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Monte Carlo Risk Engine

This repo is a learning lab for stochastic methods and financial risk modelling. It's a place to learn uncertainty propagation, statistical convergence, and numerical stability. I’m also using it to teach myself the fundamentals of market risk measurement, starting from first principles and building toward industry-standard modelling.

next steps:

  • Stress testing and weakness analysis
  • New models (Heston stochastic volatility and Merton jump-diffusion)
  • Refactor fully for portfolios (not just single stock)
  • More visualisation tools

About

Risk simulation toolkit for portfolio risk management, estimating Value-at-Risk (VaR) and Expected Shortfall (ES) via both parametric (Normal, Student-t) and Geometric Brownian Motion-based Monte Carlo approach, incorporating EWMA covariance, diagonal covariance shrinking, backtesting, and stress testing.

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