diff --git a/en/pedia/1/1-day_rsi.md b/en/pedia/1/1-day_rsi.md index 739273f0..d0de0394 100644 --- a/en/pedia/1/1-day_rsi.md +++ b/en/pedia/1/1-day_rsi.md @@ -1,6 +1,6 @@ # 1-Day RSI (Relative Strength Index) -The 1-Day [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) developed by J. Welles Wilder Jr. in 1978, which measures the speed and change of price movements. The RSI oscillates between zero and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). The "1-Day" RSI specifically refers to the calculation of RSI over a one-day period, which provides a short-term view of [market](../m/market.md) [momentum](../m/momentum.md) and potential price reversals. +The 1-Day [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) developed by J. Welles Wilder Jr. in 1978, which measures the speed and change of price movements. The RSI oscillates between zero and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). The "1-Day" RSI specifically refers to the calculation of RSI over a one-day period, which provides a short-term view of [market](../m/market.md) [momentum](../m/momentum.md) and potential price reversals. ## Calculation of 1-Day RSI diff --git a/en/pedia/1/1-hour_chart.md b/en/pedia/1/1-hour_chart.md index d9a22905..d6fec512 100644 --- a/en/pedia/1/1-hour_chart.md +++ b/en/pedia/1/1-hour_chart.md @@ -45,7 +45,7 @@ Moving averages (MA) are commonly applied to 1-hour charts to smooth out price d Various [technical indicators](../t/technical_indicators.md) are used on 1-hour charts to provide additional insights and [trading signals](../t/trading_signals.md). Some popular indicators include: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measures the speed and change of price movements, indicating [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measures the speed and change of price movements, indicating [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: Shows the relationship between two moving averages, assisting in identifying [momentum](../m/momentum.md). - **[Bollinger Bands](../b/bollinger_bands.md)**: Consist of a moving average with upper and lower bands that help identify [volatility](../v/volatility.md) and potential [reversal](../r/reversal.md) points. diff --git a/en/pedia/1/1-minute_chart.md b/en/pedia/1/1-minute_chart.md index 773f6da9..378d8516 100644 --- a/en/pedia/1/1-minute_chart.md +++ b/en/pedia/1/1-minute_chart.md @@ -22,7 +22,7 @@ Moving averages are widely used in 1-minute charts to smooth out [price action]( #### Indicators and Oscillators -Various [technical indicators](../t/technical_indicators.md) and oscillators can be superimposed on 1-minute charts to enhance signal accuracy. Commonly used indicators include the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_bands.md). These indicators help in identifying [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions, convergence and [divergence](../d/divergence.md), and [volatility](../v/volatility.md) bands. +Various [technical indicators](../t/technical_indicators.md) and oscillators can be superimposed on 1-minute charts to enhance signal accuracy. Commonly used indicators include the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_bands.md). These indicators help in identifying [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions, convergence and [divergence](../d/divergence.md), and [volatility](../v/volatility.md) bands. ## Advantages of Using 1-Minute Charts in Algotrading diff --git a/en/pedia/1/1-month_moving_average.md b/en/pedia/1/1-month_moving_average.md index 579cd349..1a63183b 100644 --- a/en/pedia/1/1-month_moving_average.md +++ b/en/pedia/1/1-month_moving_average.md @@ -37,7 +37,7 @@ One primary use of moving averages is to identify trends. When the price is abov ### Signal Generation -Moving averages are integral in generating [trading signals](../t/trading_signals.md). When combined with other indicators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or [Bollinger Bands](../b/bollinger_bands.md), they form [robust](../r/robust.md) strategies for entering and exiting trades. For instance, a common algorithmic strategy is the "Moving Average Crossover," where a short-term MA crosses above a long-term MA, signaling a buying opportunity and vice versa for selling. +Moving averages are integral in generating [trading signals](../t/trading_signals.md). When combined with other indicators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or [Bollinger Bands](../b/bollinger_bands.md), they form [robust](../r/robust.md) strategies for entering and exiting trades. For instance, a common algorithmic strategy is the "Moving Average Crossover," where a short-term MA crosses above a long-term MA, signaling a buying opportunity and vice versa for selling. ### Risk Management diff --git a/en/pedia/1/1-period_rsi.md b/en/pedia/1/1-period_rsi.md index 4afaa3f2..8e93a6e5 100644 --- a/en/pedia/1/1-period_rsi.md +++ b/en/pedia/1/1-period_rsi.md @@ -2,7 +2,7 @@ ### Overview -The 1-Period [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a highly specific, short-term version of the traditional RSI, typically used in [technical analysis](../t/technical_analysis.md) and [algorithmic trading](../a/algorithmic_trading.md). Standard RSI measures [momentum](../m/momentum.md) over a longer timeframe, commonly using 14 periods, while the 1-period RSI narrows this focus to a single trading period. This RSI variant offers traders a unique perspective, often providing more frequent signals and allowing for more dynamic [trading strategies](../t/trading_strategies.md). In [algorithmic trading](../a/algorithmic_trading.md), the 1-period RSI can be utilized to generate high-frequency [trading signals](../t/trading_signals.md), capturing short-term [market](../m/market.md) movements and enhancing the performance of [trading algorithms](../t/trading_algorithms.md). +The 1-Period [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a highly specific, short-term version of the traditional RSI, typically used in [technical analysis](../t/technical_analysis.md) and [algorithmic trading](../a/algorithmic_trading.md). Standard RSI measures [momentum](../m/momentum.md) over a longer timeframe, commonly using 14 periods, while the 1-period RSI narrows this focus to a single trading period. This RSI variant offers traders a unique perspective, often providing more frequent signals and allowing for more dynamic [trading strategies](../t/trading_strategies.md). In [algorithmic trading](../a/algorithmic_trading.md), the 1-period RSI can be utilized to generate high-frequency [trading signals](../t/trading_signals.md), capturing short-term [market](../m/market.md) movements and enhancing the performance of [trading algorithms](../t/trading_algorithms.md). ### Basics of RSI diff --git a/en/pedia/1/1-period_sma.md b/en/pedia/1/1-period_sma.md index 67e0e4ed..11a2e22f 100644 --- a/en/pedia/1/1-period_sma.md +++ b/en/pedia/1/1-period_sma.md @@ -67,7 +67,7 @@ df = pd.DataFrame(data) df['SMA_1'] = df['close'] # Example decision using the 1-period SMA -for [index](../i/index.md), row in df.iterrows(): +for [index](../i/index_instrument.md), row in df.iterrows(): if row['close'] > row['SMA_1']: print(f"Buy Signal at {row['timestamp']}") diff --git a/en/pedia/1/1-year_moving_average.md b/en/pedia/1/1-year_moving_average.md index a78b55c0..c1a04556 100644 --- a/en/pedia/1/1-year_moving_average.md +++ b/en/pedia/1/1-year_moving_average.md @@ -1,6 +1,6 @@ # 1-Year Moving Average -The 1-year moving average (1Y MA) is a statistical metric used primarily in [financial markets](../f/financial_market.md) to analyze and smooth price data over a one-year period. This tool helps traders and investors to eliminate short-term [volatility](../v/volatility.md) and get a clearer picture of the overall [trend](../t/trend.md) of a [security](../s/security.md), [index](../i/index.md), or other [financial instrument](../f/financial_instrument.md). By averaging the data points of the past year, the 1Y MA can provide critical insights for making informed trading decisions. +The 1-year moving average (1Y MA) is a statistical metric used primarily in [financial markets](../f/financial_market.md) to analyze and smooth price data over a one-year period. This tool helps traders and investors to eliminate short-term [volatility](../v/volatility.md) and get a clearer picture of the overall [trend](../t/trend.md) of a [security](../s/security.md), [index](../i/index_instrument.md), or other [financial instrument](../f/financial_instrument.md). By averaging the data points of the past year, the 1Y MA can provide critical insights for making informed trading decisions. ## Definition and Calculation diff --git a/en/pedia/1/1-year_yield.md b/en/pedia/1/1-year_yield.md index 91a45879..2a60cdbf 100644 --- a/en/pedia/1/1-year_yield.md +++ b/en/pedia/1/1-year_yield.md @@ -1,6 +1,6 @@ # 1-Year Yield -The 1-year [yield](../y/yield.md) is a financial metric that represents the [return](../r/return.md) on an investment over a one-year period, usually expressed as a percentage. It is commonly used to evaluate the performance of various financial instruments such as bonds, fixed deposits, and other investment vehicles. In the context of [algorithmic trading](../a/algorithmic_trading.md), the 1-year [yield](../y/yield.md) can serve as a [benchmark](../b/benchmark.md) [index](../i/index.md) to gauge the effectiveness of [trading strategies](../t/trading_strategies.md) over an annual period. +The 1-year [yield](../y/yield.md) is a financial metric that represents the [return](../r/return.md) on an investment over a one-year period, usually expressed as a percentage. It is commonly used to evaluate the performance of various financial instruments such as bonds, fixed deposits, and other investment vehicles. In the context of [algorithmic trading](../a/algorithmic_trading.md), the 1-year [yield](../y/yield.md) can serve as a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) to gauge the effectiveness of [trading strategies](../t/trading_strategies.md) over an annual period. ## Importance in Algorithmic Trading diff --git a/en/pedia/1/10-day_rsi.md b/en/pedia/1/10-day_rsi.md index a85c9119..6f0f4096 100644 --- a/en/pedia/1/10-day_rsi.md +++ b/en/pedia/1/10-day_rsi.md @@ -1,6 +1,6 @@ # 10-Day RSI -The 10-Day [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements over a 10-day period. Developed by J. Welles Wilder Jr., RSI is one of the most widely used [technical indicators](../t/technical_indicators.md) in trading. The RSI provides signals indicating [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md), helping traders make entry and exit decisions. +The 10-Day [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements over a 10-day period. Developed by J. Welles Wilder Jr., RSI is one of the most widely used [technical indicators](../t/technical_indicators.md) in trading. The RSI provides signals indicating [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md), helping traders make entry and exit decisions. ## Calculation of 10-Day RSI diff --git a/en/pedia/1/10-day_sma.md b/en/pedia/1/10-day_sma.md index b971472b..1d6109a7 100644 --- a/en/pedia/1/10-day_sma.md +++ b/en/pedia/1/10-day_sma.md @@ -36,7 +36,7 @@ The 10-Day SMA serves [multiple](../m/multiple.md) purposes in [algorithmic trad 3. **[Support and Resistance](../s/support_and_resistance.md) Levels**: The 10-Day SMA can act as a support level in an [uptrend](../u/uptrend.md) or a resistance level in a [downtrend](../d/downtrend.md). Traders watch these levels closely because they can indicate points where the price might reverse. -4. **Combination with Other Indicators**: Often, the 10-Day SMA is used in conjunction with other [technical indicators](../t/technical_indicators.md). For example, it can be paired with [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) to improve the accuracy of [trading signals](../t/trading_signals.md). +4. **Combination with Other Indicators**: Often, the 10-Day SMA is used in conjunction with other [technical indicators](../t/technical_indicators.md). For example, it can be paired with [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) to improve the accuracy of [trading signals](../t/trading_signals.md). ## Practical Example diff --git a/en/pedia/1/10-month_moving_average.md b/en/pedia/1/10-month_moving_average.md index 01ad9081..7004ba1b 100644 --- a/en/pedia/1/10-month_moving_average.md +++ b/en/pedia/1/10-month_moving_average.md @@ -32,7 +32,7 @@ The 10-month moving average would be: Here's a more serious example using historical data from a real stock: -If we take the closing prices of the S&P 500 [index](../i/index.md) from the past ten months, which might look like this (hypothetical data): +If we take the closing prices of the S&P 500 [index](../i/index_instrument.md) from the past ten months, which might look like this (hypothetical data): \[ 3800, 3900, 4000, 4100, 4050, 4200, 4300, 4400, 4500, 4550 \] diff --git a/en/pedia/1/10-period_rsi.md b/en/pedia/1/10-period_rsi.md index 03796836..03b0bceb 100644 --- a/en/pedia/1/10-period_rsi.md +++ b/en/pedia/1/10-period_rsi.md @@ -2,7 +2,7 @@ ## Introduction -[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. RSI oscillates between zero and 100 and traditionally is considered [overbought](../o/overbought.md) when above 70 and [oversold](../o/oversold.md) when below 30. Developed by J. Welles Wilder, RSI is a widely used [momentum](../m/momentum.md) [indicator](../i/indicator.md) that has stood the test of time. One of its popular variations is the 10-period RSI. +[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. RSI oscillates between zero and 100 and traditionally is considered [overbought](../o/overbought.md) when above 70 and [oversold](../o/oversold.md) when below 30. Developed by J. Welles Wilder, RSI is a widely used [momentum](../m/momentum.md) [indicator](../i/indicator.md) that has stood the test of time. One of its popular variations is the 10-period RSI. ## What is 10-Period RSI? diff --git a/en/pedia/1/10-year_treasury_note.md b/en/pedia/1/10-year_treasury_note.md index 4bd18a00..4ed3df3b 100644 --- a/en/pedia/1/10-year_treasury_note.md +++ b/en/pedia/1/10-year_treasury_note.md @@ -49,7 +49,7 @@ Investors [demand](../d/demand.md) higher yields on Treasury securities to compe ### Economic Data Releases -Key [economic indicators](../e/economic_indicators.md) such as GDP growth, [unemployment](../u/unemployment.md) rates, and consumer price [index](../i/index.md) (CPI) reports can cause fluctuations in the [10-Year Treasury yield](../1/10-year_treasury_yield.md). +Key [economic indicators](../e/economic_indicators.md) such as GDP growth, [unemployment](../u/unemployment.md) rates, and consumer price [index](../i/index_instrument.md) (CPI) reports can cause fluctuations in the [10-Year Treasury yield](../1/10-year_treasury_yield.md). ### Demand and Supply Dynamics diff --git a/en/pedia/1/11th_district_cost_of_funds_index_(cofi).md b/en/pedia/1/11th_district_cost_of_funds_index_(cofi).md index 8bd47025..d65aa2c0 100644 --- a/en/pedia/1/11th_district_cost_of_funds_index_(cofi).md +++ b/en/pedia/1/11th_district_cost_of_funds_index_(cofi).md @@ -1,14 +1,14 @@ # 11th District Cost of Funds Index (COFI) -The 11th District Cost of Funds [Index](../i/index.md) (COFI) is a regional [economic indicator](../e/economic_indicator.md) that primarily affects the lending [economy](../e/economy.md), particularly in the western United States. This [index](../i/index.md) represents the [weighted average](../w/weighted_average.md) [interest](../i/interest.md) rates paid by savings institutions on deposits and advances. It's issued by the Federal [Home](../h/home.md) [Loan](../l/loan.md) [Bank](../b/bank.md) of San Francisco (FHLBSF). COFI is used extensively in the calculation of [interest](../i/interest.md) rates for adjustable-rate mortgages (ARMs), thereby influencing [mortgage](../m/mortgage.md) payments for a significant number of households. +The 11th District Cost of Funds [Index](../i/index_instrument.md) (COFI) is a regional [economic indicator](../e/economic_indicator.md) that primarily affects the lending [economy](../e/economy.md), particularly in the western United States. This [index](../i/index_instrument.md) represents the [weighted average](../w/weighted_average.md) [interest](../i/interest.md) rates paid by savings institutions on deposits and advances. It's issued by the Federal [Home](../h/home.md) [Loan](../l/loan.md) [Bank](../b/bank.md) of San Francisco (FHLBSF). COFI is used extensively in the calculation of [interest](../i/interest.md) rates for adjustable-rate mortgages (ARMs), thereby influencing [mortgage](../m/mortgage.md) payments for a significant number of households. ## Background and Definition ### What is COFI? -COFI stands for the 11th District Cost of Funds [Index](../i/index.md). It was developed to provide a standardized measure of the cost of funds for lending institutions within the 11th Federal [Home](../h/home.md) [Loan](../l/loan.md) [Bank](../b/bank.md) District. This district includes the states of Arizona, California, and Nevada. The [index](../i/index.md) is designed to reflect the [interest](../i/interest.md) costs incurred by these institutions on the funds they utilize for lending purposes. +COFI stands for the 11th District Cost of Funds [Index](../i/index_instrument.md). It was developed to provide a standardized measure of the cost of funds for lending institutions within the 11th Federal [Home](../h/home.md) [Loan](../l/loan.md) [Bank](../b/bank.md) District. This district includes the states of Arizona, California, and Nevada. The [index](../i/index_instrument.md) is designed to reflect the [interest](../i/interest.md) costs incurred by these institutions on the funds they utilize for lending purposes. ### Origin of COFI -The [index](../i/index.md) was initiated by the Federal [Home](../h/home.md) [Loan](../l/loan.md) [Bank](../b/bank.md) of San Francisco in 1981. It was aimed at providing a regional [benchmark](../b/benchmark.md) that would help in the standardized calculation of adjustable-rate mortgages (ARMs). By [offering](../o/offering.md) a consistent and reliable measure, COFI aids financial institutions in the effective pricing of ARMs. +The [index](../i/index_instrument.md) was initiated by the Federal [Home](../h/home.md) [Loan](../l/loan.md) [Bank](../b/bank.md) of San Francisco in 1981. It was aimed at providing a regional [benchmark](../b/benchmark.md) that would help in the standardized calculation of adjustable-rate mortgages (ARMs). By [offering](../o/offering.md) a consistent and reliable measure, COFI aids financial institutions in the effective pricing of ARMs. ### Composition COFI is calculated based on the [weighted average](../w/weighted_average.md) of [interest](../i/interest.md) rates paid by member financial institutions on various categories of deposits and borrowings. This includes: @@ -25,10 +25,10 @@ These components reflect the [cost of capital](../c/cost_of_capital.md) for a bl The data used to calculate COFI is derived from monthly reports submitted by savings institutions to the Federal [Home](../h/home.md) [Loan](../l/loan.md) [Bank](../b/bank.md) of San Francisco. These institutions report the actual [interest](../i/interest.md) expenses incurred on their deposits, as well as other [interest](../i/interest.md)-bearing liabilities. ### Weighting -Each type of [deposit](../d/deposit.md) or borrowing is [weighted](../w/weighted.md) according to its percentage share of the total funds. For instance, if savings deposits constitute 50% of the total funds, then the [interest](../i/interest.md) paid on savings deposits [will](../w/will.md) account for half of the [index](../i/index.md) calculation. +Each type of [deposit](../d/deposit.md) or borrowing is [weighted](../w/weighted.md) according to its percentage share of the total funds. For instance, if savings deposits constitute 50% of the total funds, then the [interest](../i/interest.md) paid on savings deposits [will](../w/will.md) account for half of the [index](../i/index_instrument.md) calculation. ### Calculation -The [index](../i/index.md) is calculated monthly and released approximately 30 days after the end of the reporting period. The formula for calculating COFI can be simplified as: +The [index](../i/index_instrument.md) is calculated monthly and released approximately 30 days after the end of the reporting period. The formula for calculating COFI can be simplified as: \[ \text{COFI} = \frac{\sum(\text{[Interest Expense](../i/interest_expense.md)}_i \times \text{Weight}_i)}{\sum \text{Total Funds}} \] @@ -36,12 +36,12 @@ where: - \( \text{[Interest Expense](../i/interest_expense.md)}_i \) is the total [interest](../i/interest.md) paid on a particular category of funds - \( \text{Weight}_i \) is the proportion of that category in the total funds -This calculation ensures that the [index](../i/index.md) accurately reflects the [weighted average](../w/weighted_average.md) cost of funds. +This calculation ensures that the [index](../i/index_instrument.md) accurately reflects the [weighted average](../w/weighted_average.md) cost of funds. ## Applications ### Adjustable-Rate Mortgages (ARMs) -One of the primary applications of COFI is in the adjustment of [interest](../i/interest.md) rates for adjustable-rate mortgages. In these [mortgage](../m/mortgage.md) contracts, the [interest rate](../i/interest_rate.md) is periodically adjusted based on the [value](../v/value.md) of a specific [index](../i/index.md), commonly COFI. [Mortgage](../m/mortgage.md) lenders use COFI to adjust the [interest](../i/interest.md) rates on loans, which subsequently impacts the monthly [mortgage](../m/mortgage.md) payments of borrowers. +One of the primary applications of COFI is in the adjustment of [interest](../i/interest.md) rates for adjustable-rate mortgages. In these [mortgage](../m/mortgage.md) contracts, the [interest rate](../i/interest_rate.md) is periodically adjusted based on the [value](../v/value.md) of a specific [index](../i/index_instrument.md), commonly COFI. [Mortgage](../m/mortgage.md) lenders use COFI to adjust the [interest](../i/interest.md) rates on loans, which subsequently impacts the monthly [mortgage](../m/mortgage.md) payments of borrowers. ### Financial Institutions Financial institutions use COFI to evaluate their own cost structures and to [benchmark](../b/benchmark.md) against other institutions. By analyzing COFI trends, banks and savings institutions can make informed decisions about their [loan](../l/loan.md) pricing, [deposit](../d/deposit.md) rates, and overall financial strategies. @@ -73,7 +73,7 @@ Looking ahead, the future trajectory of COFI [will](../w/will.md) likely be infl ## Conclusion -The 11th District Cost of Funds [Index](../i/index.md) (COFI) is a critical tool in the [financial sector](../f/financial_sector.md), particularly within the [mortgage](../m/mortgage.md) [market](../m/market.md). By providing a standardized measure of the costs incurred by savings institutions on their deposits and borrowings, COFI plays a vital role in the pricing of adjustable-rate mortgages. Its influence extends to both financial institutions and borrowers, making it a significant [economic indicator](../e/economic_indicator.md) in the western United States. +The 11th District Cost of Funds [Index](../i/index_instrument.md) (COFI) is a critical tool in the [financial sector](../f/financial_sector.md), particularly within the [mortgage](../m/mortgage.md) [market](../m/market.md). By providing a standardized measure of the costs incurred by savings institutions on their deposits and borrowings, COFI plays a vital role in the pricing of adjustable-rate mortgages. Its influence extends to both financial institutions and borrowers, making it a significant [economic indicator](../e/economic_indicator.md) in the western United States. For more information, you can visit the official page of the Federal [Home](../h/home.md) [Loan](../l/loan.md) [Bank](../b/bank.md) of San Francisco [here](https://www.fhlbsf.com). diff --git a/en/pedia/1/12b-1_fees.md b/en/pedia/1/12b-1_fees.md index 1c52c921..f03230ad 100644 --- a/en/pedia/1/12b-1_fees.md +++ b/en/pedia/1/12b-1_fees.md @@ -17,7 +17,7 @@ A [fund](../f/fund.md) can charge up to 1% of its assets annually under the 12b- ### Impact on Investors -12b-1 fees directly impact the net returns that investors receive because they are deducted from the [fund](../f/fund.md)’s assets. This [deduction](../d/deduction.md) effectively reduces the overall growth of an [investor](../i/investor.md)'s [money](../m/money.md) in the [fund](../f/fund.md). These fees can particularly erode returns in [index](../i/index.md) funds or other investment vehicles where the management expenses should ideally be lower. +12b-1 fees directly impact the net returns that investors receive because they are deducted from the [fund](../f/fund.md)’s assets. This [deduction](../d/deduction.md) effectively reduces the overall growth of an [investor](../i/investor.md)'s [money](../m/money.md) in the [fund](../f/fund.md). These fees can particularly erode returns in [index](../i/index_instrument.md) funds or other investment vehicles where the management expenses should ideally be lower. ### Controversy and Criticism diff --git a/en/pedia/1/2-2-8_adjustable-rate_mortgage_(2_28_arm).md b/en/pedia/1/2-2-8_adjustable-rate_mortgage_(2_28_arm).md index 7810fbc0..a71b9a20 100644 --- a/en/pedia/1/2-2-8_adjustable-rate_mortgage_(2_28_arm).md +++ b/en/pedia/1/2-2-8_adjustable-rate_mortgage_(2_28_arm).md @@ -8,11 +8,11 @@ A 2/28 ARM typically consists of two distinct phases: 1. **Initial Fixed-Rate Period (2 years):** For the first two years of the [loan](../l/loan.md), the [interest rate](../i/interest_rate.md) is fixed. This means that the monthly payments remain constant regardless of changes in broader [interest](../i/interest.md) rates. -2. **Adjustable-Rate Period (28 years):** Following the initial fixed period, the [loan](../l/loan.md) transitions into an adjustable-rate [mortgage](../m/mortgage.md) for the remaining 28 years. During this phase, the [interest rate](../i/interest_rate.md) can change periodically based on the terms specified in the [mortgage](../m/mortgage.md) agreement, usually aligning with a [benchmark](../b/benchmark.md) [interest rate](../i/interest_rate.md) [index](../i/index.md) plus a [margin](../m/margin.md). +2. **Adjustable-Rate Period (28 years):** Following the initial fixed period, the [loan](../l/loan.md) transitions into an adjustable-rate [mortgage](../m/mortgage.md) for the remaining 28 years. During this phase, the [interest rate](../i/interest_rate.md) can change periodically based on the terms specified in the [mortgage](../m/mortgage.md) agreement, usually aligning with a [benchmark](../b/benchmark.md) [interest rate](../i/interest_rate.md) [index](../i/index_instrument.md) plus a [margin](../m/margin.md). ### Benchmark Index and Margin -The adjustable-rate portion of the [mortgage](../m/mortgage.md) is typically indexed to a financial [benchmark](../b/benchmark.md), such as the London Interbank Offered Rate (LIBOR) or the 11th District Cost of Funds [Index](../i/index.md) (COFI). The specific rate the borrower pays is calculated as the [benchmark](../b/benchmark.md) rate plus a [margin](../m/margin.md). For example, if the agreed [margin](../m/margin.md) is 2% and the [benchmark](../b/benchmark.md) rate is currently at 3%, the borrower's new [interest rate](../i/interest_rate.md) for that period would be 5%. +The adjustable-rate portion of the [mortgage](../m/mortgage.md) is typically indexed to a financial [benchmark](../b/benchmark.md), such as the London Interbank Offered Rate (LIBOR) or the 11th District Cost of Funds [Index](../i/index_instrument.md) (COFI). The specific rate the borrower pays is calculated as the [benchmark](../b/benchmark.md) rate plus a [margin](../m/margin.md). For example, if the agreed [margin](../m/margin.md) is 2% and the [benchmark](../b/benchmark.md) rate is currently at 3%, the borrower's new [interest rate](../i/interest_rate.md) for that period would be 5%. ## Mechanics of the Adjustment @@ -20,11 +20,11 @@ The [interest rate](../i/interest_rate.md) adjustments usually occur annually, a ### Periodic Cap -A periodic cap limits the amount the [interest rate](../i/interest_rate.md) can increase from one adjustment period to the next. For instance, if an ARM has a 2% periodic cap, and the current rate is 5%, the new rate cannot exceed 7% even if the [benchmark](../b/benchmark.md) [index](../i/index.md) rises sharply. +A periodic cap limits the amount the [interest rate](../i/interest_rate.md) can increase from one adjustment period to the next. For instance, if an ARM has a 2% periodic cap, and the current rate is 5%, the new rate cannot exceed 7% even if the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) rises sharply. ### Lifetime Cap -A lifetime cap limits the total increase over the life of the [loan](../l/loan.md). If a [loan](../l/loan.md) has a 5% lifetime cap starting from an initial rate of 4%, the [interest rate](../i/interest_rate.md) can never exceed 9%, regardless of how high the [benchmark](../b/benchmark.md) [index](../i/index.md) moves. +A lifetime cap limits the total increase over the life of the [loan](../l/loan.md). If a [loan](../l/loan.md) has a 5% lifetime cap starting from an initial rate of 4%, the [interest rate](../i/interest_rate.md) can never exceed 9%, regardless of how high the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) moves. ## Benefits of a 2/28 ARM @@ -81,4 +81,4 @@ The suitability of a 2/28 ARM depends largely on an individual’s financial sit ## Conclusion -A 2/28 ARM can be a viable option for certain borrowers, particularly those who have clear, short-term plans for their homeownership or strong expectations of [income](../i/income.md) growth and refinancing opportunities. The lower initial [interest](../i/interest.md) rates make the [loan](../l/loan.md) more affordable in the short term, but the transition to adjustable rates introduces potential for significant [payment](../p/payment.md) increases. Therefore, it is crucial for borrowers to carefully assess their financial situation, future plans, and [risk tolerance](../r/risk_tolerance.md) before committing to a 2/28 ARM. Understanding the mechanics of the [loan](../l/loan.md), including the terms of adjustments, caps, and the [benchmark](../b/benchmark.md) [index](../i/index.md), is key to making an informed decision. \ No newline at end of file +A 2/28 ARM can be a viable option for certain borrowers, particularly those who have clear, short-term plans for their homeownership or strong expectations of [income](../i/income.md) growth and refinancing opportunities. The lower initial [interest](../i/interest.md) rates make the [loan](../l/loan.md) more affordable in the short term, but the transition to adjustable rates introduces potential for significant [payment](../p/payment.md) increases. Therefore, it is crucial for borrowers to carefully assess their financial situation, future plans, and [risk tolerance](../r/risk_tolerance.md) before committing to a 2/28 ARM. Understanding the mechanics of the [loan](../l/loan.md), including the terms of adjustments, caps, and the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), is key to making an informed decision. \ No newline at end of file diff --git a/en/pedia/1/2-factor_model.md b/en/pedia/1/2-factor_model.md index bed736cc..d8053882 100644 --- a/en/pedia/1/2-factor_model.md +++ b/en/pedia/1/2-factor_model.md @@ -36,7 +36,7 @@ The choice of factors in the 2-[Factor](../f/factor.md) Model is crucial and typ ### Implementation Example Consider an [algorithmic trading](../a/algorithmic_trading.md) system designed to [trade](../t/trade.md) equities. The system uses the 2-[Factor](../f/factor.md) Model with the following factors: -1. [Market Risk](../m/market_risk.md) (`MKT`): Measured using the S&P 500 [index](../i/index.md). +1. [Market Risk](../m/market_risk.md) (`MKT`): Measured using the S&P 500 [index](../i/index_instrument.md). 2. Size (`SMB`): Difference in returns between small-cap and large-cap companies. The trading algorithm processes these factors and accordingly adjusts the positions in various [stocks](../s/stock.md): diff --git a/en/pedia/1/2-hour_chart.md b/en/pedia/1/2-hour_chart.md index c5822731..a753d1ff 100644 --- a/en/pedia/1/2-hour_chart.md +++ b/en/pedia/1/2-hour_chart.md @@ -56,7 +56,7 @@ While not as data-intensive as minute charts, 2-hour charts still require relati ### 2. Mean Reversion Strategies -The 2-hour chart also serves well for [mean reversion](../m/mean_reversion.md) strategies, aiming to exploit deviations from an [asset](../a/asset.md)'s average price. Indicators such as [Bollinger Bands](../b/bollinger_bands.md), RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), or Stochastic Oscillators can be utilized on the 2-hour chart to signal [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +The 2-hour chart also serves well for [mean reversion](../m/mean_reversion.md) strategies, aiming to exploit deviations from an [asset](../a/asset.md)'s average price. Indicators such as [Bollinger Bands](../b/bollinger_bands.md), RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), or Stochastic Oscillators can be utilized on the 2-hour chart to signal [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. ### 3. Support and Resistance Levels diff --git a/en/pedia/1/2-period_ema.md b/en/pedia/1/2-period_ema.md index 69f46976..bff81e56 100644 --- a/en/pedia/1/2-period_ema.md +++ b/en/pedia/1/2-period_ema.md @@ -58,7 +58,7 @@ The 2-Period EMA is often used in conjunction with other EMAs or [technical indi Due to its sensitivity to recent price changes, the 2-Period EMA can also serve as a [momentum](../m/momentum.md) [indicator](../i/indicator.md). A steep slope in the EMA line indicates strong [momentum](../m/momentum.md) in the price movement, whereas a flatter slope suggests weaker [momentum](../m/momentum.md). ## Combining with Other Indicators -To enhance its effectiveness, traders often combine the 2-Period EMA with other [technical indicators](../t/technical_indicators.md) such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_bands.md). +To enhance its effectiveness, traders often combine the 2-Period EMA with other [technical indicators](../t/technical_indicators.md) such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_bands.md). ### Example Strategy: EMA Crossover An example of a strategy using the 2-Period EMA would be an EMA crossover strategy. Here’s how it might be implemented: diff --git a/en/pedia/1/2-period_rsi.md b/en/pedia/1/2-period_rsi.md index 09e529a0..ec856e9a 100644 --- a/en/pedia/1/2-period_rsi.md +++ b/en/pedia/1/2-period_rsi.md @@ -1,6 +1,6 @@ # 2-Period RSI -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a well-known [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) developed by J. Welles Wilder, which measures the speed and change of price movements. The RSI oscillates between zero and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). While the typical RSI calculation uses a 14-period lookback, the 2-period RSI is a variation designed for shorter time frames to provide more sensitive and frequent signals. This approach is particularly useful for active traders who engage in short-term trades. +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a well-known [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) developed by J. Welles Wilder, which measures the speed and change of price movements. The RSI oscillates between zero and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). While the typical RSI calculation uses a 14-period lookback, the 2-period RSI is a variation designed for shorter time frames to provide more sensitive and frequent signals. This approach is particularly useful for active traders who engage in short-term trades. ## Understanding RSI diff --git a/en/pedia/1/2-week_high_low.md b/en/pedia/1/2-week_high_low.md index d688e322..bf53855e 100644 --- a/en/pedia/1/2-week_high_low.md +++ b/en/pedia/1/2-week_high_low.md @@ -85,7 +85,7 @@ While the basic 2-week high/low strategy is straightforward, traders often refin Utilization of [risk management](../r/risk_management.md) tools, including [stop-loss orders](../s/stop-loss_orders.md) and [position sizing](../p/position_sizing.md) to mitigate potential losses. 3. **Combining Indicators:** - Blending the 2-week high/low signals with other [technical indicators](../t/technical_indicators.md) like RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)) or MACD (Moving Average Convergence [Divergence](../d/divergence.md)) for more [robust](../r/robust.md) [trade](../t/trade.md) signals. + Blending the 2-week high/low signals with other [technical indicators](../t/technical_indicators.md) like RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)) or MACD (Moving Average Convergence [Divergence](../d/divergence.md)) for more [robust](../r/robust.md) [trade](../t/trade.md) signals. ### Tools and Platforms diff --git a/en/pedia/1/20-week_cycle.md b/en/pedia/1/20-week_cycle.md index 75b9e360..23dffb7c 100644 --- a/en/pedia/1/20-week_cycle.md +++ b/en/pedia/1/20-week_cycle.md @@ -31,7 +31,7 @@ Algorithmic traders use the 20-week cycle to develop automated [trading strategi Algorithms identify the peaks and troughs of the 20-week cycle for optimal entry and exit points. For instance, entering a long position at the [trough](../t/trough.md) and exiting at the peak. ### Position Sizing -Combining the 20-week cycle with other [technical indicators](../t/technical_indicators.md) such as [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) and Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can help in optimal [position sizing](../p/position_sizing.md). +Combining the 20-week cycle with other [technical indicators](../t/technical_indicators.md) such as [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) and Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can help in optimal [position sizing](../p/position_sizing.md). ### Risk Management Implementing stop-loss and take-[profit](../p/profit.md) levels based on the 20-week cycle can enhance [risk management](../r/risk_management.md). diff --git a/en/pedia/1/3-bar_reversal.md b/en/pedia/1/3-bar_reversal.md index 678d0694..55a8713d 100644 --- a/en/pedia/1/3-bar_reversal.md +++ b/en/pedia/1/3-bar_reversal.md @@ -76,14 +76,14 @@ def identify_3_bar_reversal(data): second_bar['Close'] < first_bar['Close'] and third_bar['Close'] > third_bar['[Open](../o/open.md)'] and third_bar['Close'] > first_bar['High']): - signals.append((data.[index](../i/index.md)[i], "BUY")) + signals.append((data.[index](../i/index_instrument.md)[i], "BUY")) # [Check](../c/check.md) Bearish [Reversal](../r/reversal.md) elif (first_bar['Close'] > first_bar['[Open](../o/open.md)'] and second_bar['Close'] > first_bar['Close'] and third_bar['Close'] < third_bar['[Open](../o/open.md)'] and third_bar['Close'] < first_bar['Low']): - signals.append((data.[index](../i/index.md)[i], "SELL")) + signals.append((data.[index](../i/index_instrument.md)[i], "SELL")) [return](../r/return.md) signals @@ -93,7 +93,7 @@ data = pd.DataFrame({ 'Close': [95, 92, 97, 105, 107, 102], 'High': [101, 96, 98, 106, 108, 107], 'Low': [94, 91, 92, 99, 103, 100] -}, [index](../i/index.md)=pd.date_range(start='2023-01-01', periods=6)) +}, [index](../i/index_instrument.md)=pd.date_range(start='2023-01-01', periods=6)) signals = identify_3_bar_reversal(data) print(signals) diff --git a/en/pedia/1/3-day_cycle.md b/en/pedia/1/3-day_cycle.md index 7f3ff6fe..bc5a6de4 100644 --- a/en/pedia/1/3-day_cycle.md +++ b/en/pedia/1/3-day_cycle.md @@ -15,7 +15,7 @@ The fundamental idea behind the 3-day cycle is that [financial markets](../f/fin Algorithmic traders utilize various [technical indicators](../t/technical_indicators.md) and statistical tools to identify and validate 3-day cycle patterns. Common tools include: - **Moving Averages (MA):** Helps smooth out price data to identify trends over a specified time period, including three-day periods. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** Measures the speed and change of price movements, often indicating [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, which are essential in identifying overextensions or reversals in a three-day cycle. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** Measures the speed and change of price movements, often indicating [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, which are essential in identifying overextensions or reversals in a three-day cycle. - **[Bollinger Bands](../b/bollinger_bands.md):** Provides a visual representation of [volatility](../v/volatility.md) and can demonstrate price movements within upper and lower bands over a three-day period. ### Implementing the 3-Day Cycle Strategy diff --git a/en/pedia/1/3-day_rsi.md b/en/pedia/1/3-day_rsi.md index 10666ac0..41ee3f91 100644 --- a/en/pedia/1/3-day_rsi.md +++ b/en/pedia/1/3-day_rsi.md @@ -1,6 +1,6 @@ # 3-Day RSI -The 3-Day [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements over a 3-day period. RSI oscillates between zero and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a traded [security](../s/security.md). When applied to a 3-day time frame, it becomes a more short-term [indicator](../i/indicator.md) compared to the more traditional 14-day RSI. This shorter [duration](../d/duration.md) can help traders take faster action in response to [market](../m/market.md) events. +The 3-Day [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements over a 3-day period. RSI oscillates between zero and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a traded [security](../s/security.md). When applied to a 3-day time frame, it becomes a more short-term [indicator](../i/indicator.md) compared to the more traditional 14-day RSI. This shorter [duration](../d/duration.md) can help traders take faster action in response to [market](../m/market.md) events. ## Calculation of 3-Day RSI diff --git a/en/pedia/1/3-period_rsi.md b/en/pedia/1/3-period_rsi.md index 0989683a..d52e899c 100644 --- a/en/pedia/1/3-period_rsi.md +++ b/en/pedia/1/3-period_rsi.md @@ -1,6 +1,6 @@ # 3-Period RSI -In [algorithmic trading](../a/algorithmic_trading.md), one of the most widely used [technical indicators](../t/technical_indicators.md) for quantifying the [momentum](../m/momentum.md) of [asset](../a/asset.md) prices is the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI). The RSI was introduced by J. Welles Wilder in his 1978 book "New Concepts in Technical [Trading Systems](../t/trading_systems.md)." The RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It oscillates between 0 and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). While the standard RSI calculation uses a 14-period timeframe, shorter period RSIs, such as the 3-period RSI, are also commonly employed, particularly in [short-term trading](../s/short-term_trading.md) strategies. +In [algorithmic trading](../a/algorithmic_trading.md), one of the most widely used [technical indicators](../t/technical_indicators.md) for quantifying the [momentum](../m/momentum.md) of [asset](../a/asset.md) prices is the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI). The RSI was introduced by J. Welles Wilder in his 1978 book "New Concepts in Technical [Trading Systems](../t/trading_systems.md)." The RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It oscillates between 0 and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). While the standard RSI calculation uses a 14-period timeframe, shorter period RSIs, such as the 3-period RSI, are also commonly employed, particularly in [short-term trading](../s/short-term_trading.md) strategies. ## Calculation of the 3-Period RSI diff --git a/en/pedia/1/3-week_cycle.md b/en/pedia/1/3-week_cycle.md index b3ba9994..c4cb2e87 100644 --- a/en/pedia/1/3-week_cycle.md +++ b/en/pedia/1/3-week_cycle.md @@ -22,7 +22,7 @@ To utilize the 3-Week Cycle in [trading strategies](../t/trading_strategies.md), 1. **Statistical Analysis**: Using statistical methods to detect periodicity in price movements. Tools like Fourier transforms or [wavelet analysis](../w/wavelet_analysis.md) may be employed to identify dominant cycles in the [market](../m/market.md) data. -2. **[Technical Indicators](../t/technical_indicators.md)**: Applying [technical indicators](../t/technical_indicators.md) such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), or [Bollinger Bands](../b/bollinger_bands.md) to smooth out data and identify turning points in cycles. +2. **[Technical Indicators](../t/technical_indicators.md)**: Applying [technical indicators](../t/technical_indicators.md) such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), or [Bollinger Bands](../b/bollinger_bands.md) to smooth out data and identify turning points in cycles. 3. **Machine Learning**: Leveraging machine [learning algorithms](../l/learning_algorithms_in_trading.md) to analyze large datasets and uncover complex patterns that might not be immediately visible through traditional statistical methods. diff --git a/en/pedia/1/3-year_treasury_note.md b/en/pedia/1/3-year_treasury_note.md index 4ea9ed22..1560853b 100644 --- a/en/pedia/1/3-year_treasury_note.md +++ b/en/pedia/1/3-year_treasury_note.md @@ -85,7 +85,7 @@ Treasury Bonds have longer maturities, typically ranging from 20 to 30 years. Th ### Treasury Inflation-Protected Securities (TIPS) -TIPS are similar to [Treasury Notes](../t/treasury_notes.md) and Bonds but with an added feature: their [principal](../p/principal.md) [value](../v/value.md) adjusts based on changes in the Consumer Price [Index](../i/index.md) (CPI). This characteristic provides protection against [inflation](../i/inflation.md). TIPS are suitable for investors looking to maintain [purchasing power](../p/purchasing_power.md) in inflationary environments. +TIPS are similar to [Treasury Notes](../t/treasury_notes.md) and Bonds but with an added feature: their [principal](../p/principal.md) [value](../v/value.md) adjusts based on changes in the Consumer Price [Index](../i/index_instrument.md) (CPI). This characteristic provides protection against [inflation](../i/inflation.md). TIPS are suitable for investors looking to maintain [purchasing power](../p/purchasing_power.md) in inflationary environments. ### Floating Rate Notes (FRNs) diff --git a/en/pedia/1/30-day_rsi.md b/en/pedia/1/30-day_rsi.md index 3afad94c..aa0ebd9a 100644 --- a/en/pedia/1/30-day_rsi.md +++ b/en/pedia/1/30-day_rsi.md @@ -1,6 +1,6 @@ # 30-Day RSI -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. Considered one of the most popular [technical analysis](../t/technical_analysis.md) tools, it was developed by J. Welles Wilder. The RSI oscillates between 0 and 100. Traditionally, an RSI reading above 70 is considered [overbought](../o/overbought.md), while an RSI reading below 30 is considered [oversold](../o/oversold.md). The 30-Day RSI is a specific application of this [indicator](../i/indicator.md) where the calculation considers the past 30 days of data. +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. Considered one of the most popular [technical analysis](../t/technical_analysis.md) tools, it was developed by J. Welles Wilder. The RSI oscillates between 0 and 100. Traditionally, an RSI reading above 70 is considered [overbought](../o/overbought.md), while an RSI reading below 30 is considered [oversold](../o/oversold.md). The 30-Day RSI is a specific application of this [indicator](../i/indicator.md) where the calculation considers the past 30 days of data. ## Formula and Calculation diff --git a/en/pedia/1/3_27_adjustable-rate_mortgage_(arm).md b/en/pedia/1/3_27_adjustable-rate_mortgage_(arm).md index a8becaa1..76539712 100644 --- a/en/pedia/1/3_27_adjustable-rate_mortgage_(arm).md +++ b/en/pedia/1/3_27_adjustable-rate_mortgage_(arm).md @@ -1,6 +1,6 @@ # 3/27 Adjustable-Rate Mortgage (ARM) -A 3/27 Adjustable-Rate [Mortgage](../m/mortgage.md) (ARM) is a type of [home](../h/home.md) [loan](../l/loan.md) structured with an initial [fixed interest rate](../f/fixed_interest_rate.md) for the first three years. Following this initial period, the [interest rate](../i/interest_rate.md) becomes adjustable and varies periodically based on a specific [index](../i/index.md) or [benchmark](../b/benchmark.md). This type of [mortgage](../m/mortgage.md) is a common form of an intermediate-term ARM, which blends the benefits of both fixed-rate and adjustable-rate mortgages. +A 3/27 Adjustable-Rate [Mortgage](../m/mortgage.md) (ARM) is a type of [home](../h/home.md) [loan](../l/loan.md) structured with an initial [fixed interest rate](../f/fixed_interest_rate.md) for the first three years. Following this initial period, the [interest rate](../i/interest_rate.md) becomes adjustable and varies periodically based on a specific [index](../i/index_instrument.md) or [benchmark](../b/benchmark.md). This type of [mortgage](../m/mortgage.md) is a common form of an intermediate-term ARM, which blends the benefits of both fixed-rate and adjustable-rate mortgages. ## Structure and Mechanism @@ -8,7 +8,7 @@ A 3/27 Adjustable-Rate [Mortgage](../m/mortgage.md) (ARM) is a type of [home](.. In the case of a 3/27 ARM, the borrower enjoys a [fixed interest rate](../f/fixed_interest_rate.md) for the first three years. During this period, the [interest rate](../i/interest_rate.md) does not change, which provides a sense of stability and predictability regarding monthly [mortgage](../m/mortgage.md) payments. This initial fixed-rate period typically offers a lower rate compared to traditional 30-year fixed-rate mortgages, making the [loan](../l/loan.md) attractive to borrowers seeking lower initial payments. ### Adjustable Period -After the initial three-year period, the [loan](../l/loan.md) enters its adjustable phase, which lasts for the remaining 27 years. During this time, the [interest rate](../i/interest_rate.md) is subject to change at regular intervals, which are often annual. The adjustable rate is calculated based on a specific [index](../i/index.md) (such as the London Interbank Offered Rate, or LIBOR) plus a [margin](../m/margin.md) set by the [lender](../l/lender.md). Rate adjustments are usually subject to caps or limits on how much they can increase or decrease, providing some protection to the borrower against extreme rate hikes. +After the initial three-year period, the [loan](../l/loan.md) enters its adjustable phase, which lasts for the remaining 27 years. During this time, the [interest rate](../i/interest_rate.md) is subject to change at regular intervals, which are often annual. The adjustable rate is calculated based on a specific [index](../i/index_instrument.md) (such as the London Interbank Offered Rate, or LIBOR) plus a [margin](../m/margin.md) set by the [lender](../l/lender.md). Rate adjustments are usually subject to caps or limits on how much they can increase or decrease, providing some protection to the borrower against extreme rate hikes. ## Advantages of a 3/27 ARM @@ -46,7 +46,7 @@ Individuals anticipating a considerable increase in their [income](../i/income.m ## Regulatory and Market Considerations ### Index and Margin -The adjustable-rate of a 3/27 ARM relies on an [underlying](../u/underlying.md) [index](../i/index.md) such as LIBOR, [Prime Rate](../p/prime_rate.md), or the Cost of Funds [Index](../i/index.md) (COFI), plus a [margin](../m/margin.md) determined by the [lender](../l/lender.md). The choice of [index](../i/index.md) significantly affects how the rate fluctuates. For example, the LIBOR [index](../i/index.md) is known for [variability](../v/variability.md), which can lead to more pronounced rate swings. +The adjustable-rate of a 3/27 ARM relies on an [underlying](../u/underlying.md) [index](../i/index_instrument.md) such as LIBOR, [Prime Rate](../p/prime_rate.md), or the Cost of Funds [Index](../i/index_instrument.md) (COFI), plus a [margin](../m/margin.md) determined by the [lender](../l/lender.md). The choice of [index](../i/index_instrument.md) significantly affects how the rate fluctuates. For example, the LIBOR [index](../i/index_instrument.md) is known for [variability](../v/variability.md), which can lead to more pronounced rate swings. ### Rate Caps To protect borrowers from drastic rate changes, most 3/27 ARMs come with rate caps. These caps include: diff --git a/en/pedia/1/3x_leveraged_etfs.md b/en/pedia/1/3x_leveraged_etfs.md index ab8fb648..725fd9c2 100644 --- a/en/pedia/1/3x_leveraged_etfs.md +++ b/en/pedia/1/3x_leveraged_etfs.md @@ -1,18 +1,18 @@ # 3X Leveraged ETFs ### Introduction -A 3X leveraged [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF) aims to amplify the returns of its [benchmark](../b/benchmark.md) [index](../i/index.md) by three times each day. These financial instruments are designed to deliver triple the daily performance, whether positive or negative, of the [index](../i/index.md) or [asset](../a/asset.md) they are tracking. Leveraged 3X ETFs are particularly popular among traders who seek high-[risk](../r/risk.md), high-reward strategies over short time horizons. +A 3X leveraged [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF) aims to amplify the returns of its [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) by three times each day. These financial instruments are designed to deliver triple the daily performance, whether positive or negative, of the [index](../i/index_instrument.md) or [asset](../a/asset.md) they are tracking. Leveraged 3X ETFs are particularly popular among traders who seek high-[risk](../r/risk.md), high-reward strategies over short time horizons. ### Mechanics of 3X Leveraged ETFs [Leveraged ETFs](../l/leveraged_etfs.md) are complex financial instruments that rely on [derivatives](../d/derivatives.md), such as [options](../o/options.md), [futures contracts](../f/futures_contracts.md), and swaps, to achieve their stated objectives. The key mechanisms that enable [leveraged ETFs](../l/leveraged_etfs.md) to achieve their multiplied returns include: 1. **Daily [Rebalancing](../r/rebalancing.md)**: - [Leveraged ETFs](../l/leveraged_etfs.md) rebalance their portfolios daily to maintain a constant [leverage ratio](../l/leverage_ratio.md). This means that the [fund](../f/fund.md) adjusts its [holdings](../h/holdings.md) at the end of each trading day to ensure it meets its 3X [leverage](../l/leverage.md) target. - - Example: If the [benchmark](../b/benchmark.md) [index](../i/index.md) gains 1%, a 3X [leveraged ETF](../l/leveraged_etf.md) would aim to [gain](../g/gain.md) 3% for that day. Conversely, if the [index](../i/index.md) loses 1%, the ETF would aim to lose 3%. + - Example: If the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) gains 1%, a 3X [leveraged ETF](../l/leveraged_etf.md) would aim to [gain](../g/gain.md) 3% for that day. Conversely, if the [index](../i/index_instrument.md) loses 1%, the ETF would aim to lose 3%. 2. **Use of [Derivatives](../d/derivatives.md)**: - To amplify returns, 3X [leveraged ETFs](../l/leveraged_etfs.md) extensively use financial [derivatives](../d/derivatives.md) such as [futures](../f/futures.md) and swaps. - - These [derivatives](../d/derivatives.md) provide exposure to the [underlying](../u/underlying.md) [index](../i/index.md) while allowing for the [leverage effect](../l/leverage_effect_in_trading.md). + - These [derivatives](../d/derivatives.md) provide exposure to the [underlying](../u/underlying.md) [index](../i/index_instrument.md) while allowing for the [leverage effect](../l/leverage_effect_in_trading.md). 3. **[Compounding](../c/compounding.md) Effect**: - The daily reset mechanism leads to [compounding](../c/compounding.md) of returns, which can greatly amplify gains during uptrends and losses during downtrends, especially over [multiple](../m/multiple.md) trading sessions. @@ -22,31 +22,31 @@ A 3X leveraged [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF) ai Several 3X [leveraged ETFs](../l/leveraged_etfs.md) cater to different [market](../m/market.md) segments and [asset](../a/asset.md) classes. Some popular [options](../o/options.md) include: - **Direxion Daily S&P 500 [Bull](../b/bull.md) 3X [Shares](../s/shares.md) (SPXL)**: - - Tracks the performance of the S&P 500 [Index](../i/index.md) with three times the daily returns. + - Tracks the performance of the S&P 500 [Index](../i/index_instrument.md) with three times the daily returns. - [Direxion SPXL](https://www.direxion.com/product/direxion-daily-sp-500-bull-3x-shares) - **ProShares UltraPro QQQ (TQQQ)**: - - Offers three times the daily performance of the [NASDAQ](../n/nasdaq.md)-100 [Index](../i/index.md). + - Offers three times the daily performance of the [NASDAQ](../n/nasdaq.md)-100 [Index](../i/index_instrument.md). - [ProShares TQQQ](https://www.proshares.com/our-etfs/leveraged-and-inverse/tqqq) - **Direxion Daily Financial [Bull](../b/bull.md) 3X [Shares](../s/shares.md) (FAS)**: - - Amplifies the returns of the Russell 1000 Financial Services [Index](../i/index.md) by 300%. + - Amplifies the returns of the Russell 1000 Financial Services [Index](../i/index_instrument.md) by 300%. - [Direxion FAS](https://www.direxion.com/product/direxion-daily-financial-bull-3x-shares) - **ProShares UltraPro Short S&P 500 (SPXU)**: - - Designed to provide three times the inverse daily [return](../r/return.md) of the S&P 500 [Index](../i/index.md). + - Designed to provide three times the inverse daily [return](../r/return.md) of the S&P 500 [Index](../i/index_instrument.md). - [ProShares SPXU](https://www.proshares.com/our-etfs/leveraged-and-inverse/spxu) ### Risk and Considerations [Investing](../i/investing.md) in 3X [leveraged ETFs](../l/leveraged_etfs.md) is not without significant risks. Understanding these risks is crucial for any potential [investor](../i/investor.md): 1. **Magnified Losses**: - - Just as gains are amplified, so too are losses. A 3X [leveraged ETF](../l/leveraged_etf.md) [will](../w/will.md) lose [value](../v/value.md) three times as quickly as the [benchmark](../b/benchmark.md) [index](../i/index.md) during [market](../m/market.md) downturns. - - Example: A 1% decline in the [index](../i/index.md) results in a 3% decline in the ETF. + - Just as gains are amplified, so too are losses. A 3X [leveraged ETF](../l/leveraged_etf.md) [will](../w/will.md) lose [value](../v/value.md) three times as quickly as the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) during [market](../m/market.md) downturns. + - Example: A 1% decline in the [index](../i/index_instrument.md) results in a 3% decline in the ETF. 2. **Decay Over Time**: - The daily [rebalancing](../r/rebalancing.md) and [compounding](../c/compounding.md) effect can cause [leveraged ETFs](../l/leveraged_etfs.md) to suffer from [value](../v/value.md) decay over time, especially in volatile markets. - - Example: In a choppy [market](../m/market.md), even if the [index](../i/index.md) returns to its original level, the [leveraged ETF](../l/leveraged_etf.md) may end up with a loss due to the cumulative effect of the daily resets. + - Example: In a choppy [market](../m/market.md), even if the [index](../i/index_instrument.md) returns to its original level, the [leveraged ETF](../l/leveraged_etf.md) may end up with a loss due to the cumulative effect of the daily resets. 3. **High [Expense](../e/expense.md) Ratios**: - [Leveraged ETFs](../l/leveraged_etfs.md) typically have higher [expense](../e/expense.md) ratios compared to traditional ETFs due to the costs associated with using [derivatives](../d/derivatives.md) and daily [rebalancing](../r/rebalancing.md). diff --git a/en/pedia/1/4-hour_chart.md b/en/pedia/1/4-hour_chart.md index ad616dcb..cceede71 100644 --- a/en/pedia/1/4-hour_chart.md +++ b/en/pedia/1/4-hour_chart.md @@ -30,7 +30,7 @@ Moving averages, such as the Simple Moving Average (SMA) and the Exponential Mov ### RSI (Relative Strength Index) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. On a 4-hour chart, RSI helps identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, providing clues for potential [trend](../t/trend.md) reversals or continuation. +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. On a 4-hour chart, RSI helps identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, providing clues for potential [trend](../t/trend.md) reversals or continuation. ### MACD (Moving Average Convergence Divergence) diff --git a/en/pedia/1/4-hour_rsi.md b/en/pedia/1/4-hour_rsi.md index e9f31c44..ecf0a965 100644 --- a/en/pedia/1/4-hour_rsi.md +++ b/en/pedia/1/4-hour_rsi.md @@ -1,9 +1,9 @@ # 4-Hour RSI -The 4-hour [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) used in [technical analysis](../t/technical_analysis.md) to measure the speed and change of price movements over a specified period. RSI ranges from 0 to 100, with levels above 70 indicating [overbought](../o/overbought.md) conditions and levels below 30 indicating [oversold](../o/oversold.md) conditions. The 4-hour RSI is a variant that analyzes price data in 4-hour intervals, providing a mid-term perspective on [market](../m/market.md) [momentum](../m/momentum.md). This tool is particularly useful for traders who engage in short to mid-term [trading strategies](../t/trading_strategies.md), including [algorithmic trading](../a/algorithmic_trading.md). +The 4-hour [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) used in [technical analysis](../t/technical_analysis.md) to measure the speed and change of price movements over a specified period. RSI ranges from 0 to 100, with levels above 70 indicating [overbought](../o/overbought.md) conditions and levels below 30 indicating [oversold](../o/oversold.md) conditions. The 4-hour RSI is a variant that analyzes price data in 4-hour intervals, providing a mid-term perspective on [market](../m/market.md) [momentum](../m/momentum.md). This tool is particularly useful for traders who engage in short to mid-term [trading strategies](../t/trading_strategies.md), including [algorithmic trading](../a/algorithmic_trading.md). ## Overview -[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is one of the most popular [technical indicators](../t/technical_indicators.md) used by traders. Developed by J. Welles Wilder, it was first introduced in his 1978 book "New Concepts in Technical [Trading Systems](../t/trading_systems.md)." RSI measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in the price of a stock or other [asset](../a/asset.md). +[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is one of the most popular [technical indicators](../t/technical_indicators.md) used by traders. Developed by J. Welles Wilder, it was first introduced in his 1978 book "New Concepts in Technical [Trading Systems](../t/trading_systems.md)." RSI measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in the price of a stock or other [asset](../a/asset.md). The formula for calculating RSI is: \[ @@ -21,7 +21,7 @@ For a 4-hour RSI, RS ([Relative Strength](../r/relative_strength.md)) is usually 2. **Compute Gains and Losses:** Determine the gains and losses for each interval. 3. **Calculate Average Gains and Losses:** Compute the average [gain](../g/gain.md) and average loss over the look-back period. 4. **Determine [Relative Strength](../r/relative_strength.md) (RS):** Divide the average [gain](../g/gain.md) by the average loss to get the RS. -5. **Compute RSI:** Apply the RSI formula to convert RS to an [index](../i/index.md) that ranges from 0 to 100. +5. **Compute RSI:** Apply the RSI formula to convert RS to an [index](../i/index_instrument.md) that ranges from 0 to 100. ### Example 1. **Collect 4-Hour Price Data:** Assume closing prices for the past 14 four-hour intervals are [45, 47, 48, 50, 49, 51, 52, 51, 53, 54, 56, 57, 58, 59]. diff --git a/en/pedia/1/4-period_rsi.md b/en/pedia/1/4-period_rsi.md index 03f6b9b5..83ec3756 100644 --- a/en/pedia/1/4-period_rsi.md +++ b/en/pedia/1/4-period_rsi.md @@ -1,6 +1,6 @@ # 4-Period RSI -The 4-Period [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements over a specified period, in this case, four periods. The RSI oscillates between zero and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md) for a given [security](../s/security.md). +The 4-Period [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements over a specified period, in this case, four periods. The RSI oscillates between zero and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md) for a given [security](../s/security.md). ## Calculation of RSI The RSI is calculated using the following formula: diff --git a/en/pedia/1/4-week_moving_average.md b/en/pedia/1/4-week_moving_average.md index 0c704ecc..9039fc5c 100644 --- a/en/pedia/1/4-week_moving_average.md +++ b/en/pedia/1/4-week_moving_average.md @@ -57,7 +57,7 @@ The effectiveness of the 4WMA can vary depending on [market](../m/market.md) con Traders often use the 4WMA as part of [trend](../t/trend.md)-following strategies. For example, a common strategy might involve buying an [asset](../a/asset.md) when its price crosses above the 4WMA and selling when the price falls below the 4WMA. ### Combination with Other Indicators -The 4WMA can be used in conjunction with other [technical indicators](../t/technical_indicators.md) to build more [robust](../r/robust.md) [trading strategies](../t/trading_strategies.md). For instance, traders might combine the 4WMA with [momentum indicators](../m/momentum_indicators.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) to confirm trends and reduce [false signals](../f/false_signals_in_trading.md). +The 4WMA can be used in conjunction with other [technical indicators](../t/technical_indicators.md) to build more [robust](../r/robust.md) [trading strategies](../t/trading_strategies.md). For instance, traders might combine the 4WMA with [momentum indicators](../m/momentum_indicators.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) to confirm trends and reduce [false signals](../f/false_signals_in_trading.md). ### Analyzing Market Cycles The 4WMA can also help in analyzing longer-term [market cycles](../m/market_cycles.md). By comparing the 4WMA with longer-period moving averages, traders can gauge the strength and [duration](../d/duration.md) of [market](../m/market.md) trends. diff --git a/en/pedia/1/4-week_rsi.md b/en/pedia/1/4-week_rsi.md index 4125564a..e63a0396 100644 --- a/en/pedia/1/4-week_rsi.md +++ b/en/pedia/1/4-week_rsi.md @@ -1,6 +1,6 @@ # 4-Week RSI -The 4-Week [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements over a specified period, in this case, four weeks. The RSI was originally introduced by J. Welles Wilder Jr. in his 1978 book, "New Concepts in Technical [Trading Systems](../t/trading_systems.md)". Traditionally, the RSI is calculated using a 14-day period; however, adapting it to a 4-week (roughly equivalent to a 20-day) timeframe can provide a different perspective, particularly useful for medium-term [trading strategies](../t/trading_strategies.md). This technical [indicator](../i/indicator.md) is widely used in algotrading for identifying [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [security](../s/security.md)'s price, as well as for signaling potential reversals. +The 4-Week [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements over a specified period, in this case, four weeks. The RSI was originally introduced by J. Welles Wilder Jr. in his 1978 book, "New Concepts in Technical [Trading Systems](../t/trading_systems.md)". Traditionally, the RSI is calculated using a 14-day period; however, adapting it to a 4-week (roughly equivalent to a 20-day) timeframe can provide a different perspective, particularly useful for medium-term [trading strategies](../t/trading_strategies.md). This technical [indicator](../i/indicator.md) is widely used in algotrading for identifying [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [security](../s/security.md)'s price, as well as for signaling potential reversals. ## Calculation of 4-Week RSI diff --git a/en/pedia/1/4-week_rule.md b/en/pedia/1/4-week_rule.md index ed3342b1..a2b63879 100644 --- a/en/pedia/1/4-week_rule.md +++ b/en/pedia/1/4-week_rule.md @@ -38,7 +38,7 @@ def four_week_rule(data): Implement the 4 Week Rule for [breakout trading](../b/breakout_trading.md). Params: - data - A pandas DataFrame containing 'Close' prices with a datetime [index](../i/index.md). + data - A pandas DataFrame containing 'Close' prices with a datetime [index](../i/index_instrument.md). Returns: buy_signals, sell_signals - Boolean Series indicating buy and sell signals. diff --git a/en/pedia/1/401(k)_plan.md b/en/pedia/1/401(k)_plan.md index 1c61efe5..4ee3751c 100644 --- a/en/pedia/1/401(k)_plan.md +++ b/en/pedia/1/401(k)_plan.md @@ -70,7 +70,7 @@ Several companies specialize in [offering](../o/offering.md) 401(k) plans to emp Fidelity is one of the largest providers of 401(k) plans in the United States. They [offer](../o/offer.md) a wide [range](../r/range.md) of investment [options](../o/options.md), [robust](../r/robust.md) online tools, and educational resources to help participants optimize their retirement savings. [Fidelity](https://www.fidelity.com). ### Vanguard -Vanguard is known for its low-cost [index](../i/index.md) funds and has a significant presence in the retirement plan [market](../m/market.md). They [offer](../o/offer.md) comprehensive 401(k) services, including plan administration and [investment management](../i/investment_management.md). [Vanguard](https://www.vanguard.com). +Vanguard is known for its low-cost [index](../i/index_instrument.md) funds and has a significant presence in the retirement plan [market](../m/market.md). They [offer](../o/offer.md) comprehensive 401(k) services, including plan administration and [investment management](../i/investment_management.md). [Vanguard](https://www.vanguard.com). ### Charles Schwab Schwab provides extensive 401(k) plan services, including a variety of investment [options](../o/options.md) and advisory services. Their platform is user-friendly and includes tools to help participants make informed decisions. [Charles Schwab](https://www.schwab.com). diff --git a/en/pedia/1/5-3-5_wave_pattern.md b/en/pedia/1/5-3-5_wave_pattern.md index dc3fed1a..46d587f2 100644 --- a/en/pedia/1/5-3-5_wave_pattern.md +++ b/en/pedia/1/5-3-5_wave_pattern.md @@ -36,7 +36,7 @@ Identifying a 5-3-5 wave pattern requires a keen eye for recognizing emerging wa Key Indicators used alongside [Elliott Wave Theory](../e/elliott_wave_theory.md): - **Fibonacci Retracements**: These help identify potential [reversal](../r/reversal.md) levels within waves. - **Moving Averages**: Aid in confirming [trend](../t/trend.md) direction. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Indicates [momentum](../m/momentum.md) and [overbought](../o/overbought.md)/[oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Indicates [momentum](../m/momentum.md) and [overbought](../o/overbought.md)/[oversold](../o/oversold.md) conditions. #### Application in Trading @@ -55,7 +55,7 @@ Consistency and practice are crucial for mastering the identification and tradin #### Market Sentiment and Behavioral Finance -The effectiveness of the 5-3-5 wave pattern is also rooted in the principles of [behavioral finance](../b/behavioral_finance.md). Investors’ collective actions, driven by fear, greed, and other emotions, typically form the waves observed in [Elliott Wave Theory](../e/elliott_wave_theory.md). Therefore, analyzing [market sentiment](../m/market_sentiment.md) through tools like the CBOE [Volatility](../v/volatility.md) [Index](../i/index.md) (VIX) or [social media](../s/social_media.md) [sentiment analysis](../s/sentiment_analysis.md) can [complement](../c/complement.md) [technical analysis](../t/technical_analysis.md). +The effectiveness of the 5-3-5 wave pattern is also rooted in the principles of [behavioral finance](../b/behavioral_finance.md). Investors’ collective actions, driven by fear, greed, and other emotions, typically form the waves observed in [Elliott Wave Theory](../e/elliott_wave_theory.md). Therefore, analyzing [market sentiment](../m/market_sentiment.md) through tools like the CBOE [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX) or [social media](../s/social_media.md) [sentiment analysis](../s/sentiment_analysis.md) can [complement](../c/complement.md) [technical analysis](../t/technical_analysis.md). #### Useful Resources and Tools diff --git a/en/pedia/1/5-6_hybrid_adjustable-rate_mortgage_(5-6_hybrid_arm).md b/en/pedia/1/5-6_hybrid_adjustable-rate_mortgage_(5-6_hybrid_arm).md index a0f95dce..3de7cc9b 100644 --- a/en/pedia/1/5-6_hybrid_adjustable-rate_mortgage_(5-6_hybrid_arm).md +++ b/en/pedia/1/5-6_hybrid_adjustable-rate_mortgage_(5-6_hybrid_arm).md @@ -10,7 +10,7 @@ A 5-6 Hybrid Adjustable-Rate [Mortgage](../m/mortgage.md) (ARM) is a specialized 2. **Adjustment Period:** After the initial fixed-rate period, the [interest rate](../i/interest_rate.md) adjusts every six months. The adjustment frequency is denoted by the '6' in the 5-6 ARM. -3. **[Index](../i/index.md) and [Margin](../m/margin.md):** The [interest rate](../i/interest_rate.md) adjustments are usually tied to a specific financial [index](../i/index.md), such as the London Interbank Offered Rate (LIBOR) or the [U.S. Treasury](../u/u.s._treasury.md) Securities. A [margin](../m/margin.md), which is a fixed percentage point set by the [lender](../l/lender.md), is added to the [index](../i/index.md) to determine the new [interest rate](../i/interest_rate.md). +3. **[Index](../i/index_instrument.md) and [Margin](../m/margin.md):** The [interest rate](../i/interest_rate.md) adjustments are usually tied to a specific financial [index](../i/index_instrument.md), such as the London Interbank Offered Rate (LIBOR) or the [U.S. Treasury](../u/u.s._treasury.md) Securities. A [margin](../m/margin.md), which is a fixed percentage point set by the [lender](../l/lender.md), is added to the [index](../i/index_instrument.md) to determine the new [interest rate](../i/interest_rate.md). 4. **Caps:** There are usually caps in place to limit how much the [interest rate](../i/interest_rate.md) can change during each adjustment period and over the life of the [loan](../l/loan.md). These caps provide some level of protection against extreme fluctuations in [interest](../i/interest.md) rates. diff --git a/en/pedia/1/5-day_moving_average.md b/en/pedia/1/5-day_moving_average.md index a2d145e2..43f5b7de 100644 --- a/en/pedia/1/5-day_moving_average.md +++ b/en/pedia/1/5-day_moving_average.md @@ -39,7 +39,7 @@ This simple rule can be implemented in [trading algorithms](../t/trading_algorit ### Combining with Other Indicators -To enhance the reliability of signals, traders often combine the 5MA with other [technical indicators](../t/technical_indicators.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), or [Bollinger Bands](../b/bollinger_bands.md). For example, a crossover rule with the 5MA and a longer-term moving average (say, 20-day MA) can be used to confirm [trade](../t/trade.md) signals. +To enhance the reliability of signals, traders often combine the 5MA with other [technical indicators](../t/technical_indicators.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), or [Bollinger Bands](../b/bollinger_bands.md). For example, a crossover rule with the 5MA and a longer-term moving average (say, 20-day MA) can be used to confirm [trade](../t/trade.md) signals. ### Backtesting diff --git a/en/pedia/1/5-day_rsi.md b/en/pedia/1/5-day_rsi.md index 266b586e..eaaca8fd 100644 --- a/en/pedia/1/5-day_rsi.md +++ b/en/pedia/1/5-day_rsi.md @@ -1,6 +1,6 @@ # 5-Day RSI -The 5-Day RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements over a 5-day period. This tool was developed by J. Welles Wilder Jr. and is widely used in [technical analysis](../t/technical_analysis.md) to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [security](../s/security.md). The RSI oscillates between 0 and 100 and typically, a [security](../s/security.md) is considered [overbought](../o/overbought.md) when the RSI is above 70 and [oversold](../o/oversold.md) when it is below 30. +The 5-Day RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements over a 5-day period. This tool was developed by J. Welles Wilder Jr. and is widely used in [technical analysis](../t/technical_analysis.md) to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [security](../s/security.md). The RSI oscillates between 0 and 100 and typically, a [security](../s/security.md) is considered [overbought](../o/overbought.md) when the RSI is above 70 and [oversold](../o/oversold.md) when it is below 30. #### Calculation of the 5-Day RSI diff --git a/en/pedia/1/5-day_sma.md b/en/pedia/1/5-day_sma.md index 8538c8a2..49834b45 100644 --- a/en/pedia/1/5-day_sma.md +++ b/en/pedia/1/5-day_sma.md @@ -61,7 +61,7 @@ Most trading platforms and charting software provide built-in tools to calculate #### 5-Day SMA in Algorithmic Trading -In [algorithmic trading](../a/algorithmic_trading.md), the 5-Day SMA is often used as a fundamental component of more complex [trading strategies](../t/trading_strategies.md). Algorithms might incorporate [multiple](../m/multiple.md) moving averages or use the SMA in combination with other [technical indicators](../t/technical_indicators.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or [Bollinger Bands](../b/bollinger_bands.md) to design more [robust](../r/robust.md) [trading systems](../t/trading_systems.md). +In [algorithmic trading](../a/algorithmic_trading.md), the 5-Day SMA is often used as a fundamental component of more complex [trading strategies](../t/trading_strategies.md). Algorithms might incorporate [multiple](../m/multiple.md) moving averages or use the SMA in combination with other [technical indicators](../t/technical_indicators.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or [Bollinger Bands](../b/bollinger_bands.md) to design more [robust](../r/robust.md) [trading systems](../t/trading_systems.md). [Algorithmic trading](../a/algorithmic_trading.md) platforms and libraries such as: diff --git a/en/pedia/1/5-year_treasury_note.md b/en/pedia/1/5-year_treasury_note.md index beffb4fa..73d2f8cb 100644 --- a/en/pedia/1/5-year_treasury_note.md +++ b/en/pedia/1/5-year_treasury_note.md @@ -29,7 +29,7 @@ The Federal Reserve monitors the yields on Treasury securities, including the 5- 5-Year [Treasury Notes](../t/treasury_notes.md) are considered one of the safest investments because they are backed by the full faith and [credit](../c/credit.md) of the U.S. government. The primary [risk](../r/risk.md) associated with 5-Year T-Notes is [interest rate risk](../i/interest_rate_risk.md). If [interest](../i/interest.md) rates rise after purchase, the [market value](../m/market_value.md) of the [note](../n/note.md) may decline. ### Inflation Protection -The [return](../r/return.md) on a 5-Year T-[Note](../n/note.md) can be eroded by [inflation](../i/inflation.md). To mitigate this [risk](../r/risk.md), investors can consider Treasury [Inflation-Protected Securities](../i/inflation-protected_securities.md) (TIPS), which adjust their [principal](../p/principal.md) [value](../v/value.md) based on changes in the Consumer Price [Index](../i/index.md) (CPI). +The [return](../r/return.md) on a 5-Year T-[Note](../n/note.md) can be eroded by [inflation](../i/inflation.md). To mitigate this [risk](../r/risk.md), investors can consider Treasury [Inflation-Protected Securities](../i/inflation-protected_securities.md) (TIPS), which adjust their [principal](../p/principal.md) [value](../v/value.md) based on changes in the Consumer Price [Index](../i/index_instrument.md) (CPI). ## Historical Performance ### Yield Trends diff --git a/en/pedia/1/50-period_moving_average.md b/en/pedia/1/50-period_moving_average.md index f982427c..125a15e4 100644 --- a/en/pedia/1/50-period_moving_average.md +++ b/en/pedia/1/50-period_moving_average.md @@ -20,7 +20,7 @@ The 50-period moving average can act as a dynamic support or resistance level. I ### Momentum Indicator -Integrating the 50-period moving average with other [momentum indicators](../m/momentum_indicators.md), such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD), can enhance the accuracy of [trading signals](../t/trading_signals.md). When the 50-period MA aligns with these indicators' signals, it reinforces the probability of a significant price move. +Integrating the 50-period moving average with other [momentum indicators](../m/momentum_indicators.md), such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD), can enhance the accuracy of [trading signals](../t/trading_signals.md). When the 50-period MA aligns with these indicators' signals, it reinforces the probability of a significant price move. ### Risk Management diff --git a/en/pedia/1/52-week_moving_average.md b/en/pedia/1/52-week_moving_average.md index 460ebdcd..5d7ff78c 100644 --- a/en/pedia/1/52-week_moving_average.md +++ b/en/pedia/1/52-week_moving_average.md @@ -74,7 +74,7 @@ By plotting the 52-week moving average on Apple's stock price, investors noticed ![S&P 500 52-Week Moving Average](https://example.com/sp500-chart) -During early 2020, the S&P 500 [index](../i/index.md) fell significantly below its 52-week moving average. [Mean reversion](../m/mean_reversion.md) strategies would have identified this as an [oversold](../o/oversold.md) condition, prompting buy orders. +During early 2020, the S&P 500 [index](../i/index_instrument.md) fell significantly below its 52-week moving average. [Mean reversion](../m/mean_reversion.md) strategies would have identified this as an [oversold](../o/oversold.md) condition, prompting buy orders. ## 8. Tools and Platforms for Utilizing Moving Averages in Trading diff --git a/en/pedia/1/52-week_range.md b/en/pedia/1/52-week_range.md index 00f8d2a1..2c55bb62 100644 --- a/en/pedia/1/52-week_range.md +++ b/en/pedia/1/52-week_range.md @@ -58,7 +58,7 @@ def place_trade(signal, date, price): # Implement [trade](../t/trade.md) [execution](../e/execution.md) logic here pass -for [index](../i/index.md), row in df.iterrows(): +for [index](../i/index_instrument.md), row in df.iterrows(): if row['Buy_Signal']: place_trade('BUY', row['Date'], row['Close']) elif row['Sell_Signal']: diff --git a/en/pedia/1/5_1_hybrid_adjustable-rate_mortgage_(5_1_hybrid_arm).md b/en/pedia/1/5_1_hybrid_adjustable-rate_mortgage_(5_1_hybrid_arm).md index 785b2b96..cf65e22b 100644 --- a/en/pedia/1/5_1_hybrid_adjustable-rate_mortgage_(5_1_hybrid_arm).md +++ b/en/pedia/1/5_1_hybrid_adjustable-rate_mortgage_(5_1_hybrid_arm).md @@ -10,13 +10,13 @@ During the first five years, the [interest rate](../i/interest_rate.md) on a 5/1 ### Adjustable-Rate Period -After the initial five-year fixed-rate period, the [interest rate](../i/interest_rate.md) adjusts annually. The new rate is typically based on an [index](../i/index.md) plus a [margin](../m/margin.md). Common indices include the LIBOR (London Interbank Offered Rate), the 11th District Cost of Funds [Index](../i/index.md) (COFI), and the one-year [U.S. Treasury](../u/u.s._treasury.md) [Index](../i/index.md). The [margin](../m/margin.md) is a fixed percentage added to that [index](../i/index.md) rate, and it remains constant over the life of the [loan](../l/loan.md). +After the initial five-year fixed-rate period, the [interest rate](../i/interest_rate.md) adjusts annually. The new rate is typically based on an [index](../i/index_instrument.md) plus a [margin](../m/margin.md). Common indices include the LIBOR (London Interbank Offered Rate), the 11th District Cost of Funds [Index](../i/index_instrument.md) (COFI), and the one-year [U.S. Treasury](../u/u.s._treasury.md) [Index](../i/index_instrument.md). The [margin](../m/margin.md) is a fixed percentage added to that [index](../i/index_instrument.md) rate, and it remains constant over the life of the [loan](../l/loan.md). The amount by which the [interest rate](../i/interest_rate.md) can change each year, as well as over the life of the [loan](../l/loan.md), is usually capped. For example, a 5/1 ARM might have caps of 2/2/5—meaning the [interest rate](../i/interest_rate.md) can rise by a maximum of 2% per year after the first adjustment, with a lifetime cap of 5% above the initial rate. ### Example Calculation -Suppose a borrower takes out a 5/1 [Hybrid ARM](../h/hybrid_arm.md) with an initial [interest rate](../i/interest_rate.md) of 3%. For the first five years, the borrower pays 3%. Starting in the sixth year, the [interest rate](../i/interest_rate.md) adjusts based on the selected [index](../i/index.md) plus a [margin](../m/margin.md). If the [index](../i/index.md) rate is 2% and the [margin](../m/margin.md) is 2.5%, the new [interest rate](../i/interest_rate.md) would be 4.5%. If there's a 2% annual cap, the [interest rate](../i/interest_rate.md) could not exceed 5% for that year regardless of the [index](../i/index.md) rate. +Suppose a borrower takes out a 5/1 [Hybrid ARM](../h/hybrid_arm.md) with an initial [interest rate](../i/interest_rate.md) of 3%. For the first five years, the borrower pays 3%. Starting in the sixth year, the [interest rate](../i/interest_rate.md) adjusts based on the selected [index](../i/index_instrument.md) plus a [margin](../m/margin.md). If the [index](../i/index_instrument.md) rate is 2% and the [margin](../m/margin.md) is 2.5%, the new [interest rate](../i/interest_rate.md) would be 4.5%. If there's a 2% annual cap, the [interest rate](../i/interest_rate.md) could not exceed 5% for that year regardless of the [index](../i/index_instrument.md) rate. ## Advantages of a 5/1 Hybrid ARM diff --git a/en/pedia/1/6-period_ema.md b/en/pedia/1/6-period_ema.md index 180fb2a8..54371a72 100644 --- a/en/pedia/1/6-period_ema.md +++ b/en/pedia/1/6-period_ema.md @@ -21,7 +21,7 @@ Traders and [algorithmic trading](../a/algorithmic_trading.md) systems use the 6 1. **Responsiveness**: The 6-period EMA reacts quickly to recent price changes, making it suitable for [short-term trading](../s/short-term_trading.md) strategies. 2. **[Trend](../t/trend.md) Identification**: It helps in identifying the immediate [trend](../t/trend.md) direction, which is valuable for making quick trading decisions. 3. **[Support and Resistance](../s/support_and_resistance.md) Levels**: The 6-period EMA can act as a dynamic support or resistance level. -4. **Combining with Other Indicators**: It works well when combined with other [technical indicators](../t/technical_indicators.md) such as the MACD (Moving Average Convergence [Divergence](../d/divergence.md)) or RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)). +4. **Combining with Other Indicators**: It works well when combined with other [technical indicators](../t/technical_indicators.md) such as the MACD (Moving Average Convergence [Divergence](../d/divergence.md)) or RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)). ### Calculation Example diff --git a/en/pedia/1/6-week_cycle.md b/en/pedia/1/6-week_cycle.md index 08c02382..ec71b627 100644 --- a/en/pedia/1/6-week_cycle.md +++ b/en/pedia/1/6-week_cycle.md @@ -8,7 +8,7 @@ In the constantly evolving landscape of [algorithmic trading](../a/algorithmic_t The concept of [market cycles](../m/market_cycles.md) is not new. Traders and [market](../m/market.md) analysts have long been aware of recurring patterns in stock prices, commodities, and forex markets. The 6-week cycle, however, gained more attention over recent years through extensive back-testing and statistical analysis. ### Identifying the 6-Week Cycle -To identify a 6-week cycle, traders employ various [technical analysis](../t/technical_analysis.md) tools such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and Fibonacci retracements. Statistical methods like Fourier Transform and [spectral analysis](../s/spectral_analysis.md) are also used to discern these cycles from random [market](../m/market.md) [noise](../n/noise.md). +To identify a 6-week cycle, traders employ various [technical analysis](../t/technical_analysis.md) tools such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and Fibonacci retracements. Statistical methods like Fourier Transform and [spectral analysis](../s/spectral_analysis.md) are also used to discern these cycles from random [market](../m/market.md) [noise](../n/noise.md). ## Technical Foundations diff --git a/en/pedia/1/8-period_ema.md b/en/pedia/1/8-period_ema.md index 0047e04f..8a4e523b 100644 --- a/en/pedia/1/8-period_ema.md +++ b/en/pedia/1/8-period_ema.md @@ -38,7 +38,7 @@ The choice of period length in moving averages is crucial for tailoring the [ind 3. **Crossovers**: Traders often use EMA crossovers to generate buy or sell signals. A common strategy is to use [multiple](../m/multiple.md) EMAs of different periods. For instance, when the 8-period EMA crosses above the 20-period EMA, it may signal a buy, and when it crosses below, it may signal a sell. -4. **Combination with Other Indicators**: The 8-period EMA can be combined with other [technical indicators](../t/technical_indicators.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) to create more [robust](../r/robust.md) [trading strategies](../t/trading_strategies.md). +4. **Combination with Other Indicators**: The 8-period EMA can be combined with other [technical indicators](../t/technical_indicators.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) to create more [robust](../r/robust.md) [trading strategies](../t/trading_strategies.md). ### Example: Moving Average Crossover Strategy diff --git a/en/pedia/1/8-period_moving_average.md b/en/pedia/1/8-period_moving_average.md index a32b8a26..a6cf0648 100644 --- a/en/pedia/1/8-period_moving_average.md +++ b/en/pedia/1/8-period_moving_average.md @@ -46,7 +46,7 @@ The 8-Period MA is primarily used to identify short-term trends. When the price ### Confirming Other Indicators -The 8-Period MA is often used in conjunction with other [technical indicators](../t/technical_indicators.md) such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), or [Bollinger Bands](../b/bollinger_bands.md). By confirming signals from these indicators, traders can improve the accuracy of their [trading strategies](../t/trading_strategies.md). For example, a [trader](../t/trader.md) might look for buy signals when the RSI shows an [oversold](../o/oversold.md) condition and the price moves above the 8-Period MA. +The 8-Period MA is often used in conjunction with other [technical indicators](../t/technical_indicators.md) such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), or [Bollinger Bands](../b/bollinger_bands.md). By confirming signals from these indicators, traders can improve the accuracy of their [trading strategies](../t/trading_strategies.md). For example, a [trader](../t/trader.md) might look for buy signals when the RSI shows an [oversold](../o/oversold.md) condition and the price moves above the 8-Period MA. ### Support and Resistance diff --git a/en/pedia/1/8-period_rsi.md b/en/pedia/1/8-period_rsi.md index dddc21fb..b81c7dcc 100644 --- a/en/pedia/1/8-period_rsi.md +++ b/en/pedia/1/8-period_rsi.md @@ -1,6 +1,6 @@ # 8-Period RSI -The 8-Period [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a popular [technical analysis](../t/technical_analysis.md) [indicator](../i/indicator.md) used by traders to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in the [market](../m/market.md). Developed by J. Welles Wilder Jr. in 1978, the RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It oscillates between zero and 100 and is typically used to identify the strength and weakness of a stock or [asset](../a/asset.md) over a specified time period. Although the most standard and widely used period for RSI is 14 days, the 8-period RSI can provide more responsive and quicker signals. +The 8-Period [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a popular [technical analysis](../t/technical_analysis.md) [indicator](../i/indicator.md) used by traders to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in the [market](../m/market.md). Developed by J. Welles Wilder Jr. in 1978, the RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It oscillates between zero and 100 and is typically used to identify the strength and weakness of a stock or [asset](../a/asset.md) over a specified time period. Although the most standard and widely used period for RSI is 14 days, the 8-period RSI can provide more responsive and quicker signals. ## The Fundamentals of RSI diff --git a/en/pedia/1/9-ema.md b/en/pedia/1/9-ema.md index ffa71d3d..ff60b548 100644 --- a/en/pedia/1/9-ema.md +++ b/en/pedia/1/9-ema.md @@ -64,7 +64,7 @@ Cryptocurrency traders also employ the 9-EMA to navigate the highly volatile con The 9-EMA is often used in conjunction with other [technical indicators](../t/technical_indicators.md) to improve the accuracy of [trading signals](../t/trading_signals.md). Popular combinations include: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: To confirm potential entry and exit points by analyzing [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: To confirm potential entry and exit points by analyzing [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: To identify potential shifts in [momentum](../m/momentum.md). - **[Bollinger Bands](../b/bollinger_bands.md)**: To incorporate [volatility](../v/volatility.md) into trading decisions. diff --git a/en/pedia/1/9-period_rsi.md b/en/pedia/1/9-period_rsi.md index b14fc638..1b687eb4 100644 --- a/en/pedia/1/9-period_rsi.md +++ b/en/pedia/1/9-period_rsi.md @@ -1,6 +1,6 @@ # 9-Period RSI -The 9-period [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a popular [technical analysis](../t/technical_analysis.md) [indicator](../i/indicator.md) used to measure the strength and [momentum](../m/momentum.md) of price movements in [financial markets](../f/financial_market.md). RSI was created by J. Welles Wilder Jr. and introduced in his book "New Concepts in Technical [Trading Systems](../t/trading_systems.md)" in 1978. While the traditional RSI calculation uses a 14-period [default](../d/default.md), the 9-period RSI is a shorter-term variation that some traders prefer for quicker signals and increased sensitivity to price changes. +The 9-period [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a popular [technical analysis](../t/technical_analysis.md) [indicator](../i/indicator.md) used to measure the strength and [momentum](../m/momentum.md) of price movements in [financial markets](../f/financial_market.md). RSI was created by J. Welles Wilder Jr. and introduced in his book "New Concepts in Technical [Trading Systems](../t/trading_systems.md)" in 1978. While the traditional RSI calculation uses a 14-period [default](../d/default.md), the 9-period RSI is a shorter-term variation that some traders prefer for quicker signals and increased sensitivity to price changes. ## How RSI is Calculated diff --git a/en/pedia/a/a-shares.md b/en/pedia/a/a-shares.md index 977c7b25..0d4af74d 100644 --- a/en/pedia/a/a-shares.md +++ b/en/pedia/a/a-shares.md @@ -12,7 +12,7 @@ A-[shares](../s/shares.md) represent a substantial portion of the Chinese [equit 2. **[Market Regulation](../m/market_regulation.md)**: The China Securities Regulatory [Commission](../c/commission.md) (CSRC) oversees the regulation of A-[shares](../s/shares.md), ensuring compliance with financial policies meant to protect investors and maintain [market](../m/market.md) stability. -3. **[Index](../i/index.md) Inclusion**: Major global indices, like the MSCI Emerging Markets [Index](../i/index.md), have gradually started to include A-[shares](../s/shares.md), reflecting their growing importance in the global investment landscape. +3. **[Index](../i/index_instrument.md) Inclusion**: Major global indices, like the MSCI Emerging Markets [Index](../i/index_instrument.md), have gradually started to include A-[shares](../s/shares.md), reflecting their growing importance in the global investment landscape. ## Historical Perspective @@ -24,7 +24,7 @@ The inception of A-[shares](../s/shares.md) can be traced back to the late 1980s 2. **Stock Connect Programs**: The Shanghai-Hong Kong Stock Connect (launched in 2014) and Shenzhen-Hong Kong Stock Connect (launched in 2016) further opened up the [market](../m/market.md), enabling international investors to [trade](../t/trade.md) A-[shares](../s/shares.md) directly through Hong Kong. -3. **MSCI Inclusion**: In June 2018, MSCI began including A-[shares](../s/shares.md) in its widely tracked MSCI Emerging Markets [Index](../i/index.md). This inclusion has progressively increased, with significant implications for [global fund](../g/global_fund.md) allocations towards Chinese equities. +3. **MSCI Inclusion**: In June 2018, MSCI began including A-[shares](../s/shares.md) in its widely tracked MSCI Emerging Markets [Index](../i/index_instrument.md). This inclusion has progressively increased, with significant implications for [global fund](../g/global_fund.md) allocations towards Chinese equities. ## Advantages of Investing in A-Shares diff --git a/en/pedia/a/abenomics.md b/en/pedia/a/abenomics.md index 916e9ef1..bb937a69 100644 --- a/en/pedia/a/abenomics.md +++ b/en/pedia/a/abenomics.md @@ -34,7 +34,7 @@ The third arrow focused on long-term structural reforms aimed at increasing [pro Initially, Abenomics had a significant impact on the Japanese [economy](../e/economy.md): -- **[Stock Market](../s/stock_market.md) [Rally](../r/rally.md)**: The [Nikkei](../n/nikkei.md) 225 [index](../i/index.md) surged in response to Abenomics, reflecting increased [investor](../i/investor.md) confidence and expectations of higher corporate profits. +- **[Stock Market](../s/stock_market.md) [Rally](../r/rally.md)**: The [Nikkei](../n/nikkei.md) 225 [index](../i/index_instrument.md) surged in response to Abenomics, reflecting increased [investor](../i/investor.md) confidence and expectations of higher corporate profits. - **[Currency](../c/currency.md) [Depreciation](../d/depreciation.md)**: The yen depreciated significantly against other major currencies, benefiting Japan's [export](../e/export.md)-oriented industries. - **[Inflation](../i/inflation.md)**: [Inflation](../i/inflation.md) showed signs of picking up, and consumer confidence improved, leading to increased spending. diff --git a/en/pedia/a/abnormal_return.md b/en/pedia/a/abnormal_return.md index 75c2d394..270e52ec 100644 --- a/en/pedia/a/abnormal_return.md +++ b/en/pedia/a/abnormal_return.md @@ -72,7 +72,7 @@ For example, **Two Sigma** [two sigma](https://www.twosigma.com/) is a known qua #### Performance Analysis by Financial Analysts -Financial analysts and portfolio managers make use of abnormal [return](../r/return.md) metrics to determine the efficacy of their investment strategies. An analyst may compare the actual returns of a portfolio to a [benchmark](../b/benchmark.md) [index](../i/index.md) to calculate the abnormal [return](../r/return.md) and subsequently refine strategies based on the insights gained. +Financial analysts and portfolio managers make use of abnormal [return](../r/return.md) metrics to determine the efficacy of their investment strategies. An analyst may compare the actual returns of a portfolio to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) to calculate the abnormal [return](../r/return.md) and subsequently refine strategies based on the insights gained. ### Risk and Return Adjustments diff --git a/en/pedia/a/absolute_return.md b/en/pedia/a/absolute_return.md index e30580c8..d0bdb135 100644 --- a/en/pedia/a/absolute_return.md +++ b/en/pedia/a/absolute_return.md @@ -1,6 +1,6 @@ # Absolute Return -Absolute [return](../r/return.md) is a financial term referring to the [gain](../g/gain.md) or loss that an [asset](../a/asset.md) or portfolio achieves over a given period, expressed in terms of its percentage [return](../r/return.md). Unlike relative [return](../r/return.md), which measures performance relative to a [benchmark](../b/benchmark.md) or [index](../i/index.md), absolute [return](../r/return.md) focuses solely on the individual performance of the investment itself. +Absolute [return](../r/return.md) is a financial term referring to the [gain](../g/gain.md) or loss that an [asset](../a/asset.md) or portfolio achieves over a given period, expressed in terms of its percentage [return](../r/return.md). Unlike relative [return](../r/return.md), which measures performance relative to a [benchmark](../b/benchmark.md) or [index](../i/index_instrument.md), absolute [return](../r/return.md) focuses solely on the individual performance of the investment itself. ## Concept and Importance diff --git a/en/pedia/a/accountability.md b/en/pedia/a/accountability.md index 4b6e69cb..30f014d6 100644 --- a/en/pedia/a/accountability.md +++ b/en/pedia/a/accountability.md @@ -64,7 +64,7 @@ Several trading platforms provide the [infrastructure](../i/infrastructure.md) f Many brokers and exchanges [offer](../o/offer.md) APIs (Application Programming Interfaces) that allow algorithmic traders to interact with their [trading systems](../t/trading_systems.md) programmatically. Examples include: -- [Interactive Brokers](../i/interactive_brokers.md) API (https://www.interactivebrokers.com/en/[index](../i/index.md).php?f=5041) +- [Interactive Brokers](../i/interactive_brokers.md) API (https://www.interactivebrokers.com/en/[index](../i/index_instrument.md).php?f=5041) - [Alpaca](../a/alpaca.md) API (https://[alpaca](../a/alpaca.md).markets/docs/api-documentation/) ### 4. Data Providers diff --git a/en/pedia/a/accumulation_phase.md b/en/pedia/a/accumulation_phase.md index 910d1123..17a09168 100644 --- a/en/pedia/a/accumulation_phase.md +++ b/en/pedia/a/accumulation_phase.md @@ -24,7 +24,7 @@ In the context of [financial markets](../f/financial_market.md), the accumulatio **Moving Averages:** One way to identify the accumulation phase is to look for moving averages flattening out after a [downtrend](../d/downtrend.md). The 50-day and 200-day moving averages are commonly used; when these lines start converging, it can indicate a beginning of a potential [turnaround](../t/turnaround.md). -**[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** An RSI below 30 indicates [oversold](../o/oversold.md) conditions, which may suggest that an accumulation phase is near. However, investors should look for the RSI to start rising again before making the assumption. +**[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** An RSI below 30 indicates [oversold](../o/oversold.md) conditions, which may suggest that an accumulation phase is near. However, investors should look for the RSI to start rising again before making the assumption. **On-Balance [Volume](../v/volume.md) (OBV):** The OBV [indicator](../i/indicator.md) adds [volume](../v/volume.md) on up days and subtracts [volume](../v/volume.md) on down days. A rising OBV during a period of price [consolidation](../c/consolidation.md) or slight decline may suggest that accumulation is occurring. diff --git a/en/pedia/a/active_management.md b/en/pedia/a/active_management.md index 081b6faf..965a9073 100644 --- a/en/pedia/a/active_management.md +++ b/en/pedia/a/active_management.md @@ -1,9 +1,9 @@ # Active Management -Active management is an [investment strategy](../i/investment_strategy.md) wherein the manager takes an active role in buying and selling securities with the objective of outperforming an investment [benchmark](../b/benchmark.md) [index](../i/index.md). Unlike passive management, where the investment portfolio is designed to replicate a specific [index](../i/index.md), active managers rely on their research, foresight, and [judgment](../j/judgment.md) to build a portfolio that [will](../w/will.md) achieve better returns. +Active management is an [investment strategy](../i/investment_strategy.md) wherein the manager takes an active role in buying and selling securities with the objective of outperforming an investment [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). Unlike passive management, where the investment portfolio is designed to replicate a specific [index](../i/index_instrument.md), active managers rely on their research, foresight, and [judgment](../j/judgment.md) to build a portfolio that [will](../w/will.md) achieve better returns. ### Goals and Objectives -The primary goal of active management is to achieve returns that exceed the performance of a [benchmark](../b/benchmark.md) [index](../i/index.md), such as the S&P 500 or the Dow Jones Industrial Average. Active managers aim to [capitalize](../c/capitalize.md) on [market](../m/market.md) inefficiencies by identifying over-valued and under-valued securities. This requires a thorough analysis of individual companies, industries, and macroeconomic conditions to make informed investment decisions. +The primary goal of active management is to achieve returns that exceed the performance of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), such as the S&P 500 or the Dow Jones Industrial Average. Active managers aim to [capitalize](../c/capitalize.md) on [market](../m/market.md) inefficiencies by identifying over-valued and under-valued securities. This requires a thorough analysis of individual companies, industries, and macroeconomic conditions to make informed investment decisions. ### Strategies and Tactics @@ -66,7 +66,7 @@ Many mutual funds are actively managed, with portfolio managers making decisions ### Performance Measurement #### Alpha -[Alpha](../a/alpha.md) measures the [excess return](../e/excess_return.md) of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index.md). Positive [alpha](../a/alpha.md) indicates outperformance, while negative [alpha](../a/alpha.md) indicates underperformance. +[Alpha](../a/alpha.md) measures the [excess return](../e/excess_return.md) of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). Positive [alpha](../a/alpha.md) indicates outperformance, while negative [alpha](../a/alpha.md) indicates underperformance. #### Sharpe Ratio The [Sharpe ratio](../s/sharpe_ratio.md) assesses the performance of an investment compared to a [risk-free asset](../r/risk-free_asset.md), after adjusting for its [risk](../r/risk.md). The higher the [Sharpe ratio](../s/sharpe_ratio.md), the better the [risk-adjusted return](../r/risk-adjusted_return.md). diff --git a/en/pedia/a/active_portfolio_management.md b/en/pedia/a/active_portfolio_management.md index 976dbe34..1dafc3da 100644 --- a/en/pedia/a/active_portfolio_management.md +++ b/en/pedia/a/active_portfolio_management.md @@ -1,11 +1,11 @@ # Active Portfolio Management -Active [portfolio management](../p/portfolio_management.md) is a strategy where the [portfolio manager](../p/portfolio_manager.md) makes specific investments with the goal of outperforming an investment [benchmark](../b/benchmark.md) [index](../i/index.md). This is an ever-evolving practice that involves in-depth [market research](../m/market_research.md), vigilance, and a proactive approach to adjusting the portfolio based on [market](../m/market.md) conditions. The following sections [will](../w/will.md) delve into various aspects of active [portfolio management](../p/portfolio_management.md), providing a comprehensive understanding of its principles, methodologies, and related concepts. +Active [portfolio management](../p/portfolio_management.md) is a strategy where the [portfolio manager](../p/portfolio_manager.md) makes specific investments with the goal of outperforming an investment [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). This is an ever-evolving practice that involves in-depth [market research](../m/market_research.md), vigilance, and a proactive approach to adjusting the portfolio based on [market](../m/market.md) conditions. The following sections [will](../w/will.md) delve into various aspects of active [portfolio management](../p/portfolio_management.md), providing a comprehensive understanding of its principles, methodologies, and related concepts. ## Key Concepts of Active Portfolio Management ### Active vs. Passive Management -[Active management](../a/active_management.md) involves the selection of securities through individual stock picking and other strategies to achieve superior returns compared to a [benchmark](../b/benchmark.md) [index](../i/index.md). On the other hand, passive management requires less intervention after the initial investment, typically tracking a [market index](../m/market_index.md) such as the S&P 500. +[Active management](../a/active_management.md) involves the selection of securities through individual stock picking and other strategies to achieve superior returns compared to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). On the other hand, passive management requires less intervention after the initial investment, typically tracking a [market index](../m/market_index.md) such as the S&P 500. ### The Role of the Portfolio Manager A [portfolio manager](../p/portfolio_manager.md) is responsible for the [active management](../a/active_management.md) of a [fund](../f/fund.md). Their tasks include [market](../m/market.md) analysis, [asset](../a/asset.md) selection, [risk management](../r/risk_management.md), and [portfolio rebalancing](../p/portfolio_rebalancing.md). Successful portfolio managers employ a mix of quantitative and [qualitative analysis](../q/qualitative_analysis.md) to make informed decisions. @@ -43,7 +43,7 @@ Stock picking involves selecting [stocks](../s/stock.md) that are expected to pe [Quantitative models](../q/quantitative_models.md) use statistical techniques and algorithms to predict price movements and make investment decisions. These models can analyze large data sets for patterns and trends. ### Technical Indicators -[Technical indicators](../t/technical_indicators.md) such as Moving Averages, MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)) help managers in making decisions based on historical price and [volume](../v/volume.md) data. +[Technical indicators](../t/technical_indicators.md) such as Moving Averages, MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)) help managers in making decisions based on historical price and [volume](../v/volume.md) data. ### Software and Platforms Several specialized platforms and software assist active managers in data analysis, [backtesting](../b/backtesting.md), and [execution](../e/execution.md) of trades. Some popular ones include [Bloomberg](../b/bloomberg.md) Terminal, Thomson [Reuters](../r/reuters.md) Eikon, and advanced [proprietary trading](../p/proprietary_trading.md) software. @@ -51,7 +51,7 @@ Several specialized platforms and software assist active managers in data analys ## Performance Evaluation ### Benchmarking -Performance evaluation in active [portfolio management](../p/portfolio_management.md) often involves comparison against a [benchmark](../b/benchmark.md) [index](../i/index.md). Common benchmarks include the S&P 500, Dow Jones Industrial Average, and the [Nasdaq](../n/nasdaq.md) Composite. +Performance evaluation in active [portfolio management](../p/portfolio_management.md) often involves comparison against a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). Common benchmarks include the S&P 500, Dow Jones Industrial Average, and the [Nasdaq](../n/nasdaq.md) Composite. ### Risk-adjusted Returns [Risk](../r/risk.md)-adjusted [performance metrics](../p/performance_metrics.md) like [Sharpe ratio](../s/sharpe_ratio.md), [Treynor ratio](../t/treynor_ratio.md), and [Jensen's alpha](../j/jensen's_alpha.md) help in assessing the returns relative to the [risk](../r/risk.md). diff --git a/en/pedia/a/active_return.md b/en/pedia/a/active_return.md index 416a67db..dd8987e3 100644 --- a/en/pedia/a/active_return.md +++ b/en/pedia/a/active_return.md @@ -16,9 +16,9 @@ The result can be positive or negative. A positive active [return](../r/return.m ### Calculation -To calculate active [return](../r/return.md), one must first choose an appropriate [benchmark](../b/benchmark.md). Benchmarks are chosen based on the [investment strategy](../i/investment_strategy.md) and [asset class](../a/asset_class.md) of the portfolio. Common benchmarks include stock indices like the S&P 500, FTSE 100, or [bond](../b/bond.md) indices like the Barclays Aggregate [Bond](../b/bond.md) [Index](../i/index.md). +To calculate active [return](../r/return.md), one must first choose an appropriate [benchmark](../b/benchmark.md). Benchmarks are chosen based on the [investment strategy](../i/investment_strategy.md) and [asset class](../a/asset_class.md) of the portfolio. Common benchmarks include stock indices like the S&P 500, FTSE 100, or [bond](../b/bond.md) indices like the Barclays Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md). -Suppose a portfolio has an [annual return](../a/annual_return.md) of 10%, and the [benchmark](../b/benchmark.md) [index](../i/index.md) has an [annual return](../a/annual_return.md) of 7%. The active [return](../r/return.md) would be: +Suppose a portfolio has an [annual return](../a/annual_return.md) of 10%, and the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) has an [annual return](../a/annual_return.md) of 7%. The active [return](../r/return.md) would be: \[ \text{Active [Return](../r/return.md)} = 10\% - 7\% = 3\% \] diff --git a/en/pedia/a/activities_of_daily_living_(adl).md b/en/pedia/a/activities_of_daily_living_(adl).md index 01ec4f95..5594703d 100644 --- a/en/pedia/a/activities_of_daily_living_(adl).md +++ b/en/pedia/a/activities_of_daily_living_(adl).md @@ -33,8 +33,8 @@ IADLs, on the other hand, are more complex skills necessary for independent livi Assessing ADLs is a critical part of evaluating a patient's functional status. Healthcare professionals use various standardized tools to measure a person's ability to perform ADLs. Some of the common assessment tools include: -1. **Katz [Index](../i/index.md) of Independence in Activities of Daily Living**: Measures the ability to perform six basic functions. -2. **Barthel [Index](../i/index.md)**: Assesses the degree of assistance required by an individual on ten different ADLs. +1. **Katz [Index](../i/index_instrument.md) of Independence in Activities of Daily Living**: Measures the ability to perform six basic functions. +2. **Barthel [Index](../i/index_instrument.md)**: Assesses the degree of assistance required by an individual on ten different ADLs. 3. **Lawton Instrumental Activities of Daily Living Scale**: Evaluates IADLs and can help determine the level of care an individual may need. ## Applications in Healthcare diff --git a/en/pedia/a/addition_rule_for_probabilities.md b/en/pedia/a/addition_rule_for_probabilities.md index 26d96396..674e385d 100644 --- a/en/pedia/a/addition_rule_for_probabilities.md +++ b/en/pedia/a/addition_rule_for_probabilities.md @@ -68,7 +68,7 @@ Algorithmic strategies often incorporate [multiple](../m/multiple.md) signals an ### Example in Algotrading -Consider an [algorithmic trading](../a/accountability.md) strategy that monitors two independent signals to decide on a [trade](../t/trade.md). Let \( A \) be the signal from a moving average crossover strategy, and \( B \) be the signal from a [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI) [indicator](../i/indicator.md). +Consider an [algorithmic trading](../a/accountability.md) strategy that monitors two independent signals to decide on a [trade](../t/trade.md). Let \( A \) be the signal from a moving average crossover strategy, and \( B \) be the signal from a [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI) [indicator](../i/indicator.md). - Event \( A \): Moving average crossover indicates a buy signal (\( P(A) = 0.3 \)) - Event \( B \): RSI indicates a buy signal (\( P(B) = 0.4 \)) diff --git a/en/pedia/a/adjustable-rate_mortgage_(arm).md b/en/pedia/a/adjustable-rate_mortgage_(arm).md index a7d83f3d..87dc30ff 100644 --- a/en/pedia/a/adjustable-rate_mortgage_(arm).md +++ b/en/pedia/a/adjustable-rate_mortgage_(arm).md @@ -1,6 +1,6 @@ # Adjustable-Rate Mortgage (ARM) -An adjustable-rate [mortgage](../m/mortgage.md) (ARM) is a type of [home](../h/home.md) [loan](../l/loan.md) where the [interest rate](../i/interest_rate.md) applied on the outstanding balance varies throughout the life of the [loan](../l/loan.md). This contrasts with a [fixed-rate mortgage](../f/fixed-rate_mortgage.md), where the [interest rate](../i/interest_rate.md) remains constant over the [loan](../l/loan.md) term. ARMs are characterized by an [interest rate](../i/interest_rate.md) that changes periodically—typically in relation to an [index](../i/index.md)—and payments that may go up or down accordingly. Because of this [variability](../v/variability.md), ARMs carry both potential benefits and risks for borrowers. +An adjustable-rate [mortgage](../m/mortgage.md) (ARM) is a type of [home](../h/home.md) [loan](../l/loan.md) where the [interest rate](../i/interest_rate.md) applied on the outstanding balance varies throughout the life of the [loan](../l/loan.md). This contrasts with a [fixed-rate mortgage](../f/fixed-rate_mortgage.md), where the [interest rate](../i/interest_rate.md) remains constant over the [loan](../l/loan.md) term. ARMs are characterized by an [interest rate](../i/interest_rate.md) that changes periodically—typically in relation to an [index](../i/index_instrument.md)—and payments that may go up or down accordingly. Because of this [variability](../v/variability.md), ARMs carry both potential benefits and risks for borrowers. ## How Adjustable-Rate Mortgages Work @@ -11,13 +11,13 @@ ARMs usually begin with an initial period during which the [interest rate](../i/ After the initial fixed-rate period, the ARM enters the adjustment period. During this time, the [interest rate](../i/interest_rate.md) can change at regular intervals, such as every month, every six months, every year, or another specified period, depending on the [loan](../l/loan.md) terms. The adjustment period [will](../w/will.md) continue until the [loan](../l/loan.md) is paid off, sold, or refinanced. ### Index and Margin -The new [interest rate](../i/interest_rate.md) during the adjustment period is determined by adding a [margin](../m/margin.md) to an [index](../i/index.md) rate. Common indices used for ARMs include: +The new [interest rate](../i/interest_rate.md) during the adjustment period is determined by adding a [margin](../m/margin.md) to an [index](../i/index_instrument.md) rate. Common indices used for ARMs include: - **LIBOR (London Interbank Offered Rate)** -- **COFI (Cost of Funds [Index](../i/index.md))** +- **COFI (Cost of Funds [Index](../i/index_instrument.md))** - **CMT (Constant [Maturity](../m/maturity.md) Treasury)** - **SOFR (Secured Overnight [Financing](../f/financing.md) Rate)** -The [margin](../m/margin.md) is a percentage added to the [index](../i/index.md) rate, which remains fixed for the life of the [loan](../l/loan.md). +The [margin](../m/margin.md) is a percentage added to the [index](../i/index_instrument.md) rate, which remains fixed for the life of the [loan](../l/loan.md). ### Rate Caps Rate caps limit how much the [interest rate](../i/interest_rate.md) can change at any adjustment. Typical caps include: diff --git a/en/pedia/a/adjustable_life_insurance.md b/en/pedia/a/adjustable_life_insurance.md index f4702bfa..ef92930e 100644 --- a/en/pedia/a/adjustable_life_insurance.md +++ b/en/pedia/a/adjustable_life_insurance.md @@ -28,7 +28,7 @@ Many adjustable [life insurance](../l/life_insurance.md) policies come with conv Variable [universal life insurance](../u/universal_life_insurance.md) combines the flexible features of [universal life insurance](../u/universal_life_insurance.md) with an investment component. Policyholders can allocate a portion of their [premium](../p/premium.md) payments to a variety of investment [options](../o/options.md) such as [stocks](../s/stock.md), bonds, or mutual funds, allowing for the potential of higher cash [value](../v/value.md) growth. ### 3. Indexed Universal Life Insurance -Indexed [universal life insurance](../u/universal_life_insurance.md) (IUL) policies [offer](../o/offer.md) [premium](../p/premium.md) and [death benefit](../d/death_benefit.md) flexibility, similar to [universal life insurance](../u/universal_life_insurance.md) but with cash [value](../v/value.md) growth linked to a specific [market index](../m/market_index.md). The [interest](../i/interest.md) credited to the cash [value](../v/value.md) depends on the performance of the chosen [index](../i/index.md), usually subject to certain caps and floors. +Indexed [universal life insurance](../u/universal_life_insurance.md) (IUL) policies [offer](../o/offer.md) [premium](../p/premium.md) and [death benefit](../d/death_benefit.md) flexibility, similar to [universal life insurance](../u/universal_life_insurance.md) but with cash [value](../v/value.md) growth linked to a specific [market index](../m/market_index.md). The [interest](../i/interest.md) credited to the cash [value](../v/value.md) depends on the performance of the chosen [index](../i/index_instrument.md), usually subject to certain caps and floors. ## Benefits and Advantages diff --git a/en/pedia/a/advance_decline_line_(a_d).md b/en/pedia/a/advance_decline_line_(a_d).md index e1342927..d6df00a2 100644 --- a/en/pedia/a/advance_decline_line_(a_d).md +++ b/en/pedia/a/advance_decline_line_(a_d).md @@ -1,10 +1,10 @@ # Advance/Decline Line (A/D) -The Advance/Decline Line (A/D Line) is a [technical analysis](../t/technical_analysis.md) tool used to measure the breadth of the [stock market](../s/stock_market.md). It represents the cumulative difference between the number of advancing [stocks](../s/stock.md) and declining [stocks](../s/stock.md) within a given stock [index](../i/index.md). The A/D Line is particularly valuable for determining the general health of the [market](../m/market.md), helping traders and analysts identify bullish or bearish trends. This guide [will](../w/will.md) provide a thorough examination of the A/D Line, its calculation, interpretation, and use in [algorithmic trading](../a/accountability.md). +The Advance/Decline Line (A/D Line) is a [technical analysis](../t/technical_analysis.md) tool used to measure the breadth of the [stock market](../s/stock_market.md). It represents the cumulative difference between the number of advancing [stocks](../s/stock.md) and declining [stocks](../s/stock.md) within a given stock [index](../i/index_instrument.md). The A/D Line is particularly valuable for determining the general health of the [market](../m/market.md), helping traders and analysts identify bullish or bearish trends. This guide [will](../w/will.md) provide a thorough examination of the A/D Line, its calculation, interpretation, and use in [algorithmic trading](../a/accountability.md). ## Definition and Calculation -The A/D Line is calculated daily by taking the difference between the number of advancing (AD) and declining (DD) [stocks](../s/stock.md) in a stock [index](../i/index.md) and adding this [value](../v/value.md) to the previous day's cumulative total. Mathematically, it is expressed as follows: +The A/D Line is calculated daily by taking the difference between the number of advancing (AD) and declining (DD) [stocks](../s/stock.md) in a stock [index](../i/index_instrument.md) and adding this [value](../v/value.md) to the previous day's cumulative total. Mathematically, it is expressed as follows: ``` A/D Line Today = A/D Line Yesterday + (AD - DD) @@ -21,12 +21,12 @@ The result is plotted on a chart to visually represent the cumulative breadth of The A/D Line is an essential [indicator](../i/indicator.md) for evaluating overall [market sentiment](../m/market_sentiment.md). There are several key interpretations: 1. **Confirming Trends:** - - **Bullish [Market](../m/market.md):** If the stock [index](../i/index.md) is rising and the A/D Line is also rising, this indicates broad participation in the [rally](../r/rally.md), confirming a bullish [market sentiment](../m/market_sentiment.md). - - **Bearish [Market](../m/market.md):** If the stock [index](../i/index.md) is falling and the A/D Line is also falling, this suggests widespread participation in the sell-off, confirming a bearish [market sentiment](../m/market_sentiment.md). + - **Bullish [Market](../m/market.md):** If the stock [index](../i/index_instrument.md) is rising and the A/D Line is also rising, this indicates broad participation in the [rally](../r/rally.md), confirming a bullish [market sentiment](../m/market_sentiment.md). + - **Bearish [Market](../m/market.md):** If the stock [index](../i/index_instrument.md) is falling and the A/D Line is also falling, this suggests widespread participation in the sell-off, confirming a bearish [market sentiment](../m/market_sentiment.md). 2. **[Divergence](../d/divergence.md):** - - **Positive [Divergence](../d/divergence.md):** Occurs when the stock [index](../i/index.md) is falling, but the A/D Line is rising, indicating that fewer [stocks](../s/stock.md) are declining, which may precede a [market](../m/market.md) [reversal](../r/reversal.md) to the [upside](../u/upside.md). - - **Negative [Divergence](../d/divergence.md):** Occurs when the stock [index](../i/index.md) is rising, but the A/D Line is falling, suggesting that fewer [stocks](../s/stock.md) are participating in the [rally](../r/rally.md), which could signal a potential [market](../m/market.md) [correction](../c/correction.md). + - **Positive [Divergence](../d/divergence.md):** Occurs when the stock [index](../i/index_instrument.md) is falling, but the A/D Line is rising, indicating that fewer [stocks](../s/stock.md) are declining, which may precede a [market](../m/market.md) [reversal](../r/reversal.md) to the [upside](../u/upside.md). + - **Negative [Divergence](../d/divergence.md):** Occurs when the stock [index](../i/index_instrument.md) is rising, but the A/D Line is falling, suggesting that fewer [stocks](../s/stock.md) are participating in the [rally](../r/rally.md), which could signal a potential [market](../m/market.md) [correction](../c/correction.md). 