IndianTrump3688 Posted June 22, 2017 Report Share Posted June 22, 2017 In this exploration, I want to see how mathematics is used to "predict" price movements by financial traders. This is very interesting to me as I want a career in Finance. Furthermore, I want to explore particular events such as the fall of the Lehman Brothers etc. and view correlations between stock valuation, output and market volatility. I also aim to find out what sort of correlations there are in particular stocks. I will use technical analysis (stats) on a particular stock index to find these price trends. The majority of the maths required in financial markets & trading is probability, statistics & stochastic calculus. The Black-Scholes equation (although very complex) predicts the likelihood of an option being exercised and can be used for market patterns. The volatility of financial markets/stocks is not constant and so there is a lot of statistics used such as standard deviation. The majority of the maths required will be done through Monte-Carlo simulations (which includes standard deviation, mean increase, skewness, kurtosis). In terms of particulars, in statistics I can use: Spearman's Rank Correlation to find relationships etc. I will carry out this exploration through doing research on price movements. I will collect data from JP Morgan's financial statements to see how their stock in particular changes prices based on a variety of factors. Through collecting the data, I will model correlation graphs and different types of graphs. I could use financial information from the Credit Crunch to see how market volatility and other factors affect price movements, find the standard deviation and graph the price volumes. I am doing an internship as a trading analyst at J.P. Morgan Chase this summer. I have asked my supervisor at JP Morgan to provide me with support on my Math IA. Through professional teaching on this aspect of maths, I will be able to understand quantitative finance and its role in maths more clearly. Adding on, I am doing a summer course in Finance at HKUST which will improve my understanding of this topic even more. I want to spend the last 3 weeks of the summer applying everything I learnt about the mathematics in stock trading and come up with my IA. Do you think this idea is good? Ideally, I want a 6 or a 7. 1 Reply Link to post Share on other sites More sharing options...
ManroopA Posted January 14, 2018 Report Share Posted January 14, 2018 This is great, and I am also doing an I.A very similar to this. Please help me 1 Reply Link to post Share on other sites More sharing options...
jltc10004 Posted January 15, 2018 Report Share Posted January 15, 2018 Is there any specific type of maths used for prediction of prices? I'm having a really hard time with mine 2 Reply Link to post Share on other sites More sharing options...
ManroopA Posted January 18, 2018 Report Share Posted January 18, 2018 On 1/14/2018 at 3:51 PM, ManroopA said: This is great, and I am also doing an I.A very similar to this. Please help me On 1/15/2018 at 7:02 AM, jltc10004 said: Is there any specific type of maths used for prediction of prices? I'm having a really hard time with mine Okay guys I have finished my draft, and I think it will help you. The basic important things were the monte carlo method for me. This reddit post has a lot of insight and really helped me. Take a look at it https://www.reddit.com/r/investing/comments/2xcbn9/mathematics_applied_to_the_stock_market/ After this, here is my I.A and just skim through it and get an idea. To be fair this is my first draft and im not even close to finishing. https://docs.google.com/document/d/1VHeIqjUu5Bv_gaJlD0ZzkwaSg_a05Ar_sEjkW4ujx58/edit?usp=sharing Good luck! Reply Link to post Share on other sites More sharing options...
HELP_ME_ Posted March 5, 2019 Report Share Posted March 5, 2019 So my IA is also about predicting a stock price. I look through your draft, but does the Monte Carlo simulation have enough math for HL? I decided to try and use the Black Scholes model but I don't know how to go about it. If you don't mind sharing your IA could you please do that? and also how well it scored? Reply Link to post Share on other sites More sharing options...
tryingtosurviveibomg Posted October 27, 2019 Report Share Posted October 27, 2019 On 1/18/2018 at 5:51 PM, ManroopA said: Okay guys I have finished my draft, and I think it will help you. The basic important things were the monte carlo method for me. This reddit post has a lot of insight and really helped me. Take a look at it https://www.reddit.com/r/investing/comments/2xcbn9/mathematics_applied_to_the_stock_market/ After this, here is my I.A and just skim through it and get an idea. To be fair this is my first draft and im not even close to finishing. https://docs.google.com/document/d/1VHeIqjUu5Bv_gaJlD0ZzkwaSg_a05Ar_sEjkW4ujx58/edit?usp=sharing Good luck! CAN U PLZ REPOST IT I CANT VIEW IT 3 Reply Link to post Share on other sites More sharing options...
