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Bond Market as a Casino Game Part 1

April 1, 2011 | klr

With this post, I am doing something I try very hard to avoid, especially when communicating to my clients, and that is blurring the line between investing and gambling.  But after reading all of Reuven Brenner’s books and finishing Ralph Vince ...
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Program announced for R/Finance 2011

April 1, 2011 | David Smith

R/Finance[*], the conference devoted to users of R in the financial sector, takes place every year in Chicago. The program has just been announced for R/Finance 2011 (to be held April 29 and 30), and it's jam-packed with talks from on automated trading, financial risk, hedge ratios, stochastic volatility, and much, ... [Read more...]

Workflow Articles in “The Political Methodologist”

April 1, 2011 | kjhealy

I’ve written a few times before about how to choose the software you work with, and what you should and should not care about when making those choices. I maintain a page with various resources related to this, if you’re interested, most notably the Emacs Starter Kit for ... [Read more...]

What is R, really?

March 31, 2011 | Mario Pineda-Krch

On CRAN, the official web home of all things R it says, R is a free software environment for statistical computing and graphics. Well, that sounds all hunky dory. But let’s take a close look at what this statement really … Continue reading → [Read more...]

Long EEM Short IWM-How it Works in 3 Ways

March 31, 2011 | klr

Long EEM Short IWM potentially works in 3 ways: 1) See my last post “Asian Currency Opportunity” where currency undervaluation means potential gain of 20-50% versus the US$ and 50%-100% versus the Japanese Yen.  However, even absent the underv...
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Asian Currency Opportunity

March 31, 2011 | klr

Asian currencies are fundamentally undervalued at an extreme level due to the Central Banks’ focus on the US$.  For those that regularly read my blog or happened to see me in SmartMoney, this will not surprise you, “And investors can also buy...
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Baseball, T-tests and statistical surprises

March 31, 2011 | Joseph Rickert

Are MLB players better hitters now than they were 20 years ago? Revolution Analytics' Joseph Rickert uses R to take a look at the data, and offers an instructive lesson in checking your assumptions for statistical tests in the process -- Ed. Data are everywhere – but, even for simple things, I ... [Read more...]

New R User Groups in Tallahasse (FL), Hobart (TAS)

March 30, 2011 | David Smith

Two new R User Groups have just started up. The first us in Tallahassee, Florida, and their first meeting is on April 10. Spinning to the other side of the globe, the other is in Hobart, the capital of the Australian island state, Tasmania (their first meeting is also on April 8). ... [Read more...]

Violins of Volatility

March 29, 2011 | David Smith

A violin plot is a combination box plot and a kernel density plot: it starts with a box plot, and adds a rotated kernel density plot to each side of the box plot. You can create violin plots with the vioplot function (from the vioplot package) package in R. When ... [Read more...]

A Simple Instrumental Variables Problem

March 29, 2011 | Adam.Hyland

When working with labor economics, we often run into issues with selection on variables of interest. Regressing earnings on years of education to estimate the human capital earnings function makes sense at first blush until we imagine that education is … Continue reading → [Read more...]

Le Monde puzzle [#8]

March 29, 2011 | xi'an

Another mathematical puzzle from Le Monde that relates to a broken calculator (skipping the useless tale): Given a pair of arbitrary positive integers (x,y) a calculator can either substract the same integer [lesser than min(x,y)] from both x and y or multiply either x or y by 2. ... [Read more...]

The Leverage Space Trading Model

March 29, 2011 | klr

I finally got around to reading Ralph Vince’s latest The Leverage Space Trading Model (for a brief summary see this magazine article in Futures), and I’m happy to say that the book was very helpful in approach and example.  I especially enjoye...
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