The Sharpe Ratio Explained (by a quant trader)

An intro to quant research and trading through the lens of Sharpe Ratios.

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00:00 Intro
00:33 Why investing is not only about returns
02:43 Quantifying risk with volatility
03:48 Sharpe ratio formula
05:04 Does the Sharpe ratio "work"?
05:57 What's a good Sharpe ratio?
06:26 Diversification and hedging
08:31 Would you rather invest in high SR or high returns?
09:09 How leverage works
10:44 Leverage for quant trading
12:58 Statistical justification for the Sharpe ratio
14:21 Academic justification for the Sharpe ratio
14:54 Conclusion

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