Sentences with phrase «arbitraging away»

@Dale: «Arbitraging away» refers to market participants piling onto a market beating strategy that makes the strategy itself ineffective.

The first is that risk can not be arbitraged away, and the research offers many simple and intuitive risk - based explanations for the persistence of the value premium.

Every opportunity will eventually be arbitraged away.

If it were true, there would be no bargains in the stock market since any price anomolies would be arbitraged away.

In a period such as the late 1940s, the barriers to having a broad section of the population try to arbitrage away that differential may have been large enough to keep the differential in place.

We have yet to find out why these large premiums are not routinely arbitraged away.

All of the above phenomena are well known by fixed income managers (and have been the fodder of active fixed income strategies for decades) but have not been arbitraged away precisely because of the barriers presented by these behavioral or structural market forces.

Can we explain what factors are inhibiting arbitrageurs from jumping in with capital to arbitrage away the opportunity?

If value investing worked in all periods and with all investments, it would get arbitraged away.

So I think even if the ESG factors we use were arbitraged away, the Parnassus Funds would still have an edge.

Economic theory suggests that the outperformance of these two types of stocks should either never happen, or should be arbitraged away immediately upon identification.

This reasoning challenges the prediction that the free lunch from value investing might already have been arbitraged away by the significant allocation to value funds.

If one existed, its effect would be rapidly arbitraged away.

Just to play the devil's advocate, Bogle, Malkiel and Sharp appear to say that non-market cap weights in an index represent an attempt to tilt toward value and small cap stocks, and that proponents incorrectly assume the historical premiums on these sub-sectors will persist into the future (investors tend to arbitrage away excess profits once detected).

These are all dismissed summarily with platitudinous bromides such as the evidence is «data snooping», or their «good results will get arbitraged away,» without any serious thought or analysis, other than «Bogle is our God, and therefore we must ignore all that he didn't recommend (or sell)».

Here, the forward price represents the expected future value of the underlying discounted at the risk free rate — as any deviation from the theoretical price will afford investors a riskless profit opportunity and should be arbitraged away.

I've heard claims that any price difference could be arbitraged away, but I fail to see how that is possible since CFDs can only be closed at the prices the provider is quoting.

This can make them more attractive, though often you will find that the market has arbitraged away the difference, and that corporate (that is, taxable) bonds carry a higher gross yield — and the same net yield after taxes.

If it worked all the time, it would have been arbitraged away long ago by people programming computers to invest large amounts of money based on its principles.

And it is extremely difficult or impossible to execute them in the real world, where there are management fees, transaction costs, taxes and highly competitive money managers ready to arbitrage away market inefficiencies.

Not exact matches

For an example, this has happened in risk arbitrage, where investors are short an option for the acquirer to walk away.

The regulatory arbitrage goes away.

Why hasn't the smart money arbitraged the effect away?

Merger Funds: More Tame Than Reputation Some investors have been turning to a mutual - fund niche that may offer an attractive way to diversify away from the risks of stocks or bonds: funds that engage in merger arbitrage.