Could someone please kindly help me in regards to a question on the Carry Trade.

What is the most widely used equation for the carry trade including the funding and investment currency and what equation is appropriate to state when analysing Granger Causality between daily carry trade returns and daily stock market returns including lags? Any help would be much appreciated. Thanks.


closed as unclear what you're asking by Attack68, skoestlmeier, LocalVolatility, Helin, Lliane Mar 6 at 8:55

Please clarify your specific problem or add additional details to highlight exactly what you need. As it's currently written, it’s hard to tell exactly what you're asking. See the How to Ask page for help clarifying this question. If this question can be reworded to fit the rules in the help center, please edit the question.

  • 1
    $\begingroup$ what is "the Carry Trade". $\endgroup$ – Attack68 Feb 28 at 6:29
  • $\begingroup$ @Attack68, it typically involves selling a low yielding currency and buying a higher yielding asset netting the difference in yield. $\endgroup$ – Chris Feb 28 at 21:34

Browse other questions tagged or ask your own question.