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402-0816-00L 5 Credits BSC , MSC D-PHYS , D-MATH

Computational Physics and Econophysics

Lecturers & Examiners: Prof. Dr. Diethelm Würtz
VVZ CR n/a

Last Updated: 2026-02-05 15:29:43

Abstract

Introduction to principles of computational finance and financial engineering from an econophysicist point of view. Prerequisite R/SPlus programming.

Objective

Introducing main statistical methods for numerical modelling of financial time series, valuation of derivatives, and optimization of portfolios. Implementing numerical methods using the statistical software environment R.

Content

- Overview on R/Rmetrics and SPlus/Finmetrics. - Financial Returns, Stylized Facts, Stable and Hyperbolic Distributions - ARMA and GARCH Time Series Modelling, Trends and Unit Roots - Technical Analysis, Trading Models and Decision Making - Extreme Value Theory and Dependence Structures (Copulae) - Plain Vanilla and Exotic Option Pricing, Monte Carlo Simulations - Markowitz and CVaR Portfolio Optimization

Resources

Lecture Notes

Lecture notes written in English as well as R/Rmetrics software forregistered participants in the course.

General Information

Language
English
Levels
BSC , MSC
Frequency
Yearly recurring

Examination

Type
session examination
Mode
oral 30 minutes

Course Components

Type Title Time & Place Hours
lecture Computational Physics and Econophysics
or by arrangement
  • Wed 11:15-13:00 (HG D 5.1)
  • Thu 16:45-18:30 (HPP H 7)
2 h weekly
exercise Computational Physics and Econophysics
  • Thu 17:15-19:00 (HG D 3.3)
2 h weekly

Offered In