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In the economic and financial field, backtesting seeks to estimate the performance of a strategy or model if it had been employed during a past period. This requires simulating past conditions with sufficient detail, making one limitation of backtesting the need for detailed historical data. A second limitation is the inability to model ...
As a trading strategy, statistical arbitrage is a heavily quantitative and computational approach to securities trading. It involves data mining and statistical methods, as well as the use of automated trading systems. Historically, StatArb evolved out of the simpler pairs trade [3] strategy, in which stocks are put into pairs by fundamental or ...
The bottom line is though most investment strategies should be designed around reducing risk, Warren Buffett’s warning that “diversification is protection against ignorance” serves as both a ...
Technical analysis. In finance, technical analysis is an analysis methodology for analysing and forecasting the direction of prices through the study of past market data, primarily price and volume. [ 1 ] As a type of active management, it stands in contradiction to much of modern portfolio theory.
Strategy. Porter's generic strategies describe how a company pursues competitive advantage across its chosen market scope. There are three/four generic strategies, either lower cost, differentiated, or focus. A company chooses to pursue one of two types of competitive advantage, either via lower costs than its competition or by differentiating ...
Strategy index is an index that tracks the performance of an algorithmic trading strategy. It is a way to measure the performance of a particular strategy over time. [ 1 ] Like an index that tracks a particular stock market, a strategy index does the same for a trading algorithm. The trading strategy may as simple as a market sector defined by ...
Complete price discrimination is most profitable, and requires the seller to have the most information about buyers. Next most profitable and in information requirement is direct segmentation, followed by indirect segmentation. Finally, uniform pricing is the least profitable and requires the seller to have the least information about buyers is.
t. e. The Profit Impact of Market Strategy[1] (PIMS) program is a project that uses empirical data to try to determine which business strategies make the difference between success and failure. It is used to develop strategies for resource allocation and marketing. Some of the most important strategic metrics are market share, product quality ...