Why do prices move in the same direction but with a lag on correlated instruments? - page 16

 
Dmitry Fedoseev #:
I wonder where doubled time has a price? Where the hell is the price of time anyway?

Meaning a period, something like a middle ground between once and now, not the current moment.

 
Vitaly Muzichenko #:

By the way, as it was suggested earlier to take securities of the same sector and trade them in the opposite direction, this idea was tested - a very risky strategy.

Securities are somehow not very tied to each other, they can go in tandem, and then at one moment in different directions, one of them can either get bad statistics or some scandal in a corporation, sanctions, etc. That is why such bundles have not shown themselves from the best side.

With currencies somehow easier and more reliable, although there are moments there too, but it is extremely rare, from the word "extremely".

It is quite obvious that the original versus synthetic strategy is less risky :)

Trading in pairs is a common notion, and no one trades "outright" if they want to make money, they usually make a hedging portfolio.

Moreover, if one trades on the Stock market, the dividends, if any, are added to the portfolio profit when holding positions.

There are many times more opportunities to make money on the Exchange than on Forex.

Added

In addition, at the Exchange there is a 100% lossless strategy, it's classic arbitrage (futures vs SPOT), even when trading

"outright" interest is higher than on deposits in banks!

 
Vitaly Muzichenko #:

Therefore, you have to pick lots for each pair, it has been written about here more than once, in case you missed it.

If anything, the situation at this point in time. Lots 1 and 0.57

Do you see the cross rising or falling?


There will be no rise or fall. The trend is ending, soon it will be a flat

 
osmo1709 #:

There will be no rise or fall. The trend is ending, soon to be a flat.

Soon it won't be a flat, but a big kaput. And the trend will remain one instrument at a time.

 
There is no need to get bogged down in correlation. That there is correlation in forex is a fact. The fact that two random charts can have a high correlation coefficient between them is also a fact. Correlation does not explain or predict anything. Two functionally dependent instruments from one random number generator will be mutually correlated, but no less random.
 
prostotrader #:

You've read my mining topic, haven't you?

My friend advised me not to change the bitcoins I earned, and I didn't listen to him, and tried to "pay back" the $20,000 I had invested.

I would have more than 2.5 bitcoins, i.e. I lost more than 100000$ which is to be regretted.

Do not waste your time in vain!

I should note that the same effect could be achieved simply by buying $20,000 worth of bitcoins at that time and holding them back until the current moment.

 
Vasiliy Sokolov random number generator....

What?

 
Dmytryi Nazarchuk #:

What?

Don't be stupid. Xi= Ri + e; Yi = (-1)*Ri + e; Cor(X, Y) -> -1.0; Ri = rnd; Those who wish may check and po*** on the resulting graphs. The picture will be beautiful.

 
Vasiliy Sokolov #:

Don't be stupid. Xi= Ri + e; Yi = (-1)*Ri + e; Cor(X, Y) -> -1.0; Ri = rnd; Those who wish can check and po*** on the resulting graphs. The picture will be beautiful.

Thank you, CAP.

Now the BIG question - where are the DETERMINATED rows/instruments here????

 
Vasiliy Sokolov #:

Don't be stupid. Xi= Ri + e; Yi = (-1)*Ri + e; Cor(X, Y) -> -1.0; Ri = rnd; Those who wish can check and po*** on the resulting graphs. The picture will be beautiful.

Is Ri the same random value, or are there two different implementations of a random number generator?

If they are two different implementations of a generator, then the probability that both series will be correlated tends to 0....

Do you even know what a deterministic quantity, a random number generator is?