tryingtosurviveibomg Posted October 27, 2019 Report Share Posted October 27, 2019 On 6/21/2017 at 9:47 PM, IndianTrump3688 said: In this exploration, I want to see how mathematics is used to "predict" price movements by financial traders. This is very interesting to me as I want a career in Finance. Furthermore, I want to explore particular events such as the fall of the Lehman Brothers etc. and view correlations between stock valuation, output and market volatility. I also aim to find out what sort of correlations there are in particular stocks. I will use technical analysis (stats) on a particular stock index to find these price trends. The majority of the maths required in financial markets & trading is probability, statistics & stochastic calculus. The Black-Scholes equation (although very complex) predicts the likelihood of an option being exercised and can be used for market patterns. The volatility of financial markets/stocks is not constant and so there is a lot of statistics used such as standard deviation. The majority of the maths required will be done through Monte-Carlo simulations (which includes standard deviation, mean increase, skewness, kurtosis). In terms of particulars, in statistics I can use: Spearman's Rank Correlation to find relationships etc. I will carry out this exploration through doing research on price movements. I will collect data from JP Morgan's financial statements to see how their stock in particular changes prices based on a variety of factors. Through collecting the data, I will model correlation graphs and different types of graphs. I could use financial information from the Credit Crunch to see how market volatility and other factors affect price movements, find the standard deviation and graph the price volumes. I am doing an internship as a trading analyst at J.P. Morgan Chase this summer. I have asked my supervisor at JP Morgan to provide me with support on my Math IA. Through professional teaching on this aspect of maths, I will be able to understand quantitative finance and its role in maths more clearly. Adding on, I am doing a summer course in Finance at HKUST which will improve my understanding of this topic even more. I want to spend the last 3 weeks of the summer applying everything I learnt about the mathematics in stock trading and come up with my IA. Do you think this idea is good? Ideally, I want a 6 or a 7. if u dont mind, could u share your ia please 1 Reply Link to post Share on other sites More sharing options...
Sushil Posted December 15, 2019 Report Share Posted December 15, 2019 On 3/5/2019 at 1:05 PM, HELP_ME_ said: So my IA is also about predicting a stock price. I look through your draft, but does the Monte Carlo simulation have enough math for HL? I decided to try and use the Black Scholes model but I don't know how to go about it. If you don't mind sharing your IA could you please do that? and also how well it scored? Black Scholes is for option trading not for stock trading they are two different things Reply Link to post Share on other sites More sharing options...
Anaya Posted August 31, 2020 Report Share Posted August 31, 2020 Does anyone have a draft of this math ia? Reply Link to post Share on other sites More sharing options...
Sakshisandeep Posted November 18, 2020 Report Share Posted November 18, 2020 On 1/19/2018 at 2:51 AM, ManroopA said: Okay guys I have finished my draft, and I think it will help you. The basic important things were the monte carlo method for me. This reddit post has a lot of insight and really helped me. Take a look at it https://www.reddit.com/r/investing/comments/2xcbn9/mathematics_applied_to_the_stock_market/ After this, here is my I.A and just skim through it and get an idea. To be fair this is my first draft and im not even close to finishing. https://docs.google.com/document/d/1VHeIqjUu5Bv_gaJlD0ZzkwaSg_a05Ar_sEjkW4ujx58/edit?usp=sharing Good luck! Hi, could you please re share your IA. Thank you. 1 Reply Link to post Share on other sites More sharing options...
