Among
sector pair trades, an investor should prefer being «long» banks versus food and beverage, it stated.
Not exact matches
One of the best ways for investors to mitigate risk in a particular
sector is to use
pair trades; a new commentary from Stifel suggests Intel Corporation (NASDAQ: INTC) and Advanced Micro...
The common element is that any long position taken in a specific equity is offset by a short position in either a merger partner (risk arbitrage), an «overvalued» member of the same
sector (long / short
paired trading), a convertible bond (convertible arbitrage), a futures contract (index arbitrage) or an option contract (volatility arbitrage).
Our favorite strateges will be shorting or defensive Market Neutral Hedging: Buying a strong stock while shorting an appropriate index (SPX or Nasdaq), or
Pairs Trading - buying a strong company and selling a weak one in the same
sector usually makes money whether the market moves up, down or sideways.
This includes utilizing a combination of globally diversified ETFs; active long - only managers focusing on delivering alpha; risk - managed and alternative
sectors including those who utilize
pair trades, arbitrage, option overlays; and finally direct investment, private equity and venture capital.
The common element is that any long position taken in a specific equity is offset by a short position in either a merger partner (risk arbitrage), an «overvalued» member of the same
sector (long / short
paired trading), a convertible bond (convertible arbitrage), a futures contract (index arbitrage) or an option contract (volatility arbitrage).