Browsing: arbitrage

Posts Tagged ‘ arbitrage ’

The Imminent Demise of the LNG/Crude Oil Link

Dec 19th, 2019 | Filed under: Commodities, Hedge Fund Strategies, Investing in Commodities, Newly Added, oil, Commodities: Examples, Energy, The A.I. Industry, Hedge Funds, Commodities

Liquified natural gas has long been sold through long-term contracts that are benchmarked to the price of crude oil. This makes a certain intuitive sense. The two commodities are in many contexts substitutes, so that one would expect a rise in the prices of one to inspire an echoing riseRead More

Cryptocurrency Arbitrage: Two Looks

Sep 27th, 2018 | Filed under: Currencies, Newly Added, The Global Economy & Currencies, Digital currencies, The A.I. Industry, Emerging Alternative Investments, Finance & Economics, Other Topics in A.I.

Do investors arbitrage cryptocurrencies? Two recent studies offer a “yes” answer, though they in certain other respects differ significantly in their conclusions. Specifically, one study shows that in one respect arbitrage has done its duty and effectively eliminated the opportunities for arb profits, enforcing efficiency. In other situations, though, theRead More

Strategy Idea: Short Sell High-DTC Stocks, Go Long Low-DTC Stocks

Mar 6th, 2016 | Filed under: Hedge Fund Strategies, Equity Hedge Funds, Newly Added, Alpha Strategies, The A.I. Industry, Hedge Funds

A recent paper correlating days-to-cover with stock returns finds a DTC premium effect and suggests that hedge funds might want to arbitrage it. This study begins with the crowded trade problem. With so many sophisticated investors in the markets, looking for or at the same arb opportunities, a number ofRead More

Saudi Arabia: Opening to Distressed Debt Arb?

Dec 22nd, 2015 | Filed under: Newly Added, Insolvency, Event-Driven Hedge Funds, Business News, Hedge Funds

A recent article in The National Law Review says that the Kingdom of Saudi Arabia is about to change its restructuring law in a way that will likely make restructurings more common in that influential country. One implication is that the change will provide alpha-seeking opportunities for investors and tradersRead More