Illustrates an example of Co-integration
Illustrates an example of Co-integration?
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Assume you have two stocks S1 and S2 and you get that S1 − 3 S2 is stationary; therefore this combination never strays more far from its mean. When one day it ‘spread’ is mainly large then you would have sound statistical reasons for thinking as spread might shortly decrease, giving you a possible source of statistical arbitrage profit. It can be the basis for pairs trading.
What are those factors that common stockholders would consider while deciding how much cash dividends they want from corporation in which they have invested?
On the contrary to the U.S., Japan has felt continuous current account surpluses. What could be the foremost causes for these surpluses? Is it desirable to have continuous current account surpluses? Japan's continu
Illustrates the way to optimize hedge.
When you add random numbers and get normal, what occurs when you multiply them?
How is estimate of volatility or the implied volatility used?
Illustrates an example of forward equation?
How is arbitrage argument estimated?
Illustrates an example of binomial model as complete market?
How does Jump-Diffusion Model Affect Option Values?
What is the matching principle of working capital financing and also explain the benefits of following this principle.
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