Author: John

Style Drift in Hedge Funds

When it comes to style drift in hedge funds, there is a lot of confusion as to what the term actually means. Investors and traders need to understand how this can affect their investments. In order to help you better protect yourself, we will be providing some useful information on …

Econometrics vs Mathematical Economics

Economics is a field of study that relates to analyzing various factors that affect a country’s economy. These factors include production, distribution, and consumption of goods and services, collectively termed as value. However, the field of economics usually involves theoretical analysis. When it comes to quantifying these theories, there are …

Holding-based Style Analysis

Holding-based style analysis is a type of investment strategy that can help you make better decisions about stocks. It takes into account the holding period and market capitalization to analyze a stock’s risk, return, and volatility. The idea is to see if a particular company has an edge over its …

Econometrics and Data Science

Data science and machine learning have allowed analysts to process data at more efficient rates. Due to the abundance of tools at disposal currently, the process has become much straightforward. Data science has contributed to many other fields, including economics. More particularly, it has enhanced how analysts use econometrics to …

Return-based Style Analysis

Return-based style analysis is a statistical technique that helps investors understand the risk and return characteristics of their portfolios. It does this by looking at how often different stocks in your portfolio go up or down, irrespective of what other stocks are doing. The idea behind return-based style analysis is …

Equal-Weighted Commodity Index

This is not to be confused with the equal-weighted ETF which has created a lot of buzz in recent months. Equal-weighting commodities can be risky because you are investing in assets that may have been undervalued or overvalued for extended periods of time, but this method does have its benefits …

Market Capitalization Weighted Index

A market capitalization-weighted index is an equity index that measures the performance of a selection of stocks from a particular region or market. The cap-weighted indexes are some of the most commonly used indices because they measure the relative size (or weight) of each company in the portfolio, and can …

Price-Weighted Stock Index

The price-weighted stock index is a measure of the performance of the stocks that trade on major markets. The math of a simple price-weighted index is straightforward. In order to calculate the value, you need to sum up the share prices for each company in your portfolio and divide that …

How to Hedge Inflation?

For many of us, inflation has been a constant worry in recent years. One way to protect ourselves from the effects of inflation is by hedging our investments. So let’s take a look at how can we hedge against inflation. What is Inflation? Inflation is a type of rising in …

What is a Covered Bond?

Covered bonds are a type of debt instrument that is issued by a bank. These types of securities have two main features, which are: the issuer has pledged its assets to back up payments on the bond, and investors can buy these bonds at lower yields than other comparable instruments …