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This project focuses on risk management models and tools and allows students to quantitatively measure and present the risk associated with financial portfolios.
In this Build Project, you will dive into the dynamic world of financial markets, mastering the art of risk modeling and portfolio optimization. As budding quantitative analysts, you will use real-world data to build predictive models that gauge market risks and devise optimized investment portfolios. By applying statistical methods and computational tools, you'll predict market trends and develop strategies that balance risk against potential returns.
This project is designed to be a thrilling challenge that will not only deepen your understanding of financial principles but also enhance your analytical process. Upon completion, you'll have gained invaluable mathematical, programming, and analytical skills—key competencies highly sought after in entry-level quantitative analyst roles across the financial sector today. These skills are your stepping stones to a robust career in finance, where the ability to interpret complex datasets and make informed decisions is paramount.
Get to know project leader and other student consultants; Ask questions about the project requirements; Prepare workspace and necessary tools and skills.
Understand the basic concepts of financial markets and various financial instruments. Explore the interactions between different financial asset classes.
Define and explore different types of financial risks; Correspond these types of financial risks to each asset class.
Learn how to source, clean, manage and manipulate financial data.
Understand the principles of modern portfolio theory and how to construct a portfolio. Explore the concepts of diversification, asset allocation, and the efficient frontier.
Introduce basic risk modeling concepts and techniques such as Value at Risk and Expected Shortfall.
Learn and apply techniques, such as Mean-Variance Optimization, minimum variance portfolio, and tangency portfolio for optimizing a financial portfolio.
Present the completed models and optimized portfolios to the class, discuss the rationale behind the output portfolio and insights derived from their models.
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We'll notify you when projects reopen. In the meantime, you can explore our resources and learn more about our Fellows.
Shirong Liu is a Finance Build Fellow at Open Avenues Foundation, where she works with students leading projects in Secondary Market Trading and Investing.
Shirong is a trader at Citadel Securities, where she focuses on market making in US Treasuries.
Shirong has over five years of experience in trading. She specializes in interest rate products and has worked with both cash and derivative products, such as Treasury bonds, interest rate swaps and inflation swaps.
She holds a BS in Mathematics and Economics from University of Chicago.
A fun fact about Shirong is that she is a certified scuba diver.