3. **Breadth Thrust:** - This is a strong and rapid increase in the A/D Line, indicating a sudden increase in the number of advancing [stocks](../s/stock.md), which can be a sign of a [robust](../r/robust.md) bullish [market](../m/market.md). @@ -43,7 +43,7 @@ Algorithms can use the A/D Line to identify broader [market](../m/market.md) tre ### Divergence Detection -Algorithms can be programmed to detect divergences between the stock [index](../i/index.md) and the A/D Line. Advanced [pattern recognition](../p/pattern_recognition.md) techniques, such as machine learning models, can be employed to identify positive or negative divergences automatically and prompt [trade](../t/trade.md) executions based on these signals. +Algorithms can be programmed to detect divergences between the stock [index](../i/index_instrument.md) and the A/D Line. Advanced [pattern recognition](../p/pattern_recognition.md) techniques, such as machine learning models, can be employed to identify positive or negative divergences automatically and prompt [trade](../t/trade.md) executions based on these signals. ### Sentiment Analysis @@ -51,11 +51,11 @@ By analyzing changes in the A/D Line, algorithms can gauge [market sentiment](.. ### Integration with Other Indicators -The A/D Line can be integrated with other [technical indicators](../t/technical_indicator.md), such as [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Averages, or [Bollinger Bands](../b/bollinger_band.md), to create more [robust](../r/robust.md) [trading strategies](../t/trading_strategies.md). For example, a crossover of a moving average of the A/D Line can be used as an additional signal to confirm [trade](../t/trade.md) entries or exits. +The A/D Line can be integrated with other [technical indicators](../t/technical_indicator.md), such as [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Averages, or [Bollinger Bands](../b/bollinger_band.md), to create more [robust](../r/robust.md) [trading strategies](../t/trading_strategies.md). For example, a crossover of a moving average of the A/D Line can be used as an additional signal to confirm [trade](../t/trade.md) entries or exits. ## Real-World Example -Consider a scenario where an algorithm is programmed to [trade](../t/trade.md) the S&P 500 [index](../i/index.md). The algorithm tracks the A/D Line for the S&P 500: +Consider a scenario where an algorithm is programmed to [trade](../t/trade.md) the S&P 500 [index](../i/index_instrument.md). The algorithm tracks the A/D Line for the S&P 500: - When the A/D Line rises above its [50-day moving average](../1/50-day_moving_average.md), the algorithm may initiate or increase long positions, assuming the broader [market](../m/market.md) is healthy. - Conversely, if the A/D Line falls below its [50-day moving average](../1/50-day_moving_average.md), the algorithm may scale back long positions, initiate short positions, or move to cash or defensive assets. diff --git a/en/pedia/a/advanced_technical_analysis.md b/en/pedia/a/advanced_technical_analysis.md index be9e4737..cef2f119 100644 --- a/en/pedia/a/advanced_technical_analysis.md +++ b/en/pedia/a/advanced_technical_analysis.md @@ -33,7 +33,7 @@ Depth of [Market](../m/market.md), often referred to as the [order book](../o/or [Technical indicators](../t/technical_indicators.md) are mathematical calculations based on price, [volume](../v/volume.md), or [open interest](../o/open_interest.md) data. Advanced [technical indicators](../t/technical_indicators.md) help traders to make more informed decisions. Some popular advanced indicators include: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: RSI measures the speed and change of price movements, ranging from 0 to 100. A [value](../v/value.md) above 70 typically indicates [overbought](../o/overbought.md) conditions, while a [value](../v/value.md) below 30 suggests [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: RSI measures the speed and change of price movements, ranging from 0 to 100. A [value](../v/value.md) above 70 typically indicates [overbought](../o/overbought.md) conditions, while a [value](../v/value.md) below 30 suggests [oversold](../o/oversold.md) conditions. - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: MACD is a [trend](../t/trend.md)-following [momentum](../m/momentum.md) [indicator](../i/indicator.md) that shows the relationship between two moving averages. The MACD line is the difference between a 26-period and 12-period EMA, and the signal line is a 9-period EMA of the MACD line. - **[Bollinger Bands](../b/bollinger_bands.md)**: [Bollinger Bands](../b/bollinger_bands.md) consist of a middle band (a simple moving average) and an upper and lower band (standard deviations from the middle band). They provide a visual representation of [volatility](../v/volatility.md) and potential price breakouts. diff --git a/en/pedia/a/after-tax_contribution.md b/en/pedia/a/after-tax_contribution.md index 5edf070f..75167b47 100644 --- a/en/pedia/a/after-tax_contribution.md +++ b/en/pedia/a/after-tax_contribution.md @@ -49,7 +49,7 @@ Some 401(k) plans allow for mega back-door Roth contributions. This involves mak After-tax contributions, particularly to Roth accounts, can also play a vital role in [estate planning](../e/estate_planning.md). Beneficiaries inheriting Roth accounts can receive [tax-free](../t/tax_free.md) [income](../i/income.md), which can be a favorable [estate planning](../e/estate_planning.md) tool. ### Investment Choices -When it comes to investment accounts funded with after-tax contributions like brokerage accounts, tax-efficient [fund](../f/fund.md) selection is critical. [Index](../i/index.md) funds and ETFs, which generally have lower [turnover](../t/turnover.md) and thus generate fewer taxable events, are often considered more tax-efficient. +When it comes to investment accounts funded with after-tax contributions like brokerage accounts, tax-efficient [fund](../f/fund.md) selection is critical. [Index](../i/index_instrument.md) funds and ETFs, which generally have lower [turnover](../t/turnover.md) and thus generate fewer taxable events, are often considered more tax-efficient. ## Taxes and After-Tax Contributions diff --git a/en/pedia/a/after-tax_real_rate_of_return.md b/en/pedia/a/after-tax_real_rate_of_return.md index a34615f1..40e43675 100644 --- a/en/pedia/a/after-tax_real_rate_of_return.md +++ b/en/pedia/a/after-tax_real_rate_of_return.md @@ -79,7 +79,7 @@ Investments like Treasury [Inflation-Protected Securities](../i/inflation-protec [Investing](../i/investing.md) in international markets may [offer](../o/offer.md) tax advantages and [hedge](../h/hedge.md) against domestic [inflation](../i/inflation.md), potentially improving the after-tax [real rate of return](../r/real_rate_of_return.md). ### Managing Investment Costs -Keeping investment costs low through [passive investing](../p/passive_investing.md) or using low-cost [index](../i/index.md) funds can enhance the after-tax [real rate of return](../r/real_rate_of_return.md) by reducing the impact of fees and expenses. +Keeping investment costs low through [passive investing](../p/passive_investing.md) or using low-cost [index](../i/index_instrument.md) funds can enhance the after-tax [real rate of return](../r/real_rate_of_return.md) by reducing the impact of fees and expenses. ## Conclusion diff --git a/en/pedia/a/aggressive_investment_strategy.md b/en/pedia/a/aggressive_investment_strategy.md index 2b28a10d..e238bdfd 100644 --- a/en/pedia/a/aggressive_investment_strategy.md +++ b/en/pedia/a/aggressive_investment_strategy.md @@ -53,7 +53,7 @@ An aggressive [investment strategy](../i/investment_strategy.md) is not without Cryptocurrencies like [Bitcoin](../b/bitcoin.md) and [Ethereum](../e/ethereum_.md) have shown substantial growth but are also known for their extreme [volatility](../v/volatility.md). Aggressive investors might allocate part of their portfolio to these digital assets. ### 4. **Leveraged ETFs** - [Leveraged ETFs](../l/leveraged_etfs.md) use [financial derivatives](../f/financial_derivatives.md) and [debt](../d/debt.md) to amplify the returns of an [underlying](../u/underlying.md) [index](../i/index.md). While they can provide substantial gains, they also come with higher [risk](../r/risk.md) compared to non-[leveraged ETFs](../l/leveraged_etfs.md). + [Leveraged ETFs](../l/leveraged_etfs.md) use [financial derivatives](../f/financial_derivatives.md) and [debt](../d/debt.md) to amplify the returns of an [underlying](../u/underlying.md) [index](../i/index_instrument.md). While they can provide substantial gains, they also come with higher [risk](../r/risk.md) compared to non-[leveraged ETFs](../l/leveraged_etfs.md). ## Managing an Aggressive Investment Portfolio diff --git a/en/pedia/a/algorithm_design.md b/en/pedia/a/algorithm_design.md index a84107fc..72bf866b 100644 --- a/en/pedia/a/algorithm_design.md +++ b/en/pedia/a/algorithm_design.md @@ -17,7 +17,7 @@ Statistical [arbitrage](../a/arbitrage.md) strategies [leverage](../l/leverage.m - **Pair Trading:** This involves identifying pairs of highly correlated [stocks](../s/stock.md) and placing simultaneous long and short positions. The strategy profits from the assumption that any [divergence](../d/divergence.md) in their prices [will](../w/will.md) revert to the mean. - **[Market Neutral](../m/market_neutral.md):** These strategies aim to remove [market risk](../m/market_risk.md) by taking both long and short positions in related assets, seeking to [profit](../p/profit.md) purely from the price differentials. -- **[Index](../i/index.md) [Arbitrage](../a/arbitrage.md):** This type of strategy exploits discrepancies between the prices of [index futures](../i/index_futures.md) and the constituent [stocks](../s/stock.md) in the [underlying](../u/underlying.md) [index](../i/index.md). +- **[Index](../i/index_instrument.md) [Arbitrage](../a/arbitrage.md):** This type of strategy exploits discrepancies between the prices of [index futures](../i/index_futures.md) and the constituent [stocks](../s/stock.md) in the [underlying](../u/underlying.md) [index](../i/index_instrument.md). ### 3. **Machine Learning Algorithms** Machine [learning algorithms](../l/learning_algorithms_in_trading.md) have gained significant traction in [algorithmic trading](../a/algorithmic_trading.md) due to their ability to learn from and adapt to new data. Some approaches include: diff --git a/en/pedia/a/algorithmic_etf_trading.md b/en/pedia/a/algorithmic_etf_trading.md index 955a8017..ccd1a661 100644 --- a/en/pedia/a/algorithmic_etf_trading.md +++ b/en/pedia/a/algorithmic_etf_trading.md @@ -7,7 +7,7 @@ [Algorithmic trading](../a/algorithmic_trading.md) involves the use of complex algorithms to make trading decisions, execute orders, and manage risks. Initially developed for high-frequency trading (HFT), algos now cover a broad spectrum of strategies—ranging from [arbitrage](../a/arbitrage.md) to [momentum trading](../m/momentum_trading.md). These algorithms can process vast amounts of [market](../m/market.md) data at speeds unattainable by humans, enabling traders to exploit [market](../m/market.md) inefficiencies quickly and effectively. ### ETFs: A Brief Introduction -An [Exchange](../e/exchange.md)-Traded [Fund](../f/fund.md) (ETF) is a marketable [security](../s/security.md) that tracks an [index](../i/index.md), a [commodity](../c/commodity.md), bonds, or a basket of assets. Unlike mutual funds, ETFs [trade](../t/trade.md) on stock exchanges much like individual [stocks](../s/stock.md). They [offer](../o/offer.md) diversified exposure, typically at a lower cost compared to other investment vehicles. Some popular ETFs include SPDR S&P 500 ETF (SPY), Invesco QQQ [Trust](../t/trust.md) (QQQ), and Vanguard Total [Stock Market](../s/stock_market.md) ETF (VTI). +An [Exchange](../e/exchange.md)-Traded [Fund](../f/fund.md) (ETF) is a marketable [security](../s/security.md) that tracks an [index](../i/index_instrument.md), a [commodity](../c/commodity.md), bonds, or a basket of assets. Unlike mutual funds, ETFs [trade](../t/trade.md) on stock exchanges much like individual [stocks](../s/stock.md). They [offer](../o/offer.md) diversified exposure, typically at a lower cost compared to other investment vehicles. Some popular ETFs include SPDR S&P 500 ETF (SPY), Invesco QQQ [Trust](../t/trust.md) (QQQ), and Vanguard Total [Stock Market](../s/stock_market.md) ETF (VTI). ### How Algorithmic Trading Applies to ETFs [Algorithmic trading](../a/algorithmic_trading.md) can significantly enhance the [efficiency](../e/efficiency.md) and effectiveness of trading ETFs. The application involves several sophisticated techniques and strategies, explained below: diff --git a/en/pedia/a/algorithmic_forex_trading.md b/en/pedia/a/algorithmic_forex_trading.md index 83cae640..d855bd97 100644 --- a/en/pedia/a/algorithmic_forex_trading.md +++ b/en/pedia/a/algorithmic_forex_trading.md @@ -27,7 +27,7 @@ These strategies aim to [capitalize](../c/capitalize.md) on the [market](../m/ma **Examples:** - Moving Average Crossover -- [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) +- [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) ### Arbitrage Strategies diff --git a/en/pedia/a/algorithmic_futures_trading.md b/en/pedia/a/algorithmic_futures_trading.md index 1100ef24..d547c00d 100644 --- a/en/pedia/a/algorithmic_futures_trading.md +++ b/en/pedia/a/algorithmic_futures_trading.md @@ -25,7 +25,7 @@ In the context of [futures](../f/futures.md) trading, algorithms are utilized to ### Types of Algorithmic Strategies in Futures Trading 1. **[Trend Following](../t/trend_following.md)**: This strategy involves creating algorithms that identify and follow [market](../m/market.md) trends. The idea is to buy [futures contracts](../f/futures_contracts.md) when prices are rising and sell them when prices are falling. Tools like moving averages, [momentum indicators](../m/momentum_indicators.md), and [breakout](../b/breakout.md) signals are commonly used. -2. **[Arbitrage](../a/arbitrage.md)**: [Arbitrage](../a/arbitrage.md) strategies exploit price discrepancies between different markets or instruments. An example is [index](../i/index.md) [arbitrage](../a/arbitrage.md), where an algorithm might buy constituent [stocks](../s/stock.md) and sell [futures](../f/futures.md) of a corresponding [index](../i/index.md) simultaneously. +2. **[Arbitrage](../a/arbitrage.md)**: [Arbitrage](../a/arbitrage.md) strategies exploit price discrepancies between different markets or instruments. An example is [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md), where an algorithm might buy constituent [stocks](../s/stock.md) and sell [futures](../f/futures.md) of a corresponding [index](../i/index_instrument.md) simultaneously. 3. **[Market](../m/market.md) Making**: [Market](../m/market.md)-making algorithms place buy and sell orders simultaneously to [profit](../p/profit.md) from the [bid-ask spread](../b/bid-ask_spread.md). These algorithms continuously update their quotes based on [market](../m/market.md) conditions. 4. **Statistical [Arbitrage](../a/arbitrage.md)**: This involves complex [mathematical models](../m/mathematical_models_in_trading.md) to find price inefficiencies and statistical relationships between different instruments. Algorithms [will](../w/will.md) simultaneously exploit these inefficiencies by taking opposing positions. 5. **High-Frequency Trading (HFT)**: These strategies involve executing thousands of trades per second to take advantage of minute price changes. HFT requires sophisticated [infrastructure](../i/infrastructure.md) and low-latency [execution](../e/execution.md) capabilities. diff --git a/en/pedia/a/algorithmic_options_trading.md b/en/pedia/a/algorithmic_options_trading.md index 2263a313..981243db 100644 --- a/en/pedia/a/algorithmic_options_trading.md +++ b/en/pedia/a/algorithmic_options_trading.md @@ -1,6 +1,6 @@ # Algorithmic Options Trading -Algorithmic [options](../o/options.md) trading refers to the use of computer algorithms to [trade](../t/trade.md) [options](../o/options.md). [Options](../o/options.md) are financial [derivatives](../d/derivatives.md) that give the buyer the right, but not the obligation, to buy or sell an [underlying asset](../u/underlying_asset.md) at a specified price on or before a specified date. The [underlying asset](../u/underlying_asset.md) could be a stock, [commodity](../c/commodity.md), [index](../i/index.md), or other [financial instrument](../f/financial_instrument.md). [Algorithmic trading](../a/algorithmic_trading.md) involves the use of advanced [mathematical models](../m/mathematical_models_in_trading.md), automation, and computers to execute trades at high speeds and volumes that would be impossible for a human [trader](../t/trader.md) to [handle](../h/handle.md). +Algorithmic [options](../o/options.md) trading refers to the use of computer algorithms to [trade](../t/trade.md) [options](../o/options.md). [Options](../o/options.md) are financial [derivatives](../d/derivatives.md) that give the buyer the right, but not the obligation, to buy or sell an [underlying asset](../u/underlying_asset.md) at a specified price on or before a specified date. The [underlying asset](../u/underlying_asset.md) could be a stock, [commodity](../c/commodity.md), [index](../i/index_instrument.md), or other [financial instrument](../f/financial_instrument.md). [Algorithmic trading](../a/algorithmic_trading.md) involves the use of advanced [mathematical models](../m/mathematical_models_in_trading.md), automation, and computers to execute trades at high speeds and volumes that would be impossible for a human [trader](../t/trader.md) to [handle](../h/handle.md). ## Key Concepts of Algorithmic Options Trading diff --git a/en/pedia/a/algorithmic_trading_in_commodities_markets.md b/en/pedia/a/algorithmic_trading_in_commodities_markets.md index dffe5fae..02aec770 100644 --- a/en/pedia/a/algorithmic_trading_in_commodities_markets.md +++ b/en/pedia/a/algorithmic_trading_in_commodities_markets.md @@ -34,7 +34,7 @@ Statistical [arbitrage](../a/arbitrage.md) strategies involve trading commoditie [Trend following](../t/trend_following.md) strategies [capitalize](../c/capitalize.md) on the [momentum](../m/momentum.md) of [commodity](../c/commodity.md) prices. Algorithms are designed to detect trends and execute trades in the direction of the [trend](../t/trend.md). Common indicators used in [trend](../t/trend.md)-following include: 1. **Moving Averages**: Simple Moving Averages (SMA) and Exponential Moving Averages (EMA) are used to identify the direction of the [trend](../t/trend.md). -2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: An [oscillator](../o/oscillator.md) that measures the speed and change of price movements. +2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: An [oscillator](../o/oscillator.md) that measures the speed and change of price movements. ### Market Making diff --git a/en/pedia/a/algorithmic_trading_in_forex_markets.md b/en/pedia/a/algorithmic_trading_in_forex_markets.md index 10abc6be..b5d9cb69 100644 --- a/en/pedia/a/algorithmic_trading_in_forex_markets.md +++ b/en/pedia/a/algorithmic_trading_in_forex_markets.md @@ -39,7 +39,7 @@ Forex [algorithmic trading](../a/algorithmic_trading.md) involves the use of com 3. **[Market](../m/market.md) Making**: Provides [liquidity](../l/liquidity.md) by placing buy and sell orders and profiting from the spread. 4. **[Mean Reversion](../m/mean_reversion.md)**: Assumes that prices [will](../w/will.md) revert to their historical averages. - [Bollinger Bands](../b/bollinger_bands.md) - - [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) + - [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) 5. **High-Frequency Trading (HFT)**: Executes a large number of orders within very short time frames to exploit small price discrepancies. 6. **News-Based Trading**: Uses [natural language processing](../n/natural_language_processing_(nlp)_in_trading.md) (NLP) to analyze and react to news events. diff --git a/en/pedia/a/algorithmic_trading_strategies.md b/en/pedia/a/algorithmic_trading_strategies.md index 643bd0e8..d0c07a99 100644 --- a/en/pedia/a/algorithmic_trading_strategies.md +++ b/en/pedia/a/algorithmic_trading_strategies.md @@ -8,7 +8,7 @@ - **Channel Breakouts**: In this strategy, a buy [order](../o/order.md) is triggered when the price breaks above a predetermined resistance level, while a sell [order](../o/order.md) is flagged when it drops below a support level. The Donchian Channel is a quintessential example of this strategy. -- **[Momentum Indicators](../m/momentum_indicators.md)**: These indicators measure the velocity of price movements. Popular ones include the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) and the Moving Average Convergence [Divergence](../d/divergence.md) (MACD). +- **[Momentum Indicators](../m/momentum_indicators.md)**: These indicators measure the velocity of price movements. Popular ones include the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) and the Moving Average Convergence [Divergence](../d/divergence.md) (MACD). ## 2. Mean Reversion Strategies diff --git a/en/pedia/a/algorithmic_trading_with_matlab.md b/en/pedia/a/algorithmic_trading_with_matlab.md index 3dc57967..c81d27ee 100644 --- a/en/pedia/a/algorithmic_trading_with_matlab.md +++ b/en/pedia/a/algorithmic_trading_with_matlab.md @@ -42,7 +42,7 @@ MATLAB provides functions such as `readtable`, `readcsv`, and `fetch` to [import The development of [trading strategies](../t/trading_strategies.md) can be based on [multiple](../m/multiple.md) approaches such as: 1. **Statistical Analysis**: Using [mean reversion](../m/mean_reversion.md), pair trading, and cointegration tests. -2. **[Technical Analysis](../t/technical_analysis.md)**: Applying indicators like Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), [Bollinger Bands](../b/bollinger_bands.md), etc. +2. **[Technical Analysis](../t/technical_analysis.md)**: Applying indicators like Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), [Bollinger Bands](../b/bollinger_bands.md), etc. 3. **Machine Learning**: Implementing supervised and unsupervised learning models for predictive analysis and classification. MATLAB's comprehensive libraries and toolboxes such as [Statistics](../s/statistics.md) and Machine Learning Toolbox make it convenient to build and refine these strategies. diff --git a/en/pedia/a/alpha-beta_separation.md b/en/pedia/a/alpha-beta_separation.md index 7959376e..7f24aef3 100644 --- a/en/pedia/a/alpha-beta_separation.md +++ b/en/pedia/a/alpha-beta_separation.md @@ -22,7 +22,7 @@ Conversely, [alpha](../a/alpha.md) is the portion of the [return](../r/return.md The primary application of [Alpha](../a/alpha.md)-[Beta](../b/beta.md) Separation involves decomposing a portfolio’s returns into [alpha](../a/alpha.md) and [beta](../b/beta.md) components. This method provides a clear understanding of the gains attributable to [market](../m/market.md) movements versus those achieved through [active management](../a/active_management.md). Algorithmic strategies can be tailored to either component: -- **[Beta](../b/beta.md)-Focused Strategies**: These aim to capture broad [market](../m/market.md) returns efficiently. [Index](../i/index.md) funds and ETFs are typical [beta](../b/beta.md)-focused instruments. +- **[Beta](../b/beta.md)-Focused Strategies**: These aim to capture broad [market](../m/market.md) returns efficiently. [Index](../i/index_instrument.md) funds and ETFs are typical [beta](../b/beta.md)-focused instruments. - **[Alpha](../a/alpha.md)-Focused Strategies**: These seek returns independent of [market](../m/market.md) movements through techniques such as [market timing](../m/market_timing.md), [security selection](../s/security_selection.md), or [arbitrage](../a/arbitrage.md). #### 2. Improved Risk Management diff --git a/en/pedia/a/alpha.md b/en/pedia/a/alpha.md index ebbbd6b5..c2ccdad8 100644 --- a/en/pedia/a/alpha.md +++ b/en/pedia/a/alpha.md @@ -2,7 +2,7 @@ ## Introduction to Alpha -Alpha represents the [excess return](../e/excess_return.md) on an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index.md). It is a crucial concept in [financial markets](../f/financial_market.md) and investment performance analysis. In the context of [algorithmic trading](../a/accountability.md) (algotrading), alpha signifies strategies that can generate returns above the [market](../m/market.md) average through the application of sophisticated [mathematical models](../m/mathematical_models_in_trading.md) and statistical techniques. +Alpha represents the [excess return](../e/excess_return.md) on an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). It is a crucial concept in [financial markets](../f/financial_market.md) and investment performance analysis. In the context of [algorithmic trading](../a/accountability.md) (algotrading), alpha signifies strategies that can generate returns above the [market](../m/market.md) average through the application of sophisticated [mathematical models](../m/mathematical_models_in_trading.md) and statistical techniques. ## Calculation of Alpha diff --git a/en/pedia/a/alpha_generation.md b/en/pedia/a/alpha_generation.md index 90cbc749..196664aa 100644 --- a/en/pedia/a/alpha_generation.md +++ b/en/pedia/a/alpha_generation.md @@ -4,7 +4,7 @@ ## What is Alpha? -[Alpha](../a/alpha.md), often symbolized by the Greek letter α, is a measure of an investment's performance on a [risk](../r/risk.md)-adjusted [basis](../b/basis.md). It represents the [excess return](../e/excess_return.md) of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index.md), such as the S&P 500. If an investment outperforms the [market](../m/market.md), it has a positive [alpha](../a/alpha.md); conversely, if it underperforms, it has a negative [alpha](../a/alpha.md). +[Alpha](../a/alpha.md), often symbolized by the Greek letter α, is a measure of an investment's performance on a [risk](../r/risk.md)-adjusted [basis](../b/basis.md). It represents the [excess return](../e/excess_return.md) of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), such as the S&P 500. If an investment outperforms the [market](../m/market.md), it has a positive [alpha](../a/alpha.md); conversely, if it underperforms, it has a negative [alpha](../a/alpha.md). ## The Importance of Alpha in Algorithmic Trading diff --git a/en/pedia/a/amalgamation.md b/en/pedia/a/amalgamation.md index d173711c..518eb535 100644 --- a/en/pedia/a/amalgamation.md +++ b/en/pedia/a/amalgamation.md @@ -6,7 +6,7 @@ Amalgamation in the context of [algorithmic trading](../a/accountability.md) ref 1.1 **[Trend Following Strategies](../t/trend_following_strategies.md)** -[Trend following strategies](../t/trend_following_strategies.md) aim to [capitalize](../c/capitalize.md) on the continuation of existing [market](../m/market.md) trends. These algorithms typically use [technical indicators](../t/technical_indicator.md) like moving averages, the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and the [Average Directional Index](../a/average_directional_index_(adx).md) (ADX) to identify trends. A common [trend](../t/trend.md)-following strategy is the moving average crossover, where a shorter-term moving average crossing above a longer-term moving average signals a buy, and vice versa for a sell. +[Trend following strategies](../t/trend_following_strategies.md) aim to [capitalize](../c/capitalize.md) on the continuation of existing [market](../m/market.md) trends. These algorithms typically use [technical indicators](../t/technical_indicator.md) like moving averages, the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and the [Average Directional Index](../a/average_directional_index_(adx).md) (ADX) to identify trends. A common [trend](../t/trend.md)-following strategy is the moving average crossover, where a shorter-term moving average crossing above a longer-term moving average signals a buy, and vice versa for a sell. 1.2 **[Mean Reversion](../m/mean_reversion.md) Strategies** diff --git a/en/pedia/a/amman_stock_exchange_(ase).md b/en/pedia/a/amman_stock_exchange_(ase).md index 4ed6736c..027bc2eb 100644 --- a/en/pedia/a/amman_stock_exchange_(ase).md +++ b/en/pedia/a/amman_stock_exchange_(ase).md @@ -59,8 +59,8 @@ For a company to be [listed](../l/listed.md) on the ASE, it must adhere to strin The ASE maintains several indices to measure [market](../m/market.md) performance. These indices serve as benchmarks for [market](../m/market.md) trends and [investor](../i/investor.md) sentiment: -- **ASE General [Index](../i/index.md):** Reflects the overall [market](../m/market.md) performance, considering companies across all sectors. -- **ASE20 [Index](../i/index.md):** Contains the top 20 companies by [market capitalization](../m/market_capitalization.md) and [liquidity](../l/liquidity.md). +- **ASE General [Index](../i/index_instrument.md):** Reflects the overall [market](../m/market.md) performance, considering companies across all sectors. +- **ASE20 [Index](../i/index_instrument.md):** Contains the top 20 companies by [market capitalization](../m/market_capitalization.md) and [liquidity](../l/liquidity.md). ## Technology and Innovation @@ -84,7 +84,7 @@ The ASE has a diverse [range](../r/range.md) of companies across various sectors ## Market Performance -The performance of the ASE reflects the [economic conditions](../e/economic_conditions.md) and [investor](../i/investor.md) sentiments within Jordan. [Market](../m/market.md) performance is regularly monitored through trading volumes, [market capitalization](../m/market_capitalization.md), and [index](../i/index.md) movements. +The performance of the ASE reflects the [economic conditions](../e/economic_conditions.md) and [investor](../i/investor.md) sentiments within Jordan. [Market](../m/market.md) performance is regularly monitored through trading volumes, [market capitalization](../m/market_capitalization.md), and [index](../i/index_instrument.md) movements. ### Recent Statistics diff --git a/en/pedia/a/amsterdam_stock_exchange_(aex).md b/en/pedia/a/amsterdam_stock_exchange_(aex).md index 54010a81..160266a0 100644 --- a/en/pedia/a/amsterdam_stock_exchange_(aex).md +++ b/en/pedia/a/amsterdam_stock_exchange_(aex).md @@ -82,15 +82,15 @@ The [exchange](../e/exchange.md) operates under stringent regulatory oversight t ### AEX Index -The AEX [Index](../i/index.md) is the leading stock [market index](../m/market_index.md) for [Euronext Amsterdam](../e/euronext_amsterdam.md), comprising the 25 largest and most frequently traded companies [listed](../l/listed.md) on the [exchange](../e/exchange.md). It serves as a [benchmark](../b/benchmark.md) for the Dutch [stock market](../s/stock_market.md) and includes blue-chip companies like Royal Dutch Shell, Unilever, and ING Group. +The AEX [Index](../i/index_instrument.md) is the leading stock [market index](../m/market_index.md) for [Euronext Amsterdam](../e/euronext_amsterdam.md), comprising the 25 largest and most frequently traded companies [listed](../l/listed.md) on the [exchange](../e/exchange.md). It serves as a [benchmark](../b/benchmark.md) for the Dutch [stock market](../s/stock_market.md) and includes blue-chip companies like Royal Dutch Shell, Unilever, and ING Group. -For more information on the AEX [Index](../i/index.md) and [Euronext](../e/euronext.md), you can visit their official website: [Euronext](https://www.euronext.com/en/markets/amsterdam) +For more information on the AEX [Index](../i/index_instrument.md) and [Euronext](../e/euronext.md), you can visit their official website: [Euronext](https://www.euronext.com/en/markets/amsterdam) ### Other Indices -- **AMX [Index](../i/index.md)**: [Mid-cap](../m/mid-cap.md) [index](../i/index.md), tracking the 25 next largest companies after those in the AEX. -- **ASCX [Index](../i/index.md)**: Small-cap [index](../i/index.md), comprising smaller companies. -- **AEX ESG [Index](../i/index.md)**: Focuses on companies with strong ESG performance. +- **AMX [Index](../i/index_instrument.md)**: [Mid-cap](../m/mid-cap.md) [index](../i/index_instrument.md), tracking the 25 next largest companies after those in the AEX. +- **ASCX [Index](../i/index_instrument.md)**: Small-cap [index](../i/index_instrument.md), comprising smaller companies. +- **AEX ESG [Index](../i/index_instrument.md)**: Focuses on companies with strong ESG performance. ## Listings and IPOs diff --git a/en/pedia/a/annualized_rate_of_return.md b/en/pedia/a/annualized_rate_of_return.md index 5c081763..5af29b43 100644 --- a/en/pedia/a/annualized_rate_of_return.md +++ b/en/pedia/a/annualized_rate_of_return.md @@ -62,7 +62,7 @@ By incorporating annualized returns, the [Sharpe Ratio](../s/sharpe_ratio.md) fa ### Performance Benchmarking -For algorithmic traders, benchmarking their algorithms' performance against established indices or benchmarks, such as the S&P 500 or a specific sector [index](../i/index.md), is essential. Annualized returns of a [trading strategy](../t/trading_strategy.md) can be directly compared to those of benchmarks to determine relative performance. This comparison aids in identifying the efficacy and [efficiency](../e/efficiency.md) of the algorithmic models. +For algorithmic traders, benchmarking their algorithms' performance against established indices or benchmarks, such as the S&P 500 or a specific sector [index](../i/index_instrument.md), is essential. Annualized returns of a [trading strategy](../t/trading_strategy.md) can be directly compared to those of benchmarks to determine relative performance. This comparison aids in identifying the efficacy and [efficiency](../e/efficiency.md) of the algorithmic models. ## Practical Applications of Annualized Rate of Return diff --git a/en/pedia/a/annualized_total_return.md b/en/pedia/a/annualized_total_return.md index b7399078..f4f8e38b 100644 --- a/en/pedia/a/annualized_total_return.md +++ b/en/pedia/a/annualized_total_return.md @@ -41,7 +41,7 @@ While the annualized [total return](../t/total_return.md) is particularly useful Several well-known financial institutions and [asset management](../a/asset_management.md) companies illustrate the application and reporting of annualized total returns: ### BlackRock -[BlackRock](https://www.blackrock.com) is a premier global [investment management](../i/investment_management.md) [corporation](../c/corporation.md) often reporting annualized total returns for various funds, such as ETFs and [index](../i/index.md) funds, providing [transparency](../t/transparency.md) and performance consistency to their investors. +[BlackRock](https://www.blackrock.com) is a premier global [investment management](../i/investment_management.md) [corporation](../c/corporation.md) often reporting annualized total returns for various funds, such as ETFs and [index](../i/index_instrument.md) funds, providing [transparency](../t/transparency.md) and performance consistency to their investors. ### Vanguard [Vanguard](https://investor.vanguard.com) frequently publishes annualized total returns for its wide array of mutual funds and ETFs, allowing investors to compare various funds' performance over standard periods, usually 1-year, 5-year, and 10-year timeframes. diff --git a/en/pedia/a/annuitization.md b/en/pedia/a/annuitization.md index 9c2731f8..b34ea6d9 100644 --- a/en/pedia/a/annuitization.md +++ b/en/pedia/a/annuitization.md @@ -24,7 +24,7 @@ Variable annuities provide payments that can vary based on the performance of th ### Indexed Annuities -Indexed annuities are linked to a [market index](../m/market_index.md), such as the S&P 500. Payments and account [value](../v/value.md) can increase based on the [index](../i/index.md)'s performance, [offering](../o/offering.md) a balance between growth potential and [risk](../r/risk.md). +Indexed annuities are linked to a [market index](../m/market_index.md), such as the S&P 500. Payments and account [value](../v/value.md) can increase based on the [index](../i/index_instrument.md)'s performance, [offering](../o/offering.md) a balance between growth potential and [risk](../r/risk.md). ### Life Annuities diff --git a/en/pedia/a/anti-martingale_strategy.md b/en/pedia/a/anti-martingale_strategy.md index 50c28537..e5cae0c1 100644 --- a/en/pedia/a/anti-martingale_strategy.md +++ b/en/pedia/a/anti-martingale_strategy.md @@ -36,7 +36,7 @@ Define the initial [capital allocation](../c/capital_allocation.md) and the base ### Step 2: Identifying Trend -Utilizing [technical analysis](../t/technical_analysis.md) tools, such as moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), or the MACD, the [trader](../t/trader.md) identifies prevailing [market](../m/market.md) trends to decide whether to scale in or out of positions. +Utilizing [technical analysis](../t/technical_analysis.md) tools, such as moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), or the MACD, the [trader](../t/trader.md) identifies prevailing [market](../m/market.md) trends to decide whether to scale in or out of positions. ### Step 3: Adjusting Position Sizes diff --git a/en/pedia/a/aptitude_test.md b/en/pedia/a/aptitude_test.md index 62bd910a..62841ea6 100644 --- a/en/pedia/a/aptitude_test.md +++ b/en/pedia/a/aptitude_test.md @@ -54,7 +54,7 @@ Effective [risk management](../r/risk_management.md) is crucial in algorithmic t - **[Sharpe Ratio](../s/sharpe_ratio.md)**: Measures the [risk-adjusted return](../r/risk-adjusted_return.md) of a strategy. - **[Drawdown](../d/drawdown.md)**: Quantifies the peak-to-[trough](../t/trough.md) decline in the [value](../v/value.md) of an investment. -- **[Alpha](../a/alpha.md)**: Indicates the [excess return](../e/excess_return.md) of a strategy compared to a [benchmark](../b/benchmark.md) [index](../i/index.md). +- **[Alpha](../a/alpha.md)**: Indicates the [excess return](../e/excess_return.md) of a strategy compared to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). - **[Beta](../b/beta.md)**: Measures the [volatility](../v/volatility.md) of a strategy relative to the [market](../m/market.md). ### 6. **Regulation and Compliance** diff --git a/en/pedia/a/arbitrage_in_credit_default_swaps.md b/en/pedia/a/arbitrage_in_credit_default_swaps.md index a067f92f..84877125 100644 --- a/en/pedia/a/arbitrage_in_credit_default_swaps.md +++ b/en/pedia/a/arbitrage_in_credit_default_swaps.md @@ -40,7 +40,7 @@ Curve [arbitrage](../a/arbitrage.md) involves exploiting anomalies in the term s ### Index Arbitrage -[Index](../i/index.md) [arbitrage](../a/arbitrage.md) involves trading between CDS indices (like the Markit CDX or iTraxx) and their constituent single-name CDSs. Mispricings between the composite [index](../i/index.md) and the individual CDSs can provide [arbitrage](../a/arbitrage.md) opportunities. +[Index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) involves trading between CDS indices (like the Markit CDX or iTraxx) and their constituent single-name CDSs. Mispricings between the composite [index](../i/index_instrument.md) and the individual CDSs can provide [arbitrage](../a/arbitrage.md) opportunities. ### Capital Structure Arbitrage diff --git a/en/pedia/a/arbitrage_in_index_futures.md b/en/pedia/a/arbitrage_in_index_futures.md index 11ec9eab..99955680 100644 --- a/en/pedia/a/arbitrage_in_index_futures.md +++ b/en/pedia/a/arbitrage_in_index_futures.md @@ -6,14 +6,14 @@ ### What are Index Futures? -[Index futures](../i/index_futures.md) are financial [derivatives](../d/derivatives.md) whose [value](../v/value.md) is based on an [underlying](../u/underlying.md) stock [index](../i/index.md), such as the S&P 500, [Nasdaq](../n/nasdaq.md) 100, or Dow Jones Industrial Average. These [futures contracts](../f/futures_contracts.md) allow investors to buy or sell a specific quantity of an [index](../i/index.md) at a predetermined price on a future date. [Index futures](../i/index_futures.md) are widely used by investors and traders for hedging, [speculation](../s/speculation.md), and [arbitrage](../a/arbitrage.md) purposes. +[Index futures](../i/index_futures.md) are financial [derivatives](../d/derivatives.md) whose [value](../v/value.md) is based on an [underlying](../u/underlying.md) stock [index](../i/index_instrument.md), such as the S&P 500, [Nasdaq](../n/nasdaq.md) 100, or Dow Jones Industrial Average. These [futures contracts](../f/futures_contracts.md) allow investors to buy or sell a specific quantity of an [index](../i/index_instrument.md) at a predetermined price on a future date. [Index futures](../i/index_futures.md) are widely used by investors and traders for hedging, [speculation](../s/speculation.md), and [arbitrage](../a/arbitrage.md) purposes. ### Key Features of Index Futures 1. **Standardization**: [Futures contracts](../f/futures_contracts.md) are standardized in terms of contract size, expiration dates, and [tick size](../t/tick_size.md). This standardization facilitates ease of trading and [liquidity](../l/liquidity.md). 2. **[Margin](../m/margin.md) Requirements**: Trading [futures](../f/futures.md) involves initial and [maintenance margin](../m/maintenance_margin.md) requirements, aimed at mitigating [counterparty risk](../c/counterparty_risk.md). 3. **[Leverage](../l/leverage.md)**: [Futures contracts](../f/futures_contracts.md) [offer](../o/offer.md) significant [leverage](../l/leverage.md), allowing investors to control a large position with a relatively small amount of [capital](../c/capital.md). -4. **Settlement**: [Futures](../f/futures.md) can be settled either in cash or by [physical delivery](../p/physical_delivery_in_trading.md). Most [index futures](../i/index_futures.md) are settled in cash based on the [index](../i/index.md) [value](../v/value.md) at expiration. +4. **Settlement**: [Futures](../f/futures.md) can be settled either in cash or by [physical delivery](../p/physical_delivery_in_trading.md). Most [index futures](../i/index_futures.md) are settled in cash based on the [index](../i/index_instrument.md) [value](../v/value.md) at expiration. ## Understanding Arbitrage in Index Futures @@ -21,28 +21,28 @@ ### Types of Arbitrage in Index Futures -1. **Cash-and-Carry [Arbitrage](../a/arbitrage.md)**: This strategy involves buying the [underlying](../u/underlying.md) [index](../i/index.md) [stocks](../s/stock.md) and selling the equivalent [index](../i/index.md) [futures contracts](../f/futures_contracts.md). The [arbitrageur](../a/arbitrageur.md) holds the [stocks](../s/stock.md) until the [futures contract](../f/futures_contract.md) expires, hedging the position by carrying the [stocks](../s/stock.md). -2. **Reverse Cash-and-Carry [Arbitrage](../a/arbitrage.md)**: This is the opposite of cash-and-carry [arbitrage](../a/arbitrage.md). It involves selling the [underlying](../u/underlying.md) [index](../i/index.md) [stocks](../s/stock.md) and buying the equivalent [index](../i/index.md) [futures contracts](../f/futures_contracts.md), with the intention to deliver the [stocks](../s/stock.md) when the [futures contracts](../f/futures_contracts.md) expire. -3. **Basket Trading [Arbitrage](../a/arbitrage.md)**: This involves creating a portfolio (basket) of [stocks](../s/stock.md) that mimics the [index](../i/index.md) and trading it against the [index futures](../i/index_futures.md) to exploit price differences. +1. **Cash-and-Carry [Arbitrage](../a/arbitrage.md)**: This strategy involves buying the [underlying](../u/underlying.md) [index](../i/index_instrument.md) [stocks](../s/stock.md) and selling the equivalent [index](../i/index_instrument.md) [futures contracts](../f/futures_contracts.md). The [arbitrageur](../a/arbitrageur.md) holds the [stocks](../s/stock.md) until the [futures contract](../f/futures_contract.md) expires, hedging the position by carrying the [stocks](../s/stock.md). +2. **Reverse Cash-and-Carry [Arbitrage](../a/arbitrage.md)**: This is the opposite of cash-and-carry [arbitrage](../a/arbitrage.md). It involves selling the [underlying](../u/underlying.md) [index](../i/index_instrument.md) [stocks](../s/stock.md) and buying the equivalent [index](../i/index_instrument.md) [futures contracts](../f/futures_contracts.md), with the intention to deliver the [stocks](../s/stock.md) when the [futures contracts](../f/futures_contracts.md) expire. +3. **Basket Trading [Arbitrage](../a/arbitrage.md)**: This involves creating a portfolio (basket) of [stocks](../s/stock.md) that mimics the [index](../i/index_instrument.md) and trading it against the [index futures](../i/index_futures.md) to exploit price differences. 4. **Statistical [Arbitrage](../a/arbitrage.md)**: This strategy relies on statistical models to identify and exploit price discrepancies within a basket of [stocks](../s/stock.md) and corresponding [futures contracts](../f/futures_contracts.md). ## Key Components of Arbitrage in Index Futures ### Theoretical Fair Value -The theoretical [fair value](../f/fair_value.md) of an [index](../i/index.md) future is derived using the cost-of-carry model, which considers the [present value](../p/present_value.md) of the [index](../i/index.md) and the cost of holding the [index](../i/index.md) components. The formula for calculating the [fair value](../f/fair_value.md) (FV) is: +The theoretical [fair value](../f/fair_value.md) of an [index](../i/index_instrument.md) future is derived using the cost-of-carry model, which considers the [present value](../p/present_value.md) of the [index](../i/index_instrument.md) and the cost of holding the [index](../i/index_instrument.md) components. The formula for calculating the [fair value](../f/fair_value.md) (FV) is: \[ FV = S + (S \times R \times T) - D \] where: -- **S**: Current [index](../i/index.md) level +- **S**: Current [index](../i/index_instrument.md) level - **R**: [Risk](../r/risk.md)-free [interest rate](../i/interest_rate.md) - **T**: Time to [maturity](../m/maturity.md) - **D**: Dividends to be received ### Basis -The [basis](../b/basis.md) is the difference between the [futures](../f/futures.md) price and the [spot price](../s/spot_price.md) of the [underlying](../u/underlying.md) [index](../i/index.md). It can be expressed as: +The [basis](../b/basis.md) is the difference between the [futures](../f/futures.md) price and the [spot price](../s/spot_price.md) of the [underlying](../u/underlying.md) [index](../i/index_instrument.md). It can be expressed as: \[ \text{[Basis](../b/basis.md)} = F - S \] @@ -56,12 +56,12 @@ The [basis](../b/basis.md) can be positive or negative, indicating whether the [ ### Cash-and-Carry Arbitrage Example -Consider an [index](../i/index.md) currently trading at 1,000 points. The [risk](../r/risk.md)-free [interest rate](../i/interest_rate.md) is 5% per annum, and the [index](../i/index.md) is expected to pay dividends of 2% over the next three months. The [fair value](../f/fair_value.md) of a three-month [index](../i/index.md) future can be calculated as: +Consider an [index](../i/index_instrument.md) currently trading at 1,000 points. The [risk](../r/risk.md)-free [interest rate](../i/interest_rate.md) is 5% per annum, and the [index](../i/index_instrument.md) is expected to pay dividends of 2% over the next three months. The [fair value](../f/fair_value.md) of a three-month [index](../i/index_instrument.md) future can be calculated as: \[ FV = 1000 + (1000 \times \frac{0.05}{4}) - (1000 \times \frac{0.02}{4}) = 1000 + 12.5 - 5 = 1007.5 \] If the actual [futures](../f/futures.md) price is 1015, there is an [arbitrage](../a/arbitrage.md) opportunity. The [arbitrageur](../a/arbitrageur.md) can: -1. Buy the [underlying](../u/underlying.md) [index](../i/index.md) [stocks](../s/stock.md) at 1,000. +1. Buy the [underlying](../u/underlying.md) [index](../i/index_instrument.md) [stocks](../s/stock.md) at 1,000. 2. Sell the [index futures](../i/index_futures.md) at 1015. 3. [Hold](../h/hold.md) the [stocks](../s/stock.md) for three months, receiving dividends. 4. At expiration, deliver the [stocks](../s/stock.md) to settle the [futures contract](../f/futures_contract.md). @@ -75,7 +75,7 @@ Minus [transaction costs](../t/transaction_costs.md) and any other fees involved ### Reverse Cash-and-Carry Arbitrage Example If the actual [futures](../f/futures.md) price is 995, an [arbitrageur](../a/arbitrageur.md) can: -1. Sell the [underlying](../u/underlying.md) [index](../i/index.md) [stocks](../s/stock.md) at 1,000. +1. Sell the [underlying](../u/underlying.md) [index](../i/index_instrument.md) [stocks](../s/stock.md) at 1,000. 2. Buy the [index futures](../i/index_futures.md) at 995. 3. At expiration, buy back the [stocks](../s/stock.md) from the [market](../m/market.md) and deliver them to settle the [futures contract](../f/futures_contract.md). diff --git a/en/pedia/a/arbitrage_in_volatility.md b/en/pedia/a/arbitrage_in_volatility.md index f9b017a1..87b9b745 100644 --- a/en/pedia/a/arbitrage_in_volatility.md +++ b/en/pedia/a/arbitrage_in_volatility.md @@ -16,7 +16,7 @@ One common form of [volatility](../v/volatility.md) [arbitrage](../a/arbitrage.m ### 3. **Dispersion Trading** -[Dispersion](../d/dispersion.md) trading involves trading the difference in [volatility](../v/volatility.md) between an [index](../i/index.md) and its constituent [stocks](../s/stock.md). If the implied [volatility](../v/volatility.md) of the [index](../i/index.md) is higher than the average implied [volatility](../v/volatility.md) of its components, traders might sell the [index](../i/index.md) [volatility](../v/volatility.md) and buy the component volatilities, or vice versa. +[Dispersion](../d/dispersion.md) trading involves trading the difference in [volatility](../v/volatility.md) between an [index](../i/index_instrument.md) and its constituent [stocks](../s/stock.md). If the implied [volatility](../v/volatility.md) of the [index](../i/index_instrument.md) is higher than the average implied [volatility](../v/volatility.md) of its components, traders might sell the [index](../i/index_instrument.md) [volatility](../v/volatility.md) and buy the component volatilities, or vice versa. ### 4. **Over-the-Counter (OTC) and Exotic Options** @@ -34,7 +34,7 @@ Generalized Autoregressive Conditional [Heteroskedasticity](../h/heteroskedastic ### VIX (Volatility Index) -The VIX, or the [Volatility](../v/volatility.md) [Index](../i/index.md), represents the [market](../m/market.md)'s expectations of [volatility](../v/volatility.md) over the coming 30 days. Traders use it to gauge [market sentiment](../m/market_sentiment.md) and identify [arbitrage](../a/arbitrage.md) opportunities based on the spread between the VIX and [realized volatility](../r/realized_volatility.md). +The VIX, or the [Volatility](../v/volatility.md) [Index](../i/index_instrument.md), represents the [market](../m/market.md)'s expectations of [volatility](../v/volatility.md) over the coming 30 days. Traders use it to gauge [market sentiment](../m/market_sentiment.md) and identify [arbitrage](../a/arbitrage.md) opportunities based on the spread between the VIX and [realized volatility](../r/realized_volatility.md). ### Machine Learning and Artificial Intelligence diff --git a/en/pedia/a/arbitrage_strategies_in_different_markets.md b/en/pedia/a/arbitrage_strategies_in_different_markets.md index 350a0598..ce8a0cac 100644 --- a/en/pedia/a/arbitrage_strategies_in_different_markets.md +++ b/en/pedia/a/arbitrage_strategies_in_different_markets.md @@ -57,10 +57,10 @@ A stock traded on both the Tokyo and New York exchanges might be priced differen ### **Equity Markets** -[Equity](../e/equity.md) [arbitrage](../a/arbitrage.md) involves exploiting price discrepancies of [stocks](../s/stock.md) on different exchanges or [derivative](../d/derivative.md) markets. This can include [index](../i/index.md) [arbitrage](../a/arbitrage.md), [pairs trading](../p/pairs_trading.md), and sector-based strategies. +[Equity](../e/equity.md) [arbitrage](../a/arbitrage.md) involves exploiting price discrepancies of [stocks](../s/stock.md) on different exchanges or [derivative](../d/derivative.md) markets. This can include [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md), [pairs trading](../p/pairs_trading.md), and sector-based strategies. **Example:** -[Index](../i/index.md) [arbitrage](../a/arbitrage.md) takes advantage of discrepancies between [index futures](../i/index_futures.md) and the [underlying](../u/underlying.md) [stocks](../s/stock.md) in the [index](../i/index.md). If the future is overpriced relative to the [index](../i/index.md) [value](../v/value.md), arbitragers may sell the future and buy the [underlying](../u/underlying.md) [stocks](../s/stock.md) and vice versa. +[Index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) takes advantage of discrepancies between [index futures](../i/index_futures.md) and the [underlying](../u/underlying.md) [stocks](../s/stock.md) in the [index](../i/index_instrument.md). If the future is overpriced relative to the [index](../i/index_instrument.md) [value](../v/value.md), arbitragers may sell the future and buy the [underlying](../u/underlying.md) [stocks](../s/stock.md) and vice versa. ### **Commodity Markets** diff --git a/en/pedia/a/arithmetic_mean.md b/en/pedia/a/arithmetic_mean.md index 93ff5075..546328dc 100644 --- a/en/pedia/a/arithmetic_mean.md +++ b/en/pedia/a/arithmetic_mean.md @@ -96,7 +96,7 @@ prices = data['Close'] # Compute the short-term and long-term moving averages short_window = 40 long_window = 100 -signals = pd.DataFrame([index](../i/index.md)=prices.[index](../i/index.md)) +signals = pd.DataFrame([index](../i/index_instrument.md)=prices.[index](../i/index_instrument.md)) signals['signal'] = 0.0 signals['short_mavg'] = prices.rolling(window=short_window, min_periods=1, center=False).mean() signals['long_mavg'] = prices.rolling(window=long_window, min_periods=1, center=False).mean() @@ -107,7 +107,7 @@ signals['positions'] = signals['signal'].diff() # Backtest Strategy initial_capital= [float](../f/float.md)(100000.0) -positions = pd.DataFrame([index](../i/index.md)=signals.[index](../i/index.md)).fillna(0.0) +positions = pd.DataFrame([index](../i/index_instrument.md)=signals.[index](../i/index_instrument.md)).fillna(0.0) positions['[Asset](../a/asset.md)'] = 100*signals['signal'] portfolio = positions.multiply(prices, axis=0) pos_diff = positions.diff() diff --git a/en/pedia/a/arms_index_(trin).md b/en/pedia/a/arms_index_(trin).md index 0e216667..c08cc657 100644 --- a/en/pedia/a/arms_index_(trin).md +++ b/en/pedia/a/arms_index_(trin).md @@ -1,10 +1,10 @@ # Arms Index (TRIN) -The Arms [Index](../i/index.md), also known as the TRIN (short for Trading [Index](../i/index.md)), is a [technical analysis](../t/technical_analysis.md) [indicator](../i/indicator.md) that measures the relationship between advancing and declining [stocks](../s/stock.md) and their respective [volume](../v/volume.md) levels on a given trading day. It was invented by Richard Arms in 1967 and is used predominantly to detect [market sentiment](../m/market_sentiment.md) and flow of funds in the [stock market](../s/stock_market.md). The TRIN is often considered a contrarian [indicator](../i/indicator.md), meaning that extreme values can signal potential [market](../m/market.md) reversals. +The Arms [Index](../i/index_instrument.md), also known as the TRIN (short for Trading [Index](../i/index_instrument.md)), is a [technical analysis](../t/technical_analysis.md) [indicator](../i/indicator.md) that measures the relationship between advancing and declining [stocks](../s/stock.md) and their respective [volume](../v/volume.md) levels on a given trading day. It was invented by Richard Arms in 1967 and is used predominantly to detect [market sentiment](../m/market_sentiment.md) and flow of funds in the [stock market](../s/stock_market.md). The TRIN is often considered a contrarian [indicator](../i/indicator.md), meaning that extreme values can signal potential [market](../m/market.md) reversals. ## Calculation of the Arms Index -The formula for calculating the Arms [Index](../i/index.md) is relatively straightforward: +The formula for calculating the Arms [Index](../i/index_instrument.md) is relatively straightforward: \[ \text{TRIN} = \frac{(\text{Advancing Issues} / \text{Declining Issues})}{(\text{Advancing [Volume](../v/volume.md)} / \text{Declining [Volume](../v/volume.md)})} \] @@ -30,7 +30,7 @@ Extremes in the TRIN [value](../v/value.md) often imply potential reversals in [ ## TRIN in Practice -The Arms [Index](../i/index.md) is used by traders to gauge the overall [market](../m/market.md) environment. It is particularly useful in conjunction with other indicators and [market](../m/market.md) analyses. TRIN's unique ability to incorporate both price movement and trading [volume](../v/volume.md) gives it an edge in providing a comprehensive view of [market sentiment](../m/market_sentiment.md). +The Arms [Index](../i/index_instrument.md) is used by traders to gauge the overall [market](../m/market.md) environment. It is particularly useful in conjunction with other indicators and [market](../m/market.md) analyses. TRIN's unique ability to incorporate both price movement and trading [volume](../v/volume.md) gives it an edge in providing a comprehensive view of [market sentiment](../m/market_sentiment.md). ### Example Calculation @@ -49,7 +49,7 @@ In this scenario, the TRIN [value](../v/value.md) of 1.0 suggests a balanced sen ## Historical Context and Effectiveness -Richard W. Arms Jr. developed the Arms [Index](../i/index.md) in 1967. Over time, it has gained acceptance as a useful tool for understanding [market internals](../m/market_internals.md). While its creation predated the advent of modern computing in trading, the simplicity of its formula and the depth of insight it provides have allowed it to remain relevant. +Richard W. Arms Jr. developed the Arms [Index](../i/index_instrument.md) in 1967. Over time, it has gained acceptance as a useful tool for understanding [market internals](../m/market_internals.md). While its creation predated the advent of modern computing in trading, the simplicity of its formula and the depth of insight it provides have allowed it to remain relevant. ### Advantages @@ -76,4 +76,4 @@ Several trading platforms and financial services include TRIN indicators as part ## Conclusion -The Arms [Index](../i/index.md) remains a valuable tool for traders interested in [market sentiment](../m/market_sentiment.md) and [volume analysis](../v/volume_analysis.md). Its ability to combine advancing and declining issues with their corresponding volumes provides a unique and actionable insight into [market](../m/market.md) conditions. While it is not without limitations, its simplicity and effectiveness have cemented its place in the toolbox of technical analysts and traders alike. \ No newline at end of file +The Arms [Index](../i/index_instrument.md) remains a valuable tool for traders interested in [market sentiment](../m/market_sentiment.md) and [volume analysis](../v/volume_analysis.md). Its ability to combine advancing and declining issues with their corresponding volumes provides a unique and actionable insight into [market](../m/market.md) conditions. While it is not without limitations, its simplicity and effectiveness have cemented its place in the toolbox of technical analysts and traders alike. \ No newline at end of file diff --git a/en/pedia/a/ascending_channel.md b/en/pedia/a/ascending_channel.md index 8a2c6de7..25ac7793 100644 --- a/en/pedia/a/ascending_channel.md +++ b/en/pedia/a/ascending_channel.md @@ -55,7 +55,7 @@ Traders usually place [stop-loss orders](../s/stop-loss_orders.md) slightly belo ## Technical Indicators -To enhance the reliability of the ascending channel, traders often use additional indicators such as Moving Averages, [Bollinger Bands](../b/bollinger_band.md), RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)). +To enhance the reliability of the ascending channel, traders often use additional indicators such as Moving Averages, [Bollinger Bands](../b/bollinger_band.md), RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)). ## Applications and Examples diff --git a/en/pedia/a/asset_allocation.md b/en/pedia/a/asset_allocation.md index 5d83c900..4a7ae3cd 100644 --- a/en/pedia/a/asset_allocation.md +++ b/en/pedia/a/asset_allocation.md @@ -45,7 +45,7 @@ Tactical [asset](../a/asset.md) allocation allows for short-term deviations from [Dynamic asset allocation](../d/dynamic_asset_allocation.md) involves ongoing adjustments to the portfolio based on [market](../m/market.md) conditions and [economic indicators](../e/economic_indicators.md). This approach uses algorithms to continually reassess and reallocate assets. ### Core-Satellite Approach -The core-satellite approach combines a stable core portfolio with a mix of satellite investments. The core [holdings](../h/holdings.md) are usually broad, low-cost [index](../i/index.md) funds, while the satellites are active strategies aimed at exploiting [market](../m/market.md) inefficiencies. +The core-satellite approach combines a stable core portfolio with a mix of satellite investments. The core [holdings](../h/holdings.md) are usually broad, low-cost [index](../i/index_instrument.md) funds, while the satellites are active strategies aimed at exploiting [market](../m/market.md) inefficiencies. ## Algorithms and Techniques diff --git a/en/pedia/a/asset_management.md b/en/pedia/a/asset_management.md index 572e41e9..52c22ad0 100644 --- a/en/pedia/a/asset_management.md +++ b/en/pedia/a/asset_management.md @@ -10,11 +10,11 @@ In [finance](../f/finance.md), [asset](../a/asset.md) management primarily invol #### Active Management -[Active management](../a/active_management.md) is an approach where the [asset](../a/asset.md) manager makes specific investments with the goal of outperforming an investment [benchmark](../b/benchmark.md) [index](../i/index.md). This strategy involves continuous monitoring of the [market](../m/market.md), in-depth research, and a high level of involvement in [order](../o/order.md) to make buy, [hold](../h/hold.md), and sell decisions. [Fund](../f/fund.md) managers employing this strategy often use a variety of tools and techniques, including [fundamental analysis](../f/fundamental_analysis.md), [technical analysis](../t/technical_analysis.md), and macroeconomic analysis. Despite the potential for high returns, [active management](../a/active_management.md) usually comes with higher fees and may also involve higher levels of [risk](../r/risk.md). +[Active management](../a/active_management.md) is an approach where the [asset](../a/asset.md) manager makes specific investments with the goal of outperforming an investment [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). This strategy involves continuous monitoring of the [market](../m/market.md), in-depth research, and a high level of involvement in [order](../o/order.md) to make buy, [hold](../h/hold.md), and sell decisions. [Fund](../f/fund.md) managers employing this strategy often use a variety of tools and techniques, including [fundamental analysis](../f/fundamental_analysis.md), [technical analysis](../t/technical_analysis.md), and macroeconomic analysis. Despite the potential for high returns, [active management](../a/active_management.md) usually comes with higher fees and may also involve higher levels of [risk](../r/risk.md). #### Passive Management -Passive management involves creating a portfolio designed to mirror the performance of a specific [index](../i/index.md), such as the S&P 500 or the FTSE 100. This approach is based on the [efficient market hypothesis](../e/efficient_market_hypothesis.md), which suggests that it is difficult to consistently [outperform](../o/outperform.md) the [market](../m/market.md) due to its inherent [efficiency](../e/efficiency.md). Passive management typically involves lower fees and lower [transaction costs](../t/transaction_costs.md) because it requires fewer trades. [Exchange](../e/exchange.md)-traded funds (ETFs) and [index](../i/index.md) funds are examples of investment vehicles commonly used in passive management strategies. +Passive management involves creating a portfolio designed to mirror the performance of a specific [index](../i/index_instrument.md), such as the S&P 500 or the FTSE 100. This approach is based on the [efficient market hypothesis](../e/efficient_market_hypothesis.md), which suggests that it is difficult to consistently [outperform](../o/outperform.md) the [market](../m/market.md) due to its inherent [efficiency](../e/efficiency.md). Passive management typically involves lower fees and lower [transaction costs](../t/transaction_costs.md) because it requires fewer trades. [Exchange](../e/exchange.md)-traded funds (ETFs) and [index](../i/index_instrument.md) funds are examples of investment vehicles commonly used in passive management strategies. #### Hybrid Strategies @@ -67,7 +67,7 @@ Website: [BlackRock](https://www.blackrock.com/) ### Vanguard Group -Vanguard is known for its low-cost [index](../i/index.md) funds and ETFs. As one of the largest [asset](../a/asset.md) management firms globally, Vanguard manages over $7 trillion in AUM. +Vanguard is known for its low-cost [index](../i/index_instrument.md) funds and ETFs. As one of the largest [asset](../a/asset.md) management firms globally, Vanguard manages over $7 trillion in AUM. Website: [Vanguard](https://www.vanguard.com/) diff --git a/en/pedia/a/assets_under_management_(aum).md b/en/pedia/a/assets_under_management_(aum).md index 2b308081..19f693ca 100644 --- a/en/pedia/a/assets_under_management_(aum).md +++ b/en/pedia/a/assets_under_management_(aum).md @@ -86,7 +86,7 @@ Regulatory changes can impact how AUM is calculated, reported, and used in [mark BlackRock is one of the largest [asset management](../a/asset_management.md) firms globally, with AUM exceeding $10 trillion (as of 2023). The [firm](../f/firm.md)'s vast AUM enables it to have a significant influence on global markets and investment trends. More about BlackRock can be found on their [official website](https://www.blackrock.com). ### Vanguard -Vanguard is another major player in the [asset management](../a/asset_management.md) [industry](../i/industry.md), known for its low-cost [index](../i/index.md) funds and ETFs. Vanguard’s AUM reflects its dedication to providing cost-effective investment solutions. More about Vanguard can be found on their [official website](https://www.vanguard.com). +Vanguard is another major player in the [asset management](../a/asset_management.md) [industry](../i/industry.md), known for its low-cost [index](../i/index_instrument.md) funds and ETFs. Vanguard’s AUM reflects its dedication to providing cost-effective investment solutions. More about Vanguard can be found on their [official website](https://www.vanguard.com). ### Fidelity Fidelity is a diversified financial services company [offering](../o/offering.md) [investment management](../i/investment_management.md) and advisory services. Fidelity's AUM represents its extensive client base and diversified investment products. More about Fidelity can be found on their [official website](https://www.fidelity.com). diff --git a/en/pedia/a/automated_chart_pattern_recognition.md b/en/pedia/a/automated_chart_pattern_recognition.md index d957786a..bc8057e2 100644 --- a/en/pedia/a/automated_chart_pattern_recognition.md +++ b/en/pedia/a/automated_chart_pattern_recognition.md @@ -26,7 +26,7 @@ Machine learning and AI can enhance ACPR by developing models trained on vast da ### Technical Indicators -[Technical indicators](../t/technical_indicators.md) such as Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) are used alongside [pattern recognition](../p/pattern_recognition.md) to validate signals and improve [trading strategies](../t/trading_strategies.md). +[Technical indicators](../t/technical_indicators.md) such as Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) are used alongside [pattern recognition](../p/pattern_recognition.md) to validate signals and improve [trading strategies](../t/trading_strategies.md). ## Techniques diff --git a/en/pedia/a/average_annual_return_(aar).md b/en/pedia/a/average_annual_return_(aar).md index ed55b801..e8043118 100644 --- a/en/pedia/a/average_annual_return_(aar).md +++ b/en/pedia/a/average_annual_return_(aar).md @@ -18,7 +18,7 @@ Where: ### Importance 1. **Performance Measurement**: For traders and investors, particularly those deploying algorithmic strategies, AAR provides a clear, straightforward metric to measure the effectiveness of an [investment strategy](../i/investment_strategy.md). -2. **[Benchmark Comparison](../b/benchmark_comparison.md)**: AAR facilitates the comparison of an investment or [trading strategy](../t/trading_strategy.md)'s performance against [market](../m/market.md) benchmarks like the S&P 500 [index](../i/index.md). +2. **[Benchmark Comparison](../b/benchmark_comparison.md)**: AAR facilitates the comparison of an investment or [trading strategy](../t/trading_strategy.md)'s performance against [market](../m/market.md) benchmarks like the S&P 500 [index](../i/index_instrument.md). 3. **[Risk](../r/risk.md) Assessment**: By evaluating AAR in conjunction with other metrics such as [standard deviation](../s/standard_deviation.md) and [Sharpe Ratio](../s/sharpe_ratio.md), traders can better understand the [risk](../r/risk.md)-[return](../r/return.md) profile of their strategies. 4. **Decision Making**: It aids in making informed investment decisions, whether to continue, alter, or discontinue a particular [trading strategy](../t/trading_strategy.md) or investment. diff --git a/en/pedia/a/average_directional_index_(adx).md b/en/pedia/a/average_directional_index_(adx).md index a8c1ae63..3c5b8d51 100644 --- a/en/pedia/a/average_directional_index_(adx).md +++ b/en/pedia/a/average_directional_index_(adx).md @@ -1,13 +1,13 @@ # Average Directional Index -The Average Directional [Index](../i/index.md) (ADX) is a [technical analysis](../t/technical_analysis.md) [indicator](../i/indicator.md) developed by J. Welles Wilder Jr. in 1978. It is used to quantify the strength of a [trend](../t/trend.md) in a financial [market](../m/market.md), whether the [trend](../t/trend.md) is upward or downward. The ADX is part of the Directional Movement System and is typically plotted as a single line, which helps traders to distinguish between strong and weak trends. +The Average Directional [Index](../i/index_instrument.md) (ADX) is a [technical analysis](../t/technical_analysis.md) [indicator](../i/indicator.md) developed by J. Welles Wilder Jr. in 1978. It is used to quantify the strength of a [trend](../t/trend.md) in a financial [market](../m/market.md), whether the [trend](../t/trend.md) is upward or downward. The ADX is part of the Directional Movement System and is typically plotted as a single line, which helps traders to distinguish between strong and weak trends. ## Components of ADX The ADX is calculated using the Moving Average of price [range](../r/range.md) [expansion](../e/expansion.md). The system it belongs to also involves two other indicators: -1. **Positive Directional [Index](../i/index.md) (+DI)**: Measures the presence and strength of upward movement in the [market](../m/market.md). -2. **Negative Directional [Index](../i/index.md) (-DI)**: Measures the presence and strength of downward movement in the [market](../m/market.md). +1. **Positive Directional [Index](../i/index_instrument.md) (+DI)**: Measures the presence and strength of upward movement in the [market](../m/market.md). +2. **Negative Directional [Index](../i/index_instrument.md) (-DI)**: Measures the presence and strength of downward movement in the [market](../m/market.md). When combined, the ADX, +DI, and -DI provide a comprehensive view of [market](../m/market.md) trends and their strengths. @@ -26,7 +26,7 @@ When combined, the ADX, +DI, and -DI provide a comprehensive view of [market](.. 4. **Calculate the +DI and -DI** by dividing the smoothed +DM and -DM by the smoothed TR. -5. **Calculate the Directional Movement [Index](../i/index.md) (DX)**: +5. **Calculate the Directional Movement [Index](../i/index_instrument.md) (DX)**: - DX = ABS(+DI - -DI) / (+DI + -DI) * 100 6. **Calculate the ADX** by smoothing the DX values, usually with a 14-bar Moving Average. @@ -119,4 +119,4 @@ Each of these platforms provides customization features allowing traders to twea **[TradingView](../t/tradingview.md)**: [TradingView](https://www.tradingview.com/) -In conclusion, the Average Directional [Index](../i/index.md) (ADX) is an essential tool in the arsenal of both manual and algorithmic traders. It provides a quantitative measure of [trend](../t/trend.md) strength, helping traders make informed decisions on [market](../m/market.md) entry and exit points. While it has its limitations, when used correctly, the ADX can significantly enhance the effectiveness of a [trading strategy](../t/trading_strategy.md). \ No newline at end of file +In conclusion, the Average Directional [Index](../i/index_instrument.md) (ADX) is an essential tool in the arsenal of both manual and algorithmic traders. It provides a quantitative measure of [trend](../t/trend.md) strength, helping traders make informed decisions on [market](../m/market.md) entry and exit points. While it has its limitations, when used correctly, the ADX can significantly enhance the effectiveness of a [trading strategy](../t/trading_strategy.md). \ No newline at end of file diff --git a/en/pedia/b/backtesting_with_c++.md b/en/pedia/b/backtesting_with_c++.md index ad9917b1..6858f2b5 100644 --- a/en/pedia/b/backtesting_with_c++.md +++ b/en/pedia/b/backtesting_with_c++.md @@ -116,10 +116,10 @@ double calculateSMA(const std::vector& prices, int period) { // Signal Generation enum Signal { NONE, BUY, SELL }; -Signal generateSignal(const std::vector& shortMA, const std::vector& longMA, size_t [index](../i/index.md)) { - if (shortMA[[index](../i/index.md)] > longMA[[index](../i/index.md)] && shortMA[[index](../i/index.md) - 1] <= longMA[[index](../i/index.md) - 1]) +Signal generateSignal(const std::vector& shortMA, const std::vector& longMA, size_t [index](../i/index_instrument.md)) { + if (shortMA[[index](../i/index_instrument.md)] > longMA[[index](../i/index_instrument.md)] && shortMA[[index](../i/index_instrument.md) - 1] <= longMA[[index](../i/index_instrument.md) - 1]) [return](../r/return.md) BUY; - if (shortMA[[index](../i/index.md)] < longMA[[index](../i/index.md)] && shortMA[[index](../i/index.md) - 1] >= longMA[[index](../i/index.md) - 1]) + if (shortMA[[index](../i/index_instrument.md)] < longMA[[index](../i/index_instrument.md)] && shortMA[[index](../i/index_instrument.md) - 1] >= longMA[[index](../i/index_instrument.md) - 1]) [return](../r/return.md) SELL; [return](../r/return.md) NONE; } diff --git a/en/pedia/b/bahrain_bourse.md b/en/pedia/b/bahrain_bourse.md index e99437b2..7a162979 100644 --- a/en/pedia/b/bahrain_bourse.md +++ b/en/pedia/b/bahrain_bourse.md @@ -97,7 +97,7 @@ The Bahrain Bourse reports [robust](../r/robust.md) trading volumes and values. Bahrain Bourse provides several indices to track [market](../m/market.md) performance: -- **Bahrain All Share [Index](../i/index.md) (BASI)**: Measures the performance of all [listed](../l/listed.md) companies on the [exchange](../e/exchange.md). +- **Bahrain All Share [Index](../i/index_instrument.md) (BASI)**: Measures the performance of all [listed](../l/listed.md) companies on the [exchange](../e/exchange.md). - **Sectoral Indices**: Provide insights into the performance of specific sectors like banking, industrial, and services. ## Corporate Governance diff --git a/en/pedia/b/baku_stock_exchange_(bse).md b/en/pedia/b/baku_stock_exchange_(bse).md index 3340bcec..c7fe42ec 100644 --- a/en/pedia/b/baku_stock_exchange_(bse).md +++ b/en/pedia/b/baku_stock_exchange_(bse).md @@ -28,7 +28,7 @@ The BSE comprises several [market](../m/market.md) segments to cater to diverse ## Key Indices -To gauge the [market](../m/market.md) performance, the BSE uses several indices that reflect the general [trend](../t/trend.md) of the [market](../m/market.md). The most notable [index](../i/index.md) is the Baku Interbank Stock [Exchange](../e/exchange.md) (BISX) [index](../i/index.md), which tracks the performance of the most [liquid](../l/liquid.md) and prominent [stocks](../s/stock.md) [listed](../l/listed.md) on the [exchange](../e/exchange.md). +To gauge the [market](../m/market.md) performance, the BSE uses several indices that reflect the general [trend](../t/trend.md) of the [market](../m/market.md). The most notable [index](../i/index_instrument.md) is the Baku Interbank Stock [Exchange](../e/exchange.md) (BISX) [index](../i/index_instrument.md), which tracks the performance of the most [liquid](../l/liquid.md) and prominent [stocks](../s/stock.md) [listed](../l/listed.md) on the [exchange](../e/exchange.md). ## Listing Requirements diff --git a/en/pedia/b/baltic_dry_index.md b/en/pedia/b/baltic_dry_index.md index 5c88dda7..217dad6e 100644 --- a/en/pedia/b/baltic_dry_index.md +++ b/en/pedia/b/baltic_dry_index.md @@ -1,18 +1,18 @@ # Baltic Dry Index -The Baltic Dry [Index](../i/index.md) (BDI) is a key [indicator](../i/indicator.md) of global economic activity and [trade](../t/trade.md), serving as a [proxy](../p/proxy.md) for the [demand](../d/demand.md) for [raw materials](../r/raw_materials.md) and the health of the maritime shipping [industry](../i/industry.md). Managed by the London-headquartered Baltic [Exchange](../e/exchange.md), the [index](../i/index.md) tracks the rates to transport dry bulk cargoes such as coal, iron ore, and grain along various sea routes. Because these [raw materials](../r/raw_materials.md) are essential for industrial processes, fluctuations in the BDI are closely monitored by investors, economists, and policymakers to assess the state of the global [economy](../e/economy.md). +The Baltic Dry [Index](../i/index_instrument.md) (BDI) is a key [indicator](../i/indicator.md) of global economic activity and [trade](../t/trade.md), serving as a [proxy](../p/proxy.md) for the [demand](../d/demand.md) for [raw materials](../r/raw_materials.md) and the health of the maritime shipping [industry](../i/industry.md). Managed by the London-headquartered Baltic [Exchange](../e/exchange.md), the [index](../i/index_instrument.md) tracks the rates to transport dry bulk cargoes such as coal, iron ore, and grain along various sea routes. Because these [raw materials](../r/raw_materials.md) are essential for industrial processes, fluctuations in the BDI are closely monitored by investors, economists, and policymakers to assess the state of the global [economy](../e/economy.md). ## History and Evolution -The Baltic Dry [Index](../i/index.md) was first introduced in 1985, although the origins of its components date back to earlier indices maintained by the Baltic [Exchange](../e/exchange.md). Named after the Baltic Sea, an important [trade](../t/trade.md) route historically, the [index](../i/index.md) has grown to encompass various global shipping routes. The Baltic [Exchange](../e/exchange.md) itself, founded in 1744, has long been a central institution for the maritime [industry](../i/industry.md), providing essential data and [market](../m/market.md) benchmarks. +The Baltic Dry [Index](../i/index_instrument.md) was first introduced in 1985, although the origins of its components date back to earlier indices maintained by the Baltic [Exchange](../e/exchange.md). Named after the Baltic Sea, an important [trade](../t/trade.md) route historically, the [index](../i/index_instrument.md) has grown to encompass various global shipping routes. The Baltic [Exchange](../e/exchange.md) itself, founded in 1744, has long been a central institution for the maritime [industry](../i/industry.md), providing essential data and [market](../m/market.md) benchmarks. ## Calculation Methodology The BDI is computed daily and reflects the changing costs of shipping [raw materials](../r/raw_materials.md) in the dry bulk sector. It is an aggregate of the Baltic Capesize, Panamax, and Supramax indices, which represent different vessel sizes used in the [industry](../i/industry.md): -1. **Capesize [Index](../i/index.md)**: Covers vessels with a capacity above 150,000 deadweight tonnage (DWT). These ships primarily transport iron ore and coal and usually traverse longer routes such as those around the Cape of Good Hope. -2. **Panamax [Index](../i/index.md)**: Represents ships with a capacity ranging from 60,000 to 80,000 DWT. These vessels are named for their ability to pass through the Panama Canal and mainly transport coal, grain, and minor bulks. -3. **Supramax [Index](../i/index.md)**: Includes ships with a capacity of 50,000 to 60,000 DWT. These vessels [handle](../h/handle.md) small to medium bulk cargoes and have greater flexibility in accessing minor ports. +1. **Capesize [Index](../i/index_instrument.md)**: Covers vessels with a capacity above 150,000 deadweight tonnage (DWT). These ships primarily transport iron ore and coal and usually traverse longer routes such as those around the Cape of Good Hope. +2. **Panamax [Index](../i/index_instrument.md)**: Represents ships with a capacity ranging from 60,000 to 80,000 DWT. These vessels are named for their ability to pass through the Panama Canal and mainly transport coal, grain, and minor bulks. +3. **Supramax [Index](../i/index_instrument.md)**: Includes ships with a capacity of 50,000 to 60,000 DWT. These vessels [handle](../h/handle.md) small to medium bulk cargoes and have greater flexibility in accessing minor ports. Each of these indices collects data from leading shipbrokers worldwide, and the freight rates are averaged to produce the daily BDI [value](../v/value.md). The methodology has adapted over time to include more routes and to reflect changes in global [trade](../t/trade.md) patterns. @@ -47,7 +47,7 @@ Conversely, the BDI can exhibit an inverse relationship with: Despite its widespread use, the BDI has certain limitations: -1. **[Volatility](../v/volatility.md)**: The [index](../i/index.md) can be highly volatile due to short-term fluctuations in [supply](../s/supply.md) and [demand](../d/demand.md) for shipping. +1. **[Volatility](../v/volatility.md)**: The [index](../i/index_instrument.md) can be highly volatile due to short-term fluctuations in [supply](../s/supply.md) and [demand](../d/demand.md) for shipping. 2. **Exclusion of Container Ships**: The BDI focuses solely on dry bulk cargoes and does not account for container shipping, which is also a significant part of global [trade](../t/trade.md). 3. **[Market Sentiment](../m/market_sentiment.md)**: While less susceptible to [speculation](../s/speculation.md) than [financial markets](../f/financial_market.md), shipping rates can still be influenced by [market sentiment](../m/market_sentiment.md) and geopolitical events. @@ -55,6 +55,6 @@ Despite its widespread use, the BDI has certain limitations: In recent years, the BDI has experienced significant fluctuations due to factors such as the COVID-19 pandemic, which disrupted global [supply](../s/supply.md) chains and altered [trade](../t/trade.md) dynamics. As the world transitions toward recovery, the BDI [will](../w/will.md) continue to be a crucial measure of economic resilience and growth. Emerging trends such as sustainability and the decarbonization of shipping may also influence BDI calculations and the broader maritime [industry](../i/industry.md) in the future. -For more information on the Baltic Dry [Index](../i/index.md) and related data, you can visit the official Baltic [Exchange](../e/exchange.md) website [here](https://www.balticexchange.com/en/index.html). +For more information on the Baltic Dry [Index](../i/index_instrument.md) and related data, you can visit the official Baltic [Exchange](../e/exchange.md) website [here](https://www.balticexchange.com/en/index.html). Understanding the BDI provides invaluable insights into the complex interplay of global [trade](../t/trade.md), economic health, and the shipping [industry](../i/industry.md)'s dynamics. As a tool for informed decision-making and economic analysis, the BDI remains indispensable in today's interconnected world. \ No newline at end of file diff --git a/en/pedia/b/base_year.md b/en/pedia/b/base_year.md index afdafab4..c36a1224 100644 --- a/en/pedia/b/base_year.md +++ b/en/pedia/b/base_year.md @@ -10,7 +10,7 @@ Base years are crucial in converting [nominal](../n/nominal.md) financial and ec A base year is selected to standardize economic data, meaning it normalizes data points to make meaningful comparisons over time possible. For instance, in GDP calculations, choosing a base year helps economists and analysts compare the economic output of different years by adjusting figures to a constant [price level](../p/price_level.md), thus isolating real growth from [inflation](../i/inflation.md). ### Inflation Adjustment -[Inflation](../i/inflation.md) can distort [nominal](../n/nominal.md) economic figures, leading to a misunderstanding of real economic health. By using a base year, we can adjust for [inflation](../i/inflation.md) and understand the real changes in variables like GDP, [income](../i/income.md), and prices over time. The Consumer Price [Index](../i/index.md) (CPI) is often based on a [default](../d/default.md) year to track how prices change relative to this reference point. +[Inflation](../i/inflation.md) can distort [nominal](../n/nominal.md) economic figures, leading to a misunderstanding of real economic health. By using a base year, we can adjust for [inflation](../i/inflation.md) and understand the real changes in variables like GDP, [income](../i/income.md), and prices over time. The Consumer Price [Index](../i/index_instrument.md) (CPI) is often based on a [default](../d/default.md) year to track how prices change relative to this reference point. ### Performance Measurement Financial analysts use base years to assess the performance of investments and portfolios over time. For example, stock indices like the S&P 500 use a base year to establish a starting point for tracking changes in stock prices. Investors can then evaluate [market](../m/market.md) performance by comparing current prices against the [baseline](../b/baseline.md). @@ -35,12 +35,12 @@ In national accounts, GDP is often reported in both [nominal](../n/nominal.md) a - If [nominal](../n/nominal.md) GDP in 2020 is $20 trillion and the GDP deflator indicates a 20% price increase since 2010, the real GDP for 2020 would be $20 trillion / 1.20 = $16.67 trillion in 2010 dollars. ### Consumer Price Index (CPI) -The CPI measures changes in the [price level](../p/price_level.md) of a basket of [consumer goods](../c/consumer_goods.md) and services. The base year [index](../i/index.md) is set to 100, and CPI values in subsequent years reflect changes from this [baseline](../b/baseline.md). For instance: +The CPI measures changes in the [price level](../p/price_level.md) of a basket of [consumer goods](../c/consumer_goods.md) and services. The base year [index](../i/index_instrument.md) is set to 100, and CPI values in subsequent years reflect changes from this [baseline](../b/baseline.md). For instance: - If 2015 is the base year with a CPI of 100, and the CPI for 2025 is 120, prices have increased by 20% since 2015. ### Financial Market Indices Stock indices like the Dow Jones Industrial Average or S&P 500 use a base year to compare stock price changes over time. For instance: -- If the base year is 1980, and the base [value](../v/value.md) is set to 100, a current [index](../i/index.md) [value](../v/value.md) of 2500 implies that stock prices have increased 25 times since 1980. +- If the base year is 1980, and the base [value](../v/value.md) is set to 100, a current [index](../i/index_instrument.md) [value](../v/value.md) of 2500 implies that stock prices have increased 25 times since 1980. ### Example of a Base Year in Action Consider an [economy](../e/economy.md) where the government selects 2010 as the base year for its GDP calculations. Here's how the base year is used in various analyses: diff --git a/en/pedia/b/basis_risk.md b/en/pedia/b/basis_risk.md index 706a1d9f..96e22955 100644 --- a/en/pedia/b/basis_risk.md +++ b/en/pedia/b/basis_risk.md @@ -64,7 +64,7 @@ In [commodity](../c/commodity.md) markets, [basis](../b/basis.md) [risk](../r/ri ### Equities -When hedging [equity](../e/equity.md) positions using stock [index futures](../i/index_futures.md), [basis](../b/basis.md) [risk](../r/risk.md) can arise if the individual stock prices do not move in perfect [correlation](../c/correlation.md) with the [index](../i/index.md). +When hedging [equity](../e/equity.md) positions using stock [index futures](../i/index_futures.md), [basis](../b/basis.md) [risk](../r/risk.md) can arise if the individual stock prices do not move in perfect [correlation](../c/correlation.md) with the [index](../i/index_instrument.md). ### Fixed Income diff --git a/en/pedia/b/basket_of_goods.md b/en/pedia/b/basket_of_goods.md index ac065ad6..c495e792 100644 --- a/en/pedia/b/basket_of_goods.md +++ b/en/pedia/b/basket_of_goods.md @@ -18,15 +18,15 @@ The items included in the basket typically reflect the spending habits of an ave 8. **Miscellaneous**: Personal care products, financial services, and other miscellaneous expenses. ## Calculation of the Consumer Price Index (CPI) -One of the primary uses of the Basket of Goods is the calculation of the Consumer Price [Index](../i/index.md) (CPI). The CPI measures the average change over time in the prices paid by consumers for the basket of goods and services. The process usually involves: +One of the primary uses of the Basket of Goods is the calculation of the Consumer Price [Index](../i/index_instrument.md) (CPI). The CPI measures the average change over time in the prices paid by consumers for the basket of goods and services. The process usually involves: 1. **Selection of [Base Year](../b/base_year.md)**: A specific year is chosen as the [benchmark](../b/benchmark.md), known as the [base year](../b/base_year.md). 2. **Data Collection**: Prices of the items in the basket are compiled from various geographical locations. 3. **Weight [Assignment](../a/assignment.md)**: Each item in the basket is assigned a weight based on its importance or share in total consumer expenditure. 4. **Price Comparison**: Current prices are compared to prices in the [base year](../b/base_year.md). -5. **[Index](../i/index.md) Calculation**: A mathematical formula calculates the [percentage change](../p/percentage_change.md) in the [price level](../p/price_level.md) from the [base year](../b/base_year.md) to the current period. +5. **[Index](../i/index_instrument.md) Calculation**: A mathematical formula calculates the [percentage change](../p/percentage_change.md) in the [price level](../p/price_level.md) from the [base year](../b/base_year.md) to the current period. -The resultant [index](../i/index.md) gives a numeric [value](../v/value.md) representing the [inflation](../i/inflation.md) rate and [cost of living](../c/cost_of_living.md) changes. +The resultant [index](../i/index_instrument.md) gives a numeric [value](../v/value.md) representing the [inflation](../i/inflation.md) rate and [cost of living](../c/cost_of_living.md) changes. ## Importance in Economic Analysis The Basket of Goods, through the CPI, is crucial for several reasons: @@ -58,7 +58,7 @@ Despite its widespread use, the Basket of Goods approach and CPI have faced cert To address some of the limitations, there have been developments and alternative methods: 1. **Chained CPI**: This adjusts the weights more frequently to reflect current consumption patterns. -2. **Core CPI**: Excludes volatile items like food and energy to provide a more stable price [index](../i/index.md). +2. **Core CPI**: Excludes volatile items like food and energy to provide a more stable price [index](../i/index_instrument.md). 3. **Personal Consumption Expenditures (PCE)**: Used by the Federal Reserve, it considers broader aspects of consumer spending. ## Conclusion diff --git a/en/pedia/b/bayesian_networks.md b/en/pedia/b/bayesian_networks.md index 2caf06ea..cdc84f44 100644 --- a/en/pedia/b/bayesian_networks.md +++ b/en/pedia/b/bayesian_networks.md @@ -18,7 +18,7 @@ When constructed well, a Bayesian network can help in determining [joint](../j/j In the context of [algorithmic trading](../a/algorithmic_trading.md), nodes can represent: -- **[Market indicators](../m/market_indicators.md)**: Such as moving averages, [Bollinger Bands](../b/bollinger_bands.md), or [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI). +- **[Market indicators](../m/market_indicators.md)**: Such as moving averages, [Bollinger Bands](../b/bollinger_bands.md), or [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI). - **Macroeconomic factors**: Including [unemployment](../u/unemployment.md) rates, [interest](../i/interest.md) rates, or GDP growth. - **[Asset](../a/asset.md) prices**: Prices of [stocks](../s/stock.md), commodities, or ETFs. - **Technical patterns**: [Chart patterns](../c/chart_patterns.md) like head and shoulders, double tops or bottoms. diff --git a/en/pedia/b/bear_market.md b/en/pedia/b/bear_market.md index 98e40077..68ba6f66 100644 --- a/en/pedia/b/bear_market.md +++ b/en/pedia/b/bear_market.md @@ -124,7 +124,7 @@ There are several companies and resources available to help investors manage bea ### Vanguard -Vanguard is known for its low-cost [index](../i/index.md) funds and ETFs, which can be an effective tool for [diversification](../d/diversification.md) during bear markets. For more information, visit [Vanguard's official website](https://www.vanguard.com/). +Vanguard is known for its low-cost [index](../i/index_instrument.md) funds and ETFs, which can be an effective tool for [diversification](../d/diversification.md) during bear markets. For more information, visit [Vanguard's official website](https://www.vanguard.com/). ### BlackRock diff --git a/en/pedia/b/bear_market_strategies.md b/en/pedia/b/bear_market_strategies.md index 2396c86f..7307c87e 100644 --- a/en/pedia/b/bear_market_strategies.md +++ b/en/pedia/b/bear_market_strategies.md @@ -20,7 +20,7 @@ To effectively implement [bear market](../b/bear_market.md) strategies, it's cru **[Short selling](../s/short_selling.md)** involves borrowing and selling an [asset](../a/asset.md) with the anticipation of buying it back at a lower price. Algorithmic tools can enhance [short selling](../s/short_selling.md) by identifying [overvalued](../o/overvalued.md) assets and executing trades more efficiently. -- **[Technical Indicators](../t/technical_indicators.md)**: Algorithms can use [technical indicators](../t/technical_indicators.md) such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) to identify short-selling opportunities. +- **[Technical Indicators](../t/technical_indicators.md)**: Algorithms can use [technical indicators](../t/technical_indicators.md) such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) to identify short-selling opportunities. - **[Sentiment Analysis](../s/sentiment_analysis.md)**: Algorithms can analyze news, [social media](../s/social_media.md), and other data streams to gauge [market sentiment](../m/market_sentiment.md) and predict potential downturns. diff --git a/en/pedia/b/bear_put_spread.md b/en/pedia/b/bear_put_spread.md index d89c7143..fd5ebd7e 100644 --- a/en/pedia/b/bear_put_spread.md +++ b/en/pedia/b/bear_put_spread.md @@ -5,7 +5,7 @@ A Bear Put Spread is an [options](../o/options.md) [trading strategy](../t/tradi ## Key Components ### Underlying Asset -The [underlying asset](../u/underlying_asset.md) can be a stock, an [index](../i/index.md), or any other [financial instrument](../f/financial_instrument.md) for which [options](../o/options.md) are available. +The [underlying asset](../u/underlying_asset.md) can be a stock, an [index](../i/index_instrument.md), or any other [financial instrument](../f/financial_instrument.md) for which [options](../o/options.md) are available. ### Strike Prices In a Bear Put Spread, you choose two different strike prices. The [put option](../p/put.md) with the higher [strike price](../s/strike_price.md) (which you buy) and the [put option](../p/put.md) with the lower [strike price](../s/strike_price.md) (which you sell). diff --git a/en/pedia/b/bear_trap.md b/en/pedia/b/bear_trap.md index c682c63d..996f5f6b 100644 --- a/en/pedia/b/bear_trap.md +++ b/en/pedia/b/bear_trap.md @@ -10,7 +10,7 @@ Bear traps are deceptive patterns in the [market](../m/market.md) designed to tr Key characteristics of bear traps include: 1. **Temporary Breaks in [Support Levels](../s/support_levels.md)**: The price momentarily breaks below a key support level, giving the illusion of a continued downturn. -2. **[False Signals](../f/false_signals_in_trading.md)**: Traditional [technical indicators](../t/technical_indicator.md) like moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and MACD might generate sell signals during a bear trap. +2. **[False Signals](../f/false_signals_in_trading.md)**: Traditional [technical indicators](../t/technical_indicator.md) like moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and MACD might generate sell signals during a bear trap. 3. **[Volume Analysis](../v/volume_analysis.md)**: Typically, the [volume](../v/volume.md) might spike during the initial break, followed by a [reversal](../r/reversal.md), indicating that bears got trapped. ## Identifying Bear Traps diff --git a/en/pedia/b/bearish_divergence.md b/en/pedia/b/bearish_divergence.md index d85121bb..7b233f84 100644 --- a/en/pedia/b/bearish_divergence.md +++ b/en/pedia/b/bearish_divergence.md @@ -20,7 +20,7 @@ Bearish [divergence](../d/divergence.md) is typically categorized into two types Several [technical indicators](../t/technical_indicators.md) can be employed to spot bearish [divergence](../d/divergence.md). Some of the most commonly used are: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measures the speed and change of price movements on a scale of 0 to 100. Bearish [divergence](../d/divergence.md) occurs when RSI makes lower highs while the price makes higher highs. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measures the speed and change of price movements on a scale of 0 to 100. Bearish [divergence](../d/divergence.md) occurs when RSI makes lower highs while the price makes higher highs. - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: Consists of two moving averages and a [histogram](../h/histogram.md). Bearish [divergence](../d/divergence.md) is identified when the price makes higher highs, but MACD line records lower highs. diff --git a/en/pedia/b/bearish_engulfing_pattern.md b/en/pedia/b/bearish_engulfing_pattern.md index cc040b44..a49179df 100644 --- a/en/pedia/b/bearish_engulfing_pattern.md +++ b/en/pedia/b/bearish_engulfing_pattern.md @@ -46,7 +46,7 @@ A [robust](../r/robust.md) [algorithmic trading](../a/algorithmic_trading.md) st ### Real-World Examples - **Apple Inc. (AAPL)**: A notable Bearish Engulfing Pattern appeared on AAPL stock on January 23, 2021. Following this pattern, the stock experienced a significant decline, affirming the reliability of the pattern. -- **S&P 500 [Index](../i/index.md)**: During the 2008 [financial crisis](../f/financial_crisis.md), Bearish Engulfing Patterns were frequently observed, aligning with sharp downturns in the [market](../m/market.md). +- **S&P 500 [Index](../i/index_instrument.md)**: During the 2008 [financial crisis](../f/financial_crisis.md), Bearish Engulfing Patterns were frequently observed, aligning with sharp downturns in the [market](../m/market.md). ### Case Studies - **Algorithmic Strategies by Quant Trading Firms**: @@ -56,7 +56,7 @@ A [robust](../r/robust.md) [algorithmic trading](../a/algorithmic_trading.md) st ## Limitations ### False Signals -Bearish Engulfing Patterns are not foolproof and can produce [false signals](../f/false_signals_in_trading.md), especially in volatile markets. It's essential to combine this pattern with other [technical indicators](../t/technical_indicators.md) such as moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), or [volume analysis](../v/volume_analysis.md) to filter out [false signals](../f/false_signals_in_trading.md). +Bearish Engulfing Patterns are not foolproof and can produce [false signals](../f/false_signals_in_trading.md), especially in volatile markets. It's essential to combine this pattern with other [technical indicators](../t/technical_indicators.md) such as moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), or [volume analysis](../v/volume_analysis.md) to filter out [false signals](../f/false_signals_in_trading.md). ### Market Conditions They tend to be more reliable in specific [market](../m/market.md) conditions. For example, they are more effective in indicating reversals during a well-defined [uptrend](../u/uptrend.md), but may not be as reliable during a sideways or choppy [market](../m/market.md). diff --git a/en/pedia/b/bearish_reversal_patterns.md b/en/pedia/b/bearish_reversal_patterns.md index a93f061c..8bd63e30 100644 --- a/en/pedia/b/bearish_reversal_patterns.md +++ b/en/pedia/b/bearish_reversal_patterns.md @@ -59,7 +59,7 @@ A Rising [Wedge](../w/wedge.md) pattern can be identified as: Bearish [reversal patterns](../r/reversal_patterns.md) can be reinforced with [technical indicators](../t/technical_indicators.md) and oscillators. These tools provide additional confirmation and include: -**i. [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)** +**i. [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)** The RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md): * Measures the speed and change of price movements. diff --git a/en/pedia/b/benchmark.md b/en/pedia/b/benchmark.md index 45dbda79..ff173458 100644 --- a/en/pedia/b/benchmark.md +++ b/en/pedia/b/benchmark.md @@ -21,7 +21,7 @@ In [algorithmic trading](../a/accountability.md), various types of benchmarks ca Benchmarking has significant implications in the realm of [algorithmic trading](../a/accountability.md): -1. **Performance Measurement**: Benchmarks provide a yardstick for assessing the performance of [trading algorithms](../t/trading_algorithms.md). By comparing the returns of an algorithm to a benchmark, one can determine how well the algorithm is performing relative to the broader [market](../m/market.md) or targeted [index](../i/index.md). +1. **Performance Measurement**: Benchmarks provide a yardstick for assessing the performance of [trading algorithms](../t/trading_algorithms.md). By comparing the returns of an algorithm to a benchmark, one can determine how well the algorithm is performing relative to the broader [market](../m/market.md) or targeted [index](../i/index_instrument.md). 2. **[Risk](../r/risk.md) Assessment**: Benchmarks help in understanding the [risk](../r/risk.md)-adjusted returns or [risk](../r/risk.md) profile of a trading algorithm. Measures like the [Sharpe ratio](../s/sharpe_ratio.md) compare the excess returns to the [standard deviation](../s/standard_deviation.md) of the benchmark, providing insights into the [risk](../r/risk.md) taken to achieve those returns. 3. **Accountability**: Benchmarks impose accountability on the algorithm developers and [fund](../f/fund.md) managers. Regular benchmarking helps in scrutinizing the [trading strategy](../t/trading_strategy.md)’s performance and accountability towards their clients or stakeholders. 4. **Strategy Evaluation**: By comparing different strategies against the same benchmark, traders can identify which strategies are yielding better results and make informed decisions about strategy adjustments or changes. diff --git a/en/pedia/b/benchmarking_strategies.md b/en/pedia/b/benchmarking_strategies.md index 30f8b885..e6634720 100644 --- a/en/pedia/b/benchmarking_strategies.md +++ b/en/pedia/b/benchmarking_strategies.md @@ -42,7 +42,7 @@ Several tools and platforms are available to assist traders in benchmarking thei ### 1. Define the Benchmark -Selecting an appropriate [benchmark](../b/benchmark.md) is crucial. The chosen [benchmark](../b/benchmark.md) should be relevant to the [trading strategy](../t/trading_strategy.md)'s objectives and [asset](../a/asset.md) classes. For instance, a technology-focused [trading strategy](../t/trading_strategy.md) should be benchmarked against a tech [index](../i/index.md) rather than the general [market](../m/market.md). +Selecting an appropriate [benchmark](../b/benchmark.md) is crucial. The chosen [benchmark](../b/benchmark.md) should be relevant to the [trading strategy](../t/trading_strategy.md)'s objectives and [asset](../a/asset.md) classes. For instance, a technology-focused [trading strategy](../t/trading_strategy.md) should be benchmarked against a tech [index](../i/index_instrument.md) rather than the general [market](../m/market.md). ### 2. Collect Data @@ -86,7 +86,7 @@ Factors like regulatory changes, [geopolitical events](../g/geopolitical_events. 1. **JP Morgan's LOXM AI Trading Program**: JP Morgan's AI-based trading program, LOXM, was benchmarked against traditional human traders. The AI demonstrated superior [execution](../e/execution.md) quality, reducing [trading costs](../t/trading_costs.md) and improving net performance. More details can be found on JP Morgan's official page. [JP Morgan](https://www.jpmorgan.com) -2. **Goldman Sachs' Automated Trading System**: Goldman Sachs implemented [automated trading systems](../a/automated_trading_systems.md) benchmarked against [market](../m/market.md) indexes like the S&P 500. The system was evaluated based on its ability to [outperform](../o/outperform.md) the [index](../i/index.md) while managing [risk](../r/risk.md) effectively. Details are available in their financial reports. [Goldman Sachs](https://www.goldmansachs.com) +2. **Goldman Sachs' Automated Trading System**: Goldman Sachs implemented [automated trading systems](../a/automated_trading_systems.md) benchmarked against [market](../m/market.md) indexes like the S&P 500. The system was evaluated based on its ability to [outperform](../o/outperform.md) the [index](../i/index_instrument.md) while managing [risk](../r/risk.md) effectively. Details are available in their financial reports. [Goldman Sachs](https://www.goldmansachs.com) ## Conclusion diff --git a/en/pedia/b/beta.md b/en/pedia/b/beta.md index 872a9866..c7c6169c 100644 --- a/en/pedia/b/beta.md +++ b/en/pedia/b/beta.md @@ -4,7 +4,7 @@ Beta is a statistical measure that compares the [volatility](../v/volatility.md) ## Understanding Beta -Beta is a dimensionless number that signifies the [correlation](../c/correlation.md) between the performance of an individual [asset](../a/asset.md) and a [benchmark](../b/benchmark.md) [index](../i/index.md) (like the S&P 500). Here’s a quick guide to interpreting beta values: +Beta is a dimensionless number that signifies the [correlation](../c/correlation.md) between the performance of an individual [asset](../a/asset.md) and a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) (like the S&P 500). Here’s a quick guide to interpreting beta values: - **Beta < 1:** The [security](../s/security.md) is less volatile than the [market](../m/market.md). For example, a beta of 0.8 suggests the [security](../s/security.md) is expected to be 20% less volatile than the [market](../m/market.md). - **Beta = 1:** The [security](../s/security.md)’s price [will](../w/will.md) move with the [market](../m/market.md). If the [market](../m/market.md) goes up by 1%, the [security](../s/security.md) is also expected to move up by 1%. diff --git a/en/pedia/b/bitcoin_misery_index.md b/en/pedia/b/bitcoin_misery_index.md index 4f3f9138..aa17177e 100644 --- a/en/pedia/b/bitcoin_misery_index.md +++ b/en/pedia/b/bitcoin_misery_index.md @@ -17,7 +17,7 @@ Here's a breakdown of the components: 2. **Total Trades:** The total number of trading days in the same period. 3. **[Volatility](../v/volatility.md):** A measure of price fluctuations, typically using [standard deviation](../s/standard_deviation.md) or other statistical methods to gauge how much the price of [Bitcoin](../b/bitcoin.md) deviates from its average over the calculation period. -The [index](../i/index.md) combines these elements to provide a single score, reflecting both the frequency of positive trading days and the level of price [volatility](../v/volatility.md). +The [index](../i/index_instrument.md) combines these elements to provide a single score, reflecting both the frequency of positive trading days and the level of price [volatility](../v/volatility.md). ## Significance of BMI Scores - **0-27 (Misery):** Extremely bearish sentiment, indicative of panic-selling or extremely negative [investor](../i/investor.md) sentiment. Historically, these levels have signaled potential buying opportunities, as prices may be [oversold](../o/oversold.md). @@ -30,7 +30,7 @@ The [index](../i/index.md) combines these elements to provide a single score, re The [Bitcoin](../b/bitcoin.md) [Misery Index](../m/misery_index.md) can be incorporated into various [trading strategies](../t/trading_strategies.md), particularly for those looking to time their [market](../m/market.md) entries and exits based on [sentiment analysis](../s/sentiment_analysis.md). Here are some examples of how traders might use the BMI: ### Contrarian Trading -Contrarian investors may use the BMI to identify opportunities where [market sentiment](../m/market_sentiment.md) is excessively negative (low BMI scores), buying [Bitcoin](../b/bitcoin.md) when the [index](../i/index.md) suggests extreme misery, and selling when the [index](../i/index.md) indicates extreme euphoria. This approach aims to [capitalize](../c/capitalize.md) on [market](../m/market.md) overreactions driven by [investor](../i/investor.md) sentiment. +Contrarian investors may use the BMI to identify opportunities where [market sentiment](../m/market_sentiment.md) is excessively negative (low BMI scores), buying [Bitcoin](../b/bitcoin.md) when the [index](../i/index_instrument.md) suggests extreme misery, and selling when the [index](../i/index_instrument.md) indicates extreme euphoria. This approach aims to [capitalize](../c/capitalize.md) on [market](../m/market.md) overreactions driven by [investor](../i/investor.md) sentiment. ### Sentiment Analysis [Sentiment analysis](../s/sentiment_analysis.md) traders focus on understanding the broader emotional landscape of the [market](../m/market.md). By incorporating the BMI into their analysis, they can gauge the prevailing sentiment and adjust their strategies accordingly. For example, in periods of high BMI scores, traders might adopt a more cautious approach, anticipating potential [market](../m/market.md) corrections. diff --git a/en/pedia/b/black_monday.md b/en/pedia/b/black_monday.md index 8fb99047..43d3a835 100644 --- a/en/pedia/b/black_monday.md +++ b/en/pedia/b/black_monday.md @@ -5,7 +5,7 @@ Black Monday refers to the [stock market crash](../s/stock_market_crash.md) on O ## Background ### Preceding Trends -The mid-1980s was a period of remarkable growth for global stock markets, notably in the United States. The Dow Jones Industrial Average (DJIA), a key [index](../i/index.md) often used as a [market](../m/market.md) barometer, had been on a substantial rise during this period. The [financial markets](../f/financial_market.md) were rife with [speculation](../s/speculation.md), driven by several factors: +The mid-1980s was a period of remarkable growth for global stock markets, notably in the United States. The Dow Jones Industrial Average (DJIA), a key [index](../i/index_instrument.md) often used as a [market](../m/market.md) barometer, had been on a substantial rise during this period. The [financial markets](../f/financial_market.md) were rife with [speculation](../s/speculation.md), driven by several factors: 1. **[Economic Growth](../e/economic_growth.md)**: The US [economy](../e/economy.md) was experiencing [robust](../r/robust.md) growth, stimulated by tax cuts and increased government spending. 2. **Technological Advances**: The proliferation of personal computers and electronic [trading systems](../t/trading_systems.md) began making significant impacts. diff --git a/en/pedia/b/blue_book.md b/en/pedia/b/blue_book.md index e546cbd5..2cb9cbf1 100644 --- a/en/pedia/b/blue_book.md +++ b/en/pedia/b/blue_book.md @@ -111,8 +111,8 @@ def plot_trading_signals(stock_data, buy_signals, sell_signals): plt.plot(stock_data, label='Stock Price') plt.plot(stock_data.rolling(window=10).mean(), label='Rolling Mean', linestyle='--') - plt.scatter(stock_data.[index](../i/index.md)[buy_signals], stock_data[buy_signals], marker='^', color='g', label='Buy Signal', [alpha](../a/alpha.md)=1) - plt.scatter(stock_data.[index](../i/index.md)[sell_signals], stock_data[sell_signals], marker='v', color='r', label='Sell Signal', [alpha](../a/alpha.md)=1) + plt.scatter(stock_data.[index](../i/index_instrument.md)[buy_signals], stock_data[buy_signals], marker='^', color='g', label='Buy Signal', [alpha](../a/alpha.md)=1) + plt.scatter(stock_data.[index](../i/index_instrument.md)[sell_signals], stock_data[sell_signals], marker='v', color='r', label='Sell Signal', [alpha](../a/alpha.md)=1) plt.title('[Mean Reversion](../m/mean_reversion.md) Strategy - [Trading Signals](../t/trading_signals.md)') plt.xlabel('Date') diff --git a/en/pedia/b/bme_spanish_exchanges_(bme).md b/en/pedia/b/bme_spanish_exchanges_(bme).md index bff54161..b78097e7 100644 --- a/en/pedia/b/bme_spanish_exchanges_(bme).md +++ b/en/pedia/b/bme_spanish_exchanges_(bme).md @@ -20,7 +20,7 @@ BME is composed of several subsidiaries, each specializing in different areas of ### Equities Market -Spain's equities [market](../m/market.md) provides a platform for trading [stocks](../s/stock.md) of publicly [listed](../l/listed.md) companies. The Spanish [stock market](../s/stock_market.md)'s main [index](../i/index.md) is the IBEX 35, which aggregates the 35 most [liquid](../l/liquid.md) [stocks](../s/stock.md) traded in Madrid. Equities [listed](../l/listed.md) in BME include: +Spain's equities [market](../m/market.md) provides a platform for trading [stocks](../s/stock.md) of publicly [listed](../l/listed.md) companies. The Spanish [stock market](../s/stock_market.md)'s main [index](../i/index_instrument.md) is the IBEX 35, which aggregates the 35 most [liquid](../l/liquid.md) [stocks](../s/stock.md) traded in Madrid. Equities [listed](../l/listed.md) in BME include: - [Large-cap stocks](../l/large_cap_stocks.md) such as Banco Santander, Telefónica, and Iberdrola. - [Mid-cap](../m/mid-cap.md) and small-cap [stocks](../s/stock.md), providing broad exposure to various Spanish industries. @@ -39,7 +39,7 @@ MEFF, the [derivatives](../d/derivatives.md) segment of BME, offers trading in [ ### Exchange-Traded Funds (ETFs) -BME offers trading in ETFs, which are investment funds traded on stock exchanges, much like [stocks](../s/stock.md). These funds typically track a specific [index](../i/index.md), [commodity](../c/commodity.md), bonds, or a basket of assets. Popular ETFs on the BME track indices like the IBEX 35 and other global benchmarks. +BME offers trading in ETFs, which are investment funds traded on stock exchanges, much like [stocks](../s/stock.md). These funds typically track a specific [index](../i/index_instrument.md), [commodity](../c/commodity.md), bonds, or a basket of assets. Popular ETFs on the BME track indices like the IBEX 35 and other global benchmarks. ### Alternative Investment Markets diff --git a/en/pedia/b/bollinger_bands.md b/en/pedia/b/bollinger_bands.md index 1cde1920..3db335ef 100644 --- a/en/pedia/b/bollinger_bands.md +++ b/en/pedia/b/bollinger_bands.md @@ -69,7 +69,7 @@ This strategy can involve entering long or short positions based on the price mo ## Combining Bollinger Bands with Other Indicators To mitigate [false signals](../f/false_signals_in_trading.md) and improve the effectiveness of Bollinger Bands, they are often used in conjunction with other [technical indicators](../t/technical_indicators.md) such as: -1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: To confirm [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions. +1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: To confirm [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions. 2. **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: To identify [trend](../t/trend.md) changes. 3. **[Volume Indicators](../v/volume_indicators.md)**: To confirm the strength of price moves. diff --git a/en/pedia/b/bollinger_bands_strategies.md b/en/pedia/b/bollinger_bands_strategies.md index c92363d1..88d33fd4 100644 --- a/en/pedia/b/bollinger_bands_strategies.md +++ b/en/pedia/b/bollinger_bands_strategies.md @@ -14,7 +14,7 @@ The Bollinger Band Squeeze strategy is designed to identify periods of low [vola 1. **Identify a Squeeze**: Look for a period where the upper and lower [Bollinger Bands](../b/bollinger_bands.md) are converging or are closer together than usual. 2. **Wait for a [Breakout](../b/breakout.md)**: Monitor the stock to identify a [breakout](../b/breakout.md). Breakouts occur when the price moves significantly above the upper band or below the lower band. -3. **Confirm the Direction**: Use additional indicators (such as [volume](../v/volume.md), [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), or Moving Average Convergence [Divergence](../d/divergence.md) (MACD)) to confirm the [breakout](../b/breakout.md) direction. +3. **Confirm the Direction**: Use additional indicators (such as [volume](../v/volume.md), [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), or Moving Average Convergence [Divergence](../d/divergence.md) (MACD)) to confirm the [breakout](../b/breakout.md) direction. 4. **Enter the [Trade](../t/trade.md)**: Once confirmed, enter a long position if the [breakout](../b/breakout.md) is upward or a short position if the [breakout](../b/breakout.md) is downward. 5. **Set Stop-Loss**: Set a [stop-loss order](../s/stop-loss_order.md) to minimize [risk](../r/risk.md). The stop-loss level can be placed at the middle Bollinger Band or just inside the opposite band. @@ -64,7 +64,7 @@ The [Trend](../t/trend.md) [Trading strategy](../t/trading_strategy.md) with [Bo ### Overview -Combining [Bollinger Bands](../b/bollinger_bands.md) with the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) can provide more reliable signals. The RSI measures the speed and change of price movements and is often used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +Combining [Bollinger Bands](../b/bollinger_bands.md) with the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) can provide more reliable signals. The RSI measures the speed and change of price movements and is often used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. ### How to Implement diff --git a/en/pedia/b/bombay_stock_exchange_(bse).md b/en/pedia/b/bombay_stock_exchange_(bse).md index 574328bb..5251c41d 100644 --- a/en/pedia/b/bombay_stock_exchange_(bse).md +++ b/en/pedia/b/bombay_stock_exchange_(bse).md @@ -8,7 +8,7 @@ The BSE was founded by Premchand Roychand, a prominent [stockbroker](../s/stockb ### Milestones in BSE History - **1995:** The BSE switched from an [open](../o/open.md) floor trading system to an electronic trading system, drastically improving [transaction](../t/transaction.md) speed and [efficiency](../e/efficiency.md). -- **2005:** BSE introduced a free [float](../f/float.md) [index](../i/index.md) known as the BSE [SENSEX](../s/sensex.md), which tracks the performance of the top 30 companies [listed](../l/listed.md) on the [exchange](../e/exchange.md). +- **2005:** BSE introduced a free [float](../f/float.md) [index](../i/index_instrument.md) known as the BSE [SENSEX](../s/sensex.md), which tracks the performance of the top 30 companies [listed](../l/listed.md) on the [exchange](../e/exchange.md). - **2010:** The BSE became the world's fastest stock [exchange](../e/exchange.md) with a trading speed of 200 microseconds. ## Structure and Functioning @@ -25,7 +25,7 @@ Companies wishing to list their [shares](../s/shares.md) on the BSE must meet st ## Key Indices ### BSE SENSEX -The BSE [SENSEX](../s/sensex.md) or Bombay Stock [Exchange](../e/exchange.md) Sensitive [Index](../i/index.md) is a free-[float](../f/float.md) [market](../m/market.md)-[weighted](../w/weighted.md) stock [market index](../m/market_index.md) of 30 well-established and financially sound companies [listed](../l/listed.md) on the BSE. It serves as a barometer for the Indian [stock market](../s/stock_market.md). +The BSE [SENSEX](../s/sensex.md) or Bombay Stock [Exchange](../e/exchange.md) Sensitive [Index](../i/index_instrument.md) is a free-[float](../f/float.md) [market](../m/market.md)-[weighted](../w/weighted.md) stock [market index](../m/market_index.md) of 30 well-established and financially sound companies [listed](../l/listed.md) on the BSE. It serves as a barometer for the Indian [stock market](../s/stock_market.md). ### S&P BSE 500 The S&P BSE 500 represents nearly 93% of the total [market capitalization](../m/market_capitalization.md) on the BSE. It includes companies from various sectors and is thus considered a broader [indicator](../i/indicator.md) of the Indian [market](../m/market.md). diff --git a/en/pedia/b/bond_duration_strategies.md b/en/pedia/b/bond_duration_strategies.md index b6ac0efa..734d29be 100644 --- a/en/pedia/b/bond_duration_strategies.md +++ b/en/pedia/b/bond_duration_strategies.md @@ -81,7 +81,7 @@ Active strategies aim to exploit expected changes in [interest](../i/interest.md 2. **BlackRock**: BlackRock employs [duration](../d/duration.md)-based strategies to manage its extensive [bond](../b/bond.md) portfolios, focusing on both passive and [active management](../a/active_management.md) techniques to optimize [risk](../r/risk.md)-adjusted returns. [Website](https://www.blackrock.com) -3. **Vanguard**: Vanguard relies on [duration](../d/duration.md) management as a core component of its [bond](../b/bond.md) [investment strategy](../i/investment_strategy.md), balancing passive [index](../i/index.md) tracking with active [duration](../d/duration.md) adjustments to enhance performance. [Website](https://www.vanguard.com) +3. **Vanguard**: Vanguard relies on [duration](../d/duration.md) management as a core component of its [bond](../b/bond.md) [investment strategy](../i/investment_strategy.md), balancing passive [index](../i/index_instrument.md) tracking with active [duration](../d/duration.md) adjustments to enhance performance. [Website](https://www.vanguard.com) ## Conclusion diff --git a/en/pedia/b/bond_etf.md b/en/pedia/b/bond_etf.md index 05f864e3..b960189e 100644 --- a/en/pedia/b/bond_etf.md +++ b/en/pedia/b/bond_etf.md @@ -1,6 +1,6 @@ # Bond ETF -A [Bond](../b/bond.md) [Exchange](../e/exchange.md)-Traded [Fund](../f/fund.md) ([Bond](../b/bond.md) ETF) is a type of [investment fund](../i/investment_fund.md) that holds a portfolio of bonds and is traded on stock exchanges, similar to [stocks](../s/stock.md). [Bond](../b/bond.md) ETFs [offer](../o/offer.md) investors a convenient way to [gain](../g/gain.md) exposure to the [bond market](../b/bond_market.md) without having to buy individual bonds. These funds aim to replicate the performance of a specific [bond](../b/bond.md) [index](../i/index.md), understand the broader [bond market](../b/bond_market.md), or follow a particular [investment strategy](../i/investment_strategy.md). +A [Bond](../b/bond.md) [Exchange](../e/exchange.md)-Traded [Fund](../f/fund.md) ([Bond](../b/bond.md) ETF) is a type of [investment fund](../i/investment_fund.md) that holds a portfolio of bonds and is traded on stock exchanges, similar to [stocks](../s/stock.md). [Bond](../b/bond.md) ETFs [offer](../o/offer.md) investors a convenient way to [gain](../g/gain.md) exposure to the [bond market](../b/bond_market.md) without having to buy individual bonds. These funds aim to replicate the performance of a specific [bond](../b/bond.md) [index](../i/index_instrument.md), understand the broader [bond market](../b/bond_market.md), or follow a particular [investment strategy](../i/investment_strategy.md). ## Basics of Bond ETFs @@ -68,7 +68,7 @@ ETFs that invest in corporate or high-[yield](../y/yield.md) bonds are subject t ### Tracking Error -There can be a disparity between the ETF's performance and the performance of the [underlying](../u/underlying.md) [index](../i/index.md) it aims to replicate. This difference, known as [tracking error](../t/tracking_error.md), can be due to management fees, [transaction costs](../t/transaction_costs.md), and other factors. +There can be a disparity between the ETF's performance and the performance of the [underlying](../u/underlying.md) [index](../i/index_instrument.md) it aims to replicate. This difference, known as [tracking error](../t/tracking_error.md), can be due to management fees, [transaction costs](../t/transaction_costs.md), and other factors. ### Liquidity Risk @@ -84,7 +84,7 @@ While [Bond](../b/bond.md) ETFs are generally [liquid](../l/liquid.md), there ma ### Vanguard -Vanguard is known for its low-cost [index](../i/index.md) funds and ETFs. Vanguard offers several [bond](../b/bond.md) ETFs, including those focused on U.S. Treasuries, corporate bonds, and international bonds. +Vanguard is known for its low-cost [index](../i/index_instrument.md) funds and ETFs. Vanguard offers several [bond](../b/bond.md) ETFs, including those focused on U.S. Treasuries, corporate bonds, and international bonds. [Visit Vanguard](https://investor.vanguard.com/etf/list#/etf/asset-class/month-end-returns) diff --git a/en/pedia/b/bond_fund.md b/en/pedia/b/bond_fund.md index a2562470..766ae16a 100644 --- a/en/pedia/b/bond_fund.md +++ b/en/pedia/b/bond_fund.md @@ -32,7 +32,7 @@ In actively managed [bond](../b/bond.md) funds, portfolio managers actively buy #### Passive Management -Passive [bond](../b/bond.md) funds, or [index](../i/index.md) funds, aim to replicate the performance of a specific [bond](../b/bond.md) [index](../i/index.md) by holding a similar portfolio of bonds. These funds typically have lower fees but may not [outperform](../o/outperform.md) actively managed funds. +Passive [bond](../b/bond.md) funds, or [index](../i/index_instrument.md) funds, aim to replicate the performance of a specific [bond](../b/bond.md) [index](../i/index_instrument.md) by holding a similar portfolio of bonds. These funds typically have lower fees but may not [outperform](../o/outperform.md) actively managed funds. ### Benefits of Bond Funds @@ -50,7 +50,7 @@ Passive [bond](../b/bond.md) funds, or [index](../i/index.md) funds, aim to repl ### Notable Bond Fund Companies -1. **Vanguard:** Known for a wide [range](../r/range.md) of [bond](../b/bond.md) funds, including [index](../i/index.md) and actively managed [options](../o/options.md). [Vanguard Bond Funds](https://investor.vanguard.com/mutual-funds/bond/#/) +1. **Vanguard:** Known for a wide [range](../r/range.md) of [bond](../b/bond.md) funds, including [index](../i/index_instrument.md) and actively managed [options](../o/options.md). [Vanguard Bond Funds](https://investor.vanguard.com/mutual-funds/bond/#/) 2. **BlackRock:** Offers a variety of [bond](../b/bond.md) funds through its [iShares](../i/ishares.md) brand, encompassing government, corporate, and [municipal bonds](../m/municipal_bonds.md). [BlackRock Bond Funds](https://www.blackrock.com/us/individual/products/etf-investments#!type=ishares&style=ishares&view=keyFacts&categoryId=431791) 3. **Fidelity:** Provides a broad array of [bond](../b/bond.md) mutual funds, focusing on various [bond](../b/bond.md) sectors and [credit](../c/credit.md) qualities. [Fidelity Bond Funds](https://www.fidelity.com/mutual-funds/bond-funds/overview) 4. **PIMCO:** A leading global [investment management](../i/investment_management.md) [firm](../f/firm.md) specializing in active fixed-[income](../i/income.md) management. [PIMCO Bond Funds](https://www.pimco.com/en-us/investments/mutual-funds) diff --git a/en/pedia/b/bond_market.md b/en/pedia/b/bond_market.md index 24e5fdf0..08f94321 100644 --- a/en/pedia/b/bond_market.md +++ b/en/pedia/b/bond_market.md @@ -58,9 +58,9 @@ Underwriters are financial institutions that help issuers bring their bonds to [ ## Bond Market Indices [Bond](../b/bond.md) [market](../m/market.md) indices are tools used to measure and track the performance of various segments of the [bond](../b/bond.md) [market](../m/market.md). -* **[Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index.md):** A broad-based flagship [benchmark](../b/benchmark.md) that measures the [investment grade](../i/investment_grade.md), U.S. dollar-denominated, fixed-rate taxable [bond](../b/bond.md) [market](../m/market.md). -* **[Merrill Lynch](../m/merrill_lynch.md) U.S. High [Yield](../y/yield.md) Master II [Index](../i/index.md):** Tracks the performance of below investment-grade, U.S. dollar-denominated corporate bonds. -* **S&P National AMT-Free [Municipal Bond](../m/municipal_bond.md) [Index](../i/index.md):** Measures U.S. [municipal bonds](../m/municipal_bonds.md) with high [credit](../c/credit.md) quality and tax exemptions. +* **[Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md):** A broad-based flagship [benchmark](../b/benchmark.md) that measures the [investment grade](../i/investment_grade.md), U.S. dollar-denominated, fixed-rate taxable [bond](../b/bond.md) [market](../m/market.md). +* **[Merrill Lynch](../m/merrill_lynch.md) U.S. High [Yield](../y/yield.md) Master II [Index](../i/index_instrument.md):** Tracks the performance of below investment-grade, U.S. dollar-denominated corporate bonds. +* **S&P National AMT-Free [Municipal Bond](../m/municipal_bond.md) [Index](../i/index_instrument.md):** Measures U.S. [municipal bonds](../m/municipal_bonds.md) with high [credit](../c/credit.md) quality and tax exemptions. ## Yield Curve The [yield curve](../y/yard.md) graphically represents the relationship between [bond](../b/bond.md) yields and maturities. It shows the [yield](../y/yield.md) of bonds at different maturities. The typical [yield curve](../y/yard.md) is upward sloping, indicating that longer-term bonds have higher yields to compensate for increased [risk](../r/risk.md) over time. diff --git a/en/pedia/b/bond_portfolio_management.md b/en/pedia/b/bond_portfolio_management.md index 1bfd571d..a6819a0b 100644 --- a/en/pedia/b/bond_portfolio_management.md +++ b/en/pedia/b/bond_portfolio_management.md @@ -36,16 +36,16 @@ The [yield spread](../y/yield_spread.md) is the difference between the yields of ## Strategies in Bond Portfolio Management ### Passive Management Strategy -In passive [bond](../b/bond.md) [portfolio management](../p/portfolio_management.md), the objective is to replicate the performance of a [bond](../b/bond.md) [market index](../m/market_index.md), such as the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index.md). This strategy involves minimal trading and focuses on long-term holding. +In passive [bond](../b/bond.md) [portfolio management](../p/portfolio_management.md), the objective is to replicate the performance of a [bond](../b/bond.md) [market index](../m/market_index.md), such as the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md). This strategy involves minimal trading and focuses on long-term holding. #### Buy and Hold This strategy involves purchasing a diversified portfolio of bonds and holding them until they mature. This approach minimizes [transaction costs](../t/transaction_costs.md) and provides a predictable stream of [income](../i/income.md). #### Indexing -[Indexing](../i/indexing.md) aims to match the performance of a specific [bond](../b/bond.md) [index](../i/index.md) by replicating its composition. This strategy requires periodic [rebalancing](../r/rebalancing.md) to maintain alignment with the [index](../i/index.md). +[Indexing](../i/indexing.md) aims to match the performance of a specific [bond](../b/bond.md) [index](../i/index_instrument.md) by replicating its composition. This strategy requires periodic [rebalancing](../r/rebalancing.md) to maintain alignment with the [index](../i/index_instrument.md). ### Active Management Strategy -Active [bond](../b/bond.md) [portfolio management](../p/portfolio_management.md) seeks to [outperform](../o/outperform.md) a [benchmark](../b/benchmark.md) [index](../i/index.md) through various [trading strategies](../t/trading_strategies.md) and [market](../m/market.md) analysis. +Active [bond](../b/bond.md) [portfolio management](../p/portfolio_management.md) seeks to [outperform](../o/outperform.md) a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) through various [trading strategies](../t/trading_strategies.md) and [market](../m/market.md) analysis. #### Interest Rate Anticipation [Interest rate](../i/interest_rate.md) anticipation involves predicting changes in [interest](../i/interest.md) rates and adjusting the portfolio's [duration](../d/duration.md) accordingly. If [interest](../i/interest.md) rates are expected to rise, the manager might shorten the portfolio's [duration](../d/duration.md) to reduce [interest rate risk](../i/interest_rate_risk.md). @@ -138,7 +138,7 @@ BlackRock is one of the world's largest [investment management](../i/investment_ [Visit Fidelity Investments](https://www.fidelity.com) ### Vanguard -Vanguard is known for its low-cost [bond](../b/bond.md) [index](../i/index.md) funds and ETFs. The [firm](../f/firm.md)'s [bond](../b/bond.md) [portfolio management](../p/portfolio_management.md) approach focuses on broad [diversification](../d/diversification.md) and cost [efficiency](../e/efficiency.md). +Vanguard is known for its low-cost [bond](../b/bond.md) [index](../i/index_instrument.md) funds and ETFs. The [firm](../f/firm.md)'s [bond](../b/bond.md) [portfolio management](../p/portfolio_management.md) approach focuses on broad [diversification](../d/diversification.md) and cost [efficiency](../e/efficiency.md). [Visit Vanguard](https://www.vanguard.com) ### T. Rowe Price diff --git a/en/pedia/b/book-to-market_ratio.md b/en/pedia/b/book-to-market_ratio.md index 7eadfc04..44ca310c 100644 --- a/en/pedia/b/book-to-market_ratio.md +++ b/en/pedia/b/book-to-market_ratio.md @@ -58,7 +58,7 @@ While the B/M ratio is a helpful metric, it has significant limitations: ## Real-World Application Several financial institutions use the B/M ratio as part of their stock-picking strategies. For example: -- **The Vanguard Group** employs [value](../v/value.md)-oriented strategies focusing on [stocks](../s/stock.md) with high B/M ratios within some of their [index](../i/index.md) funds. [The Vanguard Group](https://investor.vanguard.com) +- **The Vanguard Group** employs [value](../v/value.md)-oriented strategies focusing on [stocks](../s/stock.md) with high B/M ratios within some of their [index](../i/index_instrument.md) funds. [The Vanguard Group](https://investor.vanguard.com) - **T. Rowe Price** uses the B/M ratio in conjunction with other financial metrics to identify [undervalued](../u/undervalued.md) [stocks](../s/stock.md) in its mutual funds. [T. Rowe Price](https://www.troweprice.com) - **Dimensional [Fund](../f/fund.md) Advisors** integrates the B/M ratio in their multi-[factor](../f/factor.md) investment models to capture [value](../v/value.md) premiums. [Dimensional Fund Advisors](https://us.dimensional.com) diff --git a/en/pedia/b/botswana_stock_exchange_(bse).md b/en/pedia/b/botswana_stock_exchange_(bse).md index e656ca5f..a1b5fe94 100644 --- a/en/pedia/b/botswana_stock_exchange_(bse).md +++ b/en/pedia/b/botswana_stock_exchange_(bse).md @@ -44,9 +44,9 @@ The BSE is divided into several [market](../m/market.md) segments, including: ## Indices The BSE uses several indices to track [market](../m/market.md) performance. These include: -- **Botswana Stock [Exchange](../e/exchange.md) Domestic Company [Index](../i/index.md) (BSE DCI)**: Tracks the performance of domestic companies [listed](../l/listed.md) on the BSE. -- **Foreign Company [Index](../i/index.md) (FCI)**: Tracks the performance of foreign companies with listings on the BSE. -- **Botswana [Bond](../b/bond.md) [Index](../i/index.md) (BBI)**: Tracks the performance of the [bond market](../b/bond_market.md). +- **Botswana Stock [Exchange](../e/exchange.md) Domestic Company [Index](../i/index_instrument.md) (BSE DCI)**: Tracks the performance of domestic companies [listed](../l/listed.md) on the BSE. +- **Foreign Company [Index](../i/index_instrument.md) (FCI)**: Tracks the performance of foreign companies with listings on the BSE. +- **Botswana [Bond](../b/bond.md) [Index](../i/index_instrument.md) (BBI)**: Tracks the performance of the [bond market](../b/bond_market.md). ## Major Listed Companies diff --git a/en/pedia/b/brazilian_stock_exchange_(b3).md b/en/pedia/b/brazilian_stock_exchange_(b3).md index 0e285b39..f3970635 100644 --- a/en/pedia/b/brazilian_stock_exchange_(b3).md +++ b/en/pedia/b/brazilian_stock_exchange_(b3).md @@ -23,8 +23,8 @@ B3 is organized into various segments for trading and services: ## Major Indices B3 operates several significant [market](../m/market.md) indices, which serve as benchmarks for the performance of various [market](../m/market.md) segments: -- **IBOVESPA (IBOV)**: The most well-known [index](../i/index.md) in Brazil that tracks the performance of the most traded [stocks](../s/stock.md) on B3. -- **IBRX-50**: An [index](../i/index.md) composed of the 50 most [liquid](../l/liquid.md) [stocks](../s/stock.md). +- **IBOVESPA (IBOV)**: The most well-known [index](../i/index_instrument.md) in Brazil that tracks the performance of the most traded [stocks](../s/stock.md) on B3. +- **IBRX-50**: An [index](../i/index_instrument.md) composed of the 50 most [liquid](../l/liquid.md) [stocks](../s/stock.md). - **IBX**: Tracks a broader [range](../r/range.md) of [stocks](../s/stock.md) based on [liquidity](../l/liquidity.md) and trading [volume](../v/volume.md). - **SMAL11**: Focuses on smaller-cap companies. - **ICON**: Represents companies within the consumer sector. diff --git a/en/pedia/b/breadth_indicator.md b/en/pedia/b/breadth_indicator.md index 44e31ef6..234a653d 100644 --- a/en/pedia/b/breadth_indicator.md +++ b/en/pedia/b/breadth_indicator.md @@ -16,7 +16,7 @@ The [McClellan Oscillator](../m/mcclellan_oscillator.md) is a [momentum](../m/mo ### McClellan Summation Index -The McClellan Summation [Index](../i/index.md) is a longer-term version of the [McClellan Oscillator](../m/mcclellan_oscillator.md). It is calculated by summing the daily [McClellan Oscillator](../m/mcclellan_oscillator.md) values. The Summation [Index](../i/index.md) provides a broader view of [market](../m/market.md) trends, helping to confirm longer-term trends and identify major [market](../m/market.md) turning points. A rising Summation [Index](../i/index.md) suggests a bullish [market](../m/market.md) environment, while a falling Summation [Index](../i/index.md) indicates bearish conditions. +The McClellan Summation [Index](../i/index_instrument.md) is a longer-term version of the [McClellan Oscillator](../m/mcclellan_oscillator.md). It is calculated by summing the daily [McClellan Oscillator](../m/mcclellan_oscillator.md) values. The Summation [Index](../i/index_instrument.md) provides a broader view of [market](../m/market.md) trends, helping to confirm longer-term trends and identify major [market](../m/market.md) turning points. A rising Summation [Index](../i/index_instrument.md) suggests a bullish [market](../m/market.md) environment, while a falling Summation [Index](../i/index_instrument.md) indicates bearish conditions. ### New Highs/New Lows @@ -24,7 +24,7 @@ The New Highs/New Lows [indicator](../i/indicator.md) tracks the number of [stoc ### TRIN (Arms Index) -The TRIN, also known as the Arms [Index](../i/index.md), is a [volume](../v/volume.md)-based breadth [indicator](../i/indicator.md) that compares the ratio of advancing to declining [stocks](../s/stock.md) with the ratio of advancing [volume](../v/volume.md) to declining [volume](../v/volume.md). Values above 1 suggest that more [volume](../v/volume.md) is going into declining [stocks](../s/stock.md), indicating bearish sentiment. Conversely, values below 1 indicate that more [volume](../v/volume.md) is going into advancing [stocks](../s/stock.md), suggesting bullish sentiment. +The TRIN, also known as the Arms [Index](../i/index_instrument.md), is a [volume](../v/volume.md)-based breadth [indicator](../i/indicator.md) that compares the ratio of advancing to declining [stocks](../s/stock.md) with the ratio of advancing [volume](../v/volume.md) to declining [volume](../v/volume.md). Values above 1 suggest that more [volume](../v/volume.md) is going into declining [stocks](../s/stock.md), indicating bearish sentiment. Conversely, values below 1 indicate that more [volume](../v/volume.md) is going into advancing [stocks](../s/stock.md), suggesting bullish sentiment. ## Importance of Breadth Indicators diff --git a/en/pedia/b/breakout_confirmation.md b/en/pedia/b/breakout_confirmation.md index d3210da6..71662fc9 100644 --- a/en/pedia/b/breakout_confirmation.md +++ b/en/pedia/b/breakout_confirmation.md @@ -43,7 +43,7 @@ Certain [candlestick patterns](../c/candlestick_patterns.md) can indicate the st Numerous [technical indicators](../t/technical_indicators.md) assist traders in confirming breakouts: - **Moving Averages**: Breakouts above or below moving averages (like the 50-day or [200-day moving average](../1/200-day_moving_average.md)) are often seen as significant. