500 Index (SPX).
- [Primary Market](一级市场_Primary Market.md)
T+1 (T+2, T+3) refers to the abbreviation of the settlement period of securities transactions.
VIX options are a non-stock index option whose underlying asset is the Cboe Volatility Index. VIX options offer both call and put options.
The primary market is the source of new securities. An exchange is where businesses, governments and other groups raise capital through debt or equity securities, often on exchanges, where first offerings are often made.
Mid-cap (or mid-cap) is a term used to describe companies with market capitalizations between $2 billion and $10 billion. As the name suggests, mid-cap companies fall somewhere between large-cap (or mega-cap) and small-cap companies.
Binary options are a type of financial derivative that allow investors to make all-or-nothing bets on events and asset price movements, and their popularity has grown dramatically in recent years. But critics, including U.S.
The 80-20 rule, also known as the Pareto principle, is a common statement that asserts that in any given event, 80% of the results (or outputs) are caused by 20% of the causes (or inputs).
The secondary market is where investors buy and sell securities. In the secondary market, transactions occur between other investors and traders rather than between the companies that issued the securities.
Dealers are individuals or firms that buy and sell securities for their own account, and may do so through a broker or other means. Traders act as the primary participants in a transaction, while brokers act as agents, executing orders for clients.
Comprehensive guide, formulas, and quantitative methods for Value Investing.
Comprehensive guide, formulas, and quantitative methods for Margin.
Margin trading is when investors buy assets by borrowing money from a bank or broker. Margin trading refers to the initial payment an investor makes for an asset - for example, 10% down payment and 90% financing.
A bond is a fixed-income investment instrument in which an individual lends money to the government or company at a certain interest rate for a fixed period of time. The borrowing entity repays the principal and interest to the bondholders upon maturity.
The bond market is often referred to as the debt market, fixed income market, or credit market. It is a collective term for all transactions and issuances of debt securities.
Debt restructuring is a process used by companies, individuals and even countries to avoid the risk of default, such as by negotiating lower interest rates.
Open market operations (OMOs) are the purchases and sales of securities by the Federal Reserve System (Fed) in the open market. The Federal Reserve conducts open market operations to regulate the money supply held in U.S. bank reserves.
Comprehensive guide, formulas, and quantitative methods for Tariff.
Comprehensive guide, formulas, and quantitative methods for Keynesian Economics.
Interest rate is the fee charged by the lender to the borrower, usually expressed as a percentage of the principal (i.e., the loan amount). The interest rate on a loan is generally calculated annually and expressed as an annual percentage rate (APR).
A put option (or "put") is a contract that gives the option buyer the right to sell (or short) a certain amount of an underlying security at a predetermined price within a specified period of time, but does not obligate performance.
Comprehensive guide, formulas, and quantitative methods for Short Selling.
Rate of change (ROC) refers to how quickly a variable changes over a specific period of time.
A convertible bond is a fixed-income corporate debt security that provides interest payments but can be converted into a predetermined number of common shares or equity.
$2.65 Billion and Establish Saks Global, A Technology-Powered Luxury Retail Company](https://www.neimanmarcusgroup.com/HBC,-Parent-of-Saks-Fifth-Avenue,-to-Acquire-Neiman-Marcus-Group-for-2-65-Billion...
A business cycle refers to a type of fluctuation in a country's overall economic activity - a cycle consists of expansions in many economic activities that occur at approximately the same time, followed by a similar general contraction.
Comprehensive guide, formulas, and quantitative methods for Fixed Income.
Treasury bonds (T-bonds) are government debt securities issued by the U.S. federal government with a maturity of 20 or 30 years.
$$ \begin{aligned}&\text{GDP} = \text{C} + \text{G} + \text{I} + \text{NX} \\&\textbf{其中：} \\&\text{C} = \text{消费} \\&\text{G} = \text{政府支出} \\&\text{I} = \text{投资} \\&\text{NX} = \text{净出口} \\\end{al...
Treasury notes (T-notes for short) are tradable U.S. government debt securities with fixed interest rates and maturities between two and ten years. Treasury bills provided by the government may be purchased through competitive or noncompetitive bidding.
Gross National Product (GNP) is an estimate of the total value of all final goods and services produced during a specified period by the factors of production owned by a country's residents.
