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Advanced Financial Analytics

By Prof. Abhinava Tripathi   |   IIT Kanpur
Learners enrolled: 5438   |  Exam registration: 81
ABOUT THE COURSE:
Over the next few decades, Data Analytics will transform not only the finance industry but also other industries that borrow significantly from finance. This program has been carefully designed to help future analysts, traders, brokers, consultants and other industry professionals who are either currently exposed to or foresee data science proliferate their work environment. The operating environment for investment management firms continues to evolve, with technological innovations and shifting investor preferences at the heart of this change. In that context, Data Analytics is providing new opportunities to both professionals and investors. The objective of this course is to understand the application of Data Analytics in financial markets, trading, and asset management, also called Financial Analytics. This program aims to demonstrate the applications of data analytics in the finance domain. This includes solving real-life financial markets problems with data science.

INTENDED AUDIENCE: Management students (Ph.D. and MBA), Commerce students (B.Com, M.Com.), Chartered Accountants, Science (B.Sc., M.Sc.), and Engineering students (B-Tech, M-Tech) Finance professionals (Investment analysts, banking professionals, accountants, credit analysts), Data Scientists

PREREQUISITES: Week 1: Artificial Intelligence (AI) for Investments (NPTEL);

INDUSTRY SUPPORT: Data Science and Business analytics: Mu Sigma Analytics, Fractal Analytics, Manthan.Latent View, Tiger Analytics, Absolutedata, Convergytics, UST Global; Equity research firms, Credit rating firms, Investment Banks, Corporate Banking sector, Corporate Finance roles across all corporates (ICRA, ICICI, HDFC, Nomura, Lehman Brothers, SBI Capital Markets, Deutsche bank, HSBC Bank, etc.)
Summary
Course Status : Upcoming
Course Type : Elective
Language for course content : English
Duration : 12 weeks
Category :
  • Management Studies
  • Finance
  • Economics
  • Economics & Finance
Credit Points : 3
Level : Undergraduate/Postgraduate
Start Date : 20 Jan 2025
End Date : 11 Apr 2025
Enrollment Ends : 27 Jan 2025
Exam Registration Ends : 14 Feb 2025
Exam Date : 04 May 2025 IST

Note: This exam date is subject to change based on seat availability. You can check final exam date on your hall ticket.


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Course layout

Week 1:  Fundamentals of R Programming and Introduction to Business Statistics: Data Visualization and Wrangling, working with data frames, processing large data, Statistical Inference, Hypothesis Testing, and Confidence Intervals, Application with R
Week 2: Time-Series Analytics: Introduction to Stationarity, ARMA/ARIMA Modelling, ACF/PACF, Model Building and Goodness-of-Fit, Modelling Non-stationary process, Cointegration and VECM Models, Time-series forecasting, Implementation in R
Week 3: Portfolio Analytics: Portfolio Optimization with two securities and multiple securities, Construction of efficient frontier and market portfolio, Portfolio performance evaluation and construction of market portfolio, Asset Pricing Models, Implementation in R
Week 4: Application of Regression: Introduction to regression modelling, Simple and Multiple Linear Regression, Assumptions of classical linear regression model and its violations, issues of heteroscedasticity, multicollinearity, autocorrelation, Application with asset pricing models, and implementation with R
Week 5: Risk Analytics: Introduction to Volatility Modelling, Historical volatility models, ARCH/GARCH Models, VaR/CvaR models, Implementation in R
Week 6: Logistic Regression: Linear probability models, Logit Model and Probit Models, ROC curve, classification matrix, Maximum Likelihood Estimation, Finance Use case and implementation in R
Week 7: Panel Data Regression: Introduction to Panel Models, Fixed effects, Random effects, First difference, LSDV estimators, Hausman test statistics, Finance Use case and implementation in R
Week 8: Quantile Regression: Introduction to quantile regression, regression quantiles, optimization scheme with quantile regression, theoretical underpinnings, Finance use case with R implementation
Week 9: Markov Regime Switching Regression: Introduction to Markov Process, Transient and Recurrent processes, absorption probabilities, Convergence, Finance use case and implementation in R
Week 10: Financial Markets Data Visualization with GGPLOT: Basics of GGPLOT, Layering, Facet wrap, aesthetics, geometric objects, Use case with R implementation
Week 11: Technical Analysis: Trend Analysis and Indicators, Bollinger bands, trendlines, candle stick charts, Dow theory, classical patterns, Momentum Indicators, R implementation
Week 12: Fixed Income securities: Bond fundamentals, G-Secs, Duration, Convexity, application in portfolio management, Use case with R implementation

Books and references

  1. Elton, Gruber, Brown, Goetzmann; Modern Portfolio Theory and Investment Analysis; 9th Edition (and onwards)
  2. Advanced Financial Instruments for Sustainable Business and Decentralized Markets 
  3. Introductory Econometrics for Finance, Chris Brooks, 3rd Edition
  4. Basic Econometrics by Gujarati, 5th Edition onwards

Instructor bio

Prof. Abhinava Tripathi

IIT Kanpur
Prof. Abhinava Tripathi is a Faculty of Finance and Accounting at IME, Indian Institute of Technology, Kanpur. Previously, he was working at DOMS, IIT Roorkee. He has completed his Ph.D. degree from Indian Institute of Management, Lucknow. He has done his B-Tech. from Indian Institute of Technology, Roorkee and MBA from Indian Institute of Management, Kozhikode. He has more than 5 years of industry experience in investment banking, corporate banking, credit rating, and project finance advisory firms. His current research focuses on the subject of market-microstructure and liquidity in global financial markets. Prof. Abhinava Tripathi has published research papers in international refereed journals, including the Journal of Asset Management, Studies in Economics and Finance, Finance Research Letters, and Managerial Finance, Applied Economics, International Review of Economics and Finance.

Course certificate

The course is free to enroll and learn from. But if you want a certificate, you have to register and write the proctored exam conducted by us in person at any of the designated exam centres.
The exam is optional for a fee of Rs 1000/- (Rupees one thousand only).
Date and Time of Exams:May 4, 2025 Morning session 9am to 12 noon; Afternoon Session 2pm to 5pm.
Registration url: Announcements will be made when the registration form is open for registrations.
The online registration form has to be filled and the certification exam fee needs to be paid. More details will be made available when the exam registration form is published. If there are any changes, it will be mentioned then.
Please check the form for more details on the cities where the exams will be held, the conditions you agree to when you fill the form etc.

CRITERIA TO GET A CERTIFICATE

Average assignment score = 25% of average of best 8 assignments out of the total 12 assignments given in the course.
Exam score = 75% of the proctored certification exam score out of 100

Final score = Average assignment score + Exam score

Please note that assignments encompass all types (including quizzes, programming tasks, and essay submissions) available in the specific week.

YOU WILL BE ELIGIBLE FOR A CERTIFICATE ONLY IF AVERAGE ASSIGNMENT SCORE >=10/25 AND EXAM SCORE >= 30/75. If one of the 2 criteria is not met, you will not get the certificate even if the Final score >= 40/100.

Certificate will have your name, photograph and the score in the final exam with the breakup.It will have the logos of NPTEL and IIT Kanpur .It will be e-verifiable at nptel.ac.in/noc.

Only the e-certificate will be made available. Hard copies will not be dispatched.

Once again, thanks for your interest in our online courses and certification. Happy learning.

- NPTEL team


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