To calculate Value at Risk (VaR) to meet your specific requirements, it's necessary to choose an appropriate Z-Score for use in the VaR calculation. The Z Score is a really simple statistical tool, but when it comes to Value at Risk you need to choose a value that's suitable for your own risk requirements. This episode explains what a Z-Score is, and how to use Z Score tables to choose an appropriate value.
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This is Episode 7 in the Darwinex 'Institutional-Grade Risk Management Techniques' Playlist: https://youtube.com/playlist?list=PLv-cA-4O3y979Ltr9wQ2lRJu1INve3RCM
Video Contents:
00:00 Introduction to Z Scores
00:21 Why Darwinex?
01:16 Using Z Scores for the Value at Risk Calculation
02:40 Relationship between Z Scores and Standard Deviation
05:41 Z Score Tables
07:38 Z Score values for VaR (95% and 99%)
08:22 Summary and Next Episodes
Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter) are for educational purposes only and are not to be construed as financial and/or investment advice.
Risk disclosure: https://www.darwinex.com/legal/risk-disclaimer