Backtesting
Backtesting applies a trading or investment rule to historical data to evaluate hypothetical performance, risk, and implementation limits.
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Backtesting applies a trading or investment rule to historical data to evaluate hypothetical performance, risk, and implementation limits.
Correlation standardizes the linear co-movement between two variables and helps analysts assess diversification, factor exposure, and changing financial relationships.
Covariance measures joint variation between two variables and supplies the cross-asset terms used in portfolio risk and factor models.
A decile is one of ten ranked groups or one of nine cut points that divide ordered financial observations into tenths.
Factor models decompose asset or portfolio returns into common drivers, estimated exposures, alpha, and residual risk for analysis and risk management.
The Fama-French Data Library publishes documented factor, portfolio, breakpoint, and research-return datasets for asset-pricing analysis.
The Fama-French three-factor model explains equity excess returns using market, size, and value factor returns plus alpha and residual return.
Technical-indicator and oscillator terms for momentum, volume, volatility bands, trend strength, and signal confirmation.
Mean reversion is the idea that a price, spread, return, or valuation measure may move back toward a reference level after an extreme deviation.
A moving average smooths a financial time series by recalculating an average over a rolling window, with lag and responsiveness determined by its weights.
A quant fund uses data, statistical models, and systematic rules to select investments, construct portfolios, execute trades, and manage risk.
Quantitative trading uses data, statistics, models, and systematic rules to identify signals, size positions, and manage trading risk.
Risk-measurement terms for beta, VaR, CVaR, expected shortfall, semivariance, tail risk, and model-based risk estimates.
Statistical arbitrage uses data, models, and systematic rules to trade temporary pricing deviations among related securities.
Systematic trading pages covering backtesting, forward testing, quantitative rules, algorithmic execution, and model-driven signals.