Are crashes catching?
The Economist (London),
08/1996, Volume:
340, Issue:
7981
Magazine Article
A study by Jeffrey Sachs, Aaron Tornell, and Andres Velasco, entitled Financial Crises in Emerging Markets: The Lessons from 1995, tracks 20 emerging economies between November 1994 and July 1995. It ...tries to gauge what, if any, speculative pressure currencies suffered during the height of Mexico's troubles.
Mint condition Hatter, David
Profit (Toronto),
06/1994, Volume:
13, Issue:
2
Magazine Article
Paul Nadin-Davis loves money--but not the way rest of us do. He treasures coins and banknotes for their aesthetic value and cultural significance--as well as their buying power. And now the avid coin ...collector has turned his passion into a winning business. Founded as a sideline six years ago, Nadin-Davis's Ottawa-based company, Accu-Rate Foreign Exchange Corp., generates sales of $37 million a year trading in 140 currencies. A dedication to customer service and low prices has helped Accu-Rate edge out local competitors--and Canada's biggest banks--in a sterling growth drive that has made it Canada's fastest-growing company. (excerpt)
There are increasing numbers of currencies from developing countries being traded on the foreign exchange market. The currencies, such as the Chinese yuan or the Russian rouble, can yield large ...returns because of their volatility. They can also be risky, however.
The implications of greater currency convertibility for China's economy may be greater, and in some ways less welcome, than Chinese officials seem to think. In particular, the yuan's recent strength ...might no longer be taken for granted. Without further reform of their state-owned industries, China's leaders are courting trouble.
Financial markets, and currency markets in particular, have gone global. What has happened to the Japanese yen illustrates the consequences of such globalization. The yen is now the strongest ...currency on the market. Fifteen years ago, 10 Canadian dollars bought more than 2,000 yen; today, one is lucky to get 800 yen for the same amount. Yet the yen's purchasing power inside Japan has deteriorated compared to that of the Canadian dollar. Ten dollars in Canada buyers 50% more than 1,000 yen buys in Japan. The yen's slow rise has proved impossible to stop, largely because global markets tend to take on a life of their own. Over the years, slightly more people have wanted to buy yen than have wanted to sell them. This points to the insular nature of Japan - a nation whose culture and legislation favor saving over consumption.
When Ottawa loosened the constraints on foreign investment in 1991, Canadian pension funds were deluged with investment managers pitching the avails of international exposure. Despite all the focus ...on international investing, until recently little attention was paid to the effects of currency exposure. The question of currency exposure was surrounded by a number of myths, such as: 1. Currency risk is immaterial. 2. Over time, currency returns are a wash. 3. Hedging is always expensive. Lessons to be learned about currency exposure include: 1. Currencies need to be managed. 2. Hedged equity market risks are equal to local market risks. 3. Currencies count in a portfolio. It is suggested that currency hedging should be an integral component of the portfolio management process for both global fixed income and equity managers catering to Canadian plan sponsors. Canadian pension plan sponsors, who are evaluating their global investment managers, should include a currency component in their performance attribution evaluations.
Predictions about the future of the dollar may be different depending on how the long-term equilibrium rate is defined and measured. Two definitions are described: purchasing-power parity (PPP) and ...the fundamental equilibrium exchange rate (FEER).
Shell game
The Economist (London),
02/1993, Volume:
326, Issue:
7800
Magazine Article
Several companies that did not expect the yen to rise as quickly as it has are now in financial trouble. One such company is Showa Shell Sekiyu KK. It lost an $1.05 billion dollars in 1993.
The analysis of currency exchange rates is of great importance to analyze the economic health of a country. In this paper, we collect and analyze the historical data on exchange rates of all ...available currencies, considering the US dollar as reference. In particular, we are interested in clustering the collected daily time series by using a similarity measure based on dynamic time warping. In total, the observations of 150 currencies, between January 3, 2005 and April 30, 2020, are analyzed. The results show that the use of dynamic time warping as a distance measure results in the improvement of the interpretability of the dendrograms, when compared with standard similarity measures such as the Euclidean distance.
The interdisciplinary relationship between machine learning and financial markets has long been a theme of great interest among both research communities. Recently, reinforcement learning and deep ...learning methods gained prominence in the active asset trading task, aiming to achieve outstanding performances compared with classical benchmarks, such as the Buy and Hold strategy. This paper explores both the supervised learning and reinforcement learning approaches applied to active asset trading, drawing attention to the benefits of both approaches. This work extends the comparison between the supervised approach and reinforcement learning by using state-of-the-art strategies with both techniques. We propose adopting the ResNet architecture, one of the best deep learning approaches for time series classification, into the ResNet-LSTM actor (RSLSTM-A). We compare RSLSTM-A against classical and recent reinforcement learning techniques, such as recurrent reinforcement learning, deep Q-network, and advantage actor–critic. We simulated a currency exchange market environment with the price time series of the Bitcoin, Litecoin, Ethereum, Monero, Nxt, and Dash cryptocurrencies to run our tests. We show that our approach achieves better overall performance, confirming that supervised learning can outperform reinforcement learning for trading. We also present a graphic representation of the features extracted from the ResNet neural network to identify which type of characteristics each residual block generates.
•ResNet-LSTM actor as our proposed method for financial trading decision problems.•Comparison of our method against state-of-the-art reinforcement learning methods.•Real-world evaluation using cryptocurrency market, surpassing the benchmark.•Robustness evaluation with and without transaction costs.•Feature extraction insights using graphical visualization of the layer’s outputs.
