Скачать или смотреть Intro to Hidden Markov Models (HMM) — Explained Simply for Finance

In this video, we break down the Hidden Markov Model (HMM) — one of the most important tools for understanding regime changes in financial markets.

Even though markets look random, they actually move through hidden states: calm periods, volatile swings, risk-off transitions, and crisis episodes.
The problem? These regimes are not directly observable.

HMM gives us a framework to detect these hidden regimes using historical data, probability, and pattern recognition.

What you’ll learn in this video:
✔ What a Hidden Markov Model is
✔ Why HMM is useful in time-series and finance
✔ How hidden states and transition probabilities work
✔ The basic intuition behind regime-switching models
✔ Why HMM is a foundation for more advanced quant models

This video is part of a full series.
In the next episode, we’ll apply HMM to 15 years of Indonesian market data