Economics, Finance, Coding & Tech Glossary

Excess return above the benchmark.

Return expressed as a yearly rate, regardless of holding period.

The defined way one piece of software asks another for data or actions.

Simulating a strategy on historical data to evaluate performance.

A measure of a stock's sensitivity to market movements.

Closed-form price for European options.

A bond's price sensitivity to interest-rate changes.

Expected return as risk-free rate plus beta times market premium.

An automated pipeline that tests every change and moves passing code towards production.

A text interface where you control a program by typing commands instead of clicking.

An inventory of every IT component and of what depends on what.

Output as a function of capital and labour with constant returns.

Two non-stationary prices whose linear combo is stationary.

Gains from trade arise from differences in opportunity cost.

An isolated, portable bundle of an app and everything it needs to run.

Linear relationship between two variables, from −1 to +1.

Splitting data into train/test folds to evaluate model generalisation.

Named temporary result set defined with WITH … AS (…).

Pandas 2D table structure with labelled rows and columns.

A package, library or service that your code needs in order to run.

The internet's address book: it translates domain names into IP addresses.

Peak-to-trough decline in portfolio value.

Prices already reflect all available information.

A named value set outside your code that a running program reads as configuration.

Average loss in the worst tail beyond VaR.

String with embedded expressions: f"value is {variable}".

Extends CAPM with size (SMB) and value (HML) factors.

Links nominal interest rates, real rates, and inflation.

Single-number measure of income or wealth inequality (0–1).

A version control tool that records the changes you commit to a project as a history.

Values a stock as next dividend over (required return − growth).

Total market value of goods & services produced in an economy.

Aggregates rows that share a column value.

The request and response protocol of the web; HTTPS is the same protocol, encrypted.

Rented virtual machines, storage and networks that you configure and run yourself.

One application for writing, running, debugging and testing code.

Year-over-year percentage rise in a basket of consumer prices.

Active return divided by tracking error.

The discount rate that makes a project NPV exactly zero.

A widely used framework of best practices for running IT as a dependable service.

Combines rows from two tables based on a matching condition.

A plain-text format for structured data, built from objects, arrays and simple values.

The bet size that maximises long-run logarithmic growth.

How an initial spending injection cascades into larger GDP change.

Window functions that look at the previous / next row.

Fit a straight line (or hyperplane) that minimises the sum of squared errors: ordinary least squares (OLS).

Compact syntax to build a list from an iterable.

Classification model that turns a linear score into a probability through the sigmoid.

Buy winners (long) and sell losers (short) simultaneously.

Optimal portfolio weighting that maximises return per unit of risk.

The tendency of a price or spread to return to its average.

Proving who you are with two or more different kinds of evidence, not just a password.

The tendency of recent winners to keep outperforming.

A state where no player can gain by changing strategy alone.

Today's value of future cash flows, discounted for time and risk.

Bell-shaped probability distribution defined by mean and std dev.

Fast, fixed-type numerical array - the backbone of scientific Python.

Empirical link between unemployment and the output gap.

Probability of observing the result if the null hypothesis is true.

A managed platform where you deploy your own code and the provider runs the servers.

A tool that installs, updates and removes software, along with what it depends on.

1D labelled array - like a single DataFrame column.

Short-run inverse relationship between inflation and unemployment.

How responsive quantity demanded is to a change in price.

The live system that real users and real data depend on, as opposed to a test copy.

A request to review the changes on a branch and merge them into another, usually main.

Exchange rates should equalise the price of identical goods.

A no-arbitrage link between calls, puts, the stock, and a bond.

Money supply × velocity equals price level × real output.

Proportion of variance in the outcome explained by the model.

The package format and low-level tool behind Red Hat Enterprise Linux, Fedora and SUSE.

Finished software you use over the internet; the provider runs everything beneath it.

Python ML library: classifiers, regressors, scalers, pipelines.

A kit of libraries, tools, documentation and samples for building on one platform.

Credentials such as API keys, passwords and tokens that grant access to a system.

Risk-adjusted return: excess return divided by volatility.

A contract promising a level of service, such as uptime, usually with penalties if missed.

Like Sharpe, but penalises only downside volatility.

An encrypted way to log in to a remote computer and run commands on it.

Sign in once through an identity provider and get into many work apps.

Average spread of values around the mean.

A query nested inside another query.

A dollar today is worth more than a dollar tomorrow.

Excess return per unit of market (systematic) risk.

Worst expected loss over a horizon at a confidence level.

A computer simulated in software, with its own operating system, on a physical host.

Standard deviation of returns - a measure of risk.

An encrypted tunnel that connects your device to a private network over the internet.

Blended after-tax cost of a firm’s equity and debt.

Performs a calculation across rows related to the current row.