Is Gold a Safe Haven? It Depends on the Country

24.March 2023

If you’re a regular reader of our blogs (and we hope you are!), you would not miss that we like to touch macro-economic subjects. One of that never-fading topics is the role of gold as a crisis hedge. The probably most known commodity is a popular choice for a portion of the total portfolio, from small investors to central banks, for various reasons (be it diversification or hedging). So let’s not further delay it, and today we ask: Is gold really a safe haven?

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An Investor’s Guide to Cryptocurrencies

17.February 2023

Cryptocurrencies are an asset class that isn’t easy to ignore in the modern world. In February 2023, the crypto market capitalization was at around $1.1 trillion, which is roughly half of the value of all U.S. notes and coins in circulation. With their properties quite different from other investment options, it might prove useful to an investor to understand and navigate this market well.  The authors Campbell R. Harvey, Tarek Abou Zeid, Teun Draaisma, Martin Luk, Henry Neville, Andre Rzym, and Otto Van Hemert in their paper An Investor’s Guide to Crypto (July, 2022), offer an overview surely interesting for anyone willing to enter this market.

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An Analysis of Rebalancing Performance Dispersion

1.February 2023

The theme of rebalancing in longer-term investing is neglected but important as it influences the overall portfolio’s performance and risk. Unfortunately, many investors are inconsistent in choosing dates for their rebalances of portfolios, resulting in hardly predictable results (whether positively or negatively affecting it), and not contributing to handling risk management properly. The following article presents our analysis of the impact of rebalancing on portfolio returns. It also serves as an introduction to the methodology for an upcoming Quantpedia Pro report that our users would be able to use to quickly assess the impact of the rebalancing period on any selected combination of trading strategies, custom equity curves, and ETFs.

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Defining Market Cycles Out of Sample

6.January 2023

We have already published a few articles about how the different market cycles affect the performance of your portfolio and performance of market factors. So far, these states of the market were identified in-sample, with the benefit of hindsight. The full methodology of how we defined bull/ bear market, low/ high inflation, and rising/ falling interest rates is described in this article.

Today, we are going to define the same market states out-of-sample. We will describe our methodology and the thinking behind it all in this article. Both in sample and out of sample market cycle analysis may be useful for making investment decisions. It’s crucial to understand the differences and how to use this kind of analysis to your benefit.

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Quantum Computing as the Means to Algorithmic Trading

9.December 2022

The topic of quantum computing has been gaining popularity recently, and both the scientific community and investors seem to have high hopes for its future. It seems that this brand-new technology could revolutionize various aspects of computing as we currently know them. Great contributions could be made in the fields of medicine and healthcare, security, and computability [1], as well as in the field of finances, which interests us here at Quantpedia the most. Quantum computers are especially great in optimization tasks, so optimizing a portfolio could be one of the key contributions in our interest. [2] In this article, we would like to introduce the concept of quantum computers, their current state, their potential use in finance, and more.

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How to Replicate Any Portfolio

2.November 2022

Would you like to see the performance of your portfolio 100 years back in history? Do you want to analyze the risk of your strategy under 100 years of real historical scenarios? All of these, and much more, will be soon (in a few days) available for Quantpedia Pro subscribers. How? We will explain today how we can model a 100-year history of your portfolio.

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