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: An RSI moving above 70 or below 30 can confirm [momentum](../m/momentum.md) in [breakout](../b/breakout.md) directions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: An RSI moving above 70 or below 30 can confirm [momentum](../m/momentum.md) in [breakout](../b/breakout.md) directions. - **[Bollinger Bands](../b/bollinger_bands.md)**: Breakouts outside [Bollinger Bands](../b/bollinger_bands.md) can indicate strong price movements. - **MACD (Moving Average Convergence [Divergence](../d/divergence.md))**: A MACD crossover can confirm [breakout](../b/breakout.md) trends. diff --git a/en/pedia/b/breakout_failures.md b/en/pedia/b/breakout_failures.md index 7324c28f..1e6ee54f 100644 --- a/en/pedia/b/breakout_failures.md +++ b/en/pedia/b/breakout_failures.md @@ -35,7 +35,7 @@ Recognizing the signs of a potential [breakout](../b/breakout.md) failure can he 1. **[Volume Analysis](../v/volume_analysis.md)**: A [breakout](../b/breakout.md) should ideally be accompanied by a surge in [volume](../v/volume.md). If not, the [breakout](../b/breakout.md) may lack the strength needed for continuation. 2. **[Price Action](../p/price_action.md)**: Quick retractions after a [breakout](../b/breakout.md), especially on high [volume](../v/volume.md), indicate a failure. -3. **[Technical Indicators](../t/technical_indicators.md)**: Tools like the RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)) or MACD (Moving Average Convergence [Divergence](../d/divergence.md)) can signal [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, hinting at potential reversals. +3. **[Technical Indicators](../t/technical_indicators.md)**: Tools like the RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)) or MACD (Moving Average Convergence [Divergence](../d/divergence.md)) can signal [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, hinting at potential reversals. ### Practical Examples diff --git a/en/pedia/b/breakout_trading.md b/en/pedia/b/breakout_trading.md index 3a622b53..66f42c8b 100644 --- a/en/pedia/b/breakout_trading.md +++ b/en/pedia/b/breakout_trading.md @@ -44,7 +44,7 @@ Effective exit strategies are crucial for managing [risk](../r/risk.md) and real ### Classic Breakout Strategy -The classic [breakout](../b/breakout.md) strategy involves identifying [key support and resistance levels](../k/key_support_and_resistance_levels.md) on a price chart and entering trades when the price breaks through these levels. Traders often use [technical indicators](../t/technical_indicators.md) such as moving averages, [Bollinger Bands](../b/bollinger_bands.md), or the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) to confirm breakouts and filter [false signals](../f/false_signals_in_trading.md). +The classic [breakout](../b/breakout.md) strategy involves identifying [key support and resistance levels](../k/key_support_and_resistance_levels.md) on a price chart and entering trades when the price breaks through these levels. Traders often use [technical indicators](../t/technical_indicators.md) such as moving averages, [Bollinger Bands](../b/bollinger_bands.md), or the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) to confirm breakouts and filter [false signals](../f/false_signals_in_trading.md). ### Range Breakout Strategy diff --git a/en/pedia/b/breakout_trading_algorithms.md b/en/pedia/b/breakout_trading_algorithms.md index 1af0cd1c..82d1fcc0 100644 --- a/en/pedia/b/breakout_trading_algorithms.md +++ b/en/pedia/b/breakout_trading_algorithms.md @@ -62,7 +62,7 @@ Incorporating [stop-loss orders](../s/stop-loss_orders.md) and position-sizing a ### Research and Development -A successful RSI-based [breakout](../b/breakout.md) strategy leverages the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. This is combined with traditional [breakout](../b/breakout.md) signals to form a [robust](../r/robust.md) strategy. +A successful RSI-based [breakout](../b/breakout.md) strategy leverages the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. This is combined with traditional [breakout](../b/breakout.md) signals to form a [robust](../r/robust.md) strategy. ### Algorithm Implementation diff --git a/en/pedia/b/bubble.md b/en/pedia/b/bubble.md index 4db38df1..1a4dc4d2 100644 --- a/en/pedia/b/bubble.md +++ b/en/pedia/b/bubble.md @@ -12,7 +12,7 @@ Understanding the lifecycle of a bubble can be crucial for traders to develop an ## Historical Examples of Market Bubbles ### The Dot-com Bubble (1997-2000) -One of the most famous examples is the dot-com bubble of the late 1990s. Internet-based companies saw exorbitant valuations despite having little to no profits. When the [market](../m/market.md) corrected in 2000, many companies failed, and the [NASDAQ](../n/nasdaq.md) [index](../i/index.md) lost nearly 80% of its [value](../v/value.md). +One of the most famous examples is the dot-com bubble of the late 1990s. Internet-based companies saw exorbitant valuations despite having little to no profits. When the [market](../m/market.md) corrected in 2000, many companies failed, and the [NASDAQ](../n/nasdaq.md) [index](../i/index_instrument.md) lost nearly 80% of its [value](../v/value.md). ### The Housing Bubble (2007-2008) The [housing bubble](../h/housing_bubble.md) of the mid-2000s saw property prices soar, only to crash, leading to a global [financial crisis](../f/financial_crisis.md). Loose lending standards and speculative investment in [mortgage](../m/mortgage.md)-backed securities amplified the bubble's magnitude. diff --git a/en/pedia/b/buenos_aires_stock_exchange_(bcba).md b/en/pedia/b/buenos_aires_stock_exchange_(bcba).md index 2879e234..ce35a5fc 100644 --- a/en/pedia/b/buenos_aires_stock_exchange_(bcba).md +++ b/en/pedia/b/buenos_aires_stock_exchange_(bcba).md @@ -38,11 +38,11 @@ The BCBA's trading hours are generally from 11:00 AM to 5:00 PM local time (GMT- ### Merval Index -The Merval [Index](../i/index.md) (Mercado de Valores) is the flagship [index](../i/index.md) of the BCBA. It tracks the performance of the 20 most heavily traded [stocks](../s/stock.md) on the [exchange](../e/exchange.md). The Merval [Index](../i/index.md) is often considered a [benchmark](../b/benchmark.md) for the Argentine [stock market](../s/stock_market.md). +The Merval [Index](../i/index_instrument.md) (Mercado de Valores) is the flagship [index](../i/index_instrument.md) of the BCBA. It tracks the performance of the 20 most heavily traded [stocks](../s/stock.md) on the [exchange](../e/exchange.md). The Merval [Index](../i/index_instrument.md) is often considered a [benchmark](../b/benchmark.md) for the Argentine [stock market](../s/stock_market.md). ### M.AR Maturity Index -The M.AR [Maturity](../m/maturity.md) [Index](../i/index.md) focuses on the performance of sovereign and corporate bonds. Its primary aim is to provide insights into the [fixed income](../f/fixed_income.md) [market](../m/market.md) in Argentina. +The M.AR [Maturity](../m/maturity.md) [Index](../i/index_instrument.md) focuses on the performance of sovereign and corporate bonds. Its primary aim is to provide insights into the [fixed income](../f/fixed_income.md) [market](../m/market.md) in Argentina. ## Market Segmentation diff --git a/en/pedia/b/bull_market.md b/en/pedia/b/bull_market.md index af20431b..c3500d27 100644 --- a/en/pedia/b/bull_market.md +++ b/en/pedia/b/bull_market.md @@ -40,7 +40,7 @@ Recognizing a [bull](../b/bull.md) [market](../m/market.md) early can be profita ### Technical Indicators -[Technical analysis](../t/technical_analysis.md) involves studying past [market](../m/market.md) data to predict future price movements. Common indicators include moving averages, the [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and the moving average convergence [divergence](../d/divergence.md) (MACD). +[Technical analysis](../t/technical_analysis.md) involves studying past [market](../m/market.md) data to predict future price movements. Common indicators include moving averages, the [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and the moving average convergence [divergence](../d/divergence.md) (MACD). ### Fundamental Analysis diff --git a/en/pedia/b/bull_market_strategies.md b/en/pedia/b/bull_market_strategies.md index 5fd9f99b..60c884c8 100644 --- a/en/pedia/b/bull_market_strategies.md +++ b/en/pedia/b/bull_market_strategies.md @@ -32,9 +32,9 @@ Even in a [bull market](../b/bull_market.md), [value investing](../v/value_inves ## Leveraged and Inverse ETFs -[Leveraged ETFs](../l/leveraged_etfs.md) aim to amplify the returns of an [underlying](../u/underlying.md) [index](../i/index.md) using financial [derivatives](../d/derivatives.md) and [debt](../d/debt.md). These can be used to [capitalize](../c/capitalize.md) on short-term trends within a [bull market](../b/bull_market.md). However, they come with higher [risk](../r/risk.md) and are generally not recommended for long-term holding. +[Leveraged ETFs](../l/leveraged_etfs.md) aim to amplify the returns of an [underlying](../u/underlying.md) [index](../i/index_instrument.md) using financial [derivatives](../d/derivatives.md) and [debt](../d/debt.md). These can be used to [capitalize](../c/capitalize.md) on short-term trends within a [bull market](../b/bull_market.md). However, they come with higher [risk](../r/risk.md) and are generally not recommended for long-term holding. -1. **2x or 3x [Bull](../b/bull.md) ETFs**: These funds seek to deliver double or triple the daily performance of an [index](../i/index.md). Examples include the ProShares Ultra S&P500 (SSO) and Direxion Daily S&P 500 [Bull](../b/bull.md) 3X [Shares](../s/shares.md) (SPXL). +1. **2x or 3x [Bull](../b/bull.md) ETFs**: These funds seek to deliver double or triple the daily performance of an [index](../i/index_instrument.md). Examples include the ProShares Ultra S&P500 (SSO) and Direxion Daily S&P 500 [Bull](../b/bull.md) 3X [Shares](../s/shares.md) (SPXL). 2. **[Inverse ETFs](../i/inverse_etfs.md) for Hedging**: While [leveraged ETFs](../l/leveraged_etfs.md) aim for amplified gains, [inverse ETFs](../i/inverse_etfs.md) can be used to [hedge](../h/hedge.md) positions by shorting. These are valuable for mitigating risks when a [market](../m/market.md) [correction](../c/correction.md) is anticipated. ## IPO Investing diff --git a/en/pedia/b/bull_trap.md b/en/pedia/b/bull_trap.md index 70639fd2..ab037cff 100644 --- a/en/pedia/b/bull_trap.md +++ b/en/pedia/b/bull_trap.md @@ -16,7 +16,7 @@ A [bull](../b/bull.md) trap is a false signal indicating that the price of a [fi Recognizing [bull](../b/bull.md) traps can be challenging, especially for novice traders. However, certain [technical indicators](../t/technical_indicator.md) and patterns can help traders identify potential [bull](../b/bull.md) traps: 1. **False Breakouts**: A [false breakout](../f/false_breakout.md) occurs when the price temporarily moves above a resistance level, only to fall back below it shortly afterward. Monitoring the [volume](../v/volume.md) during breakouts can help identify [false signals](../f/false_signals_in_trading.md). -2. **[Divergence](../d/divergence.md) in [Technical Indicators](../t/technical_indicator.md)**: [Divergence](../d/divergence.md) between price movements and [technical indicators](../t/technical_indicator.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can signal a potential [bull](../b/bull.md) trap. For instance, if the price is rising but the RSI is falling, the [uptrend](../u/uptrend.md) may not be sustainable. +2. **[Divergence](../d/divergence.md) in [Technical Indicators](../t/technical_indicator.md)**: [Divergence](../d/divergence.md) between price movements and [technical indicators](../t/technical_indicator.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can signal a potential [bull](../b/bull.md) trap. For instance, if the price is rising but the RSI is falling, the [uptrend](../u/uptrend.md) may not be sustainable. 3. **[Candlestick Patterns](../c/candlestick_patterns.md)**: Certain [candlestick patterns](../c/candlestick_patterns.md), such as shooting stars or bearish engulfing patterns, can indicate a potential [bull](../b/bull.md) trap. These patterns suggest that selling pressure is building up even if the price initially rises. ## Impact of Bull Traps diff --git a/en/pedia/b/bullish_divergence.md b/en/pedia/b/bullish_divergence.md index 1112d04f..c94112ea 100644 --- a/en/pedia/b/bullish_divergence.md +++ b/en/pedia/b/bullish_divergence.md @@ -4,7 +4,7 @@ Bullish [divergence](../d/divergence.md) is a popular concept in [technical anal ## Introduction to Bullish Divergence -Bullish [divergence](../d/divergence.md) occurs when the price of an [asset](../a/asset.md) is in a [downtrend](../d/downtrend.md), making lower lows, while a technical [indicator](../i/indicator.md), such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD), is making higher lows. This [divergence](../d/divergence.md) suggests that the bearish [momentum](../m/momentum.md) is weakening, and a [reversal](../r/reversal.md) or upward movement may be imminent. +Bullish [divergence](../d/divergence.md) occurs when the price of an [asset](../a/asset.md) is in a [downtrend](../d/downtrend.md), making lower lows, while a technical [indicator](../i/indicator.md), such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD), is making higher lows. This [divergence](../d/divergence.md) suggests that the bearish [momentum](../m/momentum.md) is weakening, and a [reversal](../r/reversal.md) or upward movement may be imminent. ## Types of Indicators Used for Bullish Divergence diff --git a/en/pedia/b/bullish_harami.md b/en/pedia/b/bullish_harami.md index 28689579..5803ba67 100644 --- a/en/pedia/b/bullish_harami.md +++ b/en/pedia/b/bullish_harami.md @@ -40,7 +40,7 @@ To confirm a Bullish Harami pattern and increase the reliability of the signal, 1. **[Volume](../v/volume.md):** A noticeable increase in [volume](../v/volume.md) during the formation of the second candle can indicate stronger buying [interest](../i/interest.md). 2. **Subsequent Bullish Candles:** Further bullish candles following the Harami pattern signal that the [trend reversal](../t/trend_reversal.md) is more likely. -3. **[Technical Indicators](../t/technical_indicator.md):** Complementary indicators, like [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), or other [momentum indicators](../m/momentum_indicators.md) showing [oversold](../o/oversold.md) conditions can add credence to the [reversal](../r/reversal.md) signal. +3. **[Technical Indicators](../t/technical_indicator.md):** Complementary indicators, like [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), or other [momentum indicators](../m/momentum_indicators.md) showing [oversold](../o/oversold.md) conditions can add credence to the [reversal](../r/reversal.md) signal. ## Example of a Bullish Harami diff --git a/en/pedia/b/bureau_of_labor_statistics_(bls).md b/en/pedia/b/bureau_of_labor_statistics_(bls).md index ec8d286b..d8c8d371 100644 --- a/en/pedia/b/bureau_of_labor_statistics_(bls).md +++ b/en/pedia/b/bureau_of_labor_statistics_(bls).md @@ -34,7 +34,7 @@ The JOLTS program provides job openings, hires, and separations data, which can ### Inflation and Prices -BLS’s price [statistics](../s/statistics.md) include the Consumer Price [Index](../i/index.md) (CPI) and the Producer Price [Index](../i/index.md) (PPI), which are essential for gauging [inflation](../i/inflation.md) and price changes in the [economy](../e/economy.md). +BLS’s price [statistics](../s/statistics.md) include the Consumer Price [Index](../i/index_instrument.md) (CPI) and the Producer Price [Index](../i/index_instrument.md) (PPI), which are essential for gauging [inflation](../i/inflation.md) and price changes in the [economy](../e/economy.md). #### Consumer Price Index (CPI) diff --git a/en/pedia/b/bursa_istanbul.md b/en/pedia/b/bursa_istanbul.md index c509a43f..9e244869 100644 --- a/en/pedia/b/bursa_istanbul.md +++ b/en/pedia/b/bursa_istanbul.md @@ -39,10 +39,10 @@ The trading system uses a continuous auction method for [matching orders](../m/m ## Indexes Borsa Istanbul has several indexes that provide insights into the performance of the [market](../m/market.md). Some key indexes include: -- **BIST 100 [Index](../i/index.md):** Comprising the top 100 [stocks](../s/stock.md) by [market capitalization](../m/market_capitalization.md) and [liquidity](../l/liquidity.md), it serves as the main [benchmark](../b/benchmark.md). +- **BIST 100 [Index](../i/index_instrument.md):** Comprising the top 100 [stocks](../s/stock.md) by [market capitalization](../m/market_capitalization.md) and [liquidity](../l/liquidity.md), it serves as the main [benchmark](../b/benchmark.md). - **BIST 50 and BIST 30:** Subsets of the BIST 100, representing the top 50 and top 30 [stocks](../s/stock.md) respectively. - **Sector Indexes:** These measure the performance of [stocks](../s/stock.md) in specific sectors like banking, industrial, and services. -- **[Corporate Governance](../c/corporate_governance.md) [Index](../i/index.md):** Tracks the performance of companies that adhere to good [corporate governance](../c/corporate_governance.md) practices. +- **[Corporate Governance](../c/corporate_governance.md) [Index](../i/index_instrument.md):** Tracks the performance of companies that adhere to good [corporate governance](../c/corporate_governance.md) practices. ## Technological Infrastructure diff --git a/en/pedia/b/buy-side.md b/en/pedia/b/buy-side.md index 99b8dfef..dcd5689f 100644 --- a/en/pedia/b/buy-side.md +++ b/en/pedia/b/buy-side.md @@ -24,7 +24,7 @@ Example: California Public Employees' Retirement System (CalPERS) ([calpers.ca.g #### Mutual Funds Mutual funds pool [money](../m/money.md) from [multiple](../m/multiple.md) investors to purchase a diversified portfolio of securities. Each [investor](../i/investor.md) owns [shares](../s/shares.md) in the [mutual fund](../m/mutual_fund.md), which represent a part of these [holdings](../h/holdings.md). Mutual funds are managed by professional portfolio managers who make investment decisions in line with the [fund](../f/fund.md)'s stated objectives. -Example: Vanguard Group ([vanguard.com](https://www.vanguard.com)) is one of the largest [mutual fund](../m/mutual_fund.md) companies globally, known for its low-cost [index](../i/index.md) funds and retirement accounts. +Example: Vanguard Group ([vanguard.com](https://www.vanguard.com)) is one of the largest [mutual fund](../m/mutual_fund.md) companies globally, known for its low-cost [index](../i/index_instrument.md) funds and retirement accounts. #### Sovereign Wealth Funds Sovereign [wealth](../w/wealth.md) funds are state-owned investment funds or entities that manage a country's reserves. These funds invest in various [asset](../a/asset.md) classes to achieve economic and financial objectives, such as stabilizing the [economy](../e/economy.md) and accumulating savings for future generations. @@ -71,7 +71,7 @@ Compliance teams within buy-side firms monitor adherence to regulatory requireme ### Challenges and Future Trends -Buy-side firms face a variety of challenges, including [market](../m/market.md) [volatility](../v/volatility.md), increased competition, and evolving regulatory requirements. Additionally, the rise of [passive investment strategies](../p/passive_investment_strategies.md), such as [index](../i/index.md) funds, is creating pressure on traditional [active management](../a/active_management.md) approaches. +Buy-side firms face a variety of challenges, including [market](../m/market.md) [volatility](../v/volatility.md), increased competition, and evolving regulatory requirements. Additionally, the rise of [passive investment strategies](../p/passive_investment_strategies.md), such as [index](../i/index_instrument.md) funds, is creating pressure on traditional [active management](../a/active_management.md) approaches. Future trends in the buy-side [industry](../i/industry.md) include the increasing use of ESG (Environmental, Social, and Governance) criteria in investment decisions, the growth of alternative investments, and advancements in fintech that may further transform trading and [asset management](../a/asset_management.md). diff --git a/en/pedia/b/buy_and_hold.md b/en/pedia/b/buy_and_hold.md index 41e691c8..61f2dbd2 100644 --- a/en/pedia/b/buy_and_hold.md +++ b/en/pedia/b/buy_and_hold.md @@ -7,7 +7,7 @@ ## Historical Context - **Origins**: The concept of "Buy and [Hold](../h/hold.md)" has been around for decades but was popularized by renowned investors like Warren Buffett and [Benjamin Graham](../b/benjamin_graham.md). Warren Buffett's investment philosophy is largely grounded in the principles of [value investing](../v/value_investing.md) introduced by [Benjamin Graham](../b/benjamin_graham.md). -- **Empirical Evidence**: Historical data often supports the efficacy of the "Buy and [Hold](../h/hold.md)" strategy. For instance, the S&P 500 [index](../i/index.md), which represents a broad cross-section of the U.S. equities [market](../m/market.md), has shown a long-term average [annual return](../a/annual_return.md) of about 7% to 10%. +- **Empirical Evidence**: Historical data often supports the efficacy of the "Buy and [Hold](../h/hold.md)" strategy. For instance, the S&P 500 [index](../i/index_instrument.md), which represents a broad cross-section of the U.S. equities [market](../m/market.md), has shown a long-term average [annual return](../a/annual_return.md) of about 7% to 10%. ## Underlying Principles @@ -65,7 +65,7 @@ Individual companies could face issues such as poor management decisions, operat Warren Buffett is often cited as one of the most successful proponents of the "Buy and [Hold](../h/hold.md)" strategy. His [holding company](../h/holding_company.md), [Berkshire Hathaway](../b/berkshire_hathaway.md), invests in companies with strong fundamentals and favorable long-term prospects. Buffett's philosophy centers on buying quality companies at reasonable prices and holding them indefinitely. ### **John Bogle and Vanguard** -[John Bogle](../j/john_bogle.md), the founder of Vanguard Group, is another pioneer of the "Buy and [Hold](../h/hold.md)" strategy. He advocated for low-cost [index](../i/index.md) funds as the best vehicle for individual investors to achieve [market](../m/market.md) returns. Vanguard's [index](../i/index.md) funds, which are passively managed, have performed well over long periods, serving as another testament to the efficacy of "Buy and [Hold](../h/hold.md)." +[John Bogle](../j/john_bogle.md), the founder of Vanguard Group, is another pioneer of the "Buy and [Hold](../h/hold.md)" strategy. He advocated for low-cost [index](../i/index_instrument.md) funds as the best vehicle for individual investors to achieve [market](../m/market.md) returns. Vanguard's [index](../i/index_instrument.md) funds, which are passively managed, have performed well over long periods, serving as another testament to the efficacy of "Buy and [Hold](../h/hold.md)." - [Berkshire Hathaway](https://www.berkshirehathaway.com/). - [Vanguard](https://www.vanguard.com/). diff --git a/en/pedia/b/buy_and_hold_strategy.md b/en/pedia/b/buy_and_hold_strategy.md index afb61b18..74b5df6a 100644 --- a/en/pedia/b/buy_and_hold_strategy.md +++ b/en/pedia/b/buy_and_hold_strategy.md @@ -28,7 +28,7 @@ As a passive strategy, [Buy and Hold](../b/buy_and_hold.md) does not require fre ### Implementation Steps -1. **Research and Select Investments:** Conduct thorough research to select fundamentally strong investments with the potential for long-term growth. Often, investors choose [stocks](../s/stock.md) of well-established companies or diversified [index](../i/index.md) funds. +1. **Research and Select Investments:** Conduct thorough research to select fundamentally strong investments with the potential for long-term growth. Often, investors choose [stocks](../s/stock.md) of well-established companies or diversified [index](../i/index_instrument.md) funds. 2. **Diversify Portfolio:** Build a diversified portfolio by including various [asset](../a/asset.md) classes to mitigate [risk](../r/risk.md). 3. **Set Investment Goals:** Define clear investment goals and time horizons. 4. **Invest Consistently:** Regularly invest in the portfolio, often through dollar-cost averaging, to avoid attempting to time the [market](../m/market.md). @@ -40,7 +40,7 @@ As a passive strategy, [Buy and Hold](../b/buy_and_hold.md) does not require fre Warren Buffett, CEO of [Berkshire Hathaway](../b/berkshire_hathaway.md), is one of the most iconic proponents of the [Buy and Hold](../b/buy_and_hold.md) strategy. His investment philosophy emphasizes buying fundamentally strong companies and holding them indefinitely. His success has turned [Berkshire Hathaway](../b/berkshire_hathaway.md) into a diversified [holding company](../h/holding_company.md) with significant investments in various sectors. #### Vanguard Group -The Vanguard Group, founded by John C. Bogle, is an [investment management](../i/investment_management.md) company known for its low-cost [index](../i/index.md) funds and ETFs that facilitate [Buy and Hold](../b/buy_and_hold.md) [investing](../i/investing.md). Vanguard's philosophy encourages long-term [investing](../i/investing.md) and [diversification](../d/diversification.md). [Vanguard Group](https://www.vanguard.com) +The Vanguard Group, founded by John C. Bogle, is an [investment management](../i/investment_management.md) company known for its low-cost [index](../i/index_instrument.md) funds and ETFs that facilitate [Buy and Hold](../b/buy_and_hold.md) [investing](../i/investing.md). Vanguard's philosophy encourages long-term [investing](../i/investing.md) and [diversification](../d/diversification.md). [Vanguard Group](https://www.vanguard.com) ### Case Studies and Examples @@ -48,7 +48,7 @@ The Vanguard Group, founded by John C. Bogle, is an [investment management](../i Investors who bought Coca-Cola stock several decades ago and held onto it have seen substantial returns. The company’s consistent performance and dividends have exemplified the success of the [Buy and Hold](../b/buy_and_hold.md) approach. #### Example 2: S&P 500 Index Funds -[Investing](../i/investing.md) in S&P 500 [index](../i/index.md) funds is a popular choice for [Buy and Hold](../b/buy_and_hold.md) investors. Historically, the S&P 500 has delivered an average [annual return](../a/annual_return.md) of about 10%, making it a reliable long-term investment. +[Investing](../i/investing.md) in S&P 500 [index](../i/index_instrument.md) funds is a popular choice for [Buy and Hold](../b/buy_and_hold.md) investors. Historically, the S&P 500 has delivered an average [annual return](../a/annual_return.md) of about 10%, making it a reliable long-term investment. ### Conclusion diff --git a/en/pedia/b/buy_side_strategies.md b/en/pedia/b/buy_side_strategies.md index ee51a606..3bcb5385 100644 --- a/en/pedia/b/buy_side_strategies.md +++ b/en/pedia/b/buy_side_strategies.md @@ -10,7 +10,7 @@ Buy side firms manage large pools of [capital](../c/capital.md) and aim to gener BlackRock is one of the largest [investment management](../i/investment_management.md) firms globally, managing assets worth trillions of dollars. They provide a broad [range](../r/range.md) of investment services and solutions to institutional and retail clients. More information can be found on their [official website](https://www.blackrock.com). ### Vanguard Group -Vanguard is known for its innovative approach to [investment management](../i/investment_management.md), particularly with [index](../i/index.md) funds and ETFs. They focus on providing low-cost investment solutions to their clients. For more details, visit their [official website](https://www.vanguard.com). +Vanguard is known for its innovative approach to [investment management](../i/investment_management.md), particularly with [index](../i/index_instrument.md) funds and ETFs. They focus on providing low-cost investment solutions to their clients. For more details, visit their [official website](https://www.vanguard.com). ### Fidelity Investments Fidelity is a diversified financial services company [offering](../o/offering.md) a [range](../r/range.md) of services, including [investment management](../i/investment_management.md), [retirement planning](../r/retirement_planning.md), and [brokerage services](../b/brokerage_services.md). Learn more on their [official website](https://www.fidelity.com). diff --git a/en/pedia/b/buy_the_dips.md b/en/pedia/b/buy_the_dips.md index e1382af5..b56f371f 100644 --- a/en/pedia/b/buy_the_dips.md +++ b/en/pedia/b/buy_the_dips.md @@ -30,14 +30,14 @@ Before diving deeper into the strategy, it's essential to understand why dips oc ### Components of an Algorithmic Dips Buying Strategy 1. **[Market](../m/market.md) Scanning Algorithms**: These algorithms continuously scan the [market](../m/market.md) for assets that meet predefined criteria, such as specific percentage drops or deviations from moving averages. -2. **Signal Generation**: Once a potential dip is identified, the algorithm generates a buy signal based on [technical indicators](../t/technical_indicator.md) like RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), or [Bollinger Bands](../b/bollinger_band.md). +2. **Signal Generation**: Once a potential dip is identified, the algorithm generates a buy signal based on [technical indicators](../t/technical_indicator.md) like RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), or [Bollinger Bands](../b/bollinger_band.md). 3. **[Execution Algorithms](../e/execution_algorithms.md)**: These algorithms execute buy orders at optimal prices, often using techniques like VWAP ([Volume](../v/volume.md) [Weighted Average](../w/weighted_average.md) Price) to minimize [market](../m/market.md) impact. 4. **[Portfolio Management](../p/par.md)**: Managing the aggregate [risk](../r/risk.md) and [return](../r/return.md) profiles of the portfolio by dynamically adjusting allocations based on the strength or weakness of dip signals. 5. **[Backtesting](../b/backtesting.md) and [Optimization](../o/optimization.md)**: Continuous testing of algorithms on historical data to ensure robustness and optimize parameters to improve future performance. ### Examples of Algorithmic Indicators for Dip Buying -1. **RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md))**: An RSI below 30 is typically considered [oversold](../o/oversold.md), indicating a potential dip-buying opportunity. +1. **RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md))**: An RSI below 30 is typically considered [oversold](../o/oversold.md), indicating a potential dip-buying opportunity. 2. **[Bollinger Bands](../b/bollinger_band.md)**: Buy signals are generated when prices touch or fall below the lower Bollinger Band, suggesting that the [asset](../a/asset.md) is [oversold](../o/oversold.md). 3. **Moving Averages**: Buying when an [asset](../a/asset.md)'s price moves below a significant moving average (e.g., [200-day moving average](../1/200-day_moving_average.md)), assuming the overall [trend](../t/trend.md) remains bullish. diff --git a/en/pedia/b/buy_to_cover.md b/en/pedia/b/buy_to_cover.md index ea8a1979..93e5a7d4 100644 --- a/en/pedia/b/buy_to_cover.md +++ b/en/pedia/b/buy_to_cover.md @@ -47,7 +47,7 @@ A [stop-loss order](../s/stop-loss_order.md) is a pre-determined instruction to ### Timing the Market -Some traders employ [technical analysis](../t/technical_analysis.md) and [market timing](../m/market_timing.md) to decide the optimal moment to buy to cover. Indicators such as moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)) can signal potential reversals, suggesting it might be time to close the short position. +Some traders employ [technical analysis](../t/technical_analysis.md) and [market timing](../m/market_timing.md) to decide the optimal moment to buy to cover. Indicators such as moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)) can signal potential reversals, suggesting it might be time to close the short position. ### Partial Covering diff --git a/en/pedia/c/cape_ratio.md b/en/pedia/c/cape_ratio.md index 182e1b80..c1985cb9 100644 --- a/en/pedia/c/cape_ratio.md +++ b/en/pedia/c/cape_ratio.md @@ -12,7 +12,7 @@ The CAPE ratio is calculated using the following formula: \[ \text{CAPE Ratio} = \frac{\text{Current Price of the S&P 500 Index}}{\text{average real [earnings](../e/earnings.md) of the S&P 500 companies over the past 10 years}} \] -Here, "real [earnings](../e/earnings.md)" refer to [earnings](../e/earnings.md) adjusted for [inflation](../i/inflation.md), typically using the Consumer Price [Index](../i/index.md) (CPI). +Here, "real [earnings](../e/earnings.md)" refer to [earnings](../e/earnings.md) adjusted for [inflation](../i/inflation.md), typically using the Consumer Price [Index](../i/index_instrument.md) (CPI). ### Steps to Calculate CAPE Ratio diff --git a/en/pedia/c/capital_gains_strategies.md b/en/pedia/c/capital_gains_strategies.md index d4c5655d..f1253f58 100644 --- a/en/pedia/c/capital_gains_strategies.md +++ b/en/pedia/c/capital_gains_strategies.md @@ -7,7 +7,7 @@ [Momentum trading](../m/momentum_trading.md) is based on the idea that assets that have been performing well [will](../w/will.md) continue to perform well in the [near term](../n/near_term.md). The concept relies on the inertia of an [asset](../a/asset.md)'s price movements. ### Key Concepts: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** A [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It oscillates between 0 and 100. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** A [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It oscillates between 0 and 100. - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD):** Shows the relationship between two moving averages of a [security](../s/security.md)’s price. The MACD is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA. - **Price [Volume](../v/volume.md) [Trend](../t/trend.md) (PVT):** Combines price and [volume](../v/volume.md) in a single [indicator](../i/indicator.md) that shows the amount of [money](../m/money.md) moving in and out of a [security](../s/security.md). @@ -21,7 +21,7 @@ Algorithms identify [momentum](../m/momentum.md) by using indicators like RSI an ### Key Concepts: - **[Bollinger Bands](../b/bollinger_bands.md):** These are [volatility](../v/volatility.md) bands placed above and below a moving average. [Volatility](../v/volatility.md) is based on the [standard deviation](../s/standard_deviation.md), which changes as [volatility](../v/volatility.md) increases and decreases. - **[Z-Score](../z/z-score.md):** Measures the number of standard deviations an element is from the mean. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** Indicates [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** Indicates [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). ### Algorithmic Approach: Algorithms compute the historical average and [standard deviation](../s/standard_deviation.md) of [asset](../a/asset.md) prices and identify instances when the price moves significantly away from this mean. Buy or sell signals are triggered when the price falls outside the bands for a specified number of standard deviations. diff --git a/en/pedia/c/capitulation.md b/en/pedia/c/capitulation.md index efb84441..720e85f3 100644 --- a/en/pedia/c/capitulation.md +++ b/en/pedia/c/capitulation.md @@ -18,7 +18,7 @@ The [market sentiment](../m/market_sentiment.md) becomes overwhelmingly negative ### 3. Oversold Conditions -[Technical indicators](../t/technical_indicator.md) such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) may show that the [market](../m/market.md) is in [oversold](../o/oversold.md) territory. An RSI below 30 is often taken as a sign that an [asset](../a/asset.md) is [oversold](../o/oversold.md), indicating potential for a rebound. +[Technical indicators](../t/technical_indicator.md) such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) may show that the [market](../m/market.md) is in [oversold](../o/oversold.md) territory. An RSI below 30 is often taken as a sign that an [asset](../a/asset.md) is [oversold](../o/oversold.md), indicating potential for a rebound. ### 4. Sharp Price Decline diff --git a/en/pedia/c/caracas_stock_exchange_(bvc).md b/en/pedia/c/caracas_stock_exchange_(bvc).md index 374a570b..7f690453 100644 --- a/en/pedia/c/caracas_stock_exchange_(bvc).md +++ b/en/pedia/c/caracas_stock_exchange_(bvc).md @@ -54,11 +54,11 @@ The trading volumes and price fluctuations on the BVC serve as indicators of dom ### Caracas Stock Exchange Index (IBC) -The [principal](../p/principal.md) [index](../i/index.md) of the BVC, IBC tracks the performance of the most actively traded [stocks](../s/stock.md). It's a key [indicator](../i/indicator.md) used by investors to gauge overall [market sentiment](../m/market_sentiment.md). +The [principal](../p/principal.md) [index](../i/index_instrument.md) of the BVC, IBC tracks the performance of the most actively traded [stocks](../s/stock.md). It's a key [indicator](../i/indicator.md) used by investors to gauge overall [market sentiment](../m/market_sentiment.md). ### Financial Sector Index (FSA) -Focused on banking and financial institutions, the FSA [index](../i/index.md) tracks the sector's performance, important given the outsized role [finance](../f/finance.md) plays in Venezuela's [economy](../e/economy.md). +Focused on banking and financial institutions, the FSA [index](../i/index_instrument.md) tracks the sector's performance, important given the outsized role [finance](../f/finance.md) plays in Venezuela's [economy](../e/economy.md). ## Technological Adaptations diff --git a/en/pedia/c/casablanca_stock_exchange_(cse).md b/en/pedia/c/casablanca_stock_exchange_(cse).md index ae5c8f04..03d7e2c5 100644 --- a/en/pedia/c/casablanca_stock_exchange_(cse).md +++ b/en/pedia/c/casablanca_stock_exchange_(cse).md @@ -11,7 +11,7 @@ The CSE was established in 1929 as the "Office de Compensation des Valeurs Mobil ### Milestones - **1997**: Implementation of an electronic trading system. -- **2000**: Introduction of the MASI [index](../i/index.md). +- **2000**: Introduction of the MASI [index](../i/index_instrument.md). - **2004**: Launch of new [market](../m/market.md) operations and trading platforms. - **2016**: Adoption of the NSC V900 [trading platform](../t/trading_platform.md) from [Euronext](../e/euronext.md). @@ -35,8 +35,8 @@ This [market](../m/market.md) is designed for the trading of large volumes of [s The CSE operates a number of [market](../m/market.md) indices, with the most significant ones being: -- **MASI (Moroccan All [Shares](../s/shares.md) [Index](../i/index.md))**: A comprehensive [index](../i/index.md) covering all [listed](../l/listed.md) companies. -- **MADEX (Moroccan Most Active [Shares](../s/shares.md) [Index](../i/index.md))**: Includes the most actively traded [stocks](../s/stock.md). +- **MASI (Moroccan All [Shares](../s/shares.md) [Index](../i/index_instrument.md))**: A comprehensive [index](../i/index_instrument.md) covering all [listed](../l/listed.md) companies. +- **MADEX (Moroccan Most Active [Shares](../s/shares.md) [Index](../i/index_instrument.md))**: Includes the most actively traded [stocks](../s/stock.md). - **CFG 25**: Comprising 25 [stocks](../s/stock.md) selected by CFG Group. These indices provide benchmarks for [fund](../f/fund.md) managers and are used to gauge the overall [market](../m/market.md) performance. diff --git a/en/pedia/c/cash_balance_pension_plan.md b/en/pedia/c/cash_balance_pension_plan.md index 0a7b7604..8093da4d 100644 --- a/en/pedia/c/cash_balance_pension_plan.md +++ b/en/pedia/c/cash_balance_pension_plan.md @@ -4,12 +4,12 @@ A Cash Balance [Pension Plan](../p/pension_plan.md) is a type of retirement plan ## Understanding Cash Balance Pension Plans -A Cash Balance [Pension Plan](../p/pension_plan.md) defines the benefit in terms of a stated [account balance](../a/account_balance.md). Each participant has an account, which is credited annually with a "pay [credit](../c/credit.md)" (such as a percentage of compensation) and an "[interest](../i/interest.md) [credit](../c/credit.md)" (either a fixed rate or a variable rate that is linked to an [index](../i/index.md)). These credits accumulate over time, thereby increasing the participant's cash balance. +A Cash Balance [Pension Plan](../p/pension_plan.md) defines the benefit in terms of a stated [account balance](../a/account_balance.md). Each participant has an account, which is credited annually with a "pay [credit](../c/credit.md)" (such as a percentage of compensation) and an "[interest](../i/interest.md) [credit](../c/credit.md)" (either a fixed rate or a variable rate that is linked to an [index](../i/index_instrument.md)). These credits accumulate over time, thereby increasing the participant's cash balance. ### Key Features 1. **Employer Contributions:** Unlike traditional pension plans where benefits are based on years of service and salary history, Cash Balance Plans are determined by contributions from the employer. -2. **[Interest](../i/interest.md) Credits:** The [account balance](../a/account_balance.md) also grows by applying annual [interest](../i/interest.md) credits. Employers typically decide on the [interest](../i/interest.md)-crediting rate, which can [range](../r/range.md) from a [fixed interest rate](../f/fixed_interest_rate.md) or a variable rate pegged to an [index](../i/index.md) like the [U.S. Treasury](../u/u.s._treasury.md) rates. +2. **[Interest](../i/interest.md) Credits:** The [account balance](../a/account_balance.md) also grows by applying annual [interest](../i/interest.md) credits. Employers typically decide on the [interest](../i/interest.md)-crediting rate, which can [range](../r/range.md) from a [fixed interest rate](../f/fixed_interest_rate.md) or a variable rate pegged to an [index](../i/index_instrument.md) like the [U.S. Treasury](../u/u.s._treasury.md) rates. 3. **Portability:** One significant feature of a Cash Balance Plan is that it provides employees with an easier to understand, individual [account balance](../a/account_balance.md) which can be rolled over to another retirement account if the employee leaves the company. 4. **[Vesting](../v/vesting.md):** Similar to other pension plans, Cash Balance Plans have [vesting](../v/vesting.md) schedules. Full [vesting](../v/vesting.md) can be immediate or can occur over a period of time, usually not exceeding 3 years. 5. **Predictability:** From an employer's perspective, these plans provide more predictable contribution rates compared to traditional defined benefit plans. diff --git a/en/pedia/c/chaikin_oscillator.md b/en/pedia/c/chaikin_oscillator.md index b239bdfa..c4e136dc 100644 --- a/en/pedia/c/chaikin_oscillator.md +++ b/en/pedia/c/chaikin_oscillator.md @@ -46,7 +46,7 @@ The most fundamental use of the Chaikin [Oscillator](../o/oscillator.md) in trad [Divergence](../d/divergence.md) analysis is another potent application. A [bullish divergence](../b/bullish_divergence.md) occurs when the price makes a new low, but the [oscillator](../o/oscillator.md) does not follow along, indicating possible accumulation. Conversely, a [bearish divergence](../b/bearish_divergence.md) occurs when the price makes a new high without the [oscillator](../o/oscillator.md) doing the same, suggesting [distribution](../d/distribution.md). Both forms of [divergence](../d/divergence.md) can help in identifying potential [reversal](../r/reversal.md) points. ### Integration with Other Indicators -Traders often integrate the Chaikin [Oscillator](../o/oscillator.md) with other [technical indicators](../t/technical_indicators.md) like Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) to improve the accuracy of their [trading strategies](../t/trading_strategies.md). By confirming signals across [multiple](../m/multiple.md) indicators, traders can enhance their decision-making processes. +Traders often integrate the Chaikin [Oscillator](../o/oscillator.md) with other [technical indicators](../t/technical_indicators.md) like Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) to improve the accuracy of their [trading strategies](../t/trading_strategies.md). By confirming signals across [multiple](../m/multiple.md) indicators, traders can enhance their decision-making processes. ## Advantages and Limitations @@ -67,7 +67,7 @@ Let's consider a practical example involving the Chaikin [Oscillator](../o/oscil ### Setup - [Asset](../a/asset.md): XYZ [Corporation](../c/corporation.md) Stock - Timeframe: Daily Chart -- Indicators: Chaikin [Oscillator](../o/oscillator.md), 50-day Simple Moving Average (SMA), [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) +- Indicators: Chaikin [Oscillator](../o/oscillator.md), 50-day Simple Moving Average (SMA), [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) ### Trading Rules 1. **Buy Signal:** diff --git a/en/pedia/c/chande_momentum_oscillator.md b/en/pedia/c/chande_momentum_oscillator.md index bd450cb2..b40b75e0 100644 --- a/en/pedia/c/chande_momentum_oscillator.md +++ b/en/pedia/c/chande_momentum_oscillator.md @@ -1,6 +1,6 @@ # Chande Momentum Oscillator (CMO) -The Chande [Momentum](../m/momentum.md) [Oscillator](../o/oscillator.md) (CMO) is a [technical analysis](../t/technical_analysis.md) tool developed by Tushar Chande. This [indicator](../i/indicator.md) is derived from the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) and is used to identify the [momentum](../m/momentum.md) of a [financial asset](../f/financial_asset.md) by comparing the sum of all recent gains to the sum of all recent losses over a specified period. It oscillates between -100 and +100 and provides valuable insights into whether an [asset](../a/asset.md) is [overbought](../o/overbought.md) or [oversold](../o/oversold.md), thus enabling traders to make informed decisions. +The Chande [Momentum](../m/momentum.md) [Oscillator](../o/oscillator.md) (CMO) is a [technical analysis](../t/technical_analysis.md) tool developed by Tushar Chande. This [indicator](../i/indicator.md) is derived from the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) and is used to identify the [momentum](../m/momentum.md) of a [financial asset](../f/financial_asset.md) by comparing the sum of all recent gains to the sum of all recent losses over a specified period. It oscillates between -100 and +100 and provides valuable insights into whether an [asset](../a/asset.md) is [overbought](../o/overbought.md) or [oversold](../o/oversold.md), thus enabling traders to make informed decisions. ## Origins and Development @@ -49,7 +49,7 @@ The CMO can also be used to confirm the strength of a [trend](../t/trend.md). If ### Integration with Other Indicators -To minimize the [risk](../r/risk.md) of [false signals](../f/false_signals_in_trading.md), traders often use the CMO in conjunction with other indicators such as Moving Averages, [Bollinger Bands](../b/bollinger_bands.md), or the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI). +To minimize the [risk](../r/risk.md) of [false signals](../f/false_signals_in_trading.md), traders often use the CMO in conjunction with other indicators such as Moving Averages, [Bollinger Bands](../b/bollinger_bands.md), or the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI). ### Buy and Sell Signals diff --git a/en/pedia/c/chart_indicators.md b/en/pedia/c/chart_indicators.md index 551c609f..608052eb 100644 --- a/en/pedia/c/chart_indicators.md +++ b/en/pedia/c/chart_indicators.md @@ -20,7 +20,7 @@ K = 2 / (n + 1) ### Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. Oscillating between 0 and 100, RSI is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. Oscillating between 0 and 100, RSI is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). ```markdown RSI = 100 - (100 / (1 + RS)) RS = Average [Gain](../g/gain.md) / Average Loss diff --git a/en/pedia/c/chart_patterns.md b/en/pedia/c/chart_patterns.md index 7347e857..510b0ed7 100644 --- a/en/pedia/c/chart_patterns.md +++ b/en/pedia/c/chart_patterns.md @@ -83,7 +83,7 @@ Machine learning and [artificial intelligence](../a/artificial_intelligence_in_t ### Integration with Other Indicators -Chart patterns are more effective when combined with other [technical indicators](../t/technical_indicators.md) like moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and [Bollinger Bands](../b/bollinger_bands.md). This multi-faceted approach can [yield](../y/yield.md) more [robust](../r/robust.md) [trading signals](../t/trading_signals.md). +Chart patterns are more effective when combined with other [technical indicators](../t/technical_indicators.md) like moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and [Bollinger Bands](../b/bollinger_bands.md). This multi-faceted approach can [yield](../y/yield.md) more [robust](../r/robust.md) [trading signals](../t/trading_signals.md). ### Examples from Industry diff --git a/en/pedia/c/charting_techniques.md b/en/pedia/c/charting_techniques.md index cf12300d..98d85584 100644 --- a/en/pedia/c/charting_techniques.md +++ b/en/pedia/c/charting_techniques.md @@ -28,7 +28,7 @@ Heikin-Ashi charts modify the traditional [candlestick](../c/candlestick.md) cha ## Indicators and Overlays -Indicators and overlays are mathematical calculations based on price, [volume](../v/volume.md), and/or [open interest](../o/open_interest.md) that are pasted on the price chart or displayed separately. Some of the popular indicators are Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md). +Indicators and overlays are mathematical calculations based on price, [volume](../v/volume.md), and/or [open interest](../o/open_interest.md) that are pasted on the price chart or displayed separately. Some of the popular indicators are Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md). ### Moving Averages diff --git a/en/pedia/c/chicago_board_options_exchange_(cboe).md b/en/pedia/c/chicago_board_options_exchange_(cboe).md index c813a57d..ff6c0a91 100644 --- a/en/pedia/c/chicago_board_options_exchange_(cboe).md +++ b/en/pedia/c/chicago_board_options_exchange_(cboe).md @@ -10,7 +10,7 @@ The Chicago Board [Options](../o/options.md) [Exchange](../e/exchange.md) was cr ### Milestones - **1977**: Introduction of call [options](../o/options.md) on stock indexes. - **1983**: Launch of the S&P 100 ([OEX](../o/oex.md)) and S&P 500 (SPX) [index options](../i/index_options.md). -- **2004**: Introduction of the CBOE [Volatility](../v/volatility.md) [Index](../i/index.md) (VIX), which has become a widely-followed measure of [market](../m/market.md) [volatility](../v/volatility.md). +- **2004**: Introduction of the CBOE [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX), which has become a widely-followed measure of [market](../m/market.md) [volatility](../v/volatility.md). ## Structure and Governance @@ -60,7 +60,7 @@ For [futures](../f/futures.md) products, CBOE must also comply with regulations CBOE has made a significant impact on [financial markets](../f/financial_market.md) since its inception. It has introduced innovative products, advanced trading technologies, and contributed to [market](../m/market.md) stability and [efficiency](../e/efficiency.md). ### Innovation in Derivatives -CBOE has been at the forefront of developing new [derivatives](../d/derivatives.md) products, particularly in the [options](../o/options.md) and [volatility](../v/volatility.md) space. The introduction of products like the VIX [index](../i/index.md) has provided traders with new tools to manage [risk](../r/risk.md) and express [market](../m/market.md) views. +CBOE has been at the forefront of developing new [derivatives](../d/derivatives.md) products, particularly in the [options](../o/options.md) and [volatility](../v/volatility.md) space. The introduction of products like the VIX [index](../i/index_instrument.md) has provided traders with new tools to manage [risk](../r/risk.md) and express [market](../m/market.md) views. ### Market Liquidity and Depth By [offering](../o/offering.md) a variety of products and maintaining a [robust](../r/robust.md) trading [infrastructure](../i/infrastructure.md), CBOE enhances [market](../m/market.md) [liquidity](../l/liquidity.md) and depth. This allows for more efficient pricing and [execution](../e/execution.md) of trades, benefiting both retail and institutional investors. diff --git a/en/pedia/c/chicago_mercantile_exchange_(cme).md b/en/pedia/c/chicago_mercantile_exchange_(cme).md index 08bbe1b2..ce586963 100644 --- a/en/pedia/c/chicago_mercantile_exchange_(cme).md +++ b/en/pedia/c/chicago_mercantile_exchange_(cme).md @@ -18,7 +18,7 @@ The CME was originally established in 1898 as the Chicago Butter and Egg Board. Throughout the 20th century, the CME expanded its product offerings. In 1961, it introduced the first financial [futures contract](../f/futures_contract.md)—the International Monetary [Market](../m/market.md) (IMM)—which allowed participants to [hedge](../h/hedge.md) against [foreign exchange risk](../f/foreign_exchange_risk.md). This innovation marked the beginning of [financial derivatives](../f/financial_derivatives.md) trading. -The 1970s saw further innovation with the introduction of [interest rate futures](../i/interest_rate_futures.md). In 1982, the CME launched [equity](../e/equity.md) [index futures](../i/index_futures.md), with the debut of the S&P 500 [futures contract](../f/futures_contract.md). This was followed by various other [equity](../e/equity.md) [index](../i/index.md) products, solidifying the CME’s role as a key player in the [financial markets](../f/financial_market.md). +The 1970s saw further innovation with the introduction of [interest rate futures](../i/interest_rate_futures.md). In 1982, the CME launched [equity](../e/equity.md) [index futures](../i/index_futures.md), with the debut of the S&P 500 [futures contract](../f/futures_contract.md). This was followed by various other [equity](../e/equity.md) [index](../i/index_instrument.md) products, solidifying the CME’s role as a key player in the [financial markets](../f/financial_market.md). ### Technological Advancements diff --git a/en/pedia/c/chittagong_stock_exchange_(cse).md b/en/pedia/c/chittagong_stock_exchange_(cse).md index 780955b0..e91bcb46 100644 --- a/en/pedia/c/chittagong_stock_exchange_(cse).md +++ b/en/pedia/c/chittagong_stock_exchange_(cse).md @@ -41,7 +41,7 @@ The CASPI is one of the primary indicators of the overall performance of the CSE ### CSE Selective Categories Index (CSCX) -The CSCX is a [weighted](../w/weighted.md) [index](../i/index.md) that includes selected securities from various categories such as the [Manufacturing](../m/manufacturing.md) & Service, [Finance](../f/finance.md) & Leasing, [Insurance](../i/insurance.md), and Mutual Funds sectors. It is designed to reflect the performance of the top-tier companies on the [exchange](../e/exchange.md). +The CSCX is a [weighted](../w/weighted.md) [index](../i/index_instrument.md) that includes selected securities from various categories such as the [Manufacturing](../m/manufacturing.md) & Service, [Finance](../f/finance.md) & Leasing, [Insurance](../i/insurance.md), and Mutual Funds sectors. It is designed to reflect the performance of the top-tier companies on the [exchange](../e/exchange.md). ## Technological Advancements diff --git a/en/pedia/c/collateralized_mortgage_obligation_(cmo).md b/en/pedia/c/collateralized_mortgage_obligation_(cmo).md index 25c33779..da9053dc 100644 --- a/en/pedia/c/collateralized_mortgage_obligation_(cmo).md +++ b/en/pedia/c/collateralized_mortgage_obligation_(cmo).md @@ -16,7 +16,7 @@ CMOs divide the pool of [mortgage](../m/mortgage.md) loans into distinct classes 4. **Accrual or Z [Tranches](../t/tranches.md)**: These [tranches](../t/tranches.md) do not receive [interest](../i/interest.md) payments initially. Instead, the [interest](../i/interest.md) they are supposed to earn is added to the [principal](../p/principal.md) balance. This structure results in a larger [payment](../p/payment.md) sum when the tranche matures. -5. **Inverse Floater [Tranches](../t/tranches.md)**: The [interest](../i/interest.md) rates on these [tranches](../t/tranches.md) fluctuate inversely to a specific [index](../i/index.md) rate, such as the LIBOR. They are typically used by investors looking to [hedge](../h/hedge.md) against falling [interest](../i/interest.md) rates. +5. **Inverse Floater [Tranches](../t/tranches.md)**: The [interest](../i/interest.md) rates on these [tranches](../t/tranches.md) fluctuate inversely to a specific [index](../i/index_instrument.md) rate, such as the LIBOR. They are typically used by investors looking to [hedge](../h/hedge.md) against falling [interest](../i/interest.md) rates. ## Risks Associated with CMOs diff --git a/en/pedia/c/colombia_stock_exchange_(bvc).md b/en/pedia/c/colombia_stock_exchange_(bvc).md index 54be1f50..f51d9176 100644 --- a/en/pedia/c/colombia_stock_exchange_(bvc).md +++ b/en/pedia/c/colombia_stock_exchange_(bvc).md @@ -46,7 +46,7 @@ BVC has established various partnerships and collaborations with international e ## Market Performance and Statistics -The Colombian Stock [Exchange](../e/exchange.md) is represented by several key indices, with the COLCAP [Index](../i/index.md) being the most widely followed [indicator](../i/indicator.md) of [market](../m/market.md) performance. The COLCAP [Index](../i/index.md) comprises the top 20 most [liquid](../l/liquid.md) [stocks](../s/stock.md) on the BVC. Historical performance data of the COLCAP [Index](../i/index.md) and other [market](../m/market.md) [statistics](../s/statistics.md) are typically available on the BVC’s official website: [BVC Market Data](https://www.bvc.com.co/). +The Colombian Stock [Exchange](../e/exchange.md) is represented by several key indices, with the COLCAP [Index](../i/index_instrument.md) being the most widely followed [indicator](../i/indicator.md) of [market](../m/market.md) performance. The COLCAP [Index](../i/index_instrument.md) comprises the top 20 most [liquid](../l/liquid.md) [stocks](../s/stock.md) on the BVC. Historical performance data of the COLCAP [Index](../i/index_instrument.md) and other [market](../m/market.md) [statistics](../s/statistics.md) are typically available on the BVC’s official website: [BVC Market Data](https://www.bvc.com.co/). ## Future Prospects and Innovations diff --git a/en/pedia/c/colombo_stock_exchange_(cse).md b/en/pedia/c/colombo_stock_exchange_(cse).md index 9f7ded26..993dd316 100644 --- a/en/pedia/c/colombo_stock_exchange_(cse).md +++ b/en/pedia/c/colombo_stock_exchange_(cse).md @@ -4,7 +4,7 @@ The Colombo Stock [Exchange](../e/exchange.md) (CSE) is the primary stock [excha ## Overview -The CSE is located in Colombo, the commercial [capital](../c/capital.md) of Sri Lanka. It is a modern [exchange](../e/exchange.md) that operates with an electronic trading system, ensuring efficient and transparent trading activities. The main [index](../i/index.md) of the CSE is the All Share Price [Index](../i/index.md) (ASPI), which tracks the performance of all [listed](../l/listed.md) companies. Another important [index](../i/index.md) is the S&P Sri Lanka 20 (S&P SL20), which includes the top 20 largest and most [liquid](../l/liquid.md) [stocks](../s/stock.md) in the [market](../m/market.md). +The CSE is located in Colombo, the commercial [capital](../c/capital.md) of Sri Lanka. It is a modern [exchange](../e/exchange.md) that operates with an electronic trading system, ensuring efficient and transparent trading activities. The main [index](../i/index_instrument.md) of the CSE is the All Share Price [Index](../i/index_instrument.md) (ASPI), which tracks the performance of all [listed](../l/listed.md) companies. Another important [index](../i/index_instrument.md) is the S&P Sri Lanka 20 (S&P SL20), which includes the top 20 largest and most [liquid](../l/liquid.md) [stocks](../s/stock.md) in the [market](../m/market.md). ### Key Functions diff --git a/en/pedia/c/commingled_fund.md b/en/pedia/c/commingled_fund.md index 7610e255..be82c901 100644 --- a/en/pedia/c/commingled_fund.md +++ b/en/pedia/c/commingled_fund.md @@ -54,7 +54,7 @@ Commingled funds are subject to various levels of regulation, depending on their ### Vanguard Mutual Funds -One of the most well-known providers of mutual funds is Vanguard. They [offer](../o/offer.md) a vast array of commingled funds aimed at different investment strategies, ranging from [index](../i/index.md) funds to actively managed funds. Investors can browse through their offerings on their [official site](https://investor.vanguard.com/mutual-funds/). +One of the most well-known providers of mutual funds is Vanguard. They [offer](../o/offer.md) a vast array of commingled funds aimed at different investment strategies, ranging from [index](../i/index_instrument.md) funds to actively managed funds. Investors can browse through their offerings on their [official site](https://investor.vanguard.com/mutual-funds/). ### BlackRock Hedge Funds diff --git a/en/pedia/c/commodity_channel_index_(cci).md b/en/pedia/c/commodity_channel_index_(cci).md index ded773ed..eb601260 100644 --- a/en/pedia/c/commodity_channel_index_(cci).md +++ b/en/pedia/c/commodity_channel_index_(cci).md @@ -1,6 +1,6 @@ # Commodity Channel Index (CCI) -The [Commodity](../c/commodity.md) Channel [Index](../i/index.md) (CCI) is a versatile [technical analysis](../t/technical_analysis.md) [indicator](../i/indicator.md) introduced by Donald Lambert in 1980. Originally developed to identify cyclical trends in commodities markets, it has since been adapted to a variety of financial instruments including [stocks](../s/stock.md), indices, and currencies. This [indicator](../i/indicator.md) helps traders identify [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions, potential buy and sell signals, and divergences that may indicate potential [market](../m/market.md) reversals. +The [Commodity](../c/commodity.md) Channel [Index](../i/index_instrument.md) (CCI) is a versatile [technical analysis](../t/technical_analysis.md) [indicator](../i/indicator.md) introduced by Donald Lambert in 1980. Originally developed to identify cyclical trends in commodities markets, it has since been adapted to a variety of financial instruments including [stocks](../s/stock.md), indices, and currencies. This [indicator](../i/indicator.md) helps traders identify [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions, potential buy and sell signals, and divergences that may indicate potential [market](../m/market.md) reversals. ## Basics of CCI @@ -43,13 +43,13 @@ Divergences between the CCI and the actual price can signal potential reversals. ### Combining with Other Indicators -Many traders use CCI in conjunction with other [technical indicators](../t/technical_indicators.md) to validate signals. Moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)) are commonly paired with CCI to form comprehensive [trading strategies](../t/trading_strategies.md). +Many traders use CCI in conjunction with other [technical indicators](../t/technical_indicators.md) to validate signals. Moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)) are commonly paired with CCI to form comprehensive [trading strategies](../t/trading_strategies.md). ## Examples of Trading Platforms and Tools Using CCI ### TradingView -[TradingView](../t/tradingview.md) (https://www.[tradingview](../t/tradingview.md).com) is a widely-used platform that provides an extensive suite of tools for [technical analysis](../t/technical_analysis.md), including the [Commodity](../c/commodity.md) Channel [Index](../i/index.md) (CCI). Traders can easily add CCI to their charts and customize it to their preferred time periods. +[TradingView](../t/tradingview.md) (https://www.[tradingview](../t/tradingview.md).com) is a widely-used platform that provides an extensive suite of tools for [technical analysis](../t/technical_analysis.md), including the [Commodity](../c/commodity.md) Channel [Index](../i/index_instrument.md) (CCI). Traders can easily add CCI to their charts and customize it to their preferred time periods. ### MetaTrader 4 & 5 @@ -87,7 +87,7 @@ Despite its versatility, CCI is not without criticisms. Some of the commonly cit ## Conclusion -The [Commodity](../c/commodity.md) Channel [Index](../i/index.md) (CCI) remains a valuable tool in the arsenal of many traders and investors across various [financial markets](../f/financial_market.md). Its ability to identify [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions, potential [trend](../t/trend.md) reversals, and divergences makes it a versatile [indicator](../i/indicator.md) for both short-term and long-term [trading strategies](../t/trading_strategies.md). As with any [technical analysis](../t/technical_analysis.md) tool, its effectiveness increases when used in conjunction with other indicators and a well-rounded understanding of [market](../m/market.md) conditions. +The [Commodity](../c/commodity.md) Channel [Index](../i/index_instrument.md) (CCI) remains a valuable tool in the arsenal of many traders and investors across various [financial markets](../f/financial_market.md). Its ability to identify [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions, potential [trend](../t/trend.md) reversals, and divergences makes it a versatile [indicator](../i/indicator.md) for both short-term and long-term [trading strategies](../t/trading_strategies.md). As with any [technical analysis](../t/technical_analysis.md) tool, its effectiveness increases when used in conjunction with other indicators and a well-rounded understanding of [market](../m/market.md) conditions. For more detailed and specific applications, traders often rely on platforms like [TradingView](../t/tradingview.md), MetaTrader, [Thinkorswim](../t/thinkorswim.md), and [NinjaTrader](../n/ninjatrader.md), each of which provides [robust](../r/robust.md) tools for integrating CCI into comprehensive [trading strategies](../t/trading_strategies.md). diff --git a/en/pedia/c/commodity_index_funds.md b/en/pedia/c/commodity_index_funds.md index 1e64fbbf..b5bf3ac5 100644 --- a/en/pedia/c/commodity_index_funds.md +++ b/en/pedia/c/commodity_index_funds.md @@ -1,30 +1,30 @@ # Commodity Index Funds -[Commodity](../c/commodity.md) [index](../i/index.md) funds represent a class of financial instruments specifically designed to track the performance of a basket of commodities. These financial products provide exposure to various [raw materials](../r/raw_materials.md) such as energy, metals, and agricultural products. Investors use these funds to diversify portfolios, [hedge](../h/hedge.md) against [inflation](../i/inflation.md), and take advantage of price movements in the commodities markets. +[Commodity](../c/commodity.md) [index](../i/index_instrument.md) funds represent a class of financial instruments specifically designed to track the performance of a basket of commodities. These financial products provide exposure to various [raw materials](../r/raw_materials.md) such as energy, metals, and agricultural products. Investors use these funds to diversify portfolios, [hedge](../h/hedge.md) against [inflation](../i/inflation.md), and take advantage of price movements in the commodities markets. ## Overview -A [commodity](../c/commodity.md) [index fund](../i/index_fund.md) tracks the prices of a [representative sample](../r/representative_sample.md) of commodities, such as [crude oil](../c/crude_oil.md), natural gas, gold, silver, corn, wheat, and coffee. These funds are typically structured as [exchange](../e/exchange.md)-traded funds (ETFs) or mutual funds. By [investing](../i/investing.md) in [commodity](../c/commodity.md) [index](../i/index.md) funds, investors can [gain](../g/gain.md) exposure to the [underlying](../u/underlying.md) commodities without the need to directly purchase and store the physical goods. +A [commodity](../c/commodity.md) [index fund](../i/index_fund.md) tracks the prices of a [representative sample](../r/representative_sample.md) of commodities, such as [crude oil](../c/crude_oil.md), natural gas, gold, silver, corn, wheat, and coffee. These funds are typically structured as [exchange](../e/exchange.md)-traded funds (ETFs) or mutual funds. By [investing](../i/investing.md) in [commodity](../c/commodity.md) [index](../i/index_instrument.md) funds, investors can [gain](../g/gain.md) exposure to the [underlying](../u/underlying.md) commodities without the need to directly purchase and store the physical goods. ## Types of Commodity Indices -There are several prominent [commodity](../c/commodity.md) indices that [commodity](../c/commodity.md) [index](../i/index.md) funds may track, including: +There are several prominent [commodity](../c/commodity.md) indices that [commodity](../c/commodity.md) [index](../i/index_instrument.md) funds may track, including: -1. **S&P GSCI (Goldman Sachs [Commodity](../c/commodity.md) [Index](../i/index.md))**: One of the oldest and most widely followed [commodity](../c/commodity.md) indices. It covers a broad [range](../r/range.md) of commodities and is heavily [weighted](../w/weighted.md) towards energy products like [crude oil](../c/crude_oil.md). +1. **S&P GSCI (Goldman Sachs [Commodity](../c/commodity.md) [Index](../i/index_instrument.md))**: One of the oldest and most widely followed [commodity](../c/commodity.md) indices. It covers a broad [range](../r/range.md) of commodities and is heavily [weighted](../w/weighted.md) towards energy products like [crude oil](../c/crude_oil.md). -2. **[Bloomberg](../b/bloomberg.md) [Commodity](../c/commodity.md) [Index](../i/index.md) (BCOM)**: Diversified [index](../i/index.md) with exposure to energy, agriculture, and metals. +2. **[Bloomberg](../b/bloomberg.md) [Commodity](../c/commodity.md) [Index](../i/index_instrument.md) (BCOM)**: Diversified [index](../i/index_instrument.md) with exposure to energy, agriculture, and metals. -3. **Thomson [Reuters](../r/reuters.md)/CoreCommodity CRB [Index](../i/index.md)**: This [index](../i/index.md) provides exposure to a diverse array of commodities and is often used as a [benchmark](../b/benchmark.md) for the [commodity](../c/commodity.md) [market](../m/market.md). +3. **Thomson [Reuters](../r/reuters.md)/CoreCommodity CRB [Index](../i/index_instrument.md)**: This [index](../i/index_instrument.md) provides exposure to a diverse array of commodities and is often used as a [benchmark](../b/benchmark.md) for the [commodity](../c/commodity.md) [market](../m/market.md). -4. **Rogers International [Commodity](../c/commodity.md) [Index](../i/index.md) (RICI)**: Designed to be a broad [commodity](../c/commodity.md) [index](../i/index.md) that has significant weightings in agricultural and energy commodities. +4. **Rogers International [Commodity](../c/commodity.md) [Index](../i/index_instrument.md) (RICI)**: Designed to be a broad [commodity](../c/commodity.md) [index](../i/index_instrument.md) that has significant weightings in agricultural and energy commodities. -5. **DBIQ Optimum [Yield](../y/yield.md) Diversified [Commodity](../c/commodity.md) [Index](../i/index.md) [Excess Return](../e/excess_return.md)**: Focuses on optimizing the [yield](../y/yield.md) by selecting commodities with the best roll yields. +5. **DBIQ Optimum [Yield](../y/yield.md) Diversified [Commodity](../c/commodity.md) [Index](../i/index_instrument.md) [Excess Return](../e/excess_return.md)**: Focuses on optimizing the [yield](../y/yield.md) by selecting commodities with the best roll yields. ## Structure and Investment Methodology -[Commodity](../c/commodity.md) [index](../i/index.md) funds can invest in commodities through various methods: +[Commodity](../c/commodity.md) [index](../i/index_instrument.md) funds can invest in commodities through various methods: -1. **[Futures Contracts](../f/futures_contracts.md)**: The most common approach, where the [fund](../f/fund.md) buys [futures contracts](../f/futures_contracts.md) on the commodities within the [index](../i/index.md). +1. **[Futures Contracts](../f/futures_contracts.md)**: The most common approach, where the [fund](../f/fund.md) buys [futures contracts](../f/futures_contracts.md) on the commodities within the [index](../i/index_instrument.md). 2. **Physical Commodities**: Some funds might [hold](../h/hold.md) the physical commodities, although this is less common due to storage and logistical challenges. @@ -34,12 +34,12 @@ There are several prominent [commodity](../c/commodity.md) indices that [commodi ## Key Players in Commodity Index Funds -Several financial institutions and [fund](../f/fund.md) managers [offer](../o/offer.md) [commodity](../c/commodity.md) [index](../i/index.md) funds: +Several financial institutions and [fund](../f/fund.md) managers [offer](../o/offer.md) [commodity](../c/commodity.md) [index](../i/index_instrument.md) funds: - **[iShares](../i/ishares.md) S&P GSCI [Commodity](../c/commodity.md)-Indexed [Trust](../t/trust.md) (NYSEARCA: GSG)**: Managed by BlackRock, this ETF aims to track the performance of the S&P GSCI. [iShares GSG](https://www.ishares.com/us/products/239726/ishares-sp-gsci-commodityindexed-trust-fund) -- **Invesco DB [Commodity](../c/commodity.md) [Index](../i/index.md) Tracking [Fund](../f/fund.md) (NYSEARCA: DBC)**: Tracks the DBIQ Optimum [Yield](../y/yield.md) Diversified [Commodity](../c/commodity.md) [Index](../i/index.md), focusing on [multiple](../m/multiple.md) sectors within the [commodity](../c/commodity.md) markets. +- **Invesco DB [Commodity](../c/commodity.md) [Index](../i/index_instrument.md) Tracking [Fund](../f/fund.md) (NYSEARCA: DBC)**: Tracks the DBIQ Optimum [Yield](../y/yield.md) Diversified [Commodity](../c/commodity.md) [Index](../i/index_instrument.md), focusing on [multiple](../m/multiple.md) sectors within the [commodity](../c/commodity.md) markets. [Invesco DBC](https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=investor&ticker=DBC) - **Goldman Sachs Commodities Enhanced Strategy [Fund](../f/fund.md) (GSTIX)**: A [mutual fund](../m/mutual_fund.md) [offering](../o/offering.md) exposure to a wide [range](../r/range.md) of commodities, actively managed to enhance returns. @@ -53,13 +53,13 @@ Several financial institutions and [fund](../f/fund.md) managers [offer](../o/of 3. **Accessibility**: These funds make it easier for retail investors to participate in the commodities markets without needing specialized knowledge or [infrastructure](../i/infrastructure.md). -4. **[Liquidity](../l/liquidity.md)**: Many [commodity](../c/commodity.md) [index](../i/index.md) funds, particularly ETFs, are traded on major exchanges, [offering](../o/offering.md) high [liquidity](../l/liquidity.md) and ease of trading. +4. **[Liquidity](../l/liquidity.md)**: Many [commodity](../c/commodity.md) [index](../i/index_instrument.md) funds, particularly ETFs, are traded on major exchanges, [offering](../o/offering.md) high [liquidity](../l/liquidity.md) and ease of trading. 5. **Professional Management**: Managed by professional [fund](../f/fund.md) managers who [handle](../h/handle.md) the complexities associated with [investing](../i/investing.md) in commodities. ## Risks and Considerations -1. **[Volatility](../v/volatility.md)**: [Commodity](../c/commodity.md) prices can be very volatile, leading to significant price swings in the [value](../v/value.md) of the [index](../i/index.md) funds. +1. **[Volatility](../v/volatility.md)**: [Commodity](../c/commodity.md) prices can be very volatile, leading to significant price swings in the [value](../v/value.md) of the [index](../i/index_instrument.md) funds. 2. **[Contango](../c/contango.md) and [Backwardation](../b/backwardation.md)**: [Futures](../f/futures.md)-based funds can suffer from negative roll yields during [contango](../c/contango.md) markets, where future prices are higher than spot prices, and benefit from positive roll yields in [backwardation](../b/backwardation.md) markets, where future prices are lower than spot prices. @@ -71,4 +71,4 @@ Several financial institutions and [fund](../f/fund.md) managers [offer](../o/of ## Conclusion -[Commodity](../c/commodity.md) [index](../i/index.md) funds [offer](../o/offer.md) a convenient way for investors to [gain](../g/gain.md) exposure to the commodities markets. They bring [diversification](../d/diversification.md), potential [inflation](../i/inflation.md) protection, and professional management to an investment portfolio. However, investors must also consider the inherent risks, such as [volatility](../v/volatility.md) and [contango](../c/contango.md), before committing [capital](../c/capital.md) to these financial instruments. Proper research and understanding of the specific [fund](../f/fund.md)'s strategy and [underlying](../u/underlying.md) [index](../i/index.md) are essential for informed investment decisions. \ No newline at end of file +[Commodity](../c/commodity.md) [index](../i/index_instrument.md) funds [offer](../o/offer.md) a convenient way for investors to [gain](../g/gain.md) exposure to the commodities markets. They bring [diversification](../d/diversification.md), potential [inflation](../i/inflation.md) protection, and professional management to an investment portfolio. However, investors must also consider the inherent risks, such as [volatility](../v/volatility.md) and [contango](../c/contango.md), before committing [capital](../c/capital.md) to these financial instruments. Proper research and understanding of the specific [fund](../f/fund.md)'s strategy and [underlying](../u/underlying.md) [index](../i/index_instrument.md) are essential for informed investment decisions. \ No newline at end of file diff --git a/en/pedia/c/commodity_investment_strategies.md b/en/pedia/c/commodity_investment_strategies.md index 6b32cdbe..5c14a8eb 100644 --- a/en/pedia/c/commodity_investment_strategies.md +++ b/en/pedia/c/commodity_investment_strategies.md @@ -52,7 +52,7 @@ There are various strategies that traders employ using [options](../o/options.md - **SPDR Gold [Shares](../s/shares.md) (GLD)**: Provides investors with exposure to gold prices. - **United States Oil [Fund](../f/fund.md) (USO)**: Tracks the price movements of West Texas Intermediate (WTI) light, sweet [crude oil](../c/crude_oil.md). -- **[iShares](../i/ishares.md) S&P GSCI [Commodity](../c/commodity.md)-Indexed [Trust](../t/trust.md) (GSG)**: Reflects the performance of a broad-based, production-[weighted](../w/weighted.md) [index](../i/index.md) of the global [commodity](../c/commodity.md) markets. +- **[iShares](../i/ishares.md) S&P GSCI [Commodity](../c/commodity.md)-Indexed [Trust](../t/trust.md) (GSG)**: Reflects the performance of a broad-based, production-[weighted](../w/weighted.md) [index](../i/index_instrument.md) of the global [commodity](../c/commodity.md) markets. ## Physical Commodity Investments @@ -86,11 +86,11 @@ Swaps can provide more tailored hedging solutions compared to standardized [futu ### What are Commodity Indices? -[Commodity](../c/commodity.md) indices are benchmarks composed of [multiple](../m/multiple.md) [commodity](../c/commodity.md) prices, designed to reflect the overall performance of the [commodity](../c/commodity.md) [market](../m/market.md) or a specific [commodity](../c/commodity.md) sector. Examples include the S&P GSCI (Goldman Sachs [Commodity](../c/commodity.md) [Index](../i/index.md)) and the [Bloomberg](../b/bloomberg.md) [Commodity](../c/commodity.md) [Index](../i/index.md) (BCOM). +[Commodity](../c/commodity.md) indices are benchmarks composed of [multiple](../m/multiple.md) [commodity](../c/commodity.md) prices, designed to reflect the overall performance of the [commodity](../c/commodity.md) [market](../m/market.md) or a specific [commodity](../c/commodity.md) sector. Examples include the S&P GSCI (Goldman Sachs [Commodity](../c/commodity.md) [Index](../i/index_instrument.md)) and the [Bloomberg](../b/bloomberg.md) [Commodity](../c/commodity.md) [Index](../i/index_instrument.md) (BCOM). ### Investing in Commodity Indices -Investors can [gain](../g/gain.md) exposure to [commodity](../c/commodity.md) indices through [index](../i/index.md) funds, ETFs, or mutual funds that track these indices. This allows for diversified [commodity](../c/commodity.md) exposure without the need to [trade](../t/trade.md) individual commodities. +Investors can [gain](../g/gain.md) exposure to [commodity](../c/commodity.md) indices through [index](../i/index_instrument.md) funds, ETFs, or mutual funds that track these indices. This allows for diversified [commodity](../c/commodity.md) exposure without the need to [trade](../t/trade.md) individual commodities. ### Benefits and Limitations diff --git a/en/pedia/c/commodity_spread_trading.md b/en/pedia/c/commodity_spread_trading.md index 3f84c705..2e0bbb1c 100644 --- a/en/pedia/c/commodity_spread_trading.md +++ b/en/pedia/c/commodity_spread_trading.md @@ -45,7 +45,7 @@ 2. **[Technical Analysis](../t/technical_analysis.md)** - [Technical analysis](../t/technical_analysis.md) also plays a crucial role. Traders use various charting tools and indicators to identify trends, patterns, and anomalies in [spreads](../s/spreads.md). Common tools include moving averages, [Bollinger Bands](../b/bollinger_bands.md), and [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI). + [Technical analysis](../t/technical_analysis.md) also plays a crucial role. Traders use various charting tools and indicators to identify trends, patterns, and anomalies in [spreads](../s/spreads.md). Common tools include moving averages, [Bollinger Bands](../b/bollinger_bands.md), and [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI). 3. **Statistical Analysis** diff --git a/en/pedia/c/common_stock.md b/en/pedia/c/common_stock.md index 8c4041e5..c374ab47 100644 --- a/en/pedia/c/common_stock.md +++ b/en/pedia/c/common_stock.md @@ -70,7 +70,7 @@ Common stock plays a significant role in diversified investment portfolios. Due 3. **[Income](../i/income.md) [Investing](../i/investing.md)**: Targets [stocks](../s/stock.md) that provide a reliable stream of [dividend](../d/dividend.md) [income](../i/income.md). This is often suitable for retirees or those seeking steady [income](../i/income.md). -4. **[Index Investing](../i/index_investing.md)**: Involves replicating the performance of a stock [index](../i/index.md), such as the S&P 500. This provides broad [market exposure](../m/market_exposure.md) and [diversification](../d/diversification.md), lowering [risk](../r/risk.md). +4. **[Index Investing](../i/index_investing.md)**: Involves replicating the performance of a stock [index](../i/index_instrument.md), such as the S&P 500. This provides broad [market exposure](../m/market_exposure.md) and [diversification](../d/diversification.md), lowering [risk](../r/risk.md). ## Famous Companies Known for Common Stock diff --git a/en/pedia/c/comparative_analysis.md b/en/pedia/c/comparative_analysis.md index 3dda3b21..1f3084bb 100644 --- a/en/pedia/c/comparative_analysis.md +++ b/en/pedia/c/comparative_analysis.md @@ -27,7 +27,7 @@ Based on the assumption that prices fluctuate around a mean [value](../v/value.m ### 2.3 Arbitrage Strategies -[Arbitrage](../a/arbitrage.md) involves taking advantage of price discrepancies between different markets or instruments. Examples include statistical [arbitrage](../a/arbitrage.md), [index](../i/index.md) [arbitrage](../a/arbitrage.md), and [futures](../f/futures.md) [arbitrage](../a/arbitrage.md). +[Arbitrage](../a/arbitrage.md) involves taking advantage of price discrepancies between different markets or instruments. Examples include statistical [arbitrage](../a/arbitrage.md), [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md), and [futures](../f/futures.md) [arbitrage](../a/arbitrage.md). ### 2.4 High-Frequency Trading (HFT) @@ -45,7 +45,7 @@ Similar to the [Sharpe ratio](../s/sharpe_ratio.md), but focuses on [downside ri ### 3.3 Alpha -Represents the [excess return](../e/excess_return.md) of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index.md). +Represents the [excess return](../e/excess_return.md) of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). ### 3.4 Beta diff --git a/en/pedia/c/comparative_market_analysis.md b/en/pedia/c/comparative_market_analysis.md index ad5829be..28d05e08 100644 --- a/en/pedia/c/comparative_market_analysis.md +++ b/en/pedia/c/comparative_market_analysis.md @@ -37,7 +37,7 @@ Raw data needs to be cleaned to remove any inaccuracies or inconsistencies. This Feature engineering involves creating meaningful variables from raw data that can be used in the analysis. Some common features in CMA include: - **Price Ratios**: Ratios like Price-to-[Earnings](../e/earnings.md) (P/E), Price-to-Book (P/B), and [Dividend Yield](../d/dividend_yield.md). -- **[Technical Indicators](../t/technical_indicator.md)**: Moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), [Bollinger Bands](../b/bollinger_band.md), etc. +- **[Technical Indicators](../t/technical_indicator.md)**: Moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), [Bollinger Bands](../b/bollinger_band.md), etc. - **Statistical Measures**: Mean, [median](../m/median.md), variance, [skewness](../s/skewness.md), and [kurtosis](../k/kurtosis.md). ### Model Building diff --git a/en/pedia/c/computational_algorithms.md b/en/pedia/c/computational_algorithms.md index 0abf1356..96c146be 100644 --- a/en/pedia/c/computational_algorithms.md +++ b/en/pedia/c/computational_algorithms.md @@ -27,7 +27,7 @@ **[Momentum Trading](../m/momentum_trading.md)** relies on the [momentum](../m/momentum.md) of any given [asset](../a/asset.md) price showing that price trends [will](../w/will.md) continue to move in the same direction for some period. This strategy attempts to capture gains by riding upward or downward trends in prices, presupposing that [stocks](../s/stock.md) which have performed well in the past [will](../w/will.md) continue to perform well in the future, and vice versa. **Implementation**: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It is used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It is used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). ```python def calculate_rsi(data, window): [delta](../d/delta.md) = data.diff() diff --git a/en/pedia/c/concentration_ratio.md b/en/pedia/c/concentration_ratio.md index a9a44448..7a185cba 100644 --- a/en/pedia/c/concentration_ratio.md +++ b/en/pedia/c/concentration_ratio.md @@ -72,7 +72,7 @@ While concentration ratios are useful for assessing [market](../m/market.md) str ### Herfindahl-Hirschman Index (HHI) -The **Herfindahl-Hirschman [Index](../i/index.md)** (HHI) is another measure of [market](../m/market.md) concentration, which adds the squares of the [market](../m/market.md) [shares](../s/shares.md) of all firms in the [market](../m/market.md). Unlike the Concentration Ratio, HHI considers the [distribution](../d/distribution.md) of the entire [market](../m/market.md) and penalizes more unequal distributions of [market](../m/market.md) [shares](../s/shares.md). +The **Herfindahl-Hirschman [Index](../i/index_instrument.md)** (HHI) is another measure of [market](../m/market.md) concentration, which adds the squares of the [market](../m/market.md) [shares](../s/shares.md) of all firms in the [market](../m/market.md). Unlike the Concentration Ratio, HHI considers the [distribution](../d/distribution.md) of the entire [market](../m/market.md) and penalizes more unequal distributions of [market](../m/market.md) [shares](../s/shares.md). \[ HHI = \sum_{i=1}^{N} s_i^2 \] diff --git a/en/pedia/c/conditional_value_at_risk_(cvar).md b/en/pedia/c/conditional_value_at_risk_(cvar).md index 090fc5ca..eff8bb74 100644 --- a/en/pedia/c/conditional_value_at_risk_(cvar).md +++ b/en/pedia/c/conditional_value_at_risk_(cvar).md @@ -65,7 +65,7 @@ Several tools and [software platforms](../s/software_platforms_for_trading.md) f - **RiskMetrics**: RiskMetrics provides comprehensive [risk](../r/risk.md) analytics tools, including CVaR calculation (https://www.msci.com/riskmetrics-analytics). - **MATLAB**: MATLAB offers various financial toolboxes that can calculate CVaR for different [asset](../a/asset.md) classes (https://www.mathworks.com/products/financial.html). -- **R Programming**: The `PerformanceAnalytics` package in R can be used for [financial risk](../f/financial_risk.md) assessment, including CVaR computation (https://cran.r-project.org/web/packages/PerformanceAnalytics/[index](../i/index.md).html). +- **R Programming**: The `PerformanceAnalytics` package in R can be used for [financial risk](../f/financial_risk.md) assessment, including CVaR computation (https://cran.r-project.org/web/packages/PerformanceAnalytics/[index](../i/index_instrument.md).html). ### Conclusion diff --git a/en/pedia/c/consolidation.md b/en/pedia/c/consolidation.md index 2645a06e..aba8e789 100644 --- a/en/pedia/c/consolidation.md +++ b/en/pedia/c/consolidation.md @@ -86,7 +86,7 @@ Despite the potential benefits, trading during consolidation phases presents cer Consider an algorithm designed to [trade](../t/trade.md) an [asset](../a/asset.md) like the S&P 500 ETF (SPY) during consolidation phases: 1. **Data Period**: Use daily price data for the past five years. -2. **Indicators**: Apply [Bollinger Bands](../b/bollinger_band.md) with a [20-day moving average](../1/20-day_moving_average.md) and 2 standard deviations. Use a 14-day [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI) to confirm [overbought](../o/overbought.md)/[oversold](../o/oversold.md) conditions. +2. **Indicators**: Apply [Bollinger Bands](../b/bollinger_band.md) with a [20-day moving average](../1/20-day_moving_average.md) and 2 standard deviations. Use a 14-day [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI) to confirm [overbought](../o/overbought.md)/[oversold](../o/oversold.md) conditions. 3. **Consolidation Detection**: Identify periods where [Bollinger Bands](../b/bollinger_band.md) contract and the price trades within 1 [standard deviation](../s/standard_deviation.md) of the moving average. 4. **[Trade](../t/trade.md) [Execution](../e/execution.md)**: - **[Range Trading](../r/range_trading.md)**: Buy when the price is near the lower Bollinger Band and RSI < 30. Sell when the price is near the upper Bollinger Band and RSI > 70. diff --git a/en/pedia/c/consumer_price_index_(cpi).md b/en/pedia/c/consumer_price_index_(cpi).md index 8c42d8fe..380d8284 100644 --- a/en/pedia/c/consumer_price_index_(cpi).md +++ b/en/pedia/c/consumer_price_index_(cpi).md @@ -1,6 +1,6 @@ # Consumer Price Index (CPI) -The Consumer Price [Index](../i/index.md) (CPI) is a crucial metric used to gauge [inflation](../i/inflation.md) and the overall health of an [economy](../e/economy.md). By measuring the average change in prices paid by consumers for a [basket of goods](../b/basket_of_goods.md) and services over time, the CPI provides valuable insights into the [purchasing power](../p/purchasing_power.md) of consumers and trends in [inflation](../i/inflation.md). This detailed exploration of the CPI [will](../w/will.md) cover its definition, history, methodology, uses, criticisms, and its implications for both macroeconomic policy and [personal finance](../p/personal_finance_in_trading.md). +The Consumer Price [Index](../i/index_instrument.md) (CPI) is a crucial metric used to gauge [inflation](../i/inflation.md) and the overall health of an [economy](../e/economy.md). By measuring the average change in prices paid by consumers for a [basket of goods](../b/basket_of_goods.md) and services over time, the CPI provides valuable insights into the [purchasing power](../p/purchasing_power.md) of consumers and trends in [inflation](../i/inflation.md). This detailed exploration of the CPI [will](../w/will.md) cover its definition, history, methodology, uses, criticisms, and its implications for both macroeconomic policy and [personal finance](../p/personal_finance_in_trading.md). # Definition @@ -8,7 +8,7 @@ The CPI is a statistical estimate constructed using the prices of a sample of re # History -The concept of the CPI began in the late 19th century. The modern CPI was developed after World War I, with more sophisticated and standardized methods being adopted over time. The Bureau of Labor [Statistics](../s/statistics.md) (BLS) in the United States, for instance, has been publishing the CPI since 1919. This [index](../i/index.md) has evolved in methodology and [scope](../s/scope.md), adjusting for changes in consumer habits, technologies, and economic environments. +The concept of the CPI began in the late 19th century. The modern CPI was developed after World War I, with more sophisticated and standardized methods being adopted over time. The Bureau of Labor [Statistics](../s/statistics.md) (BLS) in the United States, for instance, has been publishing the CPI since 1919. This [index](../i/index_instrument.md) has evolved in methodology and [scope](../s/scope.md), adjusting for changes in consumer habits, technologies, and economic environments. # Methodology @@ -31,11 +31,11 @@ The data for the CPI is collected through surveys and direct price measurements ## Weighting -The items within the basket are assigned weights based on their relative importance in the typical consumer's spending. This weighting process ensures that more significant consumer expenses have a greater impact on the [index](../i/index.md). +The items within the basket are assigned weights based on their relative importance in the typical consumer's spending. This weighting process ensures that more significant consumer expenses have a greater impact on the [index](../i/index_instrument.md). ## Calculating the Index -The formula used for calculating the CPI typically involves the Laspeyres [index](../i/index.md) formula: +The formula used for calculating the CPI typically involves the Laspeyres [index](../i/index_instrument.md) formula: \[ CPI = \left( \frac{\sum (P_{current} \times Q_{base})}{\sum (P_{base} \times Q_{base})} \right) \times 100 \] diff --git a/en/pedia/c/consumer_price_index_(cpi)_analysis.md b/en/pedia/c/consumer_price_index_(cpi)_analysis.md index 7f95d0a0..62c20d34 100644 --- a/en/pedia/c/consumer_price_index_(cpi)_analysis.md +++ b/en/pedia/c/consumer_price_index_(cpi)_analysis.md @@ -1,7 +1,7 @@ # Consumer Price Index (CPI) Analysis ## Introduction -The Consumer Price [Index](../i/index.md) (CPI) is a vital [economic indicator](../e/economic_indicator.md) that measures changes in the [price level](../p/price_level.md) of a [market](../m/market.md) basket of [consumer goods](../c/consumer_goods.md) and services purchased by households. Compiled and published by national statistical agencies, the CPI is a crucial tool for economists, policymakers, and investors. This comprehensive analysis [will](../w/will.md) delve into the intricacies of the CPI, its calculation methodology, significance, impact on various economic sectors, and its relevance to [algorithmic trading](../a/algorithmic_trading.md). +The Consumer Price [Index](../i/index_instrument.md) (CPI) is a vital [economic indicator](../e/economic_indicator.md) that measures changes in the [price level](../p/price_level.md) of a [market](../m/market.md) basket of [consumer goods](../c/consumer_goods.md) and services purchased by households. Compiled and published by national statistical agencies, the CPI is a crucial tool for economists, policymakers, and investors. This comprehensive analysis [will](../w/will.md) delve into the intricacies of the CPI, its calculation methodology, significance, impact on various economic sectors, and its relevance to [algorithmic trading](../a/algorithmic_trading.md). ## What is CPI? The CPI tracks the changes in the price of a specified basket of [consumer goods](../c/consumer_goods.md) and services over time, representing the [cost of living](../c/cost_of_living.md). It reflects how the average price of goods and services changes from one period to the next, [offering](../o/offering.md) insights into inflationary trends within an [economy](../e/economy.md). By observing CPI data, analysts can gauge the [purchasing power](../p/purchasing_power.md) of a [currency](../c/currency.md) and make informed economic decisions. @@ -11,7 +11,7 @@ The methodology of calculating CPI involves several key steps: 1. **Selection of the [Basket of Goods](../b/basket_of_goods.md) and Services**: The basket is composed of items that are deemed representative of typical consumer spending. This basket includes categories like housing, transportation, food and beverages, clothing, medical care, recreation, and education. 2. **Data Collection**: Prices are collected periodically from various retail outlets, service establishments, rental units, and hospitals. 3. **Weight [Assignment](../a/assignment.md)**: Each item in the basket is assigned a weight reflecting its share in total consumer expenditure. This weight is derived from household spending surveys. -4. **[Index](../i/index.md) Calculation**: The current price of each item is compared to a base period price, and a [weighted average](../w/weighted_average.md) is used to produce the overall [index](../i/index.md). The formula for CPI is typically: +4. **[Index](../i/index_instrument.md) Calculation**: The current price of each item is compared to a base period price, and a [weighted average](../w/weighted_average.md) is used to produce the overall [index](../i/index_instrument.md). The formula for CPI is typically: \[ \text{CPI} = \left( \frac{\sum (P_n \times Q_0)}{\sum (P_0 \times Q_0)} \right) \times 100 \] Where: * \( P_n \) = Price of the item in the current period @@ -20,8 +20,8 @@ The methodology of calculating CPI involves several key steps: ## Types of CPI Different types of CPI are used to focus on specific sectors or for different purposes: -1. **CPI-U**: Consumer Price [Index](../i/index.md) for All Urban Consumers -2. **CPI-W**: Consumer Price [Index](../i/index.md) for Urban Wage Earners and Clerical Workers +1. **CPI-U**: Consumer Price [Index](../i/index_instrument.md) for All Urban Consumers +2. **CPI-W**: Consumer Price [Index](../i/index_instrument.md) for Urban Wage Earners and Clerical Workers 3. **Core CPI**: Excludes food and energy prices, which are typically volatile 4. **Chained CPI**: Accounts for changes in consumer behavior and substitution between items when relative prices change @@ -55,4 +55,4 @@ Consider a scenario where a [hedge fund](../h/hedge_fund.md) uses [algorithmic t 3. **Renaissance Technologies**: Known for its pioneering work in [quantitative trading](../q/quantitative_trading.md), Renaissance Technologies integrates a variety of economic data points, including CPI, into its [trading algorithms](../t/trading_algorithms.md) to enhance predictive accuracy and [operational efficiency](../o/operational_efficiency_in_trading.md). [Renaissance Technologies](https://www.rentec.com) ## Conclusion -The Consumer Price [Index](../i/index.md) is a critical [economic indicator](../e/economic_indicator.md) that provides valuable insights into [inflation](../i/inflation.md) and cost-of-living changes. Its comprehensive methodology ensures that it accurately reflects price changes across a broad spectrum of [consumer goods](../c/consumer_goods.md) and services. Understanding CPI's significance helps policymakers, businesses, and investors make informed decisions. In the realm of [algorithmic trading](../a/algorithmic_trading.md), CPI data plays a pivotal role in shaping [trading strategies](../t/trading_strategies.md), managing [risk](../r/risk.md), and predicting [market](../m/market.md) movements, demonstrating its far-reaching impact across the economic landscape. \ No newline at end of file +The Consumer Price [Index](../i/index_instrument.md) is a critical [economic indicator](../e/economic_indicator.md) that provides valuable insights into [inflation](../i/inflation.md) and cost-of-living changes. Its comprehensive methodology ensures that it accurately reflects price changes across a broad spectrum of [consumer goods](../c/consumer_goods.md) and services. Understanding CPI's significance helps policymakers, businesses, and investors make informed decisions. In the realm of [algorithmic trading](../a/algorithmic_trading.md), CPI data plays a pivotal role in shaping [trading strategies](../t/trading_strategies.md), managing [risk](../r/risk.md), and predicting [market](../m/market.md) movements, demonstrating its far-reaching impact across the economic landscape. \ No newline at end of file diff --git a/en/pedia/c/contango.md b/en/pedia/c/contango.md index 636c3095..6709dac9 100644 --- a/en/pedia/c/contango.md +++ b/en/pedia/c/contango.md @@ -49,7 +49,7 @@ In [financial markets](../f/financial_market.md), contango can apply to [interes ### Stock Indices -Stock [index futures](../i/index_futures.md) can also exhibit contango. For example, if investors expect the [stock market](../s/stock_market.md) to rise in the future, the [futures](../f/futures.md) price of a stock [index](../i/index.md) might be higher than the current [spot price](../s/spot_price.md). +Stock [index futures](../i/index_futures.md) can also exhibit contango. For example, if investors expect the [stock market](../s/stock_market.md) to rise in the future, the [futures](../f/futures.md) price of a stock [index](../i/index_instrument.md) might be higher than the current [spot price](../s/spot_price.md). ### Foreign Exchange Markets diff --git a/en/pedia/c/contrarian_trading_strategies.md b/en/pedia/c/contrarian_trading_strategies.md index d269732a..573827bd 100644 --- a/en/pedia/c/contrarian_trading_strategies.md +++ b/en/pedia/c/contrarian_trading_strategies.md @@ -15,8 +15,8 @@ Contrarian trading is founded on the belief that [asset](../a/asset.md) prices r Contrarian [trading strategies](../t/trading_strategies.md) come in various forms. Below are some of the most commonly employed methods: -1. **[Market Sentiment Analysis](../m/market_sentiment_analysis.md)**: This method involves gauging the overall mood of the [market](../m/market.md) using indicators such as the VIX ([Volatility](../v/volatility.md) [Index](../i/index.md)), put/call ratios, and [sentiment surveys](../s/sentiment_surveys.md). -2. **[Technical Analysis](../t/technical_analysis.md)**: Contrarian traders often use [technical indicators](../t/technical_indicators.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_bands.md) to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +1. **[Market Sentiment Analysis](../m/market_sentiment_analysis.md)**: This method involves gauging the overall mood of the [market](../m/market.md) using indicators such as the VIX ([Volatility](../v/volatility.md) [Index](../i/index_instrument.md)), put/call ratios, and [sentiment surveys](../s/sentiment_surveys.md). +2. **[Technical Analysis](../t/technical_analysis.md)**: Contrarian traders often use [technical indicators](../t/technical_indicators.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_bands.md) to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. 3. **[Fundamental Analysis](../f/fundamental_analysis.md)**: Contrarian investors may study a company's fundamentals, such as [earnings](../e/earnings.md) reports, balance sheets, and [industry](../i/industry.md) trends, to identify [undervalued](../u/undervalued.md) or [overvalued](../o/overvalued.md) [stocks](../s/stock.md). 4. **[Insider Trading](../i/insider.md) Activity**: Monitoring insider buying and selling can provide insights into a company's prospects. Contrarians often consider insider activity as a contrarian [indicator](../i/indicator.md). 5. **Contrarian ETFs and Mutual Funds**: Some investment vehicles specifically cater to contrarian strategies. These funds often invest in assets that are out of favor with the general [market](../m/market.md). @@ -34,11 +34,11 @@ Contrarian trading requires a specific psychological mindset, as it involves tak Contrarian traders use a variety of indicators to identify potential [trade](../t/trade.md) opportunities. Some of the key indicators include: -1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: The RSI measures the speed and change of price movements. An RSI above 70 is considered [overbought](../o/overbought.md), and below 30 is considered [oversold](../o/oversold.md). +1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: The RSI measures the speed and change of price movements. An RSI above 70 is considered [overbought](../o/overbought.md), and below 30 is considered [oversold](../o/oversold.md). 2. **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: MACD is a [trend](../t/trend.md)-following [momentum](../m/momentum.md) [indicator](../i/indicator.md) that shows the relationship between two moving averages. [Divergence](../d/divergence.md) between MACD and [price action](../p/price_action.md) can signal potential reversals. 3. **[Bollinger Bands](../b/bollinger_bands.md)**: These bands use [standard deviation](../s/standard_deviation.md) to establish high and low points around a moving average. Prices touching the upper band are often seen as [overbought](../o/overbought.md), while touching the lower band suggests [oversold](../o/oversold.md) conditions. 4. **Put/Call Ratio**: This ratio measures the number of [put options](../p/put_options.md) traded relative to call [options](../o/options.md). A high ratio indicates bearish sentiment, while a low ratio suggests bullish sentiment. -5. **[Volatility](../v/volatility.md) [Index](../i/index.md) (VIX)**: Often referred to as the "fear gauge," the VIX measures [market](../m/market.md) [volatility](../v/volatility.md). High VIX levels indicate fear and potential buying opportunities for contrarians. +5. **[Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX)**: Often referred to as the "fear gauge," the VIX measures [market](../m/market.md) [volatility](../v/volatility.md). High VIX levels indicate fear and potential buying opportunities for contrarians. ### Notable Examples of Contrarian Traders diff --git a/en/pedia/c/corporate_finance.md b/en/pedia/c/corporate_finance.md index 46b779f9..930f3b3d 100644 --- a/en/pedia/c/corporate_finance.md +++ b/en/pedia/c/corporate_finance.md @@ -10,7 +10,7 @@ Corporate [finance](../f/finance.md) encompasses the financial activities relate - **Net [Present Value](../p/present_value.md) (NPV):** Calculates the difference between the [present value](../p/present_value.md) of cash inflows and outflows. A positive NPV indicates that the investment should theoretically increase the [firm](../f/firm.md)'s [value](../v/value.md). - **Internal [Rate of Return](../r/rate_of_return.md) (IRR):** The [discount rate](../d/discount_rate.md) that makes the NPV of an investment zero. Projects with an IRR higher than the [cost of capital](../c/cost_of_capital.md) are considered good investments. - **[Payback Period](../p/payback_period.md):** The amount of time it takes for an investment to generate an amount of cash equivalent to the initial investment. -- **Profitability [Index](../i/index.md) (PI):** The ratio of the [present value](../p/present_value.md) of future expected cash flows to the initial investment. A PI greater than 1 suggests that the NPV is positive. +- **Profitability [Index](../i/index_instrument.md) (PI):** The ratio of the [present value](../p/present_value.md) of future expected cash flows to the initial investment. A PI greater than 1 suggests that the NPV is positive. ### 2. **Capital Structure** [Capital structure](../c/capital_structure.md) refers to the mix of [debt](../d/debt.md) and [equity financing](../e/equity_financing.md) a company uses to [fund](../f/fund.md) its operations and growth. The goal is to find the optimal balance that minimizes the [cost of capital](../c/cost_of_capital.md) and maximizes returns to shareholders. Factors influencing [capital structure](../c/capital_structure.md) include: diff --git a/en/pedia/c/correction.md b/en/pedia/c/correction.md index 1c9810b3..f508184d 100644 --- a/en/pedia/c/correction.md +++ b/en/pedia/c/correction.md @@ -1,7 +1,7 @@ # Correction ## Definition -A **Correction** refers to a short-term decline in the price of a stock, [bond](../b/bond.md), [commodity](../c/commodity.md), or [index](../i/index.md), usually following a sustained increase. Corrections are generally seen as a normal part of [market cycles](../m/market_cycles.md) and occur when prices fall by 10% or more from their recent peak. +A **Correction** refers to a short-term decline in the price of a stock, [bond](../b/bond.md), [commodity](../c/commodity.md), or [index](../i/index_instrument.md), usually following a sustained increase. Corrections are generally seen as a normal part of [market cycles](../m/market_cycles.md) and occur when prices fall by 10% or more from their recent peak. ## Key Components 1. **Short-Term Decline**: Corrections typically involve a temporary drop in prices rather than a prolonged downturn. @@ -22,10 +22,10 @@ A **Correction** refers to a short-term decline in the price of a stock, [bond]( ## Example Scenario ### Stock Market Correction -- **Recent Peak**: A major stock [index](../i/index.md), such as the S&P 500, reaches a new high of 4,500 points. +- **Recent Peak**: A major stock [index](../i/index_instrument.md), such as the S&P 500, reaches a new high of 4,500 points. - **Correction Trigger**: Negative economic news, such as lower-than-expected corporate [earnings](../e/earnings.md) reports, causes [investor](../i/investor.md) concern. -- **Price Decline**: Over a few weeks, the [index](../i/index.md) falls by 10% to 4,050 points. -- **Recovery**: After the correction, [market](../m/market.md) conditions stabilize, and the [index](../i/index.md) begins to recover, moving back toward previous highs. +- **Price Decline**: Over a few weeks, the [index](../i/index_instrument.md) falls by 10% to 4,050 points. +- **Recovery**: After the correction, [market](../m/market.md) conditions stabilize, and the [index](../i/index_instrument.md) begins to recover, moving back toward previous highs. ## Differences Between Corrections and Bear Markets 1. **[Duration](../d/duration.md)**: Corrections are typically short-term, lasting a few weeks to a few months. Bear markets are prolonged periods of declining prices, lasting months to years. diff --git a/en/pedia/c/correlation_coefficient.md b/en/pedia/c/correlation_coefficient.md index ba2e85ec..70b5249b 100644 --- a/en/pedia/c/correlation_coefficient.md +++ b/en/pedia/c/correlation_coefficient.md @@ -52,7 +52,7 @@ Pair trading involves simultaneously buying and selling two highly correlated as ### Market Predictions -[Correlation](../c/correlation.md) coefficients can help in predicting [market](../m/market.md) movements by analyzing the relationships between different financial instruments. For example, a high [positive correlation](../p/positive_correlation.md) between a stock and an [index](../i/index.md) can indicate that movements in the [index](../i/index.md) might lead to similar movements in the stock. +[Correlation](../c/correlation.md) coefficients can help in predicting [market](../m/market.md) movements by analyzing the relationships between different financial instruments. For example, a high [positive correlation](../p/positive_correlation.md) between a stock and an [index](../i/index_instrument.md) can indicate that movements in the [index](../i/index_instrument.md) might lead to similar movements in the stock. ## Calculation Using Software diff --git a/en/pedia/c/cost-of-living_adjustment_(cola).md b/en/pedia/c/cost-of-living_adjustment_(cola).md index 347afe14..b3e14dd4 100644 --- a/en/pedia/c/cost-of-living_adjustment_(cola).md +++ b/en/pedia/c/cost-of-living_adjustment_(cola).md @@ -10,9 +10,9 @@ The primary objective of a Cost-of-Living Adjustment is to preserve the recipien [Inflation](../i/inflation.md) refers to the general increase in prices and fall in the [purchasing power](../p/purchasing_power.md) of [currency](../c/currency.md). It is quantified using various indices: -- **Consumer Price [Index](../i/index.md) (CPI)**: Reflects the average change over time in the prices paid by urban consumers for a [basket of goods](../b/basket_of_goods.md) and services. -- **Producer Price [Index](../i/index.md) (PPI)**: Measures the average change over time in the selling prices received by domestic producers for their output. -- **Personal Consumption Expenditures Price [Index](../i/index.md) (PCE)**: Considers changes in the prices of goods and services consumed by individuals. +- **Consumer Price [Index](../i/index_instrument.md) (CPI)**: Reflects the average change over time in the prices paid by urban consumers for a [basket of goods](../b/basket_of_goods.md) and services. +- **Producer Price [Index](../i/index_instrument.md) (PPI)**: Measures the average change over time in the selling prices received by domestic producers for their output. +- **Personal Consumption Expenditures Price [Index](../i/index_instrument.md) (PCE)**: Considers changes in the prices of goods and services consumed by individuals. ## Applications of COLA @@ -38,7 +38,7 @@ Some investment products, such as [inflation](../i/inflation.md)-indexed bonds ( ### Determining the Index -The choice of [inflation](../i/inflation.md) [index](../i/index.md) significantly influences COLA. For example, the U.S. [Social Security](../s/social_security.md) Administration uses the CPI-W (Consumer Price [Index](../i/index.md) for Urban Wage Earners and Clerical Workers) to determine annual COLA adjustments. +The choice of [inflation](../i/inflation.md) [index](../i/index_instrument.md) significantly influences COLA. For example, the U.S. [Social Security](../s/social_security.md) Administration uses the CPI-W (Consumer Price [Index](../i/index_instrument.md) for Urban Wage Earners and Clerical Workers) to determine annual COLA adjustments. ### Formula for COLA @@ -49,8 +49,8 @@ COLA = (Current CPI - Previous CPI) / Previous CPI * 100 ``` Where: -- Current CPI is the Consumer Price [Index](../i/index.md) at the time of adjustment. -- Previous CPI is the Consumer Price [Index](../i/index.md) during the previous evaluation period. +- Current CPI is the Consumer Price [Index](../i/index_instrument.md) at the time of adjustment. +- Previous CPI is the Consumer Price [Index](../i/index_instrument.md) during the previous evaluation period. For a more detailed methodology on calculating COLA, refer to resources like [Bureau of Labor Statistics](https://www.bls.gov/). diff --git a/en/pedia/c/cost_of_living.md b/en/pedia/c/cost_of_living.md index 0278c9b1..a9592224 100644 --- a/en/pedia/c/cost_of_living.md +++ b/en/pedia/c/cost_of_living.md @@ -40,7 +40,7 @@ Other costs such as clothing, personal care items, and household cleaning suppli ### Consumer Price Index (CPI) -The Consumer Price [Index](../i/index.md) (CPI) is one of the most widely used measures to calculate the cost of living. It tracks the prices of a [basket of goods](../b/basket_of_goods.md) and services over time to measure [inflation](../i/inflation.md). Different countries have their own CPI calculations based on the most relevant items for their populations. +The Consumer Price [Index](../i/index_instrument.md) (CPI) is one of the most widely used measures to calculate the cost of living. It tracks the prices of a [basket of goods](../b/basket_of_goods.md) and services over time to measure [inflation](../i/inflation.md). Different countries have their own CPI calculations based on the most relevant items for their populations. ### Purchasing Power Parity (PPP) @@ -48,7 +48,7 @@ The Consumer Price [Index](../i/index.md) (CPI) is one of the most widely used m ### Cost of Living Index -The Cost of Living [Index](../i/index.md) compares the relative cost of living between different locations. It typically includes various components such as housing, food, healthcare, and transportation, giving a comprehensive overview. +The Cost of Living [Index](../i/index_instrument.md) compares the relative cost of living between different locations. It typically includes various components such as housing, food, healthcare, and transportation, giving a comprehensive overview. ## Cost of Living Adjustments (COLAs) diff --git a/en/pedia/c/credit_spread_trading.md b/en/pedia/c/credit_spread_trading.md index d912057d..b9da301a 100644 --- a/en/pedia/c/credit_spread_trading.md +++ b/en/pedia/c/credit_spread_trading.md @@ -15,7 +15,7 @@ In [credit](../c/credit.md) [spreads](../s/spreads.md), the option sold (short o To understand how [credit](../c/credit.md) [spread trading](../s/spread_trading.md) works, it is essential to break down the components and steps involved: -1. **Selection of [Underlying Asset](../u/underlying_asset.md)**: The first step involves selecting the [underlying asset](../u/underlying_asset.md) (e.g., stock, ETF, [index](../i/index.md)) on which [options](../o/options.md) [will](../w/will.md) be traded. This choice is often based on the [trader](../t/trader.md)'s [market](../m/market.md) outlook, [volatility](../v/volatility.md) expectations, and [liquidity](../l/liquidity.md) considerations. +1. **Selection of [Underlying Asset](../u/underlying_asset.md)**: The first step involves selecting the [underlying asset](../u/underlying_asset.md) (e.g., stock, ETF, [index](../i/index_instrument.md)) on which [options](../o/options.md) [will](../w/will.md) be traded. This choice is often based on the [trader](../t/trader.md)'s [market](../m/market.md) outlook, [volatility](../v/volatility.md) expectations, and [liquidity](../l/liquidity.md) considerations. 2. **Identifying Suitable [Options](../o/options.md)**: Traders identify suitable call or [put options](../p/put_options.md) with strike prices and expiration dates that align with their strategy. The [options](../o/options.md) chosen should have sufficient [liquidity](../l/liquidity.md) to ensure ease of [execution](../e/execution.md). 3. **[Execution](../e/execution.md) of Spread**: The [trader](../t/trader.md) simultaneously initiates the [sale](../s/sale.md) and purchase of [options](../o/options.md) to create the [credit spread](../c/credit_spread.md). This [execution](../e/execution.md) can be manual or automated using [algorithmic trading](../a/algorithmic_trading.md) platforms. 4. **Monitoring and Adjustments**: Once the [credit spread](../c/credit_spread.md) is established, continuous monitoring is necessary to ensure the [market](../m/market.md) conditions remain favorable. Adjustments may be required if the [underlying asset](../u/underlying_asset.md) price moves significantly. diff --git a/en/pedia/c/cross-asset_arbitrage.md b/en/pedia/c/cross-asset_arbitrage.md index fa005348..91b310e4 100644 --- a/en/pedia/c/cross-asset_arbitrage.md +++ b/en/pedia/c/cross-asset_arbitrage.md @@ -30,7 +30,7 @@ The term "cross-[asset](../a/asset.md)" refers to the trading and analysis of mo 4. **FX-[Equity](../e/equity.md) [Arbitrage](../a/arbitrage.md)**: This method employs strategies based on the [currency](../c/currency.md) movements relative to a country's [equity](../e/equity.md) markets. For example, if the [Euro](../e/euro.md) strengthens against the dollar, European [stocks](../s/stock.md) might rise. -5. **[Index](../i/index.md) [Arbitrage](../a/arbitrage.md)**: This involves taking advantage of price discrepancies between individual [stocks](../s/stock.md) and the stock indices [futures contracts](../f/futures_contracts.md). +5. **[Index](../i/index_instrument.md) [Arbitrage](../a/arbitrage.md)**: This involves taking advantage of price discrepancies between individual [stocks](../s/stock.md) and the stock indices [futures contracts](../f/futures_contracts.md). ## Challenges and Risks diff --git a/en/pedia/c/cryptocurrency_trading_algorithms.md b/en/pedia/c/cryptocurrency_trading_algorithms.md index 06b40c14..f02a1fa8 100644 --- a/en/pedia/c/cryptocurrency_trading_algorithms.md +++ b/en/pedia/c/cryptocurrency_trading_algorithms.md @@ -23,7 +23,7 @@ Cryptocurrency [trading algorithms](../t/trading_algorithms.md) represent a corn These algorithms are based on the premise that assets which have been moving in a given direction [will](../w/will.md) continue to do so. #### Key Components: -- **Indicators**: Usage of [technical indicators](../t/technical_indicators.md) like Moving Averages (MA), [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)). +- **Indicators**: Usage of [technical indicators](../t/technical_indicators.md) like Moving Averages (MA), [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)). - **Signal Generation**: Generating buy or sell signals based on the indicators. - **[Execution](../e/execution.md)**: Placing trades according to the signals with predefined [risk management](../r/risk_management.md) rules like stop-loss and take-[profit](../p/profit.md) levels. diff --git a/en/pedia/c/cumulative_distribution_function_in_trading.md b/en/pedia/c/cumulative_distribution_function_in_trading.md index fb4d5298..833004da 100644 --- a/en/pedia/c/cumulative_distribution_function_in_trading.md +++ b/en/pedia/c/cumulative_distribution_function_in_trading.md @@ -71,9 +71,9 @@ Monte Carlo simulations involve running [multiple](../m/multiple.md) trials to e ### Practical Example -Let's consider a [trader](../t/trader.md) analyzing the S&P 500 [index](../i/index.md)'s daily returns. The [trader](../t/trader.md) wants to understand the [probability distribution](../p/probability_distribution.md) of these returns over the past year. +Let's consider a [trader](../t/trader.md) analyzing the S&P 500 [index](../i/index_instrument.md)'s daily returns. The [trader](../t/trader.md) wants to understand the [probability distribution](../p/probability_distribution.md) of these returns over the past year. -1. **Data Collection**: The [trader](../t/trader.md) collects daily closing prices of the S&P 500 [index](../i/index.md) for the past year. +1. **Data Collection**: The [trader](../t/trader.md) collects daily closing prices of the S&P 500 [index](../i/index_instrument.md) for the past year. 2. **Calculating Returns**: The [trader](../t/trader.md) calculates the daily returns using the formula: diff --git a/en/pedia/c/currency_carry_trade.md b/en/pedia/c/currency_carry_trade.md index 99bb95f1..34399ba1 100644 --- a/en/pedia/c/currency_carry_trade.md +++ b/en/pedia/c/currency_carry_trade.md @@ -63,7 +63,7 @@ Large financial institutions also engage in carry trades, often as part of their ### Identifying Opportunities - **[Interest Rate](../i/interest_rate.md) Differentials**: The foundation of identifying [carry trade](../c/carry_trade.md) opportunities is through differential analysis. Automated tools and algorithms can scan the global [market](../m/market.md) to highlight potential trades. -- **[Trend Analysis](../t/trend_analysis.md)**: [Technical analysis](../t/technical_analysis.md), including the use of moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and other indicators, helps identify favorable [currency](../c/currency.md) trends. +- **[Trend Analysis](../t/trend_analysis.md)**: [Technical analysis](../t/technical_analysis.md), including the use of moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and other indicators, helps identify favorable [currency](../c/currency.md) trends. - **Macro-[economic Indicators](../e/economic_indicators.md)**: Economic data such as GDP growth, [inflation](../i/inflation.md) rates, and employment [statistics](../s/statistics.md) are crucial for determining future [interest rate](../i/interest_rate.md) changes. ### Risk Management diff --git a/en/pedia/c/currency_pair_analysis.md b/en/pedia/c/currency_pair_analysis.md index 07e8d4e8..470378ed 100644 --- a/en/pedia/c/currency_pair_analysis.md +++ b/en/pedia/c/currency_pair_analysis.md @@ -11,7 +11,7 @@ 2. **[Technical Analysis](../t/technical_analysis.md)**: - **[Chart Patterns](../c/chart_patterns.md)**: Traders use [chart patterns](../c/chart_patterns.md) to predict future [market](../m/market.md) movements. Patterns like Head and Shoulders, Flags, and Triangles can indicate potential reversals or continuations in [trend](../t/trend.md). - - **Indicators and Oscillators**: Common [technical indicators](../t/technical_indicators.md) include Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), [Bollinger Bands](../b/bollinger_bands.md), and MACD. These tools help traders identify trends, [overbought](../o/overbought.md)/[oversold](../o/oversold.md) conditions, and [momentum](../m/momentum.md). + - **Indicators and Oscillators**: Common [technical indicators](../t/technical_indicators.md) include Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), [Bollinger Bands](../b/bollinger_bands.md), and MACD. These tools help traders identify trends, [overbought](../o/overbought.md)/[oversold](../o/oversold.md) conditions, and [momentum](../m/momentum.md). - **[Support and Resistance](../s/support_and_resistance.md) Levels**: Support is a [price level](../p/price_level.md) where a [currency](../c/currency.md) pair tends to find buying [interest](../i/interest.md), preventing further decline. Resistance is a [price level](../p/price_level.md) where selling [interest](../i/interest.md) prevents the price from rising higher. Identifying these levels helps traders make buy/sell decisions. 