# Hieu Nguyen Phi, FRM

How I enjoy my life

## Linear Discrimination Analysis

According to Bayes’ Theorem, the posterior distribution that a sample \(x\) belong to class \(l\) is given by

## International Parity Notes

International parities are concerned with the relationships between the values of two or more currencies and the respective economic conditions in these countries, and the way in which these relationships respond to the changing economic conditions in these countries. International parities are important since they establish relative currency values and their evolution in terms of economic circumstances, and cross border arbitrage may be possible when they are violated.

## Open Economy Macroeconomics

The balance of payments and the international investment position are designed to measure and present an economy’s external activity engaged with the rest of the world, such as flows of goods, services and capital during certain periods and the accumulated stocks of assets or liabilities at certain times.

## Exploratory Data Analysis in Credit Risk Modeling

Exploratory data analysis is a means for gaining first insights and getting familiar with your data. Many databases are very complex. Exploring all data at hand typically requires dealing with masses of data, or big data. Looking at observations of variables object by object is therefore usually too time con- suming, too costly, or simply not possible. Therefore we aggregate the information behind each variable and compute some summary or descriptive statistics and provide summarizing charts. We…

## Higher Order Moments Using the Survival Function

Students in a first-year probability course learn the concept of the moment of a random variable. The moments are related to various aspects of a probability distribution. In this context, the formula for the mean or the first moment of a non-negative continuous random variable is often shown in terms of its c.d.f. (or the survival function). However, higher order moments are also important, for example, to study the variance or the skewness of a distribution. In this note, we consider the \(r\)…

## My Viewpoints & Tips for Personal Finance

From my perspectives about finance and my experience in self-reliance and growth in active Saigon (i.e. Ho Chi Minh City) for almost 7 or 8 years, plus recently seeing some health-related problems, I gradually have a positive feedbacks to my life and hope to contribute some little thing to the community. So I decided to share my viewpoints and tips about personal finance, which was also suggested by my friends and students.

## Time series analysis - An Overview

Time series is one of the most common types of data in financial world. Any risk managers should be aware of how to analyze a time series. Time series models are those using their own information to estimate themselves. Meanwhile, structural models are those using relationships between variables to explain movements or changes in one particular variable. This post will overview the analysis of a time series.

## Probability and Statistics

Probability and Statistics are two areas which seems to rather difficult for the undergraduate. When I was a college student, they are subjects that consume most of my time, making them become my nightmares every night. However, have you ever wondered that why they always go along with each other, at least in undergraduate program? Although at some universities, they might be separated in different faculties, most of economics programs recognize that they package Probability and Statistics into…

## Understand Volatility and Copula Correlation in Risk Management context

Volatility and Copula Correlation are the most important parameters in finance, especially risk management area because of their existence in almost controversial issues today such as risk measurement, wrong-way risk, risk interdependence, long-memory patterns, etc. However, a large majority of people misunderstand them, leading to several deadly serious frauds in trading and risk management practice. Consequently, it is important to re-state the nature of volatility and correlation.

## Prepare GARP's FRM exams in 3 months - Hieu NP's tips and strategies

Hi all. Today in my blog, I’ll tell you who do not want to spend so much money for studying at centers some tips and strategies in preparing the FRM exams by GARP just only 3 months!