The base year is the first year in a series of years in an economic or financial index. In this context, the base year is often set at an arbitrary level - 100. To keep the data in a particular index up to date, the base year is updated regularly.
Comprehensive guide, formulas, and quantitative methods for Gini Index.
A growth curve is a graphical representation of how something changes over time. Taking the example of a country's population growth, a growth curve might be a graph showing the increase in the country's population over time.
Growth rate is the percentage change in a variable over a specific period of time. The growth rate can be positive or negative, depending on whether the size of the variable is increasing or decreasing over time.
Compound interest is the reinvestment of an asset's earnings, including capital appreciation or interest, to generate additional income over time.
Compound annual growth rate refers to the rate of return an investment needs to earn each year in order to grow from an initial balance to a final balance over a given interval of time.
Foreign exchange (FX) refers to the global electronic international currency and currency derivatives trading market.
The foreign exchange market, often referred to as foreign exchange or FX, is a global market dedicated to trading the currencies of different countries.
A multi-factor model is a financial model that uses multiple factors in its calculations to explain market phenomena and/or equilibrium asset prices.
Comprehensive guide, formulas, and quantitative methods for Great Depression.
Unemployment is a situation in which a person is actively looking for work but is unable to find one. Unemployment is considered a key indicator of the health of the economy. The most commonly used measure of unemployment is the unemployment rate.
Comprehensive guide, formulas, and quantitative methods for Macroeconomics.
Oligopoly is a market structure in which a few companies control the market. In the presence of an oligopoly, producers can indirectly or directly limit output or prices in order to obtain higher returns.
Hedging is an investment strategy designed to reduce potential losses from other investments because the prices of those investments typically move in the opposite direction.
$$ \text{市盈率} = \frac{\text{每股市场价值}}{\text{每股收益}} $$
Annual rate of return refers to the return on an investment over a certain period of time, usually expressed as a time-weighted annual percentage. Sources of returns can include dividends, capital returns and capital appreciation.
The future value of an annuity is the amount calculated by applying a specific rate of return or discount rate to a set of periodic payments at a specific date in the future. The higher the discount rate, the greater the annuity's future value.
An annuity table is a tool used to determine the present value of an annuity or other structured series of payments.
Comprehensive guide, formulas, and quantitative methods for Hyperinflation.
A housing bubble is a rise in home prices driven by demand, speculation and excessive spending. Real estate bubbles typically begin with increased demand amid limited supply. Speculators further drive up demand by pouring money into the market.
A quote refers to the last traded price of a stock, bond, or any other asset. In addition, most asset classes also quote bid and ask prices, which determine the final transaction price.
In an inverted yield curve, yields decrease as maturity approaches. The inverted curve, sometimes called a negative yield curve, has proven to be a reliable recession indicator in the past.
Neoliberalism is a policy model that encompasses both politics and economics. It favors private enterprise and seeks to transfer control of economic factors from government to the private sector.
Beta is a measure of market risk. Unleveraged beta (or asset beta) measures a company's market risk without the impact of debt. A "delevered" beta eliminates the financial impact of leverage, thereby isolating only the risk posed by the company's assets.
The efficient market hypothesis (EMH), also known as efficient market theory, proposes the assumption that stock prices reflect all available information and that consistently generating excess returns is impossible.
Comprehensive guide, formulas, and quantitative methods for Limited Partnership (LP).
Futures are contracts to buy or sell a specific underlying asset at a specified price on a future date. The underlying asset can be a commodity, security or other financial instrument.
Financial leverage refers to the concept of using borrowed capital as a source of funds. Leverage is typically used when a business invests in itself for expansion, acquisitions, or other means of growth.
A leveraged buyout (LBO) occurs when one company acquires another company by borrowing large amounts of money to cover the cost of the acquisition. These borrowings can be in the form of bonds or loans.
$$ \text{债务权益比率} = \frac{\text{总负债}}{\text{总股东权益}} $$
The underlying asset is the financial asset on which the derivative price is based. Options are an example of a derivative. A derivative is a financial instrument whose price is based on another asset. The underlying asset gives the derivative its value.
Comprehensive guide, formulas, and quantitative methods for Comparative Advantage.
"Gross margin" refers to a financial metric used by analysts to assess a company's financial health. Gross profit margin is the profit after deducting the cost of goods sold (COGS).
