is rooted in mathematics to deliver alpha independent of traditional risk factors.
Avellaneda & Lee (2010) use Principal Component Analysis or sector ETFs in their statistical arbitrage
This is where predictive modeling can help lower the risk of statistical arbitrage
. While individuals certainly have better knowledge of their own behavior, they are not likely to have firmly quantified the healthcare implications of those factors.
and Japan), and Goldman Sachs, in roles that comprised technology management, derivatives risk management, statistical arbitrage
, futures trading, program trading, and wholesale execution services.
The algorithm is designed to allow traders to execute any North American pair combination, supporting all major pair trade types such as risk arbitrage, statistical arbitrage
, switch trades and cross-border trades.
Celent's Jaswal notes that TSE's Arrowhead trading platform has already led to an increase in the local adoption of high-frequency trading strategies and he expects more high-frequency and statistical arbitrage
trading between alternative venues in the Japanese equities markets.
Kevin Dean, chief marketing officer at Interxion, said many banks' statistical arbitrage
desks and high-frequency traders are currently locating their trading platforms in Stockholm as demand for co-location and proximity hosting services increases.
trading - This involves the selection of correlated instruments or baskets and identification of price discrepancies between them.