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An Introductory Approach to Risk Visualization as a Service

An Introductory Approach to Risk Visualization as a Service
An Introductory Approach to Risk Visualization as a Service
This paper introduces the Risk Visualization as a Service (RVaaS) and presents the motivation, rationale, methodology, Cloud APIs used, operations and examples of using RVaaS. Risks can be calculated within seconds and presented in the form of Visualization to ensure that unexploited areas are ex-posed. RVaaS operates in two phases. The first phase includes the risk modeling in Black Scholes Model (BSM), creating 3D Visualization and Analysis. The second phase consists of calculating key derivatives such as Delta and Theta for financial modeling. Risks presented in visualization allow the potential investors and stakeholders to keep track of the status of risk with regard to time, prices and volatility. Our approach can improve accuracy and performance. Results in experiments show that RVaaS can perform up to 500,000 simulations and complete all simulations within 24 seconds for time steps of up to 50. We also introduce financial stock market analysis (FSMA) that can fully blend with RVaaS and demonstrate two examples that can help investors make better decision based on the pricing and market volatility information. RVaaS provides a structured way to deploy low cost, high quality risk assessment and support real-time calculations.
Risk Visualization as a Service (RVaaS), Black Scholes Model, Delta and Theta in financial computing, 3D risk modeling, financial stock market analysis, special issue from the first international workshop on Emerging Software as a Service and Analytics
1-9
Chang, Victor
a7c75287-b649-4a63-a26c-6af6f26525a4
Chang, Victor
a7c75287-b649-4a63-a26c-6af6f26525a4

Chang, Victor (2014) An Introductory Approach to Risk Visualization as a Service. Open Journal of Cloud Computing, 1 (1), 1-9.

Record type: Article

Abstract

This paper introduces the Risk Visualization as a Service (RVaaS) and presents the motivation, rationale, methodology, Cloud APIs used, operations and examples of using RVaaS. Risks can be calculated within seconds and presented in the form of Visualization to ensure that unexploited areas are ex-posed. RVaaS operates in two phases. The first phase includes the risk modeling in Black Scholes Model (BSM), creating 3D Visualization and Analysis. The second phase consists of calculating key derivatives such as Delta and Theta for financial modeling. Risks presented in visualization allow the potential investors and stakeholders to keep track of the status of risk with regard to time, prices and volatility. Our approach can improve accuracy and performance. Results in experiments show that RVaaS can perform up to 500,000 simulations and complete all simulations within 24 seconds for time steps of up to 50. We also introduce financial stock market analysis (FSMA) that can fully blend with RVaaS and demonstrate two examples that can help investors make better decision based on the pricing and market volatility information. RVaaS provides a structured way to deploy low cost, high quality risk assessment and support real-time calculations.

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More information

Published date: 7 May 2014
Keywords: Risk Visualization as a Service (RVaaS), Black Scholes Model, Delta and Theta in financial computing, 3D risk modeling, financial stock market analysis, special issue from the first international workshop on Emerging Software as a Service and Analytics
Organisations: Electronics & Computer Science, Electronic & Software Systems

Identifiers

Local EPrints ID: 364722
URI: https://eprints.soton.ac.uk/id/eprint/364722
PURE UUID: c0e144e0-d7e9-4849-b8b3-254c0bf1b370

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Date deposited: 07 May 2014 10:48
Last modified: 18 Jul 2017 02:29

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