Mathematica Solution for Financial Engineering and Mathematics

Rapidly develop new models and deploy them to analysts and traders. Power front-to-back trading systems with instant computations and real-time data feeds.

From exploring market behavior to managing portfolios, the Mathematica financial engineering solution provides state-of-the-art calculations and easy connectivity to databases and web services, as well as high-performance computing with built-in parallel processing that scales to a full grid.

Exploring new theories of market behavior

Interactive tool showing a rule diagram for a trader model with three choices: buy, sell, or hold

KEY CAPABILITIES

WHY CHOOSE MATHEMATICA

WAYS TO USE

Mathematica includes thousands of built-in functions for computation, modeling, visualization, development, and deployment »
Financial engineering and mathematics specific capabilities:
Flexible platform for rapid development and exploration of financial models, with hundreds of highly efficient built-in algorithms relevant to quantitative research
Automated report creation, PDF export, interactive deployment with the Mathematica Player Family, and online deployment with webMathematica to deliver results to management or clients
Support for 64-bit technology, high-performance computing, and built-in parallel processing that can be easily scaled up to a full grid for enterprise solutions »
Efficient random number generation for Markov chain Monte Carlo (MCMC) techniques »
Built-in standard probability distributions and statistical analysis tools »
The most advanced symbolic and numeric calculus system, including numeric integration and differential equation solving »
A comprehensive system for discrete calculus, including difference equations, generating functions, and sequence visualization »
State-of-the-art solvers for symbolic and numeric equations, and the most complete set of special functions and algorithms »
Constrained nonlinear optimization, the interior-point method, and other linear and nonlinear optimization abilities »
Built-in linear, nonlinear, logit, probit, generalized linear, and other regression models to estimate conditional mean models »
Built-in financial data, including current and historic market data »
Highly optimized algorithms for symbolic and numeric linear algebra and sparse linear algebra, enabling fast and efficient large-scale data computations »

Pull Mathematica's built-in current and historical financial and economic data into your models
Financial Data »
Access current and historical delayed stock, fund, and currency data, and more
Country Data »
Access GDP, exchange rate, and other socioeconomic data and time series for all countries
Automated precision control with specified input or output precision to automatically adjust computations to maintain or achieve precise results
Highly customizable programmatic data visualization »
Built-in connectivity to databases, web services, existing C++ code, other commercial programs, and Java and .NET frameworks, and close integration with Microsoft Excel and OpenOffice Calc spreadsheets »
Import and export of all common data formats, including XML, XLS, CSV, and TSV »
Hundreds of interactive models in the Wolfram Demonstrations Project, ready to be used and extended »
Valuation of sophisticated equities and FX derivatives; calculation of hedging, sensitivity parameters, and survival probabilities; and advanced calibration schemes for risk analysis with respect to market data with UnRisk »
Extensive library of analytical pricing models for cash flow related securities and instruments with Derivatives Expert »
Time series analysis to plot, transform, and model data with Time Series »
Neural network modeling of financial data series with Neural Networks »

KEY CAPABILITIES

WHY CHOOSE MATHEMATICA

WAYS TO USE

Powerful symbolic statistical computation and built-in functions for all standard statistical distributions
Competitor note: Advanced symbolic computational capabilities are unique to Mathematica
Fully automated precision control and arbitrary-precision arithmetic avoid the errors of traditional numeric systems »
Competitor note: Excel, Matlab, and other systems relying on machine arithmetic can show critical errors due to numerical accuracy failure
Gain accuracy and reliability by performing symbolic calculations, not just numeric ones
Competitor note: Matlab's and Java's built-in routines only handle numeric calculations
Choose from procedural, functional, and rule-based programming paradigms as needed for fast development and deployment »
Competitor note: Other computation environments use predominantly procedural languages

Having an integrated environment streamlines development, analysis, documentation, and delivery of custom financial models
Competitor note: Traditional programming languages like C/C++ don't have all the built-in computations and capabilities of Mathematica

KEY CAPABILITIES

WHY CHOOSE MATHEMATICA

WAYS TO USE

Search for patterns in past data, develop algorithms to predict future market movements, and deploy them as tools for traders
Mathematica rapidly prototypes products and trading strategies for the world's largest market maker in Eurodollar derivatives
Develop new theories to explain market efficiency
Build artificial markets to model agent behavior
Ensure accuracy by backtesting trading strategies and stress testing product models
Apply new mathematical tools to the pricing and hedging of derivative instruments »
Prototype applications based on analysts' findings and immediately deploy to traders
Develop new models for options and determine optimal asset prices »

Use neural networks and genetic algorithms to create evolving agents for market models
Access your RiskMetrics data, Bloomberg feeds, and QuantLib libraries, and link to other data and applications with built-in connectivity tools
Access real-time trading data and perform instant analysis

FINANCIAL ENGINEERING AND MATHEMATICS CASE STUDIES

Case Studies

Major Organizations using Mathematica

INDUSTRY SOLUTIONS FOR FINANCE AND ECONOMICS

FINANCIAL ENGINEERING AND MATHEMATICS