Stocks To Keep A Close Eye On
- Thread starter SavantGarde
- Start date
- Tags afl amibroker
- Status
Hi Rahul,
HOLD For Now...Let Me Know By Mid Week Of December....If Everything Is Fine...Then Let Me Know When SENSEX & NIFTY Have Crossed Their Respective Historical Highs Which Shouldn't Take Very Long After December....
SASKEN....I Will Check & Let You Know.
Happy & Safer Investing
SavantGarde
HOLD For Now...Let Me Know By Mid Week Of December....If Everything Is Fine...Then Let Me Know When SENSEX & NIFTY Have Crossed Their Respective Historical Highs Which Shouldn't Take Very Long After December....
SASKEN....I Will Check & Let You Know.
Happy & Safer Investing
SavantGarde
Rahul's portfolio , which is good ,contains 4 scrips which need
some careful looking.
1.NAGFERT
2.NEYVALI
3.RNRL
4.TV-18
Re: Stock FUTURES To Keep A Close Eye On
And just to add to that, pair trades are also utilized in less volatile mkts as well in some situations. An example is the following:
- Say, you are bullish on Bharti Airtel because despite yesterday's fall, you feel it is the leader in telecom space. However, you want to hedge your bet in case it takes a further dip.
- Looking at the price movements yesterday, you saw that the major telecom stocks have a positive correlation. (i.e. Bharti, RCOM, Idea move up & down in tandem)
- Further, you feel, Bharti Airtel will outperform RCOM
- Now, you can think about putting in place a pair trade. You'll go long on Bharti Airtel & short on RCOM. Your assumption here is that when RCOM moves up, Bharti Airtel will move up even more. If both move down, what you are hoping for is, Bharti will move down less than RCOM. In this second case, if despite your bullishness on Bharti, supposing you were wrong, you would have ended up losing money on it. Now, you'll make money despite it having moved down only because RCOM moved down more.
- Professionals keep track of the historical difference in performance between pair stocks such as Bharti/RCOM. When they see that that the disparity is exceeding the historical average, they put a pair trade in place with the assumption of reverting to mean.
- Typically, pair trades shd mostly be left in the hands of professional traders.
Hope this further clarifies the concept of pair trading.
And just to add to that, pair trades are also utilized in less volatile mkts as well in some situations. An example is the following:
- Say, you are bullish on Bharti Airtel because despite yesterday's fall, you feel it is the leader in telecom space. However, you want to hedge your bet in case it takes a further dip.
- Looking at the price movements yesterday, you saw that the major telecom stocks have a positive correlation. (i.e. Bharti, RCOM, Idea move up & down in tandem)
- Further, you feel, Bharti Airtel will outperform RCOM
- Now, you can think about putting in place a pair trade. You'll go long on Bharti Airtel & short on RCOM. Your assumption here is that when RCOM moves up, Bharti Airtel will move up even more. If both move down, what you are hoping for is, Bharti will move down less than RCOM. In this second case, if despite your bullishness on Bharti, supposing you were wrong, you would have ended up losing money on it. Now, you'll make money despite it having moved down only because RCOM moved down more.
- Professionals keep track of the historical difference in performance between pair stocks such as Bharti/RCOM. When they see that that the disparity is exceeding the historical average, they put a pair trade in place with the assumption of reverting to mean.
- Typically, pair trades shd mostly be left in the hands of professional traders.
Hope this further clarifies the concept of pair trading.
Hi Amit,
As Single Entities Both Are Still On B.HOLD List Of Stock Futures
IDBI Had Triggered BUY On 02/09/2009 @ 101.50 & IDFC Had Triggered BUY On 17/08/2009 @ 131.40
Therefore If You Were Following The Trigers, You Would Still Be Long In Either Or Both.
Now Coming To Pair Trade
There Are Various Reasons For Pair Trade
a) If The Market Is Highly Volatile & Choppy
b) If The Sector Has The Tailwind, It Is Much Safer To Short Something In The Sector Which Has Had A Huge Move On A Single Day & Go Long On Something That Has Remained Quiet & Rangebound.
c) Acts As Both Hedge & Nimble Trading Strategy, If We Are Undecided About Market Move The Following Day.
d) Strategy Was Outlined In The Last 30 Minutes...For Position To Be Taken On Thursday, Going Forward One Shouldn't Take Position On Monday.
e) Invariably Both Pairs End Up Giving Profits.
Anyways For This Month Watch For FEDERALBANK....Could Prove Profitable But Can Only Confirm EOD On Monday.
Posts Were Moved By Me Because I Thought We Were Through With The Q&A On The Subject...There Is No Problem Posting Queries In The Futures Thread.[/COLOR]
Happy & Safer Trading
SavantGarde
Savantda
Any confirmation on Federal Bank
regards
Amit
As Single Entities Both Are Still On B.HOLD List Of Stock Futures
IDBI Had Triggered BUY On 02/09/2009 @ 101.50 & IDFC Had Triggered BUY On 17/08/2009 @ 131.40
Therefore If You Were Following The Trigers, You Would Still Be Long In Either Or Both.
Now Coming To Pair Trade
There Are Various Reasons For Pair Trade
a) If The Market Is Highly Volatile & Choppy
b) If The Sector Has The Tailwind, It Is Much Safer To Short Something In The Sector Which Has Had A Huge Move On A Single Day & Go Long On Something That Has Remained Quiet & Rangebound.
c) Acts As Both Hedge & Nimble Trading Strategy, If We Are Undecided About Market Move The Following Day.
d) Strategy Was Outlined In The Last 30 Minutes...For Position To Be Taken On Thursday, Going Forward One Shouldn't Take Position On Monday.
e) Invariably Both Pairs End Up Giving Profits.
Anyways For This Month Watch For FEDERALBANK....Could Prove Profitable But Can Only Confirm EOD On Monday.
Posts Were Moved By Me Because I Thought We Were Through With The Q&A On The Subject...There Is No Problem Posting Queries In The Futures Thread.[/COLOR]
Happy & Safer Trading
SavantGarde
Savantda
Any confirmation on Federal Bank
regards
Amit
- Status
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