3. **[Quantitative Analysis](../q/quantitative_analysis.md)**: diff --git a/en/pedia/c/currency_trading_strategies.md b/en/pedia/c/currency_trading_strategies.md index 54974b8a..65e28438 100644 --- a/en/pedia/c/currency_trading_strategies.md +++ b/en/pedia/c/currency_trading_strategies.md @@ -34,7 +34,7 @@ - **Moving Averages:** Used to smooth out price data and identify trends. Common moving averages include the Simple Moving Average (SMA) and Exponential Moving Average (EMA). -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** An [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It ranges from 0 to 100, with levels above 70 indicating [overbought](../o/overbought.md) conditions and below 30 indicating [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** An [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It ranges from 0 to 100, with levels above 70 indicating [overbought](../o/overbought.md) conditions and below 30 indicating [oversold](../o/oversold.md) conditions. - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD):** A [momentum](../m/momentum.md) [indicator](../i/indicator.md) that shows the relationship between two moving averages. It consists of the MACD line, signal line, and [histogram](../h/histogram.md). diff --git a/en/pedia/c/cusip_number.md b/en/pedia/c/cusip_number.md index 9c9065c2..8f362b94 100644 --- a/en/pedia/c/cusip_number.md +++ b/en/pedia/c/cusip_number.md @@ -25,7 +25,7 @@ CUSIP numbers play a crucial role in improving the [transparency](../t/transpare Regulatory bodies, such as the Securities and [Exchange](../e/exchange.md) [Commission](../c/commission.md) (SEC) in the United States, require the use of CUSIP numbers for filing and monitoring purposes. These identifications ensure that the securities transactions are compliant with regulatory requirements and help regulatory bodies track ownership changes and [trade](../t/trade.md) activities. ### Risk Management -CUSIP numbers also facilitate [risk management](../r/risk_management.md) by allowing financial institutions to track and categorize their [asset](../a/asset.md) [holdings](../h/holdings.md) accurately. [Index](../i/index.md) compositions, portfolios, and [risk](../r/risk.md) assessments rely heavily on precise [security](../s/security.md) identification provided by CUSIP numbers. +CUSIP numbers also facilitate [risk management](../r/risk_management.md) by allowing financial institutions to track and categorize their [asset](../a/asset.md) [holdings](../h/holdings.md) accurately. [Index](../i/index_instrument.md) compositions, portfolios, and [risk](../r/risk.md) assessments rely heavily on precise [security](../s/security.md) identification provided by CUSIP numbers. ## How to Obtain a CUSIP Number? diff --git a/en/pedia/c/cyclical_stocks.md b/en/pedia/c/cyclical_stocks.md index f60b38f0..b402c66f 100644 --- a/en/pedia/c/cyclical_stocks.md +++ b/en/pedia/c/cyclical_stocks.md @@ -30,8 +30,8 @@ Proficient traders and investors in cyclical [stocks](../s/stock.md) pay close a 1. **Gross Domestic Product (GDP)**: A growing GDP signifies an expanding [economy](../e/economy.md), typically benefiting cyclical [stocks](../s/stock.md). 2. **[Unemployment](../u/unemployment.md) Rates**: Decreasing [unemployment](../u/unemployment.md) usually correlates with higher consumer spending, boosting cyclical industries. -3. **Consumer Confidence [Index](../i/index.md) (CCI)**: This measures consumer optimism about the [economy](../e/economy.md), a [leading indicator](../l/leading_indicator.md) for consumer spending. -4. **Industrial Production [Index](../i/index.md) (IPI)**: Highlights the production levels in industries, signaling growth or contraction phases. +3. **Consumer Confidence [Index](../i/index_instrument.md) (CCI)**: This measures consumer optimism about the [economy](../e/economy.md), a [leading indicator](../l/leading_indicator.md) for consumer spending. +4. **Industrial Production [Index](../i/index_instrument.md) (IPI)**: Highlights the production levels in industries, signaling growth or contraction phases. ### Sector Rotation Strategy diff --git a/en/pedia/c/cyclicality_in_markets.md b/en/pedia/c/cyclicality_in_markets.md index 8a04aba8..ae3382fc 100644 --- a/en/pedia/c/cyclicality_in_markets.md +++ b/en/pedia/c/cyclicality_in_markets.md @@ -62,7 +62,7 @@ Moving averages smooth out price data to identify trends. Common types include: Oscillators measure [market](../m/market.md) [momentum](../m/momentum.md) and can indicate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. Examples include: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measures the magnitude and velocity of directional price movements. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measures the magnitude and velocity of directional price movements. - **[Stochastic Oscillator](../s/stochastic_oscillator.md)**: Compares a [security](../s/security.md)'s closing price to its price [range](../r/range.md) over a specific period. ### Mean Reversion diff --git a/en/pedia/d/dar_es_salaam_stock_exchange_(dse).md b/en/pedia/d/dar_es_salaam_stock_exchange_(dse).md index 6cebd837..581ce47d 100644 --- a/en/pedia/d/dar_es_salaam_stock_exchange_(dse).md +++ b/en/pedia/d/dar_es_salaam_stock_exchange_(dse).md @@ -64,10 +64,10 @@ The DSE offers a [range](../r/range.md) of financial instruments for trading, in The performance of the DSE is tracked by several [market](../m/market.md) indices, which provide a snapshot of the [market](../m/market.md)'s overall health and trends. Key indices include: -- **DSE All Share [Index](../i/index.md) (DSEI)**: Measures the performance of all [listed](../l/listed.md) companies on the [exchange](../e/exchange.md). -- **Tanzania Share [Index](../i/index.md) (TSI)**: Focuses on domestic companies only. -- **Industrial & Allied [Index](../i/index.md)**: Tracks the performance of companies in the industrial and allied sectors. -- **Banking, [Finance](../f/finance.md) & Investment [Index](../i/index.md)**: Tracks the performance of companies in the banking, [finance](../f/finance.md), and investment sectors. +- **DSE All Share [Index](../i/index_instrument.md) (DSEI)**: Measures the performance of all [listed](../l/listed.md) companies on the [exchange](../e/exchange.md). +- **Tanzania Share [Index](../i/index_instrument.md) (TSI)**: Focuses on domestic companies only. +- **Industrial & Allied [Index](../i/index_instrument.md)**: Tracks the performance of companies in the industrial and allied sectors. +- **Banking, [Finance](../f/finance.md) & Investment [Index](../i/index_instrument.md)**: Tracks the performance of companies in the banking, [finance](../f/finance.md), and investment sectors. ## Major Listed Companies diff --git a/en/pedia/d/dark_cloud_cover.md b/en/pedia/d/dark_cloud_cover.md index 2a9bd363..1d272acd 100644 --- a/en/pedia/d/dark_cloud_cover.md +++ b/en/pedia/d/dark_cloud_cover.md @@ -37,7 +37,7 @@ def is_dark_cloud_cover(df): Returns: pd.DataFrame: DataFrame with Dark Cloud Cover signals. """ - signals = pd.DataFrame([index](../i/index.md)=df.[index](../i/index.md)) + signals = pd.DataFrame([index](../i/index_instrument.md)=df.[index](../i/index_instrument.md)) signals['DarkCloudCover'] = False for i in [range](../r/range.md)(1, len(df)): @@ -63,7 +63,7 @@ def is_dark_cloud_cover(df): ### Strategy 1: Trend Reversal Indicators -The Dark Cloud Cover can be utilized alongside other [technical indicators](../t/technical_indicator.md) to form a [robust](../r/robust.md) [trend reversal](../t/trend_reversal.md) strategy. For example, Combining it with [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can enhance signal reliability. +The Dark Cloud Cover can be utilized alongside other [technical indicators](../t/technical_indicator.md) to form a [robust](../r/robust.md) [trend reversal](../t/trend_reversal.md) strategy. For example, Combining it with [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can enhance signal reliability. ### Strategy 2: Confirmation with Volume diff --git a/en/pedia/d/data-driven_trading_strategies.md b/en/pedia/d/data-driven_trading_strategies.md index 999a0fca..73bfc956 100644 --- a/en/pedia/d/data-driven_trading_strategies.md +++ b/en/pedia/d/data-driven_trading_strategies.md @@ -19,7 +19,7 @@ The utilization of [big data](../b/big_data_in_trading.md)—massive datasets th Statistical [arbitrage](../a/arbitrage.md) (StatArb) is a popular data-driven strategy that involves exploiting price inefficiencies between related financial instruments. It typically includes [pairs trading](../p/pairs_trading.md), where two correlated assets are traded against each other. ### 2. **Momentum Trading** -[Momentum trading](../m/momentum_trading.md) strategies identify securities that have shown a tendency to move in the same direction over a short to medium-term period. Traders using this strategy often rely on [technical indicators](../t/technical_indicators.md) like moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and MACD. +[Momentum trading](../m/momentum_trading.md) strategies identify securities that have shown a tendency to move in the same direction over a short to medium-term period. Traders using this strategy often rely on [technical indicators](../t/technical_indicators.md) like moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and MACD. ### 3. **Mean Reversion** [Mean reversion](../m/mean_reversion.md) strategies are grounded in the statistical concept that [asset](../a/asset.md) prices [will](../w/will.md) revert to their historical mean or average level over time. This approach seeks to [capitalize](../c/capitalize.md) on price extremes by buying [undervalued](../u/undervalued.md) assets and selling [overvalued](../o/overvalued.md) ones. diff --git a/en/pedia/d/data_analysis_techniques.md b/en/pedia/d/data_analysis_techniques.md index 0d1a08c5..fb46786c 100644 --- a/en/pedia/d/data_analysis_techniques.md +++ b/en/pedia/d/data_analysis_techniques.md @@ -10,7 +10,7 @@ Historical data is a crucial component in developing and testing [algorithmic tr 1. **Price Data:** Includes [open](../o/open.md), high, low, close (OHLC) prices. 2. **[Volume](../v/volume.md) Data:** Measures the amount of an [asset](../a/asset.md) traded during a specific period. -3. **[Technical Indicators](../t/technical_indicators.md):** Derived from price and [volume](../v/volume.md) data, e.g., Moving Averages (MA), [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI). +3. **[Technical Indicators](../t/technical_indicators.md):** Derived from price and [volume](../v/volume.md) data, e.g., Moving Averages (MA), [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI). ### Techniques @@ -55,7 +55,7 @@ Machine learning (ML) algorithms allow traders to build models that can learn fr ### Techniques - **[Chart Patterns](../c/chart_patterns.md):** Recognizing formations like double tops, head and shoulders, and triangles. -- **Indicators:** Applying tools like Moving Averages, [Bollinger Bands](../b/bollinger_bands.md), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)). +- **Indicators:** Applying tools like Moving Averages, [Bollinger Bands](../b/bollinger_bands.md), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)). - **[Volume Analysis](../v/volume_analysis.md):** Assessing price movements in conjunction with [volume](../v/volume.md) to validate trends. ## 6. Fundamental Analysis diff --git a/en/pedia/d/dax_stock_index.md b/en/pedia/d/dax_stock_index.md index be884454..4748f2eb 100644 --- a/en/pedia/d/dax_stock_index.md +++ b/en/pedia/d/dax_stock_index.md @@ -1,6 +1,6 @@ # DAX Stock Index -The DAX (Deutscher Aktienindex) is Germany's leading stock [market index](../m/market_index.md), representing 30 of the largest and most [liquid](../l/liquid.md) blue-chip companies traded on the Frankfurt Stock [Exchange](../e/exchange.md). It is seen as a [benchmark](../b/benchmark.md) for the German [economy](../e/economy.md) and [investor](../i/investor.md) sentiment in the country. The [index](../i/index.md) was created in 1988 by the Frankfurt Stock [Exchange](../e/exchange.md) and mirrors the movements of the broader German [stock market](../s/stock_market.md). +The DAX (Deutscher Aktienindex) is Germany's leading stock [market index](../m/market_index.md), representing 30 of the largest and most [liquid](../l/liquid.md) blue-chip companies traded on the Frankfurt Stock [Exchange](../e/exchange.md). It is seen as a [benchmark](../b/benchmark.md) for the German [economy](../e/economy.md) and [investor](../i/investor.md) sentiment in the country. The [index](../i/index_instrument.md) was created in 1988 by the Frankfurt Stock [Exchange](../e/exchange.md) and mirrors the movements of the broader German [stock market](../s/stock_market.md). ## Components and Selection Criteria @@ -15,17 +15,17 @@ To be included in the DAX, companies must: ### Rebalancing -The composition of the DAX is reviewed quarterly to ensure it accurately represents the German [stock market](../s/stock_market.md). Changes to the [index](../i/index.md) are typically announced a few weeks in advance. The review dates are usually March, June, September, and December. +The composition of the DAX is reviewed quarterly to ensure it accurately represents the German [stock market](../s/stock_market.md). Changes to the [index](../i/index_instrument.md) are typically announced a few weeks in advance. The review dates are usually March, June, September, and December. ## Calculation -The DAX is a performance [index](../i/index.md), meaning it is calculated by reinvesting all dividends and considering [capital](../c/capital.md) gains. This differentiates it from a price [index](../i/index.md), where only [capital](../c/capital.md) gains are considered. The DAX's calculation begins at 1,000 points on December 30, 1987, and it is updated every second during trading hours. +The DAX is a performance [index](../i/index_instrument.md), meaning it is calculated by reinvesting all dividends and considering [capital](../c/capital.md) gains. This differentiates it from a price [index](../i/index_instrument.md), where only [capital](../c/capital.md) gains are considered. The DAX's calculation begins at 1,000 points on December 30, 1987, and it is updated every second during trading hours. ### Formula -The [index](../i/index.md) is calculated using the Laspeyres formula, which is a [weighted](../w/weighted.md) [arithmetic mean](../a/arithmetic_mean.md) formula. The formula takes into account the current prices, the base, and the fixed component weights. +The [index](../i/index_instrument.md) is calculated using the Laspeyres formula, which is a [weighted](../w/weighted.md) [arithmetic mean](../a/arithmetic_mean.md) formula. The formula takes into account the current prices, the base, and the fixed component weights. -$$ \text{[Index](../i/index.md)} = \left( \frac{\sum (P_t \cdot Q_0)}{\sum (P_0 \cdot Q_0)} \right) \times 1000 $$ +$$ \text{[Index](../i/index_instrument.md)} = \left( \frac{\sum (P_t \cdot Q_0)}{\sum (P_0 \cdot Q_0)} \right) \times 1000 $$ Where: - \( P_t \): Price of the component at time \( t \) @@ -42,7 +42,7 @@ The DAX is a critical [indicator](../i/indicator.md) of German economic health a ## Member Companies -As of the latest update, the following companies are members of the DAX [index](../i/index.md): +As of the latest update, the following companies are members of the DAX [index](../i/index_instrument.md): ### 1. **Adidas AG** Website: [Adidas](https://www.adidas-group.com/) @@ -136,4 +136,4 @@ Website: [Delivery Hero](https://www.deliveryhero.com/) ## Conclusion -Understanding the DAX [index](../i/index.md) is essential for any [investor](../i/investor.md) with [interest](../i/interest.md) in the German [market](../m/market.md). As a representation of the overall performance of Germany's top companies, the DAX provides insights into the health and direction of the German [economy](../e/economy.md). The selection of companies is based on rigorous criteria ensuring that only the most significant players are included. Staying informed about changes in the DAX can aid investors in making more educated decisions regarding their portfolios. \ No newline at end of file +Understanding the DAX [index](../i/index_instrument.md) is essential for any [investor](../i/investor.md) with [interest](../i/interest.md) in the German [market](../m/market.md). As a representation of the overall performance of Germany's top companies, the DAX provides insights into the health and direction of the German [economy](../e/economy.md). The selection of companies is based on rigorous criteria ensuring that only the most significant players are included. Staying informed about changes in the DAX can aid investors in making more educated decisions regarding their portfolios. \ No newline at end of file diff --git a/en/pedia/d/day_trader.md b/en/pedia/d/day_trader.md index f42aec8d..dc4cd09b 100644 --- a/en/pedia/d/day_trader.md +++ b/en/pedia/d/day_trader.md @@ -7,7 +7,7 @@ A **day [trader](../t/trader.md)** is an individual who buys and sells financial ## Key Concepts in Day Trading ### 1. Technical Analysis -[Technical analysis](../t/technical_analysis.md) involves evaluating securities by analyzing [statistics](../s/statistics.md) generated by [market](../m/market.md) activity, such as past prices and [volume](../v/volume.md). Traders use charts and other tools to identify patterns that can suggest future activity. Key tools often include moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_band.md) among others. +[Technical analysis](../t/technical_analysis.md) involves evaluating securities by analyzing [statistics](../s/statistics.md) generated by [market](../m/market.md) activity, such as past prices and [volume](../v/volume.md). Traders use charts and other tools to identify patterns that can suggest future activity. Key tools often include moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_band.md) among others. ### 2. Market Sentiment [Market sentiment](../m/market_sentiment.md) refers to the overall attitude of investors towards a particular [security](../s/security.md) or financial [market](../m/market.md). It can be both bullish (positive) or bearish (negative), and understanding sentiment can help traders predict and react to potential price movements. diff --git a/en/pedia/d/day_trading.md b/en/pedia/d/day_trading.md index 9f97d4ca..607f86b2 100644 --- a/en/pedia/d/day_trading.md +++ b/en/pedia/d/day_trading.md @@ -33,7 +33,7 @@ Day trading primarily involves short-term charts that [range](../r/range.md) fro Day traders rely on advanced trading platforms that provide comprehensive charting tools, real-time news, and fast [execution](../e/execution.md) speeds. Popular platforms include **MetaTrader**, **[Thinkorswim](../t/thinkorswim.md)** by TD [Ameritrade](../a/ameritrade.md), and **[Interactive Brokers](../i/interactive_brokers.md)**. ### 2. Technical Indicators -[Technical indicators](../t/technical_indicators.md) are mathematical calculations based on historic price, [volume](../v/volume.md), or [open interest](../o/open_interest.md) information. Commonly used indicators include moving averages, [Bollinger Bands](../b/bollinger_bands.md), MACD, and [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI). +[Technical indicators](../t/technical_indicators.md) are mathematical calculations based on historic price, [volume](../v/volume.md), or [open interest](../o/open_interest.md) information. Commonly used indicators include moving averages, [Bollinger Bands](../b/bollinger_bands.md), MACD, and [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI). ### 3. News Feeds Day trading is often driven by the latest news. Economic announcements, [earnings](../e/earnings.md) reports, or [geopolitical events](../g/geopolitical_events.md) can significantly impact [market](../m/market.md) conditions. Services like **[Bloomberg](../b/bloomberg.md) Terminal** and **[Reuters](../r/reuters.md)** provide real-time news updates. diff --git a/en/pedia/d/day_trading_strategies.md b/en/pedia/d/day_trading_strategies.md index 5a3a96bc..bae2a2a9 100644 --- a/en/pedia/d/day_trading_strategies.md +++ b/en/pedia/d/day_trading_strategies.md @@ -31,7 +31,7 @@ A [trader](../t/trader.md) identifies a stock with low [volatility](../v/volatil 1. **[Trend Following](../t/trend_following.md)**: Looking for [stocks](../s/stock.md) that are trending strongly. 2. **[Volume Analysis](../v/volume_analysis.md)**: Focus on [stocks](../s/stock.md) with significant [volume](../v/volume.md) changes. -3. **Entry and Exit Signals**: Using [technical indicators](../t/technical_indicators.md) like Moving Average Convergence [Divergence](../d/divergence.md) (MACD) or [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI). +3. **Entry and Exit Signals**: Using [technical indicators](../t/technical_indicators.md) like Moving Average Convergence [Divergence](../d/divergence.md) (MACD) or [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI). ### Tools for Momentum Trading: diff --git a/en/pedia/d/dead_cat_bounce.md b/en/pedia/d/dead_cat_bounce.md index c34cdb13..9962b24a 100644 --- a/en/pedia/d/dead_cat_bounce.md +++ b/en/pedia/d/dead_cat_bounce.md @@ -33,7 +33,7 @@ Traders often use [technical analysis](../t/technical_analysis.md) to identify p - **[Volume](../v/volume.md)**: Dead cat bounces often occur on low trading volumes. - **Moving Averages**: Brief recoveries that [fail](../f/fail.md) to break above key moving averages (e.g., 50-day or 200-day) may indicate a false [rally](../r/rally.md). - **Resistance Levels**: Bounces that [fail](../f/fail.md) to penetrate established resistance levels are often considered suspect. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: An [overbought](../o/overbought.md) RSI level during a bounce can indicate that the bounce is likely to be short-lived. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: An [overbought](../o/overbought.md) RSI level during a bounce can indicate that the bounce is likely to be short-lived. ### Fundamental Analysis While [technical analysis](../t/technical_analysis.md) is more commonly used for identifying dead cat bounces, [fundamental analysis](../f/fundamental_analysis.md) should not be ignored. Key aspects to consider include: diff --git a/en/pedia/d/death_benefit.md b/en/pedia/d/death_benefit.md index 9faebe34..8ef43e4b 100644 --- a/en/pedia/d/death_benefit.md +++ b/en/pedia/d/death_benefit.md @@ -25,7 +25,7 @@ Certain pension plans include death benefits, which ensure that beneficiaries re Annuities are financial products that provide a stream of [income](../i/income.md), typically used for retirement. Certain types of annuities include death benefits: - **Variable Annuities**: May [offer](../o/offer.md) a [guaranteed death benefit](../g/guaranteed_death_benefit.md) to beneficiaries, usually at least the amount of the initial investment. -- **Indexed Annuities**: Payments and benefits linked to the performance of a specified [index](../i/index.md), often including death benefits. +- **Indexed Annuities**: Payments and benefits linked to the performance of a specified [index](../i/index_instrument.md), often including death benefits. - **Immediate Annuities**: Begin payments immediately after a lump sum is paid, sometimes including a death benefit [provision](../p/provision.md). ### Social Security diff --git a/en/pedia/d/death_cross.md b/en/pedia/d/death_cross.md index 03e217a4..e31d30d6 100644 --- a/en/pedia/d/death_cross.md +++ b/en/pedia/d/death_cross.md @@ -37,7 +37,7 @@ With advancements in [algorithmic trading](../a/accountability.md), the Death Cr Modern traders often combine the Death Cross with other [technical indicators](../t/technical_indicator.md) to improve accuracy. Some of the methods include: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: To measure the speed and change of price movements. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: To measure the speed and change of price movements. - **MACD (Moving Average Convergence [Divergence](../d/divergence.md))**: To understand [trend](../t/trend.md) changes. - **[Volume Analysis](../v/volume_analysis.md)**: To confirm the strength behind the crossover. diff --git a/en/pedia/d/debt.md b/en/pedia/d/debt.md index 2bd4a3f2..cf4c5e22 100644 --- a/en/pedia/d/debt.md +++ b/en/pedia/d/debt.md @@ -91,7 +91,7 @@ These are debt instruments with variable [interest](../i/interest.md) rates that ### Inflation-Linked Bonds -These bonds provide protection against [inflation](../i/inflation.md). The [principal](../p/principal.md) and [interest](../i/interest.md) payments adjust based on an [inflation](../i/inflation.md) [index](../i/index.md) (e.g., Consumer Price [Index](../i/index.md) - CPI). Examples include Treasury [Inflation-Protected Securities](../i/inflation-protected_securities.md) (TIPS) in the U.S. +These bonds provide protection against [inflation](../i/inflation.md). The [principal](../p/principal.md) and [interest](../i/interest.md) payments adjust based on an [inflation](../i/inflation.md) [index](../i/index_instrument.md) (e.g., Consumer Price [Index](../i/index_instrument.md) - CPI). Examples include Treasury [Inflation-Protected Securities](../i/inflation-protected_securities.md) (TIPS) in the U.S. ## Risks Associated with Debt diff --git a/en/pedia/d/decentralized_applications_(dapps).md b/en/pedia/d/decentralized_applications_(dapps).md index d155a3cc..6b386856 100644 --- a/en/pedia/d/decentralized_applications_(dapps).md +++ b/en/pedia/d/decentralized_applications_(dapps).md @@ -18,7 +18,7 @@ The frontend of a dApp is similar to that of traditional applications. It includ ### Middleware -Middleware facilitates interaction between the frontend and the [blockchain](../b/blockchain_in_trading.md). It helps in the integration of various services, such as data [indexing](../i/indexing.md) and storage. Middleware solutions like The Graph enable developers to efficiently [index](../i/index.md) [blockchain](../b/blockchain_in_trading.md) data and make it easily queryable via simple GraphQL APIs. +Middleware facilitates interaction between the frontend and the [blockchain](../b/blockchain_in_trading.md). It helps in the integration of various services, such as data [indexing](../i/indexing.md) and storage. Middleware solutions like The Graph enable developers to efficiently [index](../i/index_instrument.md) [blockchain](../b/blockchain_in_trading.md) data and make it easily queryable via simple GraphQL APIs. ## Key Components of dApps diff --git a/en/pedia/d/deferred_annuity.md b/en/pedia/d/deferred_annuity.md index 27c5e0bf..9a3a1db1 100644 --- a/en/pedia/d/deferred_annuity.md +++ b/en/pedia/d/deferred_annuity.md @@ -24,7 +24,7 @@ These annuities [offer](../o/offer.md) a guaranteed [interest rate](../i/interes Variable annuities allow the [annuitant](../a/annuitant.md) to invest in various sub-accounts, which can include [stocks](../s/stock.md), bonds, and [money market](../m/money_market.md) instruments. The [value](../v/value.md) of the annuity and subsequent payouts depends on the performance of these investments, thus [offering](../o/offering.md) potential for higher returns, but also exposing the [investor](../i/investor.md) to [market risk](../m/market_risk.md). ### Indexed Deferred Annuities -Indexed annuities provide returns based on a specific [equity](../e/equity.md) [index](../i/index.md), such as the S&P 500. They [offer](../o/offer.md) a balance between [risk](../r/risk.md) and reward by [offering](../o/offering.md) a portion of the gains in the [market](../m/market.md) while providing some level of protection against losses. +Indexed annuities provide returns based on a specific [equity](../e/equity.md) [index](../i/index_instrument.md), such as the S&P 500. They [offer](../o/offer.md) a balance between [risk](../r/risk.md) and reward by [offering](../o/offering.md) a portion of the gains in the [market](../m/market.md) while providing some level of protection against losses. ## Benefits of Deferred Annuities diff --git a/en/pedia/d/defined-contribution_plan.md b/en/pedia/d/defined-contribution_plan.md index fd04078b..ea1fe055 100644 --- a/en/pedia/d/defined-contribution_plan.md +++ b/en/pedia/d/defined-contribution_plan.md @@ -60,7 +60,7 @@ Defined-contribution plans are governed under the Employee Retirement [Income](. ## Leading Companies and Plan Providers ### Vanguard -Vanguard is one of the largest providers of defined-contribution plans in the United States. They [offer](../o/offer.md) a [range](../r/range.md) of plans and investment [options](../o/options.md), with a strong emphasis on low-cost [index](../i/index.md) funds. [Vanguard](https://investor.vanguard.com/) +Vanguard is one of the largest providers of defined-contribution plans in the United States. They [offer](../o/offer.md) a [range](../r/range.md) of plans and investment [options](../o/options.md), with a strong emphasis on low-cost [index](../i/index_instrument.md) funds. [Vanguard](https://investor.vanguard.com/) ### Fidelity Investments Fidelity is another major player in the retirement plan [market](../m/market.md), [offering](../o/offering.md) a suite of defined-contribution plan services, including 401(k), 403(b), and 457 plans. They provide a broad array of investment [options](../o/options.md) and [robust](../r/robust.md) [financial planning](../f/financial_planning.md) and advisory services. [Fidelity Investments](https://www.fidelity.com/) diff --git a/en/pedia/d/descending_triangle.md b/en/pedia/d/descending_triangle.md index 75c31404..e07f7204 100644 --- a/en/pedia/d/descending_triangle.md +++ b/en/pedia/d/descending_triangle.md @@ -48,7 +48,7 @@ Traders often use additional [technical indicators](../t/technical_indicator.md) 1. **[Volume Analysis](../v/volume_analysis.md):** A surge in [volume](../v/volume.md) during the [breakout](../b/breakout.md) indicates strong conviction among traders. 2. **Moving Averages:** Moving averages can help confirm the direction of the [trend](../t/trend.md). If the price is below major moving averages (like the 50-day or 200-day), it adds to the bearish outlook. -3. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** RSI can help gauge whether the [security](../s/security.md) is [oversold](../o/oversold.md) or [overbought](../o/overbought.md), providing additional context for the [breakout](../b/breakout.md). +3. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** RSI can help gauge whether the [security](../s/security.md) is [oversold](../o/oversold.md) or [overbought](../o/overbought.md), providing additional context for the [breakout](../b/breakout.md). ## Reliability and Considerations diff --git a/en/pedia/d/deterministic_models_in_trading.md b/en/pedia/d/deterministic_models_in_trading.md index ddb24444..a4faf6c5 100644 --- a/en/pedia/d/deterministic_models_in_trading.md +++ b/en/pedia/d/deterministic_models_in_trading.md @@ -29,7 +29,7 @@ Accurate deterministic models require extensive and precise historical data. Thi **2. [Technical Analysis](../t/technical_analysis.md)** [Technical analysis](../t/technical_analysis.md) involves analyzing statistical trends from trading activity, such as price movement and [volume](../v/volume.md). Deterministic models form the backbone of many [technical indicators](../t/technical_indicators.md) and oscillators, such as: - Moving Averages (MA) -- [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) +- [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) - Moving Average Convergence [Divergence](../d/divergence.md) (MACD) **3. [Risk Management](../r/risk_management.md)** diff --git a/en/pedia/d/detrended_price_oscillator_(dpo).md b/en/pedia/d/detrended_price_oscillator_(dpo).md index d80b6453..763ead4b 100644 --- a/en/pedia/d/detrended_price_oscillator_(dpo).md +++ b/en/pedia/d/detrended_price_oscillator_(dpo).md @@ -43,7 +43,7 @@ DPO can act as a [momentum](../m/momentum.md) [indicator](../i/indicator.md) by ### Complementary Use with Other Indicators -DPO is often used in conjunction with other [technical indicators](../t/technical_indicators.md), such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD), to confirm signals and enhance trading decisions. +DPO is often used in conjunction with other [technical indicators](../t/technical_indicators.md), such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD), to confirm signals and enhance trading decisions. ## Practical Example diff --git "a/en/pedia/d/deutsche_b\303\266rse.md" "b/en/pedia/d/deutsche_b\303\266rse.md" index 746d3a97..7364aeb8 100644 --- "a/en/pedia/d/deutsche_b\303\266rse.md" +++ "b/en/pedia/d/deutsche_b\303\266rse.md" @@ -10,7 +10,7 @@ Deutsche Börse Group is one of the largest [exchange](../e/exchange.md) organiz [Xetra](../x/xetra.md) is one of the leading electronic trading platforms, focusing on German blue chips, but also listing international securities. It is known for its high [liquidity](../l/liquidity.md) and efficient [price discovery](../p/price_discovery.md) mechanisms. The platform is used by traders worldwide due to its significant trading volumes and high reliability. #### Eurex -Eurex is one of the world's leading [derivatives](../d/derivatives.md) exchanges, [offering](../o/offering.md) a broad [range](../r/range.md) of international [benchmark](../b/benchmark.md) products. It provides a wide array of products, including [equity](../e/equity.md) [index](../i/index.md) and [interest rate derivatives](../i/interest_rate_derivatives.md), which are crucial for [risk management](../r/risk_management.md) and hedging activities. +Eurex is one of the world's leading [derivatives](../d/derivatives.md) exchanges, [offering](../o/offering.md) a broad [range](../r/range.md) of international [benchmark](../b/benchmark.md) products. It provides a wide array of products, including [equity](../e/equity.md) [index](../i/index_instrument.md) and [interest rate derivatives](../i/interest_rate_derivatives.md), which are crucial for [risk management](../r/risk_management.md) and hedging activities. ### Market Data and Analytics diff --git a/en/pedia/d/developed_economy.md b/en/pedia/d/developed_economy.md index 6bf05abe..80661ab1 100644 --- a/en/pedia/d/developed_economy.md +++ b/en/pedia/d/developed_economy.md @@ -1,6 +1,6 @@ # Developed Economy -A developed [economy](../e/economy.md), also known as an advanced [economy](../e/economy.md), is characterized by a high level of [income per capita](../i/income_per_capita.md), advanced technological [infrastructure](../i/infrastructure.md), diversified industrial and service sectors, and a high Human Development [Index](../i/index.md) (HDI). These economies generally show high standards of living, stable and transparent government structures, and [robust](../r/robust.md) legal and financial systems. In this comprehensive review, we [will](../w/will.md) delve into the key characteristics, examples, [economic indicators](../e/economic_indicators.md), challenges, and benefits associated with developed economies. +A developed [economy](../e/economy.md), also known as an advanced [economy](../e/economy.md), is characterized by a high level of [income per capita](../i/income_per_capita.md), advanced technological [infrastructure](../i/infrastructure.md), diversified industrial and service sectors, and a high Human Development [Index](../i/index_instrument.md) (HDI). These economies generally show high standards of living, stable and transparent government structures, and [robust](../r/robust.md) legal and financial systems. In this comprehensive review, we [will](../w/will.md) delve into the key characteristics, examples, [economic indicators](../e/economic_indicators.md), challenges, and benefits associated with developed economies. ## Key Characteristics @@ -51,7 +51,7 @@ Stable and low [inflation](../i/inflation.md) is often an aim for developed econ [Interest](../i/interest.md) rates in developed economies are typically set by central banks to manage [economic growth](../e/economic_growth.md) and control [inflation](../i/inflation.md). Low and stable [interest](../i/interest.md) rates encourage investment and spending. ### Human Development Index (HDI) -As discussed, HDI combines data on [life expectancy](../l/life_expectancy.md), education, and [income](../i/income.md) to measure a country's social and economic development. Developed nations usually score very high on this [index](../i/index.md), reflecting their overall human [welfare](../w/welfare.md). +As discussed, HDI combines data on [life expectancy](../l/life_expectancy.md), education, and [income](../i/income.md) to measure a country's social and economic development. Developed nations usually score very high on this [index](../i/index_instrument.md), reflecting their overall human [welfare](../w/welfare.md). ### Balance of Trade A favorable balance of [trade](../t/trade.md), where a country exports more than it imports, is often seen in developed economies. This indicates a strong external economic position and competitive industries. diff --git a/en/pedia/d/development_economics.md b/en/pedia/d/development_economics.md index af5b137d..cdf2dc3e 100644 --- a/en/pedia/d/development_economics.md +++ b/en/pedia/d/development_economics.md @@ -11,7 +11,7 @@ Development [economics](../e/economics.md) is a branch of [economics](../e/econo [Poverty](../p/poverty.md) reduction is a central objective of development [economics](../e/economics.md). [Poverty](../p/poverty.md) is defined by the [World Bank](../w/world_bank.md) as living on less than $1.90 per day. Development economists study the causes of [poverty](../p/poverty.md) and evaluate policies and programs designed to reduce it. This might include social safety nets, education, access to healthcare, and inclusive economic policies that can provide opportunities for all sections of society. ### Human Development -Human development expands the focus of development beyond [economic growth](../e/economic_growth.md) to encompass the overall well-being of individuals. It includes aspects such as education, health, and access to resources and freedoms. The United Nations Development Programme (UNDP) has developed the Human Development [Index](../i/index.md) (HDI) as a measure that combines indicators of [life expectancy](../l/life_expectancy.md), educational attainment, and [per capita](../p/per_capita.md) [income](../i/income.md). +Human development expands the focus of development beyond [economic growth](../e/economic_growth.md) to encompass the overall well-being of individuals. It includes aspects such as education, health, and access to resources and freedoms. The United Nations Development Programme (UNDP) has developed the Human Development [Index](../i/index_instrument.md) (HDI) as a measure that combines indicators of [life expectancy](../l/life_expectancy.md), educational attainment, and [per capita](../p/per_capita.md) [income](../i/income.md). ### Structural Transformation Structural transformation refers to the reallocation of economic activity across the broad sectors of agriculture, [industry](../i/industry.md), and services. Initially, a majority of a developing country’s [economy](../e/economy.md) might be agriculture-based. As a country develops, resources and labor typically move towards [industry](../i/industry.md) and then services. This transformation is essential for sustainable development and economic [diversification](../d/diversification.md). diff --git a/en/pedia/d/dhaka_stock_exchange_(dse).md b/en/pedia/d/dhaka_stock_exchange_(dse).md index 166ba924..a8e51ecb 100644 --- a/en/pedia/d/dhaka_stock_exchange_(dse).md +++ b/en/pedia/d/dhaka_stock_exchange_(dse).md @@ -45,9 +45,9 @@ The DSE offers various [market](../m/market.md) segments to cater to different t The DSE has several indices that provide a snapshot of [market](../m/market.md) performance. The primary indices are: -- **DSEX:** The main [index](../i/index.md) that includes all [listed](../l/listed.md) companies. +- **DSEX:** The main [index](../i/index_instrument.md) that includes all [listed](../l/listed.md) companies. - **DS30:** Comprises the 30 most significant and [liquid](../l/liquid.md) companies. -- **DSES:** The Shariah-compliant [index](../i/index.md) featuring companies adhering to Islamic principles. +- **DSES:** The Shariah-compliant [index](../i/index_instrument.md) featuring companies adhering to Islamic principles. These indices are used by investors to gauge [market](../m/market.md) performance and make informed investment decisions. diff --git a/en/pedia/d/diamonds.md b/en/pedia/d/diamonds.md index 3a2a5883..d6832b53 100644 --- a/en/pedia/d/diamonds.md +++ b/en/pedia/d/diamonds.md @@ -25,7 +25,7 @@ Synthesized or lab-grown diamonds have been developed to meet industrial and com Diamonds possess several unique physical and chemical properties: - **Hardness**: Diamonds are the hardest known natural material, scoring a 10 on the Mohs Hardness Scale. - **Thermal Conductivity**: They have exceptional thermal conductivity, which is utilized in various industrial applications. -- **Optical Properties**: Diamonds have a high refractive [index](../i/index.md) and strong [dispersion](../d/dispersion.md), contributing to their brilliance and fire. +- **Optical Properties**: Diamonds have a high refractive [index](../i/index_instrument.md) and strong [dispersion](../d/dispersion.md), contributing to their brilliance and fire. - **Chemical Stability**: Being made entirely of carbon atoms arranged in a crystal lattice, diamonds are resistant to chemical reactions. ## Industrial and Commercial Uses diff --git a/en/pedia/d/digifinex.md b/en/pedia/d/digifinex.md index 8f6f69b2..336c2c88 100644 --- a/en/pedia/d/digifinex.md +++ b/en/pedia/d/digifinex.md @@ -77,7 +77,7 @@ DigiFinex also provides [futures](../f/futures.md) trading, enabling users to sp DigiFinex offers [real-time market data](../r/real-time_market_data.md), including price charts, trading volumes, and [order book](../o/order_book.md) information. This data is crucial for traders to make informed decisions and develop effective [trading strategies](../t/trading_strategies.md). ### 2. Technical Analysis Tools -The platform provides various [technical analysis tools](../t/technical_analysis_tools.md), such as moving averages, [Bollinger Bands](../b/bollinger_band.md), and [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI). These tools help traders analyze [market](../m/market.md) trends and identify potential entry and exit points. +The platform provides various [technical analysis tools](../t/technical_analysis_tools.md), such as moving averages, [Bollinger Bands](../b/bollinger_band.md), and [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI). These tools help traders analyze [market](../m/market.md) trends and identify potential entry and exit points. ### 3. News and Updates DigiFinex integrates news and updates related to the cryptocurrency [market](../m/market.md). This includes announcements, regulatory developments, and other relevant information that can impact [market sentiment](../m/market_sentiment.md). diff --git a/en/pedia/d/digital_currency_trading.md b/en/pedia/d/digital_currency_trading.md index 140722e2..061e97bf 100644 --- a/en/pedia/d/digital_currency_trading.md +++ b/en/pedia/d/digital_currency_trading.md @@ -35,7 +35,7 @@ One crucial aspect of digital [currency trading](../c/currency_trading_strategie - **[Candlestick Patterns](../c/candlestick_patterns.md)**: Visual representations of price movements within a specified time frame. - **Moving Averages**: Indicators that smooth out price data to identify trends. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measures the speed and change of price movements to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measures the speed and change of price movements to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **[Fibonacci Retracement](../f/fibonacci_retracement.md)**: A tool used to identify potential [support and resistance](../s/support_and_resistance.md) levels. ### Risk Management diff --git a/en/pedia/d/digital_marketing.md b/en/pedia/d/digital_marketing.md index 2bb75487..5ebdfa27 100644 --- a/en/pedia/d/digital_marketing.md +++ b/en/pedia/d/digital_marketing.md @@ -14,7 +14,7 @@ Search Engine [Optimization](../o/optimization.md) (SEO) is the process of optim **2. Off-Page SEO**: This focuses on increasing the authority of your domain through content creation and earning backlinks from other websites. Backlinks are a critical component of SEO as they signal to search engines that your content is valuable and credible. -**3. Technical SEO**: This involves optimizing a website’s [infrastructure](../i/infrastructure.md) so that search engines can crawl and [index](../i/index.md) it effectively. Technical SEO practices include optimizing site speed, ensuring mobile-friendliness, and improving site architecture. +**3. Technical SEO**: This involves optimizing a website’s [infrastructure](../i/infrastructure.md) so that search engines can crawl and [index](../i/index_instrument.md) it effectively. Technical SEO practices include optimizing site speed, ensuring mobile-friendliness, and improving site architecture. ### SEO Tools diff --git a/en/pedia/d/digital_option.md b/en/pedia/d/digital_option.md index 7dca554d..37499798 100644 --- a/en/pedia/d/digital_option.md +++ b/en/pedia/d/digital_option.md @@ -24,7 +24,7 @@ The [risk](../r/risk.md) involved in trading digital [options](../o/options.md) ### Selection of Underlying Asset -First, the [trader](../t/trader.md) selects an [underlying asset](../u/underlying_asset.md) to [trade](../t/trade.md). This could be a stock, [commodity](../c/commodity.md), [currency](../c/currency.md) pair, or [index](../i/index.md). Digital [options](../o/options.md) often cover a broad [range](../r/range.md) of assets, [offering](../o/offering.md) diversified trading opportunities. +First, the [trader](../t/trader.md) selects an [underlying asset](../u/underlying_asset.md) to [trade](../t/trade.md). This could be a stock, [commodity](../c/commodity.md), [currency](../c/currency.md) pair, or [index](../i/index_instrument.md). Digital [options](../o/options.md) often cover a broad [range](../r/range.md) of assets, [offering](../o/offering.md) diversified trading opportunities. ### Prediction diff --git a/en/pedia/d/digital_signal_processing_(dsp)_in_trading.md b/en/pedia/d/digital_signal_processing_(dsp)_in_trading.md index 394552e1..17ce09bf 100644 --- a/en/pedia/d/digital_signal_processing_(dsp)_in_trading.md +++ b/en/pedia/d/digital_signal_processing_(dsp)_in_trading.md @@ -56,7 +56,7 @@ DSP techniques are integral to [algorithmic trading](../a/algorithmic_trading.md [Technical analysis](../t/technical_analysis.md) involves using historical price and [volume](../v/volume.md) data to predict future price movements. DSP enhances [technical analysis](../t/technical_analysis.md) by providing advanced tools for data processing. -- **[Momentum Indicators](../m/momentum_indicators.md):** DSP can calculate [momentum indicators](../m/momentum_indicators.md) like Moving Average Convergence [Divergence](../d/divergence.md) (MACD) or [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), which are crucial for identifying [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Momentum Indicators](../m/momentum_indicators.md):** DSP can calculate [momentum indicators](../m/momentum_indicators.md) like Moving Average Convergence [Divergence](../d/divergence.md) (MACD) or [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), which are crucial for identifying [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **[Cycle Analysis](../c/cycle_analysis.md):** Through Fourier and wavelet transforms, traders can detect cycles in price data, allowing them to anticipate periodic [market](../m/market.md) movements. #### Quantitative Analysis diff --git a/en/pedia/d/directional_movement_index_(dmi).md b/en/pedia/d/directional_movement_index_(dmi).md index b6cec128..1b4814ec 100644 --- a/en/pedia/d/directional_movement_index_(dmi).md +++ b/en/pedia/d/directional_movement_index_(dmi).md @@ -1,6 +1,6 @@ # Directional Movement Index (DMI) -The Directional Movement [Index](../i/index.md) (DMI) is a technical [indicator](../i/indicator.md) developed by J. Welles Wilder as part of his book "New Concepts in Technical [Trading Systems](../t/trading_systems.md)," published in 1978. The DMI assesses the strength of a price [trend](../t/trend.md) and helps traders distinguish between trending and non-trending conditions. It serves as a tool for both [trend](../t/trend.md)-following and filtering out [market](../m/market.md) [noise](../n/noise.md), thus aiding in more informed decision-making in [financial markets](../f/financial_market.md). +The Directional Movement [Index](../i/index_instrument.md) (DMI) is a technical [indicator](../i/indicator.md) developed by J. Welles Wilder as part of his book "New Concepts in Technical [Trading Systems](../t/trading_systems.md)," published in 1978. The DMI assesses the strength of a price [trend](../t/trend.md) and helps traders distinguish between trending and non-trending conditions. It serves as a tool for both [trend](../t/trend.md)-following and filtering out [market](../m/market.md) [noise](../n/noise.md), thus aiding in more informed decision-making in [financial markets](../f/financial_market.md). ### Components of DMI @@ -26,7 +26,7 @@ The smoothed averages of +DM and -DM over a specified period (commonly 14 days) - \( +DI = \left( \frac{SMMA(+DM)}{TR} \right) \times 100 \) - \( -DI = \left( \frac{SMMA(-DM)}{TR} \right) \times 100 \) -Where SMMA refers to the smoothed moving average. The ADX is then computed as the smoothed average of the Directional Movement [Index](../i/index.md) (DX): +Where SMMA refers to the smoothed moving average. The ADX is then computed as the smoothed average of the Directional Movement [Index](../i/index_instrument.md) (DX): - \( DX = \left( \frac{| +DI - -DI |}{+DI + -DI } \right) \times 100 \) - \( ADX = SMMA(DX) \) @@ -53,9 +53,9 @@ Crossover points between +DI and -DI are particularly significant: ### DMI in Algorithmic Trading -[Algorithmic trading](../a/algorithmic_trading.md) systems often incorporate DMI as part of complex [trading algorithms](../t/trading_algorithms.md). DMI offers clear quantitative criteria, enabling [trading systems](../t/trading_systems.md) to automatically generate buy or sell signals. By integrating DMI with other indicators like Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), or [Bollinger Bands](../b/bollinger_bands.md), algorithms can enhance decision-making accuracy and potentially improve profitability. +[Algorithmic trading](../a/algorithmic_trading.md) systems often incorporate DMI as part of complex [trading algorithms](../t/trading_algorithms.md). DMI offers clear quantitative criteria, enabling [trading systems](../t/trading_systems.md) to automatically generate buy or sell signals. By integrating DMI with other indicators like Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), or [Bollinger Bands](../b/bollinger_bands.md), algorithms can enhance decision-making accuracy and potentially improve profitability. -Here are a couple of use cases of the Directional Movement [Index](../i/index.md) in [algorithmic trading](../a/algorithmic_trading.md): +Here are a couple of use cases of the Directional Movement [Index](../i/index_instrument.md) in [algorithmic trading](../a/algorithmic_trading.md): #### Use Case 1: Trend Following Systems @@ -80,5 +80,5 @@ Several [algorithmic trading](../a/algorithmic_trading.md) platforms and provide ### Conclusion -The Directional Movement [Index](../i/index.md) (DMI) is a powerful tool in the arsenal of both manual and algorithmic traders. Its ability to quantify [trend](../t/trend.md) strength and deliver clear buy and sell signals makes it invaluable for crafting sophisticated [trading strategies](../t/trading_strategies.md). When used in conjunction with other [technical indicators](../t/technical_indicators.md), DMI offers enriched insights and [robust](../r/robust.md) trading opportunities, further emphasizing its enduring significance in the world of [financial markets](../f/financial_market.md). +The Directional Movement [Index](../i/index_instrument.md) (DMI) is a powerful tool in the arsenal of both manual and algorithmic traders. Its ability to quantify [trend](../t/trend.md) strength and deliver clear buy and sell signals makes it invaluable for crafting sophisticated [trading strategies](../t/trading_strategies.md). When used in conjunction with other [technical indicators](../t/technical_indicators.md), DMI offers enriched insights and [robust](../r/robust.md) trading opportunities, further emphasizing its enduring significance in the world of [financial markets](../f/financial_market.md). \ No newline at end of file diff --git a/en/pedia/d/discretionary_algorithms.md b/en/pedia/d/discretionary_algorithms.md index 11298649..5ad0de8d 100644 --- a/en/pedia/d/discretionary_algorithms.md +++ b/en/pedia/d/discretionary_algorithms.md @@ -25,7 +25,7 @@ Discretionary algorithms [leverage](../l/leverage.md) various data sources and a ## Application and Strategy ### 1. Technical Analysis -Traders using discretionary algorithms often rely heavily on [technical analysis](../t/technical_analysis.md), employing various [charting techniques](../c/charting_techniques.md) to identify potential trading opportunities. Indicators such as moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)) are commonly used within these systems, although the final trading decisions are made by humans. +Traders using discretionary algorithms often rely heavily on [technical analysis](../t/technical_analysis.md), employing various [charting techniques](../c/charting_techniques.md) to identify potential trading opportunities. Indicators such as moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)) are commonly used within these systems, although the final trading decisions are made by humans. ### 2. Fundamental Analysis [Fundamental analysis](../f/fundamental_analysis.md) can also play a significant role in [discretionary trading](../d/discretionary_trading.md) strategies. Traders might use [earnings](../e/earnings.md) reports, [economic indicators](../e/economic_indicators.md), and other fundamental data points to inform their decisions. The combination of fundamental insights with algorithmic data processing enables a more holistic approach to [market](../m/market.md) analysis. diff --git a/en/pedia/d/discretionary_trading.md b/en/pedia/d/discretionary_trading.md index ac5305fd..ccf27878 100644 --- a/en/pedia/d/discretionary_trading.md +++ b/en/pedia/d/discretionary_trading.md @@ -12,7 +12,7 @@ Discretionary trading involves a more subjective approach to the markets. The pr ### Techniques in Discretionary Trading -1. **[Technical Analysis](../t/technical_analysis.md)**: Discretionary traders frequently use [technical analysis](../t/technical_analysis.md) to identify trends, support/resistance levels, and potential entry or exit points. [Technical indicators](../t/technical_indicators.md) such as moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and MACD are commonly utilized. +1. **[Technical Analysis](../t/technical_analysis.md)**: Discretionary traders frequently use [technical analysis](../t/technical_analysis.md) to identify trends, support/resistance levels, and potential entry or exit points. [Technical indicators](../t/technical_indicators.md) such as moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and MACD are commonly utilized. 2. **[Fundamental Analysis](../f/fundamental_analysis.md)**: In addition to [technical analysis](../t/technical_analysis.md), some discretionary traders incorporate [fundamental analysis](../f/fundamental_analysis.md). This might include evaluating [economic indicators](../e/economic_indicators.md), company [earnings](../e/earnings.md) reports, and other [financial statements](../f/financial_statements.md). 3. **News Trading**: Some traders focus on trading based on news releases and [market](../m/market.md)-moving events. These traders aim to [capitalize](../c/capitalize.md) on [volatility](../v/volatility.md) and rapid price movements resulting from significant news. 4. **[Sentiment Analysis](../s/sentiment_analysis.md)**: Discretionary traders might also analyze [market sentiment](../m/market_sentiment.md) to gauge the mood of other traders and investors. Tools for [sentiment analysis](../s/sentiment_analysis.md) can include [social media](../s/social_media.md) trends, news sentiment, and [market](../m/market.md) surveys. diff --git a/en/pedia/d/discretionary_trading_strategies.md b/en/pedia/d/discretionary_trading_strategies.md index e5955d79..c9097540 100644 --- a/en/pedia/d/discretionary_trading_strategies.md +++ b/en/pedia/d/discretionary_trading_strategies.md @@ -54,7 +54,7 @@ News-based [trading strategies](../t/trading_strategies.md) involve making tradi Discretionary traders often rely on [technical analysis](../t/technical_analysis.md), which involves studying historical price charts and using [technical indicators](../t/technical_indicators.md) to forecast future price movements. Common [technical analysis](../t/technical_analysis.md) tools include: - **Moving Averages**: Identify trends and potential [reversal](../r/reversal.md) points. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measure [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measure [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **[Bollinger Bands](../b/bollinger_bands.md)**: Gauge [volatility](../v/volatility.md) and potential [breakout](../b/breakout.md) points. - **[Fibonacci Retracement](../f/fibonacci_retracement.md)**: Identify [support and resistance](../s/support_and_resistance.md) levels. @@ -62,7 +62,7 @@ Discretionary traders often rely on [technical analysis](../t/technical_analysis [Fundamental analysis](../f/fundamental_analysis.md) involves evaluating the [intrinsic value](../i/intrinsic_value.md) of an [asset](../a/asset.md) based on economic data, [financial statements](../f/financial_statements.md), and other qualitative factors. Discretionary traders use this analysis to make long-term investment decisions or to supplement their [short-term trading](../s/short-term_trading.md) strategies. ### Market Sentiment Indicators -[Market sentiment indicators](../m/market_sentiment_indicators.md), such as the Put/Call Ratio, VIX ([Volatility](../v/volatility.md) [Index](../i/index.md)), and Consumer Sentiment [Index](../i/index.md), provide insights into the overall mood of the [market](../m/market.md) participants. Discretionary traders use these indicators to gauge [market sentiment](../m/market_sentiment.md) and predict potential [market](../m/market.md) movements. +[Market sentiment indicators](../m/market_sentiment_indicators.md), such as the Put/Call Ratio, VIX ([Volatility](../v/volatility.md) [Index](../i/index_instrument.md)), and Consumer Sentiment [Index](../i/index_instrument.md), provide insights into the overall mood of the [market](../m/market.md) participants. Discretionary traders use these indicators to gauge [market sentiment](../m/market_sentiment.md) and predict potential [market](../m/market.md) movements. ### Risk Management [Risk management](../r/risk_management.md) is a crucial aspect of [discretionary trading](../d/discretionary_trading.md). Traders implement various techniques to manage [risk](../r/risk.md), such as: diff --git a/en/pedia/d/disequilibrium.md b/en/pedia/d/disequilibrium.md index ddcacff2..598b856f 100644 --- a/en/pedia/d/disequilibrium.md +++ b/en/pedia/d/disequilibrium.md @@ -21,7 +21,7 @@ Disequilibrium arises when the forces of [supply](../s/supply.md) and [demand](. 1. **Statistical [Arbitrage](../a/arbitrage.md)**: - **Pair Trading**: Involves the simultaneous purchase and [sale](../s/sale.md) of two assets that are historically correlated but have diverged in price. - - **[Index Arbitrage](../i/index_arbitrage.md)**: Exploits price differences between an [index](../i/index.md) and its constituent [stocks](../s/stock.md). + - **[Index Arbitrage](../i/index_arbitrage.md)**: Exploits price differences between an [index](../i/index_instrument.md) and its constituent [stocks](../s/stock.md). 2. **[Momentum](../m/momentum.md) Strategies**: - Buy or sell assets based on recent price trends. For example, if an [asset](../a/asset.md)'s price is rising, a [momentum](../m/momentum.md) algorithm may continue to buy in anticipation that the price [will](../w/will.md) keep going up. diff --git a/en/pedia/d/disinflation.md b/en/pedia/d/disinflation.md index ab813fa0..4e515c7a 100644 --- a/en/pedia/d/disinflation.md +++ b/en/pedia/d/disinflation.md @@ -44,7 +44,7 @@ The concept of disinflation is best understood by examining the mechanisms and d ### Measuring Disinflation 1. **[Inflation](../i/inflation.md) Rate**: - - The most direct measure is the rate of [inflation](../i/inflation.md) itself, typically calculated using indices like the Consumer Price [Index](../i/index.md) (CPI) or the Producer Price [Index](../i/index.md) (PPI). + - The most direct measure is the rate of [inflation](../i/inflation.md) itself, typically calculated using indices like the Consumer Price [Index](../i/index_instrument.md) (CPI) or the Producer Price [Index](../i/index_instrument.md) (PPI). - Disinflation is identified when these indices show a declining [trend](../t/trend.md) in the [inflation](../i/inflation.md) rate over a period. 2. **[Economic Indicators](../e/economic_indicators.md)**: diff --git a/en/pedia/d/disparity_index.md b/en/pedia/d/disparity_index.md index 73d66af5..849e1b46 100644 --- a/en/pedia/d/disparity_index.md +++ b/en/pedia/d/disparity_index.md @@ -1,17 +1,17 @@ # Disparity Index -The Disparity [Index](../i/index.md) is a [technical analysis](../t/technical_analysis.md) tool that helps traders measure the current price's deviation from a selected moving average, indicating whether an [asset](../a/asset.md) is [overbought](../o/overbought.md) or [oversold](../o/oversold.md). It can be applied to any [financial instrument](../f/financial_instrument.md) such as [stocks](../s/stock.md), commodities, Forex, etc. This [index](../i/index.md) is beneficial for everyone from day traders to long-term investors in making informed decisions. +The Disparity [Index](../i/index_instrument.md) is a [technical analysis](../t/technical_analysis.md) tool that helps traders measure the current price's deviation from a selected moving average, indicating whether an [asset](../a/asset.md) is [overbought](../o/overbought.md) or [oversold](../o/oversold.md). It can be applied to any [financial instrument](../f/financial_instrument.md) such as [stocks](../s/stock.md), commodities, Forex, etc. This [index](../i/index_instrument.md) is beneficial for everyone from day traders to long-term investors in making informed decisions. ## Definition -The Disparity [Index](../i/index.md) is the difference between the current price (or the closing price) of an [asset](../a/asset.md) and its moving average, expressed as a percentage. This percentage can either be positive or negative, indicating how far the current price is from the moving average and in which direction. +The Disparity [Index](../i/index_instrument.md) is the difference between the current price (or the closing price) of an [asset](../a/asset.md) and its moving average, expressed as a percentage. This percentage can either be positive or negative, indicating how far the current price is from the moving average and in which direction. ### Formula -The formula for calculating the Disparity [Index](../i/index.md) is: +The formula for calculating the Disparity [Index](../i/index_instrument.md) is: \[ -Disparity [Index](../i/index.md) (\%) = \left( \frac{Current Price - Moving Average}{Moving Average} \right) \times 100 +Disparity [Index](../i/index_instrument.md) (\%) = \left( \frac{Current Price - Moving Average}{Moving Average} \right) \times 100 \] Where: @@ -20,62 +20,62 @@ Where: ### Interpretation -- **Positive Disparity [Index](../i/index.md)**: If the [index](../i/index.md) is positive, the current price is above the moving average, suggesting a potential [overbought](../o/overbought.md) condition. -- **Negative Disparity [Index](../i/index.md)**: If the [index](../i/index.md) is negative, the current price is below the moving average, indicating a potential [oversold](../o/oversold.md) condition. +- **Positive Disparity [Index](../i/index_instrument.md)**: If the [index](../i/index_instrument.md) is positive, the current price is above the moving average, suggesting a potential [overbought](../o/overbought.md) condition. +- **Negative Disparity [Index](../i/index_instrument.md)**: If the [index](../i/index_instrument.md) is negative, the current price is below the moving average, indicating a potential [oversold](../o/oversold.md) condition. ### Typical Use Cases -1. **Identifying [Overbought](../o/overbought.md) or [Oversold](../o/oversold.md) Conditions**: Traders often use the Disparity [Index](../i/index.md) to ascertain whether the price of an [asset](../a/asset.md) is trading at an extremely high or low level relative to its moving average. -2. **Entry and Exit Signals**: A high positive Disparity [Index](../i/index.md) might signal a good selling opportunity, while a high negative Disparity [Index](../i/index.md) could indicate a buying opportunity. -3. **Divergences**: Traders can also use the Disparity [Index](../i/index.md) to identify divergences between price and its moving average, helping to anticipate [trend](../t/trend.md) reversals. +1. **Identifying [Overbought](../o/overbought.md) or [Oversold](../o/oversold.md) Conditions**: Traders often use the Disparity [Index](../i/index_instrument.md) to ascertain whether the price of an [asset](../a/asset.md) is trading at an extremely high or low level relative to its moving average. +2. **Entry and Exit Signals**: A high positive Disparity [Index](../i/index_instrument.md) might signal a good selling opportunity, while a high negative Disparity [Index](../i/index_instrument.md) could indicate a buying opportunity. +3. **Divergences**: Traders can also use the Disparity [Index](../i/index_instrument.md) to identify divergences between price and its moving average, helping to anticipate [trend](../t/trend.md) reversals. ### Example -Imagine the current price of a stock is $150, and its 50-day Simple Moving Average (SMA) is $140. The Disparity [Index](../i/index.md) would be calculated as follows: +Imagine the current price of a stock is $150, and its 50-day Simple Moving Average (SMA) is $140. The Disparity [Index](../i/index_instrument.md) would be calculated as follows: \[ -Disparity [Index](../i/index.md) (\%) = \left( \frac{150 - 140}{140} \right) \times 100 = 7.14\% +Disparity [Index](../i/index_instrument.md) (\%) = \left( \frac{150 - 140}{140} \right) \times 100 = 7.14\% \] -In this case, a Disparity [Index](../i/index.md) of 7.14% indicates that the current price is 7.14% above its [50-day moving average](../1/50-day_moving_average.md). +In this case, a Disparity [Index](../i/index_instrument.md) of 7.14% indicates that the current price is 7.14% above its [50-day moving average](../1/50-day_moving_average.md). ## Integrating the Disparity Index into Trading Strategies -Integrating the Disparity [Index](../i/index.md) into [trading systems](../t/trading_systems.md) involves combining it with other [technical indicators](../t/technical_indicators.md), [risk management](../r/risk_management.md) frameworks, and algorithmic strategies. +Integrating the Disparity [Index](../i/index_instrument.md) into [trading systems](../t/trading_systems.md) involves combining it with other [technical indicators](../t/technical_indicators.md), [risk management](../r/risk_management.md) frameworks, and algorithmic strategies. ### Combined Indicators -1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: When combined with RSI, the Disparity [Index](../i/index.md) can provide more profound insights into [overbought](../o/overbought.md)/[oversold](../o/oversold.md) conditions. -2. **[Bollinger Bands](../b/bollinger_bands.md)**: Utilizing [Bollinger Bands](../b/bollinger_bands.md) along with the Disparity [Index](../i/index.md) can help in understanding price [volatility](../v/volatility.md) and [mean reversion](../m/mean_reversion.md) tendencies. -3. **MACD (Moving Average Convergence [Divergence](../d/divergence.md))**: Using the Disparity [Index](../i/index.md) in conjunction with MACD can enhance the accuracy in spotting [trend](../t/trend.md) reversals. +1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: When combined with RSI, the Disparity [Index](../i/index_instrument.md) can provide more profound insights into [overbought](../o/overbought.md)/[oversold](../o/oversold.md) conditions. +2. **[Bollinger Bands](../b/bollinger_bands.md)**: Utilizing [Bollinger Bands](../b/bollinger_bands.md) along with the Disparity [Index](../i/index_instrument.md) can help in understanding price [volatility](../v/volatility.md) and [mean reversion](../m/mean_reversion.md) tendencies. +3. **MACD (Moving Average Convergence [Divergence](../d/divergence.md))**: Using the Disparity [Index](../i/index_instrument.md) in conjunction with MACD can enhance the accuracy in spotting [trend](../t/trend.md) reversals. ### Algorithmic Trading -In the world of [algorithmic trading](../a/algorithmic_trading.md), the Disparity [Index](../i/index.md) can be systematically incorporated into [trading algorithms](../t/trading_algorithms.md): +In the world of [algorithmic trading](../a/algorithmic_trading.md), the Disparity [Index](../i/index_instrument.md) can be systematically incorporated into [trading algorithms](../t/trading_algorithms.md): -1. **[Mean Reversion](../m/mean_reversion.md) Algorithms**: If the Disparity [Index](../i/index.md) indicates that the price is significantly deviated from the moving average, a [mean reversion](../m/mean_reversion.md) strategy could be implemented to [capitalize](../c/capitalize.md) on the [market](../m/market.md) returning to its average levels. -2. **[Momentum Trading](../m/momentum_trading.md) Algorithms**: Algorithms can also use the Disparity [Index](../i/index.md) to gauge [market](../m/market.md) [momentum](../m/momentum.md). A high positive [value](../v/value.md) might be used to ride an upward [trend](../t/trend.md), and vice versa. -3. **[Risk Management](../r/risk_management.md) Algorithms**: By setting predefined thresholds for the Disparity [Index](../i/index.md), traders can automate the process for stop-loss and take-[profit](../p/profit.md) orders. +1. **[Mean Reversion](../m/mean_reversion.md) Algorithms**: If the Disparity [Index](../i/index_instrument.md) indicates that the price is significantly deviated from the moving average, a [mean reversion](../m/mean_reversion.md) strategy could be implemented to [capitalize](../c/capitalize.md) on the [market](../m/market.md) returning to its average levels. +2. **[Momentum Trading](../m/momentum_trading.md) Algorithms**: Algorithms can also use the Disparity [Index](../i/index_instrument.md) to gauge [market](../m/market.md) [momentum](../m/momentum.md). A high positive [value](../v/value.md) might be used to ride an upward [trend](../t/trend.md), and vice versa. +3. **[Risk Management](../r/risk_management.md) Algorithms**: By setting predefined thresholds for the Disparity [Index](../i/index_instrument.md), traders can automate the process for stop-loss and take-[profit](../p/profit.md) orders. ## Real-world Applications and Software -Several trading platforms and institutions use the Disparity [Index](../i/index.md) in their automated systems: +Several trading platforms and institutions use the Disparity [Index](../i/index_instrument.md) in their automated systems: ### Bloomberg Terminal -The [Bloomberg](../b/bloomberg.md) Terminal provides functionalities for Disparity [Index](../i/index.md) analysis, allowing traders to set custom alerts based on Disparity [Index](../i/index.md) values. The [Bloomberg](../b/bloomberg.md) Terminal is widely used in [investment banking](../i/investment_banking.md), [asset management](../a/asset_management.md), and [wealth management](../w/wealth_management.md) industries. +The [Bloomberg](../b/bloomberg.md) Terminal provides functionalities for Disparity [Index](../i/index_instrument.md) analysis, allowing traders to set custom alerts based on Disparity [Index](../i/index_instrument.md) values. The [Bloomberg](../b/bloomberg.md) Terminal is widely used in [investment banking](../i/investment_banking.md), [asset management](../a/asset_management.md), and [wealth management](../w/wealth_management.md) industries. **Link**: [Bloomberg Professional Services](https://www.bloomberg.com/professional/solution/bloomberg-terminal/) ### MetaTrader 4 & 5 -MetaTrader platforms [offer](../o/offer.md) built-in indicators for the Disparity [Index](../i/index.md). Traders can also create custom Expert Advisors (EAs) to automate strategies based on the Disparity [Index](../i/index.md). +MetaTrader platforms [offer](../o/offer.md) built-in indicators for the Disparity [Index](../i/index_instrument.md). Traders can also create custom Expert Advisors (EAs) to automate strategies based on the Disparity [Index](../i/index_instrument.md). **Link**: [MetaTrader 4](https://www.metatrader4.com), [MetaTrader 5](https://www.metatrader5.com) ### NinjaTrader -[NinjaTrader](../n/ninjatrader.md) also supports the Disparity [Index](../i/index.md), allowing [backtesting](../b/backtesting.md) and deployment of custom strategies that include the Disparity [Index](../i/index.md) as a key parameter. +[NinjaTrader](../n/ninjatrader.md) also supports the Disparity [Index](../i/index_instrument.md), allowing [backtesting](../b/backtesting.md) and deployment of custom strategies that include the Disparity [Index](../i/index_instrument.md) as a key parameter. **Link**: [NinjaTrader](https://ninjatrader.com) @@ -83,7 +83,7 @@ MetaTrader platforms [offer](../o/offer.md) built-in indicators for the Disparit ### Advantages -1. **Simplicity**: The Disparity [Index](../i/index.md) is straightforward to understand and calculate. +1. **Simplicity**: The Disparity [Index](../i/index_instrument.md) is straightforward to understand and calculate. 2. **Versatility**: It can be applied to any [asset class](../a/asset_class.md), including [stocks](../s/stock.md), commodities, Forex, etc. 3. **Complementary**: It can be effectively combined with other indicators to improve [trading strategies](../t/trading_strategies.md). @@ -95,18 +95,18 @@ MetaTrader platforms [offer](../o/offer.md) built-in indicators for the Disparit ## Research and Development -Ongoing research and development in the field of [algorithmic trading](../a/algorithmic_trading.md) continue to enhance the [utility](../u/utility.md) of the Disparity [Index](../i/index.md). Machine learning models are increasingly being employed to refine the application of the Disparity [Index](../i/index.md): +Ongoing research and development in the field of [algorithmic trading](../a/algorithmic_trading.md) continue to enhance the [utility](../u/utility.md) of the Disparity [Index](../i/index_instrument.md). Machine learning models are increasingly being employed to refine the application of the Disparity [Index](../i/index_instrument.md): ### Machine Learning -1. **[Predictive Models](../p/predictive_models_in_trading.md)**: Machine learning models such as [neural networks](../n/neural_networks_in_trading.md) and [decision trees](../d/decision_trees.md) can use historical data to predict future price movements based on the Disparity [Index](../i/index.md) values. -2. **[Optimization](../o/optimization.md)**: [Genetic algorithms](../g/genetic_algorithms_in_trading.md) and other [optimization](../o/optimization.md) techniques help in fine-tuning the parameters (like the length of the moving average) to improve the reliability of the Disparity [Index](../i/index.md). +1. **[Predictive Models](../p/predictive_models_in_trading.md)**: Machine learning models such as [neural networks](../n/neural_networks_in_trading.md) and [decision trees](../d/decision_trees.md) can use historical data to predict future price movements based on the Disparity [Index](../i/index_instrument.md) values. +2. **[Optimization](../o/optimization.md)**: [Genetic algorithms](../g/genetic_algorithms_in_trading.md) and other [optimization](../o/optimization.md) techniques help in fine-tuning the parameters (like the length of the moving average) to improve the reliability of the Disparity [Index](../i/index_instrument.md). ### Case Studies -1. **Institutional Trading**: Financial institutions have integrated advanced forms of the Disparity [Index](../i/index.md) into their [high-frequency trading algorithms](../h/high-frequency_trading_algorithms.md) to exploit minor price discrepancies. -2. **Academic Research**: Numerous academic papers expound on the efficacy of incorporating the Disparity [Index](../i/index.md) into various trading paradigms, such as [momentum trading](../m/momentum_trading.md) and [mean reversion](../m/mean_reversion.md) strategies. +1. **Institutional Trading**: Financial institutions have integrated advanced forms of the Disparity [Index](../i/index_instrument.md) into their [high-frequency trading algorithms](../h/high-frequency_trading_algorithms.md) to exploit minor price discrepancies. +2. **Academic Research**: Numerous academic papers expound on the efficacy of incorporating the Disparity [Index](../i/index_instrument.md) into various trading paradigms, such as [momentum trading](../m/momentum_trading.md) and [mean reversion](../m/mean_reversion.md) strategies. ## Conclusion -The Disparity [Index](../i/index.md) remains a significant tool in [technical analysis](../t/technical_analysis.md) and [algorithmic trading](../a/algorithmic_trading.md). Its straightforward calculation and ability to identify [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions make it a versatile addition to any [trader](../t/trader.md)'s toolkit. As research and technology evolve, so too [will](../w/will.md) the applications and effectiveness of the Disparity [Index](../i/index.md) in [financial markets](../f/financial_market.md). \ No newline at end of file +The Disparity [Index](../i/index_instrument.md) remains a significant tool in [technical analysis](../t/technical_analysis.md) and [algorithmic trading](../a/algorithmic_trading.md). Its straightforward calculation and ability to identify [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions make it a versatile addition to any [trader](../t/trader.md)'s toolkit. As research and technology evolve, so too [will](../w/will.md) the applications and effectiveness of the Disparity [Index](../i/index_instrument.md) in [financial markets](../f/financial_market.md). \ No newline at end of file diff --git a/en/pedia/d/dispersion.md b/en/pedia/d/dispersion.md index 17ba6918..b6733857 100644 --- a/en/pedia/d/dispersion.md +++ b/en/pedia/d/dispersion.md @@ -69,16 +69,16 @@ Statistical [arbitrage](../a/arbitrage.md) involves trading based on statistical ## Case Study: Dispersion Trading Strategy -A dispersion [trading strategy](../t/trading_strategy.md) involves trading the [volatility](../v/volatility.md) of an [index](../i/index.md) versus the [volatility](../v/volatility.md) of its constituents. For instance, traders might [trade](../t/trade.md) the implied [volatility](../v/volatility.md) of an [equity](../e/equity.md) [index](../i/index.md) (like the S&P 500) against the implied volatilities of the [stocks](../s/stock.md) within that [index](../i/index.md). The idea is to [capitalize](../c/capitalize.md) on the difference (or dispersion) between the implied volatilities. +A dispersion [trading strategy](../t/trading_strategy.md) involves trading the [volatility](../v/volatility.md) of an [index](../i/index_instrument.md) versus the [volatility](../v/volatility.md) of its constituents. For instance, traders might [trade](../t/trade.md) the implied [volatility](../v/volatility.md) of an [equity](../e/equity.md) [index](../i/index_instrument.md) (like the S&P 500) against the implied volatilities of the [stocks](../s/stock.md) within that [index](../i/index_instrument.md). The idea is to [capitalize](../c/capitalize.md) on the difference (or dispersion) between the implied volatilities. ### Example: -A [trader](../t/trader.md) notices that the implied [volatility](../v/volatility.md) of the S&P 500 is low compared to the average implied volatilities of the individual [stocks](../s/stock.md) within the [index](../i/index.md). The [trader](../t/trader.md) can then: -- Buy [options](../o/options.md) on the S&P 500 (betting on an increase in [index](../i/index.md) [volatility](../v/volatility.md)). +A [trader](../t/trader.md) notices that the implied [volatility](../v/volatility.md) of the S&P 500 is low compared to the average implied volatilities of the individual [stocks](../s/stock.md) within the [index](../i/index_instrument.md). The [trader](../t/trader.md) can then: +- Buy [options](../o/options.md) on the S&P 500 (betting on an increase in [index](../i/index_instrument.md) [volatility](../v/volatility.md)). - Sell [options](../o/options.md) on the individual [stocks](../s/stock.md) within the S&P 500 (betting on a decrease in the dispersion of individual stock volatilities). ### Key Considerations: -1. **[Liquidity](../l/liquidity.md):** Ensure sufficient [liquidity](../l/liquidity.md) in both the [index](../i/index.md) and constituent [options](../o/options.md). -2. **Correlations:** Analyze correlations between the [index](../i/index.md) and its constituents. +1. **[Liquidity](../l/liquidity.md):** Ensure sufficient [liquidity](../l/liquidity.md) in both the [index](../i/index_instrument.md) and constituent [options](../o/options.md). +2. **Correlations:** Analyze correlations between the [index](../i/index_instrument.md) and its constituents. 3. **[Execution](../e/execution.md):** Efficient [execution](../e/execution.md) to manage [transaction costs](../t/transaction_costs.md). ## Companies and Tools for Dispersion Analysis diff --git a/en/pedia/d/divergence.md b/en/pedia/d/divergence.md index a682daaf..6beb8696 100644 --- a/en/pedia/d/divergence.md +++ b/en/pedia/d/divergence.md @@ -8,7 +8,7 @@ Divergence comes in two main types: Regular Divergence and Hidden Divergence. ### Regular Divergence -Regular Divergence is a situation where the price of an [asset](../a/asset.md) and a specific technical [indicator](../i/indicator.md), most commonly the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence Divergence (MACD), move in opposite directions. It can be either bullish or bearish. +Regular Divergence is a situation where the price of an [asset](../a/asset.md) and a specific technical [indicator](../i/indicator.md), most commonly the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence Divergence (MACD), move in opposite directions. It can be either bullish or bearish. #### Bullish Regular Divergence @@ -101,9 +101,9 @@ def find_divergence(prices, [indicator](../i/indicator.md)): divergences = [] for i in [range](../r/range.md)(1, len(prices)): if prices[i] < prices[i-1] and [indicator](../i/indicator.md)[i] > [indicator](../i/indicator.md)[i-1]: - divergences.append(('[Bullish Divergence](../b/bullish_divergence.md)', prices.[index](../i/index.md)[i])) + divergences.append(('[Bullish Divergence](../b/bullish_divergence.md)', prices.[index](../i/index_instrument.md)[i])) elif prices[i] > prices[i-1] and [indicator](../i/indicator.md)[i] < [indicator](../i/indicator.md)[i-1]: - divergences.append(('[Bearish Divergence](../b/bearish_divergence.md)', prices.[index](../i/index.md)[i])) + divergences.append(('[Bearish Divergence](../b/bearish_divergence.md)', prices.[index](../i/index_instrument.md)[i])) [return](../r/return.md) divergences # Example usage with dummy data diff --git a/en/pedia/d/diversification.md b/en/pedia/d/diversification.md index bd5e747f..0517f6da 100644 --- a/en/pedia/d/diversification.md +++ b/en/pedia/d/diversification.md @@ -54,7 +54,7 @@ Algorithms leveraging machine learning can adapt to changing [market](../m/marke ### Statistical Techniques -Methods like [Principal Component Analysis](../p/principal_component_analysis_(pca).md) (PCA) and Maximum Diversification [Index](../i/index.md) (MDI) help isolate uncorrelated investment opportunities. They can decompose complex [market](../m/market.md) phenomena into simpler, uncorrelated factors that algorithms can then exploit for diversified investments. +Methods like [Principal Component Analysis](../p/principal_component_analysis_(pca).md) (PCA) and Maximum Diversification [Index](../i/index_instrument.md) (MDI) help isolate uncorrelated investment opportunities. They can decompose complex [market](../m/market.md) phenomena into simpler, uncorrelated factors that algorithms can then exploit for diversified investments. ### Scenario Analysis and Stress Testing diff --git a/en/pedia/d/dividend_aristocrat.md b/en/pedia/d/dividend_aristocrat.md index a92167df..477404d4 100644 --- a/en/pedia/d/dividend_aristocrat.md +++ b/en/pedia/d/dividend_aristocrat.md @@ -77,7 +77,7 @@ Investors can purchase [shares](../s/shares.md) of individual [Dividend](../d/di ### Exchange-Traded Funds (ETFs) There are several ETFs specifically designed to track [Dividend](../d/dividend.md) Aristocrats. These funds provide diversified exposure to a collection of [Dividend](../d/dividend.md) Aristocrats and can be a hassle-free way to invest in this segment. -**SPDR S&P [Dividend](../d/dividend.md) ETF (SDY)**: Tracks the S&P 1500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index.md). +**SPDR S&P [Dividend](../d/dividend.md) ETF (SDY)**: Tracks the S&P 1500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index_instrument.md). **ProShares S&P 500 [Dividend](../d/dividend.md) Aristocrats ETF (NOBL)**: Tracks the [S&P 500 Dividend Aristocrats Index](../s/s&p_500_dividend_aristocrats_index.md). diff --git a/en/pedia/d/dividend_yield.md b/en/pedia/d/dividend_yield.md index 414ea3df..4b1a4f6d 100644 --- a/en/pedia/d/dividend_yield.md +++ b/en/pedia/d/dividend_yield.md @@ -27,7 +27,7 @@ A high [dividend](../d/dividend.md) [yield](../y/yield.md) can sometimes indicat ### Comparative Tool -[Dividend](../d/dividend.md) [yield](../y/yield.md) provides a means to compare the [income](../i/income.md)-generating potential of different investments, whether these are individual [stocks](../s/stock.md), mutual funds, or other [income](../i/income.md)-generating assets. Investors might compare the [yield](../y/yield.md) of a stock with the [yield](../y/yield.md) of a [benchmark](../b/benchmark.md) [index](../i/index.md), or with yields from other investment avenues like bonds or savings accounts. +[Dividend](../d/dividend.md) [yield](../y/yield.md) provides a means to compare the [income](../i/income.md)-generating potential of different investments, whether these are individual [stocks](../s/stock.md), mutual funds, or other [income](../i/income.md)-generating assets. Investors might compare the [yield](../y/yield.md) of a stock with the [yield](../y/yield.md) of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), or with yields from other investment avenues like bonds or savings accounts. ## Types of Companies with High Dividend Yield diff --git a/en/pedia/d/doji.md b/en/pedia/d/doji.md index 66922f53..2ece5521 100644 --- a/en/pedia/d/doji.md +++ b/en/pedia/d/doji.md @@ -61,7 +61,7 @@ To enhance the reliability of Doji patterns, many traders seek confirmation from ### Integrating Technical Indicators -Combining Doji patterns with other [technical indicators](../t/technical_indicator.md) can improve trading decisions. Indicators such as Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), or the Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can provide additional evidence supporting the potential direction indicated by the Doji. +Combining Doji patterns with other [technical indicators](../t/technical_indicator.md) can improve trading decisions. Indicators such as Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), or the Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can provide additional evidence supporting the potential direction indicated by the Doji. ### Risk Management diff --git a/en/pedia/d/dollar-cost_averaging_(dca).md b/en/pedia/d/dollar-cost_averaging_(dca).md index 948d1678..76392046 100644 --- a/en/pedia/d/dollar-cost_averaging_(dca).md +++ b/en/pedia/d/dollar-cost_averaging_(dca).md @@ -52,7 +52,7 @@ DCA is commonly used in purchasing [stocks](../s/stock.md) and mutual funds. Inv With the growing popularity of cryptocurrencies, DCA has become a favored strategy in the crypto community, particularly due to the high [volatility](../v/volatility.md) of digital assets. Many platforms now [offer](../o/offer.md) features that facilitate DCA in crypto investments. ### 3. Index Funds and ETFs -Investors frequently use DCA to invest in [index](../i/index.md) funds and [Exchange](../e/exchange.md)-Traded Funds (ETFs). This approach aligns with the long-term, [passive investment strategies](../p/passive_investment_strategies.md) often recommended for these assets. +Investors frequently use DCA to invest in [index](../i/index_instrument.md) funds and [Exchange](../e/exchange.md)-Traded Funds (ETFs). This approach aligns with the long-term, [passive investment strategies](../p/passive_investment_strategies.md) often recommended for these assets. ## Implementing a Dollar-Cost Averaging Strategy diff --git a/en/pedia/d/double_exponential_moving_average_(dema).md b/en/pedia/d/double_exponential_moving_average_(dema).md index 099af795..f02edb19 100644 --- a/en/pedia/d/double_exponential_moving_average_(dema).md +++ b/en/pedia/d/double_exponential_moving_average_(dema).md @@ -93,7 +93,7 @@ The period length chosen for DEMA calculation significantly impacts its responsi While DEMA itself is a potent tool, its effectiveness can be enhanced by combining it with other [technical indicators](../t/technical_indicator.md). For example: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** Can help confirm [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions indicated by DEMA. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** Can help confirm [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions indicated by DEMA. - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD):** Can provide additional confirmation for [trend](../t/trend.md) strength and direction. - **[Volume Indicators](../v/volume_indicators.md):** Can validate the strength of a [trend](../t/trend.md) by analyzing trading [volume](../v/volume.md) in conjunction with DEMA signals. diff --git a/en/pedia/d/double_top.md b/en/pedia/d/double_top.md index 712f1e2a..bcf227a6 100644 --- a/en/pedia/d/double_top.md +++ b/en/pedia/d/double_top.md @@ -29,7 +29,7 @@ The structure and form of a double top make it amenable to automated detection u ### Integration with Indicators -Double tops can be integrated with other [technical indicators](../t/technical_indicator.md) to enhance the accuracy of [trade](../t/trade.md) signals. Algorithms often combine double tops with [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Averages, and [Volume indicators](../v/volume_indicators.md) to filter out [false signals](../f/false_signals_in_trading.md). +Double tops can be integrated with other [technical indicators](../t/technical_indicator.md) to enhance the accuracy of [trade](../t/trade.md) signals. Algorithms often combine double tops with [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Averages, and [Volume indicators](../v/volume_indicators.md) to filter out [false signals](../f/false_signals_in_trading.md). ## Example of Algorithm Implementation @@ -76,7 +76,7 @@ def detect_double_top(prices): if np.isclose(peak1, peak2, atol=0.01): if prices[trough_index] > prices[peaks[1][0]]: - [return](../r/return.md) "Double Top Detected at [index](../i/index.md)", peaks[1][0] + [return](../r/return.md) "Double Top Detected at [index](../i/index_instrument.md)", peaks[1][0] [return](../r/return.md) "No Double Top" diff --git a/en/pedia/d/dow_30.md b/en/pedia/d/dow_30.md index a05ddedb..f8f06ff5 100644 --- a/en/pedia/d/dow_30.md +++ b/en/pedia/d/dow_30.md @@ -1,6 +1,6 @@ # Dow 30 -The Dow Jones Industrial Average (DJIA), often simply referred to as the "Dow," is one of the most well-known [stock market](../s/stock_market.md) indices in the world. It tracks 30 large, publicly-owned companies trading on the New York Stock [Exchange](../e/exchange.md) (NYSE) and the [NASDAQ](../n/nasdaq.md). The [index](../i/index.md) is widely used to gauge the overall health of the [stock market](../s/stock_market.md) and the [economy](../e/economy.md). Having a comprehensive understanding of the Dow 30 is critical for anyone interested in trading, especially [algorithmic trading](../a/accountability.md). +The Dow Jones Industrial Average (DJIA), often simply referred to as the "Dow," is one of the most well-known [stock market](../s/stock_market.md) indices in the world. It tracks 30 large, publicly-owned companies trading on the New York Stock [Exchange](../e/exchange.md) (NYSE) and the [NASDAQ](../n/nasdaq.md). The [index](../i/index_instrument.md) is widely used to gauge the overall health of the [stock market](../s/stock_market.md) and the [economy](../e/economy.md). Having a comprehensive understanding of the Dow 30 is critical for anyone interested in trading, especially [algorithmic trading](../a/accountability.md). ## The Companies in the Dow 30 @@ -174,6 +174,6 @@ The historical data of Dow 30 companies is extensive and reliable, making these ## Conclusion -The Dow 30 represents the backbone of American [industry](../i/industry.md) and offers a diverse [range](../r/range.md) of opportunities for algorithmic traders. From technological giants like Apple and Microsoft to industrial behemoths like Boeing and Caterpillar, the breadth and depth of the companies within this [index](../i/index.md) make it an essential tool for anyone involved in trading or [investing](../i/investing.md). Whether you’re an [institutional investor](../i/institutional_investor.md) or an individual [trader](../t/trader.md) employing algorithms, understanding the Dow 30 can provide a significant edge in the ever-competitive [financial markets](../f/financial_market.md). +The Dow 30 represents the backbone of American [industry](../i/industry.md) and offers a diverse [range](../r/range.md) of opportunities for algorithmic traders. From technological giants like Apple and Microsoft to industrial behemoths like Boeing and Caterpillar, the breadth and depth of the companies within this [index](../i/index_instrument.md) make it an essential tool for anyone involved in trading or [investing](../i/investing.md). Whether you’re an [institutional investor](../i/institutional_investor.md) or an individual [trader](../t/trader.md) employing algorithms, understanding the Dow 30 can provide a significant edge in the ever-competitive [financial markets](../f/financial_market.md). For more detailed information about the companies, visit their official websites linked to their names in the list above. diff --git a/en/pedia/d/dow_jones_cdx.md b/en/pedia/d/dow_jones_cdx.md index a2c1eb03..aeec1d65 100644 --- a/en/pedia/d/dow_jones_cdx.md +++ b/en/pedia/d/dow_jones_cdx.md @@ -1,10 +1,10 @@ # Dow Jones CDX -The Dow Jones CDX, or [Credit](../c/credit.md) [Default](../d/default.md) [Swap](../s/swap.md) [Index](../i/index.md), is a vital [financial instrument](../f/financial_instrument.md) used by traders and investors to [hedge](../h/hedge.md) against or speculate on [credit risk](../c/credit_risk.md) within the [credit](../c/credit.md) markets. The CDX indices are a standardized basket of [credit default swaps](../c/credit_default_swaps.md) and are used to [gain](../g/gain.md) exposure to [credit](../c/credit.md) markets in an efficient manner. This article explores the methodology, importance, applications, and the stakeholders involved in the Dow Jones CDX indices. +The Dow Jones CDX, or [Credit](../c/credit.md) [Default](../d/default.md) [Swap](../s/swap.md) [Index](../i/index_instrument.md), is a vital [financial instrument](../f/financial_instrument.md) used by traders and investors to [hedge](../h/hedge.md) against or speculate on [credit risk](../c/credit_risk.md) within the [credit](../c/credit.md) markets. The CDX indices are a standardized basket of [credit default swaps](../c/credit_default_swaps.md) and are used to [gain](../g/gain.md) exposure to [credit](../c/credit.md) markets in an efficient manner. This article explores the methodology, importance, applications, and the stakeholders involved in the Dow Jones CDX indices. ## Introduction -The Dow Jones CDX indices are part of a broader suite of [credit](../c/credit.md) [default](../d/default.md) [swap](../s/swap.md) (CDS) indices that provide [market](../m/market.md) participants with a [benchmark](../b/benchmark.md) for [credit](../c/credit.md) [derivative](../d/derivative.md) markets. These indices are maintained by IHS Markit, which offers detailed insight and analytics about [credit risk](../c/credit_risk.md). Each [index](../i/index.md) contains a basket of CDS contracts on entities from different sectors and ratings categories, thereby giving a diversified exposure to [credit risk](../c/credit_risk.md). +The Dow Jones CDX indices are part of a broader suite of [credit](../c/credit.md) [default](../d/default.md) [swap](../s/swap.md) (CDS) indices that provide [market](../m/market.md) participants with a [benchmark](../b/benchmark.md) for [credit](../c/credit.md) [derivative](../d/derivative.md) markets. These indices are maintained by IHS Markit, which offers detailed insight and analytics about [credit risk](../c/credit_risk.md). Each [index](../i/index_instrument.md) contains a basket of CDS contracts on entities from different sectors and ratings categories, thereby giving a diversified exposure to [credit risk](../c/credit_risk.md). ## Methodology @@ -14,11 +14,11 @@ The CDX indices are constructed by compiling a list of eligible entities, which ### Weighting Scheme -The weighting scheme for the CDX indices can be equal or based on [market capitalization](../m/market_capitalization.md). The weighting impacts the performance and [risk](../r/risk.md) characteristics of the [index](../i/index.md), which affects traders and investors using the [index](../i/index.md) for hedging or speculative purposes. +The weighting scheme for the CDX indices can be equal or based on [market capitalization](../m/market_capitalization.md). The weighting impacts the performance and [risk](../r/risk.md) characteristics of the [index](../i/index_instrument.md), which affects traders and investors using the [index](../i/index_instrument.md) for hedging or speculative purposes. ### Series Roll -The Dow Jones CDX indices undergo periodic series rolls, commonly twice a year in March and September. During a series roll, the constituents are reviewed and updated to ensure the [index](../i/index.md) remains current and representative of the [market](../m/market.md). New series are launched to replace the maturing series, ensuring continuity and relevance. +The Dow Jones CDX indices undergo periodic series rolls, commonly twice a year in March and September. During a series roll, the constituents are reviewed and updated to ensure the [index](../i/index_instrument.md) remains current and representative of the [market](../m/market.md). New series are launched to replace the maturing series, ensuring continuity and relevance. ## Importance @@ -28,7 +28,7 @@ The CDX indices serve as critical benchmarks for [credit](../c/credit.md) market ### Risk Management -Investors and portfolio managers use the Dow Jones CDX indices for [risk management](../r/risk_management.md) purposes. By taking positions in the [index](../i/index.md), they can [hedge](../h/hedge.md) against [credit risk](../c/credit_risk.md) associated with individual securities or portfolios. This is particularly useful in turbulent [market](../m/market.md) conditions when managing [credit](../c/credit.md) exposure is paramount. +Investors and portfolio managers use the Dow Jones CDX indices for [risk management](../r/risk_management.md) purposes. By taking positions in the [index](../i/index_instrument.md), they can [hedge](../h/hedge.md) against [credit risk](../c/credit_risk.md) associated with individual securities or portfolios. This is particularly useful in turbulent [market](../m/market.md) conditions when managing [credit](../c/credit.md) exposure is paramount. ### Speculation @@ -46,7 +46,7 @@ Corporations and financial institutions use the CDX indices to [hedge](../h/hedg ### Credit Derivatives Trading -The Dow Jones CDX indices are extensively used in the trading of [credit](../c/credit.md) [derivatives](../d/derivatives.md). [Market](../m/market.md) participants engage in buying and selling [index](../i/index.md) [tranches](../t/tranches.md), allowing for targeted exposure to specific segments of the [credit](../c/credit.md) spectrum. These [tranches](../t/tranches.md) are categorized by [risk](../r/risk.md) levels, providing a tailored approach to [credit](../c/credit.md) [risk management](../r/risk_management.md). +The Dow Jones CDX indices are extensively used in the trading of [credit](../c/credit.md) [derivatives](../d/derivatives.md). [Market](../m/market.md) participants engage in buying and selling [index](../i/index_instrument.md) [tranches](../t/tranches.md), allowing for targeted exposure to specific segments of the [credit](../c/credit.md) spectrum. These [tranches](../t/tranches.md) are categorized by [risk](../r/risk.md) levels, providing a tailored approach to [credit](../c/credit.md) [risk management](../r/risk_management.md). ## Stakeholders diff --git a/en/pedia/d/dow_jones_industrial_average_(djia).md b/en/pedia/d/dow_jones_industrial_average_(djia).md index b83d0281..36c42866 100644 --- a/en/pedia/d/dow_jones_industrial_average_(djia).md +++ b/en/pedia/d/dow_jones_industrial_average_(djia).md @@ -5,18 +5,18 @@ The Dow Jones Industrial Average (DJIA), often simply referred to as "the Dow," ## History and Evolution ### Inception -The DJIA was initially composed of only 12 companies, mainly from the industrial sector, which was the economic driving force at the time. The original lineup included companies like American Tobacco, General Electric, and National Lead. Over the years, the [index](../i/index.md) has expanded to include 30 companies, with significant changes reflecting the evolving [economy](../e/economy.md). +The DJIA was initially composed of only 12 companies, mainly from the industrial sector, which was the economic driving force at the time. The original lineup included companies like American Tobacco, General Electric, and National Lead. Over the years, the [index](../i/index_instrument.md) has expanded to include 30 companies, with significant changes reflecting the evolving [economy](../e/economy.md). ### Modern Era -As the US [economy](../e/economy.md) shifted from [heavy industry](../h/heavy_industry.md) to technology and services, the composition of the DJIA has also changed. Companies such as Apple, Microsoft, and Cisco Systems have replaced industrial giants from years past. The [index](../i/index.md) is maintained by S&P Dow Jones Indices, which is a [joint](../j/joint.md) venture of S&P Global. +As the US [economy](../e/economy.md) shifted from [heavy industry](../h/heavy_industry.md) to technology and services, the composition of the DJIA has also changed. Companies such as Apple, Microsoft, and Cisco Systems have replaced industrial giants from years past. The [index](../i/index_instrument.md) is maintained by S&P Dow Jones Indices, which is a [joint](../j/joint.md) venture of S&P Global. ## Calculating the DJIA ### Price-Weighted Index -One key feature that sets the DJIA apart from other indices is its price-[weighted](../w/weighted.md) calculation methodology. In a [price-weighted index](../p/price-weighted_index.md), [stocks](../s/stock.md) with higher prices have more influence on the [index](../i/index.md)'s movement than those with lower prices. This contrasts with [market](../m/market.md)-cap [weighted](../w/weighted.md) indices like the S&P 500, where the size of the company ([market capitalization](../m/market_capitalization.md)) determines its influence. +One key feature that sets the DJIA apart from other indices is its price-[weighted](../w/weighted.md) calculation methodology. In a [price-weighted index](../p/price-weighted_index.md), [stocks](../s/stock.md) with higher prices have more influence on the [index](../i/index_instrument.md)'s movement than those with lower prices. This contrasts with [market](../m/market.md)-cap [weighted](../w/weighted.md) indices like the S&P 500, where the size of the company ([market capitalization](../m/market_capitalization.md)) determines its influence. ### The Dow Divisor -To maintain consistency when companies split their [stocks](../s/stock.md) or when new companies are added, the DJIA uses a specialized constant called the "Dow Divisor." This divisor ensures that such corporate actions do not disproportionately affect the [index](../i/index.md)'s [value](../v/value.md). +To maintain consistency when companies split their [stocks](../s/stock.md) or when new companies are added, the DJIA uses a specialized constant called the "Dow Divisor." This divisor ensures that such corporate actions do not disproportionately affect the [index](../i/index_instrument.md)'s [value](../v/value.md). ## Components of the DJIA @@ -46,7 +46,7 @@ For the most up-to-date list of DJIA components, refer to the official S&P Dow J ## Importance of the DJIA ### Economic Indicator -The DJIA is a critical [economic indicator](../e/economic_indicator.md). Movements in the [index](../i/index.md) are watched closely by investors, policy-makers, and the general public. It provides insights into the health of the [stock market](../s/stock_market.md) specifically and the [economy](../e/economy.md) in general. +The DJIA is a critical [economic indicator](../e/economic_indicator.md). Movements in the [index](../i/index_instrument.md) are watched closely by investors, policy-makers, and the general public. It provides insights into the health of the [stock market](../s/stock_market.md) specifically and the [economy](../e/economy.md) in general. ### Investor Sentiment The DJIA often reflects [investor](../i/investor.md) sentiment. A rising Dow usually indicates optimism about the [economy](../e/economy.md) and corporate [earnings](../e/earnings.md), while a falling Dow can signal caution or pessimism. @@ -54,7 +54,7 @@ The DJIA often reflects [investor](../i/investor.md) sentiment. A rising Dow usu ## Criticisms of the DJIA ### Price-Weighting -Critics argue that the price-[weighted](../w/weighted.md) methodology is arbitrary and can distort the true economic contribution of constituent companies. A high-priced stock can disproportionately influence the [index](../i/index.md) even if the company has a smaller [market capitalization](../m/market_capitalization.md) than other constituents. +Critics argue that the price-[weighted](../w/weighted.md) methodology is arbitrary and can distort the true economic contribution of constituent companies. A high-priced stock can disproportionately influence the [index](../i/index_instrument.md) even if the company has a smaller [market capitalization](../m/market_capitalization.md) than other constituents. ### Limited Scope With only 30 companies, the DJIA is less diversified compared to broader indices like the S&P 500 or the Russell 2000. Therefore, it may not fully capture the performance of the US [market](../m/market.md) as a whole. @@ -73,13 +73,13 @@ The [NASDAQ](../n/nasdaq.md) Composite includes thousands of companies, primaril ## Key Historical Milestones ### Great Depression -The DJIA hit its peak before the 1929 [stock market crash](../s/stock_market_crash.md) and subsequently lost nearly 90% of its [value](../v/value.md). It took until the mid-1950s for the [index](../i/index.md) to regain its pre-crash highs. +The DJIA hit its peak before the 1929 [stock market crash](../s/stock_market_crash.md) and subsequently lost nearly 90% of its [value](../v/value.md). It took until the mid-1950s for the [index](../i/index_instrument.md) to regain its pre-crash highs. ### Dot-Com Bubble During the late 1990s and early 2000s, the DJIA surged as tech [stocks](../s/stock.md) soared. However, the burst of the dot-com bubble led to significant losses. ### 2008 Financial Crisis -The DJIA experienced its most significant single-day point drop in September 2008 amid the [financial crisis](../f/financial_crisis.md). It took years to recover, highlighting the [index](../i/index.md)’s [volatility](../v/volatility.md) during economic upheaval. +The DJIA experienced its most significant single-day point drop in September 2008 amid the [financial crisis](../f/financial_crisis.md). It took years to recover, highlighting the [index](../i/index_instrument.md)’s [volatility](../v/volatility.md) during economic upheaval. ### COVID-19 Pandemic In 2020, the DJIA experienced unprecedented [volatility](../v/volatility.md). It hit record highs early in the year, plummeted in March due to pandemic fears, and then rebounded remarkably by year-end, showcasing the [market](../m/market.md)'s resilience. diff --git a/en/pedia/d/downside_risk.md b/en/pedia/d/downside_risk.md index 58ceab52..c079cffc 100644 --- a/en/pedia/d/downside_risk.md +++ b/en/pedia/d/downside_risk.md @@ -77,7 +77,7 @@ A [stop-loss order](../s/stop-loss_order.md) is an instruction to sell a [securi ### Hedging with Inverse ETFs -[Inverse ETFs](../i/inverse_etfs.md) are designed to move in the opposite direction of a specific [index](../i/index.md) or [benchmark](../b/benchmark.md). By incorporating [inverse ETFs](../i/inverse_etfs.md) into a portfolio, investors can [hedge](../h/hedge.md) against [market](../m/market.md) downturns, effectively reducing downside [risk](../r/risk.md). +[Inverse ETFs](../i/inverse_etfs.md) are designed to move in the opposite direction of a specific [index](../i/index_instrument.md) or [benchmark](../b/benchmark.md). By incorporating [inverse ETFs](../i/inverse_etfs.md) into a portfolio, investors can [hedge](../h/hedge.md) against [market](../m/market.md) downturns, effectively reducing downside [risk](../r/risk.md). ## Downside Risk and Financial Regulations diff --git a/en/pedia/d/downtrend.md b/en/pedia/d/downtrend.md index 050ae6cc..43871e7a 100644 --- a/en/pedia/d/downtrend.md +++ b/en/pedia/d/downtrend.md @@ -47,7 +47,7 @@ Profiting from a downtrend requires different strategies compared to a rising [m [Put options](../p/put_options.md) give the holder the right, but not the obligation, to sell a certain amount of an [underlying security](../u/underlying_security.md) at a specified price within a specified time. [Put options](../p/put_options.md) can be used as a [hedge](../h/hedge.md) or a speculative tool. ## Inverse ETFs -Inverse [exchange](../e/exchange.md)-traded funds (ETFs) are designed to provide the opposite [return](../r/return.md) of an [index](../i/index.md) or [benchmark](../b/benchmark.md). They can be used to [profit](../p/profit.md) from a downtrend without the need for [short selling](../s/short_selling.md). +Inverse [exchange](../e/exchange.md)-traded funds (ETFs) are designed to provide the opposite [return](../r/return.md) of an [index](../i/index_instrument.md) or [benchmark](../b/benchmark.md). They can be used to [profit](../p/profit.md) from a downtrend without the need for [short selling](../s/short_selling.md). ## Stop-Loss Orders Placing [stop-loss orders](../s/stop-loss_orders.md) can help traders manage [risk](../r/risk.md) by automatically selling a [security](../s/security.md) when its price falls to a predetermined level. diff --git a/en/pedia/d/dragonfly_doji_candlestick.md b/en/pedia/d/dragonfly_doji_candlestick.md index 47965c61..783d412d 100644 --- a/en/pedia/d/dragonfly_doji_candlestick.md +++ b/en/pedia/d/dragonfly_doji_candlestick.md @@ -47,7 +47,7 @@ Consider a scenario in which an algorithm is designed to [trade](../t/trade.md) 1. **Data Collection**: Gather historical price data for the [asset](../a/asset.md) in question. 2. **[Pattern Recognition](../p/pattern_recognition.md)**: Identify any occurrences of the Dragonfly [Doji](../d/doji.md) pattern within the data. -3. **Confirmation**: [Check](../c/check.md) for subsequent bullish candlesticks or additional [technical indicators](../t/technical_indicator.md) like RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)) signaling [oversold](../o/oversold.md) conditions. +3. **Confirmation**: [Check](../c/check.md) for subsequent bullish candlesticks or additional [technical indicators](../t/technical_indicator.md) like RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)) signaling [oversold](../o/oversold.md) conditions. 4. **[Execution](../e/execution.md)**: Place a buy [order](../o/order.md) if the pattern and confirmation criteria are met. 5. **[Risk Management](../r/risk_management.md)**: Set a [stop-loss order](../s/stop-loss_order.md) at the lowest point of the Dragonfly's shadow and a take-[profit](../p/profit.md) [order](../o/order.md) based on a predefined ratio. diff --git a/en/pedia/d/dual_moving_average_crossover.md b/en/pedia/d/dual_moving_average_crossover.md index 8e7c6424..05615b4b 100644 --- a/en/pedia/d/dual_moving_average_crossover.md +++ b/en/pedia/d/dual_moving_average_crossover.md @@ -83,12 +83,12 @@ plt.plot(data['short_mavg'], label = f'{short_window}-Day SMA') plt.plot(data['long_mavg'], label = f'{long_window}-Day SMA') # Plot the buy signals -plt.plot(signals.loc[signals.positions == 1.0].[index](../i/index.md), +plt.plot(signals.loc[signals.positions == 1.0].[index](../i/index_instrument.md), signals.short_mavg[signals.positions == 1.0], '^', markersize=10, color='g', lw=0, label='buy') # Plot the sell signals -plt.plot(signals.loc[signals.positions == -1.0].[index](../i/index.md), +plt.plot(signals.loc[signals.positions == -1.0].[index](../i/index_instrument.md), signals.short_mavg[signals.positions == -1.0], 'v', markersize=10, color='r', lw=0, label='sell') @@ -176,7 +176,7 @@ Numerous [software platforms](../s/software_platforms_for_trading.md) and tools ### Historical Analysis -A historical analysis of the Dual Moving Average Crossover strategy using a 50-day SMA and a 200-day SMA on the SP 500 [index](../i/index.md) provides insight into its effectiveness: +A historical analysis of the Dual Moving Average Crossover strategy using a 50-day SMA and a 200-day SMA on the SP 500 [index](../i/index_instrument.md) provides insight into its effectiveness: - **2008 [Financial Crisis](../f/financial_crisis.md)**: During the [market](../m/market.md) downturn, the 50-day SMA crossed below the 200-day SMA, generating a sell signal that could have helped traders avoid significant losses. - **2019 [Bull Market](../b/bull_market.md)**: In early 2019, the 50-day SMA crossed above the 200-day SMA, producing a buy signal that allowed traders to [capitalize](../c/capitalize.md) on a strong upward [trend](../t/trend.md). @@ -191,7 +191,7 @@ Conducting thorough [backtesting](../b/backtesting.md) is crucial to validate th - **[Risk-adjusted return](../r/risk-adjusted_return.md)**: [Return](../r/return.md) analysis [accounting](../a/accounting.md) for the [risk](../r/risk.md) exposure. - **Drawdowns**: Maximum losses during the [simulation](../s/simulation_in_trading.md) period. -For instance, a backtest over a 10-year period on the SP 500 [index](../i/index.md) may show a 60% win rate with an average [annual return](../a/annual_return.md) of 8%, adjusted for [risk](../r/risk.md). +For instance, a backtest over a 10-year period on the SP 500 [index](../i/index_instrument.md) may show a 60% win rate with an average [annual return](../a/annual_return.md) of 8%, adjusted for [risk](../r/risk.md). ## Conclusion diff --git a/en/pedia/d/dubai_financial_market_(dfm).md b/en/pedia/d/dubai_financial_market_(dfm).md index 9bf91e46..b857ddcb 100644 --- a/en/pedia/d/dubai_financial_market_(dfm).md +++ b/en/pedia/d/dubai_financial_market_(dfm).md @@ -42,11 +42,11 @@ The Dubai Financial [Market](../m/market.md) operates under the regulatory overs DFM also maintains several indices as benchmarks for [market](../m/market.md) performance: -1. **DFM General [Index](../i/index.md) (DFMGI)**: The primary [index](../i/index.md) that tracks the performance of companies [listed](../l/listed.md) on the DFM. +1. **DFM General [Index](../i/index_instrument.md) (DFMGI)**: The primary [index](../i/index_instrument.md) that tracks the performance of companies [listed](../l/listed.md) on the DFM. 2. **Sectoral Indices**: Various sectors such as banking, [real estate](../r/real_estate.md), etc., have their own indices to track performance within those particular spheres. -3. **Shariah [Index](../i/index.md)**: This [index](../i/index.md) measures the performance of companies compliant with Islamic Shariah law. +3. **Shariah [Index](../i/index_instrument.md)**: This [index](../i/index_instrument.md) measures the performance of companies compliant with Islamic Shariah law. ## Technological and Digital Initiatives @@ -78,7 +78,7 @@ DFM lists several [Exchange](../e/exchange.md)-Traded Funds (ETFs) and mutual fu ### Technical Analysis for Trading -For [algorithmic trading](../a/accountability.md) enthusiasts, DFM offers comprehensive, real-time data feeds that are crucial for developing and running [trading algorithms](../t/trading_algorithms.md). [Technical indicators](../t/technical_indicator.md) like Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), [Bollinger Bands](../b/bollinger_band.md), and Moving Average Convergence [Divergence](../d/divergence.md) (MACD) are some common tools used by traders to make data-driven decisions. +For [algorithmic trading](../a/accountability.md) enthusiasts, DFM offers comprehensive, real-time data feeds that are crucial for developing and running [trading algorithms](../t/trading_algorithms.md). [Technical indicators](../t/technical_indicator.md) like Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), [Bollinger Bands](../b/bollinger_band.md), and Moving Average Convergence [Divergence](../d/divergence.md) (MACD) are some common tools used by traders to make data-driven decisions. ## Corporate Governance and Ethical Trading diff --git a/en/pedia/d/dynamic_asset_allocation.md b/en/pedia/d/dynamic_asset_allocation.md index ada1775c..c557ebfc 100644 --- a/en/pedia/d/dynamic_asset_allocation.md +++ b/en/pedia/d/dynamic_asset_allocation.md @@ -46,7 +46,7 @@ Dynamic [Asset Allocation](../a/asset_allocation.md) (DAA) is an [investment str 4. **Core-Satellite Approach**: - **Stable Core**: Maintains a stable, long-term investment in core [asset](../a/asset.md) classes. - **Active Satellite**: Uses a smaller portion of the portfolio for [active management](../a/active_management.md) and higher-[risk](../r/risk.md) investments. - - **Example**: Maintaining a core investment in [index](../i/index.md) funds while actively managing a smaller portion in [stocks](../s/stock.md). + - **Example**: Maintaining a core investment in [index](../i/index_instrument.md) funds while actively managing a smaller portion in [stocks](../s/stock.md). ### Example Companies Implementing Dynamic Asset Allocation @@ -55,7 +55,7 @@ Dynamic [Asset Allocation](../a/asset_allocation.md) (DAA) is an [investment str - **Link**: [BlackRock](https://www.blackrock.com) 2. **Vanguard**: - - **Description**: Vanguard is a major [investment management](../i/investment_management.md) company known for its [index](../i/index.md) funds and ETFs, also providing dynamic [asset allocation](../a/asset_allocation.md) strategies through its actively managed funds. + - **Description**: Vanguard is a major [investment management](../i/investment_management.md) company known for its [index](../i/index_instrument.md) funds and ETFs, also providing dynamic [asset allocation](../a/asset_allocation.md) strategies through its actively managed funds. - **Link**: [Vanguard](https://www.vanguard.com) 3. **State Street Global Advisors**: diff --git a/en/pedia/d/dynamic_quantitative_models.md b/en/pedia/d/dynamic_quantitative_models.md index da9e8f6e..717d9f88 100644 --- a/en/pedia/d/dynamic_quantitative_models.md +++ b/en/pedia/d/dynamic_quantitative_models.md @@ -13,7 +13,7 @@ Dynamic [Quantitative Models](../q/quantitative_models.md) employ statistical te - **[Data Cleaning](../d/data_cleaning.md) and Normalization**: Raw data is cleaned to remove inaccuracies or anomalies and normalized to ensure consistency. 2. **Feature Engineering**: - - **[Technical Indicators](../t/technical_indicators.md)**: Indicators such as Moving Averages (MA), [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) are computed. + - **[Technical Indicators](../t/technical_indicators.md)**: Indicators such as Moving Averages (MA), [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) are computed. - **[Sentiment Analysis](../s/sentiment_analysis.md)**: [Natural Language Processing](../n/natural_language_processing_(nlp)_in_trading.md) (NLP) techniques analyze [market sentiment](../m/market_sentiment.md) from news articles and [social media](../s/social_media.md). 3. **Model Development**: diff --git a/en/pedia/e/e-mini.md b/en/pedia/e/e-mini.md index a08c02fb..a51e2475 100644 --- a/en/pedia/e/e-mini.md +++ b/en/pedia/e/e-mini.md @@ -7,15 +7,15 @@ The E-Mini, also known as the E-Mini [futures contract](../f/futures_contract.md E-Mini [futures contracts](../f/futures_contracts.md) are standardized, meaning they have set specifications regarding their size, expiration dates, and [tick](../t/tick.md) values. Below are the primary characteristics of E-Mini [futures](../f/futures.md): - **Contract Size**: The E-Mini [futures contract](../f/futures_contract.md) is one-fifth the size of the standard S&P 500 [futures contract](../f/futures_contract.md). This smaller size makes it more accessible to a wider [range](../r/range.md) of traders. -- **Ticker Symbols**: Various ticker symbols are used to represent E-Mini contracts, depending on the [index](../i/index.md). For example, the ticker "ES" represents the E-Mini S&P 500 [futures](../f/futures.md). +- **Ticker Symbols**: Various ticker symbols are used to represent E-Mini contracts, depending on the [index](../i/index_instrument.md). For example, the ticker "ES" represents the E-Mini S&P 500 [futures](../f/futures.md). - **Expiration**: E-Mini contracts typically have quarterly expiration dates, falling on the third Friday of March, June, September, and December. - **[Leverage](../l/leverage.md)**: E-Mini contracts [offer](../o/offer.md) significant [leverage](../l/leverage.md), allowing traders to control a large position with a relatively small amount of [capital](../c/capital.md). - **[Margin](../m/margin.md) Requirements**: The [margin](../m/margin.md) requirements for E-Mini [futures](../f/futures.md) are lower compared to the standard S&P 500 [futures](../f/futures.md), making them more accessible for individual traders. ## Types of E-Mini Contracts -Several types of E-Mini [futures contracts](../f/futures_contracts.md) are available for trading, each correlated to a specific [index](../i/index.md). The most commonly traded E-Mini [futures contracts](../f/futures_contracts.md) include: +Several types of E-Mini [futures contracts](../f/futures_contracts.md) are available for trading, each correlated to a specific [index](../i/index_instrument.md). The most commonly traded E-Mini [futures contracts](../f/futures_contracts.md) include: -- **E-Mini S&P 500 (ES)**: The most popular E-Mini contract, based on the S&P 500 [index](../i/index.md), which represents 500 of the largest publicly traded companies in the United States. +- **E-Mini S&P 500 (ES)**: The most popular E-Mini contract, based on the S&P 500 [index](../i/index_instrument.md), which represents 500 of the largest publicly traded companies in the United States. - **E-Mini [NASDAQ](../n/nasdaq.md) 100 (NQ)**: This contract is based on the [NASDAQ 100 index](../n/nasdaq_100_index.md), which includes 100 of the largest non-financial companies [listed](../l/listed.md) on the [NASDAQ](../n/nasdaq.md) stock [exchange](../e/exchange.md). - **E-Mini Dow (YM)**: Based on the Dow Jones Industrial Average (DJIA), this contract represents 30 of the largest and most significant U.S. companies. - **E-Mini Russell 2000 (RTY)**: This contract is based on the [Russell 2000 index](../r/russell_2000_index.md), which represents 2000 small-cap [stocks](../s/stock.md) in the U.S. [equity market](../e/equity_market.md). diff --git a/en/pedia/e/eafe_index.md b/en/pedia/e/eafe_index.md index 209868d9..7f18db12 100644 --- a/en/pedia/e/eafe_index.md +++ b/en/pedia/e/eafe_index.md @@ -1,71 +1,71 @@ # EAFE Index -The EAFE [Index](../i/index.md), or the MSCI EAFE [Index](../i/index.md), stands for the Morgan Stanley [Capital](../c/capital.md) International (MSCI) Europe, Australasia, and Far East [Index](../i/index.md). It is a stock [market index](../m/market_index.md) that is designed to measure the [equity market](../e/equity_market.md) performance of developed markets outside the U.S. and Canada. The EAFE [Index](../i/index.md) has been a key [benchmark](../b/benchmark.md) for international [equity](../e/equity.md) funds since its inception in 1969 by the financial services company MSCI Inc. +The EAFE [Index](../i/index_instrument.md), or the MSCI EAFE [Index](../i/index_instrument.md), stands for the Morgan Stanley [Capital](../c/capital.md) International (MSCI) Europe, Australasia, and Far East [Index](../i/index_instrument.md). It is a stock [market index](../m/market_index.md) that is designed to measure the [equity market](../e/equity_market.md) performance of developed markets outside the U.S. and Canada. The EAFE [Index](../i/index_instrument.md) has been a key [benchmark](../b/benchmark.md) for international [equity](../e/equity.md) funds since its inception in 1969 by the financial services company MSCI Inc. ## Components and Structure ### Regional Segmentation -The MSCI EAFE [Index](../i/index.md) encompasses three main geographical areas: Europe, Australasia, and the Far East. Each region contributes a varying percentage of the total [index](../i/index.md) [value](../v/value.md): +The MSCI EAFE [Index](../i/index_instrument.md) encompasses three main geographical areas: Europe, Australasia, and the Far East. Each region contributes a varying percentage of the total [index](../i/index_instrument.md) [value](../v/value.md): - **Europe**: The majority of countries included are from Europe. This includes major economies like the United Kingdom, Germany, France, and the Netherlands. - **Australasia**: Includes Australia and New Zealand, representing the developed markets in the southern hemisphere. - **Far East**: Encompasses key nations such as Japan and Hong Kong, which are prominent financial hubs in Asia. ### Sector Allocation -The MSCI EAFE [Index](../i/index.md) covers [multiple](../m/multiple.md) sectors including but not limited to financials, information technology, health care, consumer discretionary, and industrials. The sector allocation aims to diversify the [index](../i/index.md) and represent the broader [market](../m/market.md) trends in each of the included countries. +The MSCI EAFE [Index](../i/index_instrument.md) covers [multiple](../m/multiple.md) sectors including but not limited to financials, information technology, health care, consumer discretionary, and industrials. The sector allocation aims to diversify the [index](../i/index_instrument.md) and represent the broader [market](../m/market.md) trends in each of the included countries. ## Importance of the EAFE Index ### Benchmarking for International Funds -The EAFE [Index](../i/index.md) is commonly used as a [benchmark](../b/benchmark.md) for international [equity](../e/equity.md) funds. Investment managers and institutional investors refer to it to gauge their performance relative to the broader international [market](../m/market.md). +The EAFE [Index](../i/index_instrument.md) is commonly used as a [benchmark](../b/benchmark.md) for international [equity](../e/equity.md) funds. Investment managers and institutional investors refer to it to gauge their performance relative to the broader international [market](../m/market.md). ### Risk Diversification -For U.S.-centric portfolios, the EAFE [Index](../i/index.md) offers exposure to international markets, thereby providing an essential [diversification](../d/diversification.md) benefit. This [diversification](../d/diversification.md) can help mitigate risks associated with country-specific economic downturns and geopolitical issues. +For U.S.