SIP or Systematic Investment Plan is a smart way to invest in financial markets where you invest a fixed amount periodically (say every month) into an instrument like mutual funds or stocks. SIP allows you to grow your wealth over… Continue Reading

## Stock Alpha Calculation in a Spreadsheet: Step by Step Tutorial

When you invest in financial markets, your primary goal is to generate “Alpha”. It’s an important metric for determining how your portfolio performs compared to the overall market. Hence you always aim for a higher alpha to get an “edge”… Continue Reading

## Stock Beta Calculation in a Spreadsheet: Step by Step Tutorial

Beta is an important parameter that investors must take into consideration before buying any stock, mutual fund, or any similar financial instrument. It measures the volatility of an instrument against a benchmark and therefore helps assess the risk factor of… Continue Reading

Most of the modern Algorithmic traders use a combination of trading systems to generate Alpha consistently. They do implement multiple systems to make sure that the risk is diversified and they are well protected against any black swan events. For… Continue Reading

## Correlation Matrix of Stocks in a Spreadsheet – Automatic Data Feed

Correlation Matrix is one of the great tools to balance and diversify your portfolio. It’s important that you don’t end up buying stocks that are highly correlated to each other, but to do that, you’ll need to know the exact… Continue Reading

## Calculating ATR based Stop Loss in an Excel Sheet

There is no denial of the fact that Stop Loss is an integral part of any trading strategy. Trading without a stop loss is analogous to jumping off the plane without a parachute. The most common stop loss strategy is… Continue Reading

## Options Premium Calculator using Black Scholes Model: Excel Sheet

Options belong to the derivative family of financial instruments and are considered relatively ‘complex’ when compared to stocks and commodities. The complexity arises due to the unique option pricing methodology which depends on several factors. In this post, we’ll explore… Continue Reading

## Sharpe Ratio Calculator Excel Sheet

Sharpe Ratio is an indispensable metric to assess the performance of a trading system or a mutual fund. Usually expressed as decimals, it gives an indication of the reliability and sustainability of your investment returns over time. In this post,… Continue Reading