Simple and transparent usage of Monte-Carlo simulations in Excel

Thetaris releases Theta Suite XL, an innovative Monte-Carlo toolbox for Microsoft Excel

Thetaris, a world-leading provider of modeling solutions for the financial sector, supports Excel analyses based on the Monte-Carlo simulation method with its new solution Theta Suite XL. Typical weak areas of Microsoft Excel like low performance and usability during the calculation of a large number of scenarios no longer pose a problem: Theta Suite XL defines the original simulation model outside of Excel, using the simple coding language ThetaML, which has been developed especially for Monte-Carlo simulations. Via the so-called Excel-Bridge, an Excel add-in, models can be configured and evaluated outside Microsoft Excel.
So users are able to execute Monte-Carlo simulations faster, more precisely and even more transparently, especially with the valuation of financial products, in the context of corporate planning and benchmarking or for the optimization of production processes and product strategies following the six sigma method.
Interested users may test-drive the novel features of Theta Suite XL in the Thetaris cloud by downloading a free demo package from the company Website: http://www.thetaris.com/thetasuite/excel . The package contains Excel templates for a range of Monte-Carlo based models.

Simulations have long been established as a means for better understanding complex interrelations in theory and practice. The Monte-Carlo simulation method is a kind of stochastic simulation and works with so-called random number generators. With the help of random numbers the computer generates a very large number of scenarios, the results of which are used in “what if” analyses for planning in a variety of domains.
Areas of application are e.g. the valuation of financial products, corporate planning and benchmarking, the assessment of project risks or the optimization of production processes and new product strategies following the six sigma method in the industry.

Microsoft Excel is often used for Monte-Carlo simulations; however, it shows significant weaknesses in usability when using higher number of simulations paths: ”Microsoft Excel is a fantastic tool for the embedding of data sources and a great one for reporting. However it is not geared towards simulation models like Monte-Carlo. For example, if you want to simulate a time series, you need the lines in the Excel spreadsheet to represent the time and the rows to fill in the different simulation paths. This often means that there is no space left for a strategy to build on this or for a second time series. But a typical simulation needs 1000 or more simulations paths, so in this case 1000 rows. Here Excel quickly reaches its limit”, explains Dr. Andreas Grau, CEO and head of sales at Thetaris. “If you want to simulate in Excel, the simulations itself can’t be filled into Excel cells.”

Theta Suite XL optimizes the use of MS Excel for simulations. The solution is based on the coding language ThetaML, which was developed especially for Monte-Carlo simulations.
This approach is easy to learn, intuitive and allows the focus on business aspects, as it shields the user from numerical problems. Via the so-called Excel-Bridge models can be opened and evaluated from Microsoft Excel and the results reported in the usual Excel layout. Based on this, any complex simulation can be handled easily.
Theta Suite XL by Thetaris enhances the user’s workflow with automatically generated interfaces that support direct values as well as cell references to the input values of the models in Excel. The Theta Debugger helps to avoid mistakes during the modeling process of the simulation, as it deeply analyzes a calculation run during development and displays information in a way that is tried and true for Excel users. Furthermore the Theta Result Explorer helps to understand the interrelations of simulation models through ready-made visualizations.

To find out how even the most complex models can easily be executed with Excel, the Excel-Bride add-in for MS Excel is ready to be downloaded for a free test-drive. The download package contains Excel templates for a range of equity models and - based on those - pricing calculators for options and fixed income products. All this can be tested directly online in the Thetaris cloud. 

Theta Suite XL is available now for the creation and valuation of your own models. The freeware version for use in academic areas as well as for evaluation purposes is ready for a cost-free download. The full version for commercial use costs 1800 Euro. Interested parties may find further information here.

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About Thetaris GmbH 
Thetaris is a world-leading provider of modeling solutions for the financial sector. These solutions are designed to support quantitative analysts and actuaries to manage financial risks in the face of escalating complexity in the world of finance. To this end, Thetaris has developed a landmark method called Computer Aided Finance (CAF). Thetaris offers consulting and innovative means of intuitive modeling, detailed analysis and automated creation of financial pro-ducts. Theta Suite and Theta Proxy are its flagship products, to be applied in trading operations, development of new financial products and risk management.

Public Relations contact 
Thetaris GmbH
Dr. Andreas Grau
Leopoldstr. 244
D-80807 Munich
+49 89 208039-480
E-Mail: grau@thetaris.com

1 comment:

christyjames said...

Well said, Microsoft Office Word and Excel have their own distinct advantages. There are people out there like me that keep track of users through templates! I thought I was the only one. love yours, thanks for sharing!
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