A rolling stone gathers no moss, but an old risk model does
Investors have been talking about risk ever since the first time one of them got a forecast wrong. Given the impossibility of the investor in question being blamed for this outrageously unpredictable outcome, a third-party had to be named to take the fall and, thus, ‘risk’ was born. Like all negative things in life, we would rather not think about ...
Beware of taking labels at face value
Although many exchange-traded funds (ETFs) have similar names, they are unlikely to deliver similar returns. There were significant differences in the performance of US high-dividend funds in the wake of the country’s presidential election last year. The big drop in the oil price also affected funds with similar names differently.
Are low volatility readings capturing a sense of calm or foreboding?
Last Friday, the Vix – often referred to as the “fear gauge” – declined 6.6% in a single day to close the week at 10.1.
Six Things to Discuss at Your Next Risk Management Cocktail Party
As the Axioma team looked back on 2016, we realized that it truly was a watershed year for markets and managers.