Exchange rate refers to the rate at which one currency is exchanged for another currency. It affects trade and financial flows between countries. Exchange rates are affected by the value of the domestic currency and the value of foreign currencies.
Volatility is a statistical measure of the dispersion of returns on a specific security or market index. Usually measured by the standard deviation or variance of returns. In most cases, the higher the volatility, the riskier the security.
Liquidity refers to the efficiency or ease with which an asset or security can be quickly converted into cash without affecting its market price. Cash itself is the most liquid of all assets.
Comprehensive guide, formulas, and quantitative methods for Bear Market.
A bull market is a financial market state characterized by rising prices or expectations of rising prices.
Present value (PV) is the current value of a future sum of money or series of cash flows. Its calculation is based on discounting future value at an estimated rate of return.
The Producer Price Index (PPI) measures the average change over time in the price domestic producers receive for their output.
The knowledge economy is a consumption and production system based on intellectual capital. In particular, it refers to the ability to exploit scientific discoveries and apply research.
Nasdaq is a global electronic securities trading market. Its name was originally an acronym for National Association of Securities Dealers Automated Quotations.
Economic growth is the increase in the production of goods and services in the economy during a period compared to the previous period. It can be measured in nominal or real terms.
Economic order quantity (EOQ) is the ideal number of units that a business should purchase to meet demand while minimizing costs associated with inventory, such as carrying costs, stock-out costs, and ordering costs.
Comprehensive guide, formulas, and quantitative methods for Absolute Advantage.
The "federal funds rate" refers to the target interest rate range set by the Federal Open Market Committee (FOMC). The target is the interest rate at which commercial banks lend each other's excess reserves overnight.
A joint stock company is a business owned by its investors, each of whom owns a share of the company based on the amount of his or her investment.
Comprehensive guide, formulas, and quantitative methods for Stock Market.
$0.1625 per Common Share Producing a Forward Yield of 4.42% and Announces a Special Dividend Payment of $0.15 per Common Share](https://www.unitedbancorp.com/news-market-info/press-releases/press-rele...
Equity, often called stockholders' equity (or owners' equity in the case of a privately held company), represents the amount of money that would be returned to shareholders if all of a company's assets were liquidated and all debts were paid.
Equity dilution is when a company issues new shares, causing existing shareholders to reduce their percentage of ownership in the company.
A free market is an economic system based on supply and demand with little or no government control.
Comprehensive guide, formulas, and quantitative methods for Free Trade.
The Phillips Curve is an economic theory that states there is a stable and inverse relationship between inflation and unemployment.
$80 - $62.2) x 1,000 = $17,780]。持有短仓（卖方）的交易者将损失 17,780 美元。
Passive investing is an investment strategy that maximizes returns by minimizing buy and sell transactions.
Economies of scale are the cost advantages a company gains when production becomes efficient. Companies can achieve economies of scale by increasing production and reducing costs. This is because the cost is spread over more goods.
Comprehensive guide, formulas, and quantitative methods for Security.
Monetary policy is a set of tools used by a country's central bank to control the overall money supply and promote economic growth, using strategies such as revising interest rates and changing bank reserve ratios.
Money velocity measures the rate at which money is exchanged in the economy. It is the number of times currency is transferred from one entity to another. Money velocity also refers to the extent to which a unit of currency is used in a given period of time.
The discount rate is the interest rate the Federal Reserve charges commercial banks and other financial institutions for short-term loans. The discount rate applies to the Federal Reserve's lending facility, known as the discount window.
A trade deficit is when a country's imports exceed its exports. A trade deficit is also called a negative balance of trade (BOT).
Comprehensive guide, formulas, and quantitative methods for Balance Sheet.
Comprehensive guide, formulas, and quantitative methods for Capitalism.
Capitalization is an accounting method that works by incorporating costs into the value of an asset and spreading those costs over the asset's useful life, rather than directly expensing the costs in the period in which they are incurred.
Marginal revenue is the maximum amount a consumer is willing to pay for an additional good or service. It also represents the additional satisfaction or utility that consumers gain when purchasing additional goods or services.
A forward price is a price agreed upon by a buyer and seller in a forward contract for a predetermined delivery price of an underlying commodity, currency, or financial asset that will be paid at a determined date in the future.
A forward contract is a customized agreement between two parties to buy or sell an asset at a specific price in the future.
