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The (Uncertain) Payoff from Alternative Investments: Many a slip between the cup and the lip?

Musings on Markets

That argument has both a statistical basis, with the covariance between the two investments operating as the mechanism for the risk reduction, and an economic basis that the idiosyncratic movements in each investment can offset to create a less risky combination.

Alpha 76
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Beta Explained: What It Is and How to Calculate It

Valutico

In this article, we’ll explore the fundamentals of beta, learn how to calculate it, and discover its significance in shaping your investment strategies. Beta is calculated using historical price data, asset returns, market index returns, covariance, and variance. A beta of 1 means the asset moves in line with the market.

Beta 52
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The Factors that Matter for Growth in Institutional Ownership

Reynolds Holding

The overall impact of corporate aggregate distributions depends on the magnitude of such distributions and their covariation with institutional-level flows. Our article formalizes these insights, showing how fund fees, capital gains returns, dividend and capital gains distributions, and balance sheet effects shape institutional growth.