Do I need to install anything?

No. It runs in any modern browser, free, with no account required.

For Educators · Pairs Trading

Pairs Trading for a VaR estimate

Built for educators teaching it to a class. Drop a live demo into a lecture or assign it as a shareable link — no lab installs. Simulate a VaR estimate live below — adjust the inputs and watch it respond, right in your browser.

Linear Regression

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Linear RegressionLive

least squares & R²

Controls

Presets

True slope

Noise level

Data points

Ordinary least squares finds the line that minimizes the sum of squared vertical residuals (the gray drop-lines). R² measures the fraction of variance the line explains — 1 is perfect, 0 is useless. Add noise or remove points to watch the fit and R² degrade.

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Data Inspector

Fitted slope0.000

Intercept0.000

R²0.000

Correlation r0.000

Governing equation

\overset{y}{^} = 0.00 + 0.00 x, β_{1} = \frac{\sum ( x - x ˉ ) ( y - y ˉ )}{\sum ( x - x ˉ ) ^{2}}, R^{2} = 0.00

Reading this result: R² = 0.00: noise (2) swamps the signal, so least squares can barely tell the slope from flat — adding data points would tighten the estimate.

Runs locally in your browser — free forever. Scale to the cloud when reality gets heavy.

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Monte Carlo

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Monte Carlo Price SimulationLive

geometric Brownian motion

Controls

Presets

Initial price S₀

Expected return μ

Volatility σ

Horizon (years)

Geometric Brownian motion models a price with constant drift and random volatility — the assumption behind Black-Scholes. Running hundreds of simulated paths reveals the full distribution of outcomes, not just an average. Educational tool, not investment advice.

▶ Run in Python

Data Inspector

Median outcome$0

5th percentile$0

95th percentile$0

Governing equation

S_{t + Δ t} = S_{t} e^{(0.07 - \frac{0. 2 ^{2}}{2}) Δ t + 0.2 Δ t Z}, \tilde{S}_{1} \approx $0

Reading this result: Median outcome is about $0, just under the drift-only $107 — GBM compounds in log-space, so volatility always pulls the typical path below the average.

Runs locally in your browser — free forever. Scale to the cloud when reality gets heavy.

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More with Pairs Trading

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Frequently asked questions

Is this good for educators?: Yes — this version of "Pairs Trading for a VaR estimate" is framed for educators teaching it to a class. Drop a live demo into a lecture or assign it as a shareable link — no lab installs.
Do I need to install anything?: No. It runs in any modern browser, free, with no account required.