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Beta can be used to indicate the contribution of an individual asset to the market risk of a portfolio when it is added in small quantity. It refers to an asset's non-diversifiable risk, systematic risk, or market risk. Beta is not a measure of idiosyncratic risk. Beta is the hedge ratio of an investment with respect to the stock market.
Smart beta, or factor-based, exchange-traded funds that follow customized indexing methodologies have quickly grown in popularity across a range of investment applications, and no two factor-based ...
Asset managers including BlackRock, Legg Mason, Henderson Rowe, Invesco and WisdomTree all operate smart beta funds. To identify which type of smart beta provides the best fit, qualified institutional investors need to understand the expected return and risk for each of their active, passive, and smart beta allocations.
Investors who are interested in diversifying their investment portfolio should delve into the world of factor-based investment strategies and related ETFs. On the recent webcast, Smart Beta ...
Alternative beta is the concept of managing volatile "alternative investments", often through the use of hedge funds. Alternative beta is often also referred to as "alternative risk premia". Alternative beta is often also referred to as "alternative risk premia".
The pairs trade helps to hedge sector- and market-risk. For example, if the whole market crashes, and the two stocks plummet along with it, the trade should result in a gain on the short position and a negating loss on the long position, leaving the profit close to zero in spite of the large move.
False signs may emerge because of various components, including timing slacks, inconsistencies in information sources, smoothing strategies or even the calculation by which the pointer is determined. Technical analysis tries to capture market psychology and sentiment by analyzing price trends and chart patterns for possible trading opportunities.
In investing, downside beta is the beta that measures a stock's association with the overall stock market only on days when the market’s return is negative. Downside beta was first proposed by Roy 1952 [ 1 ] and then popularized in an investment book by Markowitz (1959) .