I am learning a lot of tools in statistics, but I am having a hard time figuring out where I could apply these methods in finance, especially in relation to investment and trading.
Is there a good book/blog where they give some real world examples as to where someone actually used statistical methods, built a strategy, and implemented it? I'm not looking for strategies that work, just the thought process behind it. Or just how to use the analysis. Or some examples of real world models.
For example, even if we use a simple GARCH model to produce a volatility figure, what do we do with that volatility figure? How do people in the industry use that volatility figure. Seems too simple to assume that tomorrow's volatility can be predicted by todays/yesterday's volatility model, even though yes, empirically volatility clusters.