6/11 - AP Case Challenge

The AP Funds invites you to compete in the AP Case Challenge where you can get the opportunity to be interviewed for a thesis writing position at the AP Funds. In this case challenge you will investigate and learn how to implement a trading strategy that uses information from the equity market to predict the FX market. The case will be presented on an evening with drinks, snacks, and the opportunity to interact with quants and analysts from the funds.

The strategy we would like the participants to implement uses performance of major equity indices to predict the return of the associated currencies. The reason we can expect the equity market to have predictive power in the FX market is due to the institutional use of Currency Hedging. In very simple terms, Currency Hedging is the act of entering into a financial contract in order to protect against unexpected, expected or anticipated changes in currency exchange rates. Currency Hedging is used by financial investors and businesses to eliminate risks they encounter when conducting business internationally. Hedging can be likened to an insurance policy that limits the impact of foreign exchange risk. Hedging can be accomplished by purchasing or booking different types of contracts that are designed to achieve specific goals. All these contracts have in common that they entail a purchase of on currency and a sell in another.

If we can find a strategy that can predict the net effect of these hedges we can use this to systematically invest in the FX market.

Format:

You can compete in the case challenge individually or in groups of maximum 4 people. Submission should be emailed to fredrik.nylund@ap1.se no later than 2019-11-04

The 30 first students with a qualified solution will be invited to the case event on 2019-11-06 at 17:00 – 20:00 for drinks and snacks while we go through the challenge and the best entries get a chance to present their findings. The winner of challenge will also have the chance to present their thesis proposal at one of the AP-funds.

In order to participate in the challenge please visit the gitlab repository to learn more.

Time for event: 
Wednesday, 6 November, 2019 - 17:00 to 20:00
Event held in: 
English