Questions tagged [investing]
The investing tag has no usage guidance.
45
questions
38
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6
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What type of investor is willing to be short gamma?
As far as I understand, most investors are willing to buy options (puts and calls) in order to limit their exposure to the market in case it moves against them. This is due to the fact that they are ...
- 483
16
votes
3
answers
4k
views
What are some quantitative approaches to value investment?
As a developer and statistician, I consider value investing to be a statistically sound investment strategy. I've read a few books on the area but I am still not clear on valuation measures. So I ...
- 961
8
votes
2
answers
5k
views
Data exported from Capital IQ, FactSet, Bloomberg, Compustat
I'm looking for reliable data on US equity fundamentals, but not sure which vendor provides these features:
Unlimited data export
Coverage of disbanded entities (bankruptcies, M&A)
Financial ...
- 723
7
votes
1
answer
661
views
S&P 500 list of stocks since 1960
I am looking for the S&P 500 index list of stocks for each day since January 1, 1960. Does anyone know where I can find these lists?
- 171
4
votes
2
answers
1k
views
Criteria to assess the possibility of corporate bankruptcies in U.S. equity exchange markets [closed]
Which criteria do you suggest to measure the susceptibility of bankruptcies (e.g., Chapter 11, 7) for a company in a U.S. equity exchange market (e.g., NYSE, ...
- 329
4
votes
2
answers
5k
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Differences between editions of Security Analysis by Graham and Dodd?
Where can I find a comparison of the contents, a list of everything that changed or the differences among the different editions of the book Security Analysis by ...
- 181
4
votes
1
answer
775
views
Long-term vs short-term strategies \ investing
Suppose most investors have very short investing horizons and use appropriate (for them) strategies, but investor X has a very long horizon. He would like to trade some advantages (early withdrawal ...
- 131
4
votes
1
answer
254
views
Should factor signals decay?
If the factors have information content, I expected factor portfolios constructed using recent financial statements should outperform portfolios using stale data.
To test this, I used the Professor ...
- 509
3
votes
3
answers
538
views
What is the case for active management?
A recent personal finance question asks when to hire an investment professional? Given that many of us here are on the professional manager side of the business, how would you make the case? What ...
- 13.5k
3
votes
0
answers
171
views
In investing, the crowd is wrong much more often than right
I am reading Ken Fisher's Beat the Crowd, and the second sentence in the book is this:
In investing, the crowd is wrong much more often than right.
I was wondering if there is a way to define the ...
- 131
2
votes
1
answer
207
views
IPO Valuation: Share Pricing and Number of Shares
Does the number of shares matter for a company to go public?
Suppose a company ABC went public and the initial valuation of the company shares to be sold stands at \$5000. Now, it can sell 1000 ...
- 45
2
votes
2
answers
80
views
Why aren't ETNs always listed with an inverse ETN?
Exchange Traded Notes (ETNs) are often issued to give buyers exposure to an index that cannot be easily constructed from liquid securities. (If an index can be constructed from liquid securities it ...
- 233
2
votes
1
answer
99
views
How to calculate performance of a private equity investment?
Say an investment fund puts \$1 million into private equity investment in 3 installments (\$500k, \$250k, \$250k).
You're given a data table which shows the date, contributions (\$500k, \$250k, \$...
- 21
2
votes
1
answer
669
views
Why use leverage when it does not improve the risk/reward ratio? [closed]
Leverage will increase gains when things go right but will also increase losses when things go wrong. Mathematically speaking, it does not change the risk/reward ratio (or does it?). Since investing/...
- 1,037
2
votes
2
answers
793
views
What is the difference between volatility and dispersion in finance?
I am confuse whether the volatility and dispersion is same or not because are use
to measure the risk associated with asset. Even if they are different than what is the relationship between, if exist.
- 21
2
votes
1
answer
200
views
Hidden/Dark Pool Hedge Funds
Is there a noun for investment funds which do not disclose the assets they are investing in to their customers?
