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21
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9answers
4k views

Recommendations for books to understand the math in quantitative finance papers?

Can anyone recommend books that explain the math used in quantitative finance academic papers?
47
votes
10answers
30k views

How can I go about applying machine learning algorithms to stock markets?

I am not very sure, if this question fits in here. I have recently begun, reading and learning about machine learning. Can someone throw some light onto how to go about it or rather can anyone share ...
22
votes
5answers
2k views

Random matrix theory (RMT) in finance

The new kid on the block in finance seems to be random matrix theory. Although RMT as a theory is not so new (about 50 years) and was first used in quantum mechanics it being used in finance is a ...
9
votes
4answers
4k views

What is a martingale?

What is a martingale and how it compares with a random walk in the context of the Efficient Market Hypothesis?
6
votes
1answer
504 views

What is exactly Euler's decomposition?

I have often seen the following statement in different paper: As $\sigma$ is homogeneous and of degree 1, we use Euler decomposition and write $\sigma(x)=\sum_{i=1}^n x_i \frac{\partial ...
1
vote
0answers
107 views

Does it make sense to apply complicated mathematics to calculate with precision when the margin of error is +/-10%? [closed]

This is more of a philosophical question than general question. Quantitative finance applies highly complicated mathematics and has attracted very smart people to this field lately given the high pay ...