Blogs

Reverse Stock Splits

A recent Motley Fool article discusses reverse stock splits and their implications for future performance: “Investors have to wonder:  Will reverse splits do any good, or are they basically the kiss of death for a company?”  With Palantir Finance, we can easily examine the short-term performance of companies that undergo reverse stock splits.  This question [...]

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Using the VIX as a Market Signal

The Chicago Board Options Exchange Volatility Index, or VIX, is often cited as a market-timing indicator.  Traders have created a variety of strategies to exploit supposed correlations between this “fear index” and future market returns.  Using Palantir Finance, we can effortlessly examine the exact nature of these correlations to make more informed trading decisions.  The [...]

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Portfolio Analysis

When a fund manager makes a portfolio, he has ideas about individual positions and why he put those positions on.   But although each position may make sense by itself, the portfolio as a whole could be over-exposed to certain factors that the manager is not aware of. The portfolio below is a sample fund portfolio [...]

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Taylor Rule

The Taylor rule is a method for determining how much the Fed should raise or lower rates based on inflation and the difference between real and potential GDP (also known as the output gap). The underlying premise is that the Fed raises interest rates to curb high inflation and lowers interest rates to spur a [...]

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Characteristics of “Junk” Rallies

A lot of people have been focused on what they called the “junk” characteristics of the stock market rally that began in March. The implication is that there was a massive short squeeze [?], which is another way of saying that too many people were positioned short the same unpopular stocks and then were forced [...]

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Can Changes in Implied Volatility Predict Changes in Trading Volume?

Today, we examine whether we can anticipate trading volume based on changes in implied volatility. We are going to utilize a relatively new piece of the Palantir platform, Scatterplot. My first task was putting a little meat behind the question and defining what we would call a change in implied volatility. I decided to employ [...]

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