Multivariate Model

Filed Under » , , ,
Dictionary Says

Definition of 'Multivariate Model'

A popular statistical tool that uses multiple variables to forecast possible investment outcomes. Multivariate models predict outcomes of situations that are affected by more than one variable, and are widely used in the financial world.

Investopedia Says

Investopedia explains 'Multivariate Model'

Analysts use them to estimate cash flows and evaluate new product ideas. Portfolio managers and financial advisors use them to predict the impact of individual investments on total portfolio returns. In the insurance industry, multivariate models help insurers estimate risk. Analysts also use this type of model to value stock options.
Search results for

'Multivariate Model'

  • Multivariate Models: The Monte Carlo Analysis

    http://www.investopedia.com/articles/financial-theory/08/monte-carlo-multivariate-model.asp
    ... Monte Carlo analysis is one specific multivariate modeling technique that allows ...
    Running a Monte Carlo model creates a probability distribution or risk ...

  • Scenario Analysis Provides Glimpse Of Portfolio Potential

    http://www.investopedia.com/articles/financial-theory/08/scenario-analysis.asp
    ... Many analysts will create a multivariate model (a model with multiple variables),
    plug in their best guess for the value of each variable and come up with one ...

  • Reduce Your Risk With ICAPM

    http://www.investopedia.com/articles/financial-theory/09/ICAPM-and-CAPM.asp
    ... in the ICAPM (such as complete agreement among investors, and a multivariate normal
    asset ... beta) found in the CAPM, the ICAPM is a multi-factor model of asset ...

  • CFA Level 1 Study Guide - Quantitative Methods - Common ...

    http://www.investopedia.com/exam-guide/cfa-level-1/quantitative-methods/probability-distribution-properties.asp
    ... Efficient Markets. 13. Equity Investments: 13.1 Introduction; 13.2 Security
    Valuation; 13.3 The Dividend Discount Model (DDM); 13.4 DDM ...

  • Financial Forecasting: The Bayesian Method

    http://www.investopedia.com/articles/financial-theory/09/bayesian-methods-financial-modeling.asp
    ... This view of the model is where it becomes particularly helpful in financial ... reading
    on another forecasting technique, take a look at Multivariate Models: The ...

  • The Uses And Limits Of Volatility

    http://www.investopedia.com/articles/04/021804.asp
    ... it feeds into several frameworks, such as modern portfolio theory and the
    Black-Scholes model ... Learn more about this type of analysis in Multivariate Models: ...

  • The Difference Between Finance And Economics

    http://www.investopedia.com/articles/economics/11/difference-between-finance-and-economics.asp
    ... Stock-pricing models like the capital asset pricing model, option models like Black ...
    See Multivariate Models: The Monte Carlo Analysis.) At some fundamental level ...

Related Articles

Trading Center
Partner Links