Tag: volatility
Generalized AutoRegressive Conditional Heteroskedasticity (GARCH) Process
Generalized AutoRegressive Conditional Heteroskedasticity (GARCH) Process What is the 'Generalized AutoRegressive Conditional Heteroskedasticity (GARCH) Process ' The generalized autoregressive conditional heteroskedasticity...
Gamma Neutral
What is 'Gamma Neutral' A method of managing risk in options trading by establishing an asset portfolio whose delta rate of change...
Geographical Diversification
What is 'Geographical Diversification' The practice of diversifying an investment portfolio across different geographic regions so as to reduce the overall risk...
Gamma
What is 'Gamma' Gamma is the rate of change in an option's delta per 1-point move in the underlying asset's price. Gamma...
Generalized AutoRegressive Conditional Heteroskedasticity – GARCH
What is 'Generalized AutoRegressive Conditional Heteroskedasticity (GARCH)' A statistical model used by financial institutions to estimate the volatility of stock returns. This...
Correlation
Financial Correlation basically measures the relationship between the changes occurring in two or more variables at the same time. Correlation plays a major role...
Dayrate Volatility
What is 'Dayrate Volatility' The intraday unpredictability of an exchange rate (or price of a good or service), that changes due to...
Dollar Cost Averaging
DefinitionDollar cost averaging is an investment strategy with the goal of reducing the impact of volatility on large purchases of financial assets such as...
Ulcer Index (UI)
What is 'Ulcer Index - UI' A technical indicator that measures downside risk, in terms of both depth and duration of price...
Kurtosis
DefinitionIn probability theory and statistics, kurtosis is a measure of the "tailedness" of the probability distribution of a real-valued random variable. In a similar...