Research preview

The recent denial by a former U.S. leader that the United States offered sanctions relief to Iran has reminded markets that political headlines can quickly alter asset prices. For quantitative traders, such events are not just news bites; they are catalysts that change the statistical properties of returns, correlations, and ultimately the risk‑adjusted performance of portfolios. This article walks through the mechanics of translating a geopolitical shock into a quantitative edge, using core finance theory and a concrete volatility example....