Glossary
Asset identifiers
Assets identifiers are made of a type prefix and an identifiers. Edgelab supports ISIN, Cash ISO code and Edgelab ID as main main identifiers. For these types of identifiers, the prefix is optional.
Identifier type | Description | Examples |
---|---|---|
ISIN | The ISIN code of the instrument | US0231351067 isin/US0231351067 |
ISO code currency | ISO code of the currency of risk-free cash instruments | USD cash/USD |
Edgelab ID | The unique Edgelab ID of the instrument | 303bca1-ba20-43c6-b4a8-882411d1efa4 id/e303bca1-ba20-43c6-b4a8-882411d1efa4 |
The add-in also supports the following identifiers, for which the use of an explicit prefix is mandatory.
Identifier type | Description | Examples |
---|---|---|
FIGI | The Financial Instrument Global Identifier of the instrument | figi/BBG001S5PQL7 |
Bloomberg Ticker | The unique identifier used in Bloomberg terminal | bbg/AMZN UW |
SEDOL | Stock Exchange Daily Official List identifier | sedol/2000019 |
Finally, the custom identifiers which are used in your organization can also be retrieved, using the explicit csid prefix
Identifier type | Description | Examples |
---|---|---|
CSID | Customer specific identifiers | csid/custom-001 |
Calculation level
Argument name | Description |
---|---|
positions | performs the calculation for each position of the portfolio. This calculation level will supersede “allocations” in the upcoming version of the Add-in. |
portfolio | performs the calculation at the portfolio level. This calculation level will supersede “aggregates” in the upcoming version of the Add-in. |
contributions | provides the contribution of a position to the aggregate risk of a sub-portfolio or portfolio. |
Measures for ELASSETMEASURE
The keys in the next table presents the possible types of risk figures that can be drawn from the ELASSETMEASURE function. If the parameter normalized is set to True, when a position is a fund, then the yields are aggregated with the weights of the fund’s asset class that are renormalized. For instance a fund holds 50% bonds and 50% equities. To compute the current-yield (2%) of the bond part, if normalized is True, then the function retrieves 2%. If normalized is False then the yield is 2% * 50% which is 1 %.
Note: the letter case has no influence on the functions.
Key | Description |
---|---|
autocall-on-next-observation | provides the probability of the next autocall |
current-yield | represents the return on a bond if one purchases it and holds it for a year |
expected-time-to-maturity | the expected time to maturity |
no-autocall | returns the probability of no-autocall |
ytc | yield-to-call is the total return on an instrument if it is held until the call date (before maturity) |
ytp | yield-to-put is the total return on an instrument if it is held until the put date (before maturity) |
ytm | yield-to-maturity is the total return on a bond if it is held until maturity |
barrier-hit | returns the probability of hitting the barrier with an instrument |
fund-total-yield-with-current-yield | The total current yields of funds |
fund-total-yield-with-yield-to-worst | The total yield to worst of funds |
current-yield | The current yield of the position |
yield-to-worst | The current yield of the position |
dividend-yield | The current yield of the position |
earnings-yield | The current yield of the position |
Measures for ELASSETMEASUREPORTFOLIO
The keys in the next table presents the possible types of risk figures that can be drawn from the ELASSETMEASUREPORTFOLIO function.
Note: the letter case has no influence on the functions.
