"*Network Models in Finance: Expanding the Tools for Portfolio and Risk Management* explores the application of network theory to asset management, emphasizing how network-based methodologies can enhance portfolio and risk management. The book integratesquantitative modeling, causal relationships, and optimization within a network framework, extending beyond traditional asset management tools. It provides a comprehensive overview of graph-theoretical approaches and practical implementations using R, bridging classical methods with modern financial data science. By offering both theoretical insights and practical applications, the book aims to address complex challenges in finance, making it a valuable resource for practitioners and academics seeking advanced network-based solutions in asset management"--
Expansive overview of theory and practical implementation of networks in investment management
Guided by graph theory, Network Models in Finance: Expanding the Tools for Portfolio and Risk Management provides a comprehensive overview of networks in investment management, delivering strong knowledge of various types of networks, important characteristics, estimation, and their implementation in portfolio and risk management. With insights into the complexities of financial markets with respect to how individual entities interact within the financial system, this book enables readers to construct diversified portfolios by understanding the link between price/return movements of different asset classes and factors, perform better risk management through understanding systematic, systemic risk and counterparty risk, and monitor changes in the financial system that indicate a potential financial crisis.
With a practitioner-oriented approach, this book includes coverage of:
- Practical examples of broad financial data to show the vast possibilities to visualize, describe, and investigate markets in a completely new way
- Interactions, Causal relationships and optimization within a network-based framework and direct applications of networks compared to traditional methods in finance
- Various types of algorithms enhanced by programming language codes that readers can implement and use for their own data
Network Models in Finance: Expanding the Tools for Portfolio and Risk Management is an essential read for asset managers and investors seeking to make use of networks in research, trading, and portfolio management.
