Sentences with phrase «idiosyncratic risks»

Crypto rich kids made their fortune on the rapid growth of cryptocurrency markets — which are problematic due to their idiosyncratic risks.

You shouldn't in individual stocks, sector funds or country funds because they contain idiosyncratic risks that can be easily diversified away and thus are what economists called uncompensated risks.

Additionally, as recent headlines illustrate, one can not ignore idiosyncratic risks in the different countries (for example the passing of the Thai King, or the impact of Samsung's woes on the South Korean market).

Many investors believed they had an adequately diversified portfolio, containing a number of independent sector positions and a portfolio of idiosyncratic risks.

For a good company, idiosyncratic risks can also turn into idiosyncratic rewards in the future, which nobody talks about.

Additionally, as recent headlines illustrate, one can not ignore idiosyncratic risks in the different countries (for example the passing of the Thai King, or the impact of Samsung's woes on the South Korean market).

Bottom line: There's no free lunch on Wall Street and just about every asset class carries its own form of idiosyncratic risk.

«This is the one that has a little bit of idiosyncratic risk going on.»

This is a reward for taking the idiosyncratic risk.

The other risk that needs to be considered is idiosyncratic risk.

Idiosyncratic risk can not be planned for or modelled, but it can quickly wipe out a portfolio.

Finally, the idiosyncratic risk of a dividend portfolio is a substantial risk that is easily mitigated through proper diversification.

BlackRock writes that the iShares MSCI World Small Cap UCITS ETF (WSML) is a way for investors to express a nuanced view within their equity allocation, allowing them to take a building block approach to broad exposure but with a lower level of idiosyncratic risk than single stock investments.

Synonyms for diversifiable risk are idiosyncratic risk, unsystematic risk, and security - specific risk.

Their investment portfolios are also somewhat more volatile, exposing them to slightly more idiosyncratic risk.»

This analysis reveals that the integrating strategy's idiosyncratic risk (4.81 %) is more than 2.5 times that of the mixing strategy (1.91 %).

The role of ETF positions is generally to access idiosyncratic risk / return exposures and maintain a higher resilience to diverse market conditions.

If I can spread around the idiosyncratic risk of vacancies, major repairs, mold problems, hurricanes, earthquakes, lawsuits, etc. over a larger number of properties and over a wider geographic area, I'm all for it!

Second, the authors decompose the strategies» active risk into factor risk and idiosyncratic risk.

The idiosyncratic risk here is huge because the portfolios are so small.

And indeed research shows that idiosyncratic risk captures the value premium and that the value premium is compensation for exposure to time varying risk.

The purpose of this paper, a joint work with Vasiliki Athanasakou, is to examine whether a value premium exists over our sample period, whether systematic risk is driving the value premium, whether idiosyncratic risk does a better job than systematic risk in explaining the value premium, and more importantly whether earnings quality contributes to a risk, mispricing or both explanations for the value premium.

As such, deteriorating earnings quality as a source of idiosyncratic risk could drive the value premium.

This is because factor based investing exposes you to additional idiosyncratic risk.

This is what academics refer as idiosyncratic risk (that is, risk unique to one company).

Despite this, no paper has investigated the sources of the idiosyncratic risk as they relate to the value premium.

While the capital asset pricing model (CAPM) does have it flaws the general idea behind it is solid: an investor should not be compensated for idiosyncratic risk because you can eliminate it using diversification.

Optimal is 80/20, but I take more idiosyncratic risk, and 70/30 just feels better to me.

When you are invested in more than one cryptocurrency asset, the idiosyncratic risk in your portfolio decreases.

Not exact matches

Kostin said that these correlations are «mean - reverting» and are likely to fall given the idiosyncratic impact of policy risks, adding that equities within the consumer discretionary and health care sectors offer the best stock - picking opportunities.

In their May 2006 paper entitled «The Relation between Time - Series and Cross-Sectional Effects of Idiosyncratic Variance on Stock Returns in G7 Countries», Hui Guo and Robert Savickas investigate why the realized idiosyncratic volatility (beta) of individual stocks correlates negatively with future returns — why there is a penalty instead of a reward for this aIdiosyncratic Variance on Stock Returns in G7 Countries», Hui Guo and Robert Savickas investigate why the realized idiosyncratic volatility (beta) of individual stocks correlates negatively with future returns — why there is a penalty instead of a reward for this aidiosyncratic volatility (beta) of individual stocks correlates negatively with future returns — why there is a penalty instead of a reward for this apparent risk.

In particular, the organization raised concerns about leveraged trading of cryptocurrencies, though it acknowledged that the low correlation between cryptocurrencies and other assets «suggests that the risk of spillovers from idiosyncratic price moves in crypto assets to the wider market may be limited at this point.»

We economists and credit risk modellers speak euphemistically of idiosyncratic shocks, but this is what we mean.

It risks a late detour into magic realism and comes out the other end as an even stronger and more idiosyncratic piece of work — and, thanks to Mortensen's presence, a possible international breakthrough for a filmmaker whose cult could stand to grow a little going forward.

Perhaps not surprisingly, the history of Hollywood production mirrors the history of venture capital in the United States, as each new film presents an idiosyncratic set of risk factors, and each new production or distribution technology distorts return forecasts for a new generation of film speculators.

Idiosyncratic Crash Risk; Equity Incentives; Executive Compensation; Implied Volatility Smirk; Risk - Taking Incentives; Transparency

Nonetheless, the methodology has certain practical disadvantages: It results in high - turnover portfolios with greater active risk (much of which is idiosyncratic) and higher trading costs.

But the concentrated portfolio built in accordance with the integrating methodology appears to carry a greater proportion of idiosyncratic active risk, casting doubt on the consistency of its future performance.

We care that we've chosen a portfolio of investments whose risk drivers provide idiosyncratic and diversifying exposures to other investing strategies, and we care that our downside is attended to strategically, not just tactically (we do our best to manage maximum drawdown).

She defines idiosyncratic volatility as the standard deviation of daily residuals from monthly regressions of returns (in excess of the risk - free rate) for each stock versus Fama - French model factors.

«In the past, you would have had to use a 75 basis points to 1 per cent active fund and exposed yourself to idiosyncratic stock picking risk,» Cantrell says.

That's the premise of Flair: gorgeous, wonderfully idiosyncratic art, confident about its own importance in an era of platitudes, self - serving power, and divisive fear - mongering; art full of risk and driving ideas in this exceedingly difficult time, art chock - full of flair.

If we surreptitiously adopt idiosyncratic solutions to them, we risk undermining the rule of law itself.

Finance experts assume that there are two types of risk in a given market: the systemic risk and the idiosyncratic (individual) risk.

As far as the conclusions and recommendations from child custody evaluations, they just make up whatever they want based on their own personal beliefs and inherent personal biases, they then apply some psychological constructs in entirely haphazard and idiosyncratic ways to justify whatever biased and idiosyncratic conclusion was reached, and they usually take a middle - of - the road risk - management response of recommending the status quo with the addition of «reunification therapy» and an admonishment to both parents that the degree of parental conflict is harming the child and that the parents need to co-parent better.

ST is compatible with the models frequently used in sex offender intervention and the inclusion of a ST based formulation within a group setting allows for a more comprehensive and idiosyncratic understanding of risk, facilitating greater opportunity for psychological change and reduction of risk of re-offending.