Sector Rotation Strategies

Sector Rotation Strategies

In the world of investing, sectors represent different segments of the economy. Examples are technology, healthcare, financials, or consumer goods. As the business cycle progresses, different sectors tend to outperform or underperform based on various macroeconomic factors. Sector rotation is a strategy that seeks to capitalize on these cyclical patterns by identifying sectors that are … Read more

Mean Reversion and Statistical Arbitrage

Mean Reversion

Mean reversion strategies and statistical arbitrage are popular among quantitative traders. These approaches exploit the tendency of financial instruments to revert to their historical means or long-term averages after periods of significant deviation. In this post, we’ll dive deep into the theory behind mean reversion, identify potential pairs for statistical arbitrage, and walk you through … Read more

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