-centric portfolios, the EAFE [Index](../i/index_instrument.md) offers exposure to international markets, thereby providing an essential [diversification](../d/diversification.md) benefit. This [diversification](../d/diversification.md) can help mitigate risks associated with country-specific economic downturns and geopolitical issues. ### Strategic Asset Allocation -The EAFE [Index](../i/index.md) assists in strategic [asset allocation](../a/asset_allocation.md) decisions. Investors utilize the [index](../i/index.md) to achieve a balanced investment approach by including international equities, which can lead to better [risk](../r/risk.md)-adjusted returns over the long term. +The EAFE [Index](../i/index_instrument.md) assists in strategic [asset allocation](../a/asset_allocation.md) decisions. Investors utilize the [index](../i/index_instrument.md) to achieve a balanced investment approach by including international equities, which can lead to better [risk](../r/risk.md)-adjusted returns over the long term. ## Methodology ### Market Capitalization -The EAFE [Index](../i/index.md) is [weighted](../w/weighted.md) by [market capitalization](../m/market_capitalization.md), reflecting the total [market value](../m/market_value.md) of the companies included within the [index](../i/index.md). This means that larger companies have a more significant impact on the [index](../i/index.md) movements. +The EAFE [Index](../i/index_instrument.md) is [weighted](../w/weighted.md) by [market capitalization](../m/market_capitalization.md), reflecting the total [market value](../m/market_value.md) of the companies included within the [index](../i/index_instrument.md). This means that larger companies have a more significant impact on the [index](../i/index_instrument.md) movements. ### Free Float Adjustment MSCI uses a free [float-adjusted market capitalization](../f/float-adjusted_market_capitalization.md) methodology. The free [float](../f/float.md) adjustment accounts for only the [shares](../s/shares.md) that are available for public trading, excluding strategic [shares](../s/shares.md) held by insiders or governments. ### Rebalancing -The [index](../i/index.md) is reviewed quarterly in February, May, August, and November. During these reviews, MSCI may adjust the weightings of existing components or include/exclude certain [stocks](../s/stock.md) to ensure the [index](../i/index.md) accurately reflects the international [equity market](../e/equity_market.md). +The [index](../i/index_instrument.md) is reviewed quarterly in February, May, August, and November. During these reviews, MSCI may adjust the weightings of existing components or include/exclude certain [stocks](../s/stock.md) to ensure the [index](../i/index_instrument.md) accurately reflects the international [equity market](../e/equity_market.md). ## Investment Products ### Exchange-Traded Funds (ETFs) -Several ETFs track the EAFE [Index](../i/index.md), providing an accessible option for investors to [gain](../g/gain.md) exposure to international developed markets. Prominent examples include: -- **[iShares](../i/ishares.md) MSCI EAFE ETF (EFA)**: This is one of the largest and most popular ETFs tracking the EAFE [Index](../i/index.md). [iShares MSCI EAFE ETF](https://www.ishares.com/us/products/239623/) -- **SPDR MSCI EAFE StrategicFactors ETF (QEFA)**: Combining the EAFE [Index](../i/index.md) with [factor](../f/factor.md)-based investment strategies. [SPDR MSCI EAFE StrategicFactors ETF](https://www.ssga.com/us/en/individual/etfs/funds/spdr-msci-eafe-strategicfactors-etf-qefa) +Several ETFs track the EAFE [Index](../i/index_instrument.md), providing an accessible option for investors to [gain](../g/gain.md) exposure to international developed markets. Prominent examples include: +- **[iShares](../i/ishares.md) MSCI EAFE ETF (EFA)**: This is one of the largest and most popular ETFs tracking the EAFE [Index](../i/index_instrument.md). [iShares MSCI EAFE ETF](https://www.ishares.com/us/products/239623/) +- **SPDR MSCI EAFE StrategicFactors ETF (QEFA)**: Combining the EAFE [Index](../i/index_instrument.md) with [factor](../f/factor.md)-based investment strategies. [SPDR MSCI EAFE StrategicFactors ETF](https://www.ssga.com/us/en/individual/etfs/funds/spdr-msci-eafe-strategicfactors-etf-qefa) ### Mutual Funds -Various mutual funds are benchmarked against the EAFE [Index](../i/index.md). These funds charge management fees but are governed by professional portfolio managers who actively select [stocks](../s/stock.md) to beat the [index](../i/index.md) performance. +Various mutual funds are benchmarked against the EAFE [Index](../i/index_instrument.md). These funds charge management fees but are governed by professional portfolio managers who actively select [stocks](../s/stock.md) to beat the [index](../i/index_instrument.md) performance. ## Performance Analysis ### Historical Performance -Analyzing the EAFE [Index](../i/index.md)'s historical performance indicates how developed international markets have evolved over time. The performance is influenced by various factors, including global [economic conditions](../e/economic_conditions.md), fiscal policies, and geopolitical events. +Analyzing the EAFE [Index](../i/index_instrument.md)'s historical performance indicates how developed international markets have evolved over time. The performance is influenced by various factors, including global [economic conditions](../e/economic_conditions.md), fiscal policies, and geopolitical events. ### Comparative Analysis -Comparing the EAFE [Index](../i/index.md) with other significant indices, such as the S&P 500 or the MSCI Emerging Markets [Index](../i/index.md), helps investors understand the relative performance of different [market](../m/market.md) segments and adjust their portfolios accordingly. +Comparing the EAFE [Index](../i/index_instrument.md) with other significant indices, such as the S&P 500 or the MSCI Emerging Markets [Index](../i/index_instrument.md), helps investors understand the relative performance of different [market](../m/market.md) segments and adjust their portfolios accordingly. ## Risks and Considerations ### Currency Risk -As the EAFE [Index](../i/index.md) includes [stocks](../s/stock.md) from [multiple](../m/multiple.md) countries, [currency](../c/currency.md) fluctuations can impact returns. Investors are exposed to [currency](../c/currency.md) [risk](../r/risk.md), which is the [risk](../r/risk.md) of losing [value](../v/value.md) due to changes in [currency exchange](../c/currency_exchange.md) rates. +As the EAFE [Index](../i/index_instrument.md) includes [stocks](../s/stock.md) from [multiple](../m/multiple.md) countries, [currency](../c/currency.md) fluctuations can impact returns. Investors are exposed to [currency](../c/currency.md) [risk](../r/risk.md), which is the [risk](../r/risk.md) of losing [value](../v/value.md) due to changes in [currency exchange](../c/currency_exchange.md) rates. ### Market Risk -Economic or political instability in any of the EAFE [Index](../i/index.md) countries can lead to [market risk](../m/market_risk.md). For instance, [Brexit](../b/brexit.md) significantly impacted the European segment of the [index](../i/index.md), causing fluctuations based on [investor](../i/investor.md) sentiment and economic consequences. +Economic or political instability in any of the EAFE [Index](../i/index_instrument.md) countries can lead to [market risk](../m/market_risk.md). For instance, [Brexit](../b/brexit.md) significantly impacted the European segment of the [index](../i/index_instrument.md), causing fluctuations based on [investor](../i/investor.md) sentiment and economic consequences. ### Regulatory Differences -Different regulatory environments across the included countries may result in varied levels of [transparency](../t/transparency.md) and governance. Investors must consider these regulatory differences when using the EAFE [Index](../i/index.md) as part of their [investment strategy](../i/investment_strategy.md). +Different regulatory environments across the included countries may result in varied levels of [transparency](../t/transparency.md) and governance. Investors must consider these regulatory differences when using the EAFE [Index](../i/index_instrument.md) as part of their [investment strategy](../i/investment_strategy.md). ## Conclusion -The MSCI EAFE [Index](../i/index.md) plays a pivotal role in global [finance](../f/finance.md) by [offering](../o/offering.md) a comprehensive snapshot of the performance of developed international [equity](../e/equity.md) markets. It serves as a vital tool for benchmarking, [diversification](../d/diversification.md), and strategic [asset allocation](../a/asset_allocation.md), enabling investors to enhance their portfolios with international exposure. Despite the associated risks, such as [currency](../c/currency.md) fluctuations and [market](../m/market.md) instability, the EAFE [Index](../i/index.md) remains a cornerstone in the world of [international investing](../i/international_investing.md). +The MSCI EAFE [Index](../i/index_instrument.md) plays a pivotal role in global [finance](../f/finance.md) by [offering](../o/offering.md) a comprehensive snapshot of the performance of developed international [equity](../e/equity.md) markets. It serves as a vital tool for benchmarking, [diversification](../d/diversification.md), and strategic [asset allocation](../a/asset_allocation.md), enabling investors to enhance their portfolios with international exposure. Despite the associated risks, such as [currency](../c/currency.md) fluctuations and [market](../m/market.md) instability, the EAFE [Index](../i/index_instrument.md) remains a cornerstone in the world of [international investing](../i/international_investing.md). -Understanding its components, methodology, and applications allows investors to make informed decisions, leveraging the [index](../i/index.md) to achieve higher [risk](../r/risk.md)-adjusted returns and diversify their investment portfolios across developed markets outside North America. \ No newline at end of file +Understanding its components, methodology, and applications allows investors to make informed decisions, leveraging the [index](../i/index_instrument.md) to achieve higher [risk](../r/risk.md)-adjusted returns and diversify their investment portfolios across developed markets outside North America. \ No newline at end of file diff --git a/en/pedia/e/economic_calendar.md b/en/pedia/e/economic_calendar.md index 666021f7..60b79376 100644 --- a/en/pedia/e/economic_calendar.md +++ b/en/pedia/e/economic_calendar.md @@ -76,7 +76,7 @@ Employment data, such as the U.S. Non-Farm Payrolls report, gives an overview of ### Inflation Data -[Inflation](../i/inflation.md) indicators like the Consumer Price [Index](../i/index.md) (CPI) and Producer Price [Index](../i/index.md) (PPI) show the rate at which prices for goods and services are rising. High [inflation](../i/inflation.md) can lead to higher [interest](../i/interest.md) rates, affecting everything from [bond](../b/bond.md) prices to stock valuations. +[Inflation](../i/inflation.md) indicators like the Consumer Price [Index](../i/index_instrument.md) (CPI) and Producer Price [Index](../i/index_instrument.md) (PPI) show the rate at which prices for goods and services are rising. High [inflation](../i/inflation.md) can lead to higher [interest](../i/interest.md) rates, affecting everything from [bond](../b/bond.md) prices to stock valuations. ### Central Bank Meetings diff --git a/en/pedia/e/economic_conditions.md b/en/pedia/e/economic_conditions.md index 8c2a46b8..fc618ec8 100644 --- a/en/pedia/e/economic_conditions.md +++ b/en/pedia/e/economic_conditions.md @@ -21,7 +21,7 @@ In this detailed exploration of economic conditions, we [will](../w/will.md) cov [Lagging indicators](../l/lagging_indicators.md) are metrics that change only after the [economy](../e/economy.md) has begun to follow a particular pattern or [trend](../t/trend.md). These include: 1. **[Unemployment Rate](../u/unemployment_rate.md)**: Changes in employment levels tend only to become apparent after the [economy](../e/economy.md) has shifted. -2. **Consumer Price [Index](../i/index.md) (CPI)**: The CPI measures changes in the [price level](../p/price_level.md) of a basket of [consumer goods](../c/consumer_goods.md) and services and reflects [inflation](../i/inflation.md) trends after they have started. +2. **Consumer Price [Index](../i/index_instrument.md) (CPI)**: The CPI measures changes in the [price level](../p/price_level.md) of a basket of [consumer goods](../c/consumer_goods.md) and services and reflects [inflation](../i/inflation.md) trends after they have started. 3. **Gross Domestic Product (GDP)**: GDP measures the total [value](../v/value.md) of all goods and services produced and usually changes following alterations in the [economic growth rate](../e/economic_growth_rate.md). ### Coincident Indicators diff --git a/en/pedia/e/economic_cycle.md b/en/pedia/e/economic_cycle.md index b821a7f6..5a12a588 100644 --- a/en/pedia/e/economic_cycle.md +++ b/en/pedia/e/economic_cycle.md @@ -77,7 +77,7 @@ Various [economic indicators](../e/economic_indicators.md) are used to analyze a - **[Stock Market](../s/stock_market.md) Performance**: Often considered a predictor of future [economic conditions](../e/economic_conditions.md), as it reflects [investor](../i/investor.md) sentiment. - **[Manufacturing](../m/manufacturing.md) Orders**: An increase in new orders can indicate upcoming production growth. -- **Consumer Confidence [Index](../i/index.md)**: Measures the overall confidence of consumers regarding the [economy](../e/economy.md) and their financial situation. +- **Consumer Confidence [Index](../i/index_instrument.md)**: Measures the overall confidence of consumers regarding the [economy](../e/economy.md) and their financial situation. ### 2. Coincident Indicators diff --git a/en/pedia/e/economic_cycles.md b/en/pedia/e/economic_cycles.md index b15bed8c..760a0f58 100644 --- a/en/pedia/e/economic_cycles.md +++ b/en/pedia/e/economic_cycles.md @@ -26,7 +26,7 @@ Several key indicators are used to identify and analyze different phases of econ - **[Inflation](../i/inflation.md) Rate**: The rate at which the general level of prices for goods and services is rising. Moderate [inflation](../i/inflation.md) is typical during [expansion](../e/expansion.md) phases, while very high or negative [inflation](../i/inflation.md) ([deflation](../d/deflation.md)) can indicate severe economic issues. -- **Consumer Confidence [Index](../i/index.md)**: A measure of how optimistic consumers are about the [economy](../e/economy.md)'s future. High confidence levels usually precede higher spending and investment. +- **Consumer Confidence [Index](../i/index_instrument.md)**: A measure of how optimistic consumers are about the [economy](../e/economy.md)'s future. High confidence levels usually precede higher spending and investment. - **[Interest](../i/interest.md) Rates**: Controlled by a country’s central [bank](../b/bank.md), they influence [economic growth](../e/economic_growth.md). Lower rates typically boost borrowing and spending, while higher rates may cool off an overheating [economy](../e/economy.md). diff --git a/en/pedia/e/economic_data_analysis.md b/en/pedia/e/economic_data_analysis.md index d28c7e63..08c8ea06 100644 --- a/en/pedia/e/economic_data_analysis.md +++ b/en/pedia/e/economic_data_analysis.md @@ -52,7 +52,7 @@ Analyzing economic data requires [robust](../r/robust.md) statistical techniques ### 5. Real-Time Data and High-Frequency Trading (HFT) -The availability of real-time economic data has given rise to High-Frequency Trading (HFT), where algorithms execute numerous trades within milliseconds based on newly released data. Traders utilize economic releases, such as non-farm payrolls or consumer price [index](../i/index.md) (CPI) reports, to make split-second decisions. +The availability of real-time economic data has given rise to High-Frequency Trading (HFT), where algorithms execute numerous trades within milliseconds based on newly released data. Traders utilize economic releases, such as non-farm payrolls or consumer price [index](../i/index_instrument.md) (CPI) reports, to make split-second decisions. ### 6. Challenges in Economic Data Analysis diff --git a/en/pedia/e/economic_forecasting.md b/en/pedia/e/economic_forecasting.md index 3f01bd03..343e0ba0 100644 --- a/en/pedia/e/economic_forecasting.md +++ b/en/pedia/e/economic_forecasting.md @@ -12,7 +12,7 @@ One of the primary elements of economic [forecasting](../f/forecasting.md) is th - **[Inflation](../i/inflation.md) Rate:** Indicates the rate at which the general level of prices for goods and services is rising. - **[Unemployment Rate](../u/unemployment_rate.md):** The percentage of the labor force that is unemployed and actively seeking work. - **[Interest](../i/interest.md) Rates:** Central banks use these rates to control monetary [supply](../s/supply.md) and influence economic activity. -- **Consumer Confidence [Index](../i/index.md) (CCI):** Measures the degree of optimism that consumers feel about the overall [economy](../e/economy.md) and their financial situation. +- **Consumer Confidence [Index](../i/index_instrument.md) (CCI):** Measures the degree of optimism that consumers feel about the overall [economy](../e/economy.md) and their financial situation. - **[Retail Sales](../r/retail_sales.md) Data:** Provides insight into consumer spending patterns and overall economic activity. ### Economic Models diff --git a/en/pedia/e/economic_indicator.md b/en/pedia/e/economic_indicator.md index da380e97..c96b5493 100644 --- a/en/pedia/e/economic_indicator.md +++ b/en/pedia/e/economic_indicator.md @@ -11,7 +11,7 @@ An economic [indicator](../i/indicator.md) is a statistic about economic activit - **Building Permits:** An increase in the number of building permits issued is a sign of future construction growth, which in turn signals economic [expansion](../e/expansion.md). -- **Consumer Sentiment [Index](../i/index.md):** Measures the confidence of consumers in the economic situation of the country. An increase in consumer confidence typically indicates more spending and investment. +- **Consumer Sentiment [Index](../i/index_instrument.md):** Measures the confidence of consumers in the economic situation of the country. An increase in consumer confidence typically indicates more spending and investment. ### Lagging Indicators [Lagging indicators](../l/lagging_indicators.md), as the name suggests, follow an economic event. They typically become apparent only after an economic [trend](../t/trend.md) or pattern has already been established. These indicators confirm long-term trends: diff --git a/en/pedia/e/economic_indicators.md b/en/pedia/e/economic_indicators.md index 6ee98e2f..3095ae7d 100644 --- a/en/pedia/e/economic_indicators.md +++ b/en/pedia/e/economic_indicators.md @@ -8,13 +8,13 @@ Economic indicators are vital [statistics](../s/statistics.md) about economic ac [Stock market](../s/stock_market.md) returns are often considered a [leading indicator](../l/leading_indicator.md) because declines in stock prices suggest future economic downturns, while increases are associated with economic improvement. Investors react to economic data, company performance, and global events, making [stock market](../s/stock_market.md) performance a useful early gauge of economic direction. **2. [Manufacturing](../m/manufacturing.md) Activity** -The Purchasing Managers’ [Index](../i/index.md) (PMI) is a widely recognized [indicator](../i/indicator.md) that captures [manufacturing](../m/manufacturing.md) activity. An [index](../i/index.md) above 50 denotes [expansion](../e/expansion.md), while below 50 indicates contraction. [Manufacturing](../m/manufacturing.md) is a critical economic component, often linked closely to overall economic health. +The Purchasing Managers’ [Index](../i/index_instrument.md) (PMI) is a widely recognized [indicator](../i/indicator.md) that captures [manufacturing](../m/manufacturing.md) activity. An [index](../i/index_instrument.md) above 50 denotes [expansion](../e/expansion.md), while below 50 indicates contraction. [Manufacturing](../m/manufacturing.md) is a critical economic component, often linked closely to overall economic health. **3. Building Permits** Building permits data reflect future construction activity. A higher number of permits suggests growth in the housing [market](../m/market.md) and, consequently, economic [expansion](../e/expansion.md). Conversely, a drop could indicate an economic slowdown. -**4. Consumer Confidence [Index](../i/index.md)** -The Consumer Confidence [Index](../i/index.md) (CCI) measures the level of consumer confidence in economic activities. High confidence suggests that consumers [will](../w/will.md) spend more, boosting economic activities, while low confidence indicates reduced spending and potential economic slowdown. +**4. Consumer Confidence [Index](../i/index_instrument.md)** +The Consumer Confidence [Index](../i/index_instrument.md) (CCI) measures the level of consumer confidence in economic activities. High confidence suggests that consumers [will](../w/will.md) spend more, boosting economic activities, while low confidence indicates reduced spending and potential economic slowdown. ### Coincident Indicators @@ -32,7 +32,7 @@ Employment levels reflect the current state of the [labor market](../l/labor_mar **1. [Unemployment Rate](../u/unemployment_rate.md)** The [unemployment rate](../u/unemployment_rate.md) is often considered a [lagging indicator](../l/lagging_indicator.md) because it typically moves after the [economy](../e/economy.md) has already begun a [trend](../t/trend.md) of either improvement or decline. High [unemployment](../u/unemployment.md) rates usually persist even after [economic recovery](../e/economic_recovery.md) starts. -**2. Consumer Price [Index](../i/index.md) (CPI)** +**2. Consumer Price [Index](../i/index_instrument.md) (CPI)** The CPI measures changes in the [price level](../p/price_level.md) of a basket of [consumer goods](../c/consumer_goods.md) and services. It is used to assess [inflation](../i/inflation.md). [Inflation](../i/inflation.md) often lags other economic trends but is crucial for assessing economic health. **3. [Business](../b/business.md) Inventories** diff --git a/en/pedia/e/economic_policy_uncertainty.md b/en/pedia/e/economic_policy_uncertainty.md index d1459a62..902869b7 100644 --- a/en/pedia/e/economic_policy_uncertainty.md +++ b/en/pedia/e/economic_policy_uncertainty.md @@ -16,9 +16,9 @@ Economic Policy [Uncertainty](../u/uncertainty_in_trading.md) (EPU) represents t Economic Policy [Uncertainty](../u/uncertainty_in_trading.md) can be quantified using various indices and models. Some of the most prominent approaches include: -- **EPU [Index](../i/index.md)**: Developed by researchers from Stanford University, the University of Chicago, and Northwestern University, the EPU [Index](../i/index.md) uses newspaper coverage frequency to measure [uncertainty](../u/uncertainty_in_trading.md). It tracks the mentions of economic policy [uncertainty](../u/uncertainty_in_trading.md) in leading newspapers, providing a quantitative measure. [EPU Index](http://www.policyuncertainty.com/) +- **EPU [Index](../i/index_instrument.md)**: Developed by researchers from Stanford University, the University of Chicago, and Northwestern University, the EPU [Index](../i/index_instrument.md) uses newspaper coverage frequency to measure [uncertainty](../u/uncertainty_in_trading.md). It tracks the mentions of economic policy [uncertainty](../u/uncertainty_in_trading.md) in leading newspapers, providing a quantitative measure. [EPU Index](http://www.policyuncertainty.com/) -- **VIX ([Volatility](../v/volatility.md) [Index](../i/index.md))**: Often referred to as the "fear gauge," the VIX measures [market](../m/market.md) expectations of near-term [volatility](../v/volatility.md) based on S&P 500 [index options](../i/index_options.md). While not exclusively focused on policy [uncertainty](../u/uncertainty_in_trading.md), it reflects broader [market](../m/market.md) apprehensions, including those related to economic policies. [CBOE VIX](https://www.cboe.com/tradable_products/vix/) +- **VIX ([Volatility](../v/volatility.md) [Index](../i/index_instrument.md))**: Often referred to as the "fear gauge," the VIX measures [market](../m/market.md) expectations of near-term [volatility](../v/volatility.md) based on S&P 500 [index options](../i/index_options.md). While not exclusively focused on policy [uncertainty](../u/uncertainty_in_trading.md), it reflects broader [market](../m/market.md) apprehensions, including those related to economic policies. [CBOE VIX](https://www.cboe.com/tradable_products/vix/) ### Impact of Economic Policy Uncertainty on Financial Markets @@ -46,7 +46,7 @@ Economic Policy [Uncertainty](../u/uncertainty_in_trading.md) can be quantified Several companies and platforms [offer](../o/offer.md) tools and services to help investors and businesses manage EPU: -- **PolicyUncertainty.com**: This platform provides access to the EPU [Index](../i/index.md) and related research. It is an essential resource for economists and [market](../m/market.md) analysts looking to track policy [uncertainty](../u/uncertainty_in_trading.md) trends. [PolicyUncertainty](http://www.policyuncertainty.com/) +- **PolicyUncertainty.com**: This platform provides access to the EPU [Index](../i/index_instrument.md) and related research. It is an essential resource for economists and [market](../m/market.md) analysts looking to track policy [uncertainty](../u/uncertainty_in_trading.md) trends. [PolicyUncertainty](http://www.policyuncertainty.com/) - **BlackRock**: As one of the world's largest [asset management](../a/asset_management.md) firms, BlackRock incorporates EPU measures into its [risk](../r/risk.md) assessment and investment strategies. BlackRock's tools help investors navigate uncertain economic climates. [BlackRock](https://www.blackrock.com/) diff --git a/en/pedia/e/economic_recovery.md b/en/pedia/e/economic_recovery.md index f4db3bdd..47a5198e 100644 --- a/en/pedia/e/economic_recovery.md +++ b/en/pedia/e/economic_recovery.md @@ -26,7 +26,7 @@ Improved corporate [earnings](../e/earnings.md) indicate that businesses are rec ### 6. Industrial Production -An increase in industrial production reflects rising [demand](../d/demand.md) for goods and services. Tracking metrics like the Industrial Production [Index](../i/index.md) helps determine how well the [manufacturing](../m/manufacturing.md) and industrial sectors are recovering. +An increase in industrial production reflects rising [demand](../d/demand.md) for goods and services. Tracking metrics like the Industrial Production [Index](../i/index_instrument.md) helps determine how well the [manufacturing](../m/manufacturing.md) and industrial sectors are recovering. ### 7. Inflation Rates diff --git a/en/pedia/e/economy.md b/en/pedia/e/economy.md index b94594eb..4e3142a0 100644 --- a/en/pedia/e/economy.md +++ b/en/pedia/e/economy.md @@ -18,7 +18,7 @@ The **Economy** refers to the system by which goods and services are produced, d 1. **Gross Domestic Product (GDP)**: The total [value](../v/value.md) of all goods and services produced within a country over a specific period. It is a key [indicator](../i/indicator.md) of economic performance. 2. **[Inflation](../i/inflation.md)**: The rate at which the general level of prices for goods and services is rising, eroding [purchasing power](../p/purchasing_power.md). 3. **[Unemployment Rate](../u/unemployment_rate.md)**: The percentage of the labor force that is jobless and actively seeking employment. -4. **Consumer Price [Index](../i/index.md) (CPI)**: A measure that examines the average change over time in the prices paid by consumers for a [basket of goods](../b/basket_of_goods.md) and services. +4. **Consumer Price [Index](../i/index_instrument.md) (CPI)**: A measure that examines the average change over time in the prices paid by consumers for a [basket of goods](../b/basket_of_goods.md) and services. ## Economic Theories 1. **[Classical Economics](../c/classical_economics.md)**: Founded by Adam Smith, this theory emphasizes free markets, competition, and [limited government](../l/limited_government.md) intervention. diff --git a/en/pedia/e/efficient_market_hypothesis.md b/en/pedia/e/efficient_market_hypothesis.md index e1eb68df..ee77c310 100644 --- a/en/pedia/e/efficient_market_hypothesis.md +++ b/en/pedia/e/efficient_market_hypothesis.md @@ -16,7 +16,7 @@ EMH is generally categorized into three forms, each varying by the level of info - **Strong Form EMH:** The most stringent form, claiming that all information, public and private (insider information), is fully reflected in [asset](../a/asset.md) prices. According to this form, even insiders cannot achieve superior returns consistently. ## Implications for Trading Strategies -The implications of EMH for [trading strategies](../t/trading_strategies.md) are profound. If markets are truly efficient, actively managed funds are unlikely to consistently [outperform](../o/outperform.md) [passive investment strategies](../p/passive_investment_strategies.md). This leads many investors and [fund](../f/fund.md) managers to favor [index](../i/index.md) funds and other passive investment vehicles that aim to replicate [market](../m/market.md) performance at lower costs. +The implications of EMH for [trading strategies](../t/trading_strategies.md) are profound. If markets are truly efficient, actively managed funds are unlikely to consistently [outperform](../o/outperform.md) [passive investment strategies](../p/passive_investment_strategies.md). This leads many investors and [fund](../f/fund.md) managers to favor [index](../i/index_instrument.md) funds and other passive investment vehicles that aim to replicate [market](../m/market.md) performance at lower costs. ### Active vs. Passive Management - **[Active Management](../a/active_management.md):** Involves selecting [stocks](../s/stock.md) or other securities in an attempt to [outperform](../o/outperform.md) the [market](../m/market.md). Given EMH, the likelihood of consistently achieving substantial returns through [active management](../a/active_management.md) is low. diff --git a/en/pedia/e/efficient_market_hypothesis_(emh).md b/en/pedia/e/efficient_market_hypothesis_(emh).md index d9b1cd3a..4807c66d 100644 --- a/en/pedia/e/efficient_market_hypothesis_(emh).md +++ b/en/pedia/e/efficient_market_hypothesis_(emh).md @@ -39,7 +39,7 @@ Eugene Fama identified three forms of [market efficiency](../m/market_efficiency The implications of EMH for investment strategies are profound. If markets are truly efficient, then: - **[Active Management](../a/active_management.md)**: [Active management](../a/active_management.md), where [fund](../f/fund.md) managers attempt to [outperform](../o/outperform.md) the [market](../m/market.md) by picking winning [stocks](../s/stock.md), is largely ineffective since consistently picking [stocks](../s/stock.md) that [outperform](../o/outperform.md) the [market](../m/market.md) is impossible. -- **Passive Management**: Passive management, which involves [investing](../i/investing.md) in [index](../i/index.md) funds that replicate [market](../m/market.md) performance, becomes a more attractive option since it minimizes [transaction costs](../t/transaction_costs.md) and often performs better than actively managed funds over the long term. +- **Passive Management**: Passive management, which involves [investing](../i/investing.md) in [index](../i/index_instrument.md) funds that replicate [market](../m/market.md) performance, becomes a more attractive option since it minimizes [transaction costs](../t/transaction_costs.md) and often performs better than actively managed funds over the long term. ### Market Anomalies @@ -75,7 +75,7 @@ The advent of high-frequency trading (HFT) and [algorithmic trading](../a/accoun ### Index Fund Investment -The popularity of [index fund](../i/index_fund.md) [investing](../i/investing.md) can be attributed to the principles of EMH. Since EMH suggests that consistently outperforming the [market](../m/market.md) is unlikely, [investing](../i/investing.md) in a broad [market index](../m/market_index.md) [fund](../f/fund.md) is considered a prudent strategy. [Index](../i/index.md) funds aim to replicate the performance of a specific [market index](../m/market_index.md), providing [diversification](../d/diversification.md) and lower costs compared to actively managed funds. +The popularity of [index fund](../i/index_fund.md) [investing](../i/investing.md) can be attributed to the principles of EMH. Since EMH suggests that consistently outperforming the [market](../m/market.md) is unlikely, [investing](../i/investing.md) in a broad [market index](../m/market_index.md) [fund](../f/fund.md) is considered a prudent strategy. [Index](../i/index_instrument.md) funds aim to replicate the performance of a specific [market index](../m/market_index.md), providing [diversification](../d/diversification.md) and lower costs compared to actively managed funds. ### Quantitative Trading Strategies diff --git a/en/pedia/e/efficient_trading_strategies.md b/en/pedia/e/efficient_trading_strategies.md index 1ce89e15..4881c867 100644 --- a/en/pedia/e/efficient_trading_strategies.md +++ b/en/pedia/e/efficient_trading_strategies.md @@ -6,10 +6,10 @@ Efficient [trading strategies](../t/trading_strategies.md) are fundamental for t ### 1. **Momentum Trading** -[Momentum trading](../m/momentum_trading.md) is based on the premise that securities that have exhibited high returns in the past [will](../w/will.md) continue to do so in the future. Traders using this strategy [capitalize](../c/capitalize.md) on the [momentum](../m/momentum.md) of price movements. [Technical indicators](../t/technical_indicators.md) such as Moving Averages (MA) and [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) are commonly used to identify and confirm [momentum](../m/momentum.md) trends. +[Momentum trading](../m/momentum_trading.md) is based on the premise that securities that have exhibited high returns in the past [will](../w/will.md) continue to do so in the future. Traders using this strategy [capitalize](../c/capitalize.md) on the [momentum](../m/momentum.md) of price movements. [Technical indicators](../t/technical_indicators.md) such as Moving Averages (MA) and [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) are commonly used to identify and confirm [momentum](../m/momentum.md) trends. - **Moving Averages (MA):** MAs smooth out price data to create a single flowing line, making it easier to identify trends. The most common types are Simple Moving Averages (SMA) and Exponential Moving Averages (EMA). -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** RSI measures the speed and change of price movements. It oscillates between 0 and 100, typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** RSI measures the speed and change of price movements. It oscillates between 0 and 100, typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. ### 2. **Mean Reversion** diff --git a/en/pedia/e/egyptian_exchange_(egx).md b/en/pedia/e/egyptian_exchange_(egx).md index f2e5f001..344adf21 100644 --- a/en/pedia/e/egyptian_exchange_(egx).md +++ b/en/pedia/e/egyptian_exchange_(egx).md @@ -46,9 +46,9 @@ EGX offers a variety of financial instruments to cater to different investors: EGX features several indices to track [market](../m/market.md) performance: -- **EGX 30**: The [benchmark](../b/benchmark.md) [index](../i/index.md), representing the top 30 companies by [market capitalization](../m/market_capitalization.md) and [liquidity](../l/liquidity.md). +- **EGX 30**: The [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), representing the top 30 companies by [market capitalization](../m/market_capitalization.md) and [liquidity](../l/liquidity.md). - **EGX 70**: Tracks the performance of 70 medium and small-cap companies. -- **EGX 100**: A broader [index](../i/index.md) combining the EGX 30 and EGX 70. +- **EGX 100**: A broader [index](../i/index_instrument.md) combining the EGX 30 and EGX 70. ## Key Participants diff --git a/en/pedia/e/electronic_data_gathering_analysis_retrieval_(edgar).md b/en/pedia/e/electronic_data_gathering_analysis_retrieval_(edgar).md index 44b25214..1f34a14c 100644 --- a/en/pedia/e/electronic_data_gathering_analysis_retrieval_(edgar).md +++ b/en/pedia/e/electronic_data_gathering_analysis_retrieval_(edgar).md @@ -58,7 +58,7 @@ EDGAR can be accessed via the SEC's official website at [https://www.sec.gov/edg ### Search Features -1. **Company Search**: Allows users to search for filings by company name or Central [Index](../i/index.md) Key (CIK). +1. **Company Search**: Allows users to search for filings by company name or Central [Index](../i/index_instrument.md) Key (CIK). 2. **Latest Filings**: Provides a chronological list of the most recent filings. 3. **Full-Text Search**: Enables users to search the content of filings for specific terms. 4. **Historical Archives**: Users can access filings dating back several decades. diff --git a/en/pedia/e/emerging_markets_bond_index_(embi).md b/en/pedia/e/emerging_markets_bond_index_(embi).md index e21fac3e..b486568f 100644 --- a/en/pedia/e/emerging_markets_bond_index_(embi).md +++ b/en/pedia/e/emerging_markets_bond_index_(embi).md @@ -1,6 +1,6 @@ # Emerging Markets Bond Index (EMBI) -The Emerging Markets [Bond](../b/bond.md) [Index](../i/index.md) (EMBI) is a [benchmark](../b/benchmark.md) [index](../i/index.md) that measures the [total return](../t/total_return.md) performance of international government bonds issued by emerging [market](../m/market.md) countries, often denominated in hard currencies such as the US dollar, [euro](../e/euro.md), and yen. It is developed and maintained by J.P. Morgan, a global leader in financial services. +The Emerging Markets [Bond](../b/bond.md) [Index](../i/index_instrument.md) (EMBI) is a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) that measures the [total return](../t/total_return.md) performance of international government bonds issued by emerging [market](../m/market.md) countries, often denominated in hard currencies such as the US dollar, [euro](../e/euro.md), and yen. It is developed and maintained by J.P. Morgan, a global leader in financial services. ## Overview @@ -14,11 +14,11 @@ The EMBI includes various types of [debt](../d/debt.md) securities, predominantl ### Currency -The EMBI mainly tracks bonds issued in hard currencies such as the US dollar. This focus on hard currencies helps mitigate [foreign exchange risk](../f/foreign_exchange_risk.md) for investors, making the [index](../i/index.md) an appealing choice for those looking to invest in emerging markets without the added complexity of dealing with [multiple](../m/multiple.md), often volatile, emerging [market](../m/market.md) currencies. +The EMBI mainly tracks bonds issued in hard currencies such as the US dollar. This focus on hard currencies helps mitigate [foreign exchange risk](../f/foreign_exchange_risk.md) for investors, making the [index](../i/index_instrument.md) an appealing choice for those looking to invest in emerging markets without the added complexity of dealing with [multiple](../m/multiple.md), often volatile, emerging [market](../m/market.md) currencies. ### Duration and Yield -The [duration](../d/duration.md) of the bonds in the EMBI can vary widely, but the [index](../i/index.md) typically includes a mix of short-term, medium-term, and [long-term debt](../l/long-term_debt.md) instruments. The [yield](../y/yield.md) on these bonds is influenced by factors such as [credit risk](../c/credit_risk.md), [interest rate](../i/interest_rate.md) environment, and overall [economic conditions](../e/economic_conditions.md) in the issuing countries. +The [duration](../d/duration.md) of the bonds in the EMBI can vary widely, but the [index](../i/index_instrument.md) typically includes a mix of short-term, medium-term, and [long-term debt](../l/long-term_debt.md) instruments. The [yield](../y/yield.md) on these bonds is influenced by factors such as [credit risk](../c/credit_risk.md), [interest rate](../i/interest_rate.md) environment, and overall [economic conditions](../e/economic_conditions.md) in the issuing countries. ## Variants @@ -28,9 +28,9 @@ There are several variants of the EMBI to cater to different investment needs an 2. **EMBI+ (Plus)**: Focuses on a select group of more [liquid](../l/liquid.md) and creditworthy emerging [market](../m/market.md) bonds. It offers a more conservative investment option within the space. -3. **GBI-EM ([Government Bond](../g/government_bond.md) [Index](../i/index.md) - Emerging Markets)**: Tracks local [currency](../c/currency.md) bonds of emerging [market](../m/market.md) governments, [offering](../o/offering.md) exposure to local [interest](../i/interest.md) rates and [currency](../c/currency.md) movements. +3. **GBI-EM ([Government Bond](../g/government_bond.md) [Index](../i/index_instrument.md) - Emerging Markets)**: Tracks local [currency](../c/currency.md) bonds of emerging [market](../m/market.md) governments, [offering](../o/offering.md) exposure to local [interest](../i/interest.md) rates and [currency](../c/currency.md) movements. -4. **CEMBI (Corporate Emerging Markets [Bond](../b/bond.md) [Index](../i/index.md))**: Tracks corporate bonds issued in emerging markets, allowing for an assessment of the corporate [debt](../d/debt.md) landscape in these regions. +4. **CEMBI (Corporate Emerging Markets [Bond](../b/bond.md) [Index](../i/index_instrument.md))**: Tracks corporate bonds issued in emerging markets, allowing for an assessment of the corporate [debt](../d/debt.md) landscape in these regions. ## Methodology @@ -44,7 +44,7 @@ J.P. Morgan applies several criteria to select the bonds included in the EMBI. T ### Weighting -The bonds in the EMBI are [weighted](../w/weighted.md) by [market capitalization](../m/market_capitalization.md), meaning that larger issues have a greater influence on the [index](../i/index.md)’s performance. This approach helps to reflect the actual investment opportunities available in the [market](../m/market.md). +The bonds in the EMBI are [weighted](../w/weighted.md) by [market capitalization](../m/market_capitalization.md), meaning that larger issues have a greater influence on the [index](../i/index_instrument.md)’s performance. This approach helps to reflect the actual investment opportunities available in the [market](../m/market.md). ## Benefits and Risks @@ -64,7 +64,7 @@ The bonds in the EMBI are [weighted](../w/weighted.md) by [market capitalization ### Institutional Investors -Large financial institutions such as pension funds, [insurance](../i/insurance.md) companies, and mutual funds use the EMBI as a [benchmark](../b/benchmark.md) to measure the performance of their emerging [market](../m/market.md) [debt](../d/debt.md) investments. These entities appreciate the [index](../i/index.md)'s comprehensive coverage and reliability. +Large financial institutions such as pension funds, [insurance](../i/insurance.md) companies, and mutual funds use the EMBI as a [benchmark](../b/benchmark.md) to measure the performance of their emerging [market](../m/market.md) [debt](../d/debt.md) investments. These entities appreciate the [index](../i/index_instrument.md)'s comprehensive coverage and reliability. ### Fund Managers @@ -76,12 +76,12 @@ Economic analysts and researchers use the EMBI to assess the health of emerging ## Companies and Resources -- [J.P. Morgan](https://www.jpmorgan.com/solutions/cib/markets/index-research/emerging-markets/embi): The primary provider of the EMBI, [offering](../o/offering.md) detailed information, research reports, and historical data on the [index](../i/index.md). +- [J.P. Morgan](https://www.jpmorgan.com/solutions/cib/markets/index-research/emerging-markets/embi): The primary provider of the EMBI, [offering](../o/offering.md) detailed information, research reports, and historical data on the [index](../i/index_instrument.md). - [BlackRock](https://www.blackrock.com): Offers [multiple](../m/multiple.md) funds and ETFs that track the performance of the EMBI. - [iShares](https://www.ishares.com): A prominent ETF provider under BlackRock, with specific funds dedicated to the EMBI. ## Conclusion -The Emerging Markets [Bond](../b/bond.md) [Index](../i/index.md) (EMBI) is an essential tool for investors seeking to [gain](../g/gain.md) exposure to emerging [market](../m/market.md) [debt](../d/debt.md). Managed by J.P. Morgan, it offers a comprehensive measure of the performance of sovereign and corporate bonds from a wide array of developing nations. Its variants cater to different [investor](../i/investor.md) needs, providing both broad and focused views of the emerging [market](../m/market.md) [debt](../d/debt.md) landscape. +The Emerging Markets [Bond](../b/bond.md) [Index](../i/index_instrument.md) (EMBI) is an essential tool for investors seeking to [gain](../g/gain.md) exposure to emerging [market](../m/market.md) [debt](../d/debt.md). Managed by J.P. Morgan, it offers a comprehensive measure of the performance of sovereign and corporate bonds from a wide array of developing nations. Its variants cater to different [investor](../i/investor.md) needs, providing both broad and focused views of the emerging [market](../m/market.md) [debt](../d/debt.md) landscape. With its mix of higher yields and [diversification benefits](../d/diversification_benefits.md), along with the intrinsic risks associated with emerging markets, the EMBI continues to be a crucial [benchmark](../b/benchmark.md) in global [fixed income](../f/fixed_income.md) [investing](../i/investing.md). Whether used by institutional investors, [fund](../f/fund.md) managers, or economic analysts, the EMBI provides valuable insights and actionable data for understanding and navigating the complexities of emerging [market](../m/market.md) [debt](../d/debt.md). \ No newline at end of file diff --git a/en/pedia/e/emerging_markets_index_(msci).md b/en/pedia/e/emerging_markets_index_(msci).md index dd949732..7e76b666 100644 --- a/en/pedia/e/emerging_markets_index_(msci).md +++ b/en/pedia/e/emerging_markets_index_(msci).md @@ -1,10 +1,10 @@ # Emerging Markets Index (MSCI) ## Introduction -The MSCI Emerging Markets [Index](../i/index.md) is one of the most well-regarded and widely used [equity](../e/equity.md) indices worldwide. It is designed by MSCI Inc., a leading provider of critical decision support tools and services for the global investment community. The [index](../i/index.md) measures the [equity market](../e/equity_market.md) performance in global emerging markets, [offering](../o/offering.md) investors insights into dynamic and growing economies that often present significant growth opportunities despite their higher [risk profiles](../r/risk_profiles.md). +The MSCI Emerging Markets [Index](../i/index_instrument.md) is one of the most well-regarded and widely used [equity](../e/equity.md) indices worldwide. It is designed by MSCI Inc., a leading provider of critical decision support tools and services for the global investment community. The [index](../i/index_instrument.md) measures the [equity market](../e/equity_market.md) performance in global emerging markets, [offering](../o/offering.md) investors insights into dynamic and growing economies that often present significant growth opportunities despite their higher [risk profiles](../r/risk_profiles.md). ## Overview of the MSCI Emerging Markets Index -The MSCI Emerging Markets [Index](../i/index.md) encompasses large and [mid-cap](../m/mid-cap.md) companies across 24 emerging [market](../m/market.md) countries, covering various sectors. As of 2023, these countries include Brazil, China, India, Russia, South Africa, and South Korea, among others. The [index](../i/index.md) captures approximately 85% of the free [float-adjusted market capitalization](../f/float-adjusted_market_capitalization.md) in each country, aiming to provide a holistic representation of the emerging markets landscape. +The MSCI Emerging Markets [Index](../i/index_instrument.md) encompasses large and [mid-cap](../m/mid-cap.md) companies across 24 emerging [market](../m/market.md) countries, covering various sectors. As of 2023, these countries include Brazil, China, India, Russia, South Africa, and South Korea, among others. The [index](../i/index_instrument.md) captures approximately 85% of the free [float-adjusted market capitalization](../f/float-adjusted_market_capitalization.md) in each country, aiming to provide a holistic representation of the emerging markets landscape. The emerging markets are typically characterized by: @@ -13,39 +13,39 @@ The emerging markets are typically characterized by: 3. **[Diversification](../d/diversification.md) Opportunities**: [Investing](../i/investing.md) in emerging markets allows for [geographical diversification](../g/geographical_diversification.md), potentially reducing overall portfolio [risk](../r/risk.md). ## Historical Performance and Composition -The MSCI Emerging Markets [Index](../i/index.md) has seen significant changes since its inception in 1988. It initially included 10 countries, but has expanded to cover 24 nations as of 2023. The [index](../i/index.md)'s performance can be more volatile compared to developed [market](../m/market.md) indices, such as the MSCI World [Index](../i/index.md) or the S&P 500, due to the inherent risks in emerging markets - including political instability, [exchange rate](../e/exchange_rate.md) fluctuations, and varying levels of economic development. +The MSCI Emerging Markets [Index](../i/index_instrument.md) has seen significant changes since its inception in 1988. It initially included 10 countries, but has expanded to cover 24 nations as of 2023. The [index](../i/index_instrument.md)'s performance can be more volatile compared to developed [market](../m/market.md) indices, such as the MSCI World [Index](../i/index_instrument.md) or the S&P 500, due to the inherent risks in emerging markets - including political instability, [exchange rate](../e/exchange_rate.md) fluctuations, and varying levels of economic development. ### Major Constituents -As of 2023, some of the largest constituents in the MSCI Emerging Markets [Index](../i/index.md) by [market capitalization](../m/market_capitalization.md) include: +As of 2023, some of the largest constituents in the MSCI Emerging Markets [Index](../i/index_instrument.md) by [market capitalization](../m/market_capitalization.md) include: - **Alibaba Group Holding Ltd (China)**: A major player in e-[commerce](../c/commerce.md), retail, internet, and technology. - **Tencent [Holdings](../h/holdings.md) Ltd (China)**: A [conglomerate](../c/conglomerate.md) with interests in social networks, music, web portals, e-[commerce](../c/commerce.md), mobile games, internet services, [payment](../p/payment.md) systems, smartphones, and multinational corporations. - **Samsung Electronics (South Korea)**: A global leader in technology, particularly renowned for its innovations in electronics, semiconductors, and telecommunications. -These companies represent a significant portion of the [index](../i/index.md), emphasizing the [index](../i/index.md)'s heavy exposure to the technological sector, which is a critical growth driver in emerging markets. +These companies represent a significant portion of the [index](../i/index_instrument.md), emphasizing the [index](../i/index_instrument.md)'s heavy exposure to the technological sector, which is a critical growth driver in emerging markets. ## Methodology -The construction and maintenance of the MSCI Emerging Markets [Index](../i/index.md) follow a transparent and systematic methodology. Key elements include: +The construction and maintenance of the MSCI Emerging Markets [Index](../i/index_instrument.md) follow a transparent and systematic methodology. Key elements include: 1. **[Market Capitalization](../m/market_capitalization.md)**: Only securities with adequate [market capitalization](../m/market_capitalization.md) are included, ensuring [liquidity](../l/liquidity.md) and investability. -2. **Free [Float](../f/float.md) Adjustment**: The [index](../i/index.md) uses free-[float](../f/float.md) [market capitalization](../m/market_capitalization.md), [accounting](../a/accounting.md) for only those [shares](../s/shares.md) that are available for trading, disregarding strategic [holdings](../h/holdings.md) and government ownership. -3. **Sector Representation**: The [index](../i/index.md) seeks to represent all sectors of the [economy](../e/economy.md), following the Global [Industry](../i/industry.md) Classification Standard (GICS). -4. **Regular Reviews and [Rebalancing](../r/rebalancing.md)**: Quarterly and semi-annual reviews ensure the [index](../i/index.md) reflects current [market](../m/market.md) conditions and adjusts for new [market](../m/market.md) entrants or delistings. +2. **Free [Float](../f/float.md) Adjustment**: The [index](../i/index_instrument.md) uses free-[float](../f/float.md) [market capitalization](../m/market_capitalization.md), [accounting](../a/accounting.md) for only those [shares](../s/shares.md) that are available for trading, disregarding strategic [holdings](../h/holdings.md) and government ownership. +3. **Sector Representation**: The [index](../i/index_instrument.md) seeks to represent all sectors of the [economy](../e/economy.md), following the Global [Industry](../i/industry.md) Classification Standard (GICS). +4. **Regular Reviews and [Rebalancing](../r/rebalancing.md)**: Quarterly and semi-annual reviews ensure the [index](../i/index_instrument.md) reflects current [market](../m/market.md) conditions and adjusts for new [market](../m/market.md) entrants or delistings. ## Investment Vehicles -Investors can [gain](../g/gain.md) exposure to the MSCI Emerging Markets [Index](../i/index.md) through various investment vehicles, including mutual funds, [exchange](../e/exchange.md)-traded funds (ETFs), and [index futures](../i/index_futures.md). Some of the most popular ETFs tracking the MSCI Emerging Markets [Index](../i/index.md) are: +Investors can [gain](../g/gain.md) exposure to the MSCI Emerging Markets [Index](../i/index_instrument.md) through various investment vehicles, including mutual funds, [exchange](../e/exchange.md)-traded funds (ETFs), and [index futures](../i/index_futures.md). Some of the most popular ETFs tracking the MSCI Emerging Markets [Index](../i/index_instrument.md) are: - **[iShares](../i/ishares.md) MSCI Emerging Markets ETF (EEM)**: Managed by BlackRock, it is one of the largest and most [liquid](../l/liquid.md) ETFs [offering](../o/offering.md) exposure to emerging markets. -- **Vanguard FTSE Emerging Markets ETF (VWO)**: This ETF tracks the FTSE Emerging [Index](../i/index.md) but offers a similar [risk](../r/risk.md) and [return](../r/return.md) profile, focusing on broad exposure to emerging [market](../m/market.md) equities. -- **SPDR MSCI Emerging Markets [Fund](../f/fund.md) (EEMG)**: Managed by State Street Global Advisors, this ETF aims to closely replicate the MSCI Emerging Markets [Index](../i/index.md)'s performance. +- **Vanguard FTSE Emerging Markets ETF (VWO)**: This ETF tracks the FTSE Emerging [Index](../i/index_instrument.md) but offers a similar [risk](../r/risk.md) and [return](../r/return.md) profile, focusing on broad exposure to emerging [market](../m/market.md) equities. +- **SPDR MSCI Emerging Markets [Fund](../f/fund.md) (EEMG)**: Managed by State Street Global Advisors, this ETF aims to closely replicate the MSCI Emerging Markets [Index](../i/index_instrument.md)'s performance. ## Benefits of Investing in the MSCI Emerging Markets Index 1. **[Diversification Benefits](../d/diversification_benefits.md)**: Provides a broader [diversification](../d/diversification.md) compared to domestic or developed [market](../m/market.md) indices. 2. **Exposure to Growth**: Captures the economic [expansion](../e/expansion.md) potential of rapidly developing nations. -3. **Access to Dynamic Companies**: Many constituents of the [index](../i/index.md) are leaders in their respective industries with significant growth prospects. +3. **Access to Dynamic Companies**: Many constituents of the [index](../i/index_instrument.md) are leaders in their respective industries with significant growth prospects. ## Risks and Challenges -While the MSCI Emerging Markets [Index](../i/index.md) offers considerable potential, it is not without risks. Key challenges include: +While the MSCI Emerging Markets [Index](../i/index_instrument.md) offers considerable potential, it is not without risks. Key challenges include: 1. **Economic and Political Risks**: Emerging markets are often susceptible to political instability and policy changes that can impact [market](../m/market.md) performance. 2. **[Currency](../c/currency.md) Risks**: [Exchange rate](../e/exchange_rate.md) [volatility](../v/volatility.md) can significantly affect returns. @@ -53,13 +53,13 @@ While the MSCI Emerging Markets [Index](../i/index.md) offers considerable poten 4. **[Market](../m/market.md) [Liquidity](../l/liquidity.md)**: The [liquidity](../l/liquidity.md) of emerging markets can be lower compared to developed markets, potentially leading to higher [transaction costs](../t/transaction_costs.md). ## Future Outlook -The outlook for the MSCI Emerging Markets [Index](../i/index.md) remains strong, driven by several factors: +The outlook for the MSCI Emerging Markets [Index](../i/index_instrument.md) remains strong, driven by several factors: 1. **Continued Urbanization and [Industrialization](../i/industrialization.md)**: Ongoing development in [infrastructure](../i/infrastructure.md) and industrial activities supports long-term [economic growth](../e/economic_growth.md). 2. **Rising Middle Class**: Increasing disposable incomes are leading to higher consumption and investment levels. 3. **Technological Advancements**: Many emerging markets are embracing technology at rapid rates, fueling growth in sectors like e-[commerce](../c/commerce.md), fintech, and telecommunications. ## Conclusion -The MSCI Emerging Markets [Index](../i/index.md) is a crucial tool for investors seeking to diversify their portfolios and [capitalize](../c/capitalize.md) on the growth potential of emerging economies. While it comes with its set of risks, a balanced approach and diligent [risk management](../r/risk_management.md) can make it a significant component of a well-diversified [investment strategy](../i/investment_strategy.md). +The MSCI Emerging Markets [Index](../i/index_instrument.md) is a crucial tool for investors seeking to diversify their portfolios and [capitalize](../c/capitalize.md) on the growth potential of emerging economies. While it comes with its set of risks, a balanced approach and diligent [risk management](../r/risk_management.md) can make it a significant component of a well-diversified [investment strategy](../i/investment_strategy.md). -For more detailed information, you can visit MSCI's official page on the Emerging Markets [Index](../i/index.md) [here](https://www.msci.com/emerging-markets). \ No newline at end of file +For more detailed information, you can visit MSCI's official page on the Emerging Markets [Index](../i/index_instrument.md) [here](https://www.msci.com/emerging-markets). \ No newline at end of file diff --git a/en/pedia/e/end-of-day_trading_strategies.md b/en/pedia/e/end-of-day_trading_strategies.md index e194b2d9..ec2a53bd 100644 --- a/en/pedia/e/end-of-day_trading_strategies.md +++ b/en/pedia/e/end-of-day_trading_strategies.md @@ -5,11 +5,11 @@ End-of-Day (EOD) [trading strategies](../t/trading_strategies.md) involve execut ### Key Concepts and Strategies in End-of-Day Trading #### 1. **Technical Analysis for EOD Trading** -[Technical analysis](../t/technical_analysis.md) plays a crucial role in end-of-[day trading](../d/day_trading.md). Traders use various [technical indicators](../t/technical_indicators.md) and [chart patterns](../c/chart_patterns.md) to make informed decisions. Some of the most popular tools for EOD trading include moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), [Bollinger Bands](../b/bollinger_bands.md), and [candlestick patterns](../c/candlestick_patterns.md). +[Technical analysis](../t/technical_analysis.md) plays a crucial role in end-of-[day trading](../d/day_trading.md). Traders use various [technical indicators](../t/technical_indicators.md) and [chart patterns](../c/chart_patterns.md) to make informed decisions. Some of the most popular tools for EOD trading include moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), [Bollinger Bands](../b/bollinger_bands.md), and [candlestick patterns](../c/candlestick_patterns.md). - **Moving Averages**: Moving averages help identify the overall direction and strength of the [market](../m/market.md) [trend](../t/trend.md). EOD traders often use combinations like the 50-day and 200-day moving averages to signal potential entries and exits. -- **RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md))**: RSI measures the speed and change of price movements. An RSI above 70 might be interpreted as [overbought](../o/overbought.md), while an RSI below 30 could be considered [oversold](../o/oversold.md). These levels can signal potential reversals in the [market](../m/market.md). +- **RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md))**: RSI measures the speed and change of price movements. An RSI above 70 might be interpreted as [overbought](../o/overbought.md), while an RSI below 30 could be considered [oversold](../o/oversold.md). These levels can signal potential reversals in the [market](../m/market.md). - **[Bollinger Bands](../b/bollinger_bands.md)**: [Bollinger Bands](../b/bollinger_bands.md) consist of three lines: a simple moving average (middle band) and two [standard deviation](../s/standard_deviation.md) lines (upper and lower bands). They help traders understand [volatility](../v/volatility.md) and potential price breaks. diff --git a/en/pedia/e/enhanced_index_funds.md b/en/pedia/e/enhanced_index_funds.md index 21207499..5f974fa8 100644 --- a/en/pedia/e/enhanced_index_funds.md +++ b/en/pedia/e/enhanced_index_funds.md @@ -1,25 +1,25 @@ # Enhanced Index Funds -Enhanced [index](../i/index.md) funds, also known as [index](../i/index.md)-plus funds or active [index](../i/index.md) funds, represent a sophisticated financial strategy combining elements of both passive and active [fund](../f/fund.md) management. These funds aim to [outperform](../o/outperform.md) traditional [index](../i/index.md) funds by leveraging various [active management](../a/active_management.md) techniques while maintaining the core foundation of a passively managed [index](../i/index.md). The goal is to provide investors with a better [risk-adjusted return](../r/risk-adjusted_return.md) compared to standard [index](../i/index.md) funds. +Enhanced [index](../i/index_instrument.md) funds, also known as [index](../i/index_instrument.md)-plus funds or active [index](../i/index_instrument.md) funds, represent a sophisticated financial strategy combining elements of both passive and active [fund](../f/fund.md) management. These funds aim to [outperform](../o/outperform.md) traditional [index](../i/index_instrument.md) funds by leveraging various [active management](../a/active_management.md) techniques while maintaining the core foundation of a passively managed [index](../i/index_instrument.md). The goal is to provide investors with a better [risk-adjusted return](../r/risk-adjusted_return.md) compared to standard [index](../i/index_instrument.md) funds. ## Core Concepts of Enhanced Index Funds ### 1. Passive Foundation -The fundamental principle of enhanced [index](../i/index.md) funds is their reliance on a standard [benchmark](../b/benchmark.md) [index](../i/index.md), such as the S&P 500. This passive foundation ensures that the [fund](../f/fund.md) maintains a diversified portfolio that tracks the performance of the chosen [index](../i/index.md). +The fundamental principle of enhanced [index](../i/index_instrument.md) funds is their reliance on a standard [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), such as the S&P 500. This passive foundation ensures that the [fund](../f/fund.md) maintains a diversified portfolio that tracks the performance of the chosen [index](../i/index_instrument.md). ### 2. Active Management Overlay -Enhanced [index](../i/index.md) funds incorporate [active management](../a/active_management.md) strategies to add [value](../v/value.md) over and above the [benchmark](../b/benchmark.md) [index](../i/index.md) returns. This may include strategies like stock selection, [sector rotation](../s/sector_rotation.md), [quantitative analysis](../q/quantitative_analysis.md), and other proprietary methods developed by the [fund](../f/fund.md) managers. +Enhanced [index](../i/index_instrument.md) funds incorporate [active management](../a/active_management.md) strategies to add [value](../v/value.md) over and above the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) returns. This may include strategies like stock selection, [sector rotation](../s/sector_rotation.md), [quantitative analysis](../q/quantitative_analysis.md), and other proprietary methods developed by the [fund](../f/fund.md) managers. ### 3. Risk Management -One of the critical aspects of enhanced [index](../i/index.md) funds is [risk management](../r/risk_management.md). Managers employ various tools and techniques to manage and mitigate risks, ensuring that the [fund](../f/fund.md) does not deviate significantly from the [benchmark](../b/benchmark.md) [index](../i/index.md)'s [risk](../r/risk.md) profile. +One of the critical aspects of enhanced [index](../i/index_instrument.md) funds is [risk management](../r/risk_management.md). Managers employ various tools and techniques to manage and mitigate risks, ensuring that the [fund](../f/fund.md) does not deviate significantly from the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md)'s [risk](../r/risk.md) profile. ## Comparing Enhanced Index Funds to Traditional Index Funds -- **Performance Potential:** Enhanced [index](../i/index.md) funds aim to [outperform](../o/outperform.md) traditional [index](../i/index.md) funds by employing active strategies. While traditional [index](../i/index.md) funds aim to match the performance of the [benchmark](../b/benchmark.md), enhanced [index](../i/index.md) funds seek to exceed it. +- **Performance Potential:** Enhanced [index](../i/index_instrument.md) funds aim to [outperform](../o/outperform.md) traditional [index](../i/index_instrument.md) funds by employing active strategies. While traditional [index](../i/index_instrument.md) funds aim to match the performance of the [benchmark](../b/benchmark.md), enhanced [index](../i/index_instrument.md) funds seek to exceed it. -- **Cost:** Enhanced [index](../i/index.md) funds generally have higher [expense](../e/expense.md) ratios compared to traditional [index](../i/index.md) funds due to the [active management](../a/active_management.md) component. However, they usually have lower costs than fully active funds. +- **Cost:** Enhanced [index](../i/index_instrument.md) funds generally have higher [expense](../e/expense.md) ratios compared to traditional [index](../i/index_instrument.md) funds due to the [active management](../a/active_management.md) component. However, they usually have lower costs than fully active funds. -- **[Risk](../r/risk.md):** While traditional [index](../i/index.md) funds adhere strictly to the [benchmark](../b/benchmark.md), enhanced [index](../i/index.md) funds might introduce additional risks due to the [active management](../a/active_management.md) strategies they employ. +- **[Risk](../r/risk.md):** While traditional [index](../i/index_instrument.md) funds adhere strictly to the [benchmark](../b/benchmark.md), enhanced [index](../i/index_instrument.md) funds might introduce additional risks due to the [active management](../a/active_management.md) strategies they employ. ## Strategies Employed in Enhanced Index Funds @@ -27,46 +27,46 @@ One of the critical aspects of enhanced [index](../i/index.md) funds is [risk ma [Fund](../f/fund.md) managers may utilize [quantitative models](../q/quantitative_models.md) that analyze statistical data to inform investment decisions. These models can uncover patterns and trends that human analysts might miss, providing a systematic approach to enhancing returns. ### 2. Fundamental Analysis -This involves analyzing a company's [financial health](../f/financial_health.md), including metrics such as [earnings](../e/earnings.md), [revenue](../r/revenue.md), and [profit margins](../p/profit_margins_in_trading.md), to identify [undervalued](../u/undervalued.md) [stocks](../s/stock.md) within the [index](../i/index.md) that might [offer](../o/offer.md) better returns. +This involves analyzing a company's [financial health](../f/financial_health.md), including metrics such as [earnings](../e/earnings.md), [revenue](../r/revenue.md), and [profit margins](../p/profit_margins_in_trading.md), to identify [undervalued](../u/undervalued.md) [stocks](../s/stock.md) within the [index](../i/index_instrument.md) that might [offer](../o/offer.md) better returns. ### 3. Technical Analysis [Technical analysis](../t/technical_analysis.md) looks at historical [market](../m/market.md) data, primarily price and [volume](../v/volume.md), to forecast future price movements. This can help in timing investments and identifying entry and exit points for specific [stocks](../s/stock.md). ### 4. Factor Investing -This strategy involves targeting specific factors such as [value](../v/value.md), [momentum](../m/momentum.md), size, and [volatility](../v/volatility.md) that have historically been associated with higher returns. Enhanced [index](../i/index.md) funds might [overweight](../o/overweight.md) or [underweight](../u/underweight.md) these factors relative to the [benchmark](../b/benchmark.md) [index](../i/index.md). +This strategy involves targeting specific factors such as [value](../v/value.md), [momentum](../m/momentum.md), size, and [volatility](../v/volatility.md) that have historically been associated with higher returns. Enhanced [index](../i/index_instrument.md) funds might [overweight](../o/overweight.md) or [underweight](../u/underweight.md) these factors relative to the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). ### 5. Sector Rotation Managers might shift the [fund](../f/fund.md)'s weighting among different sectors of the [economy](../e/economy.md) based on macroeconomic trends and forecasts, seeking to [capitalize](../c/capitalize.md) on the performance of particular industries at different times. ## Benefits of Enhanced Index Funds -- **Potential for Higher Returns:** By incorporating [active management](../a/active_management.md) strategies, enhanced [index](../i/index.md) funds [offer](../o/offer.md) the potential to [outperform](../o/outperform.md) traditional [index](../i/index.md) funds. -- **[Diversification](../d/diversification.md):** These funds still provide the broad [market exposure](../m/market_exposure.md) and [diversification benefits](../d/diversification_benefits.md) inherent in standard [index](../i/index.md) funds. -- **Cost [Efficiency](../e/efficiency.md):** Enhanced [index](../i/index.md) funds typically have lower fees compared to fully active funds, making them a cost-effective way to pursue higher returns. -- **Defined [Benchmark](../b/benchmark.md):** Investors benefit from the clarity of a defined [benchmark](../b/benchmark.md) [index](../i/index.md), which aids in measuring performance and managing expectations. +- **Potential for Higher Returns:** By incorporating [active management](../a/active_management.md) strategies, enhanced [index](../i/index_instrument.md) funds [offer](../o/offer.md) the potential to [outperform](../o/outperform.md) traditional [index](../i/index_instrument.md) funds. +- **[Diversification](../d/diversification.md):** These funds still provide the broad [market exposure](../m/market_exposure.md) and [diversification benefits](../d/diversification_benefits.md) inherent in standard [index](../i/index_instrument.md) funds. +- **Cost [Efficiency](../e/efficiency.md):** Enhanced [index](../i/index_instrument.md) funds typically have lower fees compared to fully active funds, making them a cost-effective way to pursue higher returns. +- **Defined [Benchmark](../b/benchmark.md):** Investors benefit from the clarity of a defined [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), which aids in measuring performance and managing expectations. ## Challenges and Risks -- **[Active Management](../a/active_management.md) [Risk](../r/risk.md):** The success of enhanced [index](../i/index.md) funds heavily relies on the skill and strategy of the [fund](../f/fund.md) managers. Poor decisions can result in underperformance relative to the [benchmark](../b/benchmark.md) [index](../i/index.md). -- **Higher Costs:** While still more affordable than fully active funds, the costs associated with enhanced [index](../i/index.md) funds are higher than those of traditional [index](../i/index.md) funds. -- **[Market](../m/market.md) Conditions:** Enhanced [index](../i/index.md) strategies may not perform well under all [market](../m/market.md) conditions, particularly during periods of extreme [volatility](../v/volatility.md) or unexpected macroeconomic events. +- **[Active Management](../a/active_management.md) [Risk](../r/risk.md):** The success of enhanced [index](../i/index_instrument.md) funds heavily relies on the skill and strategy of the [fund](../f/fund.md) managers. Poor decisions can result in underperformance relative to the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). +- **Higher Costs:** While still more affordable than fully active funds, the costs associated with enhanced [index](../i/index_instrument.md) funds are higher than those of traditional [index](../i/index_instrument.md) funds. +- **[Market](../m/market.md) Conditions:** Enhanced [index](../i/index_instrument.md) strategies may not perform well under all [market](../m/market.md) conditions, particularly during periods of extreme [volatility](../v/volatility.md) or unexpected macroeconomic events. ## Examples of Enhanced Index Funds and Providers ### Vanguard Enhanced Index Fund -Vanguard is known for its [range](../r/range.md) of [index](../i/index.md) funds, including enhanced [options](../o/options.md). These funds [leverage](../l/leverage.md) Vanguard's extensive research and analytics to deliver potential outperformance. +Vanguard is known for its [range](../r/range.md) of [index](../i/index_instrument.md) funds, including enhanced [options](../o/options.md). These funds [leverage](../l/leverage.md) Vanguard's extensive research and analytics to deliver potential outperformance. ### BlackRock Advantage Series -BlackRock offers a series of enhanced [index](../i/index.md) funds that utilize their Aladdin platform and other proprietary technologies to inform investment decisions and enhance returns. +BlackRock offers a series of enhanced [index](../i/index_instrument.md) funds that utilize their Aladdin platform and other proprietary technologies to inform investment decisions and enhance returns. Visit BlackRock's page for more details: [BlackRock Enhanced Index Solutions](https://www.blackrock.com/us/individual/products/249855/) ### Fidelity Enhanced Index Funds -Fidelity provides a suite of enhanced [index](../i/index.md) funds that incorporate various [active management](../a/active_management.md) strategies aimed at delivering superior returns while maintaining [robust](../r/robust.md) [risk](../r/risk.md) controls. +Fidelity provides a suite of enhanced [index](../i/index_instrument.md) funds that incorporate various [active management](../a/active_management.md) strategies aimed at delivering superior returns while maintaining [robust](../r/robust.md) [risk](../r/risk.md) controls. Read more at: [Fidelity Enhanced Index Funds](https://www.fidelity.com/mutual-funds/fidelity-funds/overview) ## Conclusion -Enhanced [index](../i/index.md) funds represent a compelling investment option, blending the stability of passive [indexing](../i/indexing.md) with the potential for outperformance through [active management](../a/active_management.md) strategies. While they come with their own set of risks and costs, the promise of superior [risk](../r/risk.md)-adjusted returns makes them an attractive choice for investors looking to [capitalize](../c/capitalize.md) on [market](../m/market.md) opportunities. As with any investment, it’s crucial to thoroughly research and understand the [fund](../f/fund.md)’s strategy and management before committing [capital](../c/capital.md). +Enhanced [index](../i/index_instrument.md) funds represent a compelling investment option, blending the stability of passive [indexing](../i/indexing.md) with the potential for outperformance through [active management](../a/active_management.md) strategies. While they come with their own set of risks and costs, the promise of superior [risk](../r/risk.md)-adjusted returns makes them an attractive choice for investors looking to [capitalize](../c/capitalize.md) on [market](../m/market.md) opportunities. As with any investment, it’s crucial to thoroughly research and understand the [fund](../f/fund.md)’s strategy and management before committing [capital](../c/capital.md). diff --git a/en/pedia/e/entry_and_exit_strategies.md b/en/pedia/e/entry_and_exit_strategies.md index cc868000..d4ee83cd 100644 --- a/en/pedia/e/entry_and_exit_strategies.md +++ b/en/pedia/e/entry_and_exit_strategies.md @@ -24,7 +24,7 @@ A common strategy is the **[Golden Cross](../g/golden_cross.md)**, which occurs #### 2. Relative Strength Index (RSI) -The **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)** is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It ranges from 0 to 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +The **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)** is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It ranges from 0 to 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. **Example:** An RSI [value](../v/value.md) above 70 is considered [overbought](../o/overbought.md), suggesting a potential entry point for a short position. Conversely, an RSI below 30 is considered [oversold](../o/oversold.md), indicating a potential entry point for a long position. diff --git a/en/pedia/e/entry_signal_generation.md b/en/pedia/e/entry_signal_generation.md index a0fef53b..d7cae0a0 100644 --- a/en/pedia/e/entry_signal_generation.md +++ b/en/pedia/e/entry_signal_generation.md @@ -11,7 +11,7 @@ In the domain of [algorithmic trading](../a/algorithmic_trading.md), one of the - **Simple Moving Average (SMA)**: The [arithmetic mean](../a/arithmetic_mean.md) of a given set of prices. - **Exponential Moving Average (EMA)**: Gives more weight to the latest data points. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measures the speed and change of price movements, useful for identifying [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measures the speed and change of price movements, useful for identifying [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: Shows the relationship between two moving averages of prices. diff --git a/en/pedia/e/envelope.md b/en/pedia/e/envelope.md index 96e07fb6..df6602f1 100644 --- a/en/pedia/e/envelope.md +++ b/en/pedia/e/envelope.md @@ -67,7 +67,7 @@ Traders can then observe how the price interacts with the envelope bands and mak ## Advanced Considerations 1. **[Volatility](../v/volatility.md) Adjustment**: During periods of high [market](../m/market.md) [volatility](../v/volatility.md), traders might need to adjust the envelope percentage to prevent frequent [false signals](../f/false_signals_in_trading.md). -2. **Confirmation with Other Indicators**: To enhance the accuracy of [trading signals](../t/trading_signals.md), envelopes can be used in conjunction with other [technical indicators](../t/technical_indicator.md) such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_band.md). +2. **Confirmation with Other Indicators**: To enhance the accuracy of [trading signals](../t/trading_signals.md), envelopes can be used in conjunction with other [technical indicators](../t/technical_indicator.md) such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_band.md). 3. **[Algorithmic Trading](../a/accountability.md) Applications**: Algorithmic traders often implement envelopes in their [trading algorithms](../t/trading_algorithms.md) to automate [trade](../t/trade.md) decisions based on predefined criteria. 4. **[Backtesting](../b/backtesting.md)**: Before using envelopes in live trading, it’s crucial to backtest the strategy on historical data to evaluate the performance and reliability of the signals generated. diff --git a/en/pedia/e/environmental_social_and_governance_(esg)_investing.md b/en/pedia/e/environmental_social_and_governance_(esg)_investing.md index af900c73..c0724eb8 100644 --- a/en/pedia/e/environmental_social_and_governance_(esg)_investing.md +++ b/en/pedia/e/environmental_social_and_governance_(esg)_investing.md @@ -51,7 +51,7 @@ There are several agencies and indices dedicated to evaluating and ranking compa [Sustainalytics](https://www.sustainalytics.com/esg-ratings) specializes in ESG and [corporate governance](../c/corporate_governance.md) research, ratings, and analytics. The [firm](../f/firm.md)'s ESG [Risk](../r/risk.md) Ratings assess the degree to which a company's enterprise [value](../v/value.md) is at [risk](../r/risk.md) driven by ESG factors and how well a company is managing those risks. ##### 3.3 FTSE4Good Index Series -[FTSE4Good](https://www.ftserussell.com/products/indices/ftse4good) [Index](../i/index.md) Series is designed to measure the performance of companies demonstrating strong ESG practices. These indices can be used by a [range](../r/range.md) of [market](../m/market.md) participants when creating or assessing responsible investment products. +[FTSE4Good](https://www.ftserussell.com/products/indices/ftse4good) [Index](../i/index_instrument.md) Series is designed to measure the performance of companies demonstrating strong ESG practices. These indices can be used by a [range](../r/range.md) of [market](../m/market.md) participants when creating or assessing responsible investment products. ##### 3.4 Bloomberg ESG Data Services [Bloomberg](https://www.bloomberg.com/professional/solution/esg-data/) offers extensive ESG data sets, including proprietary ESG scores and ratings. This data supports ESG analysis and helps integrate ESG into the investment process. diff --git a/en/pedia/e/equal_weight.md b/en/pedia/e/equal_weight.md index 46b9be70..2577b730 100644 --- a/en/pedia/e/equal_weight.md +++ b/en/pedia/e/equal_weight.md @@ -1,6 +1,6 @@ # Equal Weight -In the world of [investing](../i/investing.md) and [finance](../f/finance.md), "equal weight" refers to a specific type of [investment strategy](../i/investment_strategy.md) or portfolio construction. An equal weight strategy entails assigning the same weight or [value](../v/value.md) to each [asset](../a/asset.md) within a portfolio or an [index](../i/index.md). This approach stands in contrast to other strategies where assets are [weighted](../w/weighted.md) based on certain criteria, such as [market capitalization](../m/market_capitalization.md), [earnings](../e/earnings.md), or other financial metrics. The equal weight strategy has gained prominence due to its simplicity and the unique advantages it offers to investors. Below, we delve deeper into the mechanisms, benefits, drawbacks, and practical applications of the equal weight strategy. +In the world of [investing](../i/investing.md) and [finance](../f/finance.md), "equal weight" refers to a specific type of [investment strategy](../i/investment_strategy.md) or portfolio construction. An equal weight strategy entails assigning the same weight or [value](../v/value.md) to each [asset](../a/asset.md) within a portfolio or an [index](../i/index_instrument.md). This approach stands in contrast to other strategies where assets are [weighted](../w/weighted.md) based on certain criteria, such as [market capitalization](../m/market_capitalization.md), [earnings](../e/earnings.md), or other financial metrics. The equal weight strategy has gained prominence due to its simplicity and the unique advantages it offers to investors. Below, we delve deeper into the mechanisms, benefits, drawbacks, and practical applications of the equal weight strategy. ## Mechanisms of Equal Weight Strategy @@ -14,7 +14,7 @@ At its core, the equal weight strategy is straightforward. Here’s how it works ### Example Scenario -Consider an equal weight [index](../i/index.md) comprised of 5 [stocks](../s/stock.md): A, B, C, D, and E. At the start, each stock contributes 20% of the total investment: +Consider an equal weight [index](../i/index_instrument.md) comprised of 5 [stocks](../s/stock.md): A, B, C, D, and E. At the start, each stock contributes 20% of the total investment: - A: 20% - B: 20% @@ -74,12 +74,12 @@ The necessity of periodic [rebalancing](../r/rebalancing.md) demands continuous ### Equal Weight Index Funds and ETFs -Several financial products are designed to mimic the equal weight strategy. Equal weight [index](../i/index.md) funds and ETFs provide investors with a convenient way to [gain](../g/gain.md) exposure to this strategy without having to manage it themselves. Some notable examples include: +Several financial products are designed to mimic the equal weight strategy. Equal weight [index](../i/index_instrument.md) funds and ETFs provide investors with a convenient way to [gain](../g/gain.md) exposure to this strategy without having to manage it themselves. Some notable examples include: -- **Invesco S&P 500® Equal Weight ETF (RSP):** This ETF aims to [offer](../o/offer.md) the performance of the S&P 500 Equal Weight [Index](../i/index.md), providing equal exposure to S&P 500 constituents. +- **Invesco S&P 500® Equal Weight ETF (RSP):** This ETF aims to [offer](../o/offer.md) the performance of the S&P 500 Equal Weight [Index](../i/index_instrument.md), providing equal exposure to S&P 500 constituents. - [Invesco S&P 500® Equal Weight ETF (RSP) - Invesco](https://www.invesco.com/us/financial-products/etfs/holdings?productId=RSP) -- **Guggenheim S&P 500® Equal Weight ETF (EWRI):** Similar to Invesco's RSP, this ETF targets an equal weight replication of the S&P 500 [Index](../i/index.md). +- **Guggenheim S&P 500® Equal Weight ETF (EWRI):** Similar to Invesco's RSP, this ETF targets an equal weight replication of the S&P 500 [Index](../i/index_instrument.md). - [Guggenheim S&P 500® Equal Weight ETF (EWRI) - Guggenheim Investments](https://www.guggenheiminvestments.com/products/etf/EWRI) ### Asset Allocation and Portfolio Management @@ -94,7 +94,7 @@ Equal weight strategies are often employed in retirement accounts like IRAs and ### Sector Equal Weighting -Instead of applying equal weights to individual [stocks](../s/stock.md), some strategies use equal weighting across sectors. For example, an [index](../i/index.md) might assign equal weights to the technology, healthcare, financial, and energy sectors. This can balance sector-specific risks and opportunities within a portfolio. +Instead of applying equal weights to individual [stocks](../s/stock.md), some strategies use equal weighting across sectors. For example, an [index](../i/index_instrument.md) might assign equal weights to the technology, healthcare, financial, and energy sectors. This can balance sector-specific risks and opportunities within a portfolio. ### International Equal Weighting @@ -106,4 +106,4 @@ Equal weight is sometimes categorized as a form of "[smart beta](../s/smart_beta ## Conclusion -Equal weight investment is a compelling strategy for individuals seeking [diversification](../d/diversification.md), balanced [risk](../r/risk.md), and potentially higher returns. While it does come with certain drawbacks, such as higher [trading costs](../t/trading_costs.md) and [tracking error](../t/tracking_error.md), its simplicity and effectiveness make it a viable option for many investors. Whether through [direct investment](../d/direct_investment.md), [index](../i/index.md) funds, or ETFs, equal weight strategies provide a structured yet straightforward approach to navigating the complexities of the [financial markets](../f/financial_market.md). By understanding and carefully implementing this strategy, investors can achieve a harmonious balance that aligns with their broader financial goals. \ No newline at end of file +Equal weight investment is a compelling strategy for individuals seeking [diversification](../d/diversification.md), balanced [risk](../r/risk.md), and potentially higher returns. While it does come with certain drawbacks, such as higher [trading costs](../t/trading_costs.md) and [tracking error](../t/tracking_error.md), its simplicity and effectiveness make it a viable option for many investors. Whether through [direct investment](../d/direct_investment.md), [index](../i/index_instrument.md) funds, or ETFs, equal weight strategies provide a structured yet straightforward approach to navigating the complexities of the [financial markets](../f/financial_market.md). By understanding and carefully implementing this strategy, investors can achieve a harmonious balance that aligns with their broader financial goals. \ No newline at end of file diff --git a/en/pedia/e/equation_of_exchange.md b/en/pedia/e/equation_of_exchange.md index 0a893d36..8e909901 100644 --- a/en/pedia/e/equation_of_exchange.md +++ b/en/pedia/e/equation_of_exchange.md @@ -22,7 +22,7 @@ The [money supply](../m/money_supply.md) represents the total amount of monetary The [velocity of money](../v/velocity_of_money.md) is the average frequency with which a unit of [money](../m/money.md) circulates and is used for purchasing goods and services within a specific period. Velocity is crucial in determining how efficiently the [money supply](../m/money_supply.md) supports economic activities. A higher velocity indicates that each unit of [currency](../c/currency.md) is being used more frequently in transactions, which can amplify economic output without an equivalent increase in the [money supply](../m/money_supply.md). ### Price Level (P) -The [price level](../p/price_level.md) (P) represents the average of current prices across a broad spectrum of goods and services produced in the [economy](../e/economy.md). Economists often use indices such as the Consumer Price [Index](../i/index.md) (CPI) or the Gross Domestic Product Deflator (GDP deflator) to measure the [price level](../p/price_level.md). Rising price levels typically indicate [inflation](../i/inflation.md), while falling price levels can indicate [deflation](../d/deflation.md). +The [price level](../p/price_level.md) (P) represents the average of current prices across a broad spectrum of goods and services produced in the [economy](../e/economy.md). Economists often use indices such as the Consumer Price [Index](../i/index_instrument.md) (CPI) or the Gross Domestic Product Deflator (GDP deflator) to measure the [price level](../p/price_level.md). Rising price levels typically indicate [inflation](../i/inflation.md), while falling price levels can indicate [deflation](../d/deflation.md). ### Real Output (Q) Real output (Q) refers to the total quantity of goods and services produced in an [economy](../e/economy.md), adjusted for [inflation](../i/inflation.md). It is synonymous with real Gross Domestic Product (GDP). Real output reflects the [economy](../e/economy.md)'s actual productive capacity and serves as a key [indicator](../i/indicator.md) of economic health. diff --git a/en/pedia/e/equity-linked_note_(eln).md b/en/pedia/e/equity-linked_note_(eln).md index 260a70b6..cd735f8b 100644 --- a/en/pedia/e/equity-linked_note_(eln).md +++ b/en/pedia/e/equity-linked_note_(eln).md @@ -8,7 +8,7 @@ An [Equity](../e/equity.md)-Linked [Note](../n/note.md) (ELN) is a structured fi 1. **[Principal](../p/principal.md) Amount**: This is the initial investment amount in the ELN, often referred to as the [face value](../f/face_value.md). 2. **[Maturity Date](../m/maturity_date.md)**: The date on which the ELN matures and the [investor](../i/investor.md) is repaid the [principal](../p/principal.md) amount, subject to the performance of the linked [equity](../e/equity.md). -3. **Linked [Equity](../e/equity.md)**: The specific stock, basket of [stocks](../s/stock.md), or [equity](../e/equity.md) [index](../i/index.md) to which the performance of the ELN is tied. +3. **Linked [Equity](../e/equity.md)**: The specific stock, basket of [stocks](../s/stock.md), or [equity](../e/equity.md) [index](../i/index_instrument.md) to which the performance of the ELN is tied. 4. **[Interest](../i/interest.md)/[Dividend](../d/dividend.md) Payments**: Some ELNs may [offer](../o/offer.md) periodic [interest](../i/interest.md) payments, which could be fixed or variable based on the performance of the linked [equity](../e/equity.md). ### Types of ELNs diff --git a/en/pedia/e/equity-linked_security_(elks).md b/en/pedia/e/equity-linked_security_(elks).md index d3b823ae..c0df9d17 100644 --- a/en/pedia/e/equity-linked_security_(elks).md +++ b/en/pedia/e/equity-linked_security_(elks).md @@ -1,12 +1,12 @@ # Equity-Linked Security (ELKS) -[Equity](../e/equity.md)-Linked Securities (ELKS) are a type of [financial instrument](../f/financial_instrument.md) that combines features of both [debt](../d/debt.md) and [equity](../e/equity.md). These hybrid securities [offer](../o/offer.md) investors the opportunity to participate in the potential [upside](../u/upside.md) of a specific stock or [equity](../e/equity.md) [index](../i/index.md), while providing a degree of [capital](../c/capital.md) protection or [income](../i/income.md) generation. They are particularly appealing to investors seeking exposure to [equity](../e/equity.md) markets with a lower [risk](../r/risk.md) profile. +[Equity](../e/equity.md)-Linked Securities (ELKS) are a type of [financial instrument](../f/financial_instrument.md) that combines features of both [debt](../d/debt.md) and [equity](../e/equity.md). These hybrid securities [offer](../o/offer.md) investors the opportunity to participate in the potential [upside](../u/upside.md) of a specific stock or [equity](../e/equity.md) [index](../i/index_instrument.md), while providing a degree of [capital](../c/capital.md) protection or [income](../i/income.md) generation. They are particularly appealing to investors seeking exposure to [equity](../e/equity.md) markets with a lower [risk](../r/risk.md) profile. ## Key Features of ELKS ### Structure -ELKS typically have a fixed term, which can vary but commonly ranges from one to five years. They are issued by financial institutions such as banks and investment firms. The [value](../v/value.md) of an ELKS is linked to the performance of a specific [underlying asset](../u/underlying_asset.md), usually a single stock or an [equity](../e/equity.md) [index](../i/index.md). +ELKS typically have a fixed term, which can vary but commonly ranges from one to five years. They are issued by financial institutions such as banks and investment firms. The [value](../v/value.md) of an ELKS is linked to the performance of a specific [underlying asset](../u/underlying_asset.md), usually a single stock or an [equity](../e/equity.md) [index](../i/index_instrument.md). ### Principal Protection @@ -18,7 +18,7 @@ ELKS often come with periodic [interest](../i/interest.md) or coupon payments, w ### Upside Potential -Unlike traditional [debt](../d/debt.md) instruments, ELKS allow investors to participate in the potential appreciation of the [underlying](../u/underlying.md) [equity](../e/equity.md). If the [underlying](../u/underlying.md) stock or [index](../i/index.md) surpasses a certain threshold, known as the [participation rate](../p/participation_rate.md) or cap, the [investor](../i/investor.md) receives additional returns based on the performance of the [underlying asset](../u/underlying_asset.md). +Unlike traditional [debt](../d/debt.md) instruments, ELKS allow investors to participate in the potential appreciation of the [underlying](../u/underlying.md) [equity](../e/equity.md). If the [underlying](../u/underlying.md) stock or [index](../i/index_instrument.md) surpasses a certain threshold, known as the [participation rate](../p/participation_rate.md) or cap, the [investor](../i/investor.md) receives additional returns based on the performance of the [underlying asset](../u/underlying_asset.md). ### Downside Risk diff --git a/en/pedia/e/equity_derivative.md b/en/pedia/e/equity_derivative.md index 1aff6d5f..79b7af6d 100644 --- a/en/pedia/e/equity_derivative.md +++ b/en/pedia/e/equity_derivative.md @@ -1,6 +1,6 @@ # Equity Derivative -An [equity](../e/equity.md) [derivative](../d/derivative.md) is a [financial instrument](../f/financial_instrument.md) whose [value](../v/value.md) is based on the [equity](../e/equity.md) movements of the [underlying asset](../u/underlying_asset.md), typically a stock or a stock [index](../i/index.md). These [derivatives](../d/derivatives.md) are used for various purposes, including hedging risks, speculating on future movements, and leveraging positions. They come in many forms, including [options](../o/options.md), [futures](../f/futures.md), swaps, and structured products. +An [equity](../e/equity.md) [derivative](../d/derivative.md) is a [financial instrument](../f/financial_instrument.md) whose [value](../v/value.md) is based on the [equity](../e/equity.md) movements of the [underlying asset](../u/underlying_asset.md), typically a stock or a stock [index](../i/index_instrument.md). These [derivatives](../d/derivatives.md) are used for various purposes, including hedging risks, speculating on future movements, and leveraging positions. They come in many forms, including [options](../o/options.md), [futures](../f/futures.md), swaps, and structured products. ## Types of Equity Derivatives @@ -13,11 +13,11 @@ An [equity](../e/equity.md) [derivative](../d/derivative.md) is a [financial ins ### Futures -[Equity](../e/equity.md) [futures](../f/futures.md) are contracts to buy or sell a specific quantity of a stock or a stock [index](../i/index.md) at a predetermined future date and price. Unlike [options](../o/options.md), [futures](../f/futures.md) obligate the holder to complete the [transaction](../t/transaction.md). +[Equity](../e/equity.md) [futures](../f/futures.md) are contracts to buy or sell a specific quantity of a stock or a stock [index](../i/index_instrument.md) at a predetermined future date and price. Unlike [options](../o/options.md), [futures](../f/futures.md) obligate the holder to complete the [transaction](../t/transaction.md). ### Swaps -[Equity](../e/equity.md) swaps involve the [exchange](../e/exchange.md) of future cash flows based on the [underlying](../u/underlying.md) [equity](../e/equity.md) [index](../i/index.md) or stock. The two parties agree to [swap](../s/swap.md) the returns of one [asset](../a/asset.md) for another, typically exchanging a [floating interest rate](../f/floating_interest_rate.md) for the performance of a stock or stock [index](../i/index.md). +[Equity](../e/equity.md) swaps involve the [exchange](../e/exchange.md) of future cash flows based on the [underlying](../u/underlying.md) [equity](../e/equity.md) [index](../i/index_instrument.md) or stock. The two parties agree to [swap](../s/swap.md) the returns of one [asset](../a/asset.md) for another, typically exchanging a [floating interest rate](../f/floating_interest_rate.md) for the performance of a stock or stock [index](../i/index_instrument.md). ### Structured Products @@ -45,7 +45,7 @@ Traders engage in [arbitrage](../a/arbitrage.md) by exploiting price differences ### Market Risk -The [value](../v/value.md) of [equity derivatives](../e/equity_derivatives.md) is largely influenced by the price movements of the [underlying](../u/underlying.md) stock or [index](../i/index.md). [Volatility](../v/volatility.md) in the markets can lead to significant gains or losses. +The [value](../v/value.md) of [equity derivatives](../e/equity_derivatives.md) is largely influenced by the price movements of the [underlying](../u/underlying.md) stock or [index](../i/index_instrument.md). [Volatility](../v/volatility.md) in the markets can lead to significant gains or losses. ### Credit Risk diff --git a/en/pedia/e/equity_fund.md b/en/pedia/e/equity_fund.md index bc660e96..b014fcec 100644 --- a/en/pedia/e/equity_fund.md +++ b/en/pedia/e/equity_fund.md @@ -10,7 +10,7 @@ An [equity](../e/equity.md) [fund](../f/fund.md) is a type of [mutual fund](../m - **Diversified [Equity](../e/equity.md) Funds**: Invest broadly across different sectors and industries. - **Sector-Specific [Equity](../e/equity.md) Funds**: Focus on [stocks](../s/stock.md) within a specific sector, such as technology or healthcare. -- **[Index](../i/index.md) Funds**: Aim to replicate the performance of a specific stock [market index](../m/market_index.md) like the S&P 500. +- **[Index](../i/index_instrument.md) Funds**: Aim to replicate the performance of a specific stock [market index](../m/market_index.md) like the S&P 500. - **Growth Funds**: Target companies with high potential for future growth. - **[Value](../v/value.md) Funds**: Invest in [undervalued](../u/undervalued.md) [stocks](../s/stock.md) that are expected to appreciate in [value](../v/value.md). @@ -30,7 +30,7 @@ Sector-specific [equity](../e/equity.md) funds concentrate their investments in ### Index Funds -[Index](../i/index.md) funds seek to replicate the performance of a specific stock [market index](../m/market_index.md) by holding the same [stocks](../s/stock.md) in the same proportions as the [index](../i/index.md). These funds are passively managed and often have lower fees compared to actively managed funds. +[Index](../i/index_instrument.md) funds seek to replicate the performance of a specific stock [market index](../m/market_index.md) by holding the same [stocks](../s/stock.md) in the same proportions as the [index](../i/index_instrument.md). These funds are passively managed and often have lower fees compared to actively managed funds. - **Example**: Vanguard 500 [Index Fund](../i/index_fund.md) (VFIAX) - [Link](https://investor.vanguard.com/mutual-funds/profile/VFIAX) diff --git a/en/pedia/e/equity_investment_strategies.md b/en/pedia/e/equity_investment_strategies.md index 1ae11240..0da7495e 100644 --- a/en/pedia/e/equity_investment_strategies.md +++ b/en/pedia/e/equity_investment_strategies.md @@ -42,7 +42,7 @@ [Momentum investing](../m/momentum_investing.md) involves buying securities that have shown an upward price [trend](../t/trend.md), expecting that the [momentum](../m/momentum.md) [will](../w/will.md) continue. Conversely, it may also involve short-selling securities with downward trends. -- **Key Indicators**: [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD). +- **Key Indicators**: [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD). - **Notable Practitioners**: Richard Driehaus. - **Example**: Riding trends in sectors like technology or cryptocurrencies. @@ -66,13 +66,13 @@ [Index investing](../i/index_investing.md) aims to replicate the performance of a [market index](../m/market_index.md), like the S&P 500. This passive [investment strategy](../i/investment_strategy.md) relies on [diversification benefits](../d/diversification_benefits.md) and lower costs. -- **Key Indicators**: [Index](../i/index.md) [performance metrics](../p/performance_metrics.md) like returns, [volatility](../v/volatility.md). +- **Key Indicators**: [Index](../i/index_instrument.md) [performance metrics](../p/performance_metrics.md) like returns, [volatility](../v/volatility.md). - **Notable Practitioners**: [John Bogle](../j/john_bogle.md), founder of Vanguard Group (https://[investor](../i/investor.md).vanguard.com). -- **Example**: [Investing](../i/investing.md) in the entire [market](../m/market.md) through [index](../i/index.md) mutual funds or ETFs. +- **Example**: [Investing](../i/investing.md) in the entire [market](../m/market.md) through [index](../i/index_instrument.md) mutual funds or ETFs. ### Tools and Techniques -- **[Benchmark](../b/benchmark.md) Tracking**: Measures [portfolio performance](../p/portfolio_performance.md) against the chosen [index](../i/index.md). -- **Passive [Fund](../f/fund.md) Management**: Involves minimal trading to mimic [index](../i/index.md) performance. +- **[Benchmark](../b/benchmark.md) Tracking**: Measures [portfolio performance](../p/portfolio_performance.md) against the chosen [index](../i/index_instrument.md). +- **Passive [Fund](../f/fund.md) Management**: Involves minimal trading to mimic [index](../i/index_instrument.md) performance. ## 7. Sector Rotation diff --git a/en/pedia/e/equity_research.md b/en/pedia/e/equity_research.md index 5d29c256..c0d844f1 100644 --- a/en/pedia/e/equity_research.md +++ b/en/pedia/e/equity_research.md @@ -20,7 +20,7 @@ [Technical analysis](../t/technical_analysis.md) studies price movements and trading volumes to identify patterns and trends. Techniques include: - **[Chart Patterns](../c/chart_patterns.md)**: Recognizing formations like head and shoulders, double tops/bottoms, and triangles. -- **Indicators**: Using tools like moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and moving average convergence [divergence](../d/divergence.md) (MACD) to make trading decisions. +- **Indicators**: Using tools like moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and moving average convergence [divergence](../d/divergence.md) (MACD) to make trading decisions. - **[Volume Analysis](../v/volume_analysis.md)**: Examining trading [volume](../v/volume.md) to confirm the strength of price movements. ### Quantitative Analysis @@ -45,7 +45,7 @@ Research-driven strategies may include: - **[Mean Reversion](../m/mean_reversion.md)**: Based on the assumption that stock prices [will](../w/will.md) revert to their historical mean over time. Algorithms buy underperforming [stocks](../s/stock.md) and sell outperforming ones. - **[Momentum](../m/momentum.md)**: Capitalizing on the continuation of existing trends. [Momentum](../m/momentum.md) strategies typically buy [stocks](../s/stock.md) that are on an upward trajectory and sell those on a downward [trend](../t/trend.md). -- **[Arbitrage](../a/arbitrage.md)**: Exploiting price differences between related securities. This can be statistical [arbitrage](../a/arbitrage.md), [merger](../m/merger.md) [arbitrage](../a/arbitrage.md), or [index](../i/index.md) [arbitrage](../a/arbitrage.md). +- **[Arbitrage](../a/arbitrage.md)**: Exploiting price differences between related securities. This can be statistical [arbitrage](../a/arbitrage.md), [merger](../m/merger.md) [arbitrage](../a/arbitrage.md), or [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md). ### Backtesting diff --git a/en/pedia/e/equity_swap.md b/en/pedia/e/equity_swap.md index c6aba412..15f96b81 100644 --- a/en/pedia/e/equity_swap.md +++ b/en/pedia/e/equity_swap.md @@ -1,6 +1,6 @@ # Equity Swap -An [equity](../e/equity.md) [swap](../s/swap.md) is a financial [derivative](../d/derivative.md) contract in which two parties agree to [exchange](../e/exchange.md) a series of cash flows or returns over a specific period of time. These cash flows are determined by a [notional principal amount](../n/notional_principal_amount.md), but the [principal](../p/principal.md) itself is not exchanged. Instead, the exchanged payments are based on the performance of an [equity](../e/equity.md) [asset](../a/asset.md) or an [equity](../e/equity.md) [index](../i/index.md) and a specified fixed or [floating interest rate](../f/floating_interest_rate.md). +An [equity](../e/equity.md) [swap](../s/swap.md) is a financial [derivative](../d/derivative.md) contract in which two parties agree to [exchange](../e/exchange.md) a series of cash flows or returns over a specific period of time. These cash flows are determined by a [notional principal amount](../n/notional_principal_amount.md), but the [principal](../p/principal.md) itself is not exchanged. Instead, the exchanged payments are based on the performance of an [equity](../e/equity.md) [asset](../a/asset.md) or an [equity](../e/equity.md) [index](../i/index_instrument.md) and a specified fixed or [floating interest rate](../f/floating_interest_rate.md). ## Structure of an Equity Swap @@ -12,7 +12,7 @@ The notional [principal](../p/principal.md) is the theoretical amount on which t ### Leg 1: Equity Leg -This [leg](../l/leg.md) is linked to the performance of an [equity](../e/equity.md) [asset](../a/asset.md) or [equity](../e/equity.md) [index](../i/index.md). The total returns from this [equity](../e/equity.md) [asset](../a/asset.md) or [index](../i/index.md), including both dividends and [capital](../c/capital.md) gains or losses, are paid by one party to the other. The [equity](../e/equity.md) [asset](../a/asset.md) can be specific [stocks](../s/stock.md), a basket of [stocks](../s/stock.md), or a broad-based [equity](../e/equity.md) [index](../i/index.md) like the S&P 500. +This [leg](../l/leg.md) is linked to the performance of an [equity](../e/equity.md) [asset](../a/asset.md) or [equity](../e/equity.md) [index](../i/index_instrument.md). The total returns from this [equity](../e/equity.md) [asset](../a/asset.md) or [index](../i/index_instrument.md), including both dividends and [capital](../c/capital.md) gains or losses, are paid by one party to the other. The [equity](../e/equity.md) [asset](../a/asset.md) can be specific [stocks](../s/stock.md), a basket of [stocks](../s/stock.md), or a broad-based [equity](../e/equity.md) [index](../i/index_instrument.md) like the S&P 500. ### Leg 2: Interest Leg @@ -32,15 +32,15 @@ There are several types of [equity](../e/equity.md) swaps, each catering to vari ### Total Return Swap -In a [total return swap](../t/total_return_swap.md), one party agrees to pay the [total return](../t/total_return.md) of the [equity](../e/equity.md) [asset](../a/asset.md) or [index](../i/index.md), including any dividends and [capital](../c/capital.md) appreciation, to the [counterparty](../c/counterparty.md). In [return](../r/return.md), the [counterparty](../c/counterparty.md) makes periodic fixed or floating [interest](../i/interest.md) payments. This type of [swap](../s/swap.md) allows one party to [gain](../g/gain.md) exposure to the [equity](../e/equity.md) [asset](../a/asset.md)'s performance without actually owning it. +In a [total return swap](../t/total_return_swap.md), one party agrees to pay the [total return](../t/total_return.md) of the [equity](../e/equity.md) [asset](../a/asset.md) or [index](../i/index_instrument.md), including any dividends and [capital](../c/capital.md) appreciation, to the [counterparty](../c/counterparty.md). In [return](../r/return.md), the [counterparty](../c/counterparty.md) makes periodic fixed or floating [interest](../i/interest.md) payments. This type of [swap](../s/swap.md) allows one party to [gain](../g/gain.md) exposure to the [equity](../e/equity.md) [asset](../a/asset.md)'s performance without actually owning it. ### Price Return Swap -Similar to a [total return swap](../t/total_return_swap.md), but the [payment](../p/payment.md) from the [equity](../e/equity.md) [leg](../l/leg.md) is based only on the price movement ([capital gain](../c/capital_gain.md) or loss) of the [equity](../e/equity.md) [asset](../a/asset.md) or [index](../i/index.md). Dividends are not considered in this structure. This [swap](../s/swap.md) is beneficial for parties interested solely in the price performance of the [equity](../e/equity.md) [asset](../a/asset.md). +Similar to a [total return swap](../t/total_return_swap.md), but the [payment](../p/payment.md) from the [equity](../e/equity.md) [leg](../l/leg.md) is based only on the price movement ([capital gain](../c/capital_gain.md) or loss) of the [equity](../e/equity.md) [asset](../a/asset.md) or [index](../i/index_instrument.md). Dividends are not considered in this structure. This [swap](../s/swap.md) is beneficial for parties interested solely in the price performance of the [equity](../e/equity.md) [asset](../a/asset.md). ### Dividend Swap -In a [dividend](../d/dividend.md) [swap](../s/swap.md), the exchanged payments are based on the dividends paid by an [equity](../e/equity.md) [asset](../a/asset.md) or [index](../i/index.md). One party pays the other an amount equivalent to the dividends received from holding the [underlying](../u/underlying.md) [equity](../e/equity.md) instruments, and in [return](../r/return.md), the [counterparty](../c/counterparty.md) pays an [interest rate](../i/interest_rate.md) based on the notional [principal](../p/principal.md). +In a [dividend](../d/dividend.md) [swap](../s/swap.md), the exchanged payments are based on the dividends paid by an [equity](../e/equity.md) [asset](../a/asset.md) or [index](../i/index_instrument.md). One party pays the other an amount equivalent to the dividends received from holding the [underlying](../u/underlying.md) [equity](../e/equity.md) instruments, and in [return](../r/return.md), the [counterparty](../c/counterparty.md) pays an [interest rate](../i/interest_rate.md) based on the notional [principal](../p/principal.md). ## Applications of Equity Swaps @@ -72,7 +72,7 @@ Despite their advantages, [equity](../e/equity.md) swaps come with a set of risk ### Market Risk -The [value](../v/value.md) of the [equity](../e/equity.md) [leg](../l/leg.md) in an [equity](../e/equity.md) [swap](../s/swap.md) is inherently tied to the performance of the [underlying](../u/underlying.md) [equity](../e/equity.md) [asset](../a/asset.md) or [index](../i/index.md). This exposure introduces [market risk](../m/market_risk.md), as unfavorable movements in the [equity market](../e/equity_market.md) can result in significant financial losses. +The [value](../v/value.md) of the [equity](../e/equity.md) [leg](../l/leg.md) in an [equity](../e/equity.md) [swap](../s/swap.md) is inherently tied to the performance of the [underlying](../u/underlying.md) [equity](../e/equity.md) [asset](../a/asset.md) or [index](../i/index_instrument.md). This exposure introduces [market risk](../m/market_risk.md), as unfavorable movements in the [equity market](../e/equity_market.md) can result in significant financial losses. ### Liquidity Risk diff --git a/en/pedia/e/esg_investing.md b/en/pedia/e/esg_investing.md index c49d949d..096b232c 100644 --- a/en/pedia/e/esg_investing.md +++ b/en/pedia/e/esg_investing.md @@ -49,7 +49,7 @@ The rise of ESG [investing](../i/investing.md) has led to the development of ESG - **MSCI ESG Ratings**: Provides metrics on companies’ exposures to and management of ESG risks and opportunities [MSCI](https://www.msci.com/our-solutions/esg-investing). - **Sustainalytics**: Offers ESG [risk](../r/risk.md) ratings to measure company exposure to [industry](../i/industry.md)-specific material ESG risks [Sustainalytics](https://www.sustainalytics.com/). -- **[FTSE Russell](../f/ftse_russell.md) (FTSE4Good)**: An [index](../i/index.md) series that measures the performance of companies demonstrating strong ESG practices [FTSE Russell](https://www.ftserussell.com/). +- **[FTSE Russell](../f/ftse_russell.md) (FTSE4Good)**: An [index](../i/index_instrument.md) series that measures the performance of companies demonstrating strong ESG practices [FTSE Russell](https://www.ftserussell.com/). - **ISS ESG**: Delivers ESG ratings, and governance quality scores [ISS ESG](https://www.issgovernance.com/esg/). - **[Bloomberg](../b/bloomberg.md) ESG Data**: Provides ESG data, scores, and benchmarking [Bloomberg](https://www.bloomberg.com/professional/solution/esg-data/). diff --git a/en/pedia/e/euro_overnight_index_average_(eonia).md b/en/pedia/e/euro_overnight_index_average_(eonia).md index 09ac2566..d080d029 100644 --- a/en/pedia/e/euro_overnight_index_average_(eonia).md +++ b/en/pedia/e/euro_overnight_index_average_(eonia).md @@ -1,6 +1,6 @@ # Euro Overnight Index Average (Eonia) -The [Euro](../e/euro.md) Overnight [Index](../i/index.md) Average, commonly known as Eonia, is a measure of the effective [interest rate](../i/interest_rate.md) in the European interbank lending [market](../m/market.md). Calculated by the European Central [Bank](../b/bank.md) (ECB), it represents the [weighted average](../w/weighted_average.md) of all overnight unsecured lending transactions initiated within the Eurosystem by banks. Eonia is pivotal for various financial products and serves as a [reference rate](../r/reference_rate.md) within the broader [financial system](../f/financial_system.md), particularly in the context of monetary policies implemented by the European Central [Bank](../b/bank.md). +The [Euro](../e/euro.md) Overnight [Index](../i/index_instrument.md) Average, commonly known as Eonia, is a measure of the effective [interest rate](../i/interest_rate.md) in the European interbank lending [market](../m/market.md). Calculated by the European Central [Bank](../b/bank.md) (ECB), it represents the [weighted average](../w/weighted_average.md) of all overnight unsecured lending transactions initiated within the Eurosystem by banks. Eonia is pivotal for various financial products and serves as a [reference rate](../r/reference_rate.md) within the broader [financial system](../f/financial_system.md), particularly in the context of monetary policies implemented by the European Central [Bank](../b/bank.md). ## Historical Context diff --git a/en/pedia/e/euronext.md b/en/pedia/e/euronext.md index 3dd43154..ad8e4e6e 100644 --- a/en/pedia/e/euronext.md +++ b/en/pedia/e/euronext.md @@ -74,9 +74,9 @@ As a licensed [exchange](../e/exchange.md) operator, Euronext adheres to stringe ## Euronext Indices Euronext operates several key stock indices that serve as benchmarks for various [market](../m/market.md) segments: -- **AEX (Amsterdam [Exchange](../e/exchange.md) [Index](../i/index.md)):** Tracks the performance of the 25 largest companies [listed](../l/listed.md) on [Euronext Amsterdam](../e/euronext_amsterdam.md). +- **AEX (Amsterdam [Exchange](../e/exchange.md) [Index](../i/index_instrument.md)):** Tracks the performance of the 25 largest companies [listed](../l/listed.md) on [Euronext Amsterdam](../e/euronext_amsterdam.md). - **BEL 20:** Comprises the 20 largest companies [listed](../l/listed.md) on [Euronext Brussels](../e/euronext_brussels.md). -- **CAC 40:** The flagship [index](../i/index.md) for [Euronext Paris](../e/euronext_paris.md), comprising 40 major companies. +- **CAC 40:** The flagship [index](../i/index_instrument.md) for [Euronext Paris](../e/euronext_paris.md), comprising 40 major companies. - **ISEQ 20:** Monitor the performance of the top 20 Irish [stocks](../s/stock.md) on [Euronext Dublin](../e/euronext_dublin.md). ## Impact on the Global Financial Market diff --git a/en/pedia/e/euronext_brussels.md b/en/pedia/e/euronext_brussels.md index 246fdb5e..9a421b1d 100644 --- a/en/pedia/e/euronext_brussels.md +++ b/en/pedia/e/euronext_brussels.md @@ -79,7 +79,7 @@ To gauge the performance and significance of [Euronext](../e/euronext.md) Brusse 1. **[Market Capitalization](../m/market_capitalization.md)**: As of the latest data, [Euronext](../e/euronext.md) Brussels has a [market capitalization](../m/market_capitalization.md) of over €300 billion. 2. **Trading [Volume](../v/volume.md)**: The average daily trading [volume](../v/volume.md) on [Euronext](../e/euronext.md) Brussels stands at approximately €1 billion. 3. **Number of [Listed](../l/listed.md) Companies**: Over 200 companies are [listed](../l/listed.md) on [Euronext](../e/euronext.md) Brussels, spanning various sectors including [finance](../f/finance.md), technology, healthcare, and [consumer goods](../c/consumer_goods.md). -4. **[Index](../i/index.md) Performance**: The BEL 20 [index](../i/index.md), the [benchmark](../b/benchmark.md) [index](../i/index.md) of [Euronext](../e/euronext.md) Brussels, tracks the performance of the top 20 companies by [market capitalization](../m/market_capitalization.md). +4. **[Index](../i/index_instrument.md) Performance**: The BEL 20 [index](../i/index_instrument.md), the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) of [Euronext](../e/euronext.md) Brussels, tracks the performance of the top 20 companies by [market capitalization](../m/market_capitalization.md). ## Protocols for Algorithmic Trading diff --git a/en/pedia/e/euronext_lisbon.md b/en/pedia/e/euronext_lisbon.md index a5398764..dd709ff5 100644 --- a/en/pedia/e/euronext_lisbon.md +++ b/en/pedia/e/euronext_lisbon.md @@ -10,7 +10,7 @@ ### Equities -Equities [listed](../l/listed.md) on [Euronext](../e/euronext.md) Lisbon include [shares](../s/shares.md) of Portugal's largest and most influential companies across various sectors such as banking, energy, telecommunications, and [consumer goods](../c/consumer_goods.md). One of the most notable indices tracking the performance of [listed](../l/listed.md) companies is the PSI 20 [Index](../i/index.md), which includes 20 of the most [liquid](../l/liquid.md) and largest [stocks](../s/stock.md) on the [exchange](../e/exchange.md). +Equities [listed](../l/listed.md) on [Euronext](../e/euronext.md) Lisbon include [shares](../s/shares.md) of Portugal's largest and most influential companies across various sectors such as banking, energy, telecommunications, and [consumer goods](../c/consumer_goods.md). One of the most notable indices tracking the performance of [listed](../l/listed.md) companies is the PSI 20 [Index](../i/index_instrument.md), which includes 20 of the most [liquid](../l/liquid.md) and largest [stocks](../s/stock.md) on the [exchange](../e/exchange.md). ### Bonds diff --git a/en/pedia/e/euronext_paris.md b/en/pedia/e/euronext_paris.md index d6c734f6..1229c97a 100644 --- a/en/pedia/e/euronext_paris.md +++ b/en/pedia/e/euronext_paris.md @@ -22,7 +22,7 @@ In the late 20th century, the Paris Bourse underwent a significant [merger](../m The equities segment is the most prominent [market segment](../m/market_segment.md) within [Euronext](../e/euronext.md) Paris. Companies [listed](../l/listed.md) here [range](../r/range.md) from small and medium-sized enterprises (SMEs) to large multinational corporations. Notable indices in this segment include the CAC 40, which comprises 40 of the largest companies by [market capitalization](../m/market_capitalization.md) in France. -The CAC 40 is often used as a bellwether for the French [economy](../e/economy.md) and is followed closely by investors and analysts. The [index](../i/index.md) covers a wide [range](../r/range.md) of sectors including technology, [finance](../f/finance.md), healthcare, and [consumer goods](../c/consumer_goods.md), providing a comprehensive overview of the French [business](../b/business.md) landscape. +The CAC 40 is often used as a bellwether for the French [economy](../e/economy.md) and is followed closely by investors and analysts. The [index](../i/index_instrument.md) covers a wide [range](../r/range.md) of sectors including technology, [finance](../f/finance.md), healthcare, and [consumer goods](../c/consumer_goods.md), providing a comprehensive overview of the French [business](../b/business.md) landscape. #### Bonds diff --git a/en/pedia/e/evening_star.md b/en/pedia/e/evening_star.md index c6c1da49..ff5fcd9a 100644 --- a/en/pedia/e/evening_star.md +++ b/en/pedia/e/evening_star.md @@ -49,7 +49,7 @@ Effective [risk management](../r/risk_management.md) involves: To enhance the reliability of an Evening Star pattern, it is often used in conjunction with other [technical indicators](../t/technical_indicator.md): - **Moving Averages:** To observe the [trend](../t/trend.md) direction. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** To determine [overbought](../o/overbought.md) conditions that may precede a [reversal](../r/reversal.md). +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** To determine [overbought](../o/overbought.md) conditions that may precede a [reversal](../r/reversal.md). - **[Volume Analysis](../v/volume_analysis.md):** Increased [volume](../v/volume.md) on the third [candlestick](../c/candlestick.md) can confirm the strength of the [reversal](../r/reversal.md). ## Algorithmic Trading Applications @@ -98,7 +98,7 @@ data = pd.read_csv('historical_price_data.csv') pattern_index = is_evening_star(data) if pattern_index != -1: - print(f"Evening Star pattern detected at [index](../i/index.md) {pattern_index}") + print(f"Evening Star pattern detected at [index](../i/index_instrument.md) {pattern_index}") ``` ### Using Financial Market Data Providers diff --git a/en/pedia/e/event-triggered_algorithms.md b/en/pedia/e/event-triggered_algorithms.md index 1a4a7b8f..f4a8290b 100644 --- a/en/pedia/e/event-triggered_algorithms.md +++ b/en/pedia/e/event-triggered_algorithms.md @@ -47,7 +47,7 @@ Event-triggered algorithms can be employed for a variety of [trading strategies] Analyzing [social media sentiment](../s/social_media_sentiment.md) and trading accordingly. For example, if [sentiment analysis](../s/sentiment_analysis.md) indicates increased positivity around a stock, the algorithm could take a long position. 3. **[Arbitrage](../a/arbitrage.md):** - Identifying and exploiting price discrepancies between related financial instruments triggered by events. For example, a geopolitical event might cause a temporary mismatch between [futures](../f/futures.md) prices and the [underlying](../u/underlying.md) [index](../i/index.md), presenting an [arbitrage](../a/arbitrage.md) opportunity. + Identifying and exploiting price discrepancies between related financial instruments triggered by events. For example, a geopolitical event might cause a temporary mismatch between [futures](../f/futures.md) prices and the [underlying](../u/underlying.md) [index](../i/index_instrument.md), presenting an [arbitrage](../a/arbitrage.md) opportunity. 4. **[Risk Management](../r/risk_management.md):** [Hedging exposure](../h/hedging_exposure.md) based on potential risks identified through event-triggered algorithms. A sudden political event that increases [market](../m/market.md) [volatility](../v/volatility.md) might trigger defensive positions to protect the portfolio. diff --git a/en/pedia/e/ex-ante_risk_measures.md b/en/pedia/e/ex-ante_risk_measures.md index 54ae9b03..a468f33b 100644 --- a/en/pedia/e/ex-ante_risk_measures.md +++ b/en/pedia/e/ex-ante_risk_measures.md @@ -34,7 +34,7 @@ Also known as Expected [Shortfall](../s/shortfall.md), CVaR addresses some of th #### 3. Tracking Error -[Tracking Error](../t/tracking_error.md) measures the [standard deviation](../s/standard_deviation.md) of the differences in returns between a portfolio and a [benchmark](../b/benchmark.md) [index](../i/index.md). It is used to assess how well a portfolio follows the performance of its [benchmark](../b/benchmark.md). +[Tracking Error](../t/tracking_error.md) measures the [standard deviation](../s/standard_deviation.md) of the differences in returns between a portfolio and a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). It is used to assess how well a portfolio follows the performance of its [benchmark](../b/benchmark.md). - **Formula:** \[ diff --git a/en/pedia/e/excess_return.md b/en/pedia/e/excess_return.md index eada7fb9..5fc62336 100644 --- a/en/pedia/e/excess_return.md +++ b/en/pedia/e/excess_return.md @@ -10,7 +10,7 @@ Excess [return](../r/return.md) can be formally defined as follows: where \( R_i \) is the [return](../r/return.md) of the investment or portfolio, and \( R_b \) is the [return](../r/return.md) of the [benchmark](../b/benchmark.md) or [risk](../r/risk.md)-free rate. -In most practical scenarios, the [benchmark](../b/benchmark.md) is typically an [index](../i/index.md) that represents the [market](../m/market.md) or a specific segment of it, such as the S&P 500 or a sectoral [index](../i/index.md). The [risk](../r/risk.md)-free rate often used in calculations is the [yield](../y/yield.md) on government securities, like [U.S. Treasury](../u/u.s._treasury.md) bonds. +In most practical scenarios, the [benchmark](../b/benchmark.md) is typically an [index](../i/index_instrument.md) that represents the [market](../m/market.md) or a specific segment of it, such as the S&P 500 or a sectoral [index](../i/index_instrument.md). The [risk](../r/risk.md)-free rate often used in calculations is the [yield](../y/yield.md) on government securities, like [U.S. Treasury](../u/u.s._treasury.md) bonds. ## Importance diff --git a/en/pedia/e/excess_return_analysis.md b/en/pedia/e/excess_return_analysis.md index 5edac99c..780c5753 100644 --- a/en/pedia/e/excess_return_analysis.md +++ b/en/pedia/e/excess_return_analysis.md @@ -8,7 +8,7 @@ ### Definition -[Excess return](../e/excess_return.md) is the [return](../r/return.md) on an investment minus the [return](../r/return.md) on a [benchmark](../b/benchmark.md) [index](../i/index.md) or the [risk](../r/risk.md)-free rate. While the [absolute return](../a/absolute_return.md) of an investment indicates its overall [gain](../g/gain.md) or loss, the [excess return](../e/excess_return.md) focuses on the additional performance that isn't attributed to normal [market](../m/market.md) fluctuations. +[Excess return](../e/excess_return.md) is the [return](../r/return.md) on an investment minus the [return](../r/return.md) on a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) or the [risk](../r/risk.md)-free rate. While the [absolute return](../a/absolute_return.md) of an investment indicates its overall [gain](../g/gain.md) or loss, the [excess return](../e/excess_return.md) focuses on the additional performance that isn't attributed to normal [market](../m/market.md) fluctuations. ### Calculation @@ -18,7 +18,7 @@ If using a [risk](../r/risk.md)-free rate, the formula tweaks to: \[ \text{[Excess Return](../e/excess_return.md)} = \text{Investment [Return](../r/return.md)} - \text{[Risk](../r/risk.md)-Free Rate} \] -For example, if an investment returned 10% over a period and the [benchmark](../b/benchmark.md) [index](../i/index.md) returned 7% during the same period, the [excess return](../e/excess_return.md) is 10% - 7% = 3%. +For example, if an investment returned 10% over a period and the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) returned 7% during the same period, the [excess return](../e/excess_return.md) is 10% - 7% = 3%. ### Importance in Algorthmic Trading @@ -34,7 +34,7 @@ For example, if an investment returned 10% over a period and the [benchmark](../ ### Common Benchmarks -1. **[Stock Market](../s/stock_market.md) Indices**: Indices like the S&P 500, [NASDAQ](../n/nasdaq.md), or Russell 2000 are commonly used. Each [index](../i/index.md) reflects trends and movements within specific [market](../m/market.md) segments. +1. **[Stock Market](../s/stock_market.md) Indices**: Indices like the S&P 500, [NASDAQ](../n/nasdaq.md), or Russell 2000 are commonly used. Each [index](../i/index_instrument.md) reflects trends and movements within specific [market](../m/market.md) segments. 