Category: Investment Concepts
Plain-language explainers of key financial and quantitative concepts used across the platform.
What Is the Debt-to-Equity Ratio — Measuring Financial Risk
What Is the Debt-to-Equity Ratio — Measuring Financial Risk Investment Concepts Who Owns the Company: Lenders or Shareholders? The Debt-to-Equity ratio (D/E) tells you how…
What Is Earnings Per Share — the Number That Moves Markets
What Is Earnings Per Share — the Number That Moves Markets Investment Concepts Profit, Simplified Earnings Per Share (EPS) boils a company’s entire profit down…
What Is Dividend Yield — Getting Paid While You Wait
What Is Dividend Yield — Getting Paid While You Wait Investment Concepts Income from Ownership Dividend yield tells you how much income a stock pays…
What Is Short Interest — and How Short Squeezes Actually Work
What Is Short Interest — and How Short Squeezes Actually Work Investment Concepts Betting Against a Stock Short selling means borrowing shares you don’t own,…
What Is Beta — Understanding How Sensitive a Stock Is to the Market
What Is Beta — Understanding How Sensitive a Stock Is to the Market Investment Concepts Moving With the Market — or Against It Beta measures…
What Are Hidden Markov Models — Detecting Market States You Can’t See Directly
What Are Hidden Markov Models — Detecting Market States You Can’t See Directly Investment Concepts The Hidden State Problem Imagine you’re watching a stock price…
What Are Market Regimes — the Four Phases Every Market Cycles Through
What Are Market Regimes — the Four Phases Every Market Cycles Through Investment Concepts Markets Don’t Move Randomly Markets cycle through distinct phases, much like…
What Is the Calmar Ratio — Returns Measured Against Your Worst Day
What Is the Calmar Ratio — Returns Measured Against Your Worst Day Investment Concepts What Really Matters: How Much Did You Lose? The Calmar ratio…
What Is the Kelly Criterion — the Maths Behind Position Sizing
What Is the Kelly Criterion — the Maths Behind Position Sizing Investment Concepts How Much Should You Bet? Most investors obsess over what to buy.…
What Is the Sharpe Ratio — Measuring Returns Against Risk
What Is the Sharpe Ratio — Measuring Returns Against Risk Investment Concepts Not All Returns Are Equal Making 20% sounds great. But what if you…