Finance

← Back to Domain-Specific Abstractions by Domain

8 domain-specific abstractions whose origin domain is Finance.

• Current Ratio — Measure balance-sheet liquidity at a reporting date as current assets divided by current liabilities, interpreted through asset convertibility, liability timing, seasonality, and industry operating cycles.
• Dow Jones FXCM Dollar Index — A named foreign-exchange basket methodology that began from equal U.S.-dollar position values in EUR, GBP, JPY, and AUD pairs, holds fixed currency amounts between exceptional rebalances, and converts their spot-rate changes into one level that rises as the dollar strengthens against the basket.
• Elliott Wave Principle — Interpret market-price charts through a recursively nested taxonomy of motive and corrective wave counts, while treating every count as a revisable reading rather than established predictive evidence.
• Ohlson O-Score — Estimate a firm's near-term bankruptcy probability by feeding nine accounting and size variables into Ohlson's fitted conditional-logit model, with interpretation constrained to its population, horizon, and data definitions.
• Risk return ratio — A performance measure relating an investment's return over a stated period to a stated risk quantity, such as maximum drawdown, so reward is interpreted relative to exposure.
• Spot Market — Organize trades in financial instruments or commodities for delivery and settlement on the market's current, near-term convention, as distinct from contracting now for deferred delivery.
• Technical analysis — A disputed financial-market methodology that seeks trading or forecasting signals from historical price, volume and derived chart patterns rather than primarily from issuer fundamentals.
• Upside Potential Ratio — Compare an investment's expected above-target return with its downside deviation below the same minimum acceptable return by dividing first upper partial moment by the square root of second lower partial moment.