Comments on: The Equal Short Bull-Bear As The Ultimate Negative Correlator? http://www.wheredoesallmymoneygo.com/the-equal-short-bull-bear-as-the-ultimate-negative-correlator/ A Canadian Personal Finance Blog Tue, 16 Mar 2010 20:18:48 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Jordan http://www.wheredoesallmymoneygo.com/the-equal-short-bull-bear-as-the-ultimate-negative-correlator/comment-page-1/#comment-24167 Jordan Tue, 19 Jan 2010 13:41:19 +0000 http://www.wheredoesallmymoneygo.com/?p=1130#comment-24167 I found an interesting post along the same lines on another blog, they bring up more technical details which I can hardly grasp but some how still find interesting: http://thesnowjob.wordpress.com/2009/01/20/a-risk-free-trade-shorting-leveraged-etfs/ I found an interesting post along the same lines on another blog, they bring up more technical details which I can hardly grasp but some how still find interesting:

http://thesnowjob.wordpress.com/2009/01/20/a-risk-free-trade-shorting-leveraged-etfs/

]]> By: Update On The Experimental Portfolio : WhereDoesAllMyMoneyGo.com http://www.wheredoesallmymoneygo.com/the-equal-short-bull-bear-as-the-ultimate-negative-correlator/comment-page-1/#comment-14475 Update On The Experimental Portfolio : WhereDoesAllMyMoneyGo.com Wed, 24 Jun 2009 01:55:44 +0000 http://www.wheredoesallmymoneygo.com/?p=1130#comment-14475 [...] few weeks ago I had mused that holding a double short pair of leveraged ETFs might be a great negative correlating investment to hold in ta.... The double short pair would be expected to have a positive rate of return if the volatility of the [...] [...] few weeks ago I had mused that holding a double short pair of leveraged ETFs might be a great negative correlating investment to hold in ta…. The double short pair would be expected to have a positive rate of return if the volatility of the [...]

]]> By: Strong Buy I could use some advise please. - Page 2 - StockRants Stock Market Forum http://www.wheredoesallmymoneygo.com/the-equal-short-bull-bear-as-the-ultimate-negative-correlator/comment-page-1/#comment-13947 Strong Buy I could use some advise please. - Page 2 - StockRants Stock Market Forum Sun, 14 Jun 2009 20:24:29 +0000 http://www.wheredoesallmymoneygo.com/?p=1130#comment-13947 [...] daily leverage. You should definitely have a look before you pick one for your long term holds. The Equal Short Bull-Bear As The Ultimate Negative Correlator? : WhereDoesAllMyMoneyGo.com Also, with the list of ETF's you are getting big diversification and many of the picks would have [...] [...] daily leverage. You should definitely have a look before you pick one for your long term holds. The Equal Short Bull-Bear As The Ultimate Negative Correlator? : WhereDoesAllMyMoneyGo.com Also, with the list of ETF’s you are getting big diversification and many of the picks would have [...]

]]> By: Mesothelioma News - Possible Asbestos Exposure at Tennessee VA Hospital http://www.wheredoesallmymoneygo.com/the-equal-short-bull-bear-as-the-ultimate-negative-correlator/comment-page-1/#comment-13712 Mesothelioma News - Possible Asbestos Exposure at Tennessee VA Hospital Mon, 08 Jun 2009 07:05:36 +0000 http://www.wheredoesallmymoneygo.com/?p=1130#comment-13712 [...] The Equal Short Bull-Bear As The Ultimate Negative Correlator ... [...] [...] The Equal Short Bull-Bear As The Ultimate Negative Correlator … [...]

]]> By: Testing Out The Hypothesis on Shorting Paired Leveraged ETFs : WhereDoesAllMyMoneyGo.com http://www.wheredoesallmymoneygo.com/the-equal-short-bull-bear-as-the-ultimate-negative-correlator/comment-page-1/#comment-13614 Testing Out The Hypothesis on Shorting Paired Leveraged ETFs : WhereDoesAllMyMoneyGo.com Thu, 04 Jun 2009 03:27:00 +0000 http://www.wheredoesallmymoneygo.com/?p=1130#comment-13614 [...] a spreadsheet I’ve set up to monitor an investment strategy I mused about in the post “The Equal Short Bull-Bear As The Ultimate Negative Correlator“. I had posited that instead of putting 100% of your money into an index, you would’ve [...] [...] a spreadsheet I’ve set up to monitor an investment strategy I mused about in the post “The Equal Short Bull-Bear As The Ultimate Negative Correlator“. I had posited that instead of putting 100% of your money into an index, you would’ve [...]

