It depends on my degree of confidence in those figures, the chance of them continuing in the future, the expected distribution of returns, my risk...
Note that the answer would not be zero if we're allowed to rebalance, cost free, between the two assets every year.
So there is no information whatseover that would enable me to calculate an expected return for this fund? (track record, historical asset class...
Quite apart from any other information, you haven't told us the expected (average) return of the second fund. Your post implies it's zero. Which...
Oh, my mistake. I though the point of the thread was to take the piss out of these so called 'traders' on youtube... so the more of a joker they...
(Yes - I know it's a parody)
I used to live in Dubai. Curious how the sponsorship/ visa works for a non local self employed trader.
This discussion seems a little futile to me. If you are that latency sensitive, you shouldn't be trading through IB.
I think this is the key point. It's almost impossible to work out with DO precisely why any single instrument has a particular position, or not....
I shrink the correlation matrix for DO (discussed elsewhere), but there are other places where I use it and I'd be worried about the ramifications...
On the face of it this sort of pure arbitrage should be impossible, but it might make sense if for example you can do a trade that others can't...
They are both actually special cases of the more general case.
If the lines overlap, then b=1
If a ratio line reverts, then b=ratio
I don't recognise eithier of those definitions. The first isn't bad, but the second is completely wrong.
Correlation is a measure of...
When you've read those, read Ernie Chan's books.
Do a scatter plot over a longer time period (the website seems to be using like 30 observations, which is ridiculously tiny.
This is quite a...
No, lower p-value is better. Also VIXY/SPY is a poor choice of pairing, since their relationship is likely to be non linear.
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