Introduction to Stochastic Processes for Finance Research and Trading
- Interactive Course
- 1 h
- Intermediate
- 1 Certification
Learn about modeling financial data with stochastic processes for quantitative research and trading from an expert in quantitative finance. Instructor Jonathan Kinlay is a longtime user of Wolfram Language and an expert in investment research, hedge fund investing and quantitative finance. Analysts and portfolio managers in the financial sector often rely on computational models for managing assets and optimizing investment portfolios. Modeling stochastic processes helps you make sense of and predict outcomes in random data, such as stock prices. The stochastic processes in this course include a random walk, the Wiener process and geometric Brownian motion. The course will cover the models' properties and applications in analyzing financial data. Examples demonstrate modeling a stock Index and stock returns, as well as option pricing and sensitivity analysis. Wolfram AI Course Assistant is available for this interactive course.
Course Overview
Requirements: The course requires a basic understanding of both probability theory (in particular probability distributions) and linear algebra. This course requires minimal experience with Wolfram Language.
Featured Products & Technologies: Wolfram Language (available in Mathematica and Wolfram|One)
You'll Learn To
- Model random walks and compute moments
- Calculate the PDF and CDF of a random walk process
- Model a Wiener process and compute its moments and distribution properties
- Explore stationarity and independence properties of random processes
- Simulate stock price paths using geometric Brownian motion
- Model stock returns
- Derive option pricing formula from the PDF of stock price
Video Duration
- Section 120 minutes
- Section 218 minutes
- Section 329 minutes
New! Wolfram AI Course Assistant
This interactive course includes video lessons, quizzes, practice problems, a final exam and our new chat-based Course Assistant powered by Wolfram LLM Kit. Ask Course Assistant anything about the lesson, and it will provide you with contextually aware answers and even relevant code. Get started with our free courses by signing in to the Wolfram Cloud with your Wolfram ID—or create one; it's free! Our recommended best practice for completing this interactive course is to start with Lesson 1 and progress through the video lessons, taking each quiz in the order it appears in the table of contents. You can click Track My Progress to chart your certification progress as you go. Wolfram AI Course Assistant is included with a Wolfram Notebook Assistant + LLM Kit subscription.
Certifications Available
Completion Certificate
Certify your completion of this course by watching course videos and completing all quizzes.
Track My Progress