2. **[Sector Indices](../s/sector_indices.md)**: For strategies focused on specific sectors (e.g., technology, healthcare), sector-specific indices [offer](../o/offer.md) more precise benchmarking. 3. **Custom Benchmarks**: In some cases, a custom [benchmark](../b/benchmark.md) that closely aligns with the strategy's objectives and [risk](../r/risk.md) profile may be used. diff --git a/en/pedia/e/exchange-traded_fund_(etf).md b/en/pedia/e/exchange-traded_fund_(etf).md index 66d57e65..5ff21d79 100644 --- a/en/pedia/e/exchange-traded_fund_(etf).md +++ b/en/pedia/e/exchange-traded_fund_(etf).md @@ -42,7 +42,7 @@ The creation and [redemption](../r/redemption.md) process enables an [arbitrage] ### Inverse and Leveraged ETFs -[Inverse ETFs](../i/inverse_etfs.md) are designed to [profit](../p/profit.md) from a decline in the [value](../v/value.md) of the [underlying](../u/underlying.md) [benchmark](../b/benchmark.md). [Leveraged ETFs](../l/leveraged_etfs.md) use [financial derivatives](../f/financial_derivatives.md) and [debt](../d/debt.md) to amplify the returns of the [underlying](../u/underlying.md) [index](../i/index.md) or [asset](../a/asset.md). +[Inverse ETFs](../i/inverse_etfs.md) are designed to [profit](../p/profit.md) from a decline in the [value](../v/value.md) of the [underlying](../u/underlying.md) [benchmark](../b/benchmark.md). [Leveraged ETFs](../l/leveraged_etfs.md) use [financial derivatives](../f/financial_derivatives.md) and [debt](../d/debt.md) to amplify the returns of the [underlying](../u/underlying.md) [index](../i/index_instrument.md) or [asset](../a/asset.md). ## Advantages of ETFs @@ -74,7 +74,7 @@ Some ETFs, particularly leveraged and [inverse ETFs](../i/inverse_etfs.md), can ### Tracking Errors -ETFs may not perfectly replicate the performance of the [underlying](../u/underlying.md) [index](../i/index.md), leading to tracking errors. This can result from factors such as management fees, [trading costs](../t/trading_costs.md), and imperfect replication strategies. +ETFs may not perfectly replicate the performance of the [underlying](../u/underlying.md) [index](../i/index_instrument.md), leading to tracking errors. This can result from factors such as management fees, [trading costs](../t/trading_costs.md), and imperfect replication strategies. ## Popular ETF Providers @@ -84,7 +84,7 @@ Managed by BlackRock, [iShares](../i/ishares.md) offers a wide [range](../r/rang ### Vanguard -Vanguard is another major player in the ETF [market](../m/market.md), known for its low-cost [index](../i/index.md) funds and ETFs. Their ETFs cover a broad spectrum of [asset](../a/asset.md) classes and investment strategies. [Vanguard Website](https://www.vanguard.com) +Vanguard is another major player in the ETF [market](../m/market.md), known for its low-cost [index](../i/index_instrument.md) funds and ETFs. Their ETFs cover a broad spectrum of [asset](../a/asset.md) classes and investment strategies. [Vanguard Website](https://www.vanguard.com) ### SPDR diff --git a/en/pedia/e/exchange-traded_funds_(etfs).md b/en/pedia/e/exchange-traded_funds_(etfs).md index 1f17a85d..8a8e69dd 100644 --- a/en/pedia/e/exchange-traded_funds_(etfs).md +++ b/en/pedia/e/exchange-traded_funds_(etfs).md @@ -2,12 +2,12 @@ [Exchange](../e/exchange.md)-Traded Funds (ETFs) are investment funds that are traded on stock exchanges, much like [stocks](../s/stock.md). An ETF holds assets such as [stocks](../s/stock.md), commodities, or bonds and generally operates with an [arbitrage](../a/arbitrage.md) mechanism designed to keep it trading close to its net [asset](../a/asset.md) [value](../v/value.md), although deviations can occasionally occur. -ETFs are a popular choice among investors due to their flexibility, [liquidity](../l/liquidity.md), and low costs. They are usually constructed to track an [index](../i/index.md), such as the S&P 500, and provide investors with a way to earn returns similar to the performance of the [index](../i/index.md) without having to buy each individual stock within the [index](../i/index.md). +ETFs are a popular choice among investors due to their flexibility, [liquidity](../l/liquidity.md), and low costs. They are usually constructed to track an [index](../i/index_instrument.md), such as the S&P 500, and provide investors with a way to earn returns similar to the performance of the [index](../i/index_instrument.md) without having to buy each individual stock within the [index](../i/index_instrument.md). ## Structure and Types of ETFs ### Equity ETFs -[Equity](../e/equity.md) ETFs track a specific [index](../i/index.md) or sector of the [market](../m/market.md), such as technology, healthcare, or energy. They can be broad [market](../m/market.md) ETFs or sector-specific. Examples include the SPDR S&P 500 ETF (SPY) and the Technology Select Sector SPDR [Fund](../f/fund.md) (XLK). +[Equity](../e/equity.md) ETFs track a specific [index](../i/index_instrument.md) or sector of the [market](../m/market.md), such as technology, healthcare, or energy. They can be broad [market](../m/market.md) ETFs or sector-specific. Examples include the SPDR S&P 500 ETF (SPY) and the Technology Select Sector SPDR [Fund](../f/fund.md) (XLK). ### Fixed-Income ETFs Fixed-[income](../i/income.md) ETFs invest in bonds or other [debt](../d/debt.md) instruments. They can focus on government, municipal, corporate, or high-[yield](../y/yield.md) bonds. Examples include the [iShares](../i/ishares.md) [U.S. Treasury](../u/u.s._treasury.md) [Bond ETF](../b/bond_etf.md) (GOVT) and the Vanguard Total [Bond Market](../b/bond_market.md) ETF (BND). @@ -16,7 +16,7 @@ Fixed-[income](../i/income.md) ETFs invest in bonds or other [debt](../d/debt.md [Commodity](../c/commodity.md) ETFs invest in physical commodities like gold, silver, oil, or agricultural products. Notable examples include the SPDR Gold [Shares](../s/shares.md) (GLD) and the United States Oil [Fund](../f/fund.md) (USO). ### Inverse and Leveraged ETFs -[Inverse ETFs](../i/inverse_etfs.md) are designed to [profit](../p/profit.md) from a decline in the [value](../v/value.md) of the [underlying](../u/underlying.md) [index](../i/index.md) or [asset](../a/asset.md). [Leveraged ETFs](../l/leveraged_etfs.md) aim to deliver multiples of the performance of the [index](../i/index.md) they track, both on the [upside](../u/upside.md) and downside. Examples include the ProShares UltraPro Short S&P 500 ETF (SPXU) and the Direxion Daily Financial [Bull](../b/bull.md) 3x [Shares](../s/shares.md) (FAS). +[Inverse ETFs](../i/inverse_etfs.md) are designed to [profit](../p/profit.md) from a decline in the [value](../v/value.md) of the [underlying](../u/underlying.md) [index](../i/index_instrument.md) or [asset](../a/asset.md). [Leveraged ETFs](../l/leveraged_etfs.md) aim to deliver multiples of the performance of the [index](../i/index_instrument.md) they track, both on the [upside](../u/upside.md) and downside. Examples include the ProShares UltraPro Short S&P 500 ETF (SPXU) and the Direxion Daily Financial [Bull](../b/bull.md) 3x [Shares](../s/shares.md) (FAS). ### International ETFs International ETFs provide exposure to foreign markets and can be segmented by region (e.g., Europe, Asia) or by country. Examples include the [iShares](../i/ishares.md) MSCI Emerging Markets ETF (EEM) and the Vanguard FTSE Europe ETF (VGK). @@ -35,13 +35,13 @@ ETFs typically distribute dividends received from their [underlying](../u/underl ## Advantages of ETFs ### Diversification -ETFs provide investors with access to a diversified portfolio of securities, which can help reduce [risk](../r/risk.md) compared to [investing](../i/investing.md) in individual [stocks](../s/stock.md) or bonds. By tracking an [index](../i/index.md), ETFs enable investors to [gain](../g/gain.md) exposure to a broader [market](../m/market.md) or specific sectors with a single investment. +ETFs provide investors with access to a diversified portfolio of securities, which can help reduce [risk](../r/risk.md) compared to [investing](../i/investing.md) in individual [stocks](../s/stock.md) or bonds. By tracking an [index](../i/index_instrument.md), ETFs enable investors to [gain](../g/gain.md) exposure to a broader [market](../m/market.md) or specific sectors with a single investment. ### Liquidity ETFs [trade](../t/trade.md) on exchanges throughout the trading day at [market](../m/market.md) prices, providing investors with the ability to buy and sell [shares](../s/shares.md) with ease. This [liquidity](../l/liquidity.md) makes it simpler to enter and exit positions compared to mutual funds, which are priced only at the end of the trading day. ### Cost Efficiency -ETFs typically have lower [expense](../e/expense.md) ratios compared to mutual funds because they are passively managed, tracking an [index](../i/index.md) rather than relying on [active management](../a/active_management.md). This cost-[efficiency](../e/efficiency.md) can result in higher net returns for investors over time. +ETFs typically have lower [expense](../e/expense.md) ratios compared to mutual funds because they are passively managed, tracking an [index](../i/index_instrument.md) rather than relying on [active management](../a/active_management.md). This cost-[efficiency](../e/efficiency.md) can result in higher net returns for investors over time. ### Transparency ETFs are generally required to disclose their [holdings](../h/holdings.md) on a daily [basis](../b/basis.md), providing investors with a clear view of the [fund](../f/fund.md)'s investments. This [transparency](../t/transparency.md) can help investors make more informed decisions. @@ -58,7 +58,7 @@ ETFs [offer](../o/offer.md) flexibility in terms of investment strategies. Inves Like all investments, ETFs are subject to [market risk](../m/market_risk.md). The [value](../v/value.md) of an ETF can fluctuate based on the performance of its [underlying](../u/underlying.md) assets. Investors should be prepared for potential losses, especially in volatile markets. ### Tracking Error -[Tracking error](../t/tracking_error.md) refers to the discrepancy between the ETF's performance and the performance of the [index](../i/index.md) it aims to track. Factors contributing to [tracking error](../t/tracking_error.md) include management fees, [trading costs](../t/trading_costs.md), and imperfect replication of the [index](../i/index.md). +[Tracking error](../t/tracking_error.md) refers to the discrepancy between the ETF's performance and the performance of the [index](../i/index_instrument.md) it aims to track. Factors contributing to [tracking error](../t/tracking_error.md) include management fees, [trading costs](../t/trading_costs.md), and imperfect replication of the [index](../i/index_instrument.md). ### Liquidity Risk While many ETFs are highly [liquid](../l/liquid.md), some ETFs, especially those that invest in less [liquid](../l/liquid.md) assets, can experience [liquidity risk](../l/liquidity_risk.md). This [risk](../r/risk.md) can manifest in wider [bid](../b/bid.md)-ask [spreads](../s/spreads.md) and increased [trading costs](../t/trading_costs.md) during periods of [market](../m/market.md) stress or [illiquidity](../i/illiquid.md). diff --git a/en/pedia/e/exchange-traded_note_(etn).md b/en/pedia/e/exchange-traded_note_(etn).md index cf3c9810..83f26097 100644 --- a/en/pedia/e/exchange-traded_note_(etn).md +++ b/en/pedia/e/exchange-traded_note_(etn).md @@ -1,20 +1,20 @@ # Exchange-Traded Note (ETN) -An [Exchange](../e/exchange.md)-Traded [Note](../n/note.md) (ETN) is a type of [unsecured debt](../u/unsecured_debt.md) [security](../s/security.md), not unlike a [bond](../b/bond.md), that tracks an [underlying](../u/underlying.md) [index](../i/index.md) of securities and trades on a major [exchange](../e/exchange.md) like a stock. ETNs typically focus on benchmarks that might be difficult or expensive to track directly, such as exotic [equity](../e/equity.md) indexes, commodities, or currencies. ETNs [offer](../o/offer.md) a way for investors to [gain](../g/gain.md) exposure to markets or strategies that might otherwise be hard to access. +An [Exchange](../e/exchange.md)-Traded [Note](../n/note.md) (ETN) is a type of [unsecured debt](../u/unsecured_debt.md) [security](../s/security.md), not unlike a [bond](../b/bond.md), that tracks an [underlying](../u/underlying.md) [index](../i/index_instrument.md) of securities and trades on a major [exchange](../e/exchange.md) like a stock. ETNs typically focus on benchmarks that might be difficult or expensive to track directly, such as exotic [equity](../e/equity.md) indexes, commodities, or currencies. ETNs [offer](../o/offer.md) a way for investors to [gain](../g/gain.md) exposure to markets or strategies that might otherwise be hard to access. ## Key Characteristics of ETNs ### **Unsecured Debt Instrument** -An ETN is an unsecured [debt instrument](../d/debt_instrument.md) issued by financial institutions. Unlike traditional bonds, there is no periodic [interest](../i/interest.md) [payment](../p/payment.md). Instead, the [return](../r/return.md) on the ETN depends on the performance of the [index](../i/index.md) or [benchmark](../b/benchmark.md) it is designed to track. +An ETN is an unsecured [debt instrument](../d/debt_instrument.md) issued by financial institutions. Unlike traditional bonds, there is no periodic [interest](../i/interest.md) [payment](../p/payment.md). Instead, the [return](../r/return.md) on the ETN depends on the performance of the [index](../i/index_instrument.md) or [benchmark](../b/benchmark.md) it is designed to track. ### **Maturity** -ETNs have specified [maturity](../m/maturity.md) dates, often ranging from 10 to 30 years. At [maturity](../m/maturity.md), the [issuer](../i/issuer.md) promises to pay the holder a cash amount that reflects the performance of the [underlying](../u/underlying.md) [index](../i/index.md), minus fees. This condition introduces [issuer](../i/issuer.md) [credit risk](../c/credit_risk.md); if the issuing institution defaults, the ETN holder may suffer losses. +ETNs have specified [maturity](../m/maturity.md) dates, often ranging from 10 to 30 years. At [maturity](../m/maturity.md), the [issuer](../i/issuer.md) promises to pay the holder a cash amount that reflects the performance of the [underlying](../u/underlying.md) [index](../i/index_instrument.md), minus fees. This condition introduces [issuer](../i/issuer.md) [credit risk](../c/credit_risk.md); if the issuing institution defaults, the ETN holder may suffer losses. ### **Tracking an Index** -ETNs are designed to deliver the [return](../r/return.md) of a specific [benchmark](../b/benchmark.md) or [index](../i/index.md). This could be a stock [index](../i/index.md), [bond](../b/bond.md) [index](../i/index.md), [commodity](../c/commodity.md) [index](../i/index.md), or even a [volatility](../v/volatility.md) [index](../i/index.md). The [issuer](../i/issuer.md) might use a variety of strategies to meet this objective, but the details of these strategies are not always disclosed to investors. +ETNs are designed to deliver the [return](../r/return.md) of a specific [benchmark](../b/benchmark.md) or [index](../i/index_instrument.md). This could be a stock [index](../i/index_instrument.md), [bond](../b/bond.md) [index](../i/index_instrument.md), [commodity](../c/commodity.md) [index](../i/index_instrument.md), or even a [volatility](../v/volatility.md) [index](../i/index_instrument.md). The [issuer](../i/issuer.md) might use a variety of strategies to meet this objective, but the details of these strategies are not always disclosed to investors. ### **No Dividends or Interest** -Unlike [exchange](../e/exchange.md)-traded funds (ETFs) that might generate and distribute dividends, ETNs typically do not make any periodic payments. The entire [profit](../p/profit.md) or loss from an ETN comes from the price difference between the purchase price and the [sale](../s/sale.md) price, as well as the [index](../i/index.md)’s performance over time. +Unlike [exchange](../e/exchange.md)-traded funds (ETFs) that might generate and distribute dividends, ETNs typically do not make any periodic payments. The entire [profit](../p/profit.md) or loss from an ETN comes from the price difference between the purchase price and the [sale](../s/sale.md) price, as well as the [index](../i/index_instrument.md)’s performance over time. ### **Tax Efficiency** ETNs are often touted for their tax [efficiency](../e/efficiency.md). Since they do not pay [interest](../i/interest.md) or dividends, investors do not incur annual tax liabilities. [Capital](../c/capital.md) gains [taxes](../t/taxes.md) are payable only upon the selling of the ETN or its [redemption](../r/redemption.md), potentially at lower rates. @@ -28,13 +28,13 @@ ETNs [trade](../t/trade.md) on major stock exchanges, providing [liquidity](../l The most significant [risk](../r/risk.md) associated with ETNs is [credit risk](../c/credit_risk.md). Since ETNs are [unsecured debt](../u/unsecured_debt.md) [obligations](../o/obligation.md), the [investor](../i/investor.md) depends on the [creditworthiness](../c/creditworthiness.md) of the [issuer](../i/issuer.md). If the [issuer](../i/issuer.md) were to face [financial distress](../f/financial_distress.md) or declare [bankruptcy](../b/bankruptcy.md), the [value](../v/value.md) of the ETN could decline significantly, and investors might lose their entire investment. ### **Market Risk** -The [value](../v/value.md) of an ETN is directly linked to the performance of its [underlying](../u/underlying.md) [index](../i/index.md). If the [index](../i/index.md) performs poorly, the [value](../v/value.md) of the ETN [will](../w/will.md) decrease. This exposes investors to the same [market](../m/market.md) risks as if they were directly [investing](../i/investing.md) in the components of the [index](../i/index.md). +The [value](../v/value.md) of an ETN is directly linked to the performance of its [underlying](../u/underlying.md) [index](../i/index_instrument.md). If the [index](../i/index_instrument.md) performs poorly, the [value](../v/value.md) of the ETN [will](../w/will.md) decrease. This exposes investors to the same [market](../m/market.md) risks as if they were directly [investing](../i/investing.md) in the components of the [index](../i/index_instrument.md). ### **Liquidity Risk** Even though ETNs are [listed](../l/listed.md) on exchanges, their [liquidity](../l/liquidity.md) can vary. Low trading volumes can lead to wide [bid](../b/bid.md)-ask [spreads](../s/spreads.md), making it expensive to enter or exit positions. This [liquidity risk](../l/liquidity_risk.md) can be more pronounced when [market](../m/market.md) conditions are volatile. ### **Tracking Error** -ETNs strive to replicate the performance of their respective benchmarks. Nevertheless, various factors, including fees and [market](../m/market.md) conditions, may result in the ETN not perfectly tracking the [index](../i/index.md), leading to potential discrepancies between the ETN's price and the performance of the [underlying](../u/underlying.md) [index](../i/index.md). +ETNs strive to replicate the performance of their respective benchmarks. Nevertheless, various factors, including fees and [market](../m/market.md) conditions, may result in the ETN not perfectly tracking the [index](../i/index_instrument.md), leading to potential discrepancies between the ETN's price and the performance of the [underlying](../u/underlying.md) [index](../i/index_instrument.md). ### **Regulatory Risk** Regulatory changes can affect the [taxation](../t/taxation.md), trading, and issuance of ETNs. For example, changes in tax rules could impact the after-tax returns on investments, while changes in [exchange](../e/exchange.md) [listing requirements](../l/listing_requirements.md) could affect the trading of ETNs. @@ -61,23 +61,23 @@ ETNs [offer](../o/offer.md) several advantages: When considering an investment in ETNs, investors should: - **Evaluate the [Issuer](../i/issuer.md)’s [Credit Risk](../c/credit_risk.md)**: Understanding the financial stability of the issuing institution is crucial. -- **Analyze fees**: ETNs come with various fees that can affect overall returns. Higher fees can erode the benefits of tracking the [underlying](../u/underlying.md) [index](../i/index.md). -- **Understand the [Underlying](../u/underlying.md) [Index](../i/index.md)**: Investors should comprehend what the ETN is tracking, including the components of the [index](../i/index.md) and its potential [volatility](../v/volatility.md). +- **Analyze fees**: ETNs come with various fees that can affect overall returns. Higher fees can erode the benefits of tracking the [underlying](../u/underlying.md) [index](../i/index_instrument.md). +- **Understand the [Underlying](../u/underlying.md) [Index](../i/index_instrument.md)**: Investors should comprehend what the ETN is tracking, including the components of the [index](../i/index_instrument.md) and its potential [volatility](../v/volatility.md). ### **Due Diligence** Before [investing](../i/investing.md), conducting thorough research is vital. This includes: - **Reading the [Prospectus](../p/prospectus.md)**: The [prospectus](../p/prospectus.md) provides detailed information about the ETN, including its objectives, fees, risks, and the [issuer](../i/issuer.md)’s [financial health](../f/financial_health.md). - **Monitoring [Credit](../c/credit.md) Ratings**: Regularly [check](../c/check.md) the [credit](../c/credit.md) ratings of the [issuer](../i/issuer.md). A downgrade in [credit rating](../c/credit_rating.md) can be a warning sign of potential financial issues. -- **Keeping Updated with [Market](../m/market.md) Trends**: Stay abreast of [market](../m/market.md) developments that could impact the performance of the [underlying](../u/underlying.md) [index](../i/index.md) and, consequently, the ETN. +- **Keeping Updated with [Market](../m/market.md) Trends**: Stay abreast of [market](../m/market.md) developments that could impact the performance of the [underlying](../u/underlying.md) [index](../i/index_instrument.md) and, consequently, the ETN. ## Case Studies of ETN Performance ### **Example 1: The iPath S&P 500 VIX Short-Term Futures ETN (VXX)** -This ETN tracks the S&P 500 VIX Short-Term [Futures](../f/futures.md) [Index](../i/index.md) and aims to provide exposure to [volatility](../v/volatility.md) in the S&P 500. Due to its unique structure and exposure, it has become a popular tool for investors looking to [hedge](../h/hedge.md) against [market](../m/market.md) [volatility](../v/volatility.md). However, it is also known for its complexity and potential for large swings in [value](../v/value.md). Over the years, the VXX has been used by sophisticated investors for [short-term trading](../s/short-term_trading.md) rather than long-term investment. +This ETN tracks the S&P 500 VIX Short-Term [Futures](../f/futures.md) [Index](../i/index_instrument.md) and aims to provide exposure to [volatility](../v/volatility.md) in the S&P 500. Due to its unique structure and exposure, it has become a popular tool for investors looking to [hedge](../h/hedge.md) against [market](../m/market.md) [volatility](../v/volatility.md). However, it is also known for its complexity and potential for large swings in [value](../v/value.md). Over the years, the VXX has been used by sophisticated investors for [short-term trading](../s/short-term_trading.md) rather than long-term investment. ### **Example 2: UBS ETRACS Monthly Pay 2x Leveraged Mortgage REIT ETN (MORL)** -MORL aims to track double the monthly performance of the [Market](../m/market.md) Vectors Global [Mortgage](../m/mortgage.md) REITs [Index](../i/index.md). This ETN appeals to investors seeking high [yield](../y/yield.md) through leveraged exposure to [mortgage](../m/mortgage.md) REITs. While it offers high [income](../i/income.md) potential, the [leverage](../l/leverage.md) increases the [risk](../r/risk.md) significantly, making it suitable only for experienced investors. +MORL aims to track double the monthly performance of the [Market](../m/market.md) Vectors Global [Mortgage](../m/mortgage.md) REITs [Index](../i/index_instrument.md). This ETN appeals to investors seeking high [yield](../y/yield.md) through leveraged exposure to [mortgage](../m/mortgage.md) REITs. While it offers high [income](../i/income.md) potential, the [leverage](../l/leverage.md) increases the [risk](../r/risk.md) significantly, making it suitable only for experienced investors. ### **Example 3: Credit Suisse Gold Shares Covered Call ETN (GLDI)** GLDI provides the [return](../r/return.md) of a strategy that holds gold [futures](../f/futures.md) and sells call [options](../o/options.md) on those [futures](../f/futures.md). This [covered call](../c/covered_call.md) strategy is designed to generate additional [income](../i/income.md) from gold [holdings](../h/holdings.md). This ETN is attractive for investors looking for [income](../i/income.md) generation from their investment in gold, albeit at the cost of capping potential [upside](../u/upside.md) gains. diff --git a/en/pedia/e/exchange.md b/en/pedia/e/exchange.md index 17d1a0a6..76d01b63 100644 --- a/en/pedia/e/exchange.md +++ b/en/pedia/e/exchange.md @@ -63,7 +63,7 @@ Physical exchanges have trading floors where traders buy and sell securities in ## Exchange-Traded Funds (ETFs) -ETFs are investment funds traded on exchanges, much like [stocks](../s/stock.md). They [hold](../h/hold.md) assets such as [stocks](../s/stock.md), commodities, or bonds and generally aim to track an [index](../i/index.md). Popular ETF providers include: +ETFs are investment funds traded on exchanges, much like [stocks](../s/stock.md). They [hold](../h/hold.md) assets such as [stocks](../s/stock.md), commodities, or bonds and generally aim to track an [index](../i/index_instrument.md). Popular ETF providers include: - **BlackRock’s [iShares](../i/ishares.md)**: Offers a variety of ETF [options](../o/options.md). [iShares](https://www.ishares.com) - **Vanguard**: Known for its low-cost ETFs. [Vanguard](https://investor.vanguard.com/etf) diff --git a/en/pedia/e/exchange_rate_forecasting.md b/en/pedia/e/exchange_rate_forecasting.md index ae4e8697..ebbd0785 100644 --- a/en/pedia/e/exchange_rate_forecasting.md +++ b/en/pedia/e/exchange_rate_forecasting.md @@ -48,7 +48,7 @@ VAR models capture the dynamic interrelationships among [multiple](../m/multiple [Technical analysis](../t/technical_analysis.md) focuses on historical price and [volume](../v/volume.md) data to predict future [exchange rate](../e/exchange_rate.md) movements. Technical analysts use various tools and techniques, including: - **[Chart Patterns](../c/chart_patterns.md):** Identifying patterns such as head and shoulders, triangles, and flags to forecast price movements. -- **[Technical Indicators](../t/technical_indicators.md):** Utilizing indicators like moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) to analyze [market](../m/market.md) trends and [momentum](../m/momentum.md). +- **[Technical Indicators](../t/technical_indicators.md):** Utilizing indicators like moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) to analyze [market](../m/market.md) trends and [momentum](../m/momentum.md). - **[Trend Analysis](../t/trend_analysis.md):** Analyzing long-term trends and cycles in [exchange rate](../e/exchange_rate.md) data. ### Machine Learning Techniques diff --git a/en/pedia/e/exchange_traded_derivative.md b/en/pedia/e/exchange_traded_derivative.md index 7381c6fa..61b888aa 100644 --- a/en/pedia/e/exchange_traded_derivative.md +++ b/en/pedia/e/exchange_traded_derivative.md @@ -1,6 +1,6 @@ # Exchange Traded Derivative -An [exchange](../e/exchange.md)-traded [derivative](../d/derivative.md) (ETD) is a financial contract traded on a regulated [exchange](../e/exchange.md), where the contracts derive their [value](../v/value.md) from the performance of an [underlying asset](../u/underlying_asset.md), [index](../i/index.md), rate, or another [financial instrument](../f/financial_instrument.md). The structured nature of such contracts and their trading on centralized exchanges [offer](../o/offer.md) several unique benefits, including [transparency](../t/transparency.md), [liquidity](../l/liquidity.md), and reduced [counterparty risk](../c/counterparty_risk.md). +An [exchange](../e/exchange.md)-traded [derivative](../d/derivative.md) (ETD) is a financial contract traded on a regulated [exchange](../e/exchange.md), where the contracts derive their [value](../v/value.md) from the performance of an [underlying asset](../u/underlying_asset.md), [index](../i/index_instrument.md), rate, or another [financial instrument](../f/financial_instrument.md). The structured nature of such contracts and their trading on centralized exchanges [offer](../o/offer.md) several unique benefits, including [transparency](../t/transparency.md), [liquidity](../l/liquidity.md), and reduced [counterparty risk](../c/counterparty_risk.md). ## Overview of Derivatives diff --git a/en/pedia/e/exchange_traded_product_(etp).md b/en/pedia/e/exchange_traded_product_(etp).md index 59de0676..f222e561 100644 --- a/en/pedia/e/exchange_traded_product_(etp).md +++ b/en/pedia/e/exchange_traded_product_(etp).md @@ -12,7 +12,7 @@ Examples of popular ETFs include: - [iShares MSCI Emerging Markets ETF (EEM)](https://www.ishares.com/us/products/239637/) ### Exchange Traded Notes (ETNs) -ETNs are a type of unsecured, [unsubordinated debt](../u/unsubordinated_debt.md) [security](../s/security.md) that tracks an [underlying](../u/underlying.md) [index](../i/index.md) of securities and trades on a major [exchange](../e/exchange.md) like a stock. ETNs are different from ETFs in that they are a type of [bond](../b/bond.md) but [trade](../t/trade.md) like a stock. Investors in ETNs are subject to the [creditworthiness](../c/creditworthiness.md) of the [issuer](../i/issuer.md). +ETNs are a type of unsecured, [unsubordinated debt](../u/unsubordinated_debt.md) [security](../s/security.md) that tracks an [underlying](../u/underlying.md) [index](../i/index_instrument.md) of securities and trades on a major [exchange](../e/exchange.md) like a stock. ETNs are different from ETFs in that they are a type of [bond](../b/bond.md) but [trade](../t/trade.md) like a stock. Investors in ETNs are subject to the [creditworthiness](../c/creditworthiness.md) of the [issuer](../i/issuer.md). Example of popular ETNs include: - [iPath Bloomberg Commodity Index Total Return ETN (DJP)](https://www.barclays.investmentbank.com/products-and-services/investment-solutions/ipath-etns/overview.html) @@ -36,7 +36,7 @@ Examples of popular ETCs include: 1. **[Market Risk](../m/market_risk.md)**: The [value](../v/value.md) of an ETP can fluctuate along with the performance of its [underlying](../u/underlying.md) assets. Investors in ETPs can face significant losses if the [market](../m/market.md) declines. 2. **[Liquidity Risk](../l/liquidity_risk.md)**: While ETPs are generally [liquid](../l/liquid.md), certain ETPs that invest in less [liquid](../l/liquid.md) markets or assets may face [liquidity](../l/liquidity.md) constraints. -3. **[Tracking Error](../t/tracking_error.md)**: The performance of an ETP might not perfectly replicate the performance of its [underlying](../u/underlying.md) [index](../i/index.md) or [asset](../a/asset.md) due to management fees, [market](../m/market.md) conditions, or other factors. +3. **[Tracking Error](../t/tracking_error.md)**: The performance of an ETP might not perfectly replicate the performance of its [underlying](../u/underlying.md) [index](../i/index_instrument.md) or [asset](../a/asset.md) due to management fees, [market](../m/market.md) conditions, or other factors. 4. **[Credit Risk](../c/credit_risk.md)**: ETNs are subject to the [credit risk](../c/credit_risk.md) of the [issuer](../i/issuer.md). If the [issuer](../i/issuer.md) faces financial difficulties, the [value](../v/value.md) of the ETN could be adversely affected. ## Use Cases for ETPs in Algorithimic Trading diff --git a/en/pedia/e/exit_strategy.md b/en/pedia/e/exit_strategy.md index a62c0df0..9d3fbbac 100644 --- a/en/pedia/e/exit_strategy.md +++ b/en/pedia/e/exit_strategy.md @@ -50,7 +50,7 @@ Stop-loss strategies are meant to limit losses by closing positions when the pri - **Moving Average Crossover**: Exiting a position when a short-term moving average crosses a long-term moving average indicating a [trend reversal](../t/trend_reversal.md). -- **RSI Exit**: Using the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) to exit positions when the RSI indicates [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **RSI Exit**: Using the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) to exit positions when the RSI indicates [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. ### 5. **Composite Strategies** diff --git a/en/pedia/e/exogenous_variables_in_trading.md b/en/pedia/e/exogenous_variables_in_trading.md index f023e5a7..ebcb8c04 100644 --- a/en/pedia/e/exogenous_variables_in_trading.md +++ b/en/pedia/e/exogenous_variables_in_trading.md @@ -24,7 +24,7 @@ Various exogenous variables may impact trading decisions, ranging from macroecon 1. **[Interest](../i/interest.md) Rates**: Central [bank](../b/bank.md) decisions on [interest](../i/interest.md) rates can impact [currency](../c/currency.md) values, [bond](../b/bond.md) prices, and [investor](../i/investor.md) sentiment. For instance, an unexpected rate hike by the Federal Reserve can cause significant [market](../m/market.md) movements. -2. **[Inflation](../i/inflation.md) Rates**: Rising [inflation](../i/inflation.md) generally leads to tighter [monetary policy](../m/monetary_policy.md), which can affect [equity](../e/equity.md) and [bond](../b/bond.md) markets. For example, a high Consumer Price [Index](../i/index.md) (CPI) can lead traders to anticipate changes in [inflation](../i/inflation.md)-driven central [bank](../b/bank.md) policies. +2. **[Inflation](../i/inflation.md) Rates**: Rising [inflation](../i/inflation.md) generally leads to tighter [monetary policy](../m/monetary_policy.md), which can affect [equity](../e/equity.md) and [bond](../b/bond.md) markets. For example, a high Consumer Price [Index](../i/index_instrument.md) (CPI) can lead traders to anticipate changes in [inflation](../i/inflation.md)-driven central [bank](../b/bank.md) policies. 3. **GDP [Growth Rates](../g/growth_rates_in_trading.md)**: Strong GDP growth signals a healthy [economy](../e/economy.md), often leading to bullish sentiment in [equity](../e/equity.md) markets. Conversely, negative GDP growth or [recession indicators](../r/recession_indicators.md) can trigger bearish trends. diff --git a/en/pedia/e/expense_ratio.md b/en/pedia/e/expense_ratio.md index b07f1685..392c101e 100644 --- a/en/pedia/e/expense_ratio.md +++ b/en/pedia/e/expense_ratio.md @@ -14,7 +14,7 @@ The [expense](../e/expense.md) ratio is expressed as a percentage of the [fund]( ## Importance in Algorithmic Trading -In the realm of [algorithmic trading](../a/accountability.md), [expense](../e/expense.md) ratios can have a pronounced impact on net returns, particularly for traders involved in high-frequency trading or those who invest in [index](../i/index.md) funds or ETFs as part of their [trading strategy](../t/trading_strategy.md). This is because even small differences in [expense](../e/expense.md) ratios can lead to significant variance in the returns of [high-volume trading strategies](../h/high-volume_trading_strategies.md) over time. +In the realm of [algorithmic trading](../a/accountability.md), [expense](../e/expense.md) ratios can have a pronounced impact on net returns, particularly for traders involved in high-frequency trading or those who invest in [index](../i/index_instrument.md) funds or ETFs as part of their [trading strategy](../t/trading_strategy.md). This is because even small differences in [expense](../e/expense.md) ratios can lead to significant variance in the returns of [high-volume trading strategies](../h/high-volume_trading_strategies.md) over time. ## Calculating the Expense Ratio @@ -65,8 +65,8 @@ Traders engaged in [algorithmic trading](../a/accountability.md) often seek ways 1. **[Expense](../e/expense.md) Monitoring**: Regularly reviewing and comparing the [expense](../e/expense.md) ratios of funds. 2. **[Optimization](../o/optimization.md) Algorithms**: Implementing algorithms that [factor](../f/factor.md) in [expense](../e/expense.md) ratios when selecting funds or ETFs. -3. **Switching to Lower-Cost Alternatives**: Transitioning from high-cost mutual funds to lower-cost ETFs or [index](../i/index.md) funds. -4. **Direct [Indexing](../i/indexing.md)**: Skipping the [fund](../f/fund.md) structure entirely and directly purchasing a portfolio of [stocks](../s/stock.md) to mimic an [index](../i/index.md). +3. **Switching to Lower-Cost Alternatives**: Transitioning from high-cost mutual funds to lower-cost ETFs or [index](../i/index_instrument.md) funds. +4. **Direct [Indexing](../i/indexing.md)**: Skipping the [fund](../f/fund.md) structure entirely and directly purchasing a portfolio of [stocks](../s/stock.md) to mimic an [index](../i/index_instrument.md). ## Historical Trends and Future Outlook @@ -76,7 +76,7 @@ Over the past few decades, a [trend](../t/trend.md) towards lower [expense](../e [Fidelity](https://www.fidelity.com) -In response to [market](../m/market.md) [demand](../d/demand.md) for low-cost investment [options](../o/options.md), Fidelity introduced their Zero-[Fee](../f/fee.md) [Index](../i/index.md) Funds, which aim to attract investors by eliminating [expense](../e/expense.md) ratios altogether. These funds are remarkable in the context of algotrading, as they can significantly reduce operational costs for high-frequency and algorithm-driven [trading strategies](../t/trading_strategies.md). +In response to [market](../m/market.md) [demand](../d/demand.md) for low-cost investment [options](../o/options.md), Fidelity introduced their Zero-[Fee](../f/fee.md) [Index](../i/index_instrument.md) Funds, which aim to attract investors by eliminating [expense](../e/expense.md) ratios altogether. These funds are remarkable in the context of algotrading, as they can significantly reduce operational costs for high-frequency and algorithm-driven [trading strategies](../t/trading_strategies.md). ## Regulatory Aspects diff --git a/en/pedia/e/expense_ratio_analysis.md b/en/pedia/e/expense_ratio_analysis.md index 0cbeee2a..fb4e4f02 100644 --- a/en/pedia/e/expense_ratio_analysis.md +++ b/en/pedia/e/expense_ratio_analysis.md @@ -46,7 +46,7 @@ Total [fund](../f/fund.md) costs include management fees, administrative fees, o #### Real-World Examples and Company Applications -- **Vanguard Group ([Vanguard](https://investor.vanguard.com))** is renowned for its low-cost [index](../i/index.md) funds and ETFs. Vanguard's emphasis on low [expense](../e/expense.md) ratios has made it a favorite among cost-conscious investors. +- **Vanguard Group ([Vanguard](https://investor.vanguard.com))** is renowned for its low-cost [index](../i/index_instrument.md) funds and ETFs. Vanguard's emphasis on low [expense](../e/expense.md) ratios has made it a favorite among cost-conscious investors. - **BlackRock ([BlackRock](https://www.blackrock.com))**, through its [iShares](../i/ishares.md) [product line](../p/product_line.md), offers a wide array of ETFs, many of which have competitively low [expense](../e/expense.md) ratios, appealing to both retail and institutional investors. diff --git a/en/pedia/e/exploratory_data_analysis_(eda).md b/en/pedia/e/exploratory_data_analysis_(eda).md index 17854412..e84f6380 100644 --- a/en/pedia/e/exploratory_data_analysis_(eda).md +++ b/en/pedia/e/exploratory_data_analysis_(eda).md @@ -137,7 +137,7 @@ To illustrate the application of EDA in [algorithmic trading](../a/algorithmic_t ``` 7. **Feature Engineering:** - - Generate new features such as moving averages and RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)). + - Generate new features such as moving averages and RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)). ```python data['50_MA'] = data['Close'].rolling(window=50).mean() data['200_MA'] = data['Close'].rolling(window=200).mean() diff --git a/en/pedia/e/exponential_moving_average_(ema).md b/en/pedia/e/exponential_moving_average_(ema).md index 94d32b64..67c5cd0d 100644 --- a/en/pedia/e/exponential_moving_average_(ema).md +++ b/en/pedia/e/exponential_moving_average_(ema).md @@ -93,7 +93,7 @@ By running this strategy on past [market](../m/market.md) data, traders can eval EMAs are often combined with other [technical indicators](../t/technical_indicators.md) to enhance their predictive power. For example: - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: Consists of two EMAs (usually the 12-day and 26-day EMAs) and a signal line (usually the 9-day EMA of the MACD line). It helps identify potential buy and sell points by analyzing the convergence and [divergence](../d/divergence.md) of the EMAs. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: When combined with an EMA, the RSI can help confirm the strength of a [trend](../t/trend.md) or identify potential [reversal](../r/reversal.md) points. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: When combined with an EMA, the RSI can help confirm the strength of a [trend](../t/trend.md) or identify potential [reversal](../r/reversal.md) points. ### Adaptive EMAs diff --git a/en/pedia/f/factor_timing.md b/en/pedia/f/factor_timing.md index e4a170ba..9dfaa379 100644 --- a/en/pedia/f/factor_timing.md +++ b/en/pedia/f/factor_timing.md @@ -25,7 +25,7 @@ Quality factors assess the [financial health](../f/financial_health.md) of a com [Factor](../f/factor.md) timing strategies often rely on [economic indicators](../e/economic_indicators.md) such as GDP growth, [interest](../i/interest.md) rates, and [inflation](../i/inflation.md). For example, during periods of economic [expansion](../e/expansion.md), [value](../v/value.md) and small-cap [stocks](../s/stock.md) might perform well. Conversely, during recessions, high-quality and low-[volatility](../v/volatility.md) [stocks](../s/stock.md) might be preferable. ### Technical Analysis -[Technical analysis](../t/technical_analysis.md) tools like moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and moving average convergence [divergence](../d/divergence.md) (MACD) can help identify trends and signal optimal times to adjust [factor](../f/factor.md) exposures. For instance, a crossover of a short-term moving average above a long-term moving average might indicate a good time to increase [momentum](../m/momentum.md) exposure. +[Technical analysis](../t/technical_analysis.md) tools like moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and moving average convergence [divergence](../d/divergence.md) (MACD) can help identify trends and signal optimal times to adjust [factor](../f/factor.md) exposures. For instance, a crossover of a short-term moving average above a long-term moving average might indicate a good time to increase [momentum](../m/momentum.md) exposure. ### Machine Learning Machine learning models can analyze large datasets and uncover patterns that traditional methods might miss. Algorithms such as [random forests](../r/random_forests_in_trading.md), [neural networks](../n/neural_networks_in_trading.md), and [support vector machines](../s/support_vector_machines_in_trading.md) can be trained to predict [factor](../f/factor.md) performance based on historical data and other inputs. diff --git a/en/pedia/f/failure_swings.md b/en/pedia/f/failure_swings.md index 2a3e7e3f..16b9f1d8 100644 --- a/en/pedia/f/failure_swings.md +++ b/en/pedia/f/failure_swings.md @@ -1,6 +1,6 @@ # Failure Swings -Failure swings are a crucial concept in [technical analysis](../t/technical_analysis.md), specifically in the context of [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), one of the most widely used indicators in [algorithmic trading](../a/algorithmic_trading.md). Failure swings provide a signal that can indicate the potential [reversal](../r/reversal.md) of a current [trend](../t/trend.md) or the continuation of an existing [trend](../t/trend.md) under certain conditions. This document explores the intricacies of failure swings, their significance in trading, and ways traders can incorporate these signals into [algorithmic trading](../a/algorithmic_trading.md) strategies. +Failure swings are a crucial concept in [technical analysis](../t/technical_analysis.md), specifically in the context of [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), one of the most widely used indicators in [algorithmic trading](../a/algorithmic_trading.md). Failure swings provide a signal that can indicate the potential [reversal](../r/reversal.md) of a current [trend](../t/trend.md) or the continuation of an existing [trend](../t/trend.md) under certain conditions. This document explores the intricacies of failure swings, their significance in trading, and ways traders can incorporate these signals into [algorithmic trading](../a/algorithmic_trading.md) strategies. ## Introduction to Failure Swings @@ -40,7 +40,7 @@ Identifying failure swings requires monitoring RSI movements closely. Traders ne 1. **Observe [Overbought](../o/overbought.md)/[Oversold](../o/oversold.md) Conditions**: Traders first identify if the RSI has breached the standard [overbought](../o/overbought.md) (above 70) or [oversold](../o/oversold.md) (below 30) thresholds. -2. **Track RSI Rebounds and Pullbacks**: Following the initial signal, traders then monitor RSI rebounds or pullbacks to identify if the [index](../i/index.md) halts before re-entering the [overbought](../o/overbought.md) or [oversold](../o/oversold.md) zones. +2. **Track RSI Rebounds and Pullbacks**: Following the initial signal, traders then monitor RSI rebounds or pullbacks to identify if the [index](../i/index_instrument.md) halts before re-entering the [overbought](../o/overbought.md) or [oversold](../o/oversold.md) zones. 3. **Confirmation of Failure Swing**: The move beyond the recent high or low, post the halt, signals a potential failure swing and thus a possible [trend reversal](../t/trend_reversal.md). diff --git a/en/pedia/f/false_breakout.md b/en/pedia/f/false_breakout.md index c6d97438..f0e4fc49 100644 --- a/en/pedia/f/false_breakout.md +++ b/en/pedia/f/false_breakout.md @@ -18,7 +18,7 @@ A false [breakout](../b/breakout.md) occurs when the price of a [financial instr 1. **[Volume Analysis](../v/volume_analysis.md)**: Genuine breakouts are generally accompanied by a significant increase in trading [volume](../v/volume.md). Monitoring [volume](../v/volume.md) can help distinguish true breakouts from false ones. 2. **[Price Action](../p/price_action.md) Confirmation**: Traders often look for confirmation through subsequent price bars or candlesticks. A lack of follow-through in [price action](../p/price_action.md) suggests a false [breakout](../b/breakout.md). -3. **[Technical Indicators](../t/technical_indicators.md)**: Indicators such as [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_bands.md) can provide additional context to identify the sustainability of a [breakout](../b/breakout.md). +3. **[Technical Indicators](../t/technical_indicators.md)**: Indicators such as [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_bands.md) can provide additional context to identify the sustainability of a [breakout](../b/breakout.md). 4. **[Support and Resistance](../s/support_and_resistance.md) Re-Test**: A common technique is to wait for the price to break a level and then retest it as a new support or resistance before taking a position. ### Implications for Trading Strategies diff --git a/en/pedia/f/false_market_signals.md b/en/pedia/f/false_market_signals.md index b28e90ad..0214a330 100644 --- a/en/pedia/f/false_market_signals.md +++ b/en/pedia/f/false_market_signals.md @@ -4,7 +4,7 @@ False [market](../m/market.md) signals, or [false signals](../f/false_signals_in #### Types of Market Signals -1. **[Technical Indicators](../t/technical_indicators.md)**: Utilize past [market](../m/market.md) data, such as price and [volume](../v/volume.md), to forecast future price movements. Common indicators include Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and MACD. +1. **[Technical Indicators](../t/technical_indicators.md)**: Utilize past [market](../m/market.md) data, such as price and [volume](../v/volume.md), to forecast future price movements. Common indicators include Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and MACD. 2. **[Fundamental Analysis](../f/fundamental_analysis.md)**: Relies on [economic indicators](../e/economic_indicators.md), [financial statements](../f/financial_statements.md), and other qualitative data to evaluate an [asset](../a/asset.md)'s [intrinsic value](../i/intrinsic_value.md). 3. **[Quantitative Analysis](../q/quantitative_analysis.md)**: Involves mathematical and statistical models to identify trading opportunities. Algorithms and high-frequency trading (HFT) systems often fall into this category. diff --git a/en/pedia/f/false_signals_in_trading.md b/en/pedia/f/false_signals_in_trading.md index e867211c..6b0146f1 100644 --- a/en/pedia/f/false_signals_in_trading.md +++ b/en/pedia/f/false_signals_in_trading.md @@ -12,7 +12,7 @@ False signals typically manifest when a trading [indicator](../i/indicator.md) s Several sources can generate false signals in trading: -1. **[Technical Indicators](../t/technical_indicators.md)**: Indicators such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) may sometimes give false buy or sell signals, especially in volatile or consolidating markets. +1. **[Technical Indicators](../t/technical_indicators.md)**: Indicators such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) may sometimes give false buy or sell signals, especially in volatile or consolidating markets. 2. **[Market](../m/market.md) [Noise](../n/noise.md)**: Short-term price fluctuations and random [market](../m/market.md) movements can generate misleading signals that do not correlate with long-term trends. diff --git a/en/pedia/f/fear_and_greed_index.md b/en/pedia/f/fear_and_greed_index.md index e435278c..b58b3b1d 100644 --- a/en/pedia/f/fear_and_greed_index.md +++ b/en/pedia/f/fear_and_greed_index.md @@ -2,15 +2,15 @@ ## Introduction -The Fear and Greed [Index](../i/index.md) is a popular financial [indicator](../i/indicator.md) that gauges the prevailing sentiment in the [stock market](../s/stock_market.md). It measures whether investors are more fearful or greedy at any given time, based on various [market](../m/market.md) factors. This [index](../i/index.md) has garnered substantial attention due to its simplicity and effectiveness in providing insights into [market](../m/market.md) conditions and potential turning points. +The Fear and Greed [Index](../i/index_instrument.md) is a popular financial [indicator](../i/indicator.md) that gauges the prevailing sentiment in the [stock market](../s/stock_market.md). It measures whether investors are more fearful or greedy at any given time, based on various [market](../m/market.md) factors. This [index](../i/index_instrument.md) has garnered substantial attention due to its simplicity and effectiveness in providing insights into [market](../m/market.md) conditions and potential turning points. ## Origin and Purpose -The concept of the Fear and Greed [Index](../i/index.md) was popularized by CNNMoney. It aims to simplify the understanding of complex [market dynamics](../m/market_dynamics.md) by translating them into a single number that represents the overall sentiment. The [index](../i/index.md) ranges from 0 to 100, with lower values indicating extreme fear and higher values indicating extreme greed. A [neutral](../n/neutral.md) sentiment is typically represented by a [value](../v/value.md) around 50. +The concept of the Fear and Greed [Index](../i/index_instrument.md) was popularized by CNNMoney. It aims to simplify the understanding of complex [market dynamics](../m/market_dynamics.md) by translating them into a single number that represents the overall sentiment. The [index](../i/index_instrument.md) ranges from 0 to 100, with lower values indicating extreme fear and higher values indicating extreme greed. A [neutral](../n/neutral.md) sentiment is typically represented by a [value](../v/value.md) around 50. ## Components of the Fear and Greed Index -The [index](../i/index.md) is derived from seven different indicators: +The [index](../i/index_instrument.md) is derived from seven different indicators: 1. **Stock [Price Momentum](../p/price_momentum.md) (S&P 500)**: This compares the [stock market](../s/stock_market.md)'s performance against its 125-day average. A higher gap between the current level and the average indicates greed, while a lower gap or negative performance signifies fear. @@ -20,7 +20,7 @@ The [index](../i/index.md) is derived from seven different indicators: 4. **Put and Call [Options](../o/options.md)**: This examines the [volume](../v/volume.md) of [put options](../p/put_options.md) (bets that stock prices [will](../w/will.md) fall) versus call [options](../o/options.md) (bets that stock prices [will](../w/will.md) rise). A higher put [volume](../v/volume.md) signifies fear, whereas a higher call [volume](../v/volume.md) points to greed. -5. **[Market](../m/market.md) [Volatility](../v/volatility.md) (CBOE [Volatility](../v/volatility.md) [Index](../i/index.md) - VIX)**: This [indicator](../i/indicator.md) measures [volatility](../v/volatility.md) expectations. Higher [volatility](../v/volatility.md) is a sign of fear, while lower [volatility](../v/volatility.md) suggests complacency or greed. +5. **[Market](../m/market.md) [Volatility](../v/volatility.md) (CBOE [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) - VIX)**: This [indicator](../i/indicator.md) measures [volatility](../v/volatility.md) expectations. Higher [volatility](../v/volatility.md) is a sign of fear, while lower [volatility](../v/volatility.md) suggests complacency or greed. 6. **[Safe Haven](../s/safe_haven.md) [Demand](../d/demand.md)**: This compares the returns of [stocks](../s/stock.md) versus Treasury bonds. When [stocks](../s/stock.md) are outperforming bonds significantly, it indicates greed, and when bonds are in [demand](../d/demand.md) over [stocks](../s/stock.md), it signifies fear. @@ -28,7 +28,7 @@ The [index](../i/index.md) is derived from seven different indicators: ## Calculation and Interpretation -Each of these indicators contributes to the overall [index](../i/index.md) [value](../v/value.md). The individual components are scaled between 0 and 100, and the aggregate of their values determines the final Fear and Greed [Index](../i/index.md) score. +Each of these indicators contributes to the overall [index](../i/index_instrument.md) [value](../v/value.md). The individual components are scaled between 0 and 100, and the aggregate of their values determines the final Fear and Greed [Index](../i/index_instrument.md) score. - **Extreme Fear (0-24)**: The [market](../m/market.md) is potentially [oversold](../o/oversold.md), and there may be buying opportunities as prices could rebound. - **Fear (25-49)**: Indicating caution, the [market](../m/market.md) may be in a [downtrend](../d/downtrend.md) but not necessarily at its lowest point. @@ -36,43 +36,43 @@ Each of these indicators contributes to the overall [index](../i/index.md) [valu - **Greed (51-74)**: Investors are optimistic, driving prices higher, but there is the potential for overvaluation. - **Extreme Greed (75-100)**: The [market](../m/market.md) may be [overbought](../o/overbought.md), and a [correction](../c/correction.md) could be imminent. -The [index](../i/index.md) is updated daily and reflects the changing sentiments based on the latest data from these seven indicators. +The [index](../i/index_instrument.md) is updated daily and reflects the changing sentiments based on the latest data from these seven indicators. ## Applications of the Fear and Greed Index ### Identifying Market Cycles -The Fear and Greed [Index](../i/index.md) helps investors understand where the [market](../m/market.md) is in its cycle. During times of extreme fear, [stocks](../s/stock.md) may be [undervalued](../u/undervalued.md), presenting buying opportunities. Conversely, during periods of extreme greed, [stocks](../s/stock.md) may be overpriced, and it might be a good time to take profits or [exercise](../e/exercise.md) caution. +The Fear and Greed [Index](../i/index_instrument.md) helps investors understand where the [market](../m/market.md) is in its cycle. During times of extreme fear, [stocks](../s/stock.md) may be [undervalued](../u/undervalued.md), presenting buying opportunities. Conversely, during periods of extreme greed, [stocks](../s/stock.md) may be overpriced, and it might be a good time to take profits or [exercise](../e/exercise.md) caution. ### Risk Management -Investors can use the Fear and Greed [Index](../i/index.md) to manage [risk](../r/risk.md). When the [index](../i/index.md) indicates extreme greed, it might be wise to reduce exposure to high-[risk](../r/risk.md) investments. On the other hand, during extreme fear, investors might consider increasing their stock [holdings](../h/holdings.md) as valuations become more attractive. +Investors can use the Fear and Greed [Index](../i/index_instrument.md) to manage [risk](../r/risk.md). When the [index](../i/index_instrument.md) indicates extreme greed, it might be wise to reduce exposure to high-[risk](../r/risk.md) investments. On the other hand, during extreme fear, investors might consider increasing their stock [holdings](../h/holdings.md) as valuations become more attractive. ### Behavioral Finance Insights -The [index](../i/index.md) provides insights into the psychological factors driving [market](../m/market.md) movements. It reflects how [investor](../i/investor.md) sentiment, influenced by human emotions like fear and greed, can lead to [market](../m/market.md) overreactions, creating opportunities for contrarian investors. +The [index](../i/index_instrument.md) provides insights into the psychological factors driving [market](../m/market.md) movements. It reflects how [investor](../i/investor.md) sentiment, influenced by human emotions like fear and greed, can lead to [market](../m/market.md) overreactions, creating opportunities for contrarian investors. ## Criticisms and Limitations -Despite its popularity, the Fear and Greed [Index](../i/index.md) has its limitations: +Despite its popularity, the Fear and Greed [Index](../i/index_instrument.md) has its limitations: -- **[Lagging Indicator](../l/lagging_indicator.md)**: Some critics argue that the [index](../i/index.md) is a [lagging indicator](../l/lagging_indicator.md) as it reflects past data and may not predict future [market](../m/market.md) movements accurately. -- **Over-simplification**: The financial [market](../m/market.md) is influenced by numerous factors, and reducing it to a single [index](../i/index.md) might oversimplify the complexities involved. -- **[Market](../m/market.md) Context**: The [index](../i/index.md) should not be used in isolation. It is crucial to consider the broader economic context and other fundamental and [technical indicators](../t/technical_indicators.md) when making investment decisions. -- **Emotional Influence**: Ironically, the [index](../i/index.md) itself can influence [investor](../i/investor.md) sentiment. If widely followed, it could lead to self-fulfilling prophecies where fear or greed perpetuates further due to collective behavior. +- **[Lagging Indicator](../l/lagging_indicator.md)**: Some critics argue that the [index](../i/index_instrument.md) is a [lagging indicator](../l/lagging_indicator.md) as it reflects past data and may not predict future [market](../m/market.md) movements accurately. +- **Over-simplification**: The financial [market](../m/market.md) is influenced by numerous factors, and reducing it to a single [index](../i/index_instrument.md) might oversimplify the complexities involved. +- **[Market](../m/market.md) Context**: The [index](../i/index_instrument.md) should not be used in isolation. It is crucial to consider the broader economic context and other fundamental and [technical indicators](../t/technical_indicators.md) when making investment decisions. +- **Emotional Influence**: Ironically, the [index](../i/index_instrument.md) itself can influence [investor](../i/investor.md) sentiment. If widely followed, it could lead to self-fulfilling prophecies where fear or greed perpetuates further due to collective behavior. ## Case Studies ### 2008 Financial Crisis -During the 2008 [financial crisis](../f/financial_crisis.md), the Fear and Greed [Index](../i/index.md) plummeted to extreme fear levels. Those who heeded this signal and purchased [stocks](../s/stock.md) during the panic were able to [capitalize](../c/capitalize.md) on the subsequent recovery as markets rebounded in the following years. +During the 2008 [financial crisis](../f/financial_crisis.md), the Fear and Greed [Index](../i/index_instrument.md) plummeted to extreme fear levels. Those who heeded this signal and purchased [stocks](../s/stock.md) during the panic were able to [capitalize](../c/capitalize.md) on the subsequent recovery as markets rebounded in the following years. ### COVID-19 Pandemic -The onset of the COVID-19 pandemic in early 2020 saw the Fear and Greed [Index](../i/index.md) drop sharply. Investors who remained calm and bought into the fear enjoyed significant gains as markets recovered, driven by fiscal stimulus, monetary easing, and the eventual rollout of vaccines. +The onset of the COVID-19 pandemic in early 2020 saw the Fear and Greed [Index](../i/index_instrument.md) drop sharply. Investors who remained calm and bought into the fear enjoyed significant gains as markets recovered, driven by fiscal stimulus, monetary easing, and the eventual rollout of vaccines. ## Conclusion -The Fear and Greed [Index](../i/index.md) serves as a valuable tool for gauging [market sentiment](../m/market_sentiment.md). While it is not an infallible predictor of [market](../m/market.md) movements, it provides a snapshot of prevailing [investor](../i/investor.md) emotions and can help in making informed investment decisions. By understanding and leveraging this [index](../i/index.md), investors can better navigate the complexities of [market cycles](../m/market_cycles.md), manage risks more effectively, and potentially enhance their investment returns. +The Fear and Greed [Index](../i/index_instrument.md) serves as a valuable tool for gauging [market sentiment](../m/market_sentiment.md). While it is not an infallible predictor of [market](../m/market.md) movements, it provides a snapshot of prevailing [investor](../i/investor.md) emotions and can help in making informed investment decisions. By understanding and leveraging this [index](../i/index_instrument.md), investors can better navigate the complexities of [market cycles](../m/market_cycles.md), manage risks more effectively, and potentially enhance their investment returns. -For more information and the latest updated Fear and Greed [Index](../i/index.md), you can visit [CNN Business Fear & Greed Index](https://money.cnn.com/data/fear-and-greed/). +For more information and the latest updated Fear and Greed [Index](../i/index_instrument.md), you can visit [CNN Business Fear & Greed Index](https://money.cnn.com/data/fear-and-greed/). diff --git a/en/pedia/f/federal_funds_rate.md b/en/pedia/f/federal_funds_rate.md index ca835445..f4967d21 100644 --- a/en/pedia/f/federal_funds_rate.md +++ b/en/pedia/f/federal_funds_rate.md @@ -57,7 +57,7 @@ Conversely, to increase the rate, the Fed sells government securities, removing The FOMC relies on a [range](../r/range.md) of economic data to guide their decisions regarding the [Federal Funds](../f/federal_funds.md) Rate. Some key indicators include: - **Gross Domestic Product (GDP):** Measures the total economic output and provides a broad view of economic health. -- **[Inflation](../i/inflation.md) Rates:** Indicated by measures such as the Consumer Price [Index](../i/index.md) (CPI) and Producer Price [Index](../i/index.md) (PPI). +- **[Inflation](../i/inflation.md) Rates:** Indicated by measures such as the Consumer Price [Index](../i/index_instrument.md) (CPI) and Producer Price [Index](../i/index_instrument.md) (PPI). - **Employment Data:** [Unemployment](../u/unemployment.md) rates and job creation figures are critical indicators of economic activity and [labor market](../l/labor_market.md) health. ## Effects of Changes in the Federal Funds Rate diff --git a/en/pedia/f/federal_open_market_committee_meeting_(fomc_meeting).md b/en/pedia/f/federal_open_market_committee_meeting_(fomc_meeting).md index e91ce1ba..ba8a7446 100644 --- a/en/pedia/f/federal_open_market_committee_meeting_(fomc_meeting).md +++ b/en/pedia/f/federal_open_market_committee_meeting_(fomc_meeting).md @@ -54,7 +54,7 @@ The FOMC's role and the methods it uses have evolved over time in response to ch 1. **Event-Driven Strategies**: Algorithms may incorporate economic calendars and alert systems to [handle](../h/handle.md) FOMC announcements. These strategies might involve adjusting positions just before or after announcements to exploit expected [market](../m/market.md) movements. 2. **[Sentiment Analysis](../s/sentiment_analysis.md)**: Some algorithms analyze the language used in FOMC statements and minutes to quantify sentiment and predict [market](../m/market.md) reactions. [Natural Language Processing](../n/natural_language_processing_(nlp)_in_trading.md) (NLP) techniques can be used for this purpose. 3. **[Trend Following](../t/trend_following.md)**: Post-announcement trends can be [robust](../r/robust.md) due to the high [volume](../v/volume.md) of [market](../m/market.md) participants reacting to new information. Algorithms can deploy [trend](../t/trend.md)-following techniques to [capitalize](../c/capitalize.md) on these movements. -4. **Policy [Uncertainty](../u/uncertainty_in_trading.md) [Index](../i/index.md)**: Models might include indices that measure policy [uncertainty](../u/uncertainty_in_trading.md), like those based at [Economic Policy Uncertainty Index](http://www.policyuncertainty.com), to adjust their trading parameters around FOMC meetings. +4. **Policy [Uncertainty](../u/uncertainty_in_trading.md) [Index](../i/index_instrument.md)**: Models might include indices that measure policy [uncertainty](../u/uncertainty_in_trading.md), like those based at [Economic Policy Uncertainty Index](http://www.policyuncertainty.com), to adjust their trading parameters around FOMC meetings. ## Major Companies and Platforms diff --git a/en/pedia/f/fibonacci_extensions.md b/en/pedia/f/fibonacci_extensions.md index 1b7d7c73..fcf3d33f 100644 --- a/en/pedia/f/fibonacci_extensions.md +++ b/en/pedia/f/fibonacci_extensions.md @@ -46,7 +46,7 @@ In the Forex [market](../m/market.md), assume the EUR/USD moved from 1.2000 (Low ## Limitations and Combining with Other Indicators -While Fibonacci extensions are essential for traders, relying solely on these levels can be risky. [Market](../m/market.md) conditions are influenced by numerous factors that Fibonacci extensions cannot account for, such as news events, [market sentiment](../m/market_sentiment.md), macroeconomic trends, and geopolitical tensions. Hence, it is crucial to combine them with other [technical indicators](../t/technical_indicator.md) like Moving Averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), or [Volume analysis](../v/volume_analysis.md) for a more [robust](../r/robust.md) strategy. +While Fibonacci extensions are essential for traders, relying solely on these levels can be risky. [Market](../m/market.md) conditions are influenced by numerous factors that Fibonacci extensions cannot account for, such as news events, [market sentiment](../m/market_sentiment.md), macroeconomic trends, and geopolitical tensions. Hence, it is crucial to combine them with other [technical indicators](../t/technical_indicator.md) like Moving Averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), or [Volume analysis](../v/volume_analysis.md) for a more [robust](../r/robust.md) strategy. ### Moving Averages diff --git a/en/pedia/f/fibonacci_numbers_and_lines.md b/en/pedia/f/fibonacci_numbers_and_lines.md index 4c74ace3..a9883c50 100644 --- a/en/pedia/f/fibonacci_numbers_and_lines.md +++ b/en/pedia/f/fibonacci_numbers_and_lines.md @@ -58,7 +58,7 @@ For instance, in a [downtrend](../d/downtrend.md), if the price of an [asset](.. [Trading algorithms](../t/trading_algorithms.md) incorporating Fibonacci analysis might: - Identify shifts in [trend](../t/trend.md) direction by detecting price bounces or breaks from Fibonacci levels. -- Combine [multiple](../m/multiple.md) indicators such as moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), or MACD (Moving Average Convergence [Divergence](../d/divergence.md)) with Fibonacci levels to refine signals. +- Combine [multiple](../m/multiple.md) indicators such as moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), or MACD (Moving Average Convergence [Divergence](../d/divergence.md)) with Fibonacci levels to refine signals. - Automate entry and exit points based on [Fibonacci retracement](../f/fibonacci_retracement.md) and extension levels. ## Example of Algorithmic Implementation diff --git a/en/pedia/f/fiji_stock_exchange_(spse).md b/en/pedia/f/fiji_stock_exchange_(spse).md index 2cf4cb80..886ffbbe 100644 --- a/en/pedia/f/fiji_stock_exchange_(spse).md +++ b/en/pedia/f/fiji_stock_exchange_(spse).md @@ -66,12 +66,12 @@ The SPSE contributes significantly to the Fijian [economy](../e/economy.md) by e ## Current Performance and Statistics -As of the latest data, the SPSE shows promising signs of growth. Key [performance indicators](../p/performance_indicators.md) include [market capitalization](../m/market_capitalization.md), trading volumes, and [index](../i/index.md) performance. +As of the latest data, the SPSE shows promising signs of growth. Key [performance indicators](../p/performance_indicators.md) include [market capitalization](../m/market_capitalization.md), trading volumes, and [index](../i/index_instrument.md) performance. ### Example Statistics: - **[Market Capitalization](../m/market_capitalization.md)**: Approximately FJD 3 billion. - **Trading [Volume](../v/volume.md)**: Varies, with an average of millions of [shares](../s/shares.md) exchanged annually. -- **[Index](../i/index.md) Performance**: The STRI has shown steady growth, reflecting [investor](../i/investor.md) confidence and [market](../m/market.md) resilience. +- **[Index](../i/index_instrument.md) Performance**: The STRI has shown steady growth, reflecting [investor](../i/investor.md) confidence and [market](../m/market.md) resilience. ## Strategic Initiatives diff --git a/en/pedia/f/financial_derivatives.md b/en/pedia/f/financial_derivatives.md index 492ffce5..8831cb59 100644 --- a/en/pedia/f/financial_derivatives.md +++ b/en/pedia/f/financial_derivatives.md @@ -1,6 +1,6 @@ # Financial Derivatives -Financial [derivatives](../d/derivatives.md) are complex financial instruments whose [value](../v/value.md) is derived from the [value](../v/value.md) of an [underlying asset](../u/underlying_asset.md), [index](../i/index.md), or rate. [Derivatives](../d/derivatives.md) are commonly used for hedging [risk](../r/risk.md) or for speculative purposes. This document [will](../w/will.md) explore the myriad aspects of financial [derivatives](../d/derivatives.md), diving into their types, uses, risks, history, and regulatory considerations. +Financial [derivatives](../d/derivatives.md) are complex financial instruments whose [value](../v/value.md) is derived from the [value](../v/value.md) of an [underlying asset](../u/underlying_asset.md), [index](../i/index_instrument.md), or rate. [Derivatives](../d/derivatives.md) are commonly used for hedging [risk](../r/risk.md) or for speculative purposes. This document [will](../w/will.md) explore the myriad aspects of financial [derivatives](../d/derivatives.md), diving into their types, uses, risks, history, and regulatory considerations. ## Types of Financial Derivatives diff --git a/en/pedia/f/financial_economics.md b/en/pedia/f/financial_economics.md index 7b699e8a..af258f76 100644 --- a/en/pedia/f/financial_economics.md +++ b/en/pedia/f/financial_economics.md @@ -95,7 +95,7 @@ The [financial sector](../f/financial_sector.md) operates under a variety of reg ### Academic Resources Several academic journals and institutions focus on the study and advancement of financial [economics](../e/economics.md), including: - **[Journal](../j/journal.md) of [Finance](../f/finance.md) (https://jfin-swufe.springeropen.com/):** A leading academic [journal](../j/journal.md) covering all aspects of [finance](../f/finance.md). -- **Financial [Economics](../e/economics.md) Network (https://www.ssrn.com/[index](../i/index.md).cfm/en/fin):** A repository of research papers and working documents in financial [economics](../e/economics.md). +- **Financial [Economics](../e/economics.md) Network (https://www.ssrn.com/[index](../i/index_instrument.md).cfm/en/fin):** A repository of research papers and working documents in financial [economics](../e/economics.md). ## Conclusion Financial [economics](../e/economics.md) is a complex field that integrates economic principles with financial practices to inform investment strategies, corporate policies, and regulatory measures. Its multidimensional nature spans across various segments of [finance](../f/finance.md), [offering](../o/offering.md) critical insights into [market](../m/market.md) behaviors, [risk management](../r/risk_management.md), and economic dynamics. \ No newline at end of file diff --git a/en/pedia/f/financial_independence_retire_early_(fire).md b/en/pedia/f/financial_independence_retire_early_(fire).md index d67a3cf9..a54eda1b 100644 --- a/en/pedia/f/financial_independence_retire_early_(fire).md +++ b/en/pedia/f/financial_independence_retire_early_(fire).md @@ -18,7 +18,7 @@ One of the most distinctive features of the FIRE movement is the emphasis on a h ### 2. Investing Wisely -[Investing](../i/investing.md) plays a critical role in the FIRE strategy. The goal is to grow one's [wealth](../w/wealth.md) through investments that provide a solid [return](../r/return.md). This often includes a diversified portfolio of [stocks](../s/stock.md), bonds, and [real estate](../r/real_estate.md). Many in the FIRE community advocate for low-cost [index fund](../i/index_fund.md) [investing](../i/investing.md), as popularized by Vanguard founder [John Bogle](../j/john_bogle.md). The rationale is that low-cost [index](../i/index.md) funds [offer](../o/offer.md) broad [market exposure](../m/market_exposure.md), minimize fees, and typically [outperform](../o/outperform.md) actively managed funds over the long term. +[Investing](../i/investing.md) plays a critical role in the FIRE strategy. The goal is to grow one's [wealth](../w/wealth.md) through investments that provide a solid [return](../r/return.md). This often includes a diversified portfolio of [stocks](../s/stock.md), bonds, and [real estate](../r/real_estate.md). Many in the FIRE community advocate for low-cost [index fund](../i/index_fund.md) [investing](../i/investing.md), as popularized by Vanguard founder [John Bogle](../j/john_bogle.md). The rationale is that low-cost [index](../i/index_instrument.md) funds [offer](../o/offer.md) broad [market exposure](../m/market_exposure.md), minimize fees, and typically [outperform](../o/outperform.md) actively managed funds over the long term. ### 3. Expense Tracking and Budgeting diff --git a/en/pedia/f/financial_market_indicators.md b/en/pedia/f/financial_market_indicators.md index 54c8a803..9df5fa62 100644 --- a/en/pedia/f/financial_market_indicators.md +++ b/en/pedia/f/financial_market_indicators.md @@ -26,7 +26,7 @@ Financial [market indicators](../m/market_indicators.md) are quantitative measur 1. **Moving Averages (MA)** Moving averages smooth out price data to identify trends. There are several types of moving averages, including simple moving averages (SMA) and exponential moving averages (EMA). -2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)** +2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)** The RSI measures the speed and change of price movements, indicating whether a stock is [overbought](../o/overbought.md) or [oversold](../o/oversold.md). An RSI above 70 suggests [overbought](../o/overbought.md) conditions, while an RSI below 30 indicates [oversold](../o/oversold.md) conditions. 3. **[Bollinger Bands](../b/bollinger_bands.md)** @@ -36,13 +36,13 @@ Financial [market indicators](../m/market_indicators.md) are quantitative measur [Sentiment indicators](../s/sentiment_indicators.md) gauge the overall mood or psychology of [market](../m/market.md) participants. These indicators can provide insights into [market sentiment](../m/market_sentiment.md), often acting as contrarian signals. -1. **[Volatility](../v/volatility.md) [Index](../i/index.md) (VIX)** - The VIX, also known as the "fear [index](../i/index.md)," measures [market](../m/market.md) [volatility](../v/volatility.md) and [investor](../i/investor.md) sentiment. A high VIX indicates increased [market](../m/market.md) fear and potential for a sharp decline, while a low VIX suggests complacency and stability. +1. **[Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX)** + The VIX, also known as the "fear [index](../i/index_instrument.md)," measures [market](../m/market.md) [volatility](../v/volatility.md) and [investor](../i/investor.md) sentiment. A high VIX indicates increased [market](../m/market.md) fear and potential for a sharp decline, while a low VIX suggests complacency and stability. 2. **Put/Call Ratio** The put/call ratio compares the trading [volume](../v/volume.md) of [put options](../p/put_options.md) to call [options](../o/options.md). A high ratio indicates bearish sentiment, while a low ratio suggests bullish sentiment. -3. **Consumer Confidence [Index](../i/index.md) (CCI)** +3. **Consumer Confidence [Index](../i/index_instrument.md) (CCI)** The CCI measures the confidence of consumers in the [economy](../e/economy.md). High consumer confidence can lead to increased spending and [economic growth](../e/economic_growth.md), while low confidence can result in reduced spending and economic contraction. ## Key Companies and Tools for Financial Market Indicators diff --git a/en/pedia/f/financial_modeling.md b/en/pedia/f/financial_modeling.md index 3fe8d1a3..683b750f 100644 --- a/en/pedia/f/financial_modeling.md +++ b/en/pedia/f/financial_modeling.md @@ -25,7 +25,7 @@ Machine [learning algorithms](../l/learning_algorithms_in_trading.md), including These models evaluate financial instruments based on company fundamentals like [earnings](../e/earnings.md), [revenue](../r/revenue.md), and growth potential. The Discounted [Cash Flow](../c/cash_flow.md) (DCF) model is a prime example, where future cash flows are projected and discounted back to their [present value](../p/present_value.md). ### Technical Analysis Models -[Technical analysis](../t/technical_analysis.md) models focus on statistical analysis of [market](../m/market.md) activity, such as price and [volume](../v/volume.md). Moving averages, [Bollinger Bands](../b/bollinger_bands.md), and [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) are commonly used [technical indicators](../t/technical_indicators.md) in these models. +[Technical analysis](../t/technical_analysis.md) models focus on statistical analysis of [market](../m/market.md) activity, such as price and [volume](../v/volume.md). Moving averages, [Bollinger Bands](../b/bollinger_bands.md), and [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) are commonly used [technical indicators](../t/technical_indicators.md) in these models. ### Econometric Models Econometric models use statistical methods to test hypotheses and forecast future trends. These models are essential in macroeconomic assessments and policy modeling. They often use techniques like [multiple](../m/multiple.md) regression and [time series analysis](../t/time_series_analysis.md). diff --git a/en/pedia/f/financial_times_stock_exchange_group_(ftse).md b/en/pedia/f/financial_times_stock_exchange_group_(ftse).md index d10d9c6d..e9c946cc 100644 --- a/en/pedia/f/financial_times_stock_exchange_group_(ftse).md +++ b/en/pedia/f/financial_times_stock_exchange_group_(ftse).md @@ -1,15 +1,15 @@ # Financial Times Stock Exchange Group (FTSE) -The Financial Times Stock [Exchange](../e/exchange.md) Group (FTSE) is a British provider of [stock market](../s/stock_market.md) indices and associated data services, [offering](../o/offering.md) a [range](../r/range.md) of benchmarking, analytics, and data solutions for investors and financial professionals. Best known for its globally recognized FTSE 100 [Index](../i/index.md), the FTSE Group provides benchmarks that cover various sectors and regions, enabling investors to track performance, conduct [market](../m/market.md) analysis, and make informed investment decisions. This comprehensive guide [will](../w/will.md) delve into the history, products, services, and impact of the FTSE Group within the financial [industry](../i/industry.md). +The Financial Times Stock [Exchange](../e/exchange.md) Group (FTSE) is a British provider of [stock market](../s/stock_market.md) indices and associated data services, [offering](../o/offering.md) a [range](../r/range.md) of benchmarking, analytics, and data solutions for investors and financial professionals. Best known for its globally recognized FTSE 100 [Index](../i/index_instrument.md), the FTSE Group provides benchmarks that cover various sectors and regions, enabling investors to track performance, conduct [market](../m/market.md) analysis, and make informed investment decisions. This comprehensive guide [will](../w/will.md) delve into the history, products, services, and impact of the FTSE Group within the financial [industry](../i/industry.md). ## History and Evolution of FTSE -Founded in 1995 as a [joint](../j/joint.md) venture between the Financial Times and the London Stock [Exchange](../e/exchange.md), the FTSE Group has grown to become a leading global [index](../i/index.md) provider. Initially focused on the FTSE 100 [Index](../i/index.md), the Group has since expanded its offerings to include a wide array of indices covering different markets, sectors, and investment strategies. +Founded in 1995 as a [joint](../j/joint.md) venture between the Financial Times and the London Stock [Exchange](../e/exchange.md), the FTSE Group has grown to become a leading global [index](../i/index_instrument.md) provider. Initially focused on the FTSE 100 [Index](../i/index_instrument.md), the Group has since expanded its offerings to include a wide array of indices covering different markets, sectors, and investment strategies. - **1995**: Establishment of the FTSE Group as a partnership between the Financial Times and the London Stock [Exchange](../e/exchange.md). -- **2000s**: Launch of various indices, including the FTSE Global [Equity](../e/equity.md) [Index](../i/index.md) Series, FTSE4Good [Index](../i/index.md) Series, and FTSE All-World [Index](../i/index.md). +- **2000s**: Launch of various indices, including the FTSE Global [Equity](../e/equity.md) [Index](../i/index_instrument.md) Series, FTSE4Good [Index](../i/index_instrument.md) Series, and FTSE All-World [Index](../i/index_instrument.md). - **2011**: [Acquisition](../a/acquisition.md) of the FTSE Group by the London Stock [Exchange](../e/exchange.md) Group (LSEG), resulting in further [expansion](../e/expansion.md) and integration of services. -- **2017**: [Merger](../m/merger.md) with Russell Investments' [index](../i/index.md) [business](../b/business.md), creating [FTSE Russell](../f/ftse_russell.md), a comprehensive provider of indices and data solutions. +- **2017**: [Merger](../m/merger.md) with Russell Investments' [index](../i/index_instrument.md) [business](../b/business.md), creating [FTSE Russell](../f/ftse_russell.md), a comprehensive provider of indices and data solutions. ## Key Products and Services @@ -17,19 +17,19 @@ The FTSE Group's extensive [range](../r/range.md) of indices and data services c ### FTSE 100 Index -The FTSE 100 [Index](../i/index.md) is one of the most widely recognized [stock market](../s/stock_market.md) indices globally, representing the performance of the top 100 companies [listed](../l/listed.md) on the London Stock [Exchange](../e/exchange.md) by [market capitalization](../m/market_capitalization.md). It serves as a barometer for the overall health and performance of the UK [stock market](../s/stock_market.md). +The FTSE 100 [Index](../i/index_instrument.md) is one of the most widely recognized [stock market](../s/stock_market.md) indices globally, representing the performance of the top 100 companies [listed](../l/listed.md) on the London Stock [Exchange](../e/exchange.md) by [market capitalization](../m/market_capitalization.md). It serves as a barometer for the overall health and performance of the UK [stock market](../s/stock_market.md). ### FTSE All-World Index Series -The FTSE All-World [Index](../i/index.md) Series provides a comprehensive measure of global [market](../m/market.md) performance, covering over 3,000 large- and [mid-cap stocks](../m/mid-cap_stocks.md) across 47 countries. This series enables investors to track global [equity](../e/equity.md) markets and allocate assets across various regions and sectors. +The FTSE All-World [Index](../i/index_instrument.md) Series provides a comprehensive measure of global [market](../m/market.md) performance, covering over 3,000 large- and [mid-cap stocks](../m/mid-cap_stocks.md) across 47 countries. This series enables investors to track global [equity](../e/equity.md) markets and allocate assets across various regions and sectors. ### FTSE4Good Index Series -The FTSE4Good [Index](../i/index.md) Series is designed to measure the performance of companies that meet globally recognized standards for environmental, social, and governance (ESG) practices. This series supports socially responsible [investing](../i/investing.md) (SRI) by identifying companies with strong ESG performance. +The FTSE4Good [Index](../i/index_instrument.md) Series is designed to measure the performance of companies that meet globally recognized standards for environmental, social, and governance (ESG) practices. This series supports socially responsible [investing](../i/investing.md) (SRI) by identifying companies with strong ESG performance. ### FTSE NAREIT Real Estate Index Series -The FTSE NAREIT [Real Estate](../r/real_estate.md) [Index](../i/index.md) Series provides a [benchmark](../b/benchmark.md) for [real estate](../r/real_estate.md) investment trusts (REITs) and other [real estate](../r/real_estate.md) securities across the United States and global markets. These indices help investors track the performance of the [real estate](../r/real_estate.md) sector and make informed investment decisions. +The FTSE NAREIT [Real Estate](../r/real_estate.md) [Index](../i/index_instrument.md) Series provides a [benchmark](../b/benchmark.md) for [real estate](../r/real_estate.md) investment trusts (REITs) and other [real estate](../r/real_estate.md) securities across the United States and global markets. These indices help investors track the performance of the [real estate](../r/real_estate.md) sector and make informed investment decisions. ### FTSE EDHEC-Risk Efficient Indices @@ -45,11 +45,11 @@ The FTSE Group also offers a [range](../r/range.md) of [fixed income](../f/fixed ## Methodology and Index Calculation -FTSE indices are calculated using transparent, rules-based methodologies that ensure consistency, accuracy, and objectivity. Key components of the [index](../i/index.md) calculation process include: +FTSE indices are calculated using transparent, rules-based methodologies that ensure consistency, accuracy, and objectivity. Key components of the [index](../i/index_instrument.md) calculation process include: ### Market Capitalization Weighting -Most FTSE indices are [market](../m/market.md)-cap [weighted](../w/weighted.md), meaning constituent [stocks](../s/stock.md) are [weighted](../w/weighted.md) according to their [market capitalization](../m/market_capitalization.md). This approach reflects the relative size and importance of each company within the [index](../i/index.md), providing a realistic measure of [market](../m/market.md) performance. +Most FTSE indices are [market](../m/market.md)-cap [weighted](../w/weighted.md), meaning constituent [stocks](../s/stock.md) are [weighted](../w/weighted.md) according to their [market capitalization](../m/market_capitalization.md). This approach reflects the relative size and importance of each company within the [index](../i/index_instrument.md), providing a realistic measure of [market](../m/market.md) performance. ### Free Float Adjustments @@ -57,7 +57,7 @@ To ensure indices accurately represent investable opportunities, FTSE applies fr ### Regular Reviews and Rebalancing -FTSE indices undergo regular reviews and [rebalancing](../r/rebalancing.md) to maintain accuracy and relevance. Quarterly and annual reviews assess constituent eligibility, reweight [stocks](../s/stock.md) based on [market capitalization](../m/market_capitalization.md) changes, and ensure compliance with [index](../i/index.md) rules. This process ensures that indices remain an accurate reflection of the [underlying](../u/underlying.md) [market](../m/market.md). +FTSE indices undergo regular reviews and [rebalancing](../r/rebalancing.md) to maintain accuracy and relevance. Quarterly and annual reviews assess constituent eligibility, reweight [stocks](../s/stock.md) based on [market capitalization](../m/market_capitalization.md) changes, and ensure compliance with [index](../i/index_instrument.md) rules. This process ensures that indices remain an accurate reflection of the [underlying](../u/underlying.md) [market](../m/market.md). ### ESG Integration and Screening @@ -73,7 +73,7 @@ Investors use FTSE indices as benchmarks to measure the performance of their por ### Passive Investing and Index Funds -The rise of [passive investing](../p/passive_investing.md) has been fueled by the availability of FTSE indices, which serve as the [underlying](../u/underlying.md) benchmarks for [index](../i/index.md) funds and [exchange](../e/exchange.md)-traded funds (ETFs). These investment vehicles track the performance of FTSE indices, [offering](../o/offering.md) investors low-cost, diversified exposure to various markets and sectors. +The rise of [passive investing](../p/passive_investing.md) has been fueled by the availability of FTSE indices, which serve as the [underlying](../u/underlying.md) benchmarks for [index](../i/index_instrument.md) funds and [exchange](../e/exchange.md)-traded funds (ETFs). These investment vehicles track the performance of FTSE indices, [offering](../o/offering.md) investors low-cost, diversified exposure to various markets and sectors. ### Development of Financial Products @@ -93,7 +93,7 @@ FTSE Group collaborates with various financial institutions, research organizati ### London Stock Exchange Group (LSEG) -Following its [acquisition](../a/acquisition.md) by LSEG in 2011, FTSE has integrated its services with the broader offerings of the London Stock [Exchange](../e/exchange.md), enhancing its global reach and capabilities. This partnership has strengthened FTSE’s position as a leading [index](../i/index.md) provider. +Following its [acquisition](../a/acquisition.md) by LSEG in 2011, FTSE has integrated its services with the broader offerings of the London Stock [Exchange](../e/exchange.md), enhancing its global reach and capabilities. This partnership has strengthened FTSE’s position as a leading [index](../i/index_instrument.md) provider. ### EDHEC-Risk Institute @@ -101,7 +101,7 @@ FTSE’s collaboration with the EDHEC-[Risk](../r/risk.md) Institute has led to ### National Association of Real Estate Investment Trusts (NAREIT) -FTSE’s partnership with NAREIT has resulted in the creation of the FTSE NAREIT [Real Estate](../r/real_estate.md) [Index](../i/index.md) Series, providing benchmarks for the performance of REITs and [real estate](../r/real_estate.md) securities. This collaboration supports the growth and development of the [real estate](../r/real_estate.md) investment sector. +FTSE’s partnership with NAREIT has resulted in the creation of the FTSE NAREIT [Real Estate](../r/real_estate.md) [Index](../i/index_instrument.md) Series, providing benchmarks for the performance of REITs and [real estate](../r/real_estate.md) securities. This collaboration supports the growth and development of the [real estate](../r/real_estate.md) investment sector. ### Sustainable Investment Partners @@ -117,7 +117,7 @@ FTSE is committed to enhancing its ESG integration capabilities, providing more ### Advanced Analytics and Data Solutions -FTSE is [investing](../i/investing.md) in advanced analytics and data solutions to provide deeper insights and actionable intelligence for investors. This includes the use of [artificial intelligence](../a/artificial_intelligence_in_trading.md), machine learning, and [big data](../b/big_data_in_trading.md) technologies to enhance [index](../i/index.md) calculation, performance analysis, and [risk management](../r/risk_management.md). +FTSE is [investing](../i/investing.md) in advanced analytics and data solutions to provide deeper insights and actionable intelligence for investors. This includes the use of [artificial intelligence](../a/artificial_intelligence_in_trading.md), machine learning, and [big data](../b/big_data_in_trading.md) technologies to enhance [index](../i/index_instrument.md) calculation, performance analysis, and [risk management](../r/risk_management.md). ### Expansion of Fixed Income Indices @@ -133,6 +133,6 @@ FTSE is focused on providing more tailored and customizable [indexing](../i/inde ## Conclusion -The Financial Times Stock [Exchange](../e/exchange.md) Group (FTSE) has established itself as a leading global provider of [stock market](../s/stock_market.md) indices and data services. Through its innovative products, rigorous methodologies, and commitment to [transparency](../t/transparency.md), FTSE supports investors, [asset](../a/asset.md) managers, and financial institutions in making informed investment decisions. As the financial landscape continues to evolve, FTSE remains at the forefront of [index](../i/index.md) innovation, driving the development of new benchmarks and data solutions that enhance [market](../m/market.md) performance, sustainability, and resilience. +The Financial Times Stock [Exchange](../e/exchange.md) Group (FTSE) has established itself as a leading global provider of [stock market](../s/stock_market.md) indices and data services. Through its innovative products, rigorous methodologies, and commitment to [transparency](../t/transparency.md), FTSE supports investors, [asset](../a/asset.md) managers, and financial institutions in making informed investment decisions. As the financial landscape continues to evolve, FTSE remains at the forefront of [index](../i/index_instrument.md) innovation, driving the development of new benchmarks and data solutions that enhance [market](../m/market.md) performance, sustainability, and resilience. For more information about FTSE, visit their official website: [FTSE Russell](https://www.ftserussell.com/) \ No newline at end of file diff --git a/en/pedia/f/financing.md b/en/pedia/f/financing.md index 0ec264c5..45164b6f 100644 --- a/en/pedia/f/financing.md +++ b/en/pedia/f/financing.md @@ -42,7 +42,7 @@ A notable example is Andreessen Horowitz, a VC [firm](../f/firm.md) that has inv ### 2. Leveraged ETFs -Leveraged [Exchange](../e/exchange.md)-Traded Funds (ETFs) aim to provide a [multiple](../m/multiple.md) of the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index.md). Algorithmic traders may use these instruments to [gain](../g/gain.md) leveraged exposure to [market](../m/market.md) movements without the need to borrow funds directly. +Leveraged [Exchange](../e/exchange.md)-Traded Funds (ETFs) aim to provide a [multiple](../m/multiple.md) of the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). Algorithmic traders may use these instruments to [gain](../g/gain.md) leveraged exposure to [market](../m/market.md) movements without the need to borrow funds directly. ### 3. Risk Management in Leverage diff --git a/en/pedia/f/first_world.md b/en/pedia/f/first_world.md index 75f4c4f9..aa709504 100644 --- a/en/pedia/f/first_world.md +++ b/en/pedia/f/first_world.md @@ -8,7 +8,7 @@ 2. **High Standards of Living**: Citizens of First World countries enjoy high standards of living, including access to quality healthcare, education, and social services. 3. **Technological Advancement**: These countries possess advanced technological [infrastructure](../i/infrastructure.md) and innovation capabilities. 4. **Stable Political Systems**: First World nations typically have stable, democratic political systems and strong institutions. -5. **High Human Development [Index](../i/index.md) (HDI)**: They score high on the Human Development [Index](../i/index.md), which measures [life expectancy](../l/life_expectancy.md), education, and [per capita](../p/per_capita.md) [income](../i/income.md). +5. **High Human Development [Index](../i/index_instrument.md) (HDI)**: They score high on the Human Development [Index](../i/index_instrument.md), which measures [life expectancy](../l/life_expectancy.md), education, and [per capita](../p/per_capita.md) [income](../i/income.md). ## Historical Context 1. **Cold War Era**: The term "First World" emerged during the Cold War to differentiate the Western bloc (NATO and allies) from the Eastern bloc (Soviet Union and allies) and the non-aligned or developing countries ([Third World](../t/third_world.md)). diff --git a/en/pedia/f/fisher_transform_indicator.md b/en/pedia/f/fisher_transform_indicator.md index f29c25e8..aacd0664 100644 --- a/en/pedia/f/fisher_transform_indicator.md +++ b/en/pedia/f/fisher_transform_indicator.md @@ -58,7 +58,7 @@ Fisher Transform can also be used in [divergence](../d/divergence.md) analysis t ### Combining with Other Indicators -Traders often combine the Fisher Transform with other [technical indicators](../t/technical_indicator.md), such as Moving Averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)) to validate the signals and enhance the robustness of their [trading strategy](../t/trading_strategy.md). +Traders often combine the Fisher Transform with other [technical indicators](../t/technical_indicator.md), such as Moving Averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)) to validate the signals and enhance the robustness of their [trading strategy](../t/trading_strategy.md). ## Advantages and Limitations diff --git a/en/pedia/f/fixed-income_security.md b/en/pedia/f/fixed-income_security.md index 0a56c19a..a4e80473 100644 --- a/en/pedia/f/fixed-income_security.md +++ b/en/pedia/f/fixed-income_security.md @@ -79,7 +79,7 @@ PIMCO (Pacific [Investment Management](../i/investment_management.md) Company) i BlackRock is one of the world's largest [asset management](../a/asset_management.md) firms, [offering](../o/offering.md) various fixed-[income](../i/income.md) investment [options](../o/options.md). [BlackRock](https://www.blackrock.com/) ### Vanguard -Known for its low-cost [index](../i/index.md) funds, Vanguard also offers various fixed-[income](../i/income.md) investment [options](../o/options.md). [Vanguard](https://www.vanguard.com/) +Known for its low-cost [index](../i/index_instrument.md) funds, Vanguard also offers various fixed-[income](../i/income.md) investment [options](../o/options.md). [Vanguard](https://www.vanguard.com/) ### Goldman Sachs Goldman Sachs provides a [range](../r/range.md) of fixed-[income](../i/income.md) securities and investment services. [Goldman Sachs](https://www.goldmansachs.com/) diff --git a/en/pedia/f/fixed_income_etfs.md b/en/pedia/f/fixed_income_etfs.md index 6ae32b3c..c0e5041e 100644 --- a/en/pedia/f/fixed_income_etfs.md +++ b/en/pedia/f/fixed_income_etfs.md @@ -4,14 +4,14 @@ ## What are Fixed Income ETFs? -[Fixed Income](../f/fixed_income.md) ETFs are a type of [exchange](../e/exchange.md)-traded [fund](../f/fund.md) that primarily invests in bonds or other fixed-[income](../i/income.md) securities. These ETFs aim to replicate the performance of a specific [bond](../b/bond.md) [index](../i/index.md), which can be based on various criteria, such as [bond](../b/bond.md) type, [maturity](../m/maturity.md), [issuer](../i/issuer.md), or [credit](../c/credit.md) quality. +[Fixed Income](../f/fixed_income.md) ETFs are a type of [exchange](../e/exchange.md)-traded [fund](../f/fund.md) that primarily invests in bonds or other fixed-[income](../i/income.md) securities. These ETFs aim to replicate the performance of a specific [bond](../b/bond.md) [index](../i/index_instrument.md), which can be based on various criteria, such as [bond](../b/bond.md) type, [maturity](../m/maturity.md), [issuer](../i/issuer.md), or [credit](../c/credit.md) quality. ### Components and Structure 1. **[Underlying](../u/underlying.md) Assets**: [Fixed Income](../f/fixed_income.md) ETFs [hold](../h/hold.md) a diversified portfolio of bonds, which can include government bonds, corporate bonds, [municipal bonds](../m/municipal_bonds.md), or international bonds. -2. **Tracking [Index](../i/index.md)**: These ETFs aim to mimic the performance of a specific [bond](../b/bond.md) [index](../i/index.md), such as the [Bloomberg](../b/bloomberg.md) Barclays US Aggregate [Bond](../b/bond.md) [Index](../i/index.md) or the ICE [U.S. Treasury](../u/u.s._treasury.md) Core [Bond](../b/bond.md) [Index](../i/index.md). +2. **Tracking [Index](../i/index_instrument.md)**: These ETFs aim to mimic the performance of a specific [bond](../b/bond.md) [index](../i/index_instrument.md), such as the [Bloomberg](../b/bloomberg.md) Barclays US Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) or the ICE [U.S. Treasury](../u/u.s._treasury.md) Core [Bond](../b/bond.md) [Index](../i/index_instrument.md). 3. **[Liquidity](../l/liquidity.md)**: Unlike individual bonds, [Fixed Income](../f/fixed_income.md) ETFs can be traded on stock exchanges, providing [intraday liquidity](../i/intraday_liquidity.md) to investors. -4. **Management**: [Fixed Income](../f/fixed_income.md) ETFs can be passively managed ([index](../i/index.md)-based) or actively managed, where the [fund manager](../f/fund_manager.md) selects bonds based on specific criteria. +4. **Management**: [Fixed Income](../f/fixed_income.md) ETFs can be passively managed ([index](../i/index_instrument.md)-based) or actively managed, where the [fund manager](../f/fund_manager.md) selects bonds based on specific criteria. ## Advantages of Fixed Income ETFs @@ -30,7 +30,7 @@ Despite the many advantages, [Fixed Income](../f/fixed_income.md) ETFs also have 1. **[Interest Rate Risk](../i/interest_rate_risk.md)**: [Bond](../b/bond.md) prices and [interest](../i/interest.md) rates have an inverse relationship. When [interest](../i/interest.md) rates rise, [bond](../b/bond.md) prices typically fall, potentially leading to [capital](../c/capital.md) losses in the ETF. 2. **[Credit Risk](../c/credit_risk.md)**: There's always the [risk](../r/risk.md) that issuers may [default](../d/default.md) on their payments, affecting the ETF's performance. 3. **[Market Risk](../m/market_risk.md)**: [Fixed Income](../f/fixed_income.md) ETFs traded on exchanges are subject to [market](../m/market.md) fluctuations, which can impact the ETF's price. -4. **[Tracking Error](../t/tracking_error.md)**: Some ETFs may not perfectly replicate the performance of their [underlying](../u/underlying.md) [index](../i/index.md) due to management fees, [trading costs](../t/trading_costs.md), or other factors. +4. **[Tracking Error](../t/tracking_error.md)**: Some ETFs may not perfectly replicate the performance of their [underlying](../u/underlying.md) [index](../i/index_instrument.md) due to management fees, [trading costs](../t/trading_costs.md), or other factors. 5. **[Liquidity Risk](../l/liquidity_risk.md)**: While [Fixed Income](../f/fixed_income.md) ETFs are generally [liquid](../l/liquid.md), those with lower trading volumes or specialized focuses may experience [liquidity](../l/liquidity.md) issues. ## Types of Fixed Income ETFs @@ -60,7 +60,7 @@ When [investing](../i/investing.md) in [Fixed Income](../f/fixed_income.md) ETFs 1. **[Expense](../e/expense.md) Ratios**: Compare the cost of different ETFs to ensure you're getting the best [value](../v/value.md). Lower [expense](../e/expense.md) ratios can significantly impact long-term returns. 2. **[Yield](../y/yield.md) and [Duration](../d/duration.md)**: Analyze the ETF's [yield](../y/yield.md) to assess [income](../i/income.md) potential and [duration](../d/duration.md) to understand [interest rate sensitivity](../i/interest_rate_sensitivity.md). 3. **[Credit](../c/credit.md) Quality**: Evaluate the [credit](../c/credit.md) quality of the [underlying](../u/underlying.md) bonds to assess [default risk](../d/default_risk.md). -4. **[Index](../i/index.md) V. [Active Management](../a/active_management.md)**: Decide whether a passively managed [index fund](../i/index_fund.md) or an actively managed ETF better fits your [investment strategy](../i/investment_strategy.md). +4. **[Index](../i/index_instrument.md) V. [Active Management](../a/active_management.md)**: Decide whether a passively managed [index fund](../i/index_fund.md) or an actively managed ETF better fits your [investment strategy](../i/investment_strategy.md). 5. **Tax Considerations**: Consider the tax implications, especially with [municipal bonds](../m/municipal_bonds.md) that may [offer](../o/offer.md) tax-[exempt income](../e/exempt_income.md). ## Conclusion diff --git a/en/pedia/f/float-adjusted_market_capitalization.md b/en/pedia/f/float-adjusted_market_capitalization.md index bdb50135..4cf418ff 100644 --- a/en/pedia/f/float-adjusted_market_capitalization.md +++ b/en/pedia/f/float-adjusted_market_capitalization.md @@ -30,14 +30,14 @@ For example, if the same company mentioned above has 1 million [shares](../s/sha \[ \text{Float-Adjusted [Market Capitalization](../m/market_capitalization.md)} = 700,000 \times 50 = 35,000,000 \] ## Importance in Index Construction -[Float](../f/float.md)-adjusted [market capitalization](../m/market_capitalization.md) is particularly crucial in the construction and maintenance of [stock market](../s/stock_market.md) indices. Major indices like the S&P 500, FTSE 100, and others use [float](../f/float.md)-adjusted [market capitalization](../m/market_capitalization.md) to ensure that the [index](../i/index.md) more accurately reflects the performance and [liquidity](../l/liquidity.md) of the included companies. +[Float](../f/float.md)-adjusted [market capitalization](../m/market_capitalization.md) is particularly crucial in the construction and maintenance of [stock market](../s/stock_market.md) indices. Major indices like the S&P 500, FTSE 100, and others use [float](../f/float.md)-adjusted [market capitalization](../m/market_capitalization.md) to ensure that the [index](../i/index_instrument.md) more accurately reflects the performance and [liquidity](../l/liquidity.md) of the included companies. -For example, the S&P 500 introduced [float](../f/float.md)-adjusted [market capitalization](../m/market_capitalization.md) methodology in 2005. This change aimed to provide a more realistic and investable [benchmark](../b/benchmark.md) for [index](../i/index.md) funds and institutional investors. +For example, the S&P 500 introduced [float](../f/float.md)-adjusted [market capitalization](../m/market_capitalization.md) methodology in 2005. This change aimed to provide a more realistic and investable [benchmark](../b/benchmark.md) for [index](../i/index_instrument.md) funds and institutional investors. ## Impact on Investments [Float](../f/float.md)-adjusted [market capitalization](../m/market_capitalization.md) has several implications for both passive and active investment strategies: -1. **[Index](../i/index.md) Funds:** Many [index](../i/index.md) funds use [float](../f/float.md)-adjusted weights to allocate investments. This makes the [index](../i/index.md) less susceptible to price manipulation since non-tradable [shares](../s/shares.md) are excluded. +1. **[Index](../i/index_instrument.md) Funds:** Many [index](../i/index_instrument.md) funds use [float](../f/float.md)-adjusted weights to allocate investments. This makes the [index](../i/index_instrument.md) less susceptible to price manipulation since non-tradable [shares](../s/shares.md) are excluded. 2. **[Liquidity](../l/liquidity.md) Assessment:** Investors can get a clearer picture of a stock's [liquidity risk](../l/liquidity_risk.md), as the calculation does not include [shares](../s/shares.md) that are unlikely to be traded. 3. **[Valuation](../v/valuation.md) Accuracy:** A more accurate [valuation](../v/valuation.md) metric allows for better comparison between companies, especially in sectors where insider ownership can be substantial, like technology or pharmaceuticals. diff --git a/en/pedia/f/floating_interest_rate.md b/en/pedia/f/floating_interest_rate.md index 58560acc..11e4b7e0 100644 --- a/en/pedia/f/floating_interest_rate.md +++ b/en/pedia/f/floating_interest_rate.md @@ -1,10 +1,10 @@ # Floating Interest Rate -Floating [interest](../i/interest.md) rates, also known as adjustable or variable [interest](../i/interest.md) rates, are an essential concept in the realm of [finance](../f/finance.md), including [algorithmic trading](../a/accountability.md) (algotrading). They contrast with fixed [interest](../i/interest.md) rates by varying over time based on changes in an [underlying](../u/underlying.md) [benchmark](../b/benchmark.md) [interest rate](../i/interest_rate.md) or [index](../i/index.md). This rate adjustment mechanism influences various financial instruments, including loans, mortgages, bonds, and [derivatives](../d/derivatives.md). +Floating [interest](../i/interest.md) rates, also known as adjustable or variable [interest](../i/interest.md) rates, are an essential concept in the realm of [finance](../f/finance.md), including [algorithmic trading](../a/accountability.md) (algotrading). They contrast with fixed [interest](../i/interest.md) rates by varying over time based on changes in an [underlying](../u/underlying.md) [benchmark](../b/benchmark.md) [interest rate](../i/interest_rate.md) or [index](../i/index_instrument.md). This rate adjustment mechanism influences various financial instruments, including loans, mortgages, bonds, and [derivatives](../d/derivatives.md). ## Definition and Mechanism -A floating [interest rate](../i/interest_rate.md) changes periodically, typically in [correlation](../c/correlation.md) with a standard [benchmark](../b/benchmark.md) [interest rate](../i/interest_rate.md) [index](../i/index.md). Common benchmarks include: +A floating [interest rate](../i/interest_rate.md) changes periodically, typically in [correlation](../c/correlation.md) with a standard [benchmark](../b/benchmark.md) [interest rate](../i/interest_rate.md) [index](../i/index_instrument.md). Common benchmarks include: - **LIBOR (London Interbank Offered Rate)**: An average [interest rate](../i/interest_rate.md) estimated by leading banks in London which they would charge to borrow from other banks. - **SOFR (Secured Overnight [Financing](../f/financing.md) Rate)**: A broad measure of the cost of borrowing cash overnight collateralized by Treasury securities. @@ -17,7 +17,7 @@ Floating [interest](../i/interest.md) rates adjust at specified intervals, such ### Components A floating [interest rate](../i/interest_rate.md) typically consists of: -- **[Index](../i/index.md) or [Benchmark](../b/benchmark.md) Rate**: The base rate that fluctuates over time. +- **[Index](../i/index_instrument.md) or [Benchmark](../b/benchmark.md) Rate**: The base rate that fluctuates over time. - **Spread or [Margin](../m/margin.md)**: An additional fixed percentage added to the [benchmark](../b/benchmark.md) rate. This spread represents the [lender](../l/lender.md)'s [profit margin](../p/profit_margin.md) and compensates for various risks. For example, a floating rate [mortgage](../m/mortgage.md) might be expressed as LIBOR + 2%. If the current LIBOR is 1.5%, the [interest](../i/interest.md) for that period would be 3.5%. diff --git a/en/pedia/f/floating_rate_notes.md b/en/pedia/f/floating_rate_notes.md index a4ee9a56..7ee72d28 100644 --- a/en/pedia/f/floating_rate_notes.md +++ b/en/pedia/f/floating_rate_notes.md @@ -1,6 +1,6 @@ # Floating Rate Notes -Floating Rate Notes (FRNs), also known as floaters, are a type of [bond](../b/bond.md) with variable [interest](../i/interest.md) rates that adjust periodically based on a [reference rate](../r/reference_rate.md). Unlike fixed-rate bonds, where [interest](../i/interest.md) payments remain constant throughout the life of the [bond](../b/bond.md), FRNs [offer](../o/offer.md) [interest](../i/interest.md) rates that fluctuate with changes in [underlying](../u/underlying.md) [index](../i/index.md) rates, such as LIBOR (London Interbank Offered Rate) or the [U.S. Treasury](../u/u.s._treasury.md) Bill rate. This feature makes FRNs particularly appealing in environments with fluctuating [interest](../i/interest.md) rates, providing investors with a [hedge](../h/hedge.md) against [interest rate risk](../i/interest_rate_risk.md). +Floating Rate Notes (FRNs), also known as floaters, are a type of [bond](../b/bond.md) with variable [interest](../i/interest.md) rates that adjust periodically based on a [reference rate](../r/reference_rate.md). Unlike fixed-rate bonds, where [interest](../i/interest.md) payments remain constant throughout the life of the [bond](../b/bond.md), FRNs [offer](../o/offer.md) [interest](../i/interest.md) rates that fluctuate with changes in [underlying](../u/underlying.md) [index](../i/index_instrument.md) rates, such as LIBOR (London Interbank Offered Rate) or the [U.S. Treasury](../u/u.s._treasury.md) Bill rate. This feature makes FRNs particularly appealing in environments with fluctuating [interest](../i/interest.md) rates, providing investors with a [hedge](../h/hedge.md) against [interest rate risk](../i/interest_rate_risk.md). ## Key Characteristics of Floating Rate Notes diff --git a/en/pedia/f/floor_area_ratio_(far).md b/en/pedia/f/floor_area_ratio_(far).md index 402ba797..cf8fdf02 100644 --- a/en/pedia/f/floor_area_ratio_(far).md +++ b/en/pedia/f/floor_area_ratio_(far).md @@ -1,6 +1,6 @@ # Floor Area Ratio (FAR) -Floor Area Ratio (FAR), also referred to as Floor Space [Index](../i/index.md) (FSI) in some regions, is a crucial metric used in urban planning and [real estate](../r/real_estate.md) development to define the intensity of land use. It is a ratio of a building's total floor area to the size of the piece of land upon which it is built. FAR is employed by municipalities to control the density of development, promote efficient land use, and shape the urban form, hence making it an essential [factor](../f/factor.md) in urban design, [real estate](../r/real_estate.md) [economics](../e/economics.md), and [zoning](../z/zoning.md) regulations. +Floor Area Ratio (FAR), also referred to as Floor Space [Index](../i/index_instrument.md) (FSI) in some regions, is a crucial metric used in urban planning and [real estate](../r/real_estate.md) development to define the intensity of land use. It is a ratio of a building's total floor area to the size of the piece of land upon which it is built. FAR is employed by municipalities to control the density of development, promote efficient land use, and shape the urban form, hence making it an essential [factor](../f/factor.md) in urban design, [real estate](../r/real_estate.md) [economics](../e/economics.md), and [zoning](../z/zoning.md) regulations. ## Definition and Calculation diff --git a/en/pedia/f/foreign_exchange.md b/en/pedia/f/foreign_exchange.md index 85db560e..5de07317 100644 --- a/en/pedia/f/foreign_exchange.md +++ b/en/pedia/f/foreign_exchange.md @@ -70,7 +70,7 @@ The Forex [market](../m/market.md) operates 24 hours a day, five days a week, wi - **Charts**: [Candlestick](../c/candlestick.md), bar, and line charts to visualize price data. -- **Indicators**: Moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), MACD, [Bollinger Bands](../b/bollinger_band.md). +- **Indicators**: Moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), MACD, [Bollinger Bands](../b/bollinger_band.md). - **Patterns**: Head and shoulders, triangles, flags, and double tops/bottoms. diff --git a/en/pedia/f/forex_(fx).md b/en/pedia/f/forex_(fx).md index 28fe7b7f..f479c9c8 100644 --- a/en/pedia/f/forex_(fx).md +++ b/en/pedia/f/forex_(fx).md @@ -94,7 +94,7 @@ This involves evaluating [economic indicators](../e/economic_indicators.md), new This involves using historical price data and [chart patterns](../c/chart_patterns.md) to forecast future price movements. Key tools and concepts include: - **Moving Averages:** MA, EMA, and SMA help identify trends. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** Measures the speed and change of price movements. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** Measures the speed and change of price movements. - **[Fibonacci Retracement](../f/fibonacci_retracement.md):** Used to identify potential [support and resistance](../s/support_and_resistance.md) levels. - **[Candlestick Patterns](../c/candlestick_patterns.md):** Provide visual cues about [market sentiment](../m/market_sentiment.md). diff --git a/en/pedia/f/form_13f_(sec).md b/en/pedia/f/form_13f_(sec).md index 384f136e..d46c312f 100644 --- a/en/pedia/f/form_13f_(sec).md +++ b/en/pedia/f/form_13f_(sec).md @@ -35,7 +35,7 @@ The data provided in Form 13F is aggregated into a summary report, which is made ## How to Access 13F Filings -Form 13F filings are publicly accessible via the SEC's Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system. Investors can search for filings by using an institutional manager's name or their Central [Index](../i/index.md) Key (CIK) to locate relevant reports. The data can be downloaded in various formats for further analysis. +Form 13F filings are publicly accessible via the SEC's Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system. Investors can search for filings by using an institutional manager's name or their Central [Index](../i/index_instrument.md) Key (CIK) to locate relevant reports. The data can be downloaded in various formats for further analysis. ## Implications for Investors diff --git a/en/pedia/f/form_3.md b/en/pedia/f/form_3.md index b3f76b0f..b64b6934 100644 --- a/en/pedia/f/form_3.md +++ b/en/pedia/f/form_3.md @@ -19,7 +19,7 @@ Newly appointed officers, directors, or persons acquiring beneficial ownership o Form 3 includes several critical sections designed to capture comprehensive information about the filing individual or entity: 1. **Identity of the Filer:** Information about the individual or entity filing the form, including name, address, and relationship to the [issuer](../i/issuer.md) (e.g., officer, director, 10% owner). -2. **[Issuer](../i/issuer.md) Information:** Details about the issuing company, including its name and Central [Index](../i/index.md) Key (CIK) number. +2. **[Issuer](../i/issuer.md) Information:** Details about the issuing company, including its name and Central [Index](../i/index_instrument.md) Key (CIK) number. 3. **Securities Beneficially Owned:** A detailed account of all [equity](../e/equity.md) securities beneficially owned by the filer, categorized by class of securities (e.g., [common stock](../c/common_stock.md), [preferred stock](../p/preferred_stock.md)). 4. **Explanatory Notes:** Space for any additional information or explanations necessary to understand the reported [holdings](../h/holdings.md) fully. diff --git a/en/pedia/f/forward_rate_agreement_(fra).md b/en/pedia/f/forward_rate_agreement_(fra).md index f901c772..fbfb57ba 100644 --- a/en/pedia/f/forward_rate_agreement_(fra).md +++ b/en/pedia/f/forward_rate_agreement_(fra).md @@ -68,7 +68,7 @@ With the global push to phase out LIBOR due to manipulation concerns and transit ### Alternative Reference Rates -As the financial [industry](../i/industry.md) transitions away from LIBOR, new benchmarks such as SOFR, SONIA (Sterling Overnight [Index](../i/index.md) Average), and €STR ([Euro](../e/euro.md) Short-Term Rate) are increasingly used in FRA contracts. This shift requires [market](../m/market.md) participants to adjust their [valuation models](../v/valuation_models.md) and [risk management](../r/risk_management.md) strategies accordingly. +As the financial [industry](../i/industry.md) transitions away from LIBOR, new benchmarks such as SOFR, SONIA (Sterling Overnight [Index](../i/index_instrument.md) Average), and €STR ([Euro](../e/euro.md) Short-Term Rate) are increasingly used in FRA contracts. This shift requires [market](../m/market.md) participants to adjust their [valuation models](../v/valuation_models.md) and [risk management](../r/risk_management.md) strategies accordingly. ### Regulatory Changes diff --git a/en/pedia/f/fractal_indicator.md b/en/pedia/f/fractal_indicator.md index e0e42c7b..5ed2769f 100644 --- a/en/pedia/f/fractal_indicator.md +++ b/en/pedia/f/fractal_indicator.md @@ -98,9 +98,9 @@ def generate_signals(price_data, fractals): signals = [] for i in [range](../r/range.md)(len(price_data)): if i in fractals['bullish']: - signals.append({'type': 'BUY', '[index](../i/index.md)': i}) + signals.append({'type': 'BUY', '[index](../i/index_instrument.md)': i}) elif i in fractals['bearish']: - signals.append({'type': 'SELL', '[index](../i/index.md)': i}) + signals.append({'type': 'SELL', '[index](../i/index_instrument.md)': i}) [return](../r/return.md) signals ``` diff --git a/en/pedia/f/free-float_methodology.md b/en/pedia/f/free-float_methodology.md index 361c61f8..2a8232be 100644 --- a/en/pedia/f/free-float_methodology.md +++ b/en/pedia/f/free-float_methodology.md @@ -20,7 +20,7 @@ To calculate the free-[float](../f/float.md) [market capitalization](../m/market 1. **[Liquidity](../l/liquidity.md)**: It reflects the [liquidity](../l/liquidity.md) of the [shares](../s/shares.md) in the [market](../m/market.md), providing a more accurate measure for investors. 2. **[Market Dynamics](../m/market_dynamics.md)**: It considers the actual [market dynamics](../m/market_dynamics.md) by focusing on [shares](../s/shares.md) available for trading. -3. **[Index](../i/index.md) Representation**: Indices that use free-[float](../f/float.md) methodology are considered more reflective of active [market](../m/market.md) conditions. +3. **[Index](../i/index_instrument.md) Representation**: Indices that use free-[float](../f/float.md) methodology are considered more reflective of active [market](../m/market.md) conditions. ## Free-Float Percentage @@ -32,13 +32,13 @@ This metric is crucial for investors and financial analysts in assessing the tra ## Application in Indices -Many global stock indices use the free-[float](../f/float.md) methodology to determine the weight of individual [stocks](../s/stock.md) within the [index](../i/index.md). This approach enhances the [index](../i/index.md)'s representation of the [market](../m/market.md) by focusing on the actively tradable [shares](../s/shares.md). Major indices that use free-[float](../f/float.md) methodology include: +Many global stock indices use the free-[float](../f/float.md) methodology to determine the weight of individual [stocks](../s/stock.md) within the [index](../i/index_instrument.md). This approach enhances the [index](../i/index_instrument.md)'s representation of the [market](../m/market.md) by focusing on the actively tradable [shares](../s/shares.md). Major indices that use free-[float](../f/float.md) methodology include: 1. **S&P 500**: Managed by S&P Dow Jones Indices, which uses free-[float](../f/float.md) adjustment in its calculations. - [S&P 500 Methodology](https://www.spglobal.com/spdji/en/indices/equity/sp-500/#overview) 2. **MSCI Indices**: MSCI employs free-[float](../f/float.md) adjusted [market capitalization](../m/market_capitalization.md) for its global indices. - [MSCI Index Methodology](https://www.msci.com/index-methodology) -3. **FTSE 100**: [FTSE Russell](../f/ftse_russell.md) uses free-[float](../f/float.md) methodology to calculate the [market](../m/market.md) cap-[weighted](../w/weighted.md) [index](../i/index.md). +3. **FTSE 100**: [FTSE Russell](../f/ftse_russell.md) uses free-[float](../f/float.md) methodology to calculate the [market](../m/market.md) cap-[weighted](../w/weighted.md) [index](../i/index_instrument.md). - [FTSE Russell Methodology](https://www.ftserussell.com/products/indices/uk) ## Benefits of Free-Float Methodology @@ -63,7 +63,7 @@ Corporate actions such as stock splits, rights issues, and [share buybacks](../s ### Case Study: Apple Inc. -Apple Inc. (AAPL) is a prime example of how free-[float](../f/float.md) methodology can impact [market capitalization](../m/market_capitalization.md) and [index](../i/index.md) weighting. Being a high-profile company with significant insider [holdings](../h/holdings.md), the free-[float](../f/float.md) adjustment provides a more accurate [market value](../m/market_value.md) for inclusion in indices like the S&P 500 and [Nasdaq](../n/nasdaq.md). +Apple Inc. (AAPL) is a prime example of how free-[float](../f/float.md) methodology can impact [market capitalization](../m/market_capitalization.md) and [index](../i/index_instrument.md) weighting. Being a high-profile company with significant insider [holdings](../h/holdings.md), the free-[float](../f/float.md) adjustment provides a more accurate [market value](../m/market_value.md) for inclusion in indices like the S&P 500 and [Nasdaq](../n/nasdaq.md). ### Example: Saudi Aramco IPO diff --git a/en/pedia/f/ftse_russell.md b/en/pedia/f/ftse_russell.md index be9bb117..fe64b0fa 100644 --- a/en/pedia/f/ftse_russell.md +++ b/en/pedia/f/ftse_russell.md @@ -1,16 +1,16 @@ # FTSE Russell ## Overview -FTSE Russell is a global leader in the creation and management of indexes, providing a wide [range](../r/range.md) of [index](../i/index.md)-related data and analytics services. Part of the London Stock [Exchange](../e/exchange.md) Group (LSEG), FTSE Russell offers comprehensive solutions for investors, [asset](../a/asset.md) managers, and financial institutions to measure and [benchmark](../b/benchmark.md) [market](../m/market.md) performance. Their indexes cover [multiple](../m/multiple.md) [asset](../a/asset.md) classes, including equities, [fixed income](../f/fixed_income.md), and real assets, across developed, emerging, and frontier markets. +FTSE Russell is a global leader in the creation and management of indexes, providing a wide [range](../r/range.md) of [index](../i/index_instrument.md)-related data and analytics services. Part of the London Stock [Exchange](../e/exchange.md) Group (LSEG), FTSE Russell offers comprehensive solutions for investors, [asset](../a/asset.md) managers, and financial institutions to measure and [benchmark](../b/benchmark.md) [market](../m/market.md) performance. Their indexes cover [multiple](../m/multiple.md) [asset](../a/asset.md) classes, including equities, [fixed income](../f/fixed_income.md), and real assets, across developed, emerging, and frontier markets. ## Features -1. **[Index](../i/index.md) Creation and Management**: Development and maintenance of a wide [range](../r/range.md) of indexes that track [market](../m/market.md) performance across various [asset](../a/asset.md) classes and regions. +1. **[Index](../i/index_instrument.md) Creation and Management**: Development and maintenance of a wide [range](../r/range.md) of indexes that track [market](../m/market.md) performance across various [asset](../a/asset.md) classes and regions. 2. **[Equity](../e/equity.md) Indexes**: Extensive family of [equity](../e/equity.md) indexes, including the FTSE 100, Russell 2000, and global benchmarks. 3. **[Fixed Income](../f/fixed_income.md) Indexes**: Comprehensive suite of [fixed income](../f/fixed_income.md) indexes covering government, corporate, and other [bond](../b/bond.md) markets. 4. **[Factor](../f/factor.md) and Thematic Indexes**: Specialized indexes that focus on factors such as [value](../v/value.md), growth, and dividends, as well as thematic trends like ESG (Environmental, Social, and Governance). -5. **Custom [Index](../i/index.md) Solutions**: Tailored [index](../i/index.md) solutions to meet specific client needs and investment strategies. -6. **Data and Analytics**: Access to [index](../i/index.md) data, historical performance, and advanced analytics tools. -7. **[Index](../i/index.md) Licensing**: Licensing of indexes for use in financial products, including ETFs, mutual funds, and [derivatives](../d/derivatives.md). +5. **Custom [Index](../i/index_instrument.md) Solutions**: Tailored [index](../i/index_instrument.md) solutions to meet specific client needs and investment strategies. +6. **Data and Analytics**: Access to [index](../i/index_instrument.md) data, historical performance, and advanced analytics tools. +7. **[Index](../i/index_instrument.md) Licensing**: Licensing of indexes for use in financial products, including ETFs, mutual funds, and [derivatives](../d/derivatives.md). 8. **ESG and Sustainable [Investing](../i/investing.md)**: Indexes and analytics that support sustainable investment strategies and ESG integration. 9. **[Real Estate](../r/real_estate.md) Indexes**: Indexes tracking the performance of [real estate](../r/real_estate.md) investment trusts (REITs) and other [real estate](../r/real_estate.md) assets. 