Statistics
Converting Between Fat-Tailed Distributions
Statistics
Fat-Tailed
Modeling
Distribution-Fitting
A set of rules of thumb that I’ve fit to convert between the most popular fat-tailed distributions.
How Risky is a Correlated Hedge?
Investing
Hedging
Correlation
Risk-Management
Statistics
A brief analysis of how much risk you can reduce by hedging with correlated assets. Even in a perfect world, a 90% correlation limits risk reduction to about 50%.