Comprehensive guide, formulas, and quantitative methods for Inflation.
Comprehensive guide, formulas, and quantitative methods for Quantitative Easing.
Par value is a financial term used to describe the nominal or dollar value of a security, usually given by the issuer. For bonds, face value is the amount paid to the holder at maturity.
$132 Million in 11 Disruptive Technology Startups](https://www.intc.com/news-events/press-releases/detail/1074/intel-capital-invests-132-million-in-11-disruptive)."
Prime brokerage is a comprehensive set of services provided by investment banks and other financial institutions to hedge funds and other large investment clients who need to borrow securities or cash in order to net settlements and thereby realize absolute...
Comprehensive guide, formulas, and quantitative methods for Initial Public Offerings (IPOs).
This list is compiled by TheQuantHackers. This section covers 192 fundamental concepts required for quantitative finance. Contributions are welcome. The document is divided into the following main sec...
- [Conditional Probability](条件概率_Conditional Probability.md)
In statistics, a p-value is defined as a number that expresses the probability that you will obtain a value that is at least equal to or greater than the actual observed value if the null hypothesis is true.
The T-test is an inferential statistical method used to determine whether there is a significant difference between the means of two sets of data and the relationship between them.
The Z-score is a statistical measurement that describes the relationship between a value and the average of a set of values. Z-scores are measured as standard deviations from the mean.
The Z-test is a statistical test used to determine whether two population means are different when the variances are known and the sample sizes are large. It can also be used to compare a mean to a hypothetical value.
The coefficient of variation (CV) is a statistical measure of the spread of data points in a data set around the mean.
The law of large numbers applies to probability and statistics. It states that as the sample size grows, the mean of the sample will get closer to the mean of the entire population because the larger sample is more representative of the entire population.
Conditional probability is a basic concept in probability theory, which involves the probability of another event occurring given that one event has occurred.
A probability distribution is a statistical function that describes all possible values of a random variable within a given range and the likelihood of their occurrence. The range is bounded by a minimum and maximum value.
The normal distribution, also known as the Gaussian distribution, is a probability distribution that is symmetric about the mean, indicating that data close to the mean occur more frequently than data far from the mean.
In the finance and investment industries, correlation is a statistic that measures the extent to which two securities move in relation to each other.
The correlation coefficient is a statistic that measures the strength of the linear relationship between two variables. Its value range is between -1 and 1. A correlation coefficient of -1 indicates a perfect negative or anti-correlation.
Systematic sampling is a probability sampling method in which sample members are selected from a larger population based on a random starting point but at fixed periodic intervals.
Joint probability refers to a statistical metric used to calculate the likelihood that two events will occur simultaneously. Simply put, the joint probability is the probability that event Y will also occur when event X occurs.
Monte Carlo simulation is a modeling method used to predict the probabilities of various outcomes in processes that are difficult to predict due to the intervention of random variables. This is a technique used to understand the impact of risk and uncertainty.
$80 - $62.2) x 1,000 = $17,780]。持有短仓（卖方）的交易者将损失 17,780 美元。
Bayes' theorem, named after the 18th-century British mathematician Thomas Bayes, is a mathematical formula used to determine conditional probabilities. Conditional probability refers to the likelihood of a certain outcome occurring under similar circumstances.
The Fama-French three-factor model (referred to as the Fama-French model) is an asset pricing model developed in 1992. This model adds scale risk and value risk factors based on the capital asset pricing model (CAPM), and expands market risk factors.
- [Trend Trading](趋势交易_Trend Trading.md)
A gamma neutral option position is one that is immune to large moves in the underlying security.
Gamma (Γ) is an option risk indicator that describes the rate of change in the delta value of an option for every one-point change in the underlying asset price.
Gamma hedging is a trading strategy designed to keep the delta of an options position stable, usually delta neutral, as the price of the underlying asset changes.
Momentum investing is a strategy designed to capitalize on the continuation of existing market trends. This is a trading strategy in which investors buy a security that has risen and sell it when it reaches its peak.
A double top is an extremely bearish technical reversal pattern that typically forms after an asset's price reaches two consecutive highs, followed by a modest retracement between the two highs.
Backtesting is a general method of evaluating how a strategy or model has performed in the past. It evaluates the feasibility of a trading strategy by utilizing historical data.