10. **Benchmarking**: Tools and services for benchmarking investment performance against [industry](../i/industry.md) standards. @@ -21,16 +21,16 @@ FTSE Russell is a global leader in the creation and management of indexes, provi - **[Fixed Income](../f/fixed_income.md) Indexes**: Broad coverage of global [fixed income](../f/fixed_income.md) markets, including government and corporate bonds. - **[Factor](../f/factor.md) Indexes**: Indexes that focus on specific investment factors such as size, [value](../v/value.md), [momentum](../m/momentum.md), and quality. - **Thematic Indexes**: Indexes tracking thematic investment trends like technology, innovation, and sustainability. -- **Custom [Index](../i/index.md) Solutions**: Customizable [index](../i/index.md) solutions to align with specific investment goals and criteria. +- **Custom [Index](../i/index_instrument.md) Solutions**: Customizable [index](../i/index_instrument.md) solutions to align with specific investment goals and criteria. - **ESG Indexes**: Indexes and data services supporting ESG-focused investment strategies. -- **Data Services**: Comprehensive data and analytics tools for tracking [index](../i/index.md) performance and conducting [market research](../m/market_research.md). +- **Data Services**: Comprehensive data and analytics tools for tracking [index](../i/index_instrument.md) performance and conducting [market research](../m/market_research.md). ## Integrations FTSE Russell integrates with various financial platforms, data providers, and investment tools to enhance its usability. Some notable integrations include: -- **Trading Platforms**: Integration with major trading platforms for seamless access to [index](../i/index.md) data and analytics. +- **Trading Platforms**: Integration with major trading platforms for seamless access to [index](../i/index_instrument.md) data and analytics. - **[Financial Analysis](../f/financial_analysis.md) Tools**: Compatibility with tools like [Bloomberg](../b/bloomberg.md), [Reuters](../r/reuters.md), and [FactSet](../f/factset.md) for advanced [financial analysis](../f/financial_analysis.md) and [portfolio management](../p/portfolio_management.md). -- **ETFs and Mutual Funds**: [Index](../i/index.md) licensing for the creation of [exchange](../e/exchange.md)-traded funds (ETFs) and mutual funds. +- **ETFs and Mutual Funds**: [Index](../i/index_instrument.md) licensing for the creation of [exchange](../e/exchange.md)-traded funds (ETFs) and mutual funds. - **APIs**: Provides APIs for custom integrations and automated data retrieval. - **Third-Party Applications**: Support for various third-party financial applications and services. @@ -39,9 +39,9 @@ FTSE Russell provides extensive support through detailed documentation, user gui ## Use Cases - **Institutional Investors**: Utilized by institutional investors for benchmarking performance, [asset allocation](../a/asset_allocation.md), and [portfolio management](../p/portfolio_management.md). -- **[Asset](../a/asset.md) Managers**: Provides [asset](../a/asset.md) managers with tools and data to develop and manage [index](../i/index.md)-based investment products. +- **[Asset](../a/asset.md) Managers**: Provides [asset](../a/asset.md) managers with tools and data to develop and manage [index](../i/index_instrument.md)-based investment products. - **ETF Providers**: Supports ETF providers in creating and managing [exchange](../e/exchange.md)-traded funds based on FTSE Russell indexes. -- **Quantitative Analysts**: Enables quantitative analysts to develop and test investment models using comprehensive [index](../i/index.md) data. -- **[Market](../m/market.md) Researchers**: Assists [market](../m/market.md) researchers in conducting in-depth studies and analysis of [market](../m/market.md) trends and [index](../i/index.md) performance. +- **Quantitative Analysts**: Enables quantitative analysts to develop and test investment models using comprehensive [index](../i/index_instrument.md) data. +- **[Market](../m/market.md) Researchers**: Assists [market](../m/market.md) researchers in conducting in-depth studies and analysis of [market](../m/market.md) trends and [index](../i/index_instrument.md) performance. -FTSE Russell’s extensive [index](../i/index.md) offerings, [robust](../r/robust.md) data services, and global reach make it a crucial partner for investors and financial professionals seeking reliable benchmarks and innovative investment solutions. +FTSE Russell’s extensive [index](../i/index_instrument.md) offerings, [robust](../r/robust.md) data services, and global reach make it a crucial partner for investors and financial professionals seeking reliable benchmarks and innovative investment solutions. diff --git a/en/pedia/f/full-time_day_trading.md b/en/pedia/f/full-time_day_trading.md index 1a3c7730..fcd4e691 100644 --- a/en/pedia/f/full-time_day_trading.md +++ b/en/pedia/f/full-time_day_trading.md @@ -18,7 +18,7 @@ **[Momentum trading](../m/momentum_trading.md)** focuses on harnessing price movements: - Identifying assets that are trending significantly in one direction with higher than average trading volumes. -- Utilizing [technical indicators](../t/technical_indicators.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) and moving averages to confirm the [momentum](../m/momentum.md) direction. +- Utilizing [technical indicators](../t/technical_indicators.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) and moving averages to confirm the [momentum](../m/momentum.md) direction. **Common [Momentum](../m/momentum.md) Strategies:** - **News-Based Trading:** Entering positions based on the impacts of breaking news or economic reports. diff --git a/en/pedia/f/fund.md b/en/pedia/f/fund.md index 8fda84c5..06917707 100644 --- a/en/pedia/f/fund.md +++ b/en/pedia/f/fund.md @@ -8,7 +8,7 @@ A **Fund** is a pool of [money](../m/money.md) collected from [multiple](../m/mu 2. **[Exchange](../e/exchange.md)-Traded Funds (ETFs)**: Similar to mutual funds but traded on stock exchanges like individual [stocks](../s/stock.md). ETFs [offer](../o/offer.md) flexibility, lower costs, and tax [efficiency](../e/efficiency.md). 3. **[Hedge](../h/hedge.md) Funds**: Private investment funds that employ various strategies to earn active returns for their investors. These strategies can include leveraging, [derivatives](../d/derivatives.md), and [short selling](../s/short_selling.md). [Hedge](../h/hedge.md) funds are typically [open](../o/open.md) only to accredited investors. 4. **Pension Funds**: Investment pools that collect and invest funds set aside for retirement benefits. Managed by professional fund managers, these funds aim to generate stable returns to meet future pension [obligations](../o/obligation.md). -5. **[Index](../i/index.md) Funds**: Mutual funds or ETFs designed to replicate the performance of a specific [index](../i/index.md), such as the S&P 500. They [offer](../o/offer.md) broad [market exposure](../m/market_exposure.md) and typically have lower fees due to passive management. +5. **[Index](../i/index_instrument.md) Funds**: Mutual funds or ETFs designed to replicate the performance of a specific [index](../i/index_instrument.md), such as the S&P 500. They [offer](../o/offer.md) broad [market exposure](../m/market_exposure.md) and typically have lower fees due to passive management. 6. **[Money Market](../m/money_market.md) Funds**: Mutual funds that invest in short-term, high-quality [debt](../d/debt.md) securities. These funds [offer](../o/offer.md) high [liquidity](../l/liquidity.md) and low [risk](../r/risk.md), making them suitable for short-term investment goals. 7. **[Real Estate](../r/real_estate.md) Investment Trusts (REITs)**: Funds that invest in [income](../i/income.md)-generating [real estate](../r/real_estate.md) properties. REITs provide investors with exposure to [real estate](../r/real_estate.md) markets without the need to directly own properties. @@ -26,7 +26,7 @@ A **Fund** is a pool of [money](../m/money.md) collected from [multiple](../m/mu ## Examples 1. **Vanguard Total Stock [Market Index](../m/market_index.md) Fund**: A [mutual fund](../m/mutual_fund.md) that aims to replicate the performance of the entire U.S. [stock market](../s/stock_market.md). -2. **SPDR S&P 500 ETF (SPY)**: An ETF that tracks the S&P 500 [index](../i/index.md), providing investors with exposure to 500 of the largest U.S. companies. +2. **SPDR S&P 500 ETF (SPY)**: An ETF that tracks the S&P 500 [index](../i/index_instrument.md), providing investors with exposure to 500 of the largest U.S. companies. 3. **Bridgewater Pure [Alpha](../a/alpha.md) Fund**: A [hedge fund](../h/hedge_fund.md) known for its macroeconomic investment strategies and strong historical performance. 4. **California Public Employees' Retirement System (CalPERS)**: One of the largest pension funds in the U.S., managing retirement benefits for California's public employees. 5. **T. Rowe Price [Growth Stock](../g/growth_stock.md) Fund**: A [mutual fund](../m/mutual_fund.md) focusing on [growth stocks](../g/growth_stocks.md) with the potential for [capital](../c/capital.md) appreciation. diff --git a/en/pedia/f/fund_flows_analysis.md b/en/pedia/f/fund_flows_analysis.md index fa887897..3c148fb7 100644 --- a/en/pedia/f/fund_flows_analysis.md +++ b/en/pedia/f/fund_flows_analysis.md @@ -23,7 +23,7 @@ To interpret [fund](../f/fund.md) flows meaningfully, it’s important to catego - **[Bond](../b/bond.md) Funds**: Investments in bonds. - **Mixed-[Asset](../a/asset.md) Funds**: Investments in a combination of [stocks](../s/stock.md) and bonds. - **Sector Funds**: Investments in specific [industry](../i/industry.md) sectors like technology, healthcare, etc. -- **[Index](../i/index.md) Funds**: Funds that track a specific [index](../i/index.md) like the S&P 500. +- **[Index](../i/index_instrument.md) Funds**: Funds that track a specific [index](../i/index_instrument.md) like the S&P 500. ## Data Sources diff --git a/en/pedia/f/fund_performance_evaluation.md b/en/pedia/f/fund_performance_evaluation.md index 195db122..97f72c6f 100644 --- a/en/pedia/f/fund_performance_evaluation.md +++ b/en/pedia/f/fund_performance_evaluation.md @@ -20,7 +20,7 @@ Evaluating the performance of investment funds is critical for investors, [fund] - **[Sortino Ratio](../s/sortino_ratio.md)**: Focuses on [downside risk](../d/downside_risk.md), helping to distinguish between harmful [volatility](../v/volatility.md) and overall [volatility](../v/volatility.md). Calculated as \(\frac{(R_p - R_f)}{\sigma_{d}}\), where \(\sigma_d\) is the [standard deviation](../s/standard_deviation.md) of downside [return](../r/return.md). ### 4. **Benchmark Comparison** - Funds are often compared to specific benchmarks to evaluate performance. Common benchmarks include stock indices like the S&P 500 or MSCI World [Index](../i/index.md) for [equity](../e/equity.md) funds. The performance is usually measured in terms of [excess return](../e/excess_return.md) or [alpha](../a/alpha.md), which indicates how much better (or worse) a [fund](../f/fund.md) has performed compared to the [benchmark](../b/benchmark.md). + Funds are often compared to specific benchmarks to evaluate performance. Common benchmarks include stock indices like the S&P 500 or MSCI World [Index](../i/index_instrument.md) for [equity](../e/equity.md) funds. The performance is usually measured in terms of [excess return](../e/excess_return.md) or [alpha](../a/alpha.md), which indicates how much better (or worse) a [fund](../f/fund.md) has performed compared to the [benchmark](../b/benchmark.md). ### 5. **Performance Attribution** [Performance attribution](../p/performance_attribution.md) analyzes the sources of a [fund](../f/fund.md)'s returns. This can be broken down into: @@ -104,7 +104,7 @@ Several tools and [software platforms](../s/software_platforms_for_trading.md) c - Website: [Fidelity Contrafund](https://fundresearch.fidelity.com/mutual-funds/summary/316071109) ### 3. **iShares MSCI Emerging Markets ETF (EEM)** - This ETF seeks to replicate the performance of the MSCI Emerging Markets [index](../i/index.md). [Performance metrics](../p/performance_metrics.md) include [tracking error](../t/tracking_error.md), [expense](../e/expense.md) ratios, and [market risk](../m/market_risk.md) as indicated by its [beta](../b/beta.md). + This ETF seeks to replicate the performance of the MSCI Emerging Markets [index](../i/index_instrument.md). [Performance metrics](../p/performance_metrics.md) include [tracking error](../t/tracking_error.md), [expense](../e/expense.md) ratios, and [market risk](../m/market_risk.md) as indicated by its [beta](../b/beta.md). - Website: [iShares MSCI Emerging Markets ETF](https://www.ishares.com/us/products/239637/ishares-msci-emerging-markets-etf) diff --git a/en/pedia/f/fundamental_indexation.md b/en/pedia/f/fundamental_indexation.md index 35830021..b03b3b0f 100644 --- a/en/pedia/f/fundamental_indexation.md +++ b/en/pedia/f/fundamental_indexation.md @@ -37,7 +37,7 @@ In fundamental [indexation](../i/indexation.md), [stocks](../s/stock.md) are sel ### Rebalancing -Regular [rebalancing](../r/rebalancing.md) is a critical element of fundamental [indexation](../i/indexation.md). It involves adjusting the weights of the [index](../i/index.md) constituents to reflect current fundamental metrics. This process ensures that the [index](../i/index.md) can stay true to its goal of capturing the economic footprint of firms. [Rebalancing](../r/rebalancing.md) criteria and frequency can vary but typically occur annually or semi-annually. +Regular [rebalancing](../r/rebalancing.md) is a critical element of fundamental [indexation](../i/indexation.md). It involves adjusting the weights of the [index](../i/index_instrument.md) constituents to reflect current fundamental metrics. This process ensures that the [index](../i/index_instrument.md) can stay true to its goal of capturing the economic footprint of firms. [Rebalancing](../r/rebalancing.md) criteria and frequency can vary but typically occur annually or semi-annually. ## Benefits of Fundamental Indexation @@ -61,11 +61,11 @@ By focusing on [underlying](../u/underlying.md) [business](../b/business.md) fun ### Subjectivity in Metrics -One criticism of fundamental [indexation](../i/indexation.md) is the subjectivity involved in selecting and weighing the fundamental metrics. Different methodologies can lead to varied [index](../i/index.md) compositions and performance. The process involves assumptions and [judgment](../j/judgment.md) calls that could affect the outcomes. +One criticism of fundamental [indexation](../i/indexation.md) is the subjectivity involved in selecting and weighing the fundamental metrics. Different methodologies can lead to varied [index](../i/index_instrument.md) compositions and performance. The process involves assumptions and [judgment](../j/judgment.md) calls that could affect the outcomes. ### Accounting Practices -Fundamental metrics are derived from [accounting](../a/accounting.md) data, which can differ significantly based on [accounting](../a/accounting.md) standards and practices. Discrepancies in how companies report [earnings](../e/earnings.md), [book value](../b/book_value.md), or other metrics can affect the consistency and reliability of the [index](../i/index.md). +Fundamental metrics are derived from [accounting](../a/accounting.md) data, which can differ significantly based on [accounting](../a/accounting.md) standards and practices. Discrepancies in how companies report [earnings](../e/earnings.md), [book value](../b/book_value.md), or other metrics can affect the consistency and reliability of the [index](../i/index_instrument.md). ### Market Timing and Turnover @@ -75,7 +75,7 @@ The need for periodic [rebalancing](../r/rebalancing.md) to reflect updated fund ### Research Affiliates -One of the most prominent advocates of fundamental [indexation](../i/indexation.md) is Research Affiliates, founded by Rob Arnott. The company has been at the forefront of developing and promoting fundamentally [weighted](../w/weighted.md) indices. Research Affiliates' RAFI (Research Affiliates Fundamental [Index](../i/index.md)) series is a pioneering example of this approach, providing investors an alternative to traditional [market](../m/market.md)-cap [weighted](../w/weighted.md) indices. +One of the most prominent advocates of fundamental [indexation](../i/indexation.md) is Research Affiliates, founded by Rob Arnott. The company has been at the forefront of developing and promoting fundamentally [weighted](../w/weighted.md) indices. Research Affiliates' RAFI (Research Affiliates Fundamental [Index](../i/index_instrument.md)) series is a pioneering example of this approach, providing investors an alternative to traditional [market](../m/market.md)-cap [weighted](../w/weighted.md) indices. [Research Affiliates](https://www.researchaffiliates.com) @@ -87,7 +87,7 @@ WisdomTree is another notable name in the space, [offering](../o/offering.md) va ### Charles Schwab -[Charles Schwab](../c/charles_schwab.md) offers fundamentally [weighted index funds](../w/weighted_index_funds.md) under their Fundamental [Index](../i/index.md) Funds series. These funds use fundamental metrics to determine the [index](../i/index.md) composition and weightings, providing investors with diversified exposure based on economic fundamentals. +[Charles Schwab](../c/charles_schwab.md) offers fundamentally [weighted index funds](../w/weighted_index_funds.md) under their Fundamental [Index](../i/index_instrument.md) Funds series. These funds use fundamental metrics to determine the [index](../i/index_instrument.md) composition and weightings, providing investors with diversified exposure based on economic fundamentals. [Charles Schwab](https://www.schwab.com) @@ -125,7 +125,7 @@ Advancements in [data analytics](../d/data_analytics.md) and financial technolog Environmental, Social, and Governance (ESG) considerations are increasingly being integrated into fundamental [indexation](../i/indexation.md). This [trend](../t/trend.md) is driven by the growing [demand](../d/demand.md) for sustainable [investing](../i/investing.md) and the recognition that ESG factors can have a material impact on long-term [financial performance](../f/financial_performance.md). -By combining ESG metrics with traditional financial fundamentals, [index](../i/index.md) providers can [offer](../o/offer.md) products that align with both financial and ethical investment goals. +By combining ESG metrics with traditional financial fundamentals, [index](../i/index_instrument.md) providers can [offer](../o/offer.md) products that align with both financial and ethical investment goals. ## Conclusion diff --git a/en/pedia/f/futures.md b/en/pedia/f/futures.md index c09a6f40..559bca81 100644 --- a/en/pedia/f/futures.md +++ b/en/pedia/f/futures.md @@ -8,7 +8,7 @@ Futures are standardized financial contracts that obligate the buyer to purchase The key components of a [futures contract](../f/futures_contract.md) include: -1. **[Underlying Asset](../u/underlying_asset.md)**: The specific [commodity](../c/commodity.md), [financial instrument](../f/financial_instrument.md), or [index](../i/index.md) that the [futures contract](../f/futures_contract.md) represents. +1. **[Underlying Asset](../u/underlying_asset.md)**: The specific [commodity](../c/commodity.md), [financial instrument](../f/financial_instrument.md), or [index](../i/index_instrument.md) that the [futures contract](../f/futures_contract.md) represents. 2. **Contract Size**: The quantity of the [underlying asset](../u/underlying_asset.md) that the contract represents. 3. **[Expiration Date](../e/expiration_date.md)**: The date on which the contract is settled. 4. **Settlement**: The process of fulfilling the terms of the contract, either through [physical delivery](../p/physical_delivery_in_trading.md) of the [asset](../a/asset.md) or through cash settlement. @@ -26,7 +26,7 @@ These contracts cover financial instruments or indices rather than physical comm ### Stock Index Futures -These are [futures contracts](../f/futures_contracts.md) based on a stock [index](../i/index.md), such as the S&P 500 or the [NASDAQ](../n/nasdaq.md)-100. Rather than delivering [stocks](../s/stock.md), these contracts are usually settled in cash. +These are [futures contracts](../f/futures_contracts.md) based on a stock [index](../i/index_instrument.md), such as the S&P 500 or the [NASDAQ](../n/nasdaq.md)-100. Rather than delivering [stocks](../s/stock.md), these contracts are usually settled in cash. ### Currency Futures diff --git a/en/pedia/f/futures_arbitrage.md b/en/pedia/f/futures_arbitrage.md index b5ef3469..c30d50cd 100644 --- a/en/pedia/f/futures_arbitrage.md +++ b/en/pedia/f/futures_arbitrage.md @@ -1,6 +1,6 @@ # Futures Arbitrage -[Futures](../f/futures.md) [arbitrage](../a/arbitrage.md) is a [trading strategy](../t/trading_strategy.md) that aims to [profit](../p/profit.md) from discrepancies in the prices of [futures contracts](../f/futures_contracts.md) in different markets or at different times. This strategy is commonly employed by traders looking to exploit inefficiencies and ensure [market](../m/market.md) [equilibrium](../e/equilibrium.md). [Futures](../f/futures.md) [arbitrage](../a/arbitrage.md) can be categorized into various forms, including [index](../i/index.md) [arbitrage](../a/arbitrage.md), cash-and-carry [arbitrage](../a/arbitrage.md), and [futures](../f/futures.md)-[futures](../f/futures.md) [arbitrage](../a/arbitrage.md). Below is an in-depth exploration of this strategy, including definitions, methodologies, strategies, examples, and [risk](../r/risk.md) considerations. +[Futures](../f/futures.md) [arbitrage](../a/arbitrage.md) is a [trading strategy](../t/trading_strategy.md) that aims to [profit](../p/profit.md) from discrepancies in the prices of [futures contracts](../f/futures_contracts.md) in different markets or at different times. This strategy is commonly employed by traders looking to exploit inefficiencies and ensure [market](../m/market.md) [equilibrium](../e/equilibrium.md). [Futures](../f/futures.md) [arbitrage](../a/arbitrage.md) can be categorized into various forms, including [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md), cash-and-carry [arbitrage](../a/arbitrage.md), and [futures](../f/futures.md)-[futures](../f/futures.md) [arbitrage](../a/arbitrage.md). Below is an in-depth exploration of this strategy, including definitions, methodologies, strategies, examples, and [risk](../r/risk.md) considerations. ## Definition and Explanation @@ -16,7 +16,7 @@ A [futures contract](../f/futures_contract.md) is a standardized legal agreement ## Types of Futures Arbitrage ### Index Arbitrage -[Index](../i/index.md) [arbitrage](../a/arbitrage.md) is the process of exploiting price differences between a stock [index](../i/index.md) and its corresponding [futures contract](../f/futures_contract.md). For example, if the [futures](../f/futures.md) price of an [index](../i/index.md) is higher than the actual [index](../i/index.md) [value](../v/value.md), an [arbitrageur](../a/arbitrageur.md) can sell the [futures contract](../f/futures_contract.md) and buy the [underlying](../u/underlying.md) [stocks](../s/stock.md) in the [index](../i/index.md). When prices converge, the [arbitrageur](../a/arbitrageur.md) profits from the difference. +[Index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) is the process of exploiting price differences between a stock [index](../i/index_instrument.md) and its corresponding [futures contract](../f/futures_contract.md). For example, if the [futures](../f/futures.md) price of an [index](../i/index_instrument.md) is higher than the actual [index](../i/index_instrument.md) [value](../v/value.md), an [arbitrageur](../a/arbitrageur.md) can sell the [futures contract](../f/futures_contract.md) and buy the [underlying](../u/underlying.md) [stocks](../s/stock.md) in the [index](../i/index_instrument.md). When prices converge, the [arbitrageur](../a/arbitrageur.md) profits from the difference. ### Cash-and-Carry Arbitrage Cash-and-carry [arbitrage](../a/arbitrage.md) involves buying the [underlying asset](../u/underlying_asset.md) and selling a [futures contract](../f/futures_contract.md) on that [asset](../a/asset.md) when the [futures](../f/futures.md) price is higher than the cost of carrying the [asset](../a/asset.md) until the delivery date. This strategy requires holding the physical [asset](../a/asset.md) until the settlement of the [futures contract](../f/futures_contract.md). diff --git a/en/pedia/f/futures_contract.md b/en/pedia/f/futures_contract.md index 2b111a70..1a67ed23 100644 --- a/en/pedia/f/futures_contract.md +++ b/en/pedia/f/futures_contract.md @@ -22,7 +22,7 @@ These contracts are based on physical goods such as agricultural products (corn, These include contracts based on financial instruments like currencies (EUR/USD), [interest](../i/interest.md) rates ([U.S. Treasury](../u/u.s._treasury.md) bills), and stock indices (S&P 500, [NASDAQ](../n/nasdaq.md)). ### Index Futures -[Index futures](../i/index_futures.md) allow traders to bet on the movement of a stock [index](../i/index.md) rather than individual [stocks](../s/stock.md), [offering](../o/offering.md) a way to [hedge](../h/hedge.md) or speculate on broader [market](../m/market.md) movements. +[Index futures](../i/index_futures.md) allow traders to bet on the movement of a stock [index](../i/index_instrument.md) rather than individual [stocks](../s/stock.md), [offering](../o/offering.md) a way to [hedge](../h/hedge.md) or speculate on broader [market](../m/market.md) movements. ## Applications and Uses diff --git a/en/pedia/g/g10_economic_indicators.md b/en/pedia/g/g10_economic_indicators.md index c0a16a69..bada8a65 100644 --- a/en/pedia/g/g10_economic_indicators.md +++ b/en/pedia/g/g10_economic_indicators.md @@ -20,8 +20,8 @@ The [unemployment rate](../u/unemployment_rate.md) shows the percentage of the l [Inflation](../i/inflation.md) is the rate at which the general level of prices for goods and services is rising. Central banks closely monitor this [indicator](../i/indicator.md) to maintain economic stability. - **[European Union](../e/european_union_(eu).md)**: Eurostat publishes harmonized indices of consumer prices (HICP) monthly, making it easier to compare [inflation](../i/inflation.md) rates across EU countries. Visit [here](https://ec.europa.eu/eurostat). -- **United States**: The BLS provides a Consumer Price [Index](../i/index.md) (CPI) monthly. The CPI measures the average change over time in the prices paid by urban consumers for a [market](../m/market.md) basket of [consumer goods](../c/consumer_goods.md) and services. More information is found [here](https://www.bls.gov/cpi/). -- **Japan**: The [Statistics](../s/statistics.md) Bureau of Japan releases monthly data on the Consumer Price [Index](../i/index.md) (CPI). More details can be accessed [here](https://www.stat.go.jp/english/data/cpi/index.htm). +- **United States**: The BLS provides a Consumer Price [Index](../i/index_instrument.md) (CPI) monthly. The CPI measures the average change over time in the prices paid by urban consumers for a [market](../m/market.md) basket of [consumer goods](../c/consumer_goods.md) and services. More information is found [here](https://www.bls.gov/cpi/). +- **Japan**: The [Statistics](../s/statistics.md) Bureau of Japan releases monthly data on the Consumer Price [Index](../i/index_instrument.md) (CPI). More details can be accessed [here](https://www.stat.go.jp/english/data/cpi/index.htm). ### Interest Rates [Interest](../i/interest.md) rates are the rates at which [interest](../i/interest.md) is paid by borrowers for the use of [money](../m/money.md) that they borrow from a [lender](../l/lender.md). Central banks manipulate [interest](../i/interest.md) rates as a [monetary policy](../m/monetary_policy.md) tool to manage [inflation](../i/inflation.md) and [economic growth](../e/economic_growth.md). @@ -40,16 +40,16 @@ The [trade](../t/trade.md) balance is the difference between a country's exports ### Consumer Confidence Consumer confidence measures how optimistic or pessimistic consumers are regarding their expected financial situation. It reflects overall economic health and consumer spending habits. -- **United States**: The Conference Board publishes a monthly Consumer Confidence [Index](../i/index.md) (CCI). Visit [here](https://www.conference-board.org) for more information. -- **United Kingdom**: The GfK Consumer Confidence [Index](../i/index.md) is a respected [indicator](../i/indicator.md) and is published monthly. Details can be found [here](https://www.gfk.com). -- **Japan**: The Cabinet Office publishes a monthly Consumer Confidence [Index](../i/index.md). More information can be accessed [here](https://www.esri.cao.go.jp/en/stat/shouhi/shouhi-e.html). +- **United States**: The Conference Board publishes a monthly Consumer Confidence [Index](../i/index_instrument.md) (CCI). Visit [here](https://www.conference-board.org) for more information. +- **United Kingdom**: The GfK Consumer Confidence [Index](../i/index_instrument.md) is a respected [indicator](../i/indicator.md) and is published monthly. Details can be found [here](https://www.gfk.com). +- **Japan**: The Cabinet Office publishes a monthly Consumer Confidence [Index](../i/index_instrument.md). More information can be accessed [here](https://www.esri.cao.go.jp/en/stat/shouhi/shouhi-e.html). ### Manufacturing Index [Manufacturing](../m/manufacturing.md) indices gauge the health of the [manufacturing](../m/manufacturing.md) sector, which is critical for understanding the industrial performance and future economic activity. - **United States**: The Institute for [Supply](../s/supply.md) Management (ISM) releases a monthly [Manufacturing](../m/manufacturing.md) PMI. Details can be found [here](https://www.ismworld.org). -- **Germany**: The ifo Institute publishes the German Industrial Production [Index](../i/index.md). More information is available [here](https://www.ifo.de/en). -- **Japan**: The Ministry of [Economy](../e/economy.md), [Trade](../t/trade.md) and [Industry](../i/industry.md) releases the Industrial Production [Index](../i/index.md) on a monthly [basis](../b/basis.md). More details can be accessed [here](https://www.meti.go.jp/english/statistics/index.html). +- **Germany**: The ifo Institute publishes the German Industrial Production [Index](../i/index_instrument.md). More information is available [here](https://www.ifo.de/en). +- **Japan**: The Ministry of [Economy](../e/economy.md), [Trade](../t/trade.md) and [Industry](../i/industry.md) releases the Industrial Production [Index](../i/index_instrument.md) on a monthly [basis](../b/basis.md). More details can be accessed [here](https://www.meti.go.jp/english/statistics/index.html). ### Retail Sales [Retail sales](../r/retail_sales.md) represent consumer spending on goods and services. It’s an essential [indicator](../i/indicator.md) of consumer behavior and economic health. @@ -68,7 +68,7 @@ Housing [market indicators](../m/market_indicators.md) like [housing starts](../ ### Business Confidence [Business](../b/business.md) confidence indicates the sentiment among businesses about the current economic situation and expectations for the future. It’s essential for understanding forthcoming [business activities](../b/business_activities.md) and investments. -- **Germany**: The ifo [Business](../b/business.md) Climate [Index](../i/index.md) is a respected [indicator](../i/indicator.md) of [business](../b/business.md) confidence in Germany. More information can be found [here](https://www.ifo.de/en). +- **Germany**: The ifo [Business](../b/business.md) Climate [Index](../i/index_instrument.md) is a respected [indicator](../i/indicator.md) of [business](../b/business.md) confidence in Germany. More information can be found [here](https://www.ifo.de/en). - **Japan**: The [Bank](../b/bank.md) of Japan publishes the Tankan survey, which measures [business](../b/business.md) sentiment in Japan. More details can be accessed [here](https://www.boj.or.jp/en). - **France**: INSEE provides the monthly [Business](../b/business.md) Climate [Indicator](../i/indicator.md) for France. Visit [here](https://www.insee.fr/en/statistiques) for more information. diff --git a/en/pedia/g/g7_economic_indicators.md b/en/pedia/g/g7_economic_indicators.md index 90808509..3890e0af 100644 --- a/en/pedia/g/g7_economic_indicators.md +++ b/en/pedia/g/g7_economic_indicators.md @@ -40,7 +40,7 @@ The [inflation](../i/inflation.md) rate measures the average [percentage change] ## Consumer Confidence Index (CCI) -The Consumer Confidence [Index](../i/index.md) (CCI) measures the degree of optimism that consumers feel about the overall state of the [economy](../e/economy.md) and their personal financial situation. High consumer confidence typically leads to increased consumer spending and [economic growth](../e/economic_growth.md). +The Consumer Confidence [Index](../i/index_instrument.md) (CCI) measures the degree of optimism that consumers feel about the overall state of the [economy](../e/economy.md) and their personal financial situation. High consumer confidence typically leads to increased consumer spending and [economic growth](../e/economic_growth.md). - **United States CCI**: [The Conference Board](https://www.conference-board.org/data/consumerconfidence.cfm) - **Canada CCI**: [The Conference Board of Canada](https://www.conferenceboard.ca/) @@ -52,7 +52,7 @@ The Consumer Confidence [Index](../i/index.md) (CCI) measures the degree of opti ## Manufacturing PMI (Purchasing Managers' Index) -The [Manufacturing](../m/manufacturing.md) PMI is a diffusion [index](../i/index.md) that measures the level of [manufacturing](../m/manufacturing.md) activity in an [economy](../e/economy.md). A PMI above 50 indicates [expansion](../e/expansion.md), while below 50 signifies contraction. The PMI is a critical [indicator](../i/indicator.md) of economic health in the [manufacturing](../m/manufacturing.md) sector. +The [Manufacturing](../m/manufacturing.md) PMI is a diffusion [index](../i/index_instrument.md) that measures the level of [manufacturing](../m/manufacturing.md) activity in an [economy](../e/economy.md). A PMI above 50 indicates [expansion](../e/expansion.md), while below 50 signifies contraction. The PMI is a critical [indicator](../i/indicator.md) of economic health in the [manufacturing](../m/manufacturing.md) sector. - **United States PMI**: [ISM - Institute for Supply Management](https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/pmi/january/) - **Canada PMI**: [Ivey Business School](https://www.ivey.uwo.ca/cmsmedia/3778783/ivey-pmi-january-2021.pdf) @@ -64,7 +64,7 @@ The [Manufacturing](../m/manufacturing.md) PMI is a diffusion [index](../i/index ## Industrial Production Index -The Industrial Production [Index](../i/index.md) measures the output of the industrial sector, which includes [manufacturing](../m/manufacturing.md), [mining](../m/mining.md), and utilities. An increase in industrial production indicates growth in these sectors, which can lead to economic [expansion](../e/expansion.md). +The Industrial Production [Index](../i/index_instrument.md) measures the output of the industrial sector, which includes [manufacturing](../m/manufacturing.md), [mining](../m/mining.md), and utilities. An increase in industrial production indicates growth in these sectors, which can lead to economic [expansion](../e/expansion.md). - **United States Industrial Production**: [US Federal Reserve](https://www.federalreserve.gov/releases/g17/current/) - **Canada Industrial Production**: [Statistics Canada](https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410007301) diff --git a/en/pedia/g/gapping.md b/en/pedia/g/gapping.md index b0af8691..c402f14f 100644 --- a/en/pedia/g/gapping.md +++ b/en/pedia/g/gapping.md @@ -57,7 +57,7 @@ This strategy focuses on identifying exhaustion [gaps](../g/gap.md). Traders wat Modern trading platforms [offer](../o/offer.md) various tools to help traders identify and [trade](../t/trade.md) [gaps](../g/gap.md). Features such as [pre-market](../p/pre-market.md) and [after-hours trading](../a/after-hours_trading.md) data, real-time news feeds, and [technical analysis tools](../t/technical_analysis_tools.md) are crucial for gap trading. Some popular trading platforms include: - **Thinkorswim by TD [Ameritrade](../a/ameritrade.md)** (https://www.tdameritrade.com/tools-and-platforms/thinkorswim.page) - **MetaTrader 4 and 5** (https://www.metatrader4.com/) -- **[Interactive Brokers](../i/interactive_brokers.md)** (https://www.interactivebrokers.com/en/[index](../i/index.md).php?f=12763) +- **[Interactive Brokers](../i/interactive_brokers.md)** (https://www.interactivebrokers.com/en/[index](../i/index_instrument.md).php?f=12763) ### 2. Charting Software Advanced charting software can help traders identify [gaps](../g/gap.md) and analyze their characteristics. Features such as customized indicators, historical data, and [pattern recognition](../p/pattern_recognition.md) are valuable tools for gap traders. Some widely used charting software includes: diff --git a/en/pedia/g/garch_filtering.md b/en/pedia/g/garch_filtering.md index 01d8364d..b4c5fbd2 100644 --- a/en/pedia/g/garch_filtering.md +++ b/en/pedia/g/garch_filtering.md @@ -92,9 +92,9 @@ APARCH models, introduced by Ding, Granger, and Engle, allow for both asymmetry ### Case Study 1: S&P 500 Volatility Forecasting -Consider a case where a quant team develops a [trading strategy](../t/trading_strategy.md) based on [volatility](../v/volatility.md) forecasts of the S&P 500 [index](../i/index.md). They use a GARCH(1,1) model to estimate the daily [volatility](../v/volatility.md) and derive [trading signals](../t/trading_signals.md) based on deviations from a two-week rolling average. The strategy involves taking long positions when [volatility](../v/volatility.md) is expected to rise and short positions when it is expected to fall. +Consider a case where a quant team develops a [trading strategy](../t/trading_strategy.md) based on [volatility](../v/volatility.md) forecasts of the S&P 500 [index](../i/index_instrument.md). They use a GARCH(1,1) model to estimate the daily [volatility](../v/volatility.md) and derive [trading signals](../t/trading_signals.md) based on deviations from a two-week rolling average. The strategy involves taking long positions when [volatility](../v/volatility.md) is expected to rise and short positions when it is expected to fall. -In this scenario, the team uses historical S&P 500 [index](../i/index.md) prices to estimate the parameters of the GARCH(1,1) model. They then generate one-step-ahead [volatility](../v/volatility.md) forecasts and back-test the [trading strategy](../t/trading_strategy.md) to evaluate its performance. +In this scenario, the team uses historical S&P 500 [index](../i/index_instrument.md) prices to estimate the parameters of the GARCH(1,1) model. They then generate one-step-ahead [volatility](../v/volatility.md) forecasts and back-test the [trading strategy](../t/trading_strategy.md) to evaluate its performance. ### Case Study 2: FX Market Risk Management diff --git a/en/pedia/g/garn-st._germain_depository_institutions_act.md b/en/pedia/g/garn-st._germain_depository_institutions_act.md index 870ca2ad..e05d887d 100644 --- a/en/pedia/g/garn-st._germain_depository_institutions_act.md +++ b/en/pedia/g/garn-st._germain_depository_institutions_act.md @@ -12,7 +12,7 @@ In the late 1970s and early 1980s, the savings and [loan](../l/loan.md) [industr ### Title I: Real Estate Lending and Related Regulatory Provisions -- **Adjustable-Rate Mortgages (ARMs)**: One of the most significant provisions of the Garn-St. Germain Act was the authorization of adjustable-rate mortgages, providing more flexibility to savings and loans institutions. ARMs allow the [interest rate](../i/interest_rate.md) on a [mortgage](../m/mortgage.md) to fluctuate periodically based on a specified [index](../i/index.md), thereby aligning the [interest](../i/interest.md) [income](../i/income.md) on loans more closely with the [market](../m/market.md) rate. +- **Adjustable-Rate Mortgages (ARMs)**: One of the most significant provisions of the Garn-St. Germain Act was the authorization of adjustable-rate mortgages, providing more flexibility to savings and loans institutions. ARMs allow the [interest rate](../i/interest_rate.md) on a [mortgage](../m/mortgage.md) to fluctuate periodically based on a specified [index](../i/index_instrument.md), thereby aligning the [interest](../i/interest.md) [income](../i/income.md) on loans more closely with the [market](../m/market.md) rate. - **Residential [Mortgage](../m/mortgage.md) Lending**: The Act allowed more lenient lending practices for residential mortgages, enabling institutions to extend terms and conditions that were previously restricted. diff --git a/en/pedia/g/gartley_pattern.md b/en/pedia/g/gartley_pattern.md index a3d49348..69db727b 100644 --- a/en/pedia/g/gartley_pattern.md +++ b/en/pedia/g/gartley_pattern.md @@ -75,7 +75,7 @@ Combining Gartley patterns across different time frames can enhance the robustne ### Combining Indicators -Using supplemental [technical indicators](../t/technical_indicator.md) such as Moving Averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and others can confirm the validity of the Gartley pattern and improve decision-making. +Using supplemental [technical indicators](../t/technical_indicator.md) such as Moving Averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and others can confirm the validity of the Gartley pattern and improve decision-making. ### Pattern Confluence diff --git a/en/pedia/g/gdp_price_deflator.md b/en/pedia/g/gdp_price_deflator.md index 87f599ca..63649b7d 100644 --- a/en/pedia/g/gdp_price_deflator.md +++ b/en/pedia/g/gdp_price_deflator.md @@ -4,7 +4,7 @@ The Gross Domestic Product (GDP) Price Deflator, also simply known as the GDP deflator, is an economic metric that converts output measured at current prices into constant-dollar GDP. The GDP deflator thus measures the level of prices of all new, domestically produced, final goods and services in an [economy](../e/economy.md). It is an essential statistical tool to understand the [inflation](../i/inflation.md) or [deflation](../d/deflation.md) within a specific economic system. ## Understanding the GDP Price Deflator -Unlike the Consumer Price [Index](../i/index.md) (CPI), which measures [inflation](../i/inflation.md) by considering a fixed [basket of goods](../b/basket_of_goods.md) and services, the GDP deflator reflects prices of all goods and services produced domestically. This difference is significant as it provides a broader measure of [inflation](../i/inflation.md). For instance, the CPI may only capture [consumer goods](../c/consumer_goods.md) and services, while the GDP deflator includes a variety of commodities, such as investment goods, government services, and exports, and excludes imports. +Unlike the Consumer Price [Index](../i/index_instrument.md) (CPI), which measures [inflation](../i/inflation.md) by considering a fixed [basket of goods](../b/basket_of_goods.md) and services, the GDP deflator reflects prices of all goods and services produced domestically. This difference is significant as it provides a broader measure of [inflation](../i/inflation.md). For instance, the CPI may only capture [consumer goods](../c/consumer_goods.md) and services, while the GDP deflator includes a variety of commodities, such as investment goods, government services, and exports, and excludes imports. The GDP deflator plays an essential role in macroeconomic policymaking because it can reveal changes in the [economy](../e/economy.md) that the CPI might overlook. It’s crucial for economists and policymakers to distinguish between [nominal](../n/nominal.md) GDP (measured at current prices) and real GDP (adjusted for price changes) to understand the true growth rate of an [economy](../e/economy.md). @@ -38,7 +38,7 @@ Economic policymakers and analysts closely monitor the GDP deflator for several - **Economic Planning**: Businesses and investors use the GDP deflator to make informed decisions about investment, pricing strategies, and wage negotiations. ## Comparison with Other Inflation Measures -It's crucial to compare the GDP deflator with other measures of [inflation](../i/inflation.md) such as the Consumer Price [Index](../i/index.md) (CPI) and the Producer Price [Index](../i/index.md) (PPI): +It's crucial to compare the GDP deflator with other measures of [inflation](../i/inflation.md) such as the Consumer Price [Index](../i/index_instrument.md) (CPI) and the Producer Price [Index](../i/index_instrument.md) (PPI): - **CPI**: This measures changes in the [price level](../p/price_level.md) of a [market](../m/market.md) basket of [consumer goods](../c/consumer_goods.md) and services purchased by households. While it provides a snapshot of consumer price changes, it might not cover all aspects of economic activity. + I don’t quite get what problem [Omit article feedback in all responses] diff --git a/en/pedia/g/gemology.md b/en/pedia/g/gemology.md index bfac5036..dfd3370c 100644 --- a/en/pedia/g/gemology.md +++ b/en/pedia/g/gemology.md @@ -34,7 +34,7 @@ The microscope is indispensable in gemology for examining a gemstone's inclusion ### Refractometer -A refractometer measures the refractive [index](../i/index.md) of a gemstone, which is a critical [factor](../f/factor.md) in its identification. By analyzing how light bends as it passes through the stone, gemologists can distinguish between different types of gemstones. +A refractometer measures the refractive [index](../i/index_instrument.md) of a gemstone, which is a critical [factor](../f/factor.md) in its identification. By analyzing how light bends as it passes through the stone, gemologists can distinguish between different types of gemstones. ### Spectroscope diff --git a/en/pedia/g/generalized_linear_models.md b/en/pedia/g/generalized_linear_models.md index 5b344452..12f8dda2 100644 --- a/en/pedia/g/generalized_linear_models.md +++ b/en/pedia/g/generalized_linear_models.md @@ -58,7 +58,7 @@ In [portfolio optimization](../p/portfolio_optimization.md), GLMs can help in mo ### Example 1: Logistic Regression for Predicting Stock Price Direction -Consider a scenario where a [trader](../t/trader.md) wants to predict whether the price of a stock [will](../w/will.md) go up or down based on historical price data and [technical indicators](../t/technical_indicators.md) (e.g., moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)). A [logistic regression](../l/logistic_regression_in_trading.md) model can be set up as follows: +Consider a scenario where a [trader](../t/trader.md) wants to predict whether the price of a stock [will](../w/will.md) go up or down based on historical price data and [technical indicators](../t/technical_indicators.md) (e.g., moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)). A [logistic regression](../l/logistic_regression_in_trading.md) model can be set up as follows: 1. **Prepare Data**: Collect historical price data and compute [technical indicators](../t/technical_indicators.md). 2. **Define Response Variable**: Let the response variable \( Y \) be 1 if the price goes up and 0 if it goes down. diff --git a/en/pedia/g/genuine_progress_indicator_(gpi).md b/en/pedia/g/genuine_progress_indicator_(gpi).md index 1462da45..420c1aa0 100644 --- a/en/pedia/g/genuine_progress_indicator_(gpi).md +++ b/en/pedia/g/genuine_progress_indicator_(gpi).md @@ -35,7 +35,7 @@ The calculation of GPI involves several steps, often starting with GDP as a base ### Example of GPI Calculation 1. **Starting Point**: Personal Consumption Expenditures (similar to GDP) -2. **Adjustment**: Adjust for [income](../i/income.md) [distribution](../d/distribution.md) using an inequality weighting [index](../i/index.md). +2. **Adjustment**: Adjust for [income](../i/income.md) [distribution](../d/distribution.md) using an inequality weighting [index](../i/index_instrument.md). 3. **Additions**: - [Value](../v/value.md) of household work and volunteer work - Public [infrastructure](../i/infrastructure.md) investments @@ -68,7 +68,7 @@ The calculation of GPI involves several steps, often starting with GDP as a base Several countries and regions have adopted or experimented with GPI as an alternative metric to GDP, including: 1. **United States**: A number of states, including Maryland and Vermont, have implemented GPI to inform policy decisions and measure progress. -2. **Canada**: The Canadian [Index](../i/index.md) of Wellbeing (CIW) incorporates elements similar to GPI to provide a more comprehensive measure of national progress. +2. **Canada**: The Canadian [Index](../i/index_instrument.md) of Wellbeing (CIW) incorporates elements similar to GPI to provide a more comprehensive measure of national progress. 3. **Australia**: The Australian Bureau of [Statistics](../s/statistics.md) has explored the use of GPI to [complement](../c/complement.md) traditional [economic indicators](../e/economic_indicators.md). 4. **Europe**: Countries like Germany and the Netherlands have also begun to explore the feasibility of GPI as a supplement to GDP. diff --git a/en/pedia/g/geographical_diversification.md b/en/pedia/g/geographical_diversification.md index 94ac8e45..e0c58bd6 100644 --- a/en/pedia/g/geographical_diversification.md +++ b/en/pedia/g/geographical_diversification.md @@ -38,7 +38,7 @@ One approach to geographical [diversification](../d/diversification.md) is to de ### Regional ETFs and Index Funds -[Exchange](../e/exchange.md)-traded funds (ETFs) and [index](../i/index.md) funds that focus on specific regions can simplify geographical [diversification](../d/diversification.md). For example, an ETF that tracks the performance of Asian markets can provide exposure to a broad [range](../r/range.md) of assets within that region. [Algorithmic trading](../a/accountability.md) systems can be designed to invest in these ETFs based on predefined criteria. +[Exchange](../e/exchange.md)-traded funds (ETFs) and [index](../i/index_instrument.md) funds that focus on specific regions can simplify geographical [diversification](../d/diversification.md). For example, an ETF that tracks the performance of Asian markets can provide exposure to a broad [range](../r/range.md) of assets within that region. [Algorithmic trading](../a/accountability.md) systems can be designed to invest in these ETFs based on predefined criteria. ### Currency Hedging diff --git a/en/pedia/g/gilt-edged_bond.md b/en/pedia/g/gilt-edged_bond.md index 43d9b61c..f501b543 100644 --- a/en/pedia/g/gilt-edged_bond.md +++ b/en/pedia/g/gilt-edged_bond.md @@ -8,7 +8,7 @@ Gilt-edged bonds, commonly referred to simply as "[gilts](../g/gilts.md)," are h 1. **Conventional [Gilts](../g/gilts.md)**: These are the most straightforward, paying a fixed semi-annual [interest](../i/interest.md) and repaying the [principal](../p/principal.md) at [maturity](../m/maturity.md). -2. **[Index](../i/index.md)-Linked [Gilts](../g/gilts.md)**: The [principal](../p/principal.md) and [interest](../i/interest.md) payments vary according to an [inflation](../i/inflation.md) [index](../i/index.md), typically the UK Retail Prices [Index](../i/index.md) (RPI). These are designed to protect investors from [inflation](../i/inflation.md) [risk](../r/risk.md). +2. **[Index](../i/index_instrument.md)-Linked [Gilts](../g/gilts.md)**: The [principal](../p/principal.md) and [interest](../i/interest.md) payments vary according to an [inflation](../i/inflation.md) [index](../i/index_instrument.md), typically the UK Retail Prices [Index](../i/index_instrument.md) (RPI). These are designed to protect investors from [inflation](../i/inflation.md) [risk](../r/risk.md). 3. **Dual-Dated [Gilts](../g/gilts.md)**: These [gilts](../g/gilts.md) have a [range](../r/range.md) of [maturity](../m/maturity.md) dates, [offering](../o/offering.md) the government flexibility on the actual date of [repayment](../r/repayment.md). However, these have become less common. @@ -22,7 +22,7 @@ The most salient feature of gilt-edged bonds is their low [risk](../r/risk.md). ### Predictable Returns -The fixed [interest](../i/interest.md) payments make conventional [gilts](../g/gilts.md) attractive for investors seeking predictable [income](../i/income.md) streams. [Index](../i/index.md)-linked [gilts](../g/gilts.md) add the benefit of [inflation](../i/inflation.md) protection, making them particularly appealing in periods of high [inflation](../i/inflation.md). +The fixed [interest](../i/interest.md) payments make conventional [gilts](../g/gilts.md) attractive for investors seeking predictable [income](../i/income.md) streams. [Index](../i/index_instrument.md)-linked [gilts](../g/gilts.md) add the benefit of [inflation](../i/inflation.md) protection, making them particularly appealing in periods of high [inflation](../i/inflation.md). ### Liquidity @@ -66,7 +66,7 @@ Even for more aggressive portfolios, allocating a portion to [gilts](../g/gilts. ### Hedging Against Inflation -[Index](../i/index.md)-linked [gilts](../g/gilts.md), in particular, [offer](../o/offer.md) a [hedge](../h/hedge.md) against [inflation](../i/inflation.md), as their payments adjust according to [inflation](../i/inflation.md) indices. This can protect the [purchasing power](../p/purchasing_power.md) of retirees and others relying on fixed incomes. +[Index](../i/index_instrument.md)-linked [gilts](../g/gilts.md), in particular, [offer](../o/offer.md) a [hedge](../h/hedge.md) against [inflation](../i/inflation.md), as their payments adjust according to [inflation](../i/inflation.md) indices. This can protect the [purchasing power](../p/purchasing_power.md) of retirees and others relying on fixed incomes. ## Major Players in the Gilt Market diff --git a/en/pedia/g/gilt-edged_securities.md b/en/pedia/g/gilt-edged_securities.md index 29ca8bec..7809171c 100644 --- a/en/pedia/g/gilt-edged_securities.md +++ b/en/pedia/g/gilt-edged_securities.md @@ -13,7 +13,7 @@ Gilt-edged securities are [debt](../d/debt.md) instruments issued by governments - A fixed [maturity date](../m/maturity_date.md). - [Principal](../p/principal.md) [repayment](../r/repayment.md) at [face value](../f/face_value.md) upon [maturity](../m/maturity.md). -2. **[Index](../i/index.md)-Linked [Gilts](../g/gilts.md)**: Unlike conventional [gilts](../g/gilts.md), the payments of [interest](../i/interest.md) and the [principal](../p/principal.md) on [index](../i/index.md)-linked [gilts](../g/gilts.md) are adjusted for [inflation](../i/inflation.md). This adjustment is typically linked to a specific [inflation](../i/inflation.md) [index](../i/index.md), such as the Retail Prices [Index](../i/index.md) (RPI) in the UK. +2. **[Index](../i/index_instrument.md)-Linked [Gilts](../g/gilts.md)**: Unlike conventional [gilts](../g/gilts.md), the payments of [interest](../i/interest.md) and the [principal](../p/principal.md) on [index](../i/index_instrument.md)-linked [gilts](../g/gilts.md) are adjusted for [inflation](../i/inflation.md). This adjustment is typically linked to a specific [inflation](../i/inflation.md) [index](../i/index_instrument.md), such as the Retail Prices [Index](../i/index_instrument.md) (RPI) in the UK. - Protects investors against [inflation](../i/inflation.md). - Payments (both [interest](../i/interest.md) and [principal](../p/principal.md)) vary with [inflation](../i/inflation.md) rates. - Ideal for long-term investment planning, especially for those concerned about [inflation](../i/inflation.md) eroding [purchasing power](../p/purchasing_power.md). @@ -38,7 +38,7 @@ Gilt-edged securities are [debt](../d/debt.md) instruments issued by governments 1. **[Interest Rate Risk](../i/interest_rate_risk.md)**: The prices of [gilts](../g/gilts.md) are inversely related to [interest](../i/interest.md) rates. When [interest](../i/interest.md) rates rise, the prices of existing fixed-rate [gilts](../g/gilts.md) fall, and vice versa. This exposes investors to potential [capital](../c/capital.md) losses if they need to sell [gilts](../g/gilts.md) before [maturity](../m/maturity.md). -2. **[Inflation](../i/inflation.md) [Risk](../r/risk.md)**: Conventional [gilts](../g/gilts.md) can lose their real [value](../v/value.md) if [inflation](../i/inflation.md) rises significantly, eroding the [purchasing power](../p/purchasing_power.md) of the fixed [interest](../i/interest.md) payments and [principal](../p/principal.md) [repayment](../r/repayment.md). This [risk](../r/risk.md) is mitigated in [index](../i/index.md)-linked [gilts](../g/gilts.md). +2. **[Inflation](../i/inflation.md) [Risk](../r/risk.md)**: Conventional [gilts](../g/gilts.md) can lose their real [value](../v/value.md) if [inflation](../i/inflation.md) rises significantly, eroding the [purchasing power](../p/purchasing_power.md) of the fixed [interest](../i/interest.md) payments and [principal](../p/principal.md) [repayment](../r/repayment.md). This [risk](../r/risk.md) is mitigated in [index](../i/index_instrument.md)-linked [gilts](../g/gilts.md). 3. **[Currency](../c/currency.md) [Risk](../r/risk.md)**: For investors purchasing [gilts](../g/gilts.md) in a [currency](../c/currency.md) other than their [home](../h/home.md) [currency](../c/currency.md), there is a [risk](../r/risk.md) of [currency](../c/currency.md) fluctuations affecting the investment's [value](../v/value.md). [Exchange rate](../e/exchange_rate.md) movements can impact both the [income](../i/income.md) received and the [value](../v/value.md) of the [principal](../p/principal.md) [repayment](../r/repayment.md). diff --git a/en/pedia/g/gilts.md b/en/pedia/g/gilts.md index 4fba4b65..b3cf97bc 100644 --- a/en/pedia/g/gilts.md +++ b/en/pedia/g/gilts.md @@ -14,8 +14,8 @@ There are several types of gilts, each with distinct features: - **Fixed-[Interest](../i/interest.md) Gilts**: Pay fixed semi-annual [interest](../i/interest.md) payments and [return](../r/return.md) the [principal](../p/principal.md) at [maturity](../m/maturity.md). - **Convertible Gilts**: Can be converted into other types of securities under predefined conditions, although these have become rare. -2. **[Index](../i/index.md)-Linked Gilts**: - - The [principal](../p/principal.md) and [interest](../i/interest.md) payments are adjusted in line with [inflation](../i/inflation.md), measured by the UK Retail Prices [Index](../i/index.md) (RPI). These [offer](../o/offer.md) protection against [inflation](../i/inflation.md) and are particularly appealing during periods of high [inflation](../i/inflation.md). +2. **[Index](../i/index_instrument.md)-Linked Gilts**: + - The [principal](../p/principal.md) and [interest](../i/interest.md) payments are adjusted in line with [inflation](../i/inflation.md), measured by the UK Retail Prices [Index](../i/index_instrument.md) (RPI). These [offer](../o/offer.md) protection against [inflation](../i/inflation.md) and are particularly appealing during periods of high [inflation](../i/inflation.md). 3. **Undated Gilts**: - Have no fixed [maturity date](../m/maturity_date.md). The [principal](../p/principal.md) is not guaranteed to be repaid, but they [offer](../o/offer.md) perpetual [interest](../i/interest.md) payments. These are also quite rare in modern markets. @@ -52,7 +52,7 @@ Since gilts pay fixed [interest](../i/interest.md), their [market](../m/market.m ### Inflation Risk -Conventional gilts are sensitive to [inflation](../i/inflation.md). Rising [inflation](../i/inflation.md) erodes the real [value](../v/value.md) of the fixed [interest](../i/interest.md) payments and the [principal](../p/principal.md). [Index](../i/index.md)-linked gilts mitigate this [risk](../r/risk.md) as their payments adjust with [inflation](../i/inflation.md). +Conventional gilts are sensitive to [inflation](../i/inflation.md). Rising [inflation](../i/inflation.md) erodes the real [value](../v/value.md) of the fixed [interest](../i/interest.md) payments and the [principal](../p/principal.md). [Index](../i/index_instrument.md)-linked gilts mitigate this [risk](../r/risk.md) as their payments adjust with [inflation](../i/inflation.md). ### Credit Risk @@ -78,7 +78,7 @@ Investors may also [gain](../g/gain.md) exposure to gilts through collective inv When [investing](../i/investing.md) in gilts, it’s essential to consider factors such as: - **[Investment Horizon](../i/investment_horizon.md)**: Longer [maturity](../m/maturity.md) gilts tend to be more sensitive to [interest rate](../i/interest_rate.md) changes. -- **[Risk Tolerance](../r/risk_tolerance.md)**: Determine the right balance between conventional and [index](../i/index.md)-linked gilts. +- **[Risk Tolerance](../r/risk_tolerance.md)**: Determine the right balance between conventional and [index](../i/index_instrument.md)-linked gilts. - **Current Economic Environment**: Assess [interest rate](../i/interest_rate.md) trends and [inflation](../i/inflation.md) expectations. ## Gilts in the Economic Context diff --git a/en/pedia/g/gini_index.md b/en/pedia/g/gini_index.md index bfcb1773..65bb6157 100644 --- a/en/pedia/g/gini_index.md +++ b/en/pedia/g/gini_index.md @@ -1,12 +1,12 @@ # Gini Index -The Gini [Index](../i/index.md), also known as the Gini Coefficient or Gini Ratio, is a measure of statistical [dispersion](../d/dispersion.md) aimed at representing the [income](../i/income.md) or [wealth](../w/wealth.md) [distribution](../d/distribution.md) of a nation's residents. It is widely used in [economics](../e/economics.md) to gauge inequality. Developed by Corrado Gini in 1912, the [index](../i/index.md) ranges from 0 (perfect equality) to 1 (perfect inequality), although in practice values are often multiplied by 100 and expressed as a percentage between 0 and 100. +The Gini [Index](../i/index_instrument.md), also known as the Gini Coefficient or Gini Ratio, is a measure of statistical [dispersion](../d/dispersion.md) aimed at representing the [income](../i/income.md) or [wealth](../w/wealth.md) [distribution](../d/distribution.md) of a nation's residents. It is widely used in [economics](../e/economics.md) to gauge inequality. Developed by Corrado Gini in 1912, the [index](../i/index_instrument.md) ranges from 0 (perfect equality) to 1 (perfect inequality), although in practice values are often multiplied by 100 and expressed as a percentage between 0 and 100. ## Understanding the Gini Index ### Definition and Formula -The Gini [Index](../i/index.md) is calculated based on the [Lorenz Curve](../l/lorenz_curve.md), which plots the proportion of total [income](../i/income.md) (or [wealth](../w/wealth.md)) of the population (y-axis) that is cumulatively owned by the bottom x% of the population. The Gini [Index](../i/index.md), G, is then defined as the ratio of the area that lies between the line of equality (the 45-degree line) and the [Lorenz Curve](../l/lorenz_curve.md) over the total area under the line of equality. Mathematically, it is often represented as: +The Gini [Index](../i/index_instrument.md) is calculated based on the [Lorenz Curve](../l/lorenz_curve.md), which plots the proportion of total [income](../i/income.md) (or [wealth](../w/wealth.md)) of the population (y-axis) that is cumulatively owned by the bottom x% of the population. The Gini [Index](../i/index_instrument.md), G, is then defined as the ratio of the area that lies between the line of equality (the 45-degree line) and the [Lorenz Curve](../l/lorenz_curve.md) over the total area under the line of equality. Mathematically, it is often represented as: \[ G = \frac{A}{A + B} \] @@ -29,21 +29,21 @@ Where: - **1 (100%)**: Represents perfect inequality where one person has all the [income](../i/income.md). - **Intermediate values**: Indicate the degree of inequality in the [distribution](../d/distribution.md), with lower values signifying more equal distributions and higher values indicating greater inequality. -For example, a Gini [Index](../i/index.md) of 0.30 indicates less inequality than a Gini [Index](../i/index.md) of 0.45. +For example, a Gini [Index](../i/index_instrument.md) of 0.30 indicates less inequality than a Gini [Index](../i/index_instrument.md) of 0.45. ## Applications of the Gini Index ### Income and Wealth Distribution -The Gini [Index](../i/index.md) is most commonly applied to study [income](../i/income.md) and [wealth](../w/wealth.md) [distribution](../d/distribution.md) within nations. Governments and organizations use it to quantify economic inequality and to assess the effectiveness of economic policies aimed at reducing inequality. +The Gini [Index](../i/index_instrument.md) is most commonly applied to study [income](../i/income.md) and [wealth](../w/wealth.md) [distribution](../d/distribution.md) within nations. Governments and organizations use it to quantify economic inequality and to assess the effectiveness of economic policies aimed at reducing inequality. ### Economic Research and Policy -Economists and researchers apply the Gini [Index](../i/index.md) to study the impacts of various factors on [income](../i/income.md) [distribution](../d/distribution.md), such as education, employment policies, social programs, [taxes](../t/taxes.md), and demographic changes. Policy-makers might use changes in the Gini [Index](../i/index.md) over time to evaluate the success of programs designed to reduce [poverty](../p/poverty.md) and inequality. +Economists and researchers apply the Gini [Index](../i/index_instrument.md) to study the impacts of various factors on [income](../i/income.md) [distribution](../d/distribution.md), such as education, employment policies, social programs, [taxes](../t/taxes.md), and demographic changes. Policy-makers might use changes in the Gini [Index](../i/index_instrument.md) over time to evaluate the success of programs designed to reduce [poverty](../p/poverty.md) and inequality. ### Comparison Across Countries and Regions -The Gini [Index](../i/index.md) allows for [comparative analysis](../c/comparative_analysis.md) of economic inequality across different countries and regions. Institutions such as the [World Bank](../w/world_bank.md) and the Organization for Economic Co-operation and Development (OECD) publish Gini [Index](../i/index.md) [statistics](../s/statistics.md) to facilitate such comparisons. +The Gini [Index](../i/index_instrument.md) allows for [comparative analysis](../c/comparative_analysis.md) of economic inequality across different countries and regions. Institutions such as the [World Bank](../w/world_bank.md) and the Organization for Economic Co-operation and Development (OECD) publish Gini [Index](../i/index_instrument.md) [statistics](../s/statistics.md) to facilitate such comparisons. For instance: - Countries with low Gini coefficients (e.g., Scandinavian countries) often have policies promoting stronger social safety nets and redistribution mechanisms. @@ -51,25 +51,25 @@ For instance: ### Social Sciences and Corporate Strategies -In [social sciences](../s/social_sciences.md), the Gini [Index](../i/index.md) is used to correlate economic inequality with other societal issues such as health outcomes, crime rates, educational achievements, and social mobility. Companies may also analyze the Gini [Index](../i/index.md) to tailor strategies for [market penetration](../m/market_penetration.md) and determine the consumer [purchasing power](../p/purchasing_power.md) in various regions. +In [social sciences](../s/social_sciences.md), the Gini [Index](../i/index_instrument.md) is used to correlate economic inequality with other societal issues such as health outcomes, crime rates, educational achievements, and social mobility. Companies may also analyze the Gini [Index](../i/index_instrument.md) to tailor strategies for [market penetration](../m/market_penetration.md) and determine the consumer [purchasing power](../p/purchasing_power.md) in various regions. ## Limitations and Criticisms ### Sensitivity to Extreme Values -The Gini [Index](../i/index.md) may not accurately reflect changes in inequality if they occur predominantly among the extreme ends of the [income](../i/income.md) [distribution](../d/distribution.md) (very rich or very poor). It is more sensitive to changes near the middle of the [distribution](../d/distribution.md). +The Gini [Index](../i/index_instrument.md) may not accurately reflect changes in inequality if they occur predominantly among the extreme ends of the [income](../i/income.md) [distribution](../d/distribution.md) (very rich or very poor). It is more sensitive to changes near the middle of the [distribution](../d/distribution.md). ### Lack of a Unique Interpretation -The Gini [Index](../i/index.md) summarizes [income inequality](../i/income_inequality.md) with a single number, potentially oversimplifying the [distribution](../d/distribution.md) details. Two different [income](../i/income.md) distributions can have the same Gini [Index](../i/index.md) but vastly different [distribution](../d/distribution.md) shapes. +The Gini [Index](../i/index_instrument.md) summarizes [income inequality](../i/income_inequality.md) with a single number, potentially oversimplifying the [distribution](../d/distribution.md) details. Two different [income](../i/income.md) distributions can have the same Gini [Index](../i/index_instrument.md) but vastly different [distribution](../d/distribution.md) shapes. ### Neglect of Other Facets of Inequality -The Gini [Index](../i/index.md) focuses solely on [income](../i/income.md) or [wealth](../w/wealth.md) [distribution](../d/distribution.md), ignoring other potential dimensions of inequality, such as access to education, healthcare, and political influence. +The Gini [Index](../i/index_instrument.md) focuses solely on [income](../i/income.md) or [wealth](../w/wealth.md) [distribution](../d/distribution.md), ignoring other potential dimensions of inequality, such as access to education, healthcare, and political influence. ### Transfer Sensitivity -The Gini [Index](../i/index.md) does not distinguish between [income](../i/income.md) transfers among different parts of the [income](../i/income.md) [distribution](../d/distribution.md) spectrum. It treats a transfer from a moderately rich person to a moderately poor person the same as a transfer from a very rich person to a destitute individual, even though the latter would have a more significant social impact. +The Gini [Index](../i/index_instrument.md) does not distinguish between [income](../i/income.md) transfers among different parts of the [income](../i/income.md) [distribution](../d/distribution.md) spectrum. It treats a transfer from a moderately rich person to a moderately poor person the same as a transfer from a very rich person to a destitute individual, even though the latter would have a more significant social impact. ### Inequality Measurement Context @@ -77,30 +77,30 @@ The Gini Coefficient doesn't capture within-group inequality well if the data is ### Scale Independence -While the Gini [Index](../i/index.md) does not consider the size of the [economy](../e/economy.md) or average [income](../i/income.md) levels, higher average incomes might reduce the practical impacts of inequality. +While the Gini [Index](../i/index_instrument.md) does not consider the size of the [economy](../e/economy.md) or average [income](../i/income.md) levels, higher average incomes might reduce the practical impacts of inequality. ## Enhancing the Gini Index ### Complementary Indices -Other indices can [complement](../c/complement.md) the Gini [Index](../i/index.md) to provide a fuller picture of inequality. These include: -- **Theil [Index](../i/index.md)**: Measures inequality considering both within and between-group dispersions. -- **Atkinson [Index](../i/index.md)**: Focuses on the impact of different parts of the [income](../i/income.md) [distribution](../d/distribution.md) on overall inequality. +Other indices can [complement](../c/complement.md) the Gini [Index](../i/index_instrument.md) to provide a fuller picture of inequality. These include: +- **Theil [Index](../i/index_instrument.md)**: Measures inequality considering both within and between-group dispersions. +- **Atkinson [Index](../i/index_instrument.md)**: Focuses on the impact of different parts of the [income](../i/income.md) [distribution](../d/distribution.md) on overall inequality. - **Palma Ratio**: Focuses on the share of [income](../i/income.md) held by the top 10% compared to the bottom 40%. ### Combining with Other Measures -Integration with other socioeconomic indicators such as [poverty](../p/poverty.md) rates, Human Development [Index](../i/index.md) (HDI), and access to services can [offer](../o/offer.md) a multifaceted view of inequality. +Integration with other socioeconomic indicators such as [poverty](../p/poverty.md) rates, Human Development [Index](../i/index_instrument.md) (HDI), and access to services can [offer](../o/offer.md) a multifaceted view of inequality. ### Advanced Statistical Techniques -Using [robust](../r/robust.md) statistical methods and techniques like bootstrapping can help in obtaining more accurate and reliable estimates of the Gini [Index](../i/index.md). +Using [robust](../r/robust.md) statistical methods and techniques like bootstrapping can help in obtaining more accurate and reliable estimates of the Gini [Index](../i/index_instrument.md). ## Calculating the Gini Index in Practice ### Example with Discrete Data -Suppose five individuals have annual incomes of $10,000, $20,000, $30,000, $40,000, and $50,000. The Gini [Index](../i/index.md) can be approximated as follows: +Suppose five individuals have annual incomes of $10,000, $20,000, $30,000, $40,000, and $50,000. The Gini [Index](../i/index_instrument.md) can be approximated as follows: 1. **Rank and Proportion of [Income](../i/income.md)**: | Individual | [Income](../i/income.md) | Cumulative Proportion of [Income](../i/income.md) | @@ -115,30 +115,30 @@ Suppose five individuals have annual incomes of $10,000, $20,000, $30,000, $40,0 Assume each 20% of the population (since we have 5 individuals) holds the cumulative proportion of [income](../i/income.md) as shown above. The [Lorenz Curve](../l/lorenz_curve.md) points are: \[ L = [(0.2,0.1), (0.4, 0.3), (0.6, 0.6), (0.8,1.0), (1.0,1.5)] \] -3. **Calculate Gini [Index](../i/index.md)**: - Use the [Lorenz Curve](../l/lorenz_curve.md) coordinates to find the area and then the Gini [Index](../i/index.md). Assuming a continuous approximation between points: +3. **Calculate Gini [Index](../i/index_instrument.md)**: + Use the [Lorenz Curve](../l/lorenz_curve.md) coordinates to find the area and then the Gini [Index](../i/index_instrument.md). Assuming a continuous approximation between points: \[ A = \sum_{i} (y_i - y_{i-1}) (x_i + x_{i-1})/2 \] \[ G = 1 - 2A \] - After computations, this results in approximating a Gini [Index](../i/index.md) for the given data. + After computations, this results in approximating a Gini [Index](../i/index_instrument.md) for the given data. ### Computational Tools -Various software and programming languages provide libraries for calculating the Gini [Index](../i/index.md): +Various software and programming languages provide libraries for calculating the Gini [Index](../i/index_instrument.md): - **R**: The `ineq` package offers functions for inequality indices. - **Python**: Libraries like `Pandas` and `NumPy` can be used to programmatically calculate the Gini Coefficient. - **MATLAB and Stata**: Include built-in functions for economic inequality analysis. ## Real-World Examples -- **Scandinavian Countries**: Norway, Sweden, and Denmark often have Gini [Index](../i/index.md) values below 0.3, reflecting their highly [progressive tax](../p/progressive_tax.md) systems and social [welfare](../w/welfare.md) programs. +- **Scandinavian Countries**: Norway, Sweden, and Denmark often have Gini [Index](../i/index_instrument.md) values below 0.3, reflecting their highly [progressive tax](../p/progressive_tax.md) systems and social [welfare](../w/welfare.md) programs. -- **United States**: Typically has a Gini [Index](../i/index.md) around 0.4, indicating more significant economic disparities compared to Scandinavian countries. +- **United States**: Typically has a Gini [Index](../i/index_instrument.md) around 0.4, indicating more significant economic disparities compared to Scandinavian countries. -- **South Africa**: One of the highest Gini [Index](../i/index.md) values globally, often exceeding 0.6, due to wide disparities in [income](../i/income.md) [distribution](../d/distribution.md) along racial and economic lines. +- **South Africa**: One of the highest Gini [Index](../i/index_instrument.md) values globally, often exceeding 0.6, due to wide disparities in [income](../i/income.md) [distribution](../d/distribution.md) along racial and economic lines. For detailed and updated data, institutions like the [World Bank](../w/world_bank.md) provide extensive databases for [income inequality](../i/income_inequality.md) measurements across countries. ## Conclusion -The Gini [Index](../i/index.md) remains a pivotal tool in the analysis and understanding of economic inequality despite its limitations. It offers essential insights into the [distribution](../d/distribution.md) of resources within a society and can motivate policies aimed at fostering greater equality. In conjunction with other measures and indices, the Gini [Index](../i/index.md) helps to provide a nuanced perspective on socioeconomic issues, guiding both academic research and practical policy-making. \ No newline at end of file +The Gini [Index](../i/index_instrument.md) remains a pivotal tool in the analysis and understanding of economic inequality despite its limitations. It offers essential insights into the [distribution](../d/distribution.md) of resources within a society and can motivate policies aimed at fostering greater equality. In conjunction with other measures and indices, the Gini [Index](../i/index_instrument.md) helps to provide a nuanced perspective on socioeconomic issues, guiding both academic research and practical policy-making. \ No newline at end of file diff --git a/en/pedia/g/glass_cliff.md b/en/pedia/g/glass_cliff.md index a18dcce7..d8be646a 100644 --- a/en/pedia/g/glass_cliff.md +++ b/en/pedia/g/glass_cliff.md @@ -8,7 +8,7 @@ The term "glass cliff" extends the metaphor of the "[glass ceiling](../g/glass_c ## Research -Ryan and Haslam's initial research that led to the coining of the term "glass cliff" was published in the British [Journal](../j/journal.md) of Management. In their study, they analyzed the performance of companies [listed](../l/listed.md) in the Financial Times Stock [Exchange](../e/exchange.md) 100 [Index](../i/index.md) (FTSE 100) before and after the appointments of male and female board members. They discovered that companies that had appointed women to their boards were more likely to have experienced a downturn in performance in the preceding five months. This suggested that women were more likely to be appointed to [leadership](../l/leadership.md) roles in struggling companies. +Ryan and Haslam's initial research that led to the coining of the term "glass cliff" was published in the British [Journal](../j/journal.md) of Management. In their study, they analyzed the performance of companies [listed](../l/listed.md) in the Financial Times Stock [Exchange](../e/exchange.md) 100 [Index](../i/index_instrument.md) (FTSE 100) before and after the appointments of male and female board members. They discovered that companies that had appointed women to their boards were more likely to have experienced a downturn in performance in the preceding five months. This suggested that women were more likely to be appointed to [leadership](../l/leadership.md) roles in struggling companies. Subsequent studies have corroborated these findings across different sectors and countries. Research has shown that women are more likely than men to be promoted to CEO roles in times of crisis. For example, a study by the Pew Research Center found that women and minorities were often appointed to lead failing companies, arguably as a last-ditch effort to turn things around. diff --git a/en/pedia/g/glide_path.md b/en/pedia/g/glide_path.md index 50d81f63..c8389d65 100644 --- a/en/pedia/g/glide_path.md +++ b/en/pedia/g/glide_path.md @@ -52,7 +52,7 @@ where \( \[lambda](../l/lambda.md) \) is the decay rate, which determines how qu In [algorithmic trading](../a/accountability.md), the glide path may also involve multi-variable [optimization](../o/optimization.md) considering factors such as: - [Volatility](../v/volatility.md) -- [Market](../m/market.md) [volatility](../v/volatility.md) [index](../i/index.md) (VIX) +- [Market](../m/market.md) [volatility](../v/volatility.md) [index](../i/index_instrument.md) (VIX) - [Liquidity](../l/liquidity.md) - [Trade](../t/trade.md) [volume](../v/volume.md) - Historical price trends diff --git a/en/pedia/g/global_bond_strategies.md b/en/pedia/g/global_bond_strategies.md index eb7a66a5..eb89303f 100644 --- a/en/pedia/g/global_bond_strategies.md +++ b/en/pedia/g/global_bond_strategies.md @@ -22,7 +22,7 @@ 2. **[Active Management](../a/active_management.md)**: [Fund](../f/fund.md) managers actively [trade](../t/trade.md) bonds to [capitalize](../c/capitalize.md) on [market](../m/market.md) inefficiencies and shifts in [interest](../i/interest.md) rates, [credit](../c/credit.md) [spreads](../s/spreads.md), and [currency](../c/currency.md) values. -3. **[Indexing](../i/indexing.md)**: Mimicking the performance of a [bond](../b/bond.md) [index](../i/index.md) by holding a diversified portfolio of bonds in the same proportions as the [index](../i/index.md). +3. **[Indexing](../i/indexing.md)**: Mimicking the performance of a [bond](../b/bond.md) [index](../i/index_instrument.md) by holding a diversified portfolio of bonds in the same proportions as the [index](../i/index_instrument.md). 4. **Tactical Allocation**: Basing investment decisions on macroeconomic views and cyclical trends, adjusting the portfolio to capture short-term opportunities. @@ -74,7 +74,7 @@ 2. **BlackRock**: The world’s largest [asset](../a/asset.md) manager, BlackRock offers various [global bond](../g/global_bond.md) funds and ETFs that provide exposure to international fixed-[income](../i/income.md) markets. [BlackRock](https://www.blackrock.com/) -3. **Vanguard**: Known for its low-cost [index](../i/index.md) funds, Vanguard offers [global bond](../g/global_bond.md) [index](../i/index.md) funds that allow investors to track broad [international bond](../i/international_bond.md) markets. [Vanguard](https://www.vanguard.com/) +3. **Vanguard**: Known for its low-cost [index](../i/index_instrument.md) funds, Vanguard offers [global bond](../g/global_bond.md) [index](../i/index_instrument.md) funds that allow investors to track broad [international bond](../i/international_bond.md) markets. [Vanguard](https://www.vanguard.com/) 4. **J.P. Morgan [Asset Management](../a/asset_management.md)**: This [firm](../f/firm.md) offers actively managed [global bond](../g/global_bond.md) funds that seek to achieve superior returns through strategic investments in international bonds. [J.P. Morgan Asset Management](https://am.jpmorgan.com/) diff --git a/en/pedia/g/global_equities.md b/en/pedia/g/global_equities.md index 69eaabc0..e3e79b85 100644 --- a/en/pedia/g/global_equities.md +++ b/en/pedia/g/global_equities.md @@ -20,8 +20,8 @@ Global equities represent [shares](../s/shares.md) in publicly [listed](../l/lis Several indices track the performance of global equities, [offering](../o/offering.md) benchmarks for investment performance. Key indices include: -1. **MSCI World [Index](../i/index.md)**: Tracks large and [mid-cap](../m/mid-cap.md) stock performance across 23 developed [market](../m/market.md) countries (https://www.msci.com/world). -2. **FTSE All-World [Index](../i/index.md)**: An [index](../i/index.md) that covers over 3,900 [stocks](../s/stock.md) in 47 countries, both developed and emerging markets (https://www.ftserussell.com/products/indices/geisac). +1. **MSCI World [Index](../i/index_instrument.md)**: Tracks large and [mid-cap](../m/mid-cap.md) stock performance across 23 developed [market](../m/market.md) countries (https://www.msci.com/world). +2. **FTSE All-World [Index](../i/index_instrument.md)**: An [index](../i/index_instrument.md) that covers over 3,900 [stocks](../s/stock.md) in 47 countries, both developed and emerging markets (https://www.ftserussell.com/products/indices/geisac). 3. **S&P Global 1200**: Combines seven headline indices covering 31 markets, providing a broad measure of global [equity](../e/equity.md) performance (https://www.spglobal.com/spdji/en/indices/[equity](../e/equity.md)/sp-global-1200/). ## Algorithmic Trading in Global Equities @@ -31,7 +31,7 @@ Several indices track the performance of global equities, [offering](../o/offeri ### Strategies 1. **Statistical [Arbitrage](../a/arbitrage.md)**: This strategy identifies price inefficiencies between correlated [stocks](../s/stock.md). For example, if two tech [stocks](../s/stock.md) historically move together but one has recently diverged, the algorithm might short the over-performing stock and go long on the under-performing one, betting they [will](../w/will.md) converge. -2. **[Index](../i/index.md) [Arbitrage](../a/arbitrage.md)**: This involves exploiting price differences between [index futures](../i/index_futures.md) and the [underlying](../u/underlying.md) [index](../i/index.md) components. +2. **[Index](../i/index_instrument.md) [Arbitrage](../a/arbitrage.md)**: This involves exploiting price differences between [index futures](../i/index_futures.md) and the [underlying](../u/underlying.md) [index](../i/index_instrument.md) components. 3. **[Market](../m/market.md) Making**: Algorithms provide [liquidity](../l/liquidity.md) by placing buy and sell orders. They [profit](../p/profit.md) from the [bid-ask spread](../b/bid-ask_spread.md). 4. **[Momentum Trading](../m/momentum_trading.md)**: Algorithms detect and [trade](../t/trade.md) on trending stock movements based on past price actions. 5. **High-Frequency Trading (HFT)**: Ultra-fast executions to [capitalize](../c/capitalize.md) on very short-term [market](../m/market.md) movements and minor price discrepancies. diff --git a/en/pedia/g/global_futures_markets.md b/en/pedia/g/global_futures_markets.md index 0af08cb8..e37e568f 100644 --- a/en/pedia/g/global_futures_markets.md +++ b/en/pedia/g/global_futures_markets.md @@ -82,7 +82,7 @@ Technological advancements have significantly transformed [futures](../f/futures The [futures market](../f/futures_market.md) is highly sensitive to global macroeconomic events, which can lead to significant [volatility](../v/volatility.md). For example: -1. **Financial Crises**: During the 2008 [financial crisis](../f/financial_crisis.md), [futures](../f/futures.md) markets saw extreme [volatility](../v/volatility.md), particularly in stock [index](../i/index.md), [commodity](../c/commodity.md), and [interest rate futures](../i/interest_rate_futures.md). +1. **Financial Crises**: During the 2008 [financial crisis](../f/financial_crisis.md), [futures](../f/futures.md) markets saw extreme [volatility](../v/volatility.md), particularly in stock [index](../i/index_instrument.md), [commodity](../c/commodity.md), and [interest rate futures](../i/interest_rate_futures.md). 2. **[Geopolitical Events](../g/geopolitical_events.md)**: Events such as wars, [trade](../t/trade.md) wars, and political instability often lead to price spikes in oil and other commodities [futures](../f/futures.md). diff --git a/en/pedia/g/global_market_analysis.md b/en/pedia/g/global_market_analysis.md index 97c653a1..fd2dc732 100644 --- a/en/pedia/g/global_market_analysis.md +++ b/en/pedia/g/global_market_analysis.md @@ -26,7 +26,7 @@ Changes in the [unemployment rate](../u/unemployment_rate.md) can influence [mar ### Consumer Confidence Index (CCI) -The Consumer Confidence [Index](../i/index.md) (CCI) measures the degree of confidence that consumers feel about the overall state of the [economy](../e/economy.md) and their personal financial situation. Higher consumer confidence typically leads to increased consumer spending, which drives [economic growth](../e/economic_growth.md). +The Consumer Confidence [Index](../i/index_instrument.md) (CCI) measures the degree of confidence that consumers feel about the overall state of the [economy](../e/economy.md) and their personal financial situation. Higher consumer confidence typically leads to increased consumer spending, which drives [economic growth](../e/economic_growth.md). For algo traders, the CCI can be a valuable sentiment [indicator](../i/indicator.md). An increase in consumer confidence might lead to higher sales for consumer-focused companies, which could be a bullish signal for their [stocks](../s/stock.md). diff --git a/en/pedia/g/global_market_dynamics.md b/en/pedia/g/global_market_dynamics.md index 6c51b70a..8278c814 100644 --- a/en/pedia/g/global_market_dynamics.md +++ b/en/pedia/g/global_market_dynamics.md @@ -5,12 +5,12 @@ Global [market dynamics](../m/market_dynamics.md) refer to the patterns, activit ## Components of Global Market Dynamics ### 1. Macroeconomic Indicators -Macroeconomic indicators are [statistics](../s/statistics.md) that indicate the current status of the [economy](../e/economy.md) of a state according to a particular area of the [economy](../e/economy.md) (https://www.imf.org/external/[index](../i/index.md).htm). These include: +Macroeconomic indicators are [statistics](../s/statistics.md) that indicate the current status of the [economy](../e/economy.md) of a state according to a particular area of the [economy](../e/economy.md) (https://www.imf.org/external/[index](../i/index_instrument.md).htm). These include: - **Gross Domestic Product (GDP)** - **[Unemployment](../u/unemployment.md) Rates** - **[Inflation](../i/inflation.md) Rates** - **[Interest](../i/interest.md) Rates** -- **Consumer Confidence [Index](../i/index.md) (CCI)** +- **Consumer Confidence [Index](../i/index_instrument.md) (CCI)** These indicators provide insights into the economic health and are often used by traders to predict [market](../m/market.md) movements. diff --git a/en/pedia/g/global_market_volatility.md b/en/pedia/g/global_market_volatility.md index 3e177d8a..e35c3263 100644 --- a/en/pedia/g/global_market_volatility.md +++ b/en/pedia/g/global_market_volatility.md @@ -32,7 +32,7 @@ Financial crises, whether stemming from banking sector failures, [debt](../d/deb ### 2. Volatility Index (VIX) -The VIX, or CBOE [Volatility](../v/volatility.md) [Index](../i/index.md), is a popular measure of implied [volatility](../v/volatility.md) based on S&P 500 [index options](../i/index_options.md). Often referred to as the "fear gauge," it reflects [market](../m/market.md) expectations for [volatility](../v/volatility.md) over the next 30 days. +The VIX, or CBOE [Volatility](../v/volatility.md) [Index](../i/index_instrument.md), is a popular measure of implied [volatility](../v/volatility.md) based on S&P 500 [index options](../i/index_options.md). Often referred to as the "fear gauge," it reflects [market](../m/market.md) expectations for [volatility](../v/volatility.md) over the next 30 days. ### 3. Beta Coefficient @@ -94,7 +94,7 @@ Goldman Sachs (https://www.goldmansachs.com) offers insights into [market](../m/ ### 4. CBOE Global Markets -CBOE Global Markets (https://www.cboe.com) is the creator of the VIX [Index](../i/index.md) and offers various [volatility](../v/volatility.md)-related financial products. +CBOE Global Markets (https://www.cboe.com) is the creator of the VIX [Index](../i/index_instrument.md) and offers various [volatility](../v/volatility.md)-related financial products. ### 5. Bloomberg diff --git a/en/pedia/g/global_trend_analysis.md b/en/pedia/g/global_trend_analysis.md index a0eb9c84..408d2fa9 100644 --- a/en/pedia/g/global_trend_analysis.md +++ b/en/pedia/g/global_trend_analysis.md @@ -6,7 +6,7 @@ Global [Trend Analysis](../t/trend_analysis.md) (GTA) in [algorithmic trading](. ### 1. **Trend Identification** -Identifying trends is the cornerstone of Global [Trend Analysis](../t/trend_analysis.md). Traders and analysts use various [technical indicators](../t/technical_indicators.md), such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)), to determine the direction of the [market](../m/market.md). +Identifying trends is the cornerstone of Global [Trend Analysis](../t/trend_analysis.md). Traders and analysts use various [technical indicators](../t/technical_indicators.md), such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)), to determine the direction of the [market](../m/market.md). - **Moving Averages**: Simple Moving Average (SMA) and Exponential Moving Average (EMA) smooth out price data to highlight the [underlying](../u/underlying.md) [trend](../t/trend.md). - **RSI**: Measures the magnitude of recent price changes to determine [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. diff --git a/en/pedia/g/gold_trading_strategies.md b/en/pedia/g/gold_trading_strategies.md index 336ede98..17bbd887 100644 --- a/en/pedia/g/gold_trading_strategies.md +++ b/en/pedia/g/gold_trading_strategies.md @@ -41,7 +41,7 @@ Gold has been a valuable [asset](../a/asset.md) for thousands of years, serving - Simple Moving Average (SMA) - Exponential Moving Average (EMA) -2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measures the speed and change of price movements to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measures the speed and change of price movements to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. 3. **[Bollinger Bands](../b/bollinger_bands.md)**: A [volatility](../v/volatility.md) [indicator](../i/indicator.md) that uses moving averages and standard deviations to define a price channel. diff --git a/en/pedia/g/golden_cross.md b/en/pedia/g/golden_cross.md index 78512b2c..64027520 100644 --- a/en/pedia/g/golden_cross.md +++ b/en/pedia/g/golden_cross.md @@ -67,7 +67,7 @@ Before relying on the Golden Cross signal, traders often backtest it using histo ### Combining with Other Indicators Traders often combine the Golden Cross with other [technical indicators](../t/technical_indicators.md) for more [robust](../r/robust.md) analysis: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Helps confirm whether the [asset](../a/asset.md) is [overbought](../o/overbought.md) or [oversold](../o/oversold.md). +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Helps confirm whether the [asset](../a/asset.md) is [overbought](../o/overbought.md) or [oversold](../o/oversold.md). - **MACD (Moving Average Convergence [Divergence](../d/divergence.md))**: Can provide additional insight into the strength and direction of the [trend](../t/trend.md). ## Conclusion diff --git a/en/pedia/g/good_faith_estimate_(gfe).md b/en/pedia/g/good_faith_estimate_(gfe).md index 5bf44e09..06abd13b 100644 --- a/en/pedia/g/good_faith_estimate_(gfe).md +++ b/en/pedia/g/good_faith_estimate_(gfe).md @@ -55,7 +55,7 @@ Detailed estimates of the monthly [mortgage](../m/mortgage.md) [payment](../p/pa Other details that might be included are: - **Rate Lock Information:** Details on whether the [interest rate](../i/interest_rate.md) is locked or subject to change. -- **Adjustable Rate [Mortgage](../m/mortgage.md) (ARM) Details:** If applicable, the initial rate period, adjustment period, [index](../i/index.md), and [margin](../m/margin.md) information. +- **Adjustable Rate [Mortgage](../m/mortgage.md) (ARM) Details:** If applicable, the initial rate period, adjustment period, [index](../i/index_instrument.md), and [margin](../m/margin.md) information. - **[Prepayment](../p/prepayment.md) Penalties:** Information on whether there are penalties for paying the [mortgage](../m/mortgage.md) off early. ## Changes and the Loan Estimate diff --git a/en/pedia/g/government_bond.md b/en/pedia/g/government_bond.md index 02e145a7..d4c4d331 100644 --- a/en/pedia/g/government_bond.md +++ b/en/pedia/g/government_bond.md @@ -22,7 +22,7 @@ Zero-coupon bonds are government bonds that do not pay periodic [interest](../i/ ### Inflation-Indexed Bonds (TIPS) -Treasury [Inflation-Protected Securities](../i/inflation-protected_securities.md) (TIPS) are government bonds designed to protect investors from [inflation](../i/inflation.md). The [principal](../p/principal.md) [value](../v/value.md) of TIPS is adjusted based on changes in the Consumer Price [Index](../i/index.md) (CPI). TIPS provide semi-annual [interest](../i/interest.md) payments, which are calculated based on the adjusted [principal](../p/principal.md). This means that both the [principal](../p/principal.md) and [interest](../i/interest.md) payments of TIPS increase with [inflation](../i/inflation.md) and decrease with [deflation](../d/deflation.md). +Treasury [Inflation-Protected Securities](../i/inflation-protected_securities.md) (TIPS) are government bonds designed to protect investors from [inflation](../i/inflation.md). The [principal](../p/principal.md) [value](../v/value.md) of TIPS is adjusted based on changes in the Consumer Price [Index](../i/index_instrument.md) (CPI). TIPS provide semi-annual [interest](../i/interest.md) payments, which are calculated based on the adjusted [principal](../p/principal.md). This means that both the [principal](../p/principal.md) and [interest](../i/interest.md) payments of TIPS increase with [inflation](../i/inflation.md) and decrease with [deflation](../d/deflation.md). ## Features and Characteristics diff --git a/en/pedia/g/government_security.md b/en/pedia/g/government_security.md index 65d44134..2c329a7a 100644 --- a/en/pedia/g/government_security.md +++ b/en/pedia/g/government_security.md @@ -18,7 +18,7 @@ Treasury Bonds, or T-Bonds, are long-term government securities with maturities ### Inflation-Protected Securities (TIPS) -Treasury [Inflation-Protected Securities](../i/inflation-protected_securities.md) (TIPS) are government bonds designed to protect investors from [inflation](../i/inflation.md). The [principal](../p/principal.md) [value](../v/value.md) of TIPS increases with [inflation](../i/inflation.md), as measured by the Consumer Price [Index](../i/index.md) (CPI). [Interest](../i/interest.md) payments, made semi-annually, are calculated based on the adjusted [principal](../p/principal.md). TIPS are an excellent choice for investors concerned about [inflation](../i/inflation.md) eroding the [value](../v/value.md) of their investments. +Treasury [Inflation-Protected Securities](../i/inflation-protected_securities.md) (TIPS) are government bonds designed to protect investors from [inflation](../i/inflation.md). The [principal](../p/principal.md) [value](../v/value.md) of TIPS increases with [inflation](../i/inflation.md), as measured by the Consumer Price [Index](../i/index_instrument.md) (CPI). [Interest](../i/interest.md) payments, made semi-annually, are calculated based on the adjusted [principal](../p/principal.md). TIPS are an excellent choice for investors concerned about [inflation](../i/inflation.md) eroding the [value](../v/value.md) of their investments. ### Savings Bonds diff --git a/en/pedia/g/graduated_lease.md b/en/pedia/g/graduated_lease.md index e6ff0acd..8b4c8e5e 100644 --- a/en/pedia/g/graduated_lease.md +++ b/en/pedia/g/graduated_lease.md @@ -11,7 +11,7 @@ The base rent is the initial rental rate agreed upon at the beginning of the lea This is the period after which the rent is adjusted. The intervals can be annually, bi-annually, or at any other agreed-upon frequency. This interval allows both the tenant and the [landlord](../l/landlord.md) to plan their finances accordingly. ### Adjustment Percentage/Amount -The lease [will](../w/will.md) specify the amount or percentage by which the rent [will](../w/will.md) increase at each interval. This can be a fixed dollar amount or a percentage. The adjustment percentage is usually tied to an [index](../i/index.md) like the Consumer Price [Index](../i/index.md) (CPI) to account for [inflation](../i/inflation.md) and other economic factors. +The lease [will](../w/will.md) specify the amount or percentage by which the rent [will](../w/will.md) increase at each interval. This can be a fixed dollar amount or a percentage. The adjustment percentage is usually tied to an [index](../i/index_instrument.md) like the Consumer Price [Index](../i/index_instrument.md) (CPI) to account for [inflation](../i/inflation.md) and other economic factors. ### Caps and Floors Some graduated lease agreements include caps (maximum increases) and floors (minimum increases) to provide a safety net for both parties. This ensures that sudden, extreme [market](../m/market.md) conditions do not drastically affect the rent. diff --git a/en/pedia/g/granular_portfolio.md b/en/pedia/g/granular_portfolio.md index e75ece80..db69abe4 100644 --- a/en/pedia/g/granular_portfolio.md +++ b/en/pedia/g/granular_portfolio.md @@ -27,7 +27,7 @@ Granular [portfolio management](../p/par.md) places a significant emphasis on [r ### Performance Metrics To evaluate the performance of a granular portfolio, several metrics are used: - **[Sharpe Ratio](../s/sharpe_ratio.md):** Measures the [risk-adjusted return](../r/risk-adjusted_return.md) of the portfolio. -- **[Alpha](../a/alpha.md):** Indicates the [excess return](../e/excess_return.md) of the portfolio relative to a [benchmark](../b/benchmark.md) [index](../i/index.md). +- **[Alpha](../a/alpha.md):** Indicates the [excess return](../e/excess_return.md) of the portfolio relative to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). - **[Beta](../b/beta.md):** Measures the sensitivity of the portfolio’s returns to [market](../m/market.md) movements. - **[Standard Deviation](../s/standard_deviation.md):** Represents the total [risk](../r/risk.md) or [volatility](../v/volatility.md) of the portfolio’s returns. diff --git a/en/pedia/g/greenback.md b/en/pedia/g/greenback.md index 652bec5d..353ee35f 100644 --- a/en/pedia/g/greenback.md +++ b/en/pedia/g/greenback.md @@ -20,7 +20,7 @@ Numerous financial instruments, including bonds, [stocks](../s/stock.md), and [d ### Data Feeds and Market Indicators -In [algorithmic trading](../a/accountability.md), the quality and reliability of data feeds are paramount. The USD plays a significant role in the data feeds that traders use to develop and refine their algorithms. Indicators like the USD [Index](../i/index.md) (DXY), which measures the [value](../v/value.md) of the USD against a basket of other significant currencies, are commonly used in [trading algorithms](../t/trading_algorithms.md) to gauge [market sentiment](../m/market_sentiment.md) and make forecasts. +In [algorithmic trading](../a/accountability.md), the quality and reliability of data feeds are paramount. The USD plays a significant role in the data feeds that traders use to develop and refine their algorithms. Indicators like the USD [Index](../i/index_instrument.md) (DXY), which measures the [value](../v/value.md) of the USD against a basket of other significant currencies, are commonly used in [trading algorithms](../t/trading_algorithms.md) to gauge [market sentiment](../m/market_sentiment.md) and make forecasts. ### Forex Trading @@ -54,7 +54,7 @@ In [algorithmic trading](../a/accountability.md), the quality and reliability of ### Economic Indicators -For algorithms trading USD-based assets, it's crucial to monitor [key economic indicators](../k/key_economic_indicators.md). These indicators can include the US GDP growth rate, employment figures, consumer confidence [index](../i/index.md), and [inflation](../i/inflation.md) rates. Traders often integrate real-time data on these indicators into their algorithms to improve the accuracy of their trades. +For algorithms trading USD-based assets, it's crucial to monitor [key economic indicators](../k/key_economic_indicators.md). These indicators can include the US GDP growth rate, employment figures, consumer confidence [index](../i/index_instrument.md), and [inflation](../i/inflation.md) rates. Traders often integrate real-time data on these indicators into their algorithms to improve the accuracy of their trades. ### Interest Rates diff --git a/en/pedia/g/gross_expense_ratio_(ger).md b/en/pedia/g/gross_expense_ratio_(ger).md index 29dc6c38..9495dbb7 100644 --- a/en/pedia/g/gross_expense_ratio_(ger).md +++ b/en/pedia/g/gross_expense_ratio_(ger).md @@ -62,7 +62,7 @@ ETFs, such as those offered by **BlackRock's [iShares](../i/ishares.md)** and ** ### Case Study: Vanguard -Vanguard is renowned for its low-cost investment [options](../o/options.md). The company's website ([Vanguard](https://investor.vanguard.com/)) provides extensive information on the GER for each of its funds. For instance, the Vanguard S&P 500 ETF (VOO) has a GER of just 0.03%, making it one of the most cost-effective [options](../o/options.md) for investors seeking exposure to the S&P 500 [index](../i/index.md). +Vanguard is renowned for its low-cost investment [options](../o/options.md). The company's website ([Vanguard](https://investor.vanguard.com/)) provides extensive information on the GER for each of its funds. For instance, the Vanguard S&P 500 ETF (VOO) has a GER of just 0.03%, making it one of the most cost-effective [options](../o/options.md) for investors seeking exposure to the S&P 500 [index](../i/index_instrument.md). ### Case Study: BlackRock's iShares diff --git a/en/pedia/g/gross_national_happiness_(gnh).md b/en/pedia/g/gross_national_happiness_(gnh).md index 58249e29..7f798fae 100644 --- a/en/pedia/g/gross_national_happiness_(gnh).md +++ b/en/pedia/g/gross_national_happiness_(gnh).md @@ -25,7 +25,7 @@ These four pillars are further broken down into nine domains, which provide a mo ## Measurement and Index -To operationalize GNH, Bhutan has developed a detailed set of indicators and surveys to measure the nine domains. The GNH [Index](../i/index.md) is a composite score derived from these indicators, designed to reflect the general well-being of the population. +To operationalize GNH, Bhutan has developed a detailed set of indicators and surveys to measure the nine domains. The GNH [Index](../i/index_instrument.md) is a composite score derived from these indicators, designed to reflect the general well-being of the population. ### Indicators @@ -33,11 +33,11 @@ Each of the nine domains has [multiple](../m/multiple.md) indicators. For exampl ### Weightage -All nine domains are considered equally important for the GNH [Index](../i/index.md), although within each domain, some indicators may carry more weight than others depending on their relative significance. This approach ensures a balanced and comprehensive assessment of well-being that goes beyond economic metrics. +All nine domains are considered equally important for the GNH [Index](../i/index_instrument.md), although within each domain, some indicators may carry more weight than others depending on their relative significance. This approach ensures a balanced and comprehensive assessment of well-being that goes beyond economic metrics. ### Methodology -The data collection process involves face-to-face interviews conducted by trained surveyors. The respondents are selected through random [sampling](../s/sampling.md) to ensure demographic diversity and representation. Each [indicator](../i/indicator.md) is scored, and the aggregate scores are used to compute the overall GNH [Index](../i/index.md). Those scoring below a predefined threshold are considered 'unhappy,' and policymakers focus on these areas for targeted interventions. +The data collection process involves face-to-face interviews conducted by trained surveyors. The respondents are selected through random [sampling](../s/sampling.md) to ensure demographic diversity and representation. Each [indicator](../i/indicator.md) is scored, and the aggregate scores are used to compute the overall GNH [Index](../i/index_instrument.md). Those scoring below a predefined threshold are considered 'unhappy,' and policymakers focus on these areas for targeted interventions. ## Policy Implications and Global Influence diff --git a/en/pedia/g/gross_national_product_(gnp)_deflator.md b/en/pedia/g/gross_national_product_(gnp)_deflator.md index 24a619d2..42029c59 100644 --- a/en/pedia/g/gross_national_product_(gnp)_deflator.md +++ b/en/pedia/g/gross_national_product_(gnp)_deflator.md @@ -24,7 +24,7 @@ This formula highlights the relationship between [nominal](../n/nominal.md) GNP, ### Comparison with Other Price Indices -The GNP deflator is often compared with other price indices such as the Consumer Price [Index](../i/index.md) (CPI) and the Producer Price [Index](../i/index.md) (PPI). While the CPI measures the average change in prices paid by consumers for a [basket of goods](../b/basket_of_goods.md) and services, and the PPI tracks the average change in selling prices received by domestic producers for their output, the GNP deflator encompasses a broader [range](../r/range.md) of goods and services produced by the nation, including investment goods and government services. +The GNP deflator is often compared with other price indices such as the Consumer Price [Index](../i/index_instrument.md) (CPI) and the Producer Price [Index](../i/index_instrument.md) (PPI). While the CPI measures the average change in prices paid by consumers for a [basket of goods](../b/basket_of_goods.md) and services, and the PPI tracks the average change in selling prices received by domestic producers for their output, the GNP deflator encompasses a broader [range](../r/range.md) of goods and services produced by the nation, including investment goods and government services. ### Calculation Example @@ -51,7 +51,7 @@ While the GNP deflator is a valuable tool, it has some limitations: 2. **Sector Coverage**: Although the GNP deflator includes a broad [range](../r/range.md) of goods and services, certain sectors may be underrepresented, leading to potential biases. -3. **Price [Index](../i/index.md) Choice**: Different methods of calculating price indices can [yield](../y/yield.md) varying deflator values, complicating comparisons across countries or time periods. +3. **Price [Index](../i/index_instrument.md) Choice**: Different methods of calculating price indices can [yield](../y/yield.md) varying deflator values, complicating comparisons across countries or time periods. ### Application in Gross Domestic Product (GDP) diff --git a/en/pedia/g/gross_rate_of_return.md b/en/pedia/g/gross_rate_of_return.md index 424dccb4..9a8d0e06 100644 --- a/en/pedia/g/gross_rate_of_return.md +++ b/en/pedia/g/gross_rate_of_return.md @@ -39,7 +39,7 @@ While the GGR is a useful metric, it is often used in conjunction with other fin - **Net [Rate of Return](../r/rate_of_return.md)**: This metric considers all expenses, [taxes](../t/taxes.md), and fees associated with an investment, providing a more realistic view of profitability. - **[Sharpe Ratio](../s/sharpe_ratio.md)**: Measures the [risk-adjusted return](../r/risk-adjusted_return.md), indicating how much [excess return](../e/excess_return.md) is received per unit of [risk](../r/risk.md). -- **[Alpha](../a/alpha.md)**: Represents excess returns of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index.md). +- **[Alpha](../a/alpha.md)**: Represents excess returns of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). - **[Beta](../b/beta.md)**: Measures the [volatility](../v/volatility.md) or [systemic risk](../s/systemic_risk.md) of a [security](../s/security.md) or portfolio in comparison to the [market](../m/market.md) as a whole. ## Calculating GGR in Different Market Conditions diff --git a/en/pedia/g/growth-weighted_indices.md b/en/pedia/g/growth-weighted_indices.md index 27d6b4cd..4939ec6a 100644 --- a/en/pedia/g/growth-weighted_indices.md +++ b/en/pedia/g/growth-weighted_indices.md @@ -48,11 +48,11 @@ Despite their potential, growth-[weighted](../w/weighted.md) indices come with s ### Volatility -High-growth companies often exhibit higher [volatility](../v/volatility.md). Rapid price movements can lead to significant short-term fluctuations in [index](../i/index.md) [value](../v/value.md). +High-growth companies often exhibit higher [volatility](../v/volatility.md). Rapid price movements can lead to significant short-term fluctuations in [index](../i/index_instrument.md) [value](../v/value.md). ### Valuation Concerns -Growth-focused [stocks](../s/stock.md) can become [overvalued](../o/overvalued.md), especially if [market sentiment](../m/market_sentiment.md) drives their prices beyond fundamental values. This can result in corrections that negatively impact [index](../i/index.md) performance. +Growth-focused [stocks](../s/stock.md) can become [overvalued](../o/overvalued.md), especially if [market sentiment](../m/market_sentiment.md) drives their prices beyond fundamental values. This can result in corrections that negatively impact [index](../i/index_instrument.md) performance. ### Sector Concentration @@ -62,11 +62,11 @@ By emphasizing growth sectors, these indices may become overly concentrated in s ### NASDAQ-100 Index -The [NASDAQ](../n/nasdaq.md)-100 [Index](../i/index.md), albeit not a pure growth-[weighted](../w/weighted.md) [index](../i/index.md), is heavily tilted towards technology and biotech companies, sectors known for [robust](../r/robust.md) growth. It includes companies like Apple, Microsoft, and Amazon, which are leaders in innovation and [market](../m/market.md) [expansion](../e/expansion.md). +The [NASDAQ](../n/nasdaq.md)-100 [Index](../i/index_instrument.md), albeit not a pure growth-[weighted](../w/weighted.md) [index](../i/index_instrument.md), is heavily tilted towards technology and biotech companies, sectors known for [robust](../r/robust.md) growth. It includes companies like Apple, Microsoft, and Amazon, which are leaders in innovation and [market](../m/market.md) [expansion](../e/expansion.md). ### Russell 1000 Growth Index -The Russell 1000 Growth [Index](../i/index.md) specifically targets the growth segment of the Russell 1000, covering large-cap US [stocks](../s/stock.md) identified as having higher growth characteristics relative to the broader [market](../m/market.md). +The Russell 1000 Growth [Index](../i/index_instrument.md) specifically targets the growth segment of the Russell 1000, covering large-cap US [stocks](../s/stock.md) identified as having higher growth characteristics relative to the broader [market](../m/market.md). ## Companies Involved in Developing Growth-Weighted Indices @@ -80,13 +80,13 @@ Website: [MSCI Inc.](https://www.msci.com/) ### S&P Dow Jones Indices -A major player in the indices space, S&P Dow Jones Indices offers numerous growth-focused indices, including the S&P 500 Growth [Index](../i/index.md), which selects companies from the S&P 500 exhibiting strong growth metrics. +A major player in the indices space, S&P Dow Jones Indices offers numerous growth-focused indices, including the S&P 500 Growth [Index](../i/index_instrument.md), which selects companies from the S&P 500 exhibiting strong growth metrics. Website: [S&P Dow Jones Indices](https://www.spglobal.com/spdji/) ### Russell Investments -Russell Investments provides a [range](../r/range.md) of indices focusing on different [market](../m/market.md) segments, with the Russell 1000 Growth [Index](../i/index.md) being a notable example. +Russell Investments provides a [range](../r/range.md) of indices focusing on different [market](../m/market.md) segments, with the Russell 1000 Growth [Index](../i/index_instrument.md) being a notable example. Website: [Russell Investments](https://russellinvestments.com/) diff --git a/en/pedia/g/growth_and_income_fund.md b/en/pedia/g/growth_and_income_fund.md index efea321c..7006bc74 100644 --- a/en/pedia/g/growth_and_income_fund.md +++ b/en/pedia/g/growth_and_income_fund.md @@ -18,7 +18,7 @@ Given their dual focus, Growth and [Income](../i/income.md) Funds tend to exhibi ### 4. **Management Style** These funds can be either actively or passively managed. - **[Active Management](../a/active_management.md):** [Fund](../f/fund.md) managers actively select and [trade](../t/trade.md) securities to achieve the [fund](../f/fund.md)'s objectives. This approach can potentially result in higher returns but also comes with higher management fees. -- **Passive Management:** The [fund](../f/fund.md) aims to replicate the performance of a specific [index](../i/index.md), reducing management fees and providing a more predictable [return](../r/return.md) profile. +- **Passive Management:** The [fund](../f/fund.md) aims to replicate the performance of a specific [index](../i/index_instrument.md), reducing management fees and providing a more predictable [return](../r/return.md) profile. ## Types of Growth and Income Funds diff --git a/en/pedia/g/growth_cycle_analysis.md b/en/pedia/g/growth_cycle_analysis.md index 0d83bbc4..36f4f665 100644 --- a/en/pedia/g/growth_cycle_analysis.md +++ b/en/pedia/g/growth_cycle_analysis.md @@ -47,7 +47,7 @@ Integrating growth [cycle analysis](../c/cycle_analysis.md) into an [algorithmic ### Signal Generation -1. **[Indicator](../i/indicator.md)-Based Signals**: Develop indicators based on economic data. For example, creating a composite [index](../i/index.md) that combines GDP growth, [unemployment](../u/unemployment.md) rates, and [inflation](../i/inflation.md) to identify the current phase of the [economic cycle](../e/economic_cycle.md). +1. **[Indicator](../i/indicator.md)-Based Signals**: Develop indicators based on economic data. For example, creating a composite [index](../i/index_instrument.md) that combines GDP growth, [unemployment](../u/unemployment.md) rates, and [inflation](../i/inflation.md) to identify the current phase of the [economic cycle](../e/economic_cycle.md). 2. **[Pattern Recognition](../p/pattern_recognition.md)**: Utilize machine [learning algorithms](../l/learning_algorithms_in_trading.md) to recognize patterns that precede transitions between different phases. For instance, a combination of falling GDP and rising [unemployment](../u/unemployment.md) may signal an upcoming contraction. diff --git a/en/pedia/g/growth_fund.md b/en/pedia/g/growth_fund.md index abc90d60..5146da7b 100644 --- a/en/pedia/g/growth_fund.md +++ b/en/pedia/g/growth_fund.md @@ -46,7 +46,7 @@ Managed by Fidelity and well-regarded for its performance, this growth [fund](.. [Visit Fidelity Contrafund](https://fundresearch.fidelity.com/mutual-funds/summary/316071109) ### Vanguard Growth Index Fund (VIGAX) -This [fund](../f/fund.md) aims to closely track the performance of the CRSP US Large Cap Growth [Index](../i/index.md). Vanguard Growth [Index Fund](../i/index_fund.md) invests in [stocks](../s/stock.md) of large U.S. companies characterized by their growth potential. +This [fund](../f/fund.md) aims to closely track the performance of the CRSP US Large Cap Growth [Index](../i/index_instrument.md). Vanguard Growth [Index Fund](../i/index_fund.md) invests in [stocks](../s/stock.md) of large U.S. companies characterized by their growth potential. [Visit Vanguard Growth Index Fund](https://investor.vanguard.com/mutual-funds/profile/VIGAX) diff --git a/en/pedia/g/growth_investing_strategies.md b/en/pedia/g/growth_investing_strategies.md index 2ec3e109..de526add 100644 --- a/en/pedia/g/growth_investing_strategies.md +++ b/en/pedia/g/growth_investing_strategies.md @@ -31,7 +31,7 @@ Growth companies often reinvest their [earnings](../e/earnings.md) back into the [Technical analysis](../t/technical_analysis.md) involves analyzing [price patterns](../p/price_patterns.md), trading volumes, and other [market](../m/market.md)-generated data to forecast the future price movements of [stocks](../s/stock.md). Common [technical indicators](../t/technical_indicators.md) used in [growth investing](../g/growth_investing.md) include: - **Moving Averages:** Simple Moving Averages (SMA) and Exponential Moving Averages (EMA) help identify trends. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** Measures the speed and change of price movements to [check](../c/check.md) [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** Measures the speed and change of price movements to [check](../c/check.md) [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **[Bollinger Bands](../b/bollinger_bands.md):** Utilized to ascertain price [volatility](../v/volatility.md). - **[Volume Analysis](../v/volume_analysis.md):** Helps confirm trends and price movement strength. diff --git a/en/pedia/g/gsci_(s&p).md b/en/pedia/g/gsci_(s&p).md index 591f95f8..f9ee6795 100644 --- a/en/pedia/g/gsci_(s&p).md +++ b/en/pedia/g/gsci_(s&p).md @@ -1,9 +1,9 @@ # GSCI (S&P) -The S&P GSCI (formerly the Goldman Sachs [Commodity](../c/commodity.md) [Index](../i/index.md)) is a widely recognized, broad-based, production-[weighted](../w/weighted.md) [index](../i/index.md) that measures the performance of the global commodities [market](../m/market.md). This [index](../i/index.md) was created by Goldman Sachs in 1991 to serve as a [benchmark](../b/benchmark.md) for investment in the [commodity](../c/commodity.md) markets and was later acquired by Standard & Poor's (S&P) in 2007. The [index](../i/index.md) reflects the price changes and returns constituents like energy products, metals, agriculture, livestock, and other commodities, making it a valuable tool for investors and analysts. +The S&P GSCI (formerly the Goldman Sachs [Commodity](../c/commodity.md) [Index](../i/index_instrument.md)) is a widely recognized, broad-based, production-[weighted](../w/weighted.md) [index](../i/index_instrument.md) that measures the performance of the global commodities [market](../m/market.md). This [index](../i/index_instrument.md) was created by Goldman Sachs in 1991 to serve as a [benchmark](../b/benchmark.md) for investment in the [commodity](../c/commodity.md) markets and was later acquired by Standard & Poor's (S&P) in 2007. The [index](../i/index_instrument.md) reflects the price changes and returns constituents like energy products, metals, agriculture, livestock, and other commodities, making it a valuable tool for investors and analysts. ## Components and Structure -The S&P GSCI comprises 24 [exchange](../e/exchange.md)-traded [futures contracts](../f/futures_contracts.md) representing 24 different commodities spanning across five sectors: energy, industrial metals, precious metals, agriculture, and livestock. It is designed to be a diversified and global [benchmark](../b/benchmark.md) of the commodities [market](../m/market.md). The weight of each [commodity](../c/commodity.md) in the [index](../i/index.md) is determined based on its global production levels, which is recalculated annually to ensure the [index](../i/index.md) presents an accurate view of the [market](../m/market.md). +The S&P GSCI comprises 24 [exchange](../e/exchange.md)-traded [futures contracts](../f/futures_contracts.md) representing 24 different commodities spanning across five sectors: energy, industrial metals, precious metals, agriculture, and livestock. It is designed to be a diversified and global [benchmark](../b/benchmark.md) of the commodities [market](../m/market.md). The weight of each [commodity](../c/commodity.md) in the [index](../i/index_instrument.md) is determined based on its global production levels, which is recalculated annually to ensure the [index](../i/index_instrument.md) presents an accurate view of the [market](../m/market.md). ### Energy Sector Energy commodities constitute a significant portion of the S&P GSCI, making it highly sensitive to changes in the energy markets. This includes [crude oil](../c/crude_oil.md), refined products, natural gas, and other energy-related [futures](../f/futures.md). @@ -12,7 +12,7 @@ Energy commodities constitute a significant portion of the S&P GSCI, making it h The industrial metals sector covers commodities such as aluminum, copper, lead, nickel, and zinc. Industrial metals are critical for construction, [manufacturing](../m/manufacturing.md), and various other industries, making their performance essential to the global [economy](../e/economy.md). ### Precious Metals -Precious metals like gold and silver also form part of the [index](../i/index.md). These commodities are often seen as safe-haven assets and are used in a variety of applications, including jewelry, electronics, and as reserves by central banks. +Precious metals like gold and silver also form part of the [index](../i/index_instrument.md). These commodities are often seen as safe-haven assets and are used in a variety of applications, including jewelry, electronics, and as reserves by central banks. ### Agriculture The agriculture sector includes a [range](../r/range.md) of commodities, like wheat, corn, soybeans, coffee, sugar, and cotton. These commodities are essential for food production, textile [manufacturing](../m/manufacturing.md), and other industries. @@ -21,35 +21,35 @@ The agriculture sector includes a [range](../r/range.md) of commodities, like wh Livestock commodities include live cattle, feeder cattle, and lean hogs. These are vital components of the agriculture [industry](../i/industry.md) and are driven by factors like feed costs, disease outbreaks, and changing consumer preferences. ## Calculation of the Index -The calculation of the S&P GSCI involves [multiple](../m/multiple.md) steps, reflecting price changes of its constituent [futures contracts](../f/futures_contracts.md). Each [commodity](../c/commodity.md)'s impact on the [index](../i/index.md) is a function of their world production weight and the [commodity](../c/commodity.md)'s current price. This makes it a production-[weighted](../w/weighted.md) [index](../i/index.md) rather than a price-[weighted](../w/weighted.md) or [value](../v/value.md)-[weighted](../w/weighted.md) [index](../i/index.md). +The calculation of the S&P GSCI involves [multiple](../m/multiple.md) steps, reflecting price changes of its constituent [futures contracts](../f/futures_contracts.md). Each [commodity](../c/commodity.md)'s impact on the [index](../i/index_instrument.md) is a function of their world production weight and the [commodity](../c/commodity.md)'s current price. This makes it a production-[weighted](../w/weighted.md) [index](../i/index_instrument.md) rather than a price-[weighted](../w/weighted.md) or [value](../v/value.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md). ### Rolling Mechanism The S&P GSCI uses a rolling mechanism to ensure continuous exposure to commodities contracts, as [futures contracts](../f/futures_contracts.md) are subject to expiration. Typically, the rolling process takes place over a five-day period every month, shifting from the near-month contract to the next specified contract. ## Historical Performance -Historically, the S&P GSCI has shown a [correlation](../c/correlation.md) with [inflation](../i/inflation.md), effectively providing a [hedge](../h/hedge.md) against rising prices. It has also demonstrated periods of significant [volatility](../v/volatility.md), driven largely by sharp movements in the [energy sector](../e/energy_sector.md). This [volatility](../v/volatility.md) and its components' cyclical nature require careful consideration from investors using the [index](../i/index.md) as an investment tool. +Historically, the S&P GSCI has shown a [correlation](../c/correlation.md) with [inflation](../i/inflation.md), effectively providing a [hedge](../h/hedge.md) against rising prices. It has also demonstrated periods of significant [volatility](../v/volatility.md), driven largely by sharp movements in the [energy sector](../e/energy_sector.md). This [volatility](../v/volatility.md) and its components' cyclical nature require careful consideration from investors using the [index](../i/index_instrument.md) as an investment tool. ## Applications The S&P GSCI is utilized for various purposes: - **Benchmarking**: It's used by investors and [fund](../f/fund.md) managers to [benchmark](../b/benchmark.md) the performance of commodities investment portfolios. - **Financial Products**: Numerous financial products, such as ETFs and ETNs, are directly linked to the performance of the S&P GSCI, providing an accessible way for retail and institutional investors to [gain](../g/gain.md) exposure to the commodities [market](../m/market.md). -- **Economic Analysis**: Analysts often use the [index](../i/index.md) to study [commodity](../c/commodity.md) price trends and their broader economic implications. +- **Economic Analysis**: Analysts often use the [index](../i/index_instrument.md) to study [commodity](../c/commodity.md) price trends and their broader economic implications. ## Risks and Considerations [Investing](../i/investing.md) in commodities through the S&P GSCI carries several risks and considerations: -- **[Volatility](../v/volatility.md)**: The [index](../i/index.md) can experience significant price swings, particularly due to the high weight of energy commodities. -- **[Commodity](../c/commodity.md)-Specific Risks**: Different commodities within the [index](../i/index.md) have unique [risk factors](../r/risk_factors_in_trading.md) such as geopolitical events, weather conditions, and changes in [industry](../i/industry.md) [demand](../d/demand.md). +- **[Volatility](../v/volatility.md)**: The [index](../i/index_instrument.md) can experience significant price swings, particularly due to the high weight of energy commodities. +- **[Commodity](../c/commodity.md)-Specific Risks**: Different commodities within the [index](../i/index_instrument.md) have unique [risk factors](../r/risk_factors_in_trading.md) such as geopolitical events, weather conditions, and changes in [industry](../i/industry.md) [demand](../d/demand.md). - **Rolling Costs**: The cost associated with the rolling mechanism in [futures contracts](../f/futures_contracts.md) can impact overall returns. ## Investment Vehicles Several investment vehicles track the performance of the S&P GSCI, [offering](../o/offering.md) investors various means to [gain](../g/gain.md) exposure: -- **[Exchange](../e/exchange.md)-Traded Notes (ETNs)**: [Debt](../d/debt.md) securities that provide returns based on the performance of the [index](../i/index.md). -- **[Exchange](../e/exchange.md)-Traded Funds (ETFs)**: Funds that [hold](../h/hold.md) investments in [commodity futures](../c/commodity_futures.md) contracts to mimic the [index](../i/index.md) performance. +- **[Exchange](../e/exchange.md)-Traded Notes (ETNs)**: [Debt](../d/debt.md) securities that provide returns based on the performance of the [index](../i/index_instrument.md). +- **[Exchange](../e/exchange.md)-Traded Funds (ETFs)**: Funds that [hold](../h/hold.md) investments in [commodity futures](../c/commodity_futures.md) contracts to mimic the [index](../i/index_instrument.md) performance. - **Mutual Funds**: Actively managed or passive funds tracking the S&P GSCI composition. ## Future of S&P GSCI -With the growing [interest](../i/interest.md) in sustainable and environmental investments, the future of the S&P GSCI might involve modifications to incorporate ESG (Environmental, Social, and Governance) criteria, ensuring the [index](../i/index.md) continues to meet the evolving demands of the investment community. +With the growing [interest](../i/interest.md) in sustainable and environmental investments, the future of the S&P GSCI might involve modifications to incorporate ESG (Environmental, Social, and Governance) criteria, ensuring the [index](../i/index_instrument.md) continues to meet the evolving demands of the investment community. For further information about S&P GSCI, you can visit the official [S&P Dow Jones Indices website](https://www.spglobal.com/spdji/en/indices/commodities/sp-gsci/). -In summary, the S&P GSCI serves as a [robust](../r/robust.md) gauge for the global commodities [market](../m/market.md), providing investors with insight and exposure to various essential commodities. The [index](../i/index.md)'s detailed construction and diverse components ensure its continued relevance and [utility](../u/utility.md) in both [investment strategy](../i/investment_strategy.md) and [market](../m/market.md) analysis. \ No newline at end of file +In summary, the S&P GSCI serves as a [robust](../r/robust.md) gauge for the global commodities [market](../m/market.md), providing investors with insight and exposure to various essential commodities. The [index](../i/index_instrument.md)'s detailed construction and diverse components ensure its continued relevance and [utility](../u/utility.md) in both [investment strategy](../i/investment_strategy.md) and [market](../m/market.md) analysis. \ No newline at end of file diff --git a/en/pedia/g/guaranteed_lifetime_withdrawal_benefit_(glwb).md b/en/pedia/g/guaranteed_lifetime_withdrawal_benefit_(glwb).md index 0b0c38dd..aabf5532 100644 --- a/en/pedia/g/guaranteed_lifetime_withdrawal_benefit_(glwb).md +++ b/en/pedia/g/guaranteed_lifetime_withdrawal_benefit_(glwb).md @@ -72,7 +72,7 @@ Website: [Prudential Financial](https://www.prudential.com/) ### Allianz Life -Allianz Life provides a [range](../r/range.md) of fixed indexed annuities with GLWB features under the "Allianz [Index](../i/index.md) Advantage" suite. These products are known for their balance of growth potential and [income](../i/income.md) [security](../s/security.md). +Allianz Life provides a [range](../r/range.md) of fixed indexed annuities with GLWB features under the "Allianz [Index](../i/index_instrument.md) Advantage" suite. These products are known for their balance of growth potential and [income](../i/income.md) [security](../s/security.md). Website: [Allianz Life](https://www.allianzlife.com/) diff --git a/en/pedia/g/guideline_deviations.md b/en/pedia/g/guideline_deviations.md index 9060cb5d..daf0d307 100644 --- a/en/pedia/g/guideline_deviations.md +++ b/en/pedia/g/guideline_deviations.md @@ -40,7 +40,7 @@ High-frequency trading is a subset of [algorithmic trading](../a/algorithmic_tra 1. **Statistical [Arbitrage](../a/arbitrage.md)**: Uses statistical models to identify and exploit price inefficiencies. -2. **[Index](../i/index.md) [Arbitrage](../a/arbitrage.md)**: Exploits price differences between an [index](../i/index.md) and its constituent securities. +2. **[Index](../i/index_instrument.md) [Arbitrage](../a/arbitrage.md)**: Exploits price differences between an [index](../i/index_instrument.md) and its constituent securities. 