Financial Risk Management

Discover the essential risk management tool, Value at Risk (VaR), through a comprehensive explanation of the Parametric Method, also known as the variance-covariance method. This video breaks down the VaR Parametric Method into easy-to-understand steps, from defining the concept to calculating VaR at different confidence intervals. Learn how to specify crucial inputs for VaR and master the calculations for both 95% and 99% confidence levels using this widely-used approach. Whether you’re a finance professional or student, this tutorial by Ryan O’Connell, CFA, FRM, will enhance your understanding of risk quantification using the VaR Parametric Method.

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Chapters:
0:00 – Definition of the Parametric Method
0:24 – Specifying the Inputs to Value at Risk (VaR)
1:27 – Calculate Value at Risk (VaR) @ 95% Confidence Interval
2:37 – Calculate Value at Risk (VaR) @ 99% Confidence Interval

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Unlock the secrets of financial risk management with Ryan O’Connell, CFA, FRM, as he dives deep into Expected Shortfall, Conditional Value at Risk (CVaR), and Value at Risk (VaR). Discover why Expected Shortfall is a crucial metric for assessing tail risk and how it compares to the broader applications of CVaR and VaR in risk analysis. Learn practical skills with step-by-step tutorials on calculating VaR and Expected Shortfall using Excel, tailored for finance professionals seeking robust risk assessment tools. This comprehensive guide ensures you master Expected Shortfall and understand its significance in minimizing financial risks.

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💾 *Download Free Excel File:* https://ryanoconnellfinance.com/product/expected-shortfall-value-at-risk-calculator-in-excel/

Chapters:
0:00 – Why is Expected Shortfall & CVaR Important?
0:57 – Value at Risk (VaR) Explained
3:40 – Expected Shortfall & Conditional VaR Explained
5:46 – Calculate Return & Standard Deviation in Excel
8:10 – Calculate Value at Risk (VaR) in Excel
9:46 – Calculate Expected Shortfall in Excel

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Unlock the secrets of delta hedging with our comprehensive guide on options trading strategies. Discover how delta impacts option Greeks, and learn the difference between positive and negative delta to optimize your hedging techniques. Explore the dynamics of delta changes over time and with stock price fluctuations, and compare static versus dynamic hedging approaches. Gain practical insights with a detailed example of dynamic delta hedging, perfect for both novice and experienced traders looking to achieve delta neutral portfolios.

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Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.
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Chapters:
0:00 – Intro to Delta in Option Greeks
0:57 – Hedging: Positive Vs Negative Delta
2:22 – Option Price Change Based on Delta
3:03 – What is Delta Hedging?
3:57 – Delta Neutral Portfolios Explained
5:29 – Delta Changes Over Time
7:43 – Delta Changes With Stock Price
9:01 – Static Hedging Vs Dynamic Hedging
10:22 – Dynamic Delta Hedging Example

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Explore the fundamentals of Dynamic Delta Hedging in this detailed tutorial, “Dynamic Delta Hedging Explained In Excel.” Begin with an introduction to the delta hedging problem, and advance through practical steps such as time to maturity calculations and delta calculation using the Black Scholes model. Discover how to maintain a delta-neutral portfolio by adjusting your hedge weekly through trading shares, and understand how to calculate the costs associated with these strategies. This guide employs an example from John C. Hull’s “Options, Futures, and Other Derivatives” to provide a clear application context in financial markets.

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💾 *Download Free Excel File:* https://ryanoconnellfinance.com/product/dynamic-delta-hedge-excel-calculator/

Chapters:
0:00 – Dynamic Delta Hedging Problem Introduction
2:40 – Time to Maturity Calculations
3:19 – Calculate Delta Using Black Scholes
7:17 – Trade Shares to Hedge Weekly
9:33 – Calculate the Cost of the Hedge

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Unlock the secrets of cross hedging with expert Ryan O’Connell, CFA, FRM, as we delve into the optimal number of futures contracts for your investment strategy. Discover the essential historical data required to construct a robust cross hedge, learn how to calculate the minimum variance hedge ratio with precision, and master the calculation of the optimal number of futures contracts to maximize your portfolio’s performance. This tutorial also walks you through a step-by-step process to assess potential gains and losses on cross hedged positions, equipping you with the analytical skills to make informed hedging decisions. Join us to elevate your financial acumen and navigate the complexities of cross hedging with confidence.

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💾 *Download Free Excel File Here:* https://ryanoconnellfinance.com/product/cross-hedging-excel-toolkit/

Chapters:
0:00 – What is Cross Hedging?
1:00 – Historical Data Needed to Find Optimal Hedge
1:27 – Calculate Minimum Variance Hedge Ratio
3:20 – Calculate Optimal # of Futures Contracts
4:44 – Calculate Gains & Losses on Cross Hedged Positions

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Dive into the complex world of commodities trading with “Basis Risk Explained Simply,” where Ryan O’Connell, CFA, FRM, breaks down the essential differences between spot prices and forward prices. Discover the intricacies of hedging strategies and how they can lead to basis risk, even in seemingly perfect hedges. This video will provide a clear understanding of the fundamental concepts that govern the relationship between spot and forward prices in the commodities market.

