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Anti-correlation
In statistics, there is a negative relationship or inverse relationship between two variables if higher values of one variable tend to be associated with lower values of the other. A negative relationship between two variables usually implies that the correlation between them is negative, or — what is in some contexts equivalent — that the slope in a corresponding graph is negative. A negative correlation between variables is also called anticorrelation or inverse correlation. Negative correlation can be seen geometrically when two normalized random vectors are viewed as points on a sphere, and the correlation between them is the cosine of the arc of separation of the points on the sphere. When this arc is more than a quarter-circle (θ > π/2), then the cosine is negative. Diametrically opposed points represent a correlation of –1 = cos(π). Any two points not in the same hemisphere have negative correlation. An example would be a negative cross-sectional ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cartesian Plane
A Cartesian coordinate system (, ) in a plane is a coordinate system that specifies each point uniquely by a pair of numerical coordinates, which are the signed distances to the point from two fixed perpendicular oriented lines, measured in the same unit of length. Each reference coordinate line is called a ''coordinate axis'' or just ''axis'' (plural ''axes'') of the system, and the point where they meet is its ''origin'', at ordered pair . The coordinates can also be defined as the positions of the perpendicular projections of the point onto the two axes, expressed as signed distances from the origin. One can use the same principle to specify the position of any point in three-dimensional space by three Cartesian coordinates, its signed distances to three mutually perpendicular planes (or, equivalently, by its perpendicular projection onto three mutually perpendicular lines). In general, ''n'' Cartesian coordinates (an element of real ''n''-space) specify the point in an ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Diminishing Returns
In economics, diminishing returns are the decrease in marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, holding all other factors of production equal ( ceteris paribus). The law of diminishing returns (also known as the law of diminishing marginal productivity) states that in productive processes, increasing a factor of production by one unit, while holding all other production factors constant, will at some point return a lower unit of output per incremental unit of input. The law of diminishing returns does not cause a decrease in overall production capabilities, rather it defines a point on a production curve whereby producing an additional unit of output will result in a loss and is known as negative returns. Under diminishing returns, output remains positive, however productivity and efficiency decrease. The modern understanding of the law adds the dimension of holding other outputs equal, since ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Diversification (finance)
In finance, diversification is the process of allocating capital in a way that reduces the exposure to any one particular asset or risk. A common path towards diversification is to reduce risk or volatility by investing in a variety of assets. If asset prices do not change in perfect synchrony, a diversified portfolio will have less variance than the weighted average variance of its constituent assets, and often less volatility than the least volatile of its constituents. Diversification is one of two general techniques for reducing investment risk. The other is hedging. Examples The simplest example of diversification is provided by the proverb "Don't put all your eggs in one basket". Dropping the basket will break all the eggs. Placing each egg in a different basket is more diversified. There is more risk of losing one egg, but less risk of losing all of them. On the other hand, having a lot of baskets may increase costs. In finance, an example of an undiversified portfo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Risk
Financial risk is any of various types of risk associated with financing, including financial transactions that include company loans in risk of default. Often it is understood to include only downside risk, meaning the potential for financial loss and uncertainty about its extent. A science has evolved around managing market and financial risk under the general title of modern portfolio theory initiated by Dr. Harry Markowitz in 1952 with his article, "Portfolio Selection". In modern portfolio theory, the variance (or standard deviation) of a portfolio is used as the definition of risk. Types According to Bender and Panz (2021), financial risks can be sorted into five different categories. In their study, they apply an algorithm-based framework and identify 193 single financial risk types, which are sorted into the five categories market risk, liquidity risk, credit risk, business risk and investment risk. Market risk The four standard market risk factors are eq ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rate Of Return
In finance, return is a profit on an investment. It comprises any change in value of the investment, and/or cash flows (or securities, or other investments) which the investor receives from that investment, such as interest payments, coupons, cash dividends, stock dividends or the payoff from a derivative or structured product. It may be measured either in absolute terms (e.g., dollars) or as a percentage of the amount invested. The latter is also called the holding period return. A loss instead of a profit is described as a '' negative return'', assuming the amount invested is greater than zero. To compare returns over time periods of different lengths on an equal basis, it is useful to convert each return into a return over a period of time of a standard length. The result of the conversion is called the rate of return. Typically, the period of time is a year, in which case the rate of return is also called the annualized return, and the conversion process, described below, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Finance
