Develop a Tail Hedge Strategy with S&P 500

Under the tangled global impacts from all directions, the turbulence of the current financial market makes it hard to predict and invest. At this moment, studying tail risk (known as the extreme loss from an asset or portfolio and represented at the left tail of the return distribution) and designing tail hedge strategies has become more critical to protect against severe market distress. In this project, you'll wear the hat of Financial Engineer and study tail hedge strategies as potential investment models for controlling significant drawdown risks. Under the supervision of an experienced Build Fellow, you'll construct, implement and measure the performance of tail hedge strategies empirically using more than 15 years of index and option data. You'll also formulate your own opinion on the strategies’ behavior for the future potential market move and provide cost-effective recommendations for clients. You will use Pandas, Numpy and Matplotlib Python libraries to analyze strategies and build your own functions on selecting, exiting and entering option positions.