Research preview

The recent phone call between Egypt’s foreign minister and his Iranian counterpart, urging an end to attacks on Saudi Arabia, highlights how rapidly regional tensions can shift. For quantitative traders, such events are not just news headlines—they are variables that can move markets, alter risk premia, and test the robustness of big‑data models. This article shows how to incorporate sudden geopolitical shocks into high‑dimensional regressions, factor models, and machine‑learning pipelines while guarding against over‑fitting. The Challenge of Real‑Time Geopolitical Data Geopolitical news arrives in unstructured formats: tweets, press releases, and wire reports....