What Are Some Quantitative Investment Strategies?

Quantitative investment strategies, when applied correctly, can make a huge difference to your investment portfolio. While this is true, it is also important to remember that many of the best quantitative strategies are the result of trial and error and that sometimes you need to learn from your mistakes. The great thing about quantitative investment strategies is that they are extremely useful and can help you make better use of your time, money, and efforts. Here are some of the more popular quantitative investment strategies.

The first thing you will need to learn about is how to analyze the stock market. This might sound obvious, but a lot of people do not understand the importance of this. The stock market is very volatile and when you study it properly, you will learn that it moves in patterns, and you will be able to understand exactly when and where certain types of stocks may go.

Another quantitative investment strategy you might want to look at is investing in bonds. These are investments that require a lot of trust and confidence on the part of the investor in order for them to work out. However, because bonds can fluctuate, it is important to know what to look for in order to make sure that you are investing in the right type of bonds.

Finally, there is one type of strategy that you will need to learn about if you are going to succeed in the stock market. When we say the “stock market” it does not mean that you are only investing in stocks; there is a much wider array of investment opportunities available in the financial markets than is common knowledge. So, it is important that you learn about the different types of investments available so that you are making the right decisions.

The main things that you should learn about using quantitative investment strategies are research and analysis. If you are going to invest in real estate, for example, you will have to learn about the price trends. The more research you do, the more successful you will be in your investments. This is true for just about every investment, but it is particularly true when it comes to investing in the stock market, as the nature of this type of investment is highly speculative and requires a lot of information in order to make well-informed decisions.

Of course, if you are interested in learning more about quantitative investment strategies, then it is important that you search around online. and get as much information as you can about the various types of quantitative strategies so that you are able to choose the ones that you think will suit your personal situation the best.

source http://www.quantitativeinvestmentgroup.com/what-are-some-quantitative-investment-strategies/

How To Implement VIX Strategy To Generate Profits

The logic behind our research is actually pretty straightforward when you think about it. It’s a spin on the traditional buy low, sell high strategy and indicates that investors should be buying equities (or, conceivably, other risk assets) when volatility levels are excessively high and sell when volatility is excessively low.

Why? Spikes in the are almost always associated with sharp and severe downturns in the markets. This can best be explained in the paper’s conclusion.

“While momentum is often touted as the ideal anomaly to take advantage of using sectors to express an active bet on continued performance, we find that an approach which waits for momentum to crash with a VIX spike allows for an ideal set-up to buy low and sell high when investor overreactions take place.”

As the VIX rises, stock prices tend to fall and investors, in general, tend to overreact. These types of scenarios create opportunities for smart market watchers to exploit and generate alpha.

The last three major VIX spikes all created buying opportunities that preceded sharp rebounds in equity prices.

The spikes highlighted are the most obvious examples, but you can see a similar relationship between smaller scale VIX spikes and stock prices at many points over the past five years. This was our general thesis. By adding risk to your portfolio when volatility levels were high, investors would essentially be buying stocks “on sale”. Positioning your bets in the right sectors…

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