A strategy that is utilized if the investor is not aware of the direction of the stock price, i.e., whether the stock price will rise or fall. It is performed by the trader engaging in long trade for certain investment that are allegedly under-priced and going short in other investment that is considered over-priced. This protects the investment from the systemic risk involved with stock market. Note that the appropriate neutral strategy to utilize is dependent on the volatility of the underlying price of the stock.
Related information about neutral strategy:
- Market neutral - Wikipedia, the free encyclopedia
Equity-market-neutral strategy occupies a distinct place in the hedge fund landscape by exhibiting one of the lowest correlations with other alternative strategies.
- Market Neutral Definition | Investopedia
... may also use other tools such as merger arbitrage, shorting sectors, and so on. There is no single accepted method of employing a market-neutral strategy.
- What is market neutral strategy? definition and meaning
Definition of market neutral strategy: Securities investing strategy in which a portfolio of equity and fixed income instruments is assembled (typically by taking ...
- Trade This Market-Neutral Strategy In December - Seeking Alpha
3 days ago ... A pair trade is a market-neutral strategy in which an investor seeks to earn a return through the simultaneous purchase of one security and the ...
- Market Neutral Trading Strategy (Relative Value Strategies ...
It can achieve the same thing by investing in a US equity index fund and hiring a hedge fund to implement a self-financing market neutral strategy in US equities.
- Neutral Trading Strategies | The Options & Futures Guide
... stock price will go upwards or downwards. Rather, the correct neutral strategy to employ depends on the expected volatility of the underlying stock price.
- AllianceBernstein Market Neutral Strategy - Global (AANNX) | US ...
See AllianceBernstein Market Neutral Strategy - Global (AANNX) mutual fund ratings from all the top fund analysts in one place. See AllianceBernstein Market ...
- New ETF Uses Market Neutral Strategy | ETF Trends
Oct 22, 2012 ... Exchange traded funds that replicate hedge fund strategies are catching investors attention as a new market-neutral tool launched earlier this ...