The Quantopian Podcast

In this episode, we dissect a real-world implementation of beta hedging, a strategy to reduce a portfolio's sensitivity to market movements and isolate true alpha. Drawing from a detailed article on quantitative trading rules, we walk through the motivation, theory, execution, and results of using short S&P 500 futures to hedge a mean-reversion strategy with a 0.57 market beta.We cover:What beta hedging is and why it mattersHow a dynamic hedge using ES futures was designed and implementedSurprising outcomes like increased alpha and reduced R²Trade-offs, including a small increase in max drawdownWhat this says about systematic risk vs. true skillWhether you're a quant, a strategist, or just hedge-curious, this episode delivers practical insights into managing portfolio exposure and digging into the real sources of return.Is your alpha real, or just riding the market wave? Tune in and find out.Find the full research paper here: https://community.quantopian.com/c/community-forums/beta-hedging-quantitativoFor more quant-focused content, join us at ⁠⁠⁠⁠https://community.quantopian.com⁠⁠⁠⁠. There, you can explore a wealth of resources, connect with fellow quants, engage in insightful discussions, and enhance your skills through our extensive range of online courses.Quant Radio is an AI-generated podcast, intended to help people develop their knowledge and skills in Quant finance. This podcast is not intended to provide investment advice.

Dive into the intriguing world of perpetual crypto contracts, where expiration is a thing of the past and high leverage reigns. Discover how a unique clamping function alters traditional arbitrage dynamics, creating unexpected price discrepancies. Explore the challenges traders face due to liquidity issues and transaction fees, and uncover the hidden mechanisms that shape market behavior. Perfect for anyone curious about the complexities of digital asset pricing!

In this video, we explore a fundamental question in finance: Are stock returns predictable? We focus on one classic metric — the Dividend-Price (DP) Ratio — and dive into a major research study that puts its predictive power to the test.What You'll Learn:- What the DP ratio is and why it might predict market returns- How researchers tested this idea using nearly 90 years of S&P 500 data (1927–2017)- The difference between in-sample and out-of-sample testing- What statistical significance and RMSE (Root Mean Square Error) mean for forecasting accuracy- The study’s findings, including a meaningful 7.8% R² in-sample and a 3.42% RMSE out-of-sample- Important limitations: short-term focus, single-variable model, and implications for long-term investorsWhether you're a finance student, investor, or just curious about how market prediction works, this video offers an insightful look into academic research and the methods behind it.Join us as we unpack the data, the theory, and the limitations — and ask what it really tells us about market predictability.Find the full research paper here: https://community.quantopian.com/c/community-forums/can-dividend-price-ratio-predict-stock-returnFor more quant-focused content, join us at ⁠⁠⁠⁠https://community.quantopian.com⁠⁠⁠⁠. There, you can explore a wealth of resources, connect with fellow quants, engage in insightful discussions, and enhance your skills through our extensive range of online courses.Quant Radio is an AI-generated podcast, intended to help people develop their knowledge and skills in Quant finance. This podcast is not intended to provide investment advice.

Ever wonder what really drives long-term investment returns across centuries, not just decades? In this episode, we dig into a sweeping 200-year analysis of stocks, bonds, real estate, and commodities based on groundbreaking research by Chambers, Dimson, Marsh, and Renneboog. From the surprising equity premium (or lack thereof) in the 1800s to the underestimated power of commodity futures, we explore the shifting financial landscape with a clear-eyed view of history. Whether you're building a portfolio or challenging your assumptions about markets, this deep dive into historical returns offers invaluable insights for the long game.Find the full research paper here: https://community.quantopian.com/c/community-forums/are-sector-specific-machine-learning-models-better-than-generalistsFor more quant-focused content, join us at ⁠⁠⁠⁠https://community.quantopian.com⁠⁠⁠⁠. There, you can explore a wealth of resources, connect with fellow quants, engage in insightful discussions, and enhance your skills through our extensive range of online courses.Quant Radio is an AI-generated podcast, intended to help people develop their knowledge and skills in Quant finance. This podcast is not intended to provide investment advice.

Can deep learning outperform traditional quant strategies? In this episode, we explore how a simple neural network model was applied to momentum trading — and how it stacks up against the market.Inspired by Richard Sutton’s Bitter Lesson, this study puts brute-force computation to the test in financial prediction. We walk through the data setup, model architecture, rolling validation process, and — most importantly — the results. Despite only achieving 52% classification accuracy, the model delivered an annualized return of 12.8% with strong risk-adjusted performance.We also compare the results to the original 2013 study, dissect challenges in replicating quant research, and ask what this experiment reveals about the future of AI in finance.Find the full research paper here: https://community.quantopian.com/c/community-forums/in-the-article-the-bitter-lesson-published-onFor more quant-focused content, join us at ⁠⁠⁠⁠https://community.quantopian.com⁠⁠⁠⁠. There, you can explore a wealth of resources, connect with fellow quants, engage in insightful discussions, and enhance your skills through our extensive range of online courses.Quant Radio is an AI-generated podcast, intended to help people develop their knowledge and skills in Quant finance. This podcast is not intended to provide investment advice.