Some exchanges are called "Dark Pools" where the orderbook is hidden to traders, so I ...
- 5,795
2
votes
2
answers
387
views
Security Market Line & Required Rate of Return for Projects
A standard definition of the Security Market Line is as follows:
The security market line ("SML" or "characteristic line") graphs the
systematic (or market) risk versus the return of the whole ...
- 121
2
votes
1
answer
761
views
Penny jumping in the direction of the price
Reading through examples of legal front running, I'm struggling to understand how "penny jumping" (http://www.wikinvest.com/wiki/Front-running) can be profitable.
Suppose stock ABC is trading at a ...
- 23
2
votes
0
answers
46
views
Extract Qualitative information from annual report commentary and disclosure
Can anyone give idea on the value of latent information in annual report commentary and disclosure. It would be interesting to hear from analyst on how much time they spend reading through annual ...
- 23
2
votes
0
answers
87
views
What type of fund is this?
Is there a name for a fund or investment where many people all split the cost of the investment. For example with peer to peer lending many investors can loan 50 dollars or more to a 40,000 dollar ...
- 21
2
votes
0
answers
74
views
Looking for: List of 30 top-performing value investors in the US (AUM 100USD mn+; 10 years)
we are currently looking to build another database sourced by crawling the SEC (freely available at SimFin).
Our goal is to build a monthly updating database showing the holdings of the top value-...
- 375
2
votes
2
answers
419
views
Which proxies to user for investor sentiment and industry performance, and where to find the data?
I came up with the idea of dealing with investor's sentiment effect in stock market in my thesis.
I would like to know which proxies you would suggest to use as sentiment index and from which source ...
- 53
1
vote
1
answer
5k
views
What is Advent Software's Geneva?
I've heard from Renaissance Technologies Corp. that there exists a software for investors which is called Advent Software's Geneva. Could anyone be able to explain to me what is this software exactly?
1
vote
1
answer
182
views
How to calculate the net return of each "partner" at different times?
Let's suppose I am starting to manage some money. The money is invested in ETFs, particular de VOO.
Let's suppose I have partner one with 1,000 USD, and with this, I can buy 10 shares of VOO at 100 ...
- 121
1
vote
3
answers
102
views
How are bets and high-risk investments conceptually different, and how does this apply to binary options?
They look pretty similar to the layman's eyes: You have to pay something, and then a non-deterministic (or non-fully-known) event occurs. Such event has a (perhaps unknown) probability of occurring ...
- 111
1
vote
1
answer
262
views
Compound interest calculator solving for time with deposits [closed]
I am attempting to solve a compound interest calculation for time given
Principal = 100
Time(years) = t
Rate(per year) = 8%
Deposit(per month) = 5
Total = 300
I ...
- 113
1
vote
1
answer
2k
views
Differences between Snowball, KIKO and TRF derivatives?
Can you explain what are some similarities and differences between snowball, KIKO (knock in knock out) and TRF (target redemption forward) derivatives?
Carl Im
1
vote
0
answers
170
views
Question regarding loan tape data when thinking about providing credit facility to bank
I have few questions regarding loan tape data such as this one: Data
Say that I as a fund want to provide a credit facility to this bank and am given this loan tape data.
(1) What observations / ...
- 11
1
vote
0
answers
56
views
estimate cost of equity (Re) / required rate of return using DCF [closed]
I'd like to estimate Amazon's after-tax cost of equity (Re) using both the DCF and CAPM approaches. Tons of info and resources on how to estimate Re using CAPM, but DCF, I see no relevant resources. ...
- 31
1
vote
0
answers
39
views
Which stock price to take for historical ratios in stock screener (EPS etc.)?
We are currently testing a stock screener that we built and want to implement historical ratios in there too - this is working already for all ratios that don't require stock prices (so all ...
- 81
1
vote
1
answer
451
views
What does NPV ASSENTED after stock name mean?
