Chapter 10 · Quantitative Finance
Itô's Lemma Explained: Stochastic Calculus for Finance
Why the ordinary chain rule breaks for random processes, and how Ito's Lemma fixes it. Derive geometric Brownian motion with a live simulator.
16 min Advanced
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Quantitative Finance
11 articles filed under Quantitative Finance, newest first.
Articles tagged Quantitative Finance
Chapter 9 · Quantitative Finance
The Random Walk: From Coin Flips to Stochastic Calculus
Watch a coin-flip random walk become the Wiener process, meet the heat equation behind diffusion, and simulate Brownian motion in Python.
15 min Advanced
Quantitative Finance
Finding P values and false hope: A Guide to Risk and Quant Finance
From simple bets to complex bond portfolios. Explore the mathematical structures of uncertainty, debt mechanics, and the Python tools used to model them.
2 min Intermediate
Chapter 8 · Quantitative Finance
Value at Risk (VaR) vs. CVaR: A Practical Guide for Investors
Build Value at Risk and Conditional VaR from return data in Python, and see why VaR hides the tail loss that actually bankrupts a portfolio.
11 min Intermediate
Chapter 7 · Quantitative Finance
Stock Options 101: A Guide to Calls, Puts, and Pricing
Learn calls and puts from the payoff diagram up, build multi-leg strategies, and see why selling premium is positive-EV with a catastrophic tail.
11 min Intermediate
Chapter 6 · Quantitative Finance
Portfolio Allocation: The Math Behind the Efficient Frontier
Derive Markowitz mean-variance optimization and build the efficient frontier from scratch in Python, then see why the optimal portfolio is fragile.
13 min Intermediate
Chapter 5 · Quantitative Finance
Stock Analysis with Python: Modeling Prices, Returns & Distributions
Pull real stock prices with yfinance, turn them into daily returns, and see why the normal distribution underestimates crashes in the tails.
10 min Intermediate
Chapter 4 · Quantitative Finance
The Geometry of Interest: Constructing Yield Curves and Forward Rates
Bootstrap a yield curve from real bond prices in Python, read the forward rates hidden inside it, and discount future cash flows honestly.
13 min Intermediate
Chapter 3 · Quantitative Finance
Life in the Tranches: Understanding CDOs and Risk Waterfalls
Learn how CDO tranching splits credit risk into Senior, Mezzanine, and Equity layers, with a step-by-step Python waterfall simulation.
13 min Intermediate
Chapter 2 · Quantitative Finance
Loans and Bonds: The Mechanics of Borrowing and Default Risk
A quantitative guide to loan amortization and bond pricing. Learn to derive payment formulas, simulate default risk, and understand coupon rates using Python.
14 min Intermediate
Chapter 1 · Quantitative Finance
The Art of Losing Slowly: Risk, Variance, and Decision-Making
Learn why a positive expected value can still ruin you. Risk, variance and the risk of ruin, explained in Python with an interactive model.
12 min Beginner