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Intersecting Strategies: Carry and Trend Analysis
This chapter explores the relationship between carry measures and risk premiums in investment strategies, emphasizing the predictive power of carry in forecasting returns. It examines the synergy between carry and trend-following strategies, analyzing their performance during various market conditions and historical events. The discussion highlights the importance of diversification in carry strategies and challenges perceptions of their risks, advocating for a nuanced understanding of their dynamics over time.