How two stocks fully correlated over short timescales
How two stocks fully correlated over short timescales?
Expert
Two stocks may be completely correlated over short timescales until now diverge in the long run, with one growing and another decaying. On the other hand, two stocks may follow each other, never being additional than an exact distance apart, but along with any correlation, negative, positive or varying. When we are delta hedging then maybe the short timescale correlation issues but not, if we are holding stocks for a long time in unchanged portfolio. To notice whether two stocks stay close together we require a definition of stationarity.
Illustrates an example of distribution of maxima and minima in Extreme Value Theory?
Suppose current settlement price on a CME DM futures contract is $0.6080/DM. You contain a long position in futures contract. Presently your margin account contain a balance of $1,700. The next three days' settlement prices are $0.6066, $0.6073, & $0.598
List the arguments (variables) of which a FX call or put alternative model price is a function. How does the call & put premium change w.r.t. alteration in the arguments?Both call & put options are functions of just six variables: S
Describe how the special drawing rights (SDR) are constructed. Also, discuss the situation under which the SDR was build.SDR was created by the IMF in the year of 1970 as a new reserve asset, partially to alleviate the pressure on the U.S. dolla
Explain the reasons why is quantitative finance in a mess?
Describe balance of payments identity and explain its implication under the fixed & flexible exchange rate regimes.The balance of payments identity holds that the combined balance on the current & capital accounts have to be equivalent i
what are the factors responsible for the recent surge in international portfolio investment
Explain all the model and experiments of Robert Merton.
Give an example of restrictive covenants that could be given in a bond’s indenture?
Explain Modern Portfolio.
18,76,764
1939965 Asked
3,689
Active Tutors
1457406
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!