Practical analysis for investment professionals


Low Yields, the Same Risks, and Rising Leverage

As interest rates keep falling and leverage starts rising, risks remain the same.

How Effective Is the Low-Volatility Anomaly in Trading? (Podcast)

The low-volatility stock anomaly earned its name from its apparent contradiction of the capital asset pricing model (CAPM). In most markets, portfolios of low-volatility stocks actually produce higher risk-adjusted returns than portfolios of high-volatility stocks.

The Market Needs to Rise Again before It Peaks

History suggests that those who use a crystal ball to predict the future are often forced to eat crushed glass. It is useful is to cogitate about what can happen in the future aside from a mere extrapolation of a current trend.

Behavioral Portfolio Management: Emotions and Volatility Are Key to Successful Implementation

Despite numerous studies attempting to link volatility to changing fundamentals, research shows that investor emotions are the root cause of the vast majority of these price changes, according to C. Thomas Howard.

Behavioral Portfolio Management: An Alternative to Modern Portfolio Theory

As modern portfolio theory fades in reputation from intense pressure from behavioral finance, many researchers are seeking to fill the void with behavioral finance applications. Behavioral portfolio management is one such model.

Investing and Withdrawal Strategies During Retirement: The “Retire Well” Bucket Approach

Today retirees face five perils: inflation, investment, longevity, withdrawal, and healthcare risk. Providend CEO Christopher Tan says retirees need a plan not only to cope with these risks but also to provide reliable income.

Rescaled Range Analysis: Analyzing the VIX

Recent posts on rescaled range analysis inspired new research into the VIX.

Asset Allocation and Portfolio Management: Is the Industry Shifting to a New Paradigm?

In an era of low investment returns, the traditional approach to asset allocation and portfolio management is giving way to a new model that holds the promise of working better during periods of instability and crisis.

Derivatives Roundup: Volatility Trading – Is it the Holy Grail?

Could it be that the Holy Grail has been spotted at the recent Chicago Board Options Exchange (CBOE) Risk Management Conference? Well not quite, but there was much… READ MORE ›

Avinash Persaud: Investors Should Brace for a Return of Currency Volatility

The chairman of Intelligence Capital laid out "seven rules of foreign exchange" that can help market practitioners manage their exchange rate exposures and clarify the future direction of currency markets.

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.