Factor investing is an investment strategy that selects securities based on specific attributes that are associated with higher returns.
The concept of mean reversion is widely used in a variety of financial time series data, including prices, earnings, and book values. When an asset's current market price is lower than its past average price, it is generally considered attractive to buy.
A long-short fund is a mutual fund, hedge fund, or exchange-traded fund (ETF) that takes both long and short investment positions.
Long-short equity is an investment strategy that seeks to establish a long position in stocks that are expected to appreciate in value and a short position in stocks that are expected to decrease in value.
Many arbitrageurs take advantage of inconsistent prices for the same asset in different markets by simultaneously buying the asset at a lower price and selling the same asset at a higher price in different markets.
A market order is an order from an investor to instruct a broker to buy or sell a stock, bond, or other asset at the best price currently available in financial markets. For most investors, market orders are the default choice for buying and selling.
A market neutral strategy is an investment strategy in which an investor or investment manager seeks to profit from rising and falling prices in one or more markets while avoiding a specific form of market risk as completely as possible.
Delta neutrality is a portfolio strategy that balances long and short positions so that the overall delta of an asset is zero. Options traders use delta-neutral strategies to profit from implied volatility, or the decay in the time value of an option.
Delta hedging is an options trading strategy designed to reduce or hedge the directional risk associated with changes in the price of an underlying asset.
The exponential moving average (EMA) is a weighted moving average (MA) that gives greater weight and importance to the latest data points. The exponential moving average is also called the exponentially weighted moving average.
News traders are those traders or investors who make decisions based on news announcements. Coverage of breaking news, economic reports and other events can have a temporary impact on price movements of stocks, bonds and other securities.
His work in equity research laid the foundation for the in-depth fundamental valuations used by market participants today in stock market analysis. His classic book "The Intelligent Investor" is widely regarded as the foundation of value investing.
Although he had no formal education, he entered the working world at the age of 14. Known as a Wall Street legend, Livermore had a profound impact on generations of stock and commodities traders.
Volatility arbitrage is a trading strategy that seeks to profit from the difference between the predicted value of an asset's future price movements and the implied volatility of options based on that asset.
The volatility smile is a common graph that is obtained by plotting the strike price versus implied volatility for a set of options on the same underlying asset and expiration date. The volatility smile is so named because it is shaped like a smiling face.
The Relative Strength Index (RSI) is a momentum indicator used in technical analysis. RSI is used to measure the speed and magnitude of recent price changes of a security to assess whether the security is overvalued or undervalued.
A put option (long put) refers to the purchase of a put option, usually in anticipation of a decline in the price of the underlying asset.
In finance, the moving average (MA) is a stock indicator commonly used in technical analysis. Calculating a moving average for a stock is designed to smooth price data by creating a continuously updated average price.
A short or short position is when a trader first sells a security with the plan to later buy it back at a lower price or close the position. Traders may choose to enter a short trade when they believe the security's price may decline in the near future.
The short call spread strategy, also known as the short call credit spread, is an options strategy that is used when options traders expect the price of the underlying asset to fall.
An immediate or cancel order (IOC) is an order to buy or sell a security that is immediately executed in whole or in part and then cancels any outstanding portion.
The simple moving average (SMA) is a method of calculating the average price of an asset, typically using closing prices, over a specified period of days.
Beta (β) is the second letter of the Greek alphabet and is used in finance to indicate the volatility or systemic risk of a security or portfolio relative to the market, often benchmarked against the S&P 500 Index, which has a beta value of 1.0.
A currency carry trade is a strategy in which a high-yielding currency is traded against a low-yielding currency. Traders using this strategy try to capture the spread, which can often be considerable, depending on the amount of leverage used.
The Fisher Transform indicator is a technical indicator designed to transform prices into a Gaussian-normal distribution. It highlights when prices experience extreme moves and helps identify turning points in asset prices based on recent price conditions.
$$ \begin{aligned} &ER_i = R_f + \beta_i ( ER_m - R_f ) \\ &\textbf{其中：} \\ &ER_i = \text{投资的预期回报} \\ &R_f = \text{无风险利率} \\ &\beta_i = \text{投资的Beta值} \\ &(ER_m - R_f) = \text{市场风险溢价} \\ \end{aligned...
Trend trading is a trading style that aims to capture gains by analyzing an asset's momentum in a specific direction. When prices move in a general direction, such as up or down, this is called a trend.
