The financial market is not only made of stock options. Other financial products enable market actors to target specific aims. For example, an oil buyer like a flight company may want to cover the risk of increase in the price of oil. In this case it i... [Read more...]

I found a golden website. The blog of Esteban Moro. He uses R to work on networks. In particular he has done a really nice code to make some great videos of networks. This post is purely a copy of his code. I just changed a few arguments to change ... [Read more...]

As you have certainly seen now, I like working on artificial neural networks. I have written a few posts about models with neural networks (Models to generate networks, Want to win to Guess Who and Study of spatial segregation).Unfortunately, I missed ... [Read more...]

I already talked about networks a few times in this blog. In particular, I had this approach to explain spatial segregation in a city or to solve the Guess Who? problem. However, one of the question is how to generate a good network. Indeed, I aim to study strategy to ... [Read more...]

The function apply() is certainly one of the most useful function. I was scared of it during a while and refused to use it. But it makes the code so much faster to write and so efficient that we can't afford not using it. If you are like me, that ... [Read more...]

Have you ever played the board game "Guess who?". For those who have not experienced childhood (because it might be the only reason to ignore this board game), this is a game consisting in trying to guess who the opponent player is thinking o... [Read more...]

If you want to choose randomly your next holidays destination, you are likely to process in a way which is certainly biased. Especially if you choose randomly the latitude and the longitude. A bit like they do in this lovely advertising (For those of y... [Read more...]

My previous post is about a method to simulate a Brownian motion. A friend of mine emailed me yesterday to tell me that this is useless if we do not know how to simulate a normally distributed variable. My first remark is: use the rnorm() function if t... [Read more...]

The Brownian motion is certainly the most famous stochastic process (a random variable evolving in the time). It has been the first way to model a stock option price (Louis Bachelier's thesis in 1900).The reason why is easy to understand, a Brownian mo... [Read more...]

The merge of two insurance companies enables to curb the probability of ruin by sharing the risk and the capital of the two companies. For example, we can consider two insurance companies, A and B. A is a well known insurance company with a big capital and is dealing with ... [Read more...]

How to estimate PI when we only have R and the formula for the surface of a circle (Surface = PI * r * r)?The estimation of this number has been one of the greatest challenge in the history of mathematics. PI is the ratio between a circle's circumferen... [Read more...]

I was in a party last night and a guy was totally drunk. Not just the guy who had a few drinks and speaks a bit too loud, but the one who is not very likely to remember what he has done during his night, but who is rather very ... [Read more...]

I'm very glad if you use or at least read sometimes my blog. However, I'd like to give you a list of wonderful blogs which are useful if you are interested in applied mathematics and programming for simulation.My favorite one is written by Arthur Charp... [Read more...]

I am currently doing an internship in England. Therefore, I keep alternating between French and English in my different emails and other forms of communication on the Internet. I have been surprised to see that some websites are able to recognize when I use French or when I use English. ... [Read more...]

As you will certainly see later on this blog, I am extremely interested in neural networks. My reference book is “Networks, crowds and markets: reasoning about a highly connected world” by David Easley and Jon Kleinberg who are professors at Cornell University.What is a network? A network is a ... [Read more...]

The VIX (volatility index) is a financial index which measures the expectation of the volatility of the stock market index S&P 500 (SPX). The higher is the value of the VIX the higher are the expectations of important variations in the S&P 500 during the next month. Since volatility is ... [Read more...]

The Olympic Games have finished a couple of days ago. Two entire weeks of complete devotion for sport. Unfortunately I hadn’t got any ticket but I didn’t fail to watch many games on TV and internet. I was looking at decathlon men competition and I was very impressed ... [Read more...]

Hello (New World!),  My name is Edwin, I’m a 22 year-old French student in applied mathematics. In particular, I study probability, statistics and risk theory. We learn interesting things but there is still one question I feel stupid about: Is statistics, actually, useful? I mean not theoretically but in the ... [Read more...]