Publications by R on OSM
Back to diversification
In our last post, we took a detour into the wilds of correlation and returned with the following takeaways: Adding assets that are not perfectly positively correlated to an existing portfolio tends to lower overall risk in many cases. The decline in risk depends a lot on how correlated the stocks are in the existing portfolio as well as how the ...
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Back to diversification
In our last post, we took a detour into the wilds of correlation and returned with the following takeaways: Adding assets that are not perfectly positively correlated to an existing portfolio tends to lower overall risk in many cases. The decline in risk depends a lot on how correlated the stocks are in the existing portfolio as well as how the ...
6036 sym R (5013 sym/1 pcs) 4 img
My strategy beats yours!
Don’t hold your breath. We’re taking a break from our deep dive into diversification. We know how you couldn’t wait for the next installment. But we thought we should revisit our previous post on investing strategies to mix things up a bit. Recall we investigated whether employing a 200-day moving average tactical allocation would improve o...
7938 sym R (10055 sym/1 pcs) 10 img 5 tbl
My strategy beats yours!
Don’t hold your breath. We’re taking a break from our deep dive into diversification. We know how you couldn’t wait for the next installment. But we thought we should revisit our previous post on investing strategies to mix things up a bit. Recall we investigated whether employing a 200-day moving average tactical allocation would improve o...
7938 sym R (10055 sym/1 pcs) 10 img 5 tbl
A weighty matter
When we were testing random correlations and weighthings in our last post on diversification, we discovered that randomizing correlations often increased portfolio risk. Then, when we randomized stock weightings on top of our random correlations, we began to see more cases in which one would have better off not being diversified. In other words, ...
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A weighty matter
When we were testing random correlations and weighthings in our last post on diversification, we discovered that randomizing correlations often increased portfolio risk. Then, when we randomized stock weightings on top of our random correlations, we began to see more cases in which one would have better off not being diversified. In other words, ...
5931 sym R (5676 sym/1 pcs) 6 img
Tens and twos
Only three months ago, market pundits were getting lathered up about the potential for an inverted yield curve. We discussed that in our post Fed up. But a lot has changed since then. One oft-used measure of the yield curve, the time spread (10-year Treasury yields less 3-month yields), has inverted (gone negative). The NY Fed’s yield curve mo...
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Tens and twos
Only three months ago, market pundits were getting lathered up about the potential for an inverted yield curve. We discussed that in our post Fed up. But a lot has changed since then. One oft-used measure of the yield curve, the time spread (10-year Treasury yields less 3-month yields), has inverted (gone negative). The NY Fed’s yield curve mo...
6650 sym R (6656 sym/1 pcs) 8 img
Who’s covered
One of the simplest options strategies is known as the covered call. For this strategy, an investor who already owns a stock elects to sell (or write) an option contract to surrender that stock at a specified price (known as the strike) at some point in the future (also known as expiration). The sale of the contract generates income for the inves...
7312 sym R (4007 sym/1 pcs) 8 img 1 tbl
Who’s covered
One of the simplest options strategies is known as the covered call. For this strategy, an investor who already owns a stock elects to sell (or write) an option contract to surrender that stock at a specified price (known as the strike) at some point in the future (also known as expiration). The sale of the contract generates income for the inves...
7312 sym R (4007 sym/1 pcs) 8 img 1 tbl