lesson 4 Flashcards
Difference between Data and Taxonomy
Data = collection of realizations of random variables
= collection of
measurements
of a property
of an entity/individual.
Taxonomy = categorization or classification, it’s a different approach to organize and analyze data
Difference between Frequency and Recency of data
FREQUENCY indicates how often data is updated
RECENCY refers to how ‘fresh’ the datas are,
compared to when market events happen
for each Variable say if they are:
P Stock, P Flow, Q or Derived
DE Budget deficit
DE debt
US car production
CH unemployment
DE Budget deficit: P flow (/Year)
DE debt: P stock
US car production: P flow (/Year)
CH unemployment: P stock or derived (rate)
for each Variable say if they are:
P Stock, P Flow, Q or Derived
S&P 500
Tesla dividend
Apple implied volatility
Mean wait time for bus
S&P 500: Q or Derived
Tesla dividend: P flow (year, semester)
Apple implied volatility: Q or Derived
Mean wait time for bus: P flow (/ day)
what is a Derivative?
different between a future and an option?
a derivative is something about the future that depends on something else
Futures:
A futures contract is a standardized agreement to buy or sell an underlying asset at a predetermined price (the futures price) on a specified future date.
Options:
An options contract gives the holder the right, but not the obligation, to buy (call option) or sell (put option) an underlying asset at a specified price (the strike price) within a predetermined period (until the expiration date).
who has zero net supply?
and what does it mean?
derivatives.
this means that when a person buy a derivatives:
there are always 2 open positions that are opposite. one sell, one buy.
they’re like borrowing or lending existing things.
At what time data has to be measured?
All data has to be measured at one point in time
difference between:
Market prices, market data and remaining data
Market prices are based on a valuation that can change
Market data quantifies market activity
All other data can be (objectively) observed
different between
Unit Net Supply
and Zero Net Supply
UNIT NET SUPPLY: When you buy a stock or a commodity, it adds more of that asset into the world. When you sell it, it takes some of it out. So, the total supply can change.
ZERO NET SUPPLY: When you trade derivatives or bonds, it doesn’t change the total number of assets in the world. It’s like passing a book from one person to another in the library.
News vs. opinion
News can be true (or not)
Opinion is personal/individual
Fill out the table below. For some items, there are multiple correct answers.
In this case, one is sufficient! If not specified otherwise, historic data for the US markets
are required:
indicate the Data source/vendor:
Data type:
- Price of US T-Bond
- Stock prices
- Prices of options on AAPL
- GDP of USA, Germany, Brunei
- Price of US T-Bond -> bloomberg, FRED
- Stock prices -> bloomberg, yahoo finance,Refinitiv…
- Prices of options on AAPL -> CBOE(Chicago board option exchange), Bloomberg, option metrics
- GDP of USA, Germany, Brunei ->worldbank, FRED
Variable Stock Flow?
- NYSE trading volume
- Daily number of Tesla shares traded
- Turnover of Tesla
- Dividend of Tesla
- Profit of Tesla
- Number of Tesla cars sold in 2020
-Number of Tesla cars ever built
- NYSE trading volume-> Flow
- Daily number of Tesla shares traded-> flow
- Turnover of Tesla-> Flow
- Dividend of Tesla-> Flow
- Profit of Tesla-> Flow
- Number of Tesla cars sold in 2020-> Flow
- Number of Tesla cars ever built-> Stock
