Category: TRADING

How Volatility and Commodity ETFs Impact the Markets

Exchange Traded Funds (ETFs) have undeniably transformed the financial industry, providing investors with unprecedented ease of access to diverse portfolios. However, their impact on the market isn’t uniformly positive. The surge in ETF popularity has raised concerns about potential distortions and increased market fragility. Critics argue that the sheer size …

Incorporating Volume into Volatility Forecasting

Volatility forecasting plays an important role in finance. Its importance lies in the fact that it enables us to effectively price options and plan trading and hedging activities. By providing insights into future market volatility, this forecasting becomes an essential tool for investors, enabling them to make informed decisions that …

Price Dynamics of Different Stock Sectors

The U.S. market is a vast and intricate financial landscape that can be dissected into several sectors, each representing a specific segment of the economy. These sectors are typically classified based on the type of goods or services they produce. Common sectors include Information Technology, Health Care, Financials, Consumer Discretionary, …

The Impact of Passive ETF Ownership on the Market

Passive investing, particularly through Exchange-Traded Funds (ETFs), has transformed the world of finance. With ETFs, investors can gain exposure to various asset classes, including stocks, bonds, commodities, and more, while maintaining a passive and diversified approach to their portfolios. Unlike actively managed funds, which aim to outperform the market, passive …

Do Covered Calls Deliver Superior Returns?

The covered call strategy is a popular and conservative options trading approach. It involves an investor holding a long position in an underlying asset, typically a stock, and then selling call options on that asset. These call options provide the buyer with the right to purchase the underlying asset at …

What Influences Stock-Bond Correlation?

The correlation between stocks and bonds plays a crucial role in portfolio allocation and diversification strategies. This correlation measures the degree to which the returns of these two asset classes move in relation to each other. When stocks and bonds exhibit a negative correlation, it implies that they tend to …

Can Big Data and AI Replace Human Fund Managers?

The integration of alternative data in finance has ushered in a transformative era, where traditional financial analysis is augmented by vast and unconventional datasets. These alternative data sources encompass a myriad of information, from satellite imagery tracking global supply chains to sentiment analysis of social media chatter. By leveraging big …