A straddle is a neutral options strategy that simultaneously purchases a put option (first leg) and a call option (second leg) on the same underlying security, with the two options having the same strike price and expiration date.
$8 Billion in 2020, Including $2.5 Billion Alone from Monday’s Pop](https://www.cnbc.com/2020/02/03/telsa-shorts-down-8-billion-in-2020-including-2point5-billion-on-monday.html).”
What is Long Term Capital Management (LTCM)?
Alpha (alpha) is a term used in investing to describe a certain investment strategy's ability, or "edge," to outperform the market.
In financial markets, a limit order is an order to buy or sell a stock or other security at a specified price or better. This provision gives traders greater control over trading prices.
The limit order book is a record of unfilled limit orders maintained by the securities specialist responsible for the exchange. A limit order is an order to buy or sell a security, requiring a trade at a specific price or better.
A time limit order is a market order that requires rapid execution to achieve immediate execution. This is in contrast to "non-timed orders," which allow brokers some discretion over time and price to try to get a better deal for their clients.
High-frequency trading (HFT) is a trading method that uses powerful computer programs to execute large numbers of orders in milliseconds. HFT relies on complex algorithms to analyze multiple markets and execute orders based on market conditions.
A golden cross is a chart pattern in which a relatively short-term moving average crosses a longer-term moving average.
- [Expected Value](期望值_Expected Value.md)
R-squared (R²) is a numerical value used to measure the degree to which the independent variables in a statistical model explain the variation in the dependent variable.
In probability theory, the central limit theorem (CLT) states that as the sample size increases, the distribution of the sample variables approaches a normal distribution (i.e., the "bell curve"), regardless of the actual distribution shape of the population.
Hypothesis testing, sometimes called significance testing, is an act in statistics by which analysts test hypotheses about a population parameter. The approach used by the analyst depends on the nature of the data used and the purpose of the analysis.
The coefficient of determination is a statistical measure used to examine how differences in one variable are explained by differences in another variable, especially when predicting the outcome of a specific event.
Covariance is a statistical tool that measures the directional relationship between the returns of two assets. Positive covariance means that asset returns move together, while negative covariance means they move in opposite directions.
The chi-square (χ2) statistic is a test that measures the comparison between a model and actual observed data.
Variable inflation factor (VIF) is a measure of the degree of multicollinearity in regression analysis.
Regression analysis is a statistical method widely used in finance, investing, and other disciplines to determine the strength and characteristics of the relationship between a dependent variable and one or more independent variables.
In statistics, a uniform distribution refers to a probability distribution in which all outcomes are equally likely to occur. Probability distributions can help you judge the likelihood of future events.
Multiple linear regression (MLR), simply called multiple regression, is a statistical technique that uses multiple explanatory variables to predict the outcome of a response variable.
Multicollinearity refers to the presence of a high degree of correlation between two or more independent variables in a multiple regression model.
Analysis of variance (ANOVA) is a statistical test used to evaluate differences in means of three or more groups.
The least squares method is a mathematical regression analysis method used to determine the best-fit line for a set of data and visually demonstrate the relationship between data points.
Expected Value (EV) is a term commonly used in the investment industry and is used to express the expected average value of an investment at a certain point in the future.
The correlation coefficient is a statistical measure of the strength of the linear relationship between two variables. Its value ranges from -1 to 1.
A linear relationship (or linear association) is a statistical term used to describe a straight-line relationship between two variables.
The rule of thumb, also known as the three sigma rule or the 68-95-99.7 rule, is a statistical rule that states that in a normal distribution, almost all observed data will fall within ± three standard deviations (denoted by the Greek letter σ) of the mean ...
Statistical significance is a judgment made by analysts that results in data are not due solely to chance. Statistical hypothesis testing is the method analysts use to make this judgment.
Analysts often use confidence intervals that include 95% or 99% of expected observations.
Autocorrelation is a mathematical representation of the similarity between a given time series and a delayed version of itself over a continuous time interval.
Nonlinearity is a statistical term used to describe a situation where there is no straight line or direct relationship between the independent variable and the dependent variable.
The Merton model is a mathematical formula that stock analysts and commercial loan officers alike use to assess a business's credit default risk. The model is named after economist Robert C. Merton, who proposed the theory in 1974.