The Era of Product Chasing - Did I miss the trade? S03:E11
Pirates of Finance
00:00
DVMF
The idea of how many instruments you trade may not be as diversified as people think. Some managers are trading hundreds to 200 markets by creating synthetics. But what really matters here and Adam Butler, who was all wrote a great post about this a while ago is thinking about this in terms of unique bets. Like if I were to look at the covariance matrix of that 50 market portfolio, there might be only 10 truly unique bets in it.
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