Diversification, Un-correlation and arbitrage

Daniel Weston

Aimed Capital

Diversification, Un-correlation and arbitrage I have a process where we aim to to build a portfolio which holds as many un-correlated assets as possible which we also have strong conviction to be invested in. This is how I believe the best risk adjusted profits can be made irrespective of positive and negative economic cycles and we can smooth out the volatility of our investors wealth with this method of diversification plus work to avoid or capitalise on market crashes moving forward. Currently the correlation of all of the assets in our portfolio combined is -0.08 (where -1 is perfectly negative and +1 is perfectly positive). We aim to have the correlation of our portfolio composition as close to 0 as possible and we aren't far off. I want to highlight one of these un-correlated trades we are holding in our portfolio currently, that being long stocks in Japan and short stocks in Canada. The reason for the trade is based on our growth models which calculate growth forecasts to find strength and weakness. Read more... (VIEW LINK)


Daniel Weston
Daniel Weston
Chief Investment Officer
Aimed Capital

Running the Aimed Global Alpha - Macro Hedge Fund. Aussie. Trader. Investor. Coder. Cricketer. Skier. Surfer. Flyer. www.aimedcapital.com

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