import React from 'react'; import { BookOpen, X, TrendingUp, BarChart2, ShieldAlert } from 'lucide-react'; import 'katex/dist/katex.min.css'; import { BlockMath, InlineMath } from 'react-katex'; interface SandboxMathModalProps { isOpen: boolean; onClose: () => void; } export default function SandboxMathModal({ isOpen, onClose }: SandboxMathModalProps) { React.useEffect(() => { const handleKeyDown = (e: KeyboardEvent) => { if (e.key === 'Escape') { onClose(); } }; if (isOpen) { window.addEventListener('keydown', handleKeyDown); } return () => { window.removeEventListener('keydown', handleKeyDown); }; }, [isOpen, onClose]); if (!isOpen) return null; return (
Institutional Portfolio Construction & Allocation Spec
The sandbox constructs a continuous synthetic asset representing your active weight allocations and its daily return track:
Active Percentage Weighting (
Synthetic Portfolio Log Return (
Solves the system-wide macro response model across all historical event instances
Panel Model Specification with VIX Controls:
where:
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The Kelly Criterion optimizes allocation sizing to maximize the expected value of the logarithm of wealth, balancing capital preservation with growth:
Theoretical Kelly Fraction (
where:
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Fractional Kelly (Half-Kelly) Safety Buffer:
To mitigate estimation variance and protect against catastrophic drawdown due to model error or fat-tailed market returns, the cockpit clips the suggested sizing to a **Half-Kelly** multiplier ($0.5$).