In a previous article I have described what perpetuity is and how we can derive the formula for the present value of perpetuity. In this…
econometrics.io
Perpetuity refers to an infinite amount of time (). In finance, perpetuity is a constant stream of identical cash flows, (), with no end.
In this research I am going to search for cointegrating security pairs that can potentially be used in a pair trading strategy. I am going…
In this post I will summarize how one can compute the intrinsic value of a company according to the below quote from Warren Buffet: “Intrinsic…
We know that the compound annual growth rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer…
Often times when you read something like “Annual increases at a 10% rate would lead to the doubling of prices every seven years“, you might…
When interested in buying bonds a term that often comes up is the definition of Yield To Maturity (YTM).
This is a generic Notebook, similar to the one Pair Trading GLD and GDX, where I am going to pair trade two securities. The backtesting…
When the correlation between the two securities temporarily weakens, i.e. one stock moves up while the other moves down, the pairs trade would be to…