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Financial Probability

Probability and financial formulas for practical applications related to finance, wealth advisory, risk management, or quantitative roles.





Quick view

Jump to formulas section

or

View full math-rendered version in the notebook





Contributions Welcome

If you have equations, scenarios, or scripts to add, create a pull request or open a discussion.





Folder Contents

  • docs/ - Explanations of major topics
  • cheatsheets/ - Printable guides and PDFs
  • notebooks/ - Interactive Python notebooks
  • scripts/ - Utility scripts for simulations
  • resources/ - Recommended books, links, and a glossary

Key Topics

  • Basic Probability
  • Expected Value, Variance, Correlation
  • Time Value of Money (FV, PV, NPV, IRR)
  • Portfolio Theory (Sharpe Ratio, CAPM, Optimization)
  • Monte Carlo Simulations
  • Role-based Applications in Finance

Getting Started

Clone the repo:

git clone https://github.com/denv3rr/financial_probability.git
cd financial_probability

If using Jupyter Notebooks:

jupyter notebook notebooks/interactive_formula_explorer.ipynb

Use Cases

Role Application
Financial Advisory Explain risk vs. return, use FV/PV to model client portfolios
Investment Analysis Calculate Sharpe, beta, and expected return scenarios
Risk Management Use Monte Carlo to estimate downside probabilities
Quantitative Analysis Run correlation matrices and regression on financial assets

Formulas

View full math-rendered version in notebook:
View the Notebook →

Rendered using LaTeX with SVG images via Codecogs


🎲 Probability

P(A)

E(X)

Var and Std Dev

Covariance

Correlation


💸 Time Value of Money

FV

PV

NPV

IRR


📊 Portfolio Theory

E(Rp)

Portfolio Variance

Sharpe Ratio

CAPM

Beta


🎲 Monte Carlo Simulation

Monte Carlo

Dist


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Key probability and financial formulas.

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