Lumonoxious Posted February 19, 2022 Report Share Posted February 19, 2022 On 6/21/2017 at 9:47 PM, IndianTrump3688 said: In this exploration, I want to see how mathematics is used to "predict" price movements by financial traders. This is very interesting to me as I want a career in Finance. Furthermore, I want to explore particular events such as the fall of the Lehman Brothers etc. and view correlations between stock valuation, output and market volatility. I also aim to find out what sort of correlations there are in particular stocks. I will use technical analysis (stats) on a particular stock index to find these price trends. The majority of the maths required in financial markets & trading is probability, statistics & stochastic calculus. The Black-Scholes equation (although very complex) predicts the likelihood of an option being exercised and can be used for market patterns. The volatility of financial markets/stocks is not constant and so there is a lot of statistics used such as standard deviation. The majority of the maths required will be done through Monte-Carlo simulations (which includes standard deviation, mean increase, skewness, kurtosis). In terms of particulars, in statistics I can use: Spearman's Rank Correlation to find relationships etc. I will carry out this exploration through doing research on price movements. I will collect data from JP Morgan's financial statements to see how their stock in particular changes prices based on a variety of factors. Through collecting the data, I will model correlation graphs and different types of graphs. I could use financial information from the Credit Crunch to see how market volatility and other factors affect price movements, find the standard deviation and graph the price volumes. I am doing an internship as a trading analyst at J.P. Morgan Chase this summer. I have asked my supervisor at JP Morgan to provide me with support on my Math IA. Through professional teaching on this aspect of maths, I will be able to understand quantitative finance and its role in maths more clearly. Adding on, I am doing a summer course in Finance at HKUST which will improve my understanding of this topic even more. I want to spend the last 3 weeks of the summer applying everything I learnt about the mathematics in stock trading and come up with my IA. Do you think this idea is good? Ideally, I want a 6 or a 7. Hi IndianTrump3688, I am currently researching for my math aa hl ia, and was going to do a similar topic. I'm even considering writing the entire paper just on the Black-Scholes-Merton model. Do you think it is a good idea? I know it's been like 5 years, but do you still have your ia? Do you mind sharing with me please? I'm struggling with what to write. Thank you so much! Take care, Lucy Reply Link to post Share on other sites More sharing options...
WarrenNotBuffet Posted September 19, 2022 Report Share Posted September 19, 2022 On 2/19/2022 at 5:37 PM, Lumonoxious said: Hi IndianTrump3688, I am currently researching for my math aa hl ia, and was going to do a similar topic. I'm even considering writing the entire paper just on the Black-Scholes-Merton model. Do you think it is a good idea? I know it's been like 5 years, but do you still have your ia? Do you mind sharing with me please? I'm struggling with what to write. Thank you so much! Take care, Lucy Hey did you end up writing your IA on this topic? If so could you share your IA with me, i am writing mine on a very similar topic and a having a hard time. Thanks! Reply Link to post Share on other sites More sharing options...
GeneralFox Posted May 10, 2023 Report Share Posted May 10, 2023 if u dont mind, could u share your ia please Reply Link to post Share on other sites More sharing options...
GeneralFox Posted May 10, 2023 Report Share Posted May 10, 2023 On 9/19/2022 at 4:59 AM, WarrenNotBuffet said: Hey did you end up writing your IA on this topic? If so could you share your IA with me, i am writing mine on a very similar topic and a having a hard time. Thanks! Hey did you end up writing your IA on this topic? If so could you share your IA with me, i am writing mine on a very similar topic and a having a hard time. Thanks! Reply Link to post Share on other sites More sharing options...
GeneralFox Posted May 10, 2023 Report Share Posted May 10, 2023 On 2/20/2022 at 12:37 AM, Lumonoxious said: Hi IndianTrump3688, I am currently researching for my math aa hl ia, and was going to do a similar topic. I'm even considering writing the entire paper just on the Black-Scholes-Merton model. Do you think it is a good idea? I know it's been like 5 years, but do you still have your ia? Do you mind sharing with me please? I'm struggling with what to write. Thank you so much! Take care, Lucy Hey did you end up writing your IA on this topic? If so could you share your IA with me, i am writing mine on a very similar topic and a having a hard time. Thanks! Reply Link to post Share on other sites More sharing options...
GeneralFox Posted May 10, 2023 Report Share Posted May 10, 2023 On 11/18/2020 at 9:53 AM, Sakshisandeep said: Hi, could you please re share your IA. Thank you. if u dont mind, could u share your ia please Reply Link to post Share on other sites More sharing options...
GeneralFox Posted May 10, 2023 Report Share Posted May 10, 2023 On 8/31/2020 at 8:39 PM, Anaya said: Does anyone have a draft of this math ia? if u dont mind, could u share your ia please Reply Link to post Share on other sites More sharing options...
GeneralFox Posted May 10, 2023 Report Share Posted May 10, 2023 if u dont mind, could u share your ia please Reply Link to post Share on other sites More sharing options...
GeneralFox Posted May 10, 2023 Report Share Posted May 10, 2023 On 8/31/2020 at 8:39 PM, Anaya said: Does anyone have a draft of this math ia? if u dont mind, could u share your ia please Reply Link to post Share on other sites More sharing options...
GeneralFox Posted May 10, 2023 Report Share Posted May 10, 2023 On 1/15/2018 at 3:51 AM, ManroopA said: This is great, and I am also doing an I.A very similar to this. Please help me if u dont mind, could u share your ia please Reply Link to post Share on other sites More sharing options...
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