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bjam24/agh-quantitative-measures-of-market-risk

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Quantitative measures of market risk

Description

This project was made for the Quantitive measures of market risk course at the AGH UST in 2021/2022. All provided methods are from scratch as a result of my work after hours, when I was solving given tasks (topics).

Topics

Analysis of Features Affecting Rate of Return

  • simple rate of return
  • logarithmic rate of return
  • Shapiro-Wilk test
  • Anderson-Darling test
  • Jarque-Bera test
  • Distribution of returns

Credit risk reduction models

  • company rating

Review of Value at Risk estimation methods

a) VaR and ES calculation methods:

  • Historical
  • Weighted historical
  • EWMA
  • GARCH

b) Backtesting methods:

  • Christoffersen test
  • Kupiec test

Portfolio VaR Calculation and Correlation Monitoring

  • Correlation monitoring
  • VaR calculation for portfolio (EWMA and GARCH)

Technology stack

  • R programming language (obligatory)
  • Jupyter Notebook

Data source

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