Risk

Traders in both financial markets and commodity markets must make educated decisions about when to trade and at what price; this project develops tools to assist with this decision-making process. Working with energy companies, financial software companies as well as companies from the banking and insurance sectors, the research team develops optimal portfolio methods that produce both the best investment decisions and the best hedging strategies for claims in general markets.

This project deals with the mathematics of risk modeling and resource management. Using mathematical and statistical methods, the team develops new tools to help the financial services industry make better decisions about when to trade and at what price based on the available financial data. During the past year, the team focused on the development of statistical methods for measuring volatility and assessing asset pricing models in financial markets.