Category Archives: Performance Cyclicality

The perfect hedge

By Mukul PAL | Published: 7 March, 2010

Inefficiency in prices is when it diverts far from notional, theoretical value. While efficiency is when markets finds it value. Performance cycles is about illustrating how markets move from efficiency to inefficiency. The more visible performance cycles get, the more challenged the idea will be. How can you show the market movement from efficiency to [...]

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The Hedge Opportunity

By Mukul PAL | Published: 28 November, 2009

Performance cycles indicate that Hedging could be an opportunity and not just an imperfect risk management technique.

The history and the idea
Hedging is one of the first ideas modern finance taught us. Hedging as an exercise was started for a farmer, who wanted to insulate himself from movements in agricultural commodity price. The commodity prices [...]

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The Inefficient Pair

By Mukul PAL | Published: 21 November, 2009

A recurring divergent performance on an equity pair could redefine alpha.

Robert Arnott’s, Research Affiliates LLC, has received a patent for an indexing methodology that selects and weights securities using fundamental measures of company size, such as dividends and sales. Fundamental indexing has gained popularity with $27 billion tracking the indices. This is 3% of the [...]

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