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Chapters:
0:00 – What is “The Basis”?
1:16 – What is a Perfect Hedge?
3:25 – Basis Risk with a Perfect Hedge
5:13 – Basis Risk with an Imperfect Hedge

Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Dive into our comprehensive guide on “Value at Risk (VaR) In Python: Parametric Method”. From installing essential libraries to interpreting the final VaR results, this video covers every step. Learn how to choose stock tickers, calculate daily log returns, set up confidence intervals, and more using Python. Master the art of financial risk management and enhance your portfolio analysis skills today.

📈 *See Why I Recommend This Broker:* https://ryano.finance/ibkr-overview

💻 *Find the Code Written In this Video Here:* https://ryanoconnellfinance.com/estimating-value-at-risk-with-python/

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Chapters:
0:00 – Intro to “Value at Risk (VaR) In Python: Parametric Method”
0:19 – Installing Necessary Libraries
0:48 – Set Time Range of Historical Returns
1:59 – Choose Your Stock Tickers
2:39 – Download Adjusted Close Prices from yFinance
4:19 – Calculate Individual Stock Daily Log Returns
6:11 – Create an Equally Weighted Portfolio
7:15 – Calculate Total Portfolio Daily Returns
8:10 – Find Portfolio Returns for a Range of Days
9:22 – Create the Covariance Matrix
10:05 – Calculate Portfolio Standard Deviation
11:10 – Set Confidence Intervals for VaR
11:39 – Calculate Value at Risk (VaR) In Python
13:00 – Print and Interpret the VaR Results

Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Unlock the power of the Black-Scholes model with this easy-to-follow Python tutorial. Starting with importing essential libraries, we’ll walk you through defining variables, calculating d1, d2, and deriving both call and put option prices. By 9:41, we deep dive into the intuition behind the Black-Scholes pricing formula. Perfect for finance enthusiasts looking to sharpen their Python skills and understand option pricing!

📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-overview

💻 *Find the Code Written In this Video Here:* https://ryanoconnellfinance.com/step-by-step-guide-implementing-the-black-scholes-model-in-python/

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Chapters:
0:00 – Import the Neccessary Libraries
1:07 – Define the Variables
3:11 – Calculate d1
4:36 – Calculate d2
4:50 – Calculate Call Option Price
7:29 – Calculate Put Option Price
9:41 – Making Sense of the Black Scholes Pricing Model

Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Join Ryan O’Connell, CFA, FRM, as he dives deep into Calculating Macauley, Modified, and Effective Bond Durations using Excel. Starting with the basics of calculating the present value of a semi-annual bond, this tutorial will guide you step-by-step through the intricacies of bond duration calculations. Bond duration is a key concept for understanding interest rate risk. Whether you’re a finance professional or just keen to learn, this video offers valuable insights and hands-on techniques. Don’t forget to like, share, and subscribe for more expert finance tutorials!

💾 Purchase the file created in this video here: https://ryanoconnellfinance.com/product/excel-bond-duration-calculator-macauley-modified-and-effective/

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Chapters:
0:00 – Intro to Calculating Bond Durations in Excel
0:13 – Calculating the Present Value of Semi-Annual Bond
2:37 – Calculate Macauley Duration
4:05 – Calculate Modified Duration
5:21 – Calculate Effective Duration

Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Join Ryan O’Connell, CFA, FRM, as he demystifies the world of Forward Contracts in just 3 minutes! In this concise guide, we’ll cover the definition of a Forward Contract, provide a real-world example, and explain the payoff mechanism. This video is perfect for anyone seeking a quick, clear, and comprehensive understanding of Forward Contracts, whether you’re new to finance or seeking a refresher.

🎓 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
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Chapters:
0:00 – Definition of a Forward Contract
0:35 – Example of a Forward Contract
1:30 – Payoff of a Forward Contract

Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Alternative Titles:
“Forward Contracts Explained in 3 Minutes!”
“Fast-Track Finance: Understanding Forward Contracts Quickly”
“3 Minute Guide: Getting Started with Forward Contracts”
“Forward Contracts 101: The Essentials in 180 Seconds”
“Quick Dive: Demystifying Forward Contracts in Just 3 Minutes”
“Time-Saver Tutorial: Forward Contracts Basics”
“Crash Course on Forward Contracts: Everything You Need in 3 Minutes”
“Finance Made Simple: Your 3 Minute Guide to Forward Contracts”
“Speedy Lesson: The ABCs of Forward Contracts”
“Grasp Forward Contracts Fast: The 3-Minute Breakdown”