An investment strategy which utilizes the tendency of stocks to move together in order to minimize risk exposure. Combining stocks with low correlation reduces the riskiness of a portfolio as their returns are countercyclical to each other thus, a rise in one stock can mean a fall in the other.
Related information about correlation trading:
- Correlation trading - Wikipedia, the free encyclopedia
In finance, correlation trading is a strategy in which the investor gets exposure to the average correlation of an index. The key to correlation trading is ...
- Credit correlation trading - Mark S. Seasholes
Aug 20, 2003 ... Credit Correlation Trading – The Next Wave ... This report provides a user guide to correlation trading and covers topics including the following: ...
- First - Best Thread: Correlation Trading - Basic Ideas and Strategies
Hi Everyone....An ambitious title indeed ! I want to consolidate as much information as possible on the subject within this thread....the works !
- Correlation Trading | Wall Street Oasis
Feb 18, 2012 ... Read forum discussions about Correlation Trading on Wall Street Oasis, the largest finance industry social network and web community.
- Correlation Trading | Skills | LinkedIn
In finance, correlation trading is a strategy in which the investor gets ... The key to correlation trading is understanding the principle of diversification -- that, given ...
- Correlation Trading and Why It Works So Well - TL - 8166
As humans we do not come equipped with the ability to deal with the variety and often times confusing aspects of randomness. We are taught ...
- Intraday correlation trading - Institut Louis Bachelier
Intraday correlation. ➢Derivative trading books. ▫ Huge portfolios. ▫ Daily asset re- allocation. ▫ Sensitivity to. • Models. • Hedging frequency. • Realized covariance ...
- Basel changes could "kill off correlation trading” - Risk.net
Jun 24, 2009 ... Proposed changes to the Basel II Accord's trading book regime, due in early July, will make correlation trading uneconomical unless a ...