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Linux Distributions for Quantitative Finance

Choosing a Linux distribution If you’re new to Linux you’ll face a choice between some unfamiliar distributions. In this article we try to de-mystify those choices. So many options When you’re creating a server instance you have to choose what Linux distribution you want to run. Fortunately the distributions all share a lot of common functionality. They mostly differ in …

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Advanced Derivatives Pricing Theory

Pricing theory for derivative securities is a highly technical topic in finance. Its foundations rely on trading practices and its theory relies on advanced methods from stochastic calculus and numerical analysis. Financial assets are subdivided into several classes, some being quite basic while others are structured as complex contracts referring to more other assets. Examples of elementary asset classes include stocks, which are ownership …

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Data Management in Financial Engineering

“Data is the lifeblood of electronic markets” All financial research requires data, and the efficient management and storage of data is crucial to the profitable operation of a trading system.  Industrial-strength relational database management systems, such as Oracle or MS SQL Server, can store terabytes of such things as historical market data and firm wide trade and position information. Often, …

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Machine Learning and Financial Models

The machine-learning approach to financial modeling is an attempt to find financial models automatically, through a process of progressive adaptation. Machine learning is rooted in statistics and artificial intelligence (AI). There are several machine-learning approaches to automatic problem solving that play a role in financial asset management. Machine learning (and AI techniques in general) is one of the many techniques used in specific applications in financial …

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