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of financial economics bridges the two). Finance activities take place in financial systems at various scopes, thus the field can be roughly divided into personal, corporate, and public finance. In a financial system, assets are bought, sold, or traded as financial instruments, such as currencies, loans, bonds, shares, stocks, options, futures, etc. Assets can also be banked, invested, and insured to maximize value and minimize loss. In practice, risks are always present in any financial action and entities. A broad range of subfields within finance exist due to its wide scope. Asset, money, risk and investment management aim to maximize value and minimize volatility. Financial analysis is viability, stability, and profitabil ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Singular Point Of A Curve
In geometry, a singular point on a curve is one where the curve is not given by a smooth embedding of a parameter. The precise definition of a singular point depends on the type of curve being studied. Algebraic curves in the plane Algebraic curves in the plane may be defined as the set of points satisfying an equation of the form f(x,y) = 0, where is a polynomial function If is expanded as f = a_0 + b_0 x + b_1 y + c_0 x^2 + 2c_1 xy + c_2 y^2 + \cdots If the origin is on the curve then . If then the implicit function theorem guarantees there is a smooth function so that the curve has the form near the origin. Similarly, if then there is a smooth function so that the curve has the form near the origin. In either case, there is a smooth map from to the plane which defines the curve in the neighborhood of the origin. Note that at the origin b_0 = \frac, \; b_1 = \frac, so the curve is non-singular or ''regular'' at the origin if at least one of the partial derivatives o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Positive Real Numbers
In mathematics, the set of positive real numbers, \R_ = \left\, is the subset of those real numbers that are greater than zero. The non-negative real numbers, \R_ = \left\, also include zero. Although the symbols \R_ and \R^ are ambiguously used for either of these, the notation \R_ or \R^ for \left\ and \R_^ or \R^_ for \left\ has also been widely employed, is aligned with the practice in algebra of denoting the exclusion of the zero element with a star, and should be understandable to most practicing mathematicians. In a complex plane, \R_ is identified with the positive real axis, and is usually drawn as a horizontal ray. This ray is used as reference in the polar form of a complex number. The real positive axis corresponds to complex numbers z = , z, \mathrm^, with argument \varphi = 0. Properties The set \R_ is closed under addition, multiplication, and division. It inherits a topology from the real line and, thus, has the structure of a multiplicative topological group or o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Derivative
In mathematics, the derivative of a function of a real variable measures the sensitivity to change of the function value (output value) with respect to a change in its argument (input value). Derivatives are a fundamental tool of calculus. For example, the derivative of the position of a moving object with respect to time is the object's velocity: this measures how quickly the position of the object changes when time advances. The derivative of a function of a single variable at a chosen input value, when it exists, is the slope of the tangent line to the graph of the function at that point. The tangent line is the best linear approximation of the function near that input value. For this reason, the derivative is often described as the "instantaneous rate of change", the ratio of the instantaneous change in the dependent variable to that of the independent variable. Derivatives can be generalized to functions of several real variables. In this generalization, the de ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hyperbola
In mathematics, a hyperbola (; pl. hyperbolas or hyperbolae ; adj. hyperbolic ) is a type of smooth curve lying in a plane, defined by its geometric properties or by equations for which it is the solution set. A hyperbola has two pieces, called connected components or branches, that are mirror images of each other and resemble two infinite bows. The hyperbola is one of the three kinds of conic section, formed by the intersection of a plane and a double cone. (The other conic sections are the parabola and the ellipse. A circle is a special case of an ellipse.) If the plane intersects both halves of the double cone but does not pass through the apex of the cones, then the conic is a hyperbola. Hyperbolas arise in many ways: * as the curve representing the reciprocal function y(x) = 1/x in the Cartesian plane, * as the path followed by the shadow of the tip of a sundial, * as the shape of an open orbit (as distinct from a closed elliptical orbit), such as the orbit of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Constant (mathematics)
In mathematics, the word constant conveys multiple meanings. As an adjective, it refers to non-variance (i.e. unchanging with respect to some other value); as a noun, it has two different meanings: * A fixed and well-defined number or other non-changing mathematical object. The terms '' mathematical constant'' or '' physical constant'' are sometimes used to distinguish this meaning. * A function whose value remains unchanged (i.e., a constant function). Such a constant is commonly represented by a variable which does not depend on the main variable(s) in question. For example, a general quadratic function is commonly written as: :a x^2 + b x + c\, , where , and are constants (or parameters), and a variable—a placeholder for the argument of the function being studied. A more explicit way to denote this function is :x\mapsto a x^2 + b x + c \, , which makes the function-argument status of (and by extension the constancy of , and ) clear. In this example , and ar ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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