The world is in the wake of the Information Age and computer technology is increasingly improving almost all industries. In finance, for example, algorithmic trading can be more profitable than human trading because of the speed and data processing advantages that computers have over human traders. But not all algorithms are equal. Some perform better than others. In certain cases, there are missed opportunities in which trading decisions could have been navigated from good to better, resulting in greater profit.
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Finance
How Will an October Surprise Affect the US Economy?
The US elections are held on the first Tuesday of November, and campaign-related events are widely covered in the news. These events generally have an impact on various US markets as the winning candidate’s policies and viewpoints are very likely to tangibly affect many aspects of US operations going forward into the candidate’s term.
Events that occur in October can greatly influence the results of the election simply because they happen at a time leading up to an election. The term “October surprise” refers to these types of events.
Learn How Quantum-Inspired Algorithms Can Help You Make Safer Investments
Many problems in finance take the form of mathematical optimization problems. As an example from portfolio optimization, an asset manager may be tasked with allocating funds across a pool of assets while maximizing the return at a given level of risk. However, conventional approaches often fail when computational resources cannot handle the amount of “noisy” real-world data (i.e., useful data that is corrupted or distorted by other, meaningless data), or extrapolating for missing data, or account for the correlations between all assets.
Uncovering Hidden Patterns in Gold Prices
It is widely believed that gold prices reveal the overall health of the economy, and will continue to be an integral part of foreign exchange markets. Aside from the usual suspects (i.e., market activity, wealth reserves, or supply and demand), major events involving economic policy tend to affect gold prices.
Market Reactions to COVID-19 Using the CME Market Sentiment Meter
The COVID-19 pandemic has changed the world forever, and its effect will continue to send shockwaves through many parts of society, notably among the world’s financial markets. These include the eight commodity futures and options products tracked by the CME Market Sentiment Meter (MSM): S&P index futures, US Treasury note futures, crude oil, natural gas, corn, soybeans, the Euro/USD exchange rate, and gold. The MSM is a computational tool that calculates market sentiment with respect to the above futures and options products based on the assumption that their prices and volumes reflect the aggregate sentiments of traders. Asset managers need information that helps them to avoid risks and earn higher returns, even though day-to-day fluctuations are usually small relative to the total value of the instruments being traded.