Monthly Archives: March 2008

XTR 100 - the broad Index

XTR 21 is market cap and fundamental weighted index. And to make it more replicable (tradable) we have studied the underlying free float for the market, to introduce the benchmarks FREE FLOAT version. Moreover the current statistics do suggest that XTR 21 could better its performance with a free float review. However, since this will [...]
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XTR - Correlation

In probability theory and statistics, correlation indicates the strength and direction of a linear relationship between two random variables. This statistical parameter can not only help in stock selection but also create structured products based on market neutralizing. Suggesting a hedging strategy, a week before market fell more than 8% was nothing short of timing. [...]
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The Coffee Fractal

The Coffee God has woken up and he has decided to punish coffee lovers. The bean is set to rise for more than a few years to prices which not many of us can relate too. Cycles and Fractals are a part of nature and date back before everything. Fractals of population were discovered 200 [...]
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XTR - Market Neutral

It might look strange, but though the problems are more in America, it’s the Romanian markets that feel the heat. One of the reasons emerging markets like Romania are more volatile is because markets lack the knowledge of risk management. We are ideally speaking still a “LONG ONLY” market. We don’t have mechanisms to short [...]
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Waking up to Gung - Ho -II

This is what we said on 17 JAN 2007 in our WAVES.FOREX report. “Yen is moving sideways for the last 22 years and has touched near 120 levels for more than 10 times in the respective period. This means on average once every 2 years. This is a huge currency inaction compared to dollar. This [...]
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XTR - Stock Picking Using Beta

The Beta coefficient, in terms of finance and investing, is a measure of volatility of a stock or portfolio in relation to the rest of the financial market. An asset with a beta of 0 means that its price is not at all correlated with the market and that the asset is independent. A positive [...]
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XTR - Fund Managers Average

Also called as the “FUND MANAGER’S AVERAGE”, this is one of the most important indicators for measuring participation. As a general rule, investors, institutions and big players feel comfortable investing in a stock or a market when the asset is trading above it’s 200-day MA. When the stock or market falls below the 200-day MA, [...]
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