Mathematica Solution for Financial Engineering and Mathematics

Rapidly develop new models and deploy them to analysts and traders. Power front-to-back trading systems with instant computations.

From exploring market behavior to managing portfolios, the Mathematica financial engineering solution provides state-of-the-art calculations and easy connectivity to databases and web services, as well as high-performance computing with built-in parallel processing that scales to a full grid.

Exploring new theories of market behavior

Interactive tool showing a rule diagram for a trader model with three choices: buy, sell, or hold

Key Capabilities

Why Choose Mathematica

Ways to Use

Mathematica includes thousands of built-in functions for computation, modeling, visualization, development, and deployment »
Financial engineering and mathematics specific capabilities:
Flexible platform for rapid development and exploration of financial models, with hundreds of highly efficient built-in algorithms relevant to quantitative research
Comprehensive derivative calculations, including American, European, and exotic derivative pricing; Greeks; and implied volatility »
Symbolic and numeric time-value-of-money computations including valuation of lump-sum amounts, annuities, and continuous or discrete cashflow streams »
Calculation of effective interest rates for continuous or discrete time processes and term structures »
Bond computation functions for values, sensitivity measures, accrued interest, and calendar measurements using continuous and discrete time coupon or interest rate processes and term structures »
Automated report creation, PDF export, and interactive deployment with Wolfram CDF Player or webMathematica to deliver results to management or clients
Instant interactive financial charts, with more than 100 built-in financial indicators available for display »
Support for 64-bit technology, high-performance computing, and built-in parallel processing that can be easily scaled up to a full grid for enterprise solutions »
Built-in standard probability distributions, including distributions based on data or other distributions, and statistical analysis tools »
The most advanced symbolic and numeric calculus system, including numeric integration and differential equation solving »
State-of-the-art solvers for symbolic and numeric equations, and the most complete set of special functions and algorithms »
Constrained nonlinear optimization, the interior-point method, and other linear and nonlinear optimization abilities »
Built-in linear, nonlinear, logit, probit, generalized linear, and other regression models to estimate conditional mean models »
Built-in financial data, including current and historic market data, plus programmatic and interactive access to financial and economic data from Wolfram|Alpha
Highly optimized algorithms for symbolic and numeric linear algebra and sparse linear algebra, enabling fast and efficient large-scale data computations »

Pull Mathematica's built-in current and historical financial and economic data into your models
Financial Data »
Access current and historical delayed stock, fund, and currency data, and more
Country Data »
Access GDP, exchange rate, and other socioeconomic data and time series for all countries
High-performance wavelet analysis for extracting information from financial market data »
Symbolic manipulation and optimization of C code, and automatic C code generation for immediate use of standalone executables in production systems
Load and access dynamic libraries and use built-in support for CUDA or OpenCL GPU computation for high-speed, memory-efficient execution
Free-form linguistic input produces immediate results without the need for syntax »
Automated precision control with specified input or output precision to automatically adjust computations to maintain or achieve precise results
A comprehensive system for discrete calculus, including difference equations, generating functions, and sequence visualization »
Efficient random number generation for Markov chain Monte Carlo (MCMC) techniques »
Highly customizable programmatic data visualization, including scaling functions; paired bar charts and histograms; and finance-specific candlestick, Renko, Kagi, and other charts »
Built-in connectivity to databases, web services, existing C++ code, other commercial programs, and Java and .NET frameworks, and close integration with Microsoft Excel and OpenOffice Calc spreadsheets »
Import and export all common data formats, including XML, XLS, CSV, and TSV, or use Mathematica Link for Excel to run Mathematica and Excel side-by-side
Hundreds of interactive models in the Wolfram Demonstrations Project, ready to be used and extended »
Valuation of equities and FX derivatives; calculation of hedging, sensitivity parameters, and survival probabilities; and advanced calibration schemes for risk analysis with respect to market data with UnRisk PRICING ENGINE »
Analysis of ARCH, GARCH, stationary, and non-stationary time series models using the Time Series application package »
Neural network modeling of financial data series with Neural Networks »
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Why Choose Mathematica

Key Capabilities

Why Choose Mathematica

Ways to Use

Compare Mathematica to your current tools. Do they have these advantages?
Powerful symbolic statistical computation and built-in functions for all standard statistical distributions
Competitor note: Advanced symbolic computational capabilities are unique to Mathematica
Fully automated precision control and arbitrary-precision arithmetic avoid the errors of traditional numeric systems »
Competitor note: Excel, Matlab, and other systems relying on machine arithmetic can show critical errors due to numerical accuracy failure
Gain accuracy and reliability by performing symbolic calculations, not just numeric ones
Competitor note: Matlab's and Java's built-in routines only handle numeric calculations
Choose from procedural, functional, and rule-based programming paradigms as needed for fast development and deployment »
Competitor note: Other computation environments use predominantly procedural languages

Symbolic capabilities of time-value and bond functions allow for seamless integration with Mathematica's statistics framework for use in financial computations involving uncertain outcomes
Competitor note: Other systems require the purchase of add-ons to add functionality
Having an integrated environment streamlines development, analysis, documentation, and delivery of custom financial models
Competitor note: Traditional programming languages like C/C++ don't have all the built-in computations and capabilities of Mathematica
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Ways to Use

Key Capabilities

Why Choose Mathematica

Ways to Use

Search for patterns in past data or predict future market movements by developing algorithms and deploying them as tools for traders
Mathematica rapidly prototypes products and trading strategies for the world's largest market maker in Eurodollar derivatives
Develop new theories to explain market efficiency
Build artificial markets to model agent behavior
Ensure accuracy by back-testing trading strategies and stress testing product models
Apply new mathematical tools to the pricing and hedging of derivative instruments »
Prototype applications based on analysts' findings and immediately deploy to traders
Develop new models for options and determine optimal asset prices »

Use neural networks and genetic algorithms to create evolving agents for market models
Access your RiskMetrics data, Bloomberg feeds, and QuantLib libraries, and link to other data and applications with built-in connectivity tools
Access real-time trading data and perform instant analysis »
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Key Capabilities