Limitation of Mathematical Modeling

[@alan713812]

for me research and math are so much more interesting than coding. After completing CS degree I understood coding is just not for me but I still want to do technical math involved research-based work. IS it possible to do it without programming either in tech or QF?

[@EzraSisk]

“The limits of my language are the limits of my world.” ~ ‘Anon’

[@ethanperez3275]

Hi Dimitri, I'm researching how to optimize a model for Expected Loss (EL) for loans. My dataset includes income, debt, default history, age, and other factors but lacks credit score, detailed payment history, and expenditure, which are key for risk assessment. I've already calculated LGD, EAD, and debt-to-income ratio. My main challenge is selecting a model for Probability of Default (PD). Given my data limitations, should I use a standard model like logistic regression, or would a custom approach be better? Once I have PD, I want to develop a custom EL model using only the variables I have. Do you think this is feasible? Any advice would be greatly appreciated!

[@saswataseal3898]

Hello sir, I'm a BS statistics final year student.. I'm making a project in ' Statistics in finance' and I want to emphasize on forecasting, risk management and volatility modeling.. I know time series , probability, linear and logistics regression etc things.. but a little bit confused how to apply these in risk management and volatility modeling stuffs.. So can you please suggest me some reference or resources which can help me

[@DimitriBianco]

@saswataseal3898 look up econometrics or Marcos Lopez de Prado's books. For example, how do you predict losses on loans, build a portfolio with higher risk adjusted returns, forecast interest rates, or select the size of a position in a trade?

[@demetrifurman3566]

Yo not my question but really nice of you to respond, also, we have the same name lol

[@saswataseal3898]

@@DimitriBianco thanks.. I'll surely do a study on these topics

[@hackerborabora7212]

Can we use biomimicry to solve financial problems

[@sentralorigin]

we already do. artificial immune systems, particle swarm optimization, etc.

[@hackerborabora7212]

@@sentralorigin pls can you help me find the data and the models that help me analyse in this fiel im new

[@GabrielSilva-05]

Hi Bianco, or anyone else who could help, I am trying to build a quadratic programming model to allocate funds to our portfolio for my university investing club. It seems like the two biggest parts of this are the covariance matrix and the alpha values. I am having trouble with theese. What books do you recommend me in this field. I have active portfolio management by Grinold, but it doesn't go far enough into the actual structure and logic of covariance models, and using alpha to solve maximize. I love learning about this stuff, but dont know where to look. Any advice?

[@DimitriBianco]

@GabrielSilva-05 I haven't studied this area in a long time but here are some resources I would start with. jump.dev/JuMP.jl/stable/tutorials/nonlinear/portfolio/ www.mathworks.com/help/optim/ug/quadratic-programming-portfolio-optimization-problem-based.html

[@GabrielSilva-05]

@@DimitriBianco thanks, I'm just starting so I really appreciate it.

[@jasdeepsinghgrover2470]

Whenever I use words like "loss" "outage" "major bugs" somehow I start communicating well. 😂

[@jasdeepsinghgrover2470]

I use this show by John Oliver as a reference for technical communication. Hoping to be as good a technical communicator as this kzbin.info/www/bejne/jna5nayGacRkZ68si=Puc4qFjS-Ch9YaYg