Key | Description |
---|---|
ytc | Aggregates the yield-to-call of all instruments in the portfolio (when feasible). The ytc is the total yield on an instrument if it is held until the call date (before maturity). |
ytp | Aggregates the yield-to-put of all instruments in the portfolio (when feasible). The ytp is the total yield on an instrument if it is held until the put date (before maturity). |
ytm | Aggregates the yield-to-maturity of all instruments in the portfolio (when feasible). The ytm is the total yield on an instrument if it is held until the maturity date. |
fund-total-yield-with-current-yield | Aggregates the current yield (when feasible) of all funds in the portfolio. |
fund-total-yield-with-yield-to-worst | Aggregates the yield to worst (when feasible) of all funds in the portfolio. |
current-yield | Aggregates the current yield of all instruments (when feasible) in the portfolio. |
yield-to-worst | Aggregates the yield to worst of all instruments (when feasible) in the portfolio. |
dividend-yield | Aggregates the dividend yield of all instruments (when feasible) in the portfolio. |
earnings-yield | Aggregates the earnings yield of all instruments (when feasible) in the portfolio. |
total-yield-with-current-yield | Aggregates the total current yield of all instruments and taking the funds’ yields at the fund level (when feasible) in the portfolio. |
total-yield-with-yield-to-worst | Aggregates the total current yield of all instruments and taking the funds’ yields at the fund level (when feasible) in the portfolio. |
Measures for ELBENCHMARKMEASURE
The keys in the next table present the possible types of risk figures which could be used in the generic ELBENCHMARKMEASURE function.
Note: the letter case has no influence on the functions.
Key | Description |
---|---|
tracking-error | returns the tracking error of a portfolio to a benchmark |
l2-distance | returns the euclidian distance between the portfolio and benchmark returns |
beta | returns the linear relationship between the portfolio and the benchmark returns. If the benchmark return increases by 1 unit, the portfolio return will increase by beta. |
correlation | returns the correlation between the portfolio and the benchmark. |
Measures for ELCURRENTMEASURE
The keys in the next table presents the possible types of risk figures which could be used in the generic ELCURRENTMEASURE function.
Note: the letter case has no influence on the functions.
Key | Description |
---|---|
NPV | provides the net present value |
Duration | returns the duration of a bond |
DV01 | returns the dollar change for 1bp change in the yield curve of a bond |
Convexity | returns the convexity of a bond |
CS01 | returns the dollar change for 1bp change in the credit curve of a bond |
CVA | returns the market value of the counterparty credit risk |
delta | returns the change in the option price with respect to 1 unit of change of the underlying price |
gamma | returns the change of delta with respect to a change in the underlying prices |
theta | returns the change in the option price with respect to the time decay to the expiration date. |
vega | returns the change in the option price with respect to a change in the underlying volatility |
Measures for ELPERFORMANCEMEASURE
The keys in the next table presents the possible types of risk figures which could be used in the generic ELPERFORMANCEMEASURE function.
Note: the letter case has no influence on the functions.
Key | Description |
---|---|
expected-return | The expected return |
sharpe-ratio | the excess return (with respect) to a risk free rate per unit of portfolio risk (volatility) |
Measures for ELRISKMEASURE
The keys in the next table presents the possible types of risk figures which could be used in the generic ELRISKMEASURE function.
Note: the letter case has no influence on the functions.
Key | Description |
---|---|
Volatility | returns the volatility measures |
VaR | returns the value at risk measures |
ES | returns the expected shortfall |
average-loss | returns the average-loss |
Measures for ELYIELDSOLVING
The keys in the next table presents the possible types of risk figures that can be drawn from the ELYIELDSOLVING function.
Note: the letter case has no influence on the functions.
Key | Description |
---|---|
ytc | yield-to-call is the total return on an instrument if it is held until the call date (before maturity) |
ytp | yield-to-put is the total return on an instrument if it is held until the put date (before maturity) |
ytm | yield-to-maturity is the total return on a bond if it is held until maturity |
current-yield | represents the return on a bond if one purchases it and holds it for a year |
Risk horizon
Argument name | Description |
---|---|
10 | 10 days |
30 | 30 days |
252 | 252 days |
Scenario types
Key | Description |
---|---|
historicalReturns | The scenarios are obained from the last 2 years of prices changes (relative returns) |
historicalInnovations | The scenarios are obtained from the last 2 years of innovations (returns discounted by the volatility), multiplied by a forecast for the volatility up to the risk horizon. The volatilities are obtained from a long memory ARCH process. |