Oil and Gold Models – An introduction to risk, models and valuation – Bangkok, 14th November, 2011
Welcome to the resource page for attendees of the Wealth Management’s Oil and Gold workshop conducted at the Landmark hotel in Bangkok, Thailand on 14th November 2011 for its clients, partners and well wishers.
The workshop focused on building models for oil and gold and also reviewed some of the associated risk limits with an emphasis on Pre-Settlement, Stop Loss, Transaction and Expectation driven limits. We reviewed price, volatility and relative value models and also took a look at fundamental drivers of pricing for Gold and Oil.
The workshop finished with a Golden lucky draw for gold and a copy of Risk Applications and Frameworks.
Here is a link to the downloadable pdf edition of oil and gold models pricing workshop with and without the onsite doodling.
Also see the complete topic wise Catalogue of training courses (live, instructor led) offered by our team in collaboration with Wealth Management in Thailand.
In addition to the above materials you may also be interested in seeing the following related posts on Oil and Gold models at the FinanceTrainingCourse.com site.
Free online content on Oil and Gold Modeling for portfolio managers
In the following posts we concentrate on two commodities, crude oil and gold, and discuss various methods of modeling their prices. We estimate the possible direction prices will move in response to certain market drivers. We consider the impact of the interrelationships between commodity pairs and between the commodity and other risk classes, such as currency pairs and the impact of a break-down in these relationships under times of stress. We look at market fundamentals, demand for and supply of the commodities, reducing/ increasing spreads between different blends in the case of crude oil, growth of commodity stockpiles, market growth trends in the developed and developing world, etc and how these factors could impact the results of our models.
Free Online case study on applying oil price volatility risk management techniques for an oil refinery
Aside from the real life examples used in the courses and posts mentioned above, we also provide a crude oil specific case study that covers a risk management framework for managing inventory and margin losses of a petrochemical firm. A Value at Risk based approach is utilized to determine acceptable levels of risk for the firm which is then used in devising a plan for the implementation and management of an appropriate control structure.
This case-study is available as a standalone post: Master Class: Risk for the Oil and Petrochemical Industry.
It is also covered in session III of the video course “Cross Selling Treasury Products Training Video” mentioned earlier.
FinanceTrainingCourse.com also runs a subscription based site for customers that provides all available html, pdf and video course content for a fixed annual or quarterly charge to individual customers. An enterprise license for the same e-learning resource is also available for corporate and institutional customers.
Here is an outline of one of the many video courses available on the enterprise site
What material does the commodities course cover?
For sale video course
Price volatility in crude oil, gold, silver, cotton, sugarcane, wheat and cereals has created an unprecedented opportunity for corporate relationship managers to cross sell treasury products to their institutional, trading, manufacturing and high net worth customers. In our video course we present a framework for empowering client facing treasury teams to go out and cross sell high value, high margin trading concepts to clients by educating customers about their exposures and some of the solutions available to reduce the risk associated with the same exposures.
You will learn to:
- Appreciate the linkage between commodity markets (precious metals, crude oil), currencies and rates
- Trace the impact of monetary policy announcements on commodity markets
- Explain trading strategies using futures, options and exotic products
- Understand trading triggers
- Derive risk limits for counterparty exposures
The course covers:
- Core concepts such as volatilities, trailing volatilities, interconnections & relationships and trends
- Specific products and trades such as futures, forwards and options, exotic contracts etc.
- Trading tools such as analyzing the fundamentals of oil and gold
- Treasury limits such as stop loss limits, PFE, PSE or counterparty limits
- Calculating Value at Risk, Pre Settlement Risk (PSR) and Potential Future Exposure (PFE).
- Linking PFE and PSE to counterparty limits.
What are the pre-requisites, if any, for this course?
We recommend the following basic courses that will help you become familiar with the terminology and methods used in our models:
- Market Risk Metrics
- Calculating Value at Risk (VaR)
- Computational Finance: Building Monte Carlo (MC) Simulators in Excel
Related Comprehensive Course Packages including on-site option
Related Video courses for sale
- Quant Crash Course: Parts 1 to 4 – Available for Sale
- Setting Value at Risk (VaR), Stop Loss, Pre Settlement (PSR) and Counterparty Limits: Risk Training Videos
- VaR Training Video: Calculating VaR (Value at Risk) using VCV and Historical Simulation
Related Books/ PDF courses for sale
- Understanding Commodities Risk
- Derivatives Crash Course
- Calculating VaR – Includes case study
Related Excel files for sale
- Crude Oil Mispricing model
- Relative Gold Price model
- Monte Carlo Simulator with Historical Returns
- Monte Carlo Simulation – Commodity – Example
- Calculating VaR – EXCEL Example
- Portfolio VaR – EXCEL Example
- Portfolio Risk Metrics Example