Statistics Intro: Financial Maths Part II

A strong understanding of statistics shouldn't just be the reserve of analysts. Statistical concepts are crucial to anyone working in finance. Dive into this pathway to learn how to read market trends and make better informed investment decisions.

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9 videos • 42 minutes

  • Measures of Central Tendency

    Abdulla outlines measures of Central Tendency, and explains the differences between calculating the Mean, Median and Mode.    

    Abdulla Javeri03:18

  • The Arithmetic Mean

    Following an overview of the mean, the median and the mode. Abdulla focuses on the arithmetic mean to determine its value as  an appropriate measure.    

    Abdulla Javeri04:16

  • The Geometric Mean

    Abdulla outlines how to use and calculate the geometric average or geometric mean, also referred to as CAGR- the compounded average growth rate.

    Abdulla Javeri04:41

  • Measures of Dispersion

    In this video, Abdulla covers measures of dispersion to determine how the data is spread around the central point.

    Abdulla Javeri06:35

  • Calculating Discrete Holding Period Returns

    As investors or traders, the main objective is to make a profit. Returns can be calculated for a holding period or on an annualised basis, and on a continuously compounded basis or a discrete basis. In this video, Abdulla will provide a formula for calculating returns on a discrete basis for both the holding period and an annual percentage return.    

    Abdulla Javeri04:37

  • Calculating Continuously Compounded Rates of Returns

    Continuously compounded rates of return are widely used in financial markets, especially in the world of derivatives. In this video, Abdulla outlines the concept and provides some examples framed as investment returns.

    Abdulla Javeri05:03

  • Calculating Real Returns

    Chances are when someone quotes a figure for investment returns it’s likely to be on a nominal or gross basis, without taking into account the effects of inflation. Purchasing power only increases if returns outstrip inflation over a given period. Abdulla addresses this fact and explains how to measure real returns for a single period, and over time, to help us understand inflation-adjusted returns.

    Abdulla Javeri04:42

  • Simple Arithmetic Moving Averages

    A moving average is a rolling series of arithmetic averages which acts as a smoothing mechanism to indicate trends in historic data. In financial markets, that historic data is most likely to be prices or returns. In this video, Abdulla discusses this concept and specifically explains the simple or arithmetic moving average. He covers what it is, how it is calculated, why people use it and some of its limitations.  

    Abdulla Javeri04:00

  • Exponentially Weighted Moving Averages

    In the previous video, Abdulla covered simple or arithmetic moving averages. Here, Abdulla explains a similar concept: the weighted and exponential moving averages. He answers the questions: what are they, how are they calculated and how are they used?

    Abdulla Javeri05:11

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