A volatility model should be able to forecast volatility. Virtually all the financial uses of volatility models entail forecasting aspects of future returns. Typically a volatility model is used to forecast the absolute magnitude of returns, but it may also be used to predict quantiles or, in fact, the entire density. Such forecasts are used in risk management, derivative pricing and hedging, market making, market timing, portfolio selection and many other financial activities. In each, it is the predictability of volatility that is required. A risk manager must know today the likelihood that his portfolio will decline in the future. An option trader will want to know the volatility that can be expected over the future life of the contract.

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The dropbox folder contains exercises, research papers and industry cases that will be covered in linear regression.

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                is a coding software for statistical computing.                              Download here.

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                is a free, open-source, software.

                Download here.

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I have a blog titled review of different softwre packages.