Quant Finance Blog
Animated videos, deep-dive articles, and executable code — learn quant finance by doing
Why Correlation Matters More Than Returns
Adding a losing asset to your portfolio can make you more money. This is not intuition — it is mathematics. We derive the portfolio variance formula, build a correlation matrix from scratch in Python, and show why diversification fails exactly when you need it most.
The Efficient Frontier: The Only Free Lunch in Finance
Harry Markowitz won the Nobel Prize for a graph that fits on one page. The Efficient Frontier proves there is exactly one set of portfolios where you get maximum return for every level of risk. Every other portfolio is mathematically inferior.
Sharpe Ratio vs Sortino Ratio: Which One Should You Actually Use?
The Sharpe Ratio is broken — it penalizes upside volatility equally to downside. We expose the fundamental flaw that can make a catastrophically risky strategy look safe, derive the Sortino fix, and build a complete performance attribution framework.
Value at Risk: How Much Can You Lose on a Bad Day?
Every major bank and hedge fund must answer one question: how much could we lose in a really bad day? Value at Risk (VaR) is the industry standard. We derive three calculation methods, expose VaR biggest limitation, and build a complete risk reporting system.
Factor Models: Is Your Alpha Just Hidden Beta?
You backtest a strategy showing 15% returns with Sharpe 1.8. Then you run a factor regression: 95% of your alpha is exposure to known factors. We derive factor models from first principles and expose the humbling truth: most alpha is beta in disguise.
How Uniswap Actually Works: The x·y=k Formula
Every stock exchange uses order books and human market makers. Uniswap replaced all of that with one equation: x·y=k. This post derives the constant product formula, calculates price impact from first principles, and shows why V3 concentrated liquidity is a capital efficiency revolution.
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