]]> By: Jordan http://www.wheredoesallmymoneygo.com/the-equal-short-bull-bear-as-the-ultimate-negative-correlator/comment-page-1/#comment-13553 Jordan Tue, 02 Jun 2009 19:17:13 +0000 http://www.wheredoesallmymoneygo.com/?p=1130#comment-13553 Metastock looks totally awesome, and I bet would be an amazing tool in your hands since you know what you're doing. Part of it allows you create programs that make decisions based on any kind of fundamental analysis / indicator and see how well a strategy will back test for any available time period. It's owned by Reuters and apparently has a bunch of addons so you can download historical stock ticks and even pump in live feeds and unique indicators. I've played with it a bit but it's pretty expensive for a hobbyist who doesn't really know what he's doing to buy. Metastock looks totally awesome, and I bet would be an amazing tool in your hands since you know what you’re doing.

Part of it allows you create programs that make decisions based on any kind of fundamental analysis / indicator and see how well a strategy will back test for any available time period.

It’s owned by Reuters and apparently has a bunch of addons so you can download historical stock ticks and even pump in live feeds and unique indicators.

I’ve played with it a bit but it’s pretty expensive for a hobbyist who doesn’t really know what he’s doing to buy.

]]> By: Preet http://www.wheredoesallmymoneygo.com/the-equal-short-bull-bear-as-the-ultimate-negative-correlator/comment-page-1/#comment-13552 Preet Tue, 02 Jun 2009 19:07:14 +0000 http://www.wheredoesallmymoneygo.com/?p=1130#comment-13552 @Jordan, well there is time decay with options but that's a bit different. Perhaps anything with constant leverage would be subject to decay, but I'm not sure on that. I used Excel, never heard of metastock will check it out! Thanks! @Jordan, well there is time decay with options but that’s a bit different. Perhaps anything with constant leverage would be subject to decay, but I’m not sure on that.

I used Excel, never heard of metastock will check it out! Thanks!

]]> By: Jordan http://www.wheredoesallmymoneygo.com/the-equal-short-bull-bear-as-the-ultimate-negative-correlator/comment-page-1/#comment-13549 Jordan Tue, 02 Jun 2009 18:46:31 +0000 http://www.wheredoesallmymoneygo.com/?p=1130#comment-13549 Ahhhh I think I finally get it now. Are there any other type of investments that decay in a similar way to these leveraged ETFs? Also what software do you use to back test the results, have you tried metastock? Ahhhh I think I finally get it now. Are there any other type of investments that decay in a similar way to these leveraged ETFs?

Also what software do you use to back test the results, have you tried metastock?

]]> By: Preet http://www.wheredoesallmymoneygo.com/the-equal-short-bull-bear-as-the-ultimate-negative-correlator/comment-page-1/#comment-13548 Preet Tue, 02 Jun 2009 18:42:11 +0000 http://www.wheredoesallmymoneygo.com/?p=1130#comment-13548 @ Jordan - will do, but to satisfy your curiosity in the meantime: decay refers to how the NAV deteriorates in a sideways market because of the constant leverage. So index up 10%, then down 10% means a net -1% return, but the bull (or bear) would be down 4%. Wash, rinse and repeat and the NAV decays. @ Jordan – will do, but to satisfy your curiosity in the meantime: decay refers to how the NAV deteriorates in a sideways market because of the constant leverage. So index up 10%, then down 10% means a net -1% return, but the bull (or bear) would be down 4%. Wash, rinse and repeat and the NAV decays.

]]> By: Jordan http://www.wheredoesallmymoneygo.com/the-equal-short-bull-bear-as-the-ultimate-negative-correlator/comment-page-1/#comment-13525 Jordan Tue, 02 Jun 2009 05:38:01 +0000 http://www.wheredoesallmymoneygo.com/?p=1130#comment-13525 Could you explain what the term "decay" means when you say "capture some of the decay in these leveraged ETFs"? Maybe it would be a quick topic for another post Could you explain what the term “decay” means when you say “capture some of the decay in these leveraged ETFs”?

Maybe it would be a quick topic for another post

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