Absolute courses - page 111
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Let's try to calculate theAUD/CAD rate: 12.8981/13.5755=0.9501
In total we got the priceof 0.9501, on Forex the exchange rate was ~0.9465.
At the end it is clear thatAUD/CADis undervalued on Forex, or rather AUD is undervalued , orCAD is overvalued.
This begs the question: What is the absolute exchange rate, who and how calculates it. If the calculation is correct, why is the pair undervalued in forex and many more leading questions.
Good day, colleagues!
Apparently, the administration of the forum considered my post an advertisement and banned it.
Now my account is unblocked and I can continue the discussion.
absolute rates cannot be counted because there are no absolutes.
Not quite like that.
More like not at all.
It was possible to calculate them.
I didn't make a secret out of the calculation. Here is an article from Habra https://habr.com/ru/post/450368/ with the methodology.
To avoid counting by hand, I've created a website for the project "Absolute Rate" and there these rates are counted and published every day.
Besides, we have a table based on Google.Table. There you can see the charts of absolute exchange rates.
Not quite like that.
More like not at all.
It worked out.
I didn't make a secret out of the calculation. Here is an article from Habra https://habr.com/ru/post/450368/ with the methodology.
To avoid counting by hand, I've created a website for the project "Absolute Rate" and there these rates are counted and published every day.
Besides, we have a table based on Google.Table. There you can see the absolute rate charts.
Thank you! I read the article, then the comments.
How to apply it to extracting money from the market - I haven't figured it out yet, but it's something to think about.
Thank you! Read the article, then the comments.
How to apply it to extracting money from the market - haven't figured it out yet, but it's something to think about.
I myself do not yet understand the usefulness of this technology. I hope this kind of communication helps.
it's a futile exercise
I gave the example of bananas above
it's a futile exercise
I gave the bananas example above.
An absolute rate is calculated as a matrix non-linear transformation from more than eight dozen paired rates. This conversion results in absolute rates for 45 currencies. Hence dividing the absolute rates back to each other results in very similar values to the pair rates. Therefore it is worthwhile to consider the absolute rates as justifying their name.
Originally absolute rates were invented for creation of currency portfolios. I studied the portfolio theory by Markowitz. Everything seems to work out so well for stocks. But they are all calculated for one currency. All instruments in the portfolio are priced in the same currency. Therefore they can be easily compared. But what about currencies? How do I make a portfolio out of currencies? Then they must be brought to the same denominator. Then we will be able to make a portfolio out of them. So I suggested that we could simply perform a mathematical conversion from paired rates to absolute rates and obtain currencies.
And it worked. I think so...
The absolute rate is calculated as a matrix non-linear transformation from more than eight dozen paired rates. This conversion results in absolute rates for 45 currencies. This is why dividing the absolute rates back to each other results in very similar values to the pair rates. Therefore it is worthwhile to consider the absolute rates as justifying their name.
Originally absolute rates were invented for creation of currency portfolios. I studied the portfolio theory by Markowitz. Everything seems to work out so well for stocks. But they are all calculated for one currency. All instruments in the portfolio are priced in the same currency. Therefore they can be easily compared. But what about currencies? How do I make a portfolio out of currencies? Then they must be brought to the same denominator. Then we will be able to make a portfolio out of them. So I suggested that we could simply perform a mathematical conversion from paired rates to absolute rates and obtain currencies.
And it worked. So I think...
it's not a rate, it's something like an index
therate of a currency can only be determined in relation to another currency, don't make it up
it's not an exchange rate, it's something like an index.
Exchangerates can only be defined in relation to another currency, don't be absurd.
Isn't it an exchange rate relative to a group of currencies? EURALL/USDALL = EURUSD.
and the exchange rate in relation to a group of currencies? EURALL/USDALL = EURUSD
good one...
And I actually believed in the existence of an exchange rate in relation to a group of currencies and even started looking.