Ace 10y Ktb Etf Beneish M Score
| 365780 Etf | 94,035 290.00 0.31% |
ACE |
365780.KO fundamentals not found at this time
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Pair Trading with ACE 10Y
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if ACE 10Y position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ACE 10Y will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to ACE 10Y could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ACE 10Y when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back ACE 10Y - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling ACE 10Y KTB to buy it.
The correlation of ACE 10Y is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as ACE 10Y moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ACE 10Y KTB moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for ACE 10Y can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.