Uncorrelated profits as stocks sell off We focus on producing uncorrelated returns for our investors, meaning as low a relationship in our portfolio to the...
Uncorrelated profits as stocks sell off We focus on producing uncorrelated returns for our investors, meaning as low a relationship in our portfolio to the household name stock and bond markets. Today I want to focus on the largest (short Euro) and third largest (long UK 10yr Bond) positions in our Aimed Global Alpha portfolio and how holding these positions are working profitably for us in the face of the current stock market sell off. Correlations to stocks (1 is perfect correlation) Euro is 0.055 UK 10yr Government Bonds is -0.307 So, these two in itself are largely uncorrelated, but when we are long one and short the other, it takes the low correlation to your headline grabbing Ma and Pa stock market to another level. Providing our portfolio with a hedge, protection and generally a place to hide for our capital while the rest of the world focuses on what is happening to stocks. (VIEW LINK)
Running the Aimed Global Alpha - Macro Hedge Fund. Aussie. Trader. Investor. Coder. Cricketer. Skier. Surfer. Flyer. www.aimedcapital.com
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