And perhaps most dangerous of all, factor investing presents the risk of data mining. Only factors that show good backtest results are shown. This bias is known asselection bias. A factor’s historical record being randomly good/accurate can lead to wrong decision making. Conclusion We discussed...
Passive ETF investing is a popular strategy among investors who prefer a long-term, buy-and-hold approach to investing their money. On the other hand, active ETF investing, which involves fund managers actively trading securities within an ETF to outperform an index, is an alternate route that ...
The IRD is acarry trade, a trading strategy that involves borrowing at a low interest rate and investing the proceeds in anassetthat provides a higher rate of return. Carry trades borrow in a low-interest rate currency environment, and convert the borrowed amount into another currency with a ...
If IRP were to hold, it would mean – 1.2380 / 1.2500 should be equal to 1.03 / 1.04, which turns out to be approximately 0.99 in both cases, which confirms the validity of the Interest Rate Parity. Example #3 Taking a step further, let us assume person A is investing USD 1,000 ...
Put-call parity refers to an investing theorem in option pricing to identify a fair price for a put option or a call option. According to this theorem, there is a relationship between the prices of a call and a put, which ensures that no arbitrage opportunity exists. If put-call parity ...
Interest rate parity is an economic theory stating that the difference in exchange rates in two countries will be proportionally...
This is the reason why logic parity RAM is also sometimes known as “fake parity RAM.” Modern computers do not support parity error detection anymore owing to the risk of data loss and corruption. Advertisements Related Terms RAM Disk Parity Check Parity Error Data Storage Data Corruption...
You really risk what we risked in 1970, ’71 when William McChesney Martin pivoted into a year and a half long recession, and then inflation, which had been 6 and came down to 2 or 1.5 then went to 12. So my fear is that, actually, this is the worst of both worlds. You’re h...
What is the Bear Call Spread Strategy and How to Apply It? How to Trade a Long Call Options The Basics of Put Call Parity: Everything You Need To Know About Ezekiel Chew Ezekiel Chew the founder and head of training at Asia Forex Mentor isn’t your typical forex trainer. He is a rec...
Burnout is on the rise, and investing in solutions to help address this problem will remain a crucial issue for many organizations. In addition to expanding on successful established policies and trying new approaches, companies can track symptoms and establish new norms to improve the everyday ...