For a project, I have to quantitatively implement a strategy for value investing in EURO STOXX 50. I pulled the data from Datastream. When I was checking some data plots for dividend yields and total ...
- 241
0
votes
2
answers
158
views
Are Accounts Receivable and Accounts Payable already included in revenue?
I've been following this Udemy course on finance and valuation basics (Link). I am particularly confused when it comes to the cash flow statement part, specifically on how to get Operating Cash Flow (...
- 1
0
votes
1
answer
184
views
how to quantify non-fundamental risk if variance is 100% discounted?
If there's better vocabulary, forgive me.
If you were required to ignore variance as risk, how would you quantify non-fundamental risk?
Many thanks in advance!
user3232
0
votes
1
answer
9k
views
What does "Inst. Own" mean on Google Finance, and how can AOL be 103% "Inst. Own"'d?
https://www.google.com/finance?q=NYSE%3AAOL&ei=yZCpUODEMsKqqgHPzQE
Previously, I assumed "Inst. Owned" meant the percentage of the company's stock that was owned by the company (viz. not floated),...
- 205
0
votes
1
answer
53
views
Open Interest on Stocks
According to the first bullet point in this explanation, "In the stock market, open interest is the number of buy orders submitted before the market opens. When the open interest is high, people ...
0
votes
0
answers
32
views
Accuracy/Quality of financial data: revised financials or historical financials?
I am currently working on calculating financial metrics, particularly Free Cash Flow to Equity (FCFE) etc., for investment analysis.
In the context of financial analysis, I'm wondering which set of ...
- 1
0
votes
0
answers
92
views
How do i use this formula to find the YTM of a step up bond?
I'm trying to find the YTM for a step up bond that trades at par value, how do I use this formula? Since the par value and sale price is the same, and coupon payment is different each payment.
0
votes
0
answers
131
views
How to create Rolling Sortino Ratio?
There are two methods.
Only the numerator the average realized return will be rolling (10 years) while the downside deviation is calculated from full time period.
Both numerator and denominator are ...
- 91
0
votes
0
answers
107
views
Momentum Indicators/Oscellators for Trading
The concept of momentum in trading is a bit weird to me.
It seems to me to be measuring a first derivative or first difference of price, or something in that ballpark depending on the exact formulae ...
0
votes
0
answers
59
views
Finding stock pairs whose spread is used for a risk neutral long-term investment
I am currently working on researching about ways to improve returns in pairs trading. I had previously posted a reference request here, where I had described a toy pair that seemed to be co-integrated....
0
votes
1
answer
421
views
Include Dollar Cost Averaging Strategy in BT python
I am using bt backtesting to test between an initial lump sum into 'ETH-USD' and a dollar cost average approach. I will then look into a different mix of equally weighted crypto.
What I like about bt ...
-1
votes
2
answers
130
views
How to test a strategy with a small capital? [closed]
I have developed an algorithm / model that predicts the next day direction of CBOT wheat futures. It performs sufficiently well in backtesting that I'm interested to see how it would perform with real ...
- 109
-1
votes
1
answer
41
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What is wrong in my investment calculation [closed]
I am thinking to start investing monthly and i am trying to calculate my investment using excel with a compound interest of 5% monthly plus addition of certain amount.
First month investment is 10000 ...
- 647
-2
votes
2
answers
179
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What is the most amount of money the consumer would be willing to pay to play take this gamble?
Suppose a consumer has log-utility over wealth, defined by $u(W) = \ln(W)$.
Suppose this consumer has $100$, and is considering taking a gamble in which
the consumer flips a coin, and gets $20$ she ...
- 97
-3
votes
1
answer
170
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How can foreign investment have a negative figure?
Just looking at
http://www.tradingeconomics.com/japan/foreign-bond-investment
Wondering how can foreign bond investment be negative? You can have 0 investment, you can have positive investment, but ...
- 131