Academic literature on the topic 'Market neutral strategy'

This chapter discusses three directional hedge fund strategies: long/short equity, short only, and equity market neutral. These strategies rely on different types of positions that are enumerated and explained using trade examples. A key feature of funds implementing directional strategies is the market exposure best described by gross exposure and beta-adjusted net exposure. In long/short equity funds, money managers often use yield enhancement strategies based on option overlays. A review of different management styles explicates the heterogeneity of hedge funds and liquid alternatives that

Relative value strategies, also called arbitrage strategies, are trading strategies that exploit mispricing in the financial markets among the same or related assets. Relative value trading is a popular investment strategy among many hedge fund managers who try to achieve high returns while minimizing risk. To capitalize on the mispricing of assets, investment managers take long positions in the undervalued assets and short positions in the overvalued assets with the expectation that prices will revert to their fundamental values. When using relative value strategies, managers construct market

This chapter explores the legal construction of culture and cultural difference in criminal litigation. Drawing on empirical material and reported judgments from English courts, the chapter documents the content of appeals to culture and identifies the pitfalls of their exploitation in criminal litigation. Cultural difference is not a neutral marker to separate social groups in the courtroom. Rather it is often deployed to explain behaviour in relation to specific groups, and is loaded with prejudices and stereotypical representations of racialized minorities. As a legal strategy in criminal l

AbstractThe Dutch Republic underwent a process of state formation, accelerated economic growth and military reforms during the Eighty Years War. In particular between 1585 and 1621, Dutch merchant-entrepreneurs built up a burgeoning arms industry and sector of arms exports. These exports required a system of passports, still an under-researched theme in current literature, organized by the States-General and admiralties in order to support exports to neutral and allied states, but to forestall these did not fall into enemy hands. In particular, the system of passports shows how merchants, acting as intermediaries between allies and the States-General and the admiralties, could meet the volatile demand of war materials. As a result, the supply side of the export market was oligopolistic, but the composition of the group of oligopolists varied depending on the region and the prevailing market conditions in question. From this study it can be concluded that the system of export control had only a limited effectiveness regarding the creative arms exports to Spanish Habsburg destinations, due to divergent central and local interests. However, the major part of the Dutch arms exports flowed to allies such as France, Venice, Sweden and the German protestant states. Dutch merchants provided them with batches of strategic materials and total package-deals of armaments for entire army and navy units. From 1621, the States-General supported these transactions by supplying war materials from the state arsenals fostering timely and largescale deliveries, meeting volatile demand conditions.

The key objective of this chapter is to describe and evaluate the main sources of competitive advantages and market strategies of Polish International New Ventures (INVs). Previous research showed that in the case of firms from the developed countries, the consistent implementation of competitive strategy was the decisive factor of success. It appears that the best competitive strategy for the Polish INVs is strong differentiation, because either it was related to higher evaluation of success or it has been at least “neutral” in the sense that it has never been related to lower (or worst) evaluation of success. Similarly, the second best strategy is strong price leadership (in this case the positive relationships with companies' success are weaker). The results of presented research brought an interesting observation of rather weak interdependence between the strategy type and the economic results of the Polish INVs. This conclusion may be explained by some macroeconomic factors, e.g. low labor costs, favorable exchange rate of Polish currency, etc., which heavily contributed to the success of Polish INVs and overweighed the shortcomings of strategy formulation.

The article deals with the problem of analysis of banking activity and modern methods of investment development of the bank based on pairs trading models. The essence of the pair trading method as one of the most popular and qualitative methods of investment paper quality analysis is disclosed. The basis of the pairing trading method is defined as the beta-neutral portfolio strategy, which consists of creating a portfolio with a beta coefficient equal to zero, and the main advantage of which is the complete independence of the final paper yield from the market yield, it is only dependent on the future ratio of the value of one security to another. For the successful introduction of this method in banking activity, a clear algorithm for the construction of a paired trading model based on economic-mathematical methods and models is proposed. The proposed algorithm contains three stages in which the following steps are to be taken: analysis and selection of securities; development of a pairing trading model; development and regulation of the selected strategy. The implementation of the proposed algorithm begins with the selection of statistical data on the prices of securities, provides for the verification of data on stationarity, as well as the identification of a system for combining series, and the analysis of coefficients of the matching between prices of securities. As a result of the steps taken, pairs of securities are selected that are more closely related and a full economic analysis of the pairs is made, and the parameters of co-integration equations to pairs of paper are selected, evaluated and analyzed then the errors of the co-integration model are checked for stationary. In the work models of pairs trading are constructed for the realization of an aggressive strategy of trade spreads. In order to build an effective strategy for pairing trading, data on prices of securities, which are the most attractive to Ukrainian banks, namely, US Treasury bonds, have been examined. The hypothesis being tested in the paper is that it is necessary to identify a pair of securities with a sufficiently strong dependency where one should have a rapid growth or decline relative to the other, after which the sale of the revalued security and the purchase of the undervalued security is mandatory. The study found that for each pair of Treasury bonds, the ratio was satisfactory. This indicates that the resultant securities pairs are suitable as an investment that, with a well-designed strategy, will allow the bank to obtain optimum returns. The final step of the algorithm is the analysis of the results obtained, which includes a comprehensive analysis of the conducted research and effective decision-making. The application of the proposed algorithm will allow banks to make informed decisions on the choice and regulation of the strategy in exchange market changes in order to obtain a low level of risk and a high level of profit.