Looking to juice your portfolio returns with factor investing? This episode breaks down a key decision for investors: should you tilt toward size and value with one all-in-one small value fund—or split it between separate small-cap and value funds? We dive into a compelling study that uses both nearly a century of academic data and real-world ETF performance to uncover which approach historically delivered better results—and why. Tune in to learn about factor exposure, risk trade-offs, and how your tilt strategy might be more powerful than you think.Find the full research paper here: https://community.quantopian.com/c/community-forums/small-value-or-small-valueFor more quant-focused content, join us at ⁠⁠⁠⁠https://community.quantopian.com⁠⁠⁠⁠. There, you can explore a wealth of resources, connect with fellow quants, engage in insightful discussions, and enhance your skills through our extensive range of online courses.Quant Radio is an AI-generated podcast, intended to help people develop their knowledge and skills in Quant finance. This podcast is not intended to provide investment advice.

With global markets fragmenting and economic uncertainty on the rise, how can investors adapt without falling into the trap of panic-driven decisions? In this episode, we explore practical strategies for managing risk in volatile environments — from smart diversification to volatility-based exposure and systematic risk controls.Join us as we break down:Why "just holding cash" might not be the safe haven it seemsThe real risk behind global index fundsHow dynamic allocation and risk signals can offer resilienceThe trade-offs between protection and potential missed gainsWhether you're a seasoned investor or just trying to make sense of today's murky markets, this conversation offers insights to help you build a more robust, long-term investment approach.Find the full research paper here: https://community.quantopian.com/c/community-forums/what-should-you-do-when-you-don-t-know-what-to-doFor more quant-focused content, join us at ⁠⁠⁠⁠https://community.quantopian.com⁠⁠⁠⁠. There, you can explore a wealth of resources, connect with fellow quants, engage in insightful discussions, and enhance your skills through our extensive range of online courses.Quant Radio is an AI-generated podcast, intended to help people develop their knowledge and skills in Quant finance. This podcast is not intended to provide investment advice.

For decades, Strategic Asset Allocation (SAA) was the gold standard for institutional investing. But as markets grow more complex and volatile, many leading investors are turning to a new paradigm: the Total Portfolio Approach (TPA). In this episode, we unpack what TPA really is, why it's gaining traction, and how it fundamentally differs from traditional models like SAA.Join us as we explore:- Why the assumptions behind SAA are breaking down- How TPA offers a more flexible, dynamic framework- The critical shifts in governance, culture, and technology required for implementation- The challenges and risks of moving to a TPA modelThis is more than a technical change—it's a mindset shift toward adaptability and holistic portfolio management. Whether you're a CIO, trustee, or finance professional, this conversation will challenge your assumptions and spark new thinking about how institutions manage risk, liquidity, and long-term goals.Find the full research paper here: https://community.quantopian.com/c/community-forums/what-is-total-portfolio-approach-a-practitioner-summaryFor more quant-focused content, join us at ⁠⁠⁠⁠https://community.quantopian.com⁠⁠⁠⁠. There, you can explore a wealth of resources, connect with fellow quants, engage in insightful discussions, and enhance your skills through our extensive range of online courses.Quant Radio is an AI-generated podcast, intended to help people develop their knowledge and skills in Quant finance. This podcast is not intended to provide investment advice.

Why are central banks around the world quietly hoarding gold? In this episode, we explore the powerful forces driving a surge in official gold reserves and what it reveals about shifting global power dynamics. As trust in the U.S. dollar erodes—fueled by sanctions, geopolitical tension, and financial system vulnerabilities—countries are turning to gold as a neutral, reliable store of value. We unpack the strategy behind this modern gold rush, the risks involved, and what it means for the future of international finance. If the dollar is no longer untouchable, what comes next?Find the full research paper here: https://community.quantopian.com/c/community-forums/central-banks-fuel-gold-rally-as-de-dollarisation-acceleratesFor more quant-focused content, join us at ⁠⁠⁠⁠https://community.quantopian.com⁠⁠⁠⁠. There, you can explore a wealth of resources, connect with fellow quants, engage in insightful discussions, and enhance your skills through our extensive range of online courses.Quant Radio is an AI-generated podcast, intended to help people develop their knowledge and skills in Quant finance. This podcast is not intended to provide investment advice.

Explore the concept of Pragmatic Asset Allocation (PAA) as a balanced approach between passive and active investing. The discussion highlights how this rules-based strategy adapts to macroeconomic turbulence, including yield curve inversions. Learn about investments in gold versus equities and the emerging markets shift. Discover how strategic flexibility can enhance long-term investment decisions amidst changing economic conditions. This conversation equips you with insights on navigating market volatility and capital protection.