diff --git a/Risk Assessment/README.md b/Risk Assessment/README.md new file mode 100644 index 00000000..3f546132 --- /dev/null +++ b/Risk Assessment/README.md @@ -0,0 +1,80 @@ +# Real-Time Risk Management Module for Financial Derivatives + +## Overview + +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. + +## Features + +- **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. + +## Installation + +To use the real-time risk management module, follow these steps: + +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 + +pip install -r requirements.txt + +Configuration: +Adjust configuration settings in config.py as per your requirements, including API keys and risk thresholds. + + +Usage +Running the Real-Time Risk Management Module +Run realtime_risk_management.py to start the module: +python realtime_risk_management.py + +The module will continuously fetch live market data, calculate risk metrics, and optimize hedging strategies based on the latest information. + +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. + +Testing + +Unit tests are available in the tests directory. Run tests using: + + +python -m unittest discover -s tests -p "*.py" + +Contributing +Contributions are welcome! Please fork the repository, make your changes, and submit a pull request. Ensure tests pass before submitting. + +License +This project is licensed under the MIT License - see the LICENSE file for details. + +### Deployment Considerations + +Deployment depends on your specific environment and requirements. Here’s an example using Docker for containerization: + +#### Docker Deployment Steps: + +1. **Dockerfile**: Create a `Dockerfile` in the project root to build your application environment and define how to run it. + +2. **Build Docker Image**: Build a Docker image using the `Dockerfile`, which encapsulates your application and its dependencies. + +3. **Run Docker Container**: Deploy the Docker container on your desired platform or infrastructure. + +#### Example Dockerfile: + +```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"]