Achieving widespread access by all European citizens to new services and advanced applications of the information society is one of the crucial goals of the European Union’s (EU) strategic framework for the future. Towards realizing this primary target, multiple access platforms are expected to become available, using different access methods for delivery of services (and of related digital content) to a wide variety of end-user terminals, thus creating an “always-on” and properly “converged” technological and business environment, all able to support and to promote innovation and growth (Commission of the European Communities, 2005). The result will be a “complementarity” of services and markets in an increasingly sophisticated way. Economic and technology choices imply certain networks for certain service options. As these networks become more powerful, the temptation is to adapt certain characteristics of the network technology to make it suitable for modern services. The challenge is to build “bridges” or “links” between the different convergent technologies without undermining the business models on which they are built. In such a context, converging technology means that innovative systems and services are under development with inputs, contributions, and traditions from multiple industries, including telecommunications, broadcasting, Internet service provision, computer and software industries, and media and publishing industries, where the significance of standardization and interoperability can be fundamental. In any case, digital technology can offer the potential for realizing the future electronic information highways or integrated broadband communications. However, for the multiplatform environment to proliferate in liberalized markets and for the platforms themselves to complement each other, the related prerequisites and the governing regulatory environment must favor technologically neutral conditions for competition, without giving preference to one platform over others (Chochliouros & Spiliopoulou, 2005a). Among the latest European priorities for further development of the information society sector as described above were several efforts for extending the role of digital television based on a multiplatform approach (European Commission, 2002a). If widely implemented, digital (interactive) television may complement existing PC- and Internet-based access, thus offering a potential alternative for market evolution (Chochliouros, Spiliopoulou, Chochliouros, & Kaloxylos, 2006). In particular, following current market trends, digital television and third generation (3G) mobile systems driven by commonly adopted standards can open up significant possibilities for a variety of platform access to services, offering great features of substitution and complementarity. The same option holds for the supporting networks as well (European Commission, 2003a). Within the above fast developing and fully evolutionary context, the thematic objective of digital video broadcasting (DVB) applications (including both the underlying network infrastructures and corresponding services offered) can influence a great variety of areas (http://www.dvb.org). In particular, DVB stands as a suite of internationally accepted open standards, mainly related to digital television- and data-oriented applications. These standards (in most cases already tested and adopted in the global marketplace) are maintained by the so-called DVB Project, an industry-driven consortium with more than 300 distinct members, and they are officially published by a joint technical committee (JTC) of the European Telecommunications Standards Institute (ETSI), the European Committee for Electrotechnical Standardization (CENELEC), and the European Broadcasting Union (EBU). The existing DVB standards cover all aspects of digital television, that is, from transmission through interfacing, conditional access, and interactivity for digital video, audio, and data. In particular, DVB not only includes the transmission and distribution of television program material in digital format over various media, but also a choice of associated features (considered for exploiting capabilities of all underlying technologies). However, market benefits can be best achieved if a “harmonized” approach, based on a longterm perspective, is adopted since the beginning of all corresponding efforts, intending to facilitate a progressive development towards new (and more advanced) services in a smooth and compatible manner (Oxera, 2003). An essential precondition for this progress is the adoption, in the market sector, of common standards which, while providing necessary clarity for both producers and consumers in the short term for early introduction of digital television facilities, also supply the potential for subsequent smooth upgrading to new and higher grades of service. Thus, in the framework of competitive and liberalized environments DVB can support major efforts for the penetration (and the effective adoption) of enhanced multimedia-based services (Fenger & Elwood-Smith, 2000) independently of the type and/or format of the content offered while simultaneously promoting broadband opportunities. Furthermore, being fully conformant to the requirements imposed by convergence’s aspect, DVB can advance optimized solutions for different technical communications platforms. The European market has been widely developed in the area of (interactive) digital television (Chochliouros et al., 2006; European Commission, 2003b) and the EU is now leading further deployment through DVB procedures. The focus provided by a common set of technical standards and specifications has given a market advantage and spurred the appearance of innovation perspectives. Baseband: 1) In radio communications systems, the range of frequencies, starting at 0 Hz (DC) and extending up to an upper frequency as required to carry information in electronic form, such as a bitstream, before it is modulated onto a carrier in transmission or after it is demodulated from a carrier in reception. 2) In cable communications, such as those of a local area network (LAN), a method whereby signals are transmitted without prior frequency conversion.

One of the major Strategic Innovation Theme and corresponding Research Priority for the next years is Circular Economy and Resource Efficiency, according to Euratex. Recently, the European Commission launched the new "Industrial Strategy for a globally competitive, green and digital Europe", that will help deliver on three key priorities: maintaining European industry's global competitiveness and a level playing field, at home and globally, making Europe climate-neutral by 2050 and shaping Europe's digital future. In this context, innovation and market potential of the European textile and clo

The success of grid scale energy storage hinges on our ability to solve real problems economically. By mapping energy storage physics to application economics, this paper offers a technology neutral look at how energy storage can solve real problems. A value analytics methodology was developed that combines the physics of energy storage, application power commands, and market-specific economic constructs. This approach evaluates and optimizes the value of energy storage for specific projects by providing insight into the tradeoffs between the lifecycle costs and revenues. These analytics calcu