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# Real-Time Risk Management Module for Financial Derivatives | ||
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## Overview | ||
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This repository contains a real-time risk management module designed to enhance the "Hedging-of-Financial-Derivatives" project. The module integrates live market data feeds with risk assessment algorithms to optimize derivative hedging strategies dynamically. | ||
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## Features | ||
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- **Real-Time Calculations**: Calculates key risk metrics such as Value at Risk (VaR), Conditional Value at Risk (CVaR), and more using live market data. | ||
- **Dynamic Strategy Optimization**: Automatically adjusts hedging strategies based on real-time risk assessments and predefined thresholds. | ||
- **User Interface**: Provides visualization tools to monitor risk metrics and strategy performance. | ||
- **Configurability**: Easily configurable through `config.py` for setting risk thresholds and other parameters. | ||
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## Installation | ||
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To use the real-time risk management module, follow these steps: | ||
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1. **Clone the Repository:** | ||
```bash | ||
git clone https://github.com/your_username/Hedging-of-Financial-Derivatives.git | ||
cd Hedging-of-Financial-Derivatives | ||
Install Dependencies: | ||
Ensure you have Python 3 installed. Install required dependencies | ||
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pip install -r requirements.txt | ||
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Configuration: | ||
Adjust configuration settings in config.py as per your requirements, including API keys and risk thresholds. | ||
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Usage | ||
Running the Real-Time Risk Management Module | ||
Run realtime_risk_management.py to start the module: | ||
python realtime_risk_management.py | ||
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The module will continuously fetch live market data, calculate risk metrics, and optimize hedging strategies based on the latest information. | ||
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Monitoring and Visualization | ||
Access the dashboard or UI (if implemented) to visualize risk metrics and strategy performance. Modify dashboard.py to customize visualization according to your needs. | ||
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Testing | ||
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Unit tests are available in the tests directory. Run tests using: | ||
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python -m unittest discover -s tests -p "*.py" | ||
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Contributing | ||
Contributions are welcome! Please fork the repository, make your changes, and submit a pull request. Ensure tests pass before submitting. | ||
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License | ||
This project is licensed under the MIT License - see the LICENSE file for details. | ||
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### Deployment Considerations | ||
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Deployment depends on your specific environment and requirements. Here’s an example using Docker for containerization: | ||
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#### Docker Deployment Steps: | ||
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1. **Dockerfile**: Create a `Dockerfile` in the project root to build your application environment and define how to run it. | ||
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2. **Build Docker Image**: Build a Docker image using the `Dockerfile`, which encapsulates your application and its dependencies. | ||
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3. **Run Docker Container**: Deploy the Docker container on your desired platform or infrastructure. | ||
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#### Example Dockerfile: | ||
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```dockerfile | ||
# Dockerfile | ||
FROM python:3.9-slim | ||
WORKDIR /app | ||
COPY requirements.txt ./ | ||
RUN pip install --no-cache-dir -r requirements.txt | ||
COPY . . | ||
CMD ["python", "realtime_risk_management.py"] |