Are there any trigonomic calculations used in the world of finance?
Are there any websites that explain how trig is used in finance?
Finance best answer:
Answer by JoeyV
Some examples:
1) Fourier analysis - There's some math out there that says that you can use sines and cosines to approximate any cyclical function. That means that if you are trying to find say sales trends in something with seasonality, you need to remove the seasonality using Fourier series.
2) Trig substitution in calculus - There are lots of integrals in calculus that you solve using trigonometric substitutions. Some of those integrals must be useful in finance somewhere.
3) Projections into sub-manifolds - Tons of approximation theories can be viewed geometrically in that you are taking something complicated but approximating it by looking at its projection into a simpler space. For example, all regression analysis can be viewed this way and then all this stuff about ANOVA tables is just the Pythagorean theorem in a significantly different space than is usually considered.
4) Computer simulations - Trig is really handy when you are generating random numbers with particular characteristics.
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