THE FINTECH BUILDER · SYNTHETIC LEARNING LAB

Factor-Model Covariance

Change loadings, common-factor risk and specific risk independently.

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Keyboard: Tab to a control; native arrow keys change sliders. Alt + Right steps, Alt + Left goes back. Reduced-motion Play advances one state only.

  1. 1. Validate B, PSD F and nonnegative D
  2. 2. Compute each common-risk cell BFBᵀ
  3. 3. Add specific variances only on diagonal
  4. 4. Check portfolio variance two ways

Calculated history

Calculated stateValues from the current input prefix, not a decorative trace.
● Selected experiment┄ Canonical parameters / same cutoff

Result and diagnostics

Sigma=B F B^T+diag(D)

Calculation trace

Exact current output (JSON)


Input audit
Only the shown information prefix is supplied to the calculation. Synthetic fixture; no live market data or fitted performance claim.
Exact input supplied to the reference engine