Shannon Carroll Financial Engineering
Work Samples

From market drivers to measurable investment decisions.

Six work samples spanning credit, rates, portfolio construction, and pricing. Across these projects, verifying value drivers means decomposing equity valuations into cash-flow and discount-rate expectations, separating common return factors from idiosyncratic noise, modeling how volatility changes through time, estimating the market-implied risk of corporate default, and testing how hedging strategies behave when volatility and transaction costs depart from idealized assumptions.

Portfolio & Risk Factor-informed optimization, VaR, and tail-risk backtesting
Credit & Rates Structural credit models and calibrated interest-rate trees
Market Dynamics Order-book signals and deep hedging under stochastic volatility
Portfolio Construction & Risk

Optimizers can amplify the noise until you use the right constraints

Factor-informed clean energy portfolio

A constrained mean-variance optimization across five clean-energy ETFs, disciplined by return shrinkage and validated against a Fama-French six-factor regression — Sharpe 0.564 vs. a 0.498 equal-weight benchmark.

Portfolio Optimization Factor Shrinkage Fama-French Attribution
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VaR backtesting, GARCH & Extreme Value Theory

Backtested historical, exponentially-weighted, and GARCH-based VaR estimates against realized exceptions, then fit an Extreme Value Theory tail model to compare coverage accuracy across methods.

Risk Management GARCH Extreme Value Theory
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Credit & Fixed Income
Credit & Fixed Income

Curve mechanics and credit fundamentals, tested against real filings and market data.

Black-Derman-Toy interest rate tree calibration

Calibrated a BDT short-rate tree to observed discount factors and a market volatility curve via sequential bisection, then used backward induction to value a bond and an embedded option under both European and American exercise.

Rates BDT Tree Embedded Options
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Colombian private-company credit screening

A fundamentals-based screening and ranking pipeline built on Colombia's Supersociedades XBRL filings — cleaning raw balance-sheet and income-statement data, then scoring companies on quality, safety, and value to construct a risk-capped candidate portfolio by position and sector.

Credit Risk XBRL Filings Factor Scoring
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Market Dynamics
Market Dynamics

From order book to stochastic modelling, know what's about to happen before the tape does.

A market-neutral trading signal built on order-flow imbalance, and a neural-network hedging policy tested against classical Black-Scholes delta hedging.

AI lead-lag microstructure trading

A market-neutral repricing signal on the AI hardware/software order book, built on Stoikov microprice dynamics and walk-the-book execution — Sharpe 22.37 out-of-sample with a market beta indistinguishable from zero.

Market Microstructure Order-Flow Imbalance Dollar-Neutral Execution
22.37 Sharpe ratio (test, out-of-sample)
63.4% Hit rate across 235 test trades
β 0.06 Market beta, not distinguishable from zero
-$1.38 Max drawdown, test period
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Adaptive deep hedging

Trained a neural-network hedging policy end-to-end on simulated tail risk, comparing it against closed-form Black-Scholes delta hedging under transaction costs and both geometric Brownian motion and Heston stochastic volatility.

Derivatives Deep Hedging Heston Model
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Work With Me

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Open to full-time and internship roles in quantitative finance — reach out directly.