3. **[Merger](../m/merger.md) [Arbitrage](../a/arbitrage.md)**: Involves buying and selling the [stocks](../s/stock.md) of companies involved in mergers or acquisitions to [profit](../p/profit.md) from expected changes in their prices. @@ -58,7 +58,7 @@ High-frequency trading is a subset of [algorithmic trading](../a/algorithmic_tra ### Basket Trading -Basket trading involves executing trades on a group of securities simultaneously. This strategy is often used in [index](../i/index.md) replication, where an algorithm replicates the performance of an [index](../i/index.md) by trading its component [stocks](../s/stock.md) in the correct proportions. +Basket trading involves executing trades on a group of securities simultaneously. This strategy is often used in [index](../i/index_instrument.md) replication, where an algorithm replicates the performance of an [index](../i/index_instrument.md) by trading its component [stocks](../s/stock.md) in the correct proportions. ## Regulatory Environment diff --git a/en/pedia/g/guideline_patterns.md b/en/pedia/g/guideline_patterns.md index cb9db775..7c28d60c 100644 --- a/en/pedia/g/guideline_patterns.md +++ b/en/pedia/g/guideline_patterns.md @@ -32,11 +32,11 @@ def mean_reversion_strategy(prices, window): [Momentum trading](../m/momentum_trading.md) is a strategy that capitalizes on the continuance of existing [market](../m/market.md) trends. Traders who use this strategy believe that strong price movements in a particular direction are likely to continue in that same direction for some time. ### Implementation -[Momentum](../m/momentum.md) strategies often involve indicators such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), or simple moving averages (SMA). +[Momentum](../m/momentum.md) strategies often involve indicators such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), or simple moving averages (SMA). ```python def momentum_strategy(prices, short_window, long_window): - signals = pd.DataFrame([index](../i/index.md)=prices.[index](../i/index.md)) + signals = pd.DataFrame([index](../i/index_instrument.md)=prices.[index](../i/index_instrument.md)) signals['signal'] = 0.0 signals['short_mavg'] = prices.rolling(window=short_window, min_periods=1).mean() diff --git a/en/pedia/h/halloween_massacre.md b/en/pedia/h/halloween_massacre.md index 3a69171c..b5ea5da5 100644 --- a/en/pedia/h/halloween_massacre.md +++ b/en/pedia/h/halloween_massacre.md @@ -28,7 +28,7 @@ On the evening of October 31, 2006, Canadian [Finance](../f/finance.md) Minister ## Market Reaction -The immediate fallout from the announcement was intense and dubbed the "Halloween Massacre" by the media and financial community. The [stock market](../s/stock_market.md) reacted violently, with the S&P/TSX [Income](../i/income.md) [Trust](../t/trust.md) [Index](../i/index.md) plummeting more than 12% in a single day. Billions of dollars in [market capitalization](../m/market_capitalization.md) were wiped out overnight. +The immediate fallout from the announcement was intense and dubbed the "Halloween Massacre" by the media and financial community. The [stock market](../s/stock_market.md) reacted violently, with the S&P/TSX [Income](../i/income.md) [Trust](../t/trust.md) [Index](../i/index_instrument.md) plummeting more than 12% in a single day. Billions of dollars in [market capitalization](../m/market_capitalization.md) were wiped out overnight. ### Investor Sentiment: diff --git a/en/pedia/h/hang_seng_index_(hsi).md b/en/pedia/h/hang_seng_index_(hsi).md index 50b1b151..a3a1b40f 100644 --- a/en/pedia/h/hang_seng_index_(hsi).md +++ b/en/pedia/h/hang_seng_index_(hsi).md @@ -1,21 +1,21 @@ # Hang Seng Index (HSI) -The Hang Seng [Index](../i/index.md) (HSI) is a freefloat-adjusted [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) stock [market index](../m/market_index.md) in Hong Kong. It is the primary [indicator](../i/indicator.md) of the overall [market](../m/market.md) performance in the Hong Kong Stock [Exchange](../e/exchange.md) (HKEX). The HSI covers the largest and most [liquid](../l/liquid.md) companies [listed](../l/listed.md) in Hong Kong, representing the performance of these industries: [Commerce](../c/commerce.md) and [Industry](../i/industry.md), [Finance](../f/finance.md), Utilities, and Properties. +The Hang Seng [Index](../i/index_instrument.md) (HSI) is a freefloat-adjusted [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) stock [market index](../m/market_index.md) in Hong Kong. It is the primary [indicator](../i/indicator.md) of the overall [market](../m/market.md) performance in the Hong Kong Stock [Exchange](../e/exchange.md) (HKEX). The HSI covers the largest and most [liquid](../l/liquid.md) companies [listed](../l/listed.md) in Hong Kong, representing the performance of these industries: [Commerce](../c/commerce.md) and [Industry](../i/industry.md), [Finance](../f/finance.md), Utilities, and Properties. ## Historical Background -The Hang Seng [Index](../i/index.md) was launched by the Hang Seng [Bank](../b/bank.md) on November 24, 1969, in [order](../o/order.md) to provide a yardstick of the Hong Kong [stock market](../s/stock_market.md)'s performance. The base [value](../v/value.md) of the [index](../i/index.md) was set at 100 points on July 31, 1964. Since its inception, the [index](../i/index.md) has been adjusted periodically to include additional [stocks](../s/stock.md) or to adjust for stock splits and consolidations. +The Hang Seng [Index](../i/index_instrument.md) was launched by the Hang Seng [Bank](../b/bank.md) on November 24, 1969, in [order](../o/order.md) to provide a yardstick of the Hong Kong [stock market](../s/stock_market.md)'s performance. The base [value](../v/value.md) of the [index](../i/index_instrument.md) was set at 100 points on July 31, 1964. Since its inception, the [index](../i/index_instrument.md) has been adjusted periodically to include additional [stocks](../s/stock.md) or to adjust for stock splits and consolidations. ## Calculation Methodology The HSI employs a freefloat-adjusted [market capitalization](../m/market_capitalization.md) weighting strategy. This means it takes into account only the [shares](../s/shares.md) readily available in the [market](../m/market.md) (free [float](../f/float.md)), ignoring those held by corporate insiders. The calculation formula can be outlined as follows: -**HSI = (Sum of Adjusted [Market](../m/market.md) Cap of Constituent [Stocks](../s/stock.md) / Base [Market Capitalization](../m/market_capitalization.md)) x Base [Index](../i/index.md) [Value](../v/value.md)** +**HSI = (Sum of Adjusted [Market](../m/market.md) Cap of Constituent [Stocks](../s/stock.md) / Base [Market Capitalization](../m/market_capitalization.md)) x Base [Index](../i/index_instrument.md) [Value](../v/value.md)** Where: - Adjusted [Market](../m/market.md) Cap is computed by multiplying the Share Price by the Freefloat-Adjusted Number of [Shares](../s/shares.md). -- The Base [Market Capitalization](../m/market_capitalization.md) and Base [Index](../i/index.md) [Value](../v/value.md) are constants that were set when the [index](../i/index.md) was launched. +- The Base [Market Capitalization](../m/market_capitalization.md) and Base [Index](../i/index_instrument.md) [Value](../v/value.md) are constants that were set when the [index](../i/index_instrument.md) was launched. ## Constituents and Weighting -As of the latest revision, the Hang Seng [Index](../i/index.md) comprises 66 constituent companies, reflecting around 58% of the total [market capitalization](../m/market_capitalization.md) on the Hong Kong Stock [Exchange](../e/exchange.md). The constituents are selected based on +As of the latest revision, the Hang Seng [Index](../i/index_instrument.md) comprises 66 constituent companies, reflecting around 58% of the total [market capitalization](../m/market_capitalization.md) on the Hong Kong Stock [Exchange](../e/exchange.md). The constituents are selected based on - [Market capitalization](../m/market_capitalization.md), - Sector representation, - [Turnover](../t/turnover.md), @@ -32,7 +32,7 @@ The HSI categorizes its constituents into four primary sectors: 4. **Properties**: Includes [real estate](../r/real_estate.md) developers and investment trusts. ## Performance and Significance -The HSI is regarded as the heartbeat of the Hong Kong [stock market](../s/stock_market.md) and a barometer of the economic health of Hong Kong Special Administrative Region. [Hedge](../h/hedge.md) funds, mutual funds, and individual investors all closely follow the [index](../i/index.md). Its performance can be impacted by local economic data, regional and global [market](../m/market.md) trends, regulatory changes, and geopolitical events. +The HSI is regarded as the heartbeat of the Hong Kong [stock market](../s/stock_market.md) and a barometer of the economic health of Hong Kong Special Administrative Region. [Hedge](../h/hedge.md) funds, mutual funds, and individual investors all closely follow the [index](../i/index_instrument.md). Its performance can be impacted by local economic data, regional and global [market](../m/market.md) trends, regulatory changes, and geopolitical events. ## Trading and Derivatives Various financial products derive their [value](../v/value.md) from the HSI. These include: @@ -49,4 +49,4 @@ The Hong Kong Exchanges and [Clearing](../c/clearing.md) Limited (HKEX) facilita - **2019 Protests and COVID-19 Pandemic**: Both events tested the resilience of the HSI with considerable fluctuations in [market](../m/market.md) performance. ## Conclusion -The Hang Seng [Index](../i/index.md) serves as a vital [indicator](../i/indicator.md) and financial tool representing the Hong Kong [stock market](../s/stock_market.md). Its highly diversified and freefloat-adjusted nature provides a comprehensive snapshot of [market](../m/market.md) trends, making it indispensable for both local and international investors. Given its historical significance and role in the financial landscape, the HSI [will](../w/will.md) likely continue to be a focal point for [market](../m/market.md) analysis and [trading strategies](../t/trading_strategies.md). \ No newline at end of file +The Hang Seng [Index](../i/index_instrument.md) serves as a vital [indicator](../i/indicator.md) and financial tool representing the Hong Kong [stock market](../s/stock_market.md). Its highly diversified and freefloat-adjusted nature provides a comprehensive snapshot of [market](../m/market.md) trends, making it indispensable for both local and international investors. Given its historical significance and role in the financial landscape, the HSI [will](../w/will.md) likely continue to be a focal point for [market](../m/market.md) analysis and [trading strategies](../t/trading_strategies.md). \ No newline at end of file diff --git a/en/pedia/h/hanging_man_candlestick.md b/en/pedia/h/hanging_man_candlestick.md index a9584426..bbfc7ee9 100644 --- a/en/pedia/h/hanging_man_candlestick.md +++ b/en/pedia/h/hanging_man_candlestick.md @@ -22,7 +22,7 @@ The hanging man [candlestick](../c/candlestick.md) is a [technical analysis](../ While the hanging man itself indicates a possible [trend reversal](../t/trend_reversal.md), it is generally advised to confirm this signal with subsequent [price action](../p/price_action.md) before making trading decisions. Confirmation can involve: - **Subsequent bearish [candlestick](../c/candlestick.md)**: A follow-up [candlestick](../c/candlestick.md) closing below the hanging man's real body reinforces the bearish signal. - **[Volume analysis](../v/volume_analysis.md)**: Higher trading [volume](../v/volume.md) on or after the hanging man formation can strengthen the validity of the pattern. -- **Other [technical indicators](../t/technical_indicator.md)**: Using additional indicators like the [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), moving average convergence [divergence](../d/divergence.md) (MACD), or [trend](../t/trend.md) lines can help confirm the signal. +- **Other [technical indicators](../t/technical_indicator.md)**: Using additional indicators like the [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), moving average convergence [divergence](../d/divergence.md) (MACD), or [trend](../t/trend.md) lines can help confirm the signal. ## Trading Strategies Involving the Hanging Man diff --git a/en/pedia/h/hanoi_stock_exchange_(hnx).md b/en/pedia/h/hanoi_stock_exchange_(hnx).md index 55385b19..5cd7d9b7 100644 --- a/en/pedia/h/hanoi_stock_exchange_(hnx).md +++ b/en/pedia/h/hanoi_stock_exchange_(hnx).md @@ -21,7 +21,7 @@ The Hanoi Stock [Exchange](../e/exchange.md), originally known as the Hanoi Secu - The [exchange](../e/exchange.md) also launched the UPCoM (Unlisted [Public Company](../p/public_company.md) [Market](../m/market.md)) to facilitate the trading of unlisted public companies. 4. **Development of [Derivatives](../d/derivatives.md) [Market](../m/market.md)**: - - In 2017, HNX made a significant leap by establishing Vietnam's first [derivatives](../d/derivatives.md) [market](../m/market.md), starting with [futures contracts](../f/futures_contracts.md) on the VN30 [Index](../i/index.md) and government bonds. + - In 2017, HNX made a significant leap by establishing Vietnam's first [derivatives](../d/derivatives.md) [market](../m/market.md), starting with [futures contracts](../f/futures_contracts.md) on the VN30 [Index](../i/index_instrument.md) and government bonds. ## Structure and Operations @@ -68,13 +68,13 @@ HNX has invested heavily in technological advancements to ensure smooth and effi HNX features several [market](../m/market.md) indices that serve as benchmarks for various segments. Notable indices include: -1. **HNX [Index](../i/index.md)**: - - The HNX [Index](../i/index.md) is the primary [benchmark](../b/benchmark.md), reflecting the performance of all [listed](../l/listed.md) companies on the Hanoi Stock [Exchange](../e/exchange.md). +1. **HNX [Index](../i/index_instrument.md)**: + - The HNX [Index](../i/index_instrument.md) is the primary [benchmark](../b/benchmark.md), reflecting the performance of all [listed](../l/listed.md) companies on the Hanoi Stock [Exchange](../e/exchange.md). -2. **HNX30 [Index](../i/index.md)**: - - This [index](../i/index.md) includes the top 30 companies by [market capitalization](../m/market_capitalization.md) and [liquidity](../l/liquidity.md), providing a snapshot of the leading performers. +2. **HNX30 [Index](../i/index_instrument.md)**: + - This [index](../i/index_instrument.md) includes the top 30 companies by [market capitalization](../m/market_capitalization.md) and [liquidity](../l/liquidity.md), providing a snapshot of the leading performers. -3. **UPCoM [Index](../i/index.md)**: +3. **UPCoM [Index](../i/index_instrument.md)**: - It tracks the performance of companies [listed](../l/listed.md) on the UPCoM, [offering](../o/offering.md) insights into this segment of the [market](../m/market.md). ## Market Participation diff --git a/en/pedia/h/happiness_economics.md b/en/pedia/h/happiness_economics.md index 367d5f73..838bcdb2 100644 --- a/en/pedia/h/happiness_economics.md +++ b/en/pedia/h/happiness_economics.md @@ -56,7 +56,7 @@ Individual psychological traits such as optimism, resilience, and a sense of con ### Public Policy and GNH -Governments are increasingly considering happiness metrics to guide public policy. Policymakers can design initiatives that promote well-being, such as improved healthcare systems, social [welfare](../w/welfare.md) programs, and community-building activities. Bhutan's GNH [index](../i/index.md) serves as a paradigm for incorporating happiness into national policy. +Governments are increasingly considering happiness metrics to guide public policy. Policymakers can design initiatives that promote well-being, such as improved healthcare systems, social [welfare](../w/welfare.md) programs, and community-building activities. Bhutan's GNH [index](../i/index_instrument.md) serves as a paradigm for incorporating happiness into national policy. ### Workplace Policies diff --git a/en/pedia/h/harami_cross.md b/en/pedia/h/harami_cross.md index ac5cb35e..f28151e0 100644 --- a/en/pedia/h/harami_cross.md +++ b/en/pedia/h/harami_cross.md @@ -58,18 +58,18 @@ def within_candle_body([doji](../d/doji.md), previous_candle): def confirm_and_trade(patterns, data): trades = [] for pattern in patterns: - [index](../i/index.md) = data.[index](../i/index.md)(pattern[1]) - if confirmation(data, [index](../i/index.md)): + [index](../i/index_instrument.md) = data.[index](../i/index_instrument.md)(pattern[1]) + if confirmation(data, [index](../i/index_instrument.md)): action = 'buy' if pattern[0]['close'] < pattern[0]['[open](../o/open.md)'] else 'sell' - stop_loss = data[[index](../i/index.md)+1]['low'] if action == 'buy' else data[[index](../i/index.md)+1]['high'] - [trade](../t/trade.md) = execute_trade(action, data[[index](../i/index.md)+2], stop_loss) + stop_loss = data[[index](../i/index_instrument.md)+1]['low'] if action == 'buy' else data[[index](../i/index_instrument.md)+1]['high'] + [trade](../t/trade.md) = execute_trade(action, data[[index](../i/index_instrument.md)+2], stop_loss) trades.append([trade](../t/trade.md)) [return](../r/return.md) trades -def confirmation(data, [index](../i/index.md)): - if [index](../i/index.md) + 2 >= len(data): +def confirmation(data, [index](../i/index_instrument.md)): + if [index](../i/index_instrument.md) + 2 >= len(data): [return](../r/return.md) False - [return](../r/return.md) data[[index](../i/index.md)+2]['close'] > data[[index](../i/index.md)+1]['high'] if data[[index](../i/index.md)+1]['close'] < data[[index](../i/index.md)+1]['open'] else data[[index](../i/index.md)+2]['close'] < data[[index](../i/index.md)+1]['low'] + [return](../r/return.md) data[[index](../i/index_instrument.md)+2]['close'] > data[[index](../i/index_instrument.md)+1]['high'] if data[[index](../i/index_instrument.md)+1]['close'] < data[[index](../i/index_instrument.md)+1]['open'] else data[[index](../i/index_instrument.md)+2]['close'] < data[[index](../i/index_instrument.md)+1]['low'] def execute_trade(action, entry_candle, stop_loss): [return](../r/return.md) { diff --git a/en/pedia/h/hard_asset.md b/en/pedia/h/hard_asset.md index 073eafcc..916d02dc 100644 --- a/en/pedia/h/hard_asset.md +++ b/en/pedia/h/hard_asset.md @@ -61,7 +61,7 @@ ETFs that focus on hard assets provide a convenient way to [gain](../g/gain.md) - **SPDR Gold [Shares](../s/shares.md) (GLD)**: Tracks the price of gold. - **[iShares](../i/ishares.md) Silver [Trust](../t/trust.md) (SLV)**: Tracks the price of silver. -- **Invesco DB [Commodity](../c/commodity.md) [Index](../i/index.md) Tracking [Fund](../f/fund.md) (DBC)**: Provides exposure to a broad [range](../r/range.md) of commodities. +- **Invesco DB [Commodity](../c/commodity.md) [Index](../i/index_instrument.md) Tracking [Fund](../f/fund.md) (DBC)**: Provides exposure to a broad [range](../r/range.md) of commodities. ## Risks and Considerations diff --git a/en/pedia/h/hardening.md b/en/pedia/h/hardening.md index 442a3c11..a6cd9ebd 100644 --- a/en/pedia/h/hardening.md +++ b/en/pedia/h/hardening.md @@ -46,7 +46,7 @@ For algo traders, detecting hardening conditions involves monitoring various ind 1. **[Standard Deviation](../s/standard_deviation.md)**: Measures the [dispersion](../d/dispersion.md) of [security](../s/security.md) prices from their mean, providing insights into [volatility](../v/volatility.md) levels. -2. **VIX [Index](../i/index.md)**: Known as the "fear gauge," the VIX [Index](../i/index.md) tracks [market](../m/market.md) [volatility](../v/volatility.md) expectations over the next 30 days. Lower VIX values suggest stabilized markets. +2. **VIX [Index](../i/index_instrument.md)**: Known as the "fear gauge," the VIX [Index](../i/index_instrument.md) tracks [market](../m/market.md) [volatility](../v/volatility.md) expectations over the next 30 days. Lower VIX values suggest stabilized markets. ### Technical Indicators diff --git a/en/pedia/h/harmless_warrant.md b/en/pedia/h/harmless_warrant.md index 20d13e3a..5dd7ba0d 100644 --- a/en/pedia/h/harmless_warrant.md +++ b/en/pedia/h/harmless_warrant.md @@ -8,7 +8,7 @@ A "harmless [warrant](../w/warrant.md)" in the context of [algorithmic trading]( [Equity](../e/equity.md) [warrants](../w/warrants_in_trading.md) give the holder the right to purchase company stock at a specified price within a certain time frame. Companies often [issue](../i/issue.md) these to raise [capital](../c/capital.md). [Algorithmic trading strategies](../a/algorithmic_trading_strategies.md) involving [equity](../e/equity.md) [warrants](../w/warrants_in_trading.md) might focus on [arbitrage opportunities](../a/arbitrage_opportunities.md) or hedging positions against other [equity](../e/equity.md) [holdings](../h/holdings.md). ### Index Warrants -These are tied to various stock indices like the S&P 500 or FTSE 100. [Trading algorithms](../t/trading_algorithms.md) may use [index](../i/index.md) [warrants](../w/warrants_in_trading.md) to effectively [hedge](../h/hedge.md) positions or to speculate on the future movement of the [index](../i/index.md). +These are tied to various stock indices like the S&P 500 or FTSE 100. [Trading algorithms](../t/trading_algorithms.md) may use [index](../i/index_instrument.md) [warrants](../w/warrants_in_trading.md) to effectively [hedge](../h/hedge.md) positions or to speculate on the future movement of the [index](../i/index_instrument.md). ### Covered Warrants These are issued by financial institutions rather than the companies themselves and are backed by the [issuer](../i/issuer.md). They provide a more flexible and lower-[risk](../r/risk.md) method for speculative trading. These are often the focus of [algorithmic trading](../a/accountability.md) due to their structured nature. @@ -51,7 +51,7 @@ This strategy involves complex [mathematical models](../m/mathematical_models_in ## Real-world Applications ### Financial Institutions -Major financial institutions such as [Goldman Sachs](https://www.goldmansachs.com/) and [Morgan Stanley](https://www.morganstanley.com/) deploy advanced [algorithmic trading platforms](../a/algorithmic_trading_platforms.md) to manage a diversified portfolio that includes [equity](../e/equity.md), [index](../i/index.md), and covered [warrants](../w/warrants_in_trading.md). +Major financial institutions such as [Goldman Sachs](https://www.goldmansachs.com/) and [Morgan Stanley](https://www.morganstanley.com/) deploy advanced [algorithmic trading platforms](../a/algorithmic_trading_platforms.md) to manage a diversified portfolio that includes [equity](../e/equity.md), [index](../i/index_instrument.md), and covered [warrants](../w/warrants_in_trading.md). ### Hedge Funds [Hedge](../h/hedge.md) funds like [Renaissance Technologies](https://www.rentec.com/home) are known for using highly sophisticated, AI-driven algorithms that can incorporate harmless [warrants](../w/warrants_in_trading.md) into broader [trading strategies](../t/trading_strategies.md) to maximize returns and minimize risks. diff --git a/en/pedia/h/harmonized_index_of_consumer_prices_(hicp).md b/en/pedia/h/harmonized_index_of_consumer_prices_(hicp).md index b3d1388f..8fa44ab9 100644 --- a/en/pedia/h/harmonized_index_of_consumer_prices_(hicp).md +++ b/en/pedia/h/harmonized_index_of_consumer_prices_(hicp).md @@ -1,6 +1,6 @@ # Harmonized Index of Consumer Prices (HICP) -The Harmonized [Index](../i/index.md) of Consumer Prices (HICP) is a specially designed measure of consumer price [inflation](../i/inflation.md) that is comparable across EU Member States. Developed and maintained by Eurostat, it allows economists, policymakers, and financial analysts to measure and compare the rate of [inflation](../i/inflation.md) among EU countries while providing a consistent [basis](../b/basis.md) for [inflation](../i/inflation.md) targeting and economic policy formulation. +The Harmonized [Index](../i/index_instrument.md) of Consumer Prices (HICP) is a specially designed measure of consumer price [inflation](../i/inflation.md) that is comparable across EU Member States. Developed and maintained by Eurostat, it allows economists, policymakers, and financial analysts to measure and compare the rate of [inflation](../i/inflation.md) among EU countries while providing a consistent [basis](../b/basis.md) for [inflation](../i/inflation.md) targeting and economic policy formulation. ## Definition and Purpose @@ -26,7 +26,7 @@ The HICP takes into account a broad spectrum of goods and services, categorized ### Weighting Scheme -HICP is constructed using a Laspeyres-type [index](../i/index.md), which uses weights derived from the Household [Budget](../b/budget.md) Surveys reflecting consumption patterns of the target population. These weights are periodically updated to ensure they reflect the most current and relevant spending behaviors. Concretely, each category's price change is [weighted](../w/weighted.md) by its importance in the total consumption expenditure of households. +HICP is constructed using a Laspeyres-type [index](../i/index_instrument.md), which uses weights derived from the Household [Budget](../b/budget.md) Surveys reflecting consumption patterns of the target population. These weights are periodically updated to ensure they reflect the most current and relevant spending behaviors. Concretely, each category's price change is [weighted](../w/weighted.md) by its importance in the total consumption expenditure of households. ### Data Collection @@ -73,4 +73,4 @@ Eurostat ensures that HICP data is readily accessible to the public, promoting [ ## Conclusion -The Harmonized [Index](../i/index.md) of Consumer Prices (HICP) is a vital statistical [indicator](../i/indicator.md) that supports economic policymaking, inter-country comparisons, and financial [market](../m/market.md) analysis within the [European Union](../e/european_union_(eu).md). By providing a consistent and harmonized measure of consumer price [inflation](../i/inflation.md), it enables more effective and coordinated economic strategies, hence supporting the stability and growth of the broader European [economy](../e/economy.md). \ No newline at end of file +The Harmonized [Index](../i/index_instrument.md) of Consumer Prices (HICP) is a vital statistical [indicator](../i/indicator.md) that supports economic policymaking, inter-country comparisons, and financial [market](../m/market.md) analysis within the [European Union](../e/european_union_(eu).md). By providing a consistent and harmonized measure of consumer price [inflation](../i/inflation.md), it enables more effective and coordinated economic strategies, hence supporting the stability and growth of the broader European [economy](../e/economy.md). \ No newline at end of file diff --git a/en/pedia/h/hashkey_global.md b/en/pedia/h/hashkey_global.md index 9e126568..9d55166c 100644 --- a/en/pedia/h/hashkey_global.md +++ b/en/pedia/h/hashkey_global.md @@ -14,7 +14,7 @@ HashKey Global offers a [range](../r/range.md) of digital [asset management](../ HashKey provides actively managed funds that [leverage](../l/leverage.md) quantitative and fundamental strategies to generate returns. Their team of experienced traders and analysts utilize a [range](../r/range.md) of [trading signals](../t/trading_signals.md) and [proprietary algorithms](../p/proprietary_algorithms.md) to optimize [portfolio performance](../p/portfolio_performance.md). ### Passive Products -In addition to actively managed funds, HashKey offers passive investment products such as [index](../i/index.md) funds and [exchange](../e/exchange.md)-traded funds (ETFs) that allow investors to [gain](../g/gain.md) exposure to a diversified basket of digital assets. +In addition to actively managed funds, HashKey offers passive investment products such as [index](../i/index_instrument.md) funds and [exchange](../e/exchange.md)-traded funds (ETFs) that allow investors to [gain](../g/gain.md) exposure to a diversified basket of digital assets. ### Staking Services HashKey also provides staking services, enabling clients to earn rewards by participating in the validation processes of various [blockchain](../b/blockchain_in_trading.md) networks. This service is particularly valuable for investors looking to generate [yield](../y/yield.md) from their digital [asset](../a/asset.md) [holdings](../h/holdings.md). diff --git a/en/pedia/h/head-fake_trade.md b/en/pedia/h/head-fake_trade.md index a0348c15..7f1daff0 100644 --- a/en/pedia/h/head-fake_trade.md +++ b/en/pedia/h/head-fake_trade.md @@ -36,7 +36,7 @@ Although identifying head-fakes with certainty is challenging, several technique 2. **[Pattern Recognition](../p/pattern_recognition.md)**: Certain technical patterns such as false breakouts, fake-outs in [chart patterns](../c/chart_patterns.md) like flags, pennants, and head-and-shoulders can serve as harbingers of head-fakes. -3. **[Market Sentiment](../m/market_sentiment.md)**: Gauging the overall [market sentiment](../m/market_sentiment.md) using indicators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or [sentiment analysis tools](../s/sentiment_analysis_tools.md) can help in identifying [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions that might precede head-fake movements. +3. **[Market Sentiment](../m/market_sentiment.md)**: Gauging the overall [market sentiment](../m/market_sentiment.md) using indicators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or [sentiment analysis tools](../s/sentiment_analysis_tools.md) can help in identifying [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions that might precede head-fake movements. 4. **[Order Book Analysis](../o/order_book_analysis.md)**: Analyzing the [order book](../o/order_book.md) can reveal [hidden liquidity](../h/hidden_liquidity.md) and potential traps set by larger players intending to create head-fake scenarios. diff --git a/en/pedia/h/head_fake_in_trading.md b/en/pedia/h/head_fake_in_trading.md index 390a237b..ada7f7e0 100644 --- a/en/pedia/h/head_fake_in_trading.md +++ b/en/pedia/h/head_fake_in_trading.md @@ -6,7 +6,7 @@ In trading, particularly in the context of stock and cryptocurrency markets, a " A head fake typically involves the following sequence of events: -1. **Initial Movement**: The price or [index](../i/index.md) breaks out of a trading [range](../r/range.md) or moves through a significant level, such as support or resistance. +1. **Initial Movement**: The price or [index](../i/index_instrument.md) breaks out of a trading [range](../r/range.md) or moves through a significant level, such as support or resistance. 2. **Convincing [Expansion](../e/expansion.md)**: The price extends its move, which can attract further buying or selling due to traders implementing [breakout](../b/breakout.md) strategies. 3. **[Reversal](../r/reversal.md)**: After attracting enough participation, the price reverses direction sharply, often leading to [stop-loss orders](../s/stop-loss_orders.md) being triggered and traders being caught off guard. @@ -40,7 +40,7 @@ Looking at [volume](../v/volume.md) can provide clues about the validity of a pr #### **Confirmation Indicators** -Using [technical indicators](../t/technical_indicators.md) like the Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), or Simple Moving Averages (SMA) for confirmation can help mitigate head fake risks. For example, if a bullish [breakout](../b/breakout.md) occurs but is not confirmed by the MACD, the [breakout](../b/breakout.md) might be a head fake. +Using [technical indicators](../t/technical_indicators.md) like the Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), or Simple Moving Averages (SMA) for confirmation can help mitigate head fake risks. For example, if a bullish [breakout](../b/breakout.md) occurs but is not confirmed by the MACD, the [breakout](../b/breakout.md) might be a head fake. #### **Support and Resistance Zones** diff --git a/en/pedia/h/headline_inflation.md b/en/pedia/h/headline_inflation.md index 35fdc5cd..7c165b7f 100644 --- a/en/pedia/h/headline_inflation.md +++ b/en/pedia/h/headline_inflation.md @@ -1,12 +1,12 @@ # Headline Inflation ## Introduction -[Inflation](../i/inflation.md) is a key [economic indicator](../e/economic_indicator.md) that highlights the rate at which the general level of prices for goods and services is rising and subsequently eroding [purchasing power](../p/purchasing_power.md). One of the most commonly cited metrics to gauge [inflation](../i/inflation.md) is the Consumer Price [Index](../i/index.md) (CPI). Within the realm of CPI, headline [inflation](../i/inflation.md) represents the total [inflation](../i/inflation.md) within an [economy](../e/economy.md), encompassing all goods and services, including those with highly volatile prices such as food and energy. +[Inflation](../i/inflation.md) is a key [economic indicator](../e/economic_indicator.md) that highlights the rate at which the general level of prices for goods and services is rising and subsequently eroding [purchasing power](../p/purchasing_power.md). One of the most commonly cited metrics to gauge [inflation](../i/inflation.md) is the Consumer Price [Index](../i/index_instrument.md) (CPI). Within the realm of CPI, headline [inflation](../i/inflation.md) represents the total [inflation](../i/inflation.md) within an [economy](../e/economy.md), encompassing all goods and services, including those with highly volatile prices such as food and energy. ## Consumer Price Index (CPI) ### Definition -The Consumer Price [Index](../i/index.md) (CPI) measures the average change over time in the prices paid by urban consumers for a [market](../m/market.md) basket of [consumer goods](../c/consumer_goods.md) and services. It is a [principal](../p/principal.md) measure of [inflation](../i/inflation.md), providing critical insights for policymakers, businesses, and the general public. +The Consumer Price [Index](../i/index_instrument.md) (CPI) measures the average change over time in the prices paid by urban consumers for a [market](../m/market.md) basket of [consumer goods](../c/consumer_goods.md) and services. It is a [principal](../p/principal.md) measure of [inflation](../i/inflation.md), providing critical insights for policymakers, businesses, and the general public. ### Components of CPI CPI is composed of various categories, reflecting goods and services that urban consumers are likely to purchase. Major components include: @@ -20,7 +20,7 @@ CPI is composed of various categories, reflecting goods and services that urban 8. Other Goods and Services ### Calculation Methodology -The CPI is calculated by taking price changes for each item in the predetermined [basket of goods](../b/basket_of_goods.md) and averaging them. The goods are [weighted](../w/weighted.md) based on their importance to the average consumer. The [base year](../b/base_year.md)’s price [index](../i/index.md) is usually set to 100, and current CPI can be compared against this base to understand price changes over time. +The CPI is calculated by taking price changes for each item in the predetermined [basket of goods](../b/basket_of_goods.md) and averaging them. The goods are [weighted](../w/weighted.md) based on their importance to the average consumer. The [base year](../b/base_year.md)’s price [index](../i/index_instrument.md) is usually set to 100, and current CPI can be compared against this base to understand price changes over time. ## Headline Inflation @@ -71,8 +71,8 @@ In the recent past, headline [inflation](../i/inflation.md) rates have shown sig Analysts interpret headline [inflation](../i/inflation.md) data by comparing it against historical trends, economic forecasts, and core [inflation](../i/inflation.md) figures to understand whether observed changes are transient or indicative of longer-term trends. ## Conclusion -Headline [inflation](../i/inflation.md), reported in the Consumer Price [Index](../i/index.md), provides a comprehensive view of inflationary pressures in the [economy](../e/economy.md) by including all items in the consumer basket. While it offers an immediate snapshot of price changes affecting consumers, its [volatility](../v/volatility.md) necessitates complementary analysis with core [inflation](../i/inflation.md) to guide policy decisions. Regular monitoring and interpretation of headline [inflation](../i/inflation.md) are crucial for economic planning, [business](../b/business.md) strategy, and informed investment decisions. For more detailed information, you can refer directly to the Bureau of Labor [Statistics](../s/statistics.md) website at [BLS CPI Overview](https://www.bls.gov/cpi/). +Headline [inflation](../i/inflation.md), reported in the Consumer Price [Index](../i/index_instrument.md), provides a comprehensive view of inflationary pressures in the [economy](../e/economy.md) by including all items in the consumer basket. While it offers an immediate snapshot of price changes affecting consumers, its [volatility](../v/volatility.md) necessitates complementary analysis with core [inflation](../i/inflation.md) to guide policy decisions. Regular monitoring and interpretation of headline [inflation](../i/inflation.md) are crucial for economic planning, [business](../b/business.md) strategy, and informed investment decisions. For more detailed information, you can refer directly to the Bureau of Labor [Statistics](../s/statistics.md) website at [BLS CPI Overview](https://www.bls.gov/cpi/). ## References -- U.S. Bureau of Labor [Statistics](../s/statistics.md) (BLS). Consumer Price [Index](../i/index.md) (CPI) Overview. [BLS CPI Overview](https://www.bls.gov/cpi/) +- U.S. Bureau of Labor [Statistics](../s/statistics.md) (BLS). Consumer Price [Index](../i/index_instrument.md) (CPI) Overview. [BLS CPI Overview](https://www.bls.gov/cpi/) - Investopedia. Headline [Inflation](../i/inflation.md) Definition. [Investopedia Headline Inflation](https://www.investopedia.com/terms/h/headline-inflation.asp) \ No newline at end of file diff --git a/en/pedia/h/headline_risk.md b/en/pedia/h/headline_risk.md index 9cf9ce77..f720c583 100644 --- a/en/pedia/h/headline_risk.md +++ b/en/pedia/h/headline_risk.md @@ -28,7 +28,7 @@ Quantifying headline [risk](../r/risk.md) can be challenging, as it involves bot 2. **Event Studies:** Examining historical price movements of [stocks](../s/stock.md) or assets in response to specific news events can provide insights into how similar headlines might impact the [market](../m/market.md) in the future. -3. **[Volatility](../v/volatility.md) Indexes:** [Volatility](../v/volatility.md) measures, such as the CBOE [Volatility](../v/volatility.md) [Index](../i/index.md) (VIX), can indicate [market](../m/market.md) expectations for future [volatility](../v/volatility.md). High VIX levels often correspond to increased headline [risk](../r/risk.md). +3. **[Volatility](../v/volatility.md) Indexes:** [Volatility](../v/volatility.md) measures, such as the CBOE [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX), can indicate [market](../m/market.md) expectations for future [volatility](../v/volatility.md). High VIX levels often correspond to increased headline [risk](../r/risk.md). 4. **[Market](../m/market.md) Reaction Models:** Econometric models can be designed to estimate the impact of news events on [asset](../a/asset.md) prices. These models take into account factors such as the timing, nature, and context of the news. diff --git a/en/pedia/h/heating_degree_day_(hdd).md b/en/pedia/h/heating_degree_day_(hdd).md index 7304ae51..5f721eab 100644 --- a/en/pedia/h/heating_degree_day_(hdd).md +++ b/en/pedia/h/heating_degree_day_(hdd).md @@ -1,6 +1,6 @@ # Heating Degree Day (HDD) -Heating Degree Days (HDD) are a quantitative [index](../i/index.md) used to reflect the [demand](../d/demand.md) for energy needed to heat a building. The [index](../i/index.md) is derived from daily temperature measurements and is a crucial concept in energy management, climatology, and [economic forecasting](../e/economic_forecasting.md). HDDs are especially relevant for utilities, energy traders, and weather-dependent businesses. +Heating Degree Days (HDD) are a quantitative [index](../i/index_instrument.md) used to reflect the [demand](../d/demand.md) for energy needed to heat a building. The [index](../i/index_instrument.md) is derived from daily temperature measurements and is a crucial concept in energy management, climatology, and [economic forecasting](../e/economic_forecasting.md). HDDs are especially relevant for utilities, energy traders, and weather-dependent businesses. ## Definition diff --git a/en/pedia/h/heatmap.md b/en/pedia/h/heatmap.md index fbed4fa1..70720c4d 100644 --- a/en/pedia/h/heatmap.md +++ b/en/pedia/h/heatmap.md @@ -67,7 +67,7 @@ data = { 'Stock_B': [0.5, 0.6, 0.7, 0.5, 0.3], 'Stock_C': [0.2, 0.3, 0.4, 0.9, 0.7] } -df = pd.DataFrame(data, [index](../i/index.md)=['Day_1', 'Day_2', 'Day_3', 'Day_4', 'Day_5']) +df = pd.DataFrame(data, [index](../i/index_instrument.md)=['Day_1', 'Day_2', 'Day_3', 'Day_4', 'Day_5']) # Render the heatmap sns.heatmap(df, annot=True, cmap='coolwarm') diff --git a/en/pedia/h/hedge_fund_analytics.md b/en/pedia/h/hedge_fund_analytics.md index 34ffa8c4..9f594fc1 100644 --- a/en/pedia/h/hedge_fund_analytics.md +++ b/en/pedia/h/hedge_fund_analytics.md @@ -10,7 +10,7 @@ - **Net [Asset](../a/asset.md) [Value](../v/value.md) (NAV)**: The total [value](../v/value.md) of the [fund](../f/fund.md)'s assets minus its liabilities. - **Returns**: This measures the performance over a specific period. - **Absolute Returns**: The raw percentage increase or decrease in the [fund](../f/fund.md)'s NAV. - - **Relative Returns**: The performance of the [fund](../f/fund.md) compared to a [benchmark](../b/benchmark.md) [index](../i/index.md). + - **Relative Returns**: The performance of the [fund](../f/fund.md) compared to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). - **[Sharpe Ratio](../s/sharpe_ratio.md)**: A measure of [risk-adjusted return](../r/risk-adjusted_return.md). It is calculated by dividing the [excess return](../e/excess_return.md) of the portfolio over the [risk](../r/risk.md)-free rate by its [standard deviation](../s/standard_deviation.md). - **[Alpha](../a/alpha.md)**: The [excess return](../e/excess_return.md) of the [fund](../f/fund.md) compared to the [benchmark](../b/benchmark.md), adjusting for [market risk](../m/market_risk.md). - **[Beta](../b/beta.md)**: The measure of the [fund](../f/fund.md)'s [volatility](../v/volatility.md) in relation to the [market](../m/market.md). diff --git a/en/pedia/h/hedge_fund_performance.md b/en/pedia/h/hedge_fund_performance.md index 57bbac9c..4577161b 100644 --- a/en/pedia/h/hedge_fund_performance.md +++ b/en/pedia/h/hedge_fund_performance.md @@ -9,7 +9,7 @@ The Net [Asset](../a/asset.md) [Value](../v/value.md) (NAV) represents the total [value](../v/value.md) of a [fund](../f/fund.md)'s assets minus its liabilities. It is often calculated daily and helps investors gauge the [fund](../f/fund.md)’s worth. NAV is essential for understanding the growth or decline in the [fund](../f/fund.md)'s [value](../v/value.md) over time. ### 2. Alpha -[Alpha](../a/alpha.md) measures a [hedge fund](../h/hedge_fund.md)’s performance on a [risk](../r/risk.md)-adjusted [basis](../b/basis.md) compared to a [benchmark](../b/benchmark.md) [index](../i/index.md). A positive [alpha](../a/alpha.md) indicates that the [fund](../f/fund.md) has outperformed the [benchmark](../b/benchmark.md), whereas a negative [alpha](../a/alpha.md) suggests underperformance. It’s an important metric for evaluating the [fund manager](../f/fund_manager.md)’s skill. +[Alpha](../a/alpha.md) measures a [hedge fund](../h/hedge_fund.md)’s performance on a [risk](../r/risk.md)-adjusted [basis](../b/basis.md) compared to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). A positive [alpha](../a/alpha.md) indicates that the [fund](../f/fund.md) has outperformed the [benchmark](../b/benchmark.md), whereas a negative [alpha](../a/alpha.md) suggests underperformance. It’s an important metric for evaluating the [fund manager](../f/fund_manager.md)’s skill. ### 3. Beta [Beta](../b/beta.md) measures a [fund](../f/fund.md)’s [volatility](../v/volatility.md) relative to the overall [market](../m/market.md). A [beta](../b/beta.md) of 1 indicates that the [fund](../f/fund.md)’s price [will](../w/will.md) move with the [market](../m/market.md), a [beta](../b/beta.md) of less than 1 means it is less volatile than the [market](../m/market.md), and a [beta](../b/beta.md) of more than 1 means it is more volatile. [Hedge](../h/hedge.md) funds generally aim for low [beta](../b/beta.md) to ensure stability regardless of [market](../m/market.md) conditions. diff --git a/en/pedia/h/hedge_fund_replication.md b/en/pedia/h/hedge_fund_replication.md index f926a022..e463375d 100644 --- a/en/pedia/h/hedge_fund_replication.md +++ b/en/pedia/h/hedge_fund_replication.md @@ -40,7 +40,7 @@ The bottom-up approach focuses on replicating the actual [trading strategies](.. ### Cost-Effectiveness -Traditional [hedge](../h/hedge.md) funds often charge high management fees (typically 2%) and performance fees (often 20% of profits). [Hedge fund](../h/hedge_fund.md) replication strategies, in contrast, [offer](../o/offer.md) similar returns at a fraction of the cost, with many [index](../i/index.md) funds and ETFs charging much lower fees. +Traditional [hedge](../h/hedge.md) funds often charge high management fees (typically 2%) and performance fees (often 20% of profits). [Hedge fund](../h/hedge_fund.md) replication strategies, in contrast, [offer](../o/offer.md) similar returns at a fraction of the cost, with many [index](../i/index_instrument.md) funds and ETFs charging much lower fees. ### Liquidity diff --git a/en/pedia/h/hedging_portfolio_risk.md b/en/pedia/h/hedging_portfolio_risk.md index e04acd6d..75c55598 100644 --- a/en/pedia/h/hedging_portfolio_risk.md +++ b/en/pedia/h/hedging_portfolio_risk.md @@ -40,7 +40,7 @@ Swaps involve exchanging cash flows or other financial instruments between two p ## Popular Hedging Strategies ### Portfolio Hedging with Index Options -This strategy involves purchasing [index options](../i/index_options.md) to protect against downturns in the [market](../m/market.md). For instance, buying a [put option](../p/put.md) on an [equity](../e/equity.md) [index](../i/index.md) can [offset](../o/offset.md) losses in a stock portfolio. +This strategy involves purchasing [index options](../i/index_options.md) to protect against downturns in the [market](../m/market.md). For instance, buying a [put option](../p/put.md) on an [equity](../e/equity.md) [index](../i/index_instrument.md) can [offset](../o/offset.md) losses in a stock portfolio. ### Fixed-Income Hedging Fixed-[income](../i/income.md) portfolios might use [interest rate futures](../i/interest_rate_futures.md) or swaps to [hedge](../h/hedge.md) against [interest rate risk](../i/interest_rate_risk.md). For example, entering into an [interest rate swap](../i/interest_rate_swap.md) where the portfolio receives a fixed rate and pays a floating rate can protect against rising rates. diff --git a/en/pedia/h/help-wanted_index_(hwi).md b/en/pedia/h/help-wanted_index_(hwi).md index f7d574c2..b5d5c027 100644 --- a/en/pedia/h/help-wanted_index_(hwi).md +++ b/en/pedia/h/help-wanted_index_(hwi).md @@ -1,6 +1,6 @@ # Help-Wanted Index (HWI) -The Help-Wanted [Index](../i/index.md) (HWI) is a measure of the number of job advertisements posted in print and online media. It's a significant [economic indicator](../e/economic_indicator.md) that provides insight into the [labor market](../l/labor_market.md)'s current state and can be used for various purposes, such as informing [monetary policy](../m/monetary_policy.md), guiding [business](../b/business.md) investment strategies, and supporting economic research. This document delves into the HWI's components, calculation, significance, history, and uses in algotrading. +The Help-Wanted [Index](../i/index_instrument.md) (HWI) is a measure of the number of job advertisements posted in print and online media. It's a significant [economic indicator](../e/economic_indicator.md) that provides insight into the [labor market](../l/labor_market.md)'s current state and can be used for various purposes, such as informing [monetary policy](../m/monetary_policy.md), guiding [business](../b/business.md) investment strategies, and supporting economic research. This document delves into the HWI's components, calculation, significance, history, and uses in algotrading. ## Components of HWI @@ -18,7 +18,7 @@ The HWI typically comprises the following components: - Adjustments for seasonal effects to account for changes in hiring patterns during different times of the year. - Adjustments for changes in the popularity of different advertising media over time. -4. **[Index](../i/index.md) Calculation**: +4. **[Index](../i/index_instrument.md) Calculation**: - [Weighted averages](../w/weighted_averages_in_trading.md) to balance the influence of different sources. - Historical baselines for comparison. @@ -37,9 +37,9 @@ The HWI is calculated by aggregating the total number of job advertisements acro 3. **Weight [Assignment](../a/assignment.md)**: - Assign weights to data from different sources based on their representativeness and reliability. -4. **[Index](../i/index.md) Computation**: +4. **[Index](../i/index_instrument.md) Computation**: - Sum the [weighted](../w/weighted.md), normalized counts. - - Compare to a historical [baseline](../b/baseline.md) to create a standardized [index](../i/index.md) [value](../v/value.md). + - Compare to a historical [baseline](../b/baseline.md) to create a standardized [index](../i/index_instrument.md) [value](../v/value.md). ## Significance of HWI @@ -92,7 +92,7 @@ The HWI has evolved significantly since its inception: 4. **Automated News Interpretation**: - Integrate HWI data feeds with [natural language processing](../n/natural_language_processing_(nlp)_in_trading.md) (NLP) tools to parse and react to economic news in real-time. - - Automate responses to significant changes in the [index](../i/index.md). + - Automate responses to significant changes in the [index](../i/index_instrument.md). 5. **[Backtesting](../b/backtesting.md) and [Simulation](../s/simulation_in_trading.md)**: - Use historical HWI data to backtest [trading algorithms](../t/trading_algorithms.md). diff --git a/en/pedia/h/herfindahl-hirschman_index_(hhi).md b/en/pedia/h/herfindahl-hirschman_index_(hhi).md index 4f016a50..12bd18bd 100644 --- a/en/pedia/h/herfindahl-hirschman_index_(hhi).md +++ b/en/pedia/h/herfindahl-hirschman_index_(hhi).md @@ -1,6 +1,6 @@ # Herfindahl-Hirschman Index (HHI) -The Herfindahl-Hirschman [Index](../i/index.md) (HHI) is a statistical measure used to evaluate the concentration and competitiveness of markets, primarily utilized in the fields of [antitrust](../a/antitrust.md) law and economic studies. It was jointly developed by economists Orris C. Herfindahl and Albert O. Hirschman. The HHI is a valuable tool for policymakers, regulators, and [market](../m/market.md) analysts to assess [market](../m/market.md) structures and the potential implications of mergers and acquisitions. +The Herfindahl-Hirschman [Index](../i/index_instrument.md) (HHI) is a statistical measure used to evaluate the concentration and competitiveness of markets, primarily utilized in the fields of [antitrust](../a/antitrust.md) law and economic studies. It was jointly developed by economists Orris C. Herfindahl and Albert O. Hirschman. The HHI is a valuable tool for policymakers, regulators, and [market](../m/market.md) analysts to assess [market](../m/market.md) structures and the potential implications of mergers and acquisitions. ## Calculation of HHI @@ -77,4 +77,4 @@ The [merger](../m/merger.md) between T-Mobile and Sprint, valued at $26 billion, ## Conclusion -The Herfindahl-Hirschman [Index](../i/index.md) remains an essential metric in understanding and regulating [market](../m/market.md) concentration. While it has its limitations, the HHI’s role in identifying monopolistic tendencies and guiding [antitrust](../a/antitrust.md) interventions is invaluable. By providing a standardized approach, it aids policymakers, economists, and [business](../b/business.md) leaders in fostering competitive and fair markets globally. \ No newline at end of file +The Herfindahl-Hirschman [Index](../i/index_instrument.md) remains an essential metric in understanding and regulating [market](../m/market.md) concentration. While it has its limitations, the HHI’s role in identifying monopolistic tendencies and guiding [antitrust](../a/antitrust.md) interventions is invaluable. By providing a standardized approach, it aids policymakers, economists, and [business](../b/business.md) leaders in fostering competitive and fair markets globally. \ No newline at end of file diff --git a/en/pedia/h/herrick_payoff_index.md b/en/pedia/h/herrick_payoff_index.md index 8d0708bd..f4739f4b 100644 --- a/en/pedia/h/herrick_payoff_index.md +++ b/en/pedia/h/herrick_payoff_index.md @@ -1,16 +1,16 @@ # Herrick Payoff Index -The Herrick Payoff [Index](../i/index.md) (HPI) is a [technical analysis](../t/technical_analysis.md) tool used primarily in the commodities and [futures](../f/futures.md) markets to measure the flow of [money](../m/money.md) into or out of a given [commodity](../c/commodity.md). Developed by John Herrick, this [index](../i/index.md) helps traders identify significant trends, potential buying and selling opportunities, and the overall strength or weakness of a [commodity](../c/commodity.md) [market](../m/market.md). The Herrick Payoff [Index](../i/index.md) is particularly popular among experienced traders due to its ability to provide deeper insights into [market](../m/market.md) movements and [trader](../t/trader.md) behavior. +The Herrick Payoff [Index](../i/index_instrument.md) (HPI) is a [technical analysis](../t/technical_analysis.md) tool used primarily in the commodities and [futures](../f/futures.md) markets to measure the flow of [money](../m/money.md) into or out of a given [commodity](../c/commodity.md). Developed by John Herrick, this [index](../i/index_instrument.md) helps traders identify significant trends, potential buying and selling opportunities, and the overall strength or weakness of a [commodity](../c/commodity.md) [market](../m/market.md). The Herrick Payoff [Index](../i/index_instrument.md) is particularly popular among experienced traders due to its ability to provide deeper insights into [market](../m/market.md) movements and [trader](../t/trader.md) behavior. ## Concept and Calculation ### Understanding the Core Principle -The Herrick Payoff [Index](../i/index.md) is designed to assess the relationship between three key components: price, [volume](../v/volume.md), and [open interest](../o/open_interest.md). Each of these components individually provides traders with critical information about [market](../m/market.md) conditions, but when combined, they can [offer](../o/offer.md) a more comprehensive view of [market dynamics](../m/market_dynamics.md). The main premise of the HPI is to evaluate the [money flow](../m/money_flow.md) and detect accumulation or [distribution](../d/distribution.md) phases in the [market](../m/market.md) by analyzing these combined factors. +The Herrick Payoff [Index](../i/index_instrument.md) is designed to assess the relationship between three key components: price, [volume](../v/volume.md), and [open interest](../o/open_interest.md). Each of these components individually provides traders with critical information about [market](../m/market.md) conditions, but when combined, they can [offer](../o/offer.md) a more comprehensive view of [market dynamics](../m/market_dynamics.md). The main premise of the HPI is to evaluate the [money flow](../m/money_flow.md) and detect accumulation or [distribution](../d/distribution.md) phases in the [market](../m/market.md) by analyzing these combined factors. ### Calculation Method -The formula to calculate the Herrick Payoff [Index](../i/index.md) is quite intricate and involves several steps. The basic outline of the HPI calculation is as follows: +The formula to calculate the Herrick Payoff [Index](../i/index_instrument.md) is quite intricate and involves several steps. The basic outline of the HPI calculation is as follows: 1. **Determine the [Commodity](../c/commodity.md)'s Price Move:** - Calculate the price move as the difference between the current closing price and the previous closing price. @@ -27,40 +27,40 @@ The formula to calculate the Herrick Payoff [Index](../i/index.md) is quite intr 5. **Smooth the Net [Money Flow](../m/money_flow.md):** - Apply a moving average to the net [money flow](../m/money_flow.md) to smooth out short-term fluctuations and highlight the [underlying](../u/underlying.md) [trend](../t/trend.md). Herrick often recommended using an exponential moving average (EMA) for this purpose. -6. **Normalize the [Index](../i/index.md):** - - Normalize the smoothed net [money flow](../m/money_flow.md) by dividing it by the [average true range](../a/average_true_range_(atr).md) (ATR) of the [commodity](../c/commodity.md). This step ensures that the [index](../i/index.md) values are scaled appropriately and consistent across different commodities. +6. **Normalize the [Index](../i/index_instrument.md):** + - Normalize the smoothed net [money flow](../m/money_flow.md) by dividing it by the [average true range](../a/average_true_range_(atr).md) (ATR) of the [commodity](../c/commodity.md). This step ensures that the [index](../i/index_instrument.md) values are scaled appropriately and consistent across different commodities. -The resulting [value](../v/value.md) is the Herrick Payoff [Index](../i/index.md). A positive HPI suggests an inflow of [money](../m/money.md) into the [commodity](../c/commodity.md), indicating potential buying [interest](../i/interest.md) and accumulation. Conversely, a negative HPI indicates an outflow of [money](../m/money.md), signifying potential selling pressure and [distribution](../d/distribution.md). +The resulting [value](../v/value.md) is the Herrick Payoff [Index](../i/index_instrument.md). A positive HPI suggests an inflow of [money](../m/money.md) into the [commodity](../c/commodity.md), indicating potential buying [interest](../i/interest.md) and accumulation. Conversely, a negative HPI indicates an outflow of [money](../m/money.md), signifying potential selling pressure and [distribution](../d/distribution.md). ## Applications in Trading ### Identifying Trends and Reversals -The Herrick Payoff [Index](../i/index.md) can be a valuable tool in identifying trends and potential [trend](../t/trend.md) reversals. When the HPI consistently stays above zero, it signals an [accumulation phase](../a/accumulation_phase.md) in the [market](../m/market.md), suggesting that the [commodity](../c/commodity.md)'s price is likely to continue rising. On the other hand, when the HPI remains below zero, it indicates a [distribution](../d/distribution.md) phase, suggesting that the [commodity](../c/commodity.md)'s price may continue to decline. +The Herrick Payoff [Index](../i/index_instrument.md) can be a valuable tool in identifying trends and potential [trend](../t/trend.md) reversals. When the HPI consistently stays above zero, it signals an [accumulation phase](../a/accumulation_phase.md) in the [market](../m/market.md), suggesting that the [commodity](../c/commodity.md)'s price is likely to continue rising. On the other hand, when the HPI remains below zero, it indicates a [distribution](../d/distribution.md) phase, suggesting that the [commodity](../c/commodity.md)'s price may continue to decline. Traders often look for [divergence](../d/divergence.md) patterns between the HPI and the [commodity](../c/commodity.md)'s price. A [bullish divergence](../b/bullish_divergence.md) occurs when the [commodity](../c/commodity.md)'s price makes lower lows, but the HPI makes higher lows, indicating an [accumulation phase](../a/accumulation_phase.md) despite the falling price. Conversely, a [bearish divergence](../b/bearish_divergence.md) occurs when the [commodity](../c/commodity.md)'s price makes higher highs, but the HPI makes lower highs, suggesting [distribution](../d/distribution.md) despite the rising price. ### Spotting Buying and Selling Opportunities -The Herrick Payoff [Index](../i/index.md) can help traders pinpoint potential buying and selling opportunities by highlighting significant shifts in [money flow](../m/money_flow.md). For instance: +The Herrick Payoff [Index](../i/index_instrument.md) can help traders pinpoint potential buying and selling opportunities by highlighting significant shifts in [money flow](../m/money_flow.md). For instance: -- **Buying Opportunity:** A [trader](../t/trader.md) might consider entering a long position when the HPI crosses above zero, especially if the [index](../i/index.md) shows a [bullish divergence](../b/bullish_divergence.md) or a sudden increase in [money flow](../m/money_flow.md). This move indicates that [money](../m/money.md) is flowing into the [commodity](../c/commodity.md), potentially driving the price higher. +- **Buying Opportunity:** A [trader](../t/trader.md) might consider entering a long position when the HPI crosses above zero, especially if the [index](../i/index_instrument.md) shows a [bullish divergence](../b/bullish_divergence.md) or a sudden increase in [money flow](../m/money_flow.md). This move indicates that [money](../m/money.md) is flowing into the [commodity](../c/commodity.md), potentially driving the price higher. -- **Selling Opportunity:** Conversely, a [trader](../t/trader.md) might consider entering a short position when the HPI crosses below zero, particularly if the [index](../i/index.md) shows a [bearish divergence](../b/bearish_divergence.md) or a sharp decline in [money flow](../m/money_flow.md). This scenario suggests that [money](../m/money.md) is flowing out of the [commodity](../c/commodity.md), potentially leading to a price drop. +- **Selling Opportunity:** Conversely, a [trader](../t/trader.md) might consider entering a short position when the HPI crosses below zero, particularly if the [index](../i/index_instrument.md) shows a [bearish divergence](../b/bearish_divergence.md) or a sharp decline in [money flow](../m/money_flow.md). This scenario suggests that [money](../m/money.md) is flowing out of the [commodity](../c/commodity.md), potentially leading to a price drop. ### Supporting Risk Management -The HPI can also serve as a supplementary tool for managing trading [risk](../r/risk.md). By monitoring the [index](../i/index.md), traders can [gain](../g/gain.md) insights into the strength and potential sustainability of a [trend](../t/trend.md). For instance, if the HPI begins to decline while the [commodity](../c/commodity.md)'s price is rising, it may be a signal to tighten [stop-loss orders](../s/stop-loss_orders.md) or take partial profits, as the weakening [money flow](../m/money_flow.md) indicates potential [risk](../r/risk.md) of a [trend reversal](../t/trend_reversal.md). +The HPI can also serve as a supplementary tool for managing trading [risk](../r/risk.md). By monitoring the [index](../i/index_instrument.md), traders can [gain](../g/gain.md) insights into the strength and potential sustainability of a [trend](../t/trend.md). For instance, if the HPI begins to decline while the [commodity](../c/commodity.md)'s price is rising, it may be a signal to tighten [stop-loss orders](../s/stop-loss_orders.md) or take partial profits, as the weakening [money flow](../m/money_flow.md) indicates potential [risk](../r/risk.md) of a [trend reversal](../t/trend_reversal.md). ### Enhancing Other Technical Indicators -Traders often use the Herrick Payoff [Index](../i/index.md) in conjunction with other [technical indicators](../t/technical_indicator.md) to enhance their analysis and decision-making. For example, combining the HPI with moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), or MACD (Moving Average Convergence [Divergence](../d/divergence.md)) can provide a more comprehensive view of [market](../m/market.md) conditions and help validate signals generated by the [index](../i/index.md). +Traders often use the Herrick Payoff [Index](../i/index_instrument.md) in conjunction with other [technical indicators](../t/technical_indicator.md) to enhance their analysis and decision-making. For example, combining the HPI with moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), or MACD (Moving Average Convergence [Divergence](../d/divergence.md)) can provide a more comprehensive view of [market](../m/market.md) conditions and help validate signals generated by the [index](../i/index_instrument.md). ## Advantages and Limitations ### Advantages -1. **Multi-Dimensional Analysis:** The Herrick Payoff [Index](../i/index.md) incorporates price, [volume](../v/volume.md), and [open interest](../o/open_interest.md), [offering](../o/offering.md) a multi-dimensional view of the [market](../m/market.md) and providing deeper insights than indicators that rely on price alone. +1. **Multi-Dimensional Analysis:** The Herrick Payoff [Index](../i/index_instrument.md) incorporates price, [volume](../v/volume.md), and [open interest](../o/open_interest.md), [offering](../o/offering.md) a multi-dimensional view of the [market](../m/market.md) and providing deeper insights than indicators that rely on price alone. 2. **Identifying [Money Flow](../m/money_flow.md):** The HPI explicitly focuses on [money flow](../m/money_flow.md), helping traders understand the [underlying](../u/underlying.md) forces driving price movements and enhancing their ability to spot accumulation and [distribution](../d/distribution.md) phases. @@ -68,7 +68,7 @@ Traders often use the Herrick Payoff [Index](../i/index.md) in conjunction with ### Limitations -1. **Complexity in Calculation:** The formula for calculating the Herrick Payoff [Index](../i/index.md) is relatively complex, requiring a detailed understanding of the components and steps involved. This complexity may deter some traders from using the [indicator](../i/indicator.md). +1. **Complexity in Calculation:** The formula for calculating the Herrick Payoff [Index](../i/index_instrument.md) is relatively complex, requiring a detailed understanding of the components and steps involved. This complexity may deter some traders from using the [indicator](../i/indicator.md). 2. **Requires Accurate Data:** The accuracy of the HPI depends heavily on the precision and reliability of the input data, including price, [volume](../v/volume.md), and [open interest](../o/open_interest.md). Inaccurate or delayed data can lead to misleading signals. @@ -76,11 +76,11 @@ Traders often use the Herrick Payoff [Index](../i/index.md) in conjunction with ## Practical Examples -To illustrate the practical application of the Herrick Payoff [Index](../i/index.md), consider a hypothetical example involving a [futures contract](../f/futures_contract.md) for [crude oil](../c/crude_oil.md). +To illustrate the practical application of the Herrick Payoff [Index](../i/index_instrument.md), consider a hypothetical example involving a [futures contract](../f/futures_contract.md) for [crude oil](../c/crude_oil.md). ### Example Scenario: Crude Oil Futures -Suppose a [trader](../t/trader.md) is analyzing the [crude oil](../c/crude_oil.md) [futures market](../f/futures_market.md) and wants to determine the [underlying](../u/underlying.md) [money flow](../m/money_flow.md) trends using the Herrick Payoff [Index](../i/index.md). The [trader](../t/trader.md) follows these steps: +Suppose a [trader](../t/trader.md) is analyzing the [crude oil](../c/crude_oil.md) [futures market](../f/futures_market.md) and wants to determine the [underlying](../u/underlying.md) [money flow](../m/money_flow.md) trends using the Herrick Payoff [Index](../i/index_instrument.md). The [trader](../t/trader.md) follows these steps: 1. **Gather Data:** The [trader](../t/trader.md) collects daily closing prices, trading volumes, and [open interest](../o/open_interest.md) for the [crude oil](../c/crude_oil.md) [futures contract](../f/futures_contract.md) over a specified period. @@ -99,11 +99,11 @@ Suppose a [trader](../t/trader.md) is analyzing the [crude oil](../c/crude_oil.m - Based on the HPI analysis, the [trader](../t/trader.md) decides to enter a long position in the [crude oil](../c/crude_oil.md) [futures contract](../f/futures_contract.md), anticipating that the influx of [money](../m/money.md) [will](../w/will.md) drive the price higher. 5. **Manage [Risk](../r/risk.md):** - - The [trader](../t/trader.md) monitors the HPI for any signs of weakening [money flow](../m/money_flow.md) or a potential decrease in the [index](../i/index.md) [value](../v/value.md). + - The [trader](../t/trader.md) monitors the HPI for any signs of weakening [money flow](../m/money_flow.md) or a potential decrease in the [index](../i/index_instrument.md) [value](../v/value.md). - If the HPI starts to decline while the price is rising, the [trader](../t/trader.md) may tighten [stop-loss orders](../s/stop-loss_orders.md) to manage [risk](../r/risk.md) and protect profits. -By following this structured approach, the [trader](../t/trader.md) leverages the insights provided by the Herrick Payoff [Index](../i/index.md) to make informed trading decisions and potentially enhance overall [trading performance](../t/trading_performance.md). +By following this structured approach, the [trader](../t/trader.md) leverages the insights provided by the Herrick Payoff [Index](../i/index_instrument.md) to make informed trading decisions and potentially enhance overall [trading performance](../t/trading_performance.md). ## Conclusion -The Herrick Payoff [Index](../i/index.md) is a powerful [technical analysis](../t/technical_analysis.md) tool for commodities and [futures](../f/futures.md) traders, [offering](../o/offering.md) a unique perspective on [market](../m/market.md) [money flow](../m/money_flow.md) by combining price, [volume](../v/volume.md), and [open interest](../o/open_interest.md). While the complexity of its calculation may pose a challenge, the valuable insights it provides can significantly aid traders in identifying trends, spotting buying and selling opportunities, and managing [risk](../r/risk.md). When used in conjunction with other [technical indicators](../t/technical_indicator.md), the HPI can be an invaluable addition to a [trader](../t/trader.md)'s toolbox, helping to navigate the complexities of the commodities and [futures](../f/futures.md) markets with greater confidence and precision. \ No newline at end of file +The Herrick Payoff [Index](../i/index_instrument.md) is a powerful [technical analysis](../t/technical_analysis.md) tool for commodities and [futures](../f/futures.md) traders, [offering](../o/offering.md) a unique perspective on [market](../m/market.md) [money flow](../m/money_flow.md) by combining price, [volume](../v/volume.md), and [open interest](../o/open_interest.md). While the complexity of its calculation may pose a challenge, the valuable insights it provides can significantly aid traders in identifying trends, spotting buying and selling opportunities, and managing [risk](../r/risk.md). When used in conjunction with other [technical indicators](../t/technical_indicator.md), the HPI can be an invaluable addition to a [trader](../t/trader.md)'s toolbox, helping to navigate the complexities of the commodities and [futures](../f/futures.md) markets with greater confidence and precision. \ No newline at end of file diff --git a/en/pedia/h/high-frequency_trading_(hft).md b/en/pedia/h/high-frequency_trading_(hft).md index ca275d89..f71e8c85 100644 --- a/en/pedia/h/high-frequency_trading_(hft).md +++ b/en/pedia/h/high-frequency_trading_(hft).md @@ -42,7 +42,7 @@ HFT algorithms act as [market](../m/market.md) makers by providing [liquidity](. ### 3.2 Arbitrage - **Statistical [Arbitrage](../a/arbitrage.md)**: Exploiting price differentials between correlated instruments using statistical models. -- **[Index](../i/index.md) [Arbitrage](../a/arbitrage.md)**: Trading [index futures](../i/index_futures.md) and the [underlying](../u/underlying.md) stock components to [profit](../p/profit.md) from small pricing discrepancies. +- **[Index](../i/index_instrument.md) [Arbitrage](../a/arbitrage.md)**: Trading [index futures](../i/index_futures.md) and the [underlying](../u/underlying.md) stock components to [profit](../p/profit.md) from small pricing discrepancies. - **Cross-[Asset](../a/asset.md) [Arbitrage](../a/arbitrage.md)**: Taking advantage of price differences between various [asset](../a/asset.md) classes (e.g., [equity](../e/equity.md) and [debt](../d/debt.md)). ### 3.3 Momentum Ignition diff --git a/en/pedia/h/high-frequency_trading_algorithms.md b/en/pedia/h/high-frequency_trading_algorithms.md index 599f2d90..c97e9a3a 100644 --- a/en/pedia/h/high-frequency_trading_algorithms.md +++ b/en/pedia/h/high-frequency_trading_algorithms.md @@ -19,7 +19,7 @@ Understanding [market microstructure](../m/market_microstructure.md)—how order **[Arbitrage](../a/arbitrage.md)** involves buying and selling the same [asset](../a/asset.md) on different platforms to [profit](../p/profit.md) from price discrepancies. 1. **Statistical [Arbitrage](../a/arbitrage.md)**: Uses statistical methods and machine learning to predict price movements and identify [arbitrage](../a/arbitrage.md) opportunities. -2. **[Index](../i/index.md) [Arbitrage](../a/arbitrage.md)**: Involves trading between an [index](../i/index.md) future and the [underlying](../u/underlying.md) securities. +2. **[Index](../i/index_instrument.md) [Arbitrage](../a/arbitrage.md)**: Involves trading between an [index](../i/index_instrument.md) future and the [underlying](../u/underlying.md) securities. ### Market Making [Market](../m/market.md) makers provide [liquidity](../l/liquidity.md) by continuously quoting buy and sell prices. They [profit](../p/profit.md) from the [bid-ask spread](../b/bid-ask_spread.md). diff --git a/en/pedia/h/high-low_index.md b/en/pedia/h/high-low_index.md index 4a0b031e..16a8920e 100644 --- a/en/pedia/h/high-low_index.md +++ b/en/pedia/h/high-low_index.md @@ -1,56 +1,56 @@ # High-Low Index -The High-Low [Index](../i/index.md) is a technical [indicator](../i/indicator.md) used in the [finance](../f/finance.md) and trading industries, particularly in [algorithmic trading](../a/algorithmic_trading.md). This [index](../i/index.md) provides traders with crucial insights into the [momentum](../m/momentum.md) trends of a [market](../m/market.md) by comparing the number of [stocks](../s/stock.md) reaching new 52-week highs to those reaching new 52-week lows. Understanding the dynamics of the High-Low [Index](../i/index.md) can be especially beneficial for [algorithmic trading](../a/algorithmic_trading.md) systems, as it offers a quantitative approach to gauging the overall health of the [market](../m/market.md). +The High-Low [Index](../i/index_instrument.md) is a technical [indicator](../i/indicator.md) used in the [finance](../f/finance.md) and trading industries, particularly in [algorithmic trading](../a/algorithmic_trading.md). This [index](../i/index_instrument.md) provides traders with crucial insights into the [momentum](../m/momentum.md) trends of a [market](../m/market.md) by comparing the number of [stocks](../s/stock.md) reaching new 52-week highs to those reaching new 52-week lows. Understanding the dynamics of the High-Low [Index](../i/index_instrument.md) can be especially beneficial for [algorithmic trading](../a/algorithmic_trading.md) systems, as it offers a quantitative approach to gauging the overall health of the [market](../m/market.md). ### Concept Overview -The High-Low [Index](../i/index.md) is typically calculated over a fixed period, commonly 10 days. The formula involves creating a ratio of the number of new highs to the number of new lows, and then smoothing this ratio using a simple moving average (SMA). The interpretation of the [index](../i/index.md) is straightforward: -- When the [index](../i/index.md) is above 50, it suggests that more [stocks](../s/stock.md) are reaching new highs compared to new lows, indicating a potential bullish [trend](../t/trend.md). -- Conversely, an [index](../i/index.md) below 50 suggests a greater number of new lows, indicating a potential bearish [trend](../t/trend.md). +The High-Low [Index](../i/index_instrument.md) is typically calculated over a fixed period, commonly 10 days. The formula involves creating a ratio of the number of new highs to the number of new lows, and then smoothing this ratio using a simple moving average (SMA). The interpretation of the [index](../i/index_instrument.md) is straightforward: +- When the [index](../i/index_instrument.md) is above 50, it suggests that more [stocks](../s/stock.md) are reaching new highs compared to new lows, indicating a potential bullish [trend](../t/trend.md). +- Conversely, an [index](../i/index_instrument.md) below 50 suggests a greater number of new lows, indicating a potential bearish [trend](../t/trend.md). ### Calculation -To compute the High-Low [Index](../i/index.md), traders follow these steps: +To compute the High-Low [Index](../i/index_instrument.md), traders follow these steps: 1. **Count the Number of New Highs and Lows:** Identify the number of [stocks](../s/stock.md) that form new 52-week highs and lows. 2. **Calculate the Ratio:** Divide the number of new highs by the total number of new highs and lows. 3. **Smooth the Ratio:** Apply a simple moving average (SMA) to the ratio, typically over a period of 10 days. -Mathematically, the High-Low [Index](../i/index.md) \( HLI \) for a period \( n \) can be expressed as: +Mathematically, the High-Low [Index](../i/index_instrument.md) \( HLI \) for a period \( n \) can be expressed as: \[ HLI_n = SMA_{10} \left( \frac{\text{New Highs}}{\text{New Highs} + \text{New Lows}} \times 100 \right) \] ### Application in Algorithmic Trading -[Algorithmic trading](../a/algorithmic_trading.md) systems make extensive use of [technical indicators](../t/technical_indicators.md) like the High-Low [Index](../i/index.md) to automate decision-making processes. Integrating the High-Low [Index](../i/index.md) into an algorithm involves several steps: +[Algorithmic trading](../a/algorithmic_trading.md) systems make extensive use of [technical indicators](../t/technical_indicators.md) like the High-Low [Index](../i/index_instrument.md) to automate decision-making processes. Integrating the High-Low [Index](../i/index_instrument.md) into an algorithm involves several steps: 1. **Data Collection:** Algorithms must collect real-time data on stock highs and lows. -2. **Real-Time Calculation:** The algorithm calculates the High-Low [Index](../i/index.md) in real-time, continuously updating as new data comes in. -3. **Decision Rules:** The algorithm implements [trading rules](../t/trading_rules.md) based on the High-Low [Index](../i/index.md) [value](../v/value.md). For example: +2. **Real-Time Calculation:** The algorithm calculates the High-Low [Index](../i/index_instrument.md) in real-time, continuously updating as new data comes in. +3. **Decision Rules:** The algorithm implements [trading rules](../t/trading_rules.md) based on the High-Low [Index](../i/index_instrument.md) [value](../v/value.md). For example: - If the HLI is above a certain threshold, the algorithm might initiate or increase long positions. - If the HLI is below a certain threshold, the algorithm might initiate or increase short positions or decrease long positions. ### Practical Examples -Several trading platforms and fintech companies incorporate the High-Low [Index](../i/index.md) within their [trading strategies](../t/trading_strategies.md). Here are a few notable examples: +Several trading platforms and fintech companies incorporate the High-Low [Index](../i/index_instrument.md) within their [trading strategies](../t/trading_strategies.md). Here are a few notable examples: -- **[QuantConnect](../q/quantconnect.md):** An [algorithmic trading](../a/algorithmic_trading.md) platform that allows users to build and backtest [trading strategies](../t/trading_strategies.md) using a wide [range](../r/range.md) of [technical indicators](../t/technical_indicators.md), including the High-Low [Index](../i/index.md). [Visit QuantConnect](https://www.quantconnect.com) -- **Algoriz:** A platform that offers a user-friendly interface for creating [algorithmic trading](../a/algorithmic_trading.md) strategies. The High-Low [Index](../i/index.md) can be integrated into strategies using Algoriz’s tools. [Visit Algoriz](https://www.algoriz.com) -- **Kavout:** Known for its AI-driven [trading strategies](../t/trading_strategies.md), Kavout leverages a variety of [technical indicators](../t/technical_indicators.md), including the High-Low [Index](../i/index.md), to inform its trading decisions. [Visit Kavout](https://www.kavout.com) +- **[QuantConnect](../q/quantconnect.md):** An [algorithmic trading](../a/algorithmic_trading.md) platform that allows users to build and backtest [trading strategies](../t/trading_strategies.md) using a wide [range](../r/range.md) of [technical indicators](../t/technical_indicators.md), including the High-Low [Index](../i/index_instrument.md). [Visit QuantConnect](https://www.quantconnect.com) +- **Algoriz:** A platform that offers a user-friendly interface for creating [algorithmic trading](../a/algorithmic_trading.md) strategies. The High-Low [Index](../i/index_instrument.md) can be integrated into strategies using Algoriz’s tools. [Visit Algoriz](https://www.algoriz.com) +- **Kavout:** Known for its AI-driven [trading strategies](../t/trading_strategies.md), Kavout leverages a variety of [technical indicators](../t/technical_indicators.md), including the High-Low [Index](../i/index_instrument.md), to inform its trading decisions. [Visit Kavout](https://www.kavout.com) ### Advantages of Using High-Low Index in Algorithmic Trading -- **[Market Sentiment Analysis](../m/market_sentiment_analysis.md):** The High-Low [Index](../i/index.md) provides a quick snapshot of [market sentiment](../m/market_sentiment.md), helping algorithms to adjust their positions according to bullish or bearish trends. -- **Objective Decision-Making:** By relying on quantifiable data, the High-Low [Index](../i/index.md) removes emotional bias from trading decisions. -- **Improved Timing:** Using the High-Low [Index](../i/index.md) can enhance the timing of entry and exit points in trades, potentially increasing profitability. -- **[Diversification](../d/diversification.md):** This [index](../i/index.md) can be used across [multiple](../m/multiple.md) [asset](../a/asset.md) classes and markets, providing versatility in [algorithmic trading](../a/algorithmic_trading.md) strategies. +- **[Market Sentiment Analysis](../m/market_sentiment_analysis.md):** The High-Low [Index](../i/index_instrument.md) provides a quick snapshot of [market sentiment](../m/market_sentiment.md), helping algorithms to adjust their positions according to bullish or bearish trends. +- **Objective Decision-Making:** By relying on quantifiable data, the High-Low [Index](../i/index_instrument.md) removes emotional bias from trading decisions. +- **Improved Timing:** Using the High-Low [Index](../i/index_instrument.md) can enhance the timing of entry and exit points in trades, potentially increasing profitability. +- **[Diversification](../d/diversification.md):** This [index](../i/index_instrument.md) can be used across [multiple](../m/multiple.md) [asset](../a/asset.md) classes and markets, providing versatility in [algorithmic trading](../a/algorithmic_trading.md) strategies. ### Limitations and Considerations -Despite its advantages, the High-Low [Index](../i/index.md) has certain limitations: -- **[Market](../m/market.md) Conditions:** The effectiveness of the High-Low [Index](../i/index.md) may vary across different [market](../m/market.md) conditions. For instance, in a volatile or consolidated [market](../m/market.md), the [index](../i/index.md) might give misleading signals. -- **[Lagging Indicator](../l/lagging_indicator.md):** As it uses moving averages, the High-Low [Index](../i/index.md) may lag behind actual [market](../m/market.md) movements and [fail](../f/fail.md) to capture rapid changes. -- **Historical Data Dependency:** The reliability of the High-Low [Index](../i/index.md) largely depends on the accuracy and completeness of historical high and low data. +Despite its advantages, the High-Low [Index](../i/index_instrument.md) has certain limitations: +- **[Market](../m/market.md) Conditions:** The effectiveness of the High-Low [Index](../i/index_instrument.md) may vary across different [market](../m/market.md) conditions. For instance, in a volatile or consolidated [market](../m/market.md), the [index](../i/index_instrument.md) might give misleading signals. +- **[Lagging Indicator](../l/lagging_indicator.md):** As it uses moving averages, the High-Low [Index](../i/index_instrument.md) may lag behind actual [market](../m/market.md) movements and [fail](../f/fail.md) to capture rapid changes. +- **Historical Data Dependency:** The reliability of the High-Low [Index](../i/index_instrument.md) largely depends on the accuracy and completeness of historical high and low data. ### Conclusion -The High-Low [Index](../i/index.md) is a valuable tool in the arsenal of algorithmic traders, [offering](../o/offering.md) a systematic way to gauge [market sentiment](../m/market_sentiment.md) and [trend](../t/trend.md) strength. By integrating this [index](../i/index.md) into their algorithms, traders can enhance decision-making processes and potentially improve trading outcomes. However, like all [technical indicators](../t/technical_indicators.md), it should be used in conjunction with other tools and strategies to mitigate its limitations and ensure [robust](../r/robust.md) [trading performance](../t/trading_performance.md). +The High-Low [Index](../i/index_instrument.md) is a valuable tool in the arsenal of algorithmic traders, [offering](../o/offering.md) a systematic way to gauge [market sentiment](../m/market_sentiment.md) and [trend](../t/trend.md) strength. By integrating this [index](../i/index_instrument.md) into their algorithms, traders can enhance decision-making processes and potentially improve trading outcomes. However, like all [technical indicators](../t/technical_indicators.md), it should be used in conjunction with other tools and strategies to mitigate its limitations and ensure [robust](../r/robust.md) [trading performance](../t/trading_performance.md). diff --git a/en/pedia/h/high-volume_trading_strategies.md b/en/pedia/h/high-volume_trading_strategies.md index 7f7c9c0d..54e610c2 100644 --- a/en/pedia/h/high-volume_trading_strategies.md +++ b/en/pedia/h/high-volume_trading_strategies.md @@ -28,7 +28,7 @@ Statistical [Arbitrage](../a/arbitrage.md) takes advantage of statistical mispri - **[Order Book Analysis](../o/order_book_analysis.md)** - **[Volume Analysis](../v/volume_analysis.md)** -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)** +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)** ### Order Book Analysis @@ -40,7 +40,7 @@ Statistical [Arbitrage](../a/arbitrage.md) takes advantage of statistical mispri ### Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. Scalpers use RSI to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, aiding in making quick buy or sell decisions. +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. Scalpers use RSI to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, aiding in making quick buy or sell decisions. ## Momentum Trading @@ -48,7 +48,7 @@ The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) - **Moving Averages**: Calculating the average price over a given period to identify trends. - **[Volume](../v/volume.md) [Weighted Average](../w/weighted_average.md) Price (VWAP)**: A trading [benchmark](../b/benchmark.md) that gives the average price a [security](../s/security.md) has traded at throughout the day, based on both [volume](../v/volume.md) and price. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Used to identify the strength of a [security](../s/security.md)'s [momentum](../m/momentum.md). +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Used to identify the strength of a [security](../s/security.md)'s [momentum](../m/momentum.md). ### Moving Averages diff --git a/en/pedia/h/high-water_mark_in_trading.md b/en/pedia/h/high-water_mark_in_trading.md index 02040790..3892a1f6 100644 --- a/en/pedia/h/high-water_mark_in_trading.md +++ b/en/pedia/h/high-water_mark_in_trading.md @@ -8,7 +8,7 @@ The concept of a High-Water Mark (HWM) is pivotal in the realm of trading, parti 2. **[Investor](../i/investor.md) Protection**: By implementing a HWM, investors are protected from paying performance fees during periods of poor performance or recovery from losses. It aligns the interests of the [fund](../f/fund.md) managers with those of the investors, encouraging long-term performance over short-term gains. -3. **Comparison with Other Benchmarks**: Unlike relative benchmarks that compare a [fund](../f/fund.md)'s performance against an external [index](../i/index.md), the HWM is an absolute [benchmark](../b/benchmark.md). It is solely concerned with the [fund](../f/fund.md)'s historical performance. +3. **Comparison with Other Benchmarks**: Unlike relative benchmarks that compare a [fund](../f/fund.md)'s performance against an external [index](../i/index_instrument.md), the HWM is an absolute [benchmark](../b/benchmark.md). It is solely concerned with the [fund](../f/fund.md)'s historical performance. ### Calculation of High-Water Mark diff --git a/en/pedia/h/high-yield_bond_spread.md b/en/pedia/h/high-yield_bond_spread.md index 4607f689..38d6dd34 100644 --- a/en/pedia/h/high-yield_bond_spread.md +++ b/en/pedia/h/high-yield_bond_spread.md @@ -63,7 +63,7 @@ Several tools and platforms assist investors and analysts in monitoring [high-yi - **[Bloomberg Terminal](../b/bloomberg_terminal.md)**: A comprehensive source for real-time financial data, including high-[yield](../y/yield.md) [spreads](../s/spreads.md). - **[Reuters](../r/reuters.md) Eikon**: Another [robust](../r/robust.md) platform [offering](../o/offering.md) detailed [bond market](../b/bond_market.md) information and analytics. -- **The ICE BofA US High [Yield](../y/yield.md) [Index](../i/index.md) (H0A0)**: Managed by ICE Data Indices, LLC, it tracks the performance of U.S. dollar-denominated below investment-grade corporate [debt](../d/debt.md) (https://indices.theice.com/[home](../h/home.md)). +- **The ICE BofA US High [Yield](../y/yield.md) [Index](../i/index_instrument.md) (H0A0)**: Managed by ICE Data Indices, LLC, it tracks the performance of U.S. dollar-denominated below investment-grade corporate [debt](../d/debt.md) (https://indices.theice.com/[home](../h/home.md)). - **Federal Reserve Economic Data (FRED)**: Provides historical [time series](../t/time_series.md) data on [high-yield bond](../h/high-yield_bond.md) [spreads](../s/spreads.md), sourced from the ICE Data Indices (https://fred.stlouisfed.org/). ## Conclusion diff --git a/en/pedia/h/high_beta_index.md b/en/pedia/h/high_beta_index.md index dafd59c6..9642684c 100644 --- a/en/pedia/h/high_beta_index.md +++ b/en/pedia/h/high_beta_index.md @@ -1,6 +1,6 @@ # High Beta Index -The High [Beta](../b/beta.md) [Index](../i/index.md) is a type of stock [market index](../m/market_index.md) that is composed of [stocks](../s/stock.md) with high [beta](../b/beta.md) values. The term "[beta](../b/beta.md)" is a measure of a stock's [volatility](../v/volatility.md) in relation to the overall [market](../m/market.md). A [beta](../b/beta.md) higher than 1 indicates that the stock is more volatile than the [market](../m/market.md), and a [beta](../b/beta.md) lower than 1 means that the stock is less volatile. A high [beta](../b/beta.md) [index](../i/index.md), therefore, focuses on [stocks](../s/stock.md) that are generally more volatile than the average [market](../m/market.md) stock. These types of indices are particularly useful for investors who are looking to take on more [risk](../r/risk.md) in [exchange](../e/exchange.md) for the potential of higher returns. +The High [Beta](../b/beta.md) [Index](../i/index_instrument.md) is a type of stock [market index](../m/market_index.md) that is composed of [stocks](../s/stock.md) with high [beta](../b/beta.md) values. The term "[beta](../b/beta.md)" is a measure of a stock's [volatility](../v/volatility.md) in relation to the overall [market](../m/market.md). A [beta](../b/beta.md) higher than 1 indicates that the stock is more volatile than the [market](../m/market.md), and a [beta](../b/beta.md) lower than 1 means that the stock is less volatile. A high [beta](../b/beta.md) [index](../i/index_instrument.md), therefore, focuses on [stocks](../s/stock.md) that are generally more volatile than the average [market](../m/market.md) stock. These types of indices are particularly useful for investors who are looking to take on more [risk](../r/risk.md) in [exchange](../e/exchange.md) for the potential of higher returns. ## Understanding Beta @@ -25,7 +25,7 @@ If a stock has a [beta](../b/beta.md) of 1.3, it is expected to be 30% more vola ## Components of a High Beta Index -The components of a high [beta](../b/beta.md) [index](../i/index.md) are chosen based on their [beta](../b/beta.md) values. Generally, the selection process involves identifying [stocks](../s/stock.md) with the highest [beta](../b/beta.md) in a given stock universe. +The components of a high [beta](../b/beta.md) [index](../i/index_instrument.md) are chosen based on their [beta](../b/beta.md) values. Generally, the selection process involves identifying [stocks](../s/stock.md) with the highest [beta](../b/beta.md) in a given stock universe. ### Criteria for Inclusion @@ -35,7 +35,7 @@ The components of a high [beta](../b/beta.md) [index](../i/index.md) are chosen ### Examples -1. **S&P 500 High [Beta](../b/beta.md) [Index](../i/index.md)**: Consists of 100 [stocks](../s/stock.md) from the S&P 500 with the highest [beta](../b/beta.md). +1. **S&P 500 High [Beta](../b/beta.md) [Index](../i/index_instrument.md)**: Consists of 100 [stocks](../s/stock.md) from the S&P 500 with the highest [beta](../b/beta.md). 2. **[NYSE Arca](../n/nyse_arca.md) High [Beta](../b/beta.md) ETF**: Focuses on high [beta](../b/beta.md) [stocks](../s/stock.md) [listed](../l/listed.md) on the NYSE. ## Construction of a High Beta Index @@ -45,7 +45,7 @@ The components of a high [beta](../b/beta.md) [index](../i/index.md) are chosen 1. **Initial Screening**: [Stocks](../s/stock.md) are screened based on [market capitalization](../m/market_capitalization.md) and trading [volume](../v/volume.md). 2. **[Beta](../b/beta.md) Calculation**: The [beta](../b/beta.md) for each stock is calculated over the chosen period. 3. **Ranking**: [Stocks](../s/stock.md) are ranked based on their [beta](../b/beta.md) values. -4. **Selection**: The top-ranked [stocks](../s/stock.md) by [beta](../b/beta.md) are included in the [index](../i/index.md). +4. **Selection**: The top-ranked [stocks](../s/stock.md) by [beta](../b/beta.md) are included in the [index](../i/index_instrument.md). ### Weighting Methodologies @@ -61,7 +61,7 @@ High [beta](../b/beta.md) [stocks](../s/stock.md) can provide significant [upsid ### Diversification -Including a high [beta](../b/beta.md) [index](../i/index.md) in a portfolio can provide [diversification benefits](../d/diversification_benefits.md). While they are more volatile, they do not always move in lockstep with other investments. +Including a high [beta](../b/beta.md) [index](../i/index_instrument.md) in a portfolio can provide [diversification benefits](../d/diversification_benefits.md). While they are more volatile, they do not always move in lockstep with other investments. ### Hedging @@ -87,12 +87,12 @@ High [beta](../b/beta.md) indices might have high concentrations in particular s High [beta](../b/beta.md) indices are often tracked by ETFs. Examples include: -- **Invesco S&P 500 High [Beta](../b/beta.md) ETF (Ticker: SPHB)**: Aims to track the performance of the S&P 500 High [Beta](../b/beta.md) [Index](../i/index.md). +- **Invesco S&P 500 High [Beta](../b/beta.md) ETF (Ticker: SPHB)**: Aims to track the performance of the S&P 500 High [Beta](../b/beta.md) [Index](../i/index_instrument.md). [Invesco S&P 500 High Beta ETF](https://www.invesco.com/us/financial-products/etfs/product-detail?productId=SPHB) ### Leveraged ETFs -[Leveraged ETFs](../l/leveraged_etfs.md) aim to provide returns that are a [multiple](../m/multiple.md) of the performance of the high [beta](../b/beta.md) [index](../i/index.md). For instance, a 2x leveraged high [beta](../b/beta.md) ETF would aim to [return](../r/return.md) 2% for every 1% move in the [index](../i/index.md). +[Leveraged ETFs](../l/leveraged_etfs.md) aim to provide returns that are a [multiple](../m/multiple.md) of the performance of the high [beta](../b/beta.md) [index](../i/index_instrument.md). For instance, a 2x leveraged high [beta](../b/beta.md) ETF would aim to [return](../r/return.md) 2% for every 1% move in the [index](../i/index_instrument.md). ### Futures and Options @@ -102,8 +102,8 @@ Trading [futures](../f/futures.md) and [options](../o/options.md) on high [beta] ### Contrast in Risk and Return -- **High [Beta](../b/beta.md) [Index](../i/index.md)**: Higher potential returns, higher [risk](../r/risk.md). -- **Low [Beta](../b/beta.md) [Index](../i/index.md)**: Lower potential returns, lower [risk](../r/risk.md). +- **High [Beta](../b/beta.md) [Index](../i/index_instrument.md)**: Higher potential returns, higher [risk](../r/risk.md). +- **Low [Beta](../b/beta.md) [Index](../i/index_instrument.md)**: Lower potential returns, lower [risk](../r/risk.md). ### Investment Strategies @@ -112,15 +112,15 @@ Trading [futures](../f/futures.md) and [options](../o/options.md) on high [beta] ### Examples -1. **S&P 500 Low [Volatility](../v/volatility.md) [Index](../i/index.md)**: Consists of [stocks](../s/stock.md) with the lowest [beta](../b/beta.md) values. -2. **Invesco S&P 500 Low [Volatility](../v/volatility.md) ETF (Ticker: SPLV)**: Tracks the S&P 500 Low [Volatility](../v/volatility.md) [Index](../i/index.md). +1. **S&P 500 Low [Volatility](../v/volatility.md) [Index](../i/index_instrument.md)**: Consists of [stocks](../s/stock.md) with the lowest [beta](../b/beta.md) values. +2. **Invesco S&P 500 Low [Volatility](../v/volatility.md) ETF (Ticker: SPLV)**: Tracks the S&P 500 Low [Volatility](../v/volatility.md) [Index](../i/index_instrument.md). [Invesco S&P 500 Low Volatility ETF](https://www.invesco.com/us/financial-products/etfs/product-detail?productId=SPLV) ## Performance Metrics ### Alpha -[Alpha](../a/alpha.md) measures the performance of an [index](../i/index.md) relative to a [benchmark](../b/benchmark.md) [market index](../m/market_index.md). +[Alpha](../a/alpha.md) measures the performance of an [index](../i/index_instrument.md) relative to a [benchmark](../b/benchmark.md) [market index](../m/market_index.md). ### Sharpe Ratio @@ -128,7 +128,7 @@ The [Sharpe Ratio](../s/sharpe_ratio.md) measures [risk-adjusted return](../r/ri ### Tracking Error -[Tracking error](../t/tracking_error.md) quantifies how closely an ETF mirrors its [underlying](../u/underlying.md) high [beta](../b/beta.md) [index](../i/index.md). +[Tracking error](../t/tracking_error.md) quantifies how closely an ETF mirrors its [underlying](../u/underlying.md) high [beta](../b/beta.md) [index](../i/index_instrument.md). ## Real-World Application and Examples diff --git a/en/pedia/h/high_probability_trading_strategies.md b/en/pedia/h/high_probability_trading_strategies.md index 356f7f6e..d15a9584 100644 --- a/en/pedia/h/high_probability_trading_strategies.md +++ b/en/pedia/h/high_probability_trading_strategies.md @@ -15,7 +15,7 @@ Successful high probability [trading strategies](../t/trading_strategies.md) rel - **[Downtrend](../d/downtrend.md)**: Characterized by lower lows and lower highs. - **Sideways [Trend](../t/trend.md)**: Occurs when the [market](../m/market.md) shows little directional movement. -[Technical indicators](../t/technical_indicators.md) like moving averages (MA), the Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) are often used to identify and confirm trends. +[Technical indicators](../t/technical_indicators.md) like moving averages (MA), the Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) are often used to identify and confirm trends. **[Momentum](../m/momentum.md)** @@ -26,7 +26,7 @@ Successful high probability [trading strategies](../t/trading_strategies.md) rel **[Volatility](../v/volatility.md)** -[Volatility](../v/volatility.md) indicates the extent of price fluctuations in the [market](../m/market.md). Higher [volatility](../v/volatility.md) generally increases trading opportunities, though it also entails higher [risk](../r/risk.md). Indicators such as [Bollinger Bands](../b/bollinger_bands.md), [Average True Range](../a/average_true_range_(atr).md) (ATR), and the [Volatility](../v/volatility.md) [Index](../i/index.md) (VIX) help quantify [volatility](../v/volatility.md). +[Volatility](../v/volatility.md) indicates the extent of price fluctuations in the [market](../m/market.md). Higher [volatility](../v/volatility.md) generally increases trading opportunities, though it also entails higher [risk](../r/risk.md). Indicators such as [Bollinger Bands](../b/bollinger_bands.md), [Average True Range](../a/average_true_range_(atr).md) (ATR), and the [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX) help quantify [volatility](../v/volatility.md). **[Risk Management](../r/risk_management.md)** diff --git a/en/pedia/h/hikkake_pattern.md b/en/pedia/h/hikkake_pattern.md index 14c9fd9e..275822a4 100644 --- a/en/pedia/h/hikkake_pattern.md +++ b/en/pedia/h/hikkake_pattern.md @@ -65,7 +65,7 @@ While the Hikkake pattern can provide valuable signals, its effectiveness can va The Hikkake pattern is visible across different time frames (daily, weekly, or even intra-day charts). However, higher time frames tend to produce more reliable signals due to the reduced [noise](../n/noise.md). ### Combination with Other Indicators -The Hikkake pattern can be more effective when combined with other [technical indicators](../t/technical_indicator.md) or [chart patterns](../c/chart_patterns.md). Moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and [volume analysis](../v/volume_analysis.md) can add additional layers of confirmation before entering a [trade](../t/trade.md). +The Hikkake pattern can be more effective when combined with other [technical indicators](../t/technical_indicator.md) or [chart patterns](../c/chart_patterns.md). Moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and [volume analysis](../v/volume_analysis.md) can add additional layers of confirmation before entering a [trade](../t/trade.md). ## Advantages and Disadvantages diff --git a/en/pedia/h/hindenburg_omen.md b/en/pedia/h/hindenburg_omen.md index 9e1ec6a3..20af2d60 100644 --- a/en/pedia/h/hindenburg_omen.md +++ b/en/pedia/h/hindenburg_omen.md @@ -12,7 +12,7 @@ For the Hindenburg Omen signal to be triggered, the following conditions must be 1. **New Highs and Lows Threshold:** The daily number of new 52-week highs and new 52-week lows on the NYSE must both be greater than 2.2% of the total number of issues traded that day. This indicates a bifurcation in [market sentiment](../m/market_sentiment.md), suggesting significant internal [market](../m/market.md) stress. 2. **New Highs and Lows Balance:** The number of new 52-week highs must not exceed twice the number of new 52-week lows. This criterion ensures there's a balance between rising and falling issues, signalling that bullish and bearish forces are clashing. -3. **NYA [Index](../i/index.md) Confirmation:** The [NYSE Composite Index](../n/nyse_composite_index.md) (NYA) must be in an [uptrend](../u/uptrend.md), typically measured by the 10-week moving average. The [index](../i/index.md) should be trading higher than it was 10 weeks ago, suggesting the [market](../m/market.md) is generally improving even as internal conflicts arise. +3. **NYA [Index](../i/index_instrument.md) Confirmation:** The [NYSE Composite Index](../n/nyse_composite_index.md) (NYA) must be in an [uptrend](../u/uptrend.md), typically measured by the 10-week moving average. The [index](../i/index_instrument.md) should be trading higher than it was 10 weeks ago, suggesting the [market](../m/market.md) is generally improving even as internal conflicts arise. 4. **[McClellan Oscillator](../m/mcclellan_oscillator.md):** The [McClellan Oscillator](../m/mcclellan_oscillator.md), which is a [breadth indicator](../b/breadth_indicator.md), must be negative on that day. A negative [value](../v/value.md) implies that [market](../m/market.md) [momentum](../m/momentum.md) is waning. Only if all these criteria are met is the Hindenburg Omen signal considered valid. If [multiple](../m/multiple.md) signals occur within a short period (e.g., 30 days), it strengthens the likelihood of a significant [market](../m/market.md) decline. diff --git a/en/pedia/h/histogram.md b/en/pedia/h/histogram.md index fd888e16..edf31f50 100644 --- a/en/pedia/h/histogram.md +++ b/en/pedia/h/histogram.md @@ -195,7 +195,7 @@ signal = macd.ewm(span=signal_window, adjust=False).mean() macd_histogram = macd - signal # Plotting the MACD Histogram -plt.bar(macd_histogram.[index](../i/index.md), macd_histogram, color='lightgreen') +plt.bar(macd_histogram.[index](../i/index_instrument.md), macd_histogram, color='lightgreen') plt.axhline(0, color='gray', linewidth=1) plt.title('MACD Histogram Example') plt.xlabel('Time') diff --git a/en/pedia/h/historical_beta_analysis.md b/en/pedia/h/historical_beta_analysis.md index 3b3faf20..a70ea6e0 100644 --- a/en/pedia/h/historical_beta_analysis.md +++ b/en/pedia/h/historical_beta_analysis.md @@ -4,7 +4,7 @@ Historical [beta](../b/beta.md) analysis is a crucial metric in the field of [al ## Understanding Beta -[Beta](../b/beta.md) is a statistical measure of the [volatility](../v/volatility.md), or [systematic risk](../s/systematic_risk.md), of a [security](../s/security.md) or a portfolio in comparison to the [market](../m/market.md) as a whole. The [market](../m/market.md), in most cases, is represented by a broad [index](../i/index.md) such as the S&P 500. The [beta](../b/beta.md) of the [market](../m/market.md) is 1.0 by definition. A [security](../s/security.md) with a [beta](../b/beta.md) greater than 1.0 is considered to be more volatile than the [market](../m/market.md), while a [security](../s/security.md) with a [beta](../b/beta.md) less than 1.0 is considered to be less volatile. A [beta](../b/beta.md) of exactly 1.0 indicates that the [security](../s/security.md)'s price moves with the [market](../m/market.md). +[Beta](../b/beta.md) is a statistical measure of the [volatility](../v/volatility.md), or [systematic risk](../s/systematic_risk.md), of a [security](../s/security.md) or a portfolio in comparison to the [market](../m/market.md) as a whole. The [market](../m/market.md), in most cases, is represented by a broad [index](../i/index_instrument.md) such as the S&P 500. The [beta](../b/beta.md) of the [market](../m/market.md) is 1.0 by definition. A [security](../s/security.md) with a [beta](../b/beta.md) greater than 1.0 is considered to be more volatile than the [market](../m/market.md), while a [security](../s/security.md) with a [beta](../b/beta.md) less than 1.0 is considered to be less volatile. A [beta](../b/beta.md) of exactly 1.0 indicates that the [security](../s/security.md)'s price moves with the [market](../m/market.md). ### Calculation of Beta diff --git a/en/pedia/h/historical_data_analysis.md b/en/pedia/h/historical_data_analysis.md index f281b993..d14f3f66 100644 --- a/en/pedia/h/historical_data_analysis.md +++ b/en/pedia/h/historical_data_analysis.md @@ -89,7 +89,7 @@ Machine learning models can identify complex patterns in historical data that tr [Technical analysis](../t/technical_analysis.md) involves using historical price and [volume](../v/volume.md) data to forecast future price movements. Common tools and indicators in [technical analysis](../t/technical_analysis.md) include: - **Moving Averages**: Simple, exponential moving averages. -- **[Momentum Indicators](../m/momentum_indicators.md)**: [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), MACD. +- **[Momentum Indicators](../m/momentum_indicators.md)**: [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), MACD. - **[Volume Indicators](../v/volume_indicators.md)**: On-balance [volume](../v/volume.md) (OBV), [Volume](../v/volume.md) [Weighted Average](../w/weighted_average.md) Price (VWAP). ## Real-World Applications diff --git a/en/pedia/h/historical_market_cycles.md b/en/pedia/h/historical_market_cycles.md index d108b56f..9985b0dc 100644 --- a/en/pedia/h/historical_market_cycles.md +++ b/en/pedia/h/historical_market_cycles.md @@ -28,7 +28,7 @@ Identifying and analyzing [market cycles](../m/market_cycles.md) involves studyi ### Technical Analysis -[Technical analysis](../t/technical_analysis.md) involves studying historical price charts and using various indicators to identify patterns that correspond to different phases of the [market](../m/market.md) cycle. Common [technical indicators](../t/technical_indicators.md) include moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)). [Chart patterns](../c/chart_patterns.md) such as head and shoulders, double tops and bottoms, and [trend](../t/trend.md) lines also help identify potential reversals and continuations in [market cycles](../m/market_cycles.md). +[Technical analysis](../t/technical_analysis.md) involves studying historical price charts and using various indicators to identify patterns that correspond to different phases of the [market](../m/market.md) cycle. Common [technical indicators](../t/technical_indicators.md) include moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)). [Chart patterns](../c/chart_patterns.md) such as head and shoulders, double tops and bottoms, and [trend](../t/trend.md) lines also help identify potential reversals and continuations in [market cycles](../m/market_cycles.md). ### Fundamental Analysis diff --git a/en/pedia/h/historical_price_analysis.md b/en/pedia/h/historical_price_analysis.md index e17c96e6..84c5ab54 100644 --- a/en/pedia/h/historical_price_analysis.md +++ b/en/pedia/h/historical_price_analysis.md @@ -30,7 +30,7 @@ Moving averages smooth out price data by creating a constantly updated average p ### 3. Technical Indicators [Technical indicators](../t/technical_indicators.md) are calculations based on price, [volume](../v/volume.md), or [open interest](../o/open_interest.md) data, aiming to forecast future price movements. Some widely used indicators include: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measures the speed and change of price movements. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measures the speed and change of price movements. - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: Shows the relationship between two moving averages of a [security](../s/security.md)’s price. - **[Bollinger Bands](../b/bollinger_bands.md)**: [Volatility](../v/volatility.md) bands placed above and below a moving average. diff --git a/en/pedia/h/historical_price_volatility.md b/en/pedia/h/historical_price_volatility.md index 605e87f9..17c668e1 100644 --- a/en/pedia/h/historical_price_volatility.md +++ b/en/pedia/h/historical_price_volatility.md @@ -100,7 +100,7 @@ Several platforms and tools facilitate the calculation and analysis of historica ### Volatility Indices -1. **VIX (CBOE [Volatility](../v/volatility.md) [Index](../i/index.md)):** A measure of the [market](../m/market.md)'s expectation of [volatility](../v/volatility.md) over the next 30 days, based on S&P 500 [index options](../i/index_options.md). While VIX represents future [volatility](../v/volatility.md), it serves as a [benchmark](../b/benchmark.md) for [historical volatility](../h/historical_volatility.md) analysis. +1. **VIX (CBOE [Volatility](../v/volatility.md) [Index](../i/index_instrument.md)):** A measure of the [market](../m/market.md)'s expectation of [volatility](../v/volatility.md) over the next 30 days, based on S&P 500 [index options](../i/index_options.md). While VIX represents future [volatility](../v/volatility.md), it serves as a [benchmark](../b/benchmark.md) for [historical volatility](../h/historical_volatility.md) analysis. - [CBOE VIX](http://www.cboe.com/vix) ### Quantitative Finance Models diff --git a/en/pedia/h/historical_relative_strength.md b/en/pedia/h/historical_relative_strength.md index 405b57f6..f138a536 100644 --- a/en/pedia/h/historical_relative_strength.md +++ b/en/pedia/h/historical_relative_strength.md @@ -1,6 +1,6 @@ # Historical Relative Strength -[Relative Strength](../r/relative_strength.md) (RS) is a classic [technical analysis](../t/technical_analysis.md) metric which compares the performance of a stock or other [financial instrument](../f/financial_instrument.md) against a [benchmark](../b/benchmark.md) or [index](../i/index.md), typically over a specified time period, to determine how it is performing relative to other assets. In the context of historical [relative strength](../r/relative_strength.md), we are specifically focused on examining this performance metric over historical periods to identify patterns, trends, and potentially predictive signals that can be utilized in [algorithmic trading](../a/algorithmic_trading.md). +[Relative Strength](../r/relative_strength.md) (RS) is a classic [technical analysis](../t/technical_analysis.md) metric which compares the performance of a stock or other [financial instrument](../f/financial_instrument.md) against a [benchmark](../b/benchmark.md) or [index](../i/index_instrument.md), typically over a specified time period, to determine how it is performing relative to other assets. In the context of historical [relative strength](../r/relative_strength.md), we are specifically focused on examining this performance metric over historical periods to identify patterns, trends, and potentially predictive signals that can be utilized in [algorithmic trading](../a/algorithmic_trading.md). ## What Is Relative Strength? @@ -8,7 +8,7 @@ \[ \text{[Relative Strength](../r/relative_strength.md)} = \frac{\text{Stock Price Performance}}{\text{[Benchmark](../b/benchmark.md) Performance}} \] -This ratio is often converted into a [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) [value](../v/value.md) that ranges from 0 to 100, to simplify analysis. An RSI [value](../v/value.md) above 70 typically indicates that a stock might be [overbought](../o/overbought.md), while a [value](../v/value.md) below 30 suggests it might be [oversold](../o/oversold.md). +This ratio is often converted into a [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) [value](../v/value.md) that ranges from 0 to 100, to simplify analysis. An RSI [value](../v/value.md) above 70 typically indicates that a stock might be [overbought](../o/overbought.md), while a [value](../v/value.md) below 30 suggests it might be [oversold](../o/oversold.md). ## Historical Analysis diff --git a/en/pedia/h/historical_trend_analysis.md b/en/pedia/h/historical_trend_analysis.md index 3486880a..1c004bf3 100644 --- a/en/pedia/h/historical_trend_analysis.md +++ b/en/pedia/h/historical_trend_analysis.md @@ -33,7 +33,7 @@ Once the data is prepared, the next step is to identify trends. Common methods i - **[Trend](../t/trend.md) Lines:** Drawing lines on a chart to connect a series of prices that show a continuing [trend](../t/trend.md). -- **[Technical Indicators](../t/technical_indicators.md):** Using mathematical formulas to analyze price data, such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_bands.md). +- **[Technical Indicators](../t/technical_indicators.md):** Using mathematical formulas to analyze price data, such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_bands.md). ### Modeling and Forecasting diff --git a/en/pedia/h/ho_chi_minh_city_stock_exchange_(hose).md b/en/pedia/h/ho_chi_minh_city_stock_exchange_(hose).md index dea26490..18a667bd 100644 --- a/en/pedia/h/ho_chi_minh_city_stock_exchange_(hose).md +++ b/en/pedia/h/ho_chi_minh_city_stock_exchange_(hose).md @@ -56,8 +56,8 @@ HOSE employs a trading mechanism that includes both periodic call auctions and c HOSE uses several indices to reflect the [market](../m/market.md) performance, the most notable being: -- **VN-[Index](../i/index.md):** The primary [benchmark](../b/benchmark.md), comprising all the [stocks](../s/stock.md) [listed](../l/listed.md) on HOSE. -- **VN30-[Index](../i/index.md):** Includes the 30 largest and most [liquid](../l/liquid.md) [stocks](../s/stock.md). +- **VN-[Index](../i/index_instrument.md):** The primary [benchmark](../b/benchmark.md), comprising all the [stocks](../s/stock.md) [listed](../l/listed.md) on HOSE. +- **VN30-[Index](../i/index_instrument.md):** Includes the 30 largest and most [liquid](../l/liquid.md) [stocks](../s/stock.md). - **Sectoral Indices:** Separate indices for various industries, such as the financial, industrial, and consumer sectors. ## Technology and Infrastructure diff --git a/en/pedia/h/holding_company_depository_receipt_(holdr).md b/en/pedia/h/holding_company_depository_receipt_(holdr).md index a5701a8b..7f7e4140 100644 --- a/en/pedia/h/holding_company_depository_receipt_(holdr).md +++ b/en/pedia/h/holding_company_depository_receipt_(holdr).md @@ -28,7 +28,7 @@ While both HOLDRs and ETFs allowed for diversified exposure to [industry](../i/i ### Flexibility -ETFs typically have a dynamic composition that can be periodically rebalanced to reflect changes in the [underlying](../u/underlying.md) [index](../i/index.md) or [investment strategy](../i/investment_strategy.md). In contrast, the stock composition in HOLDRs was static, [offering](../o/offering.md) less flexibility in terms of adaptation to [market](../m/market.md) conditions. +ETFs typically have a dynamic composition that can be periodically rebalanced to reflect changes in the [underlying](../u/underlying.md) [index](../i/index_instrument.md) or [investment strategy](../i/investment_strategy.md). In contrast, the stock composition in HOLDRs was static, [offering](../o/offering.md) less flexibility in terms of adaptation to [market](../m/market.md) conditions. ### Diversity diff --git a/en/pedia/h/holding_the_market.md b/en/pedia/h/holding_the_market.md index c158135e..4640b907 100644 --- a/en/pedia/h/holding_the_market.md +++ b/en/pedia/h/holding_the_market.md @@ -50,7 +50,7 @@ ETFs have become popular investment vehicles for holding the [market](../m/marke ### Circuit Breakers -Circuit breakers are mechanisms designed to temporarily halt trading on an [exchange](../e/exchange.md) if the [market](../m/market.md) experiences extreme [volatility](../v/volatility.md). These are predefined thresholds set by regulatory bodies to prevent panic selling and allow time for investors to assess [market](../m/market.md) conditions. For instance, if a major [index](../i/index.md) drops by a certain percentage within a short period, trading may be paused to prevent further decline. +Circuit breakers are mechanisms designed to temporarily halt trading on an [exchange](../e/exchange.md) if the [market](../m/market.md) experiences extreme [volatility](../v/volatility.md). These are predefined thresholds set by regulatory bodies to prevent panic selling and allow time for investors to assess [market](../m/market.md) conditions. For instance, if a major [index](../i/index_instrument.md) drops by a certain percentage within a short period, trading may be paused to prevent further decline. ## Companies Involved in Holding the Market diff --git a/en/pedia/h/holdings_turnover.md b/en/pedia/h/holdings_turnover.md index 90ffac7a..403f9630 100644 --- a/en/pedia/h/holdings_turnover.md +++ b/en/pedia/h/holdings_turnover.md @@ -37,7 +37,7 @@ High [holdings](../h/holdings.md) [turnover](../t/turnover.md) typically indicat A low [holdings](../h/holdings.md) [turnover ratio](../t/turnover_ratio.md) indicates a more passive investment approach, often linked with long-term investment strategies such as: - **Buy-and-[Hold](../h/hold.md) Strategy:** Focusing on long-term growth by [investing](../i/investing.md) in fundamentally sound entities and holding them over the long term. -- **[Index](../i/index.md) Tracking Funds:** Mimicking the composition of a [market index](../m/market_index.md) and maintaining a low [turnover](../t/turnover.md). +- **[Index](../i/index_instrument.md) Tracking Funds:** Mimicking the composition of a [market index](../m/market_index.md) and maintaining a low [turnover](../t/turnover.md). ##### Benefits of Low Turnover: 1. **Lower [Transaction Costs](../t/transaction_costs.md):** Reduced fees due to fewer trades. diff --git a/en/pedia/h/holt-winters_forecasting.md b/en/pedia/h/holt-winters_forecasting.md index b4fc71e2..671f5767 100644 --- a/en/pedia/h/holt-winters_forecasting.md +++ b/en/pedia/h/holt-winters_forecasting.md @@ -97,8 +97,8 @@ data = [112, 118, 132, 129, 121, 135, 148, 148, 136, 119, 104, 118, 115, 126, 548, 559, 463, 407, 362, 405, 417, 391, 419, 461, 472, 535, 622, 606, 508, 461, 390, 432] -[index](../i/index.md) = pd.date_range(start='1949', periods=len(data), freq='M') -ts_data = pd.Series(data, [index](../i/index.md)=[index](../i/index.md)) +[index](../i/index_instrument.md) = pd.date_range(start='1949', periods=len(data), freq='M') +ts_data = pd.Series(data, [index](../i/index_instrument.md)=[index](../i/index_instrument.md)) # Holt-Winters model model = ExponentialSmoothing(ts_data, seasonal='add', seasonal_periods=12) diff --git a/en/pedia/h/home_mortgage.md b/en/pedia/h/home_mortgage.md index ece461cd..2650739a 100644 --- a/en/pedia/h/home_mortgage.md +++ b/en/pedia/h/home_mortgage.md @@ -10,7 +10,7 @@ A [fixed-rate mortgage](../f/fixed-rate_mortgage.md) maintains the same [interes ### Adjustable-Rate Mortgages (ARM) -An adjustable-rate [mortgage](../m/mortgage.md) has an [interest rate](../i/interest_rate.md) that can change periodically based on changes in a corresponding financial [index](../i/index.md) that's associated with the [loan](../l/loan.md). Typically, the initial [interest rate](../i/interest_rate.md) is fixed for a period of time, after which it adjusts annually. An ARM might be expressed as a 5/1 ARM, meaning it has a fixed rate for five years and then adjusts annually thereafter. +An adjustable-rate [mortgage](../m/mortgage.md) has an [interest rate](../i/interest_rate.md) that can change periodically based on changes in a corresponding financial [index](../i/index_instrument.md) that's associated with the [loan](../l/loan.md). Typically, the initial [interest rate](../i/interest_rate.md) is fixed for a period of time, after which it adjusts annually. An ARM might be expressed as a 5/1 ARM, meaning it has a fixed rate for five years and then adjusts annually thereafter. ### Interest-Only Mortgages diff --git a/en/pedia/h/hong_kong_stock_exchange_(hkg)_.hk.md b/en/pedia/h/hong_kong_stock_exchange_(hkg)_.hk.md index 7b27b997..bc26e107 100644 --- a/en/pedia/h/hong_kong_stock_exchange_(hkg)_.hk.md +++ b/en/pedia/h/hong_kong_stock_exchange_(hkg)_.hk.md @@ -40,9 +40,9 @@ HKEX operates under the regulatory framework governed by the Securities and [Fut ## Key Indices HKEX features several indices that are commonly used as benchmarks for the performance of the Hong Kong [market](../m/market.md): -- **Hang Seng [Index](../i/index.md) (HSI)**: The premier [index](../i/index.md) covering the largest and most [liquid](../l/liquid.md) companies in Hong Kong. -- **Hang Seng China Enterprises [Index](../i/index.md) (HSCEI)**: Monitors the performance of mainland China enterprises [listed](../l/listed.md) in Hong Kong. -- **Hang Seng TECH [Index](../i/index.md)**: Tracks the 30 largest technology companies [listed](../l/listed.md) in Hong Kong. +- **Hang Seng [Index](../i/index_instrument.md) (HSI)**: The premier [index](../i/index_instrument.md) covering the largest and most [liquid](../l/liquid.md) companies in Hong Kong. +- **Hang Seng China Enterprises [Index](../i/index_instrument.md) (HSCEI)**: Monitors the performance of mainland China enterprises [listed](../l/listed.md) in Hong Kong. +- **Hang Seng TECH [Index](../i/index_instrument.md)**: Tracks the 30 largest technology companies [listed](../l/listed.md) in Hong Kong. ## Mainland and Hong Kong Stock Connect diff --git a/en/pedia/h/horizontal_channel.md b/en/pedia/h/horizontal_channel.md index 4cd92f2c..76be9105 100644 --- a/en/pedia/h/horizontal_channel.md +++ b/en/pedia/h/horizontal_channel.md @@ -42,7 +42,7 @@ Another effective strategy is [breakout trading](../b/breakout_trading.md), whic Traders often use [technical indicators](../t/technical_indicator.md) to confirm the signals provided by a horizontal channel. Some commonly used indicators include: -1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: This [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) can help identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: This [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) can help identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. 2. **Moving Averages**: Simple moving averages (SMA) or exponential moving averages (EMA) can help determine [trend](../t/trend.md) direction and potential [reversal](../r/reversal.md) points. diff --git a/en/pedia/h/horizontal_merger.md b/en/pedia/h/horizontal_merger.md index 12a26f85..dd137dc3 100644 --- a/en/pedia/h/horizontal_merger.md +++ b/en/pedia/h/horizontal_merger.md @@ -36,7 +36,7 @@ Horizontal mergers attract considerable scrutiny from [antitrust](../a/antitrust The [merger](../m/merger.md) review process often involves an in-depth investigation where regulators analyze [market](../m/market.md) data, competitor positioning, and potential impacts on consumers. Companies proposing a [merger](../m/merger.md) must demonstrate that the advantages outweigh any potential harm to competition. This process can include public commentary, economic analysis, and possibly [restructuring](../r/restructuring.md) proposals to [gain](../g/gain.md) regulatory approval. ### Legal Precedent and Case Law -Numerous legal precedents have shaped the landscape of horizontal mergers. Historical cases provide insights into how regulatory bodies approach [merger](../m/merger.md) evaluations, focusing on [market](../m/market.md) concentration indices such as the Herfindahl-Hirschman [Index](../i/index.md) (HHI) and the analysis of competitive effects in relevant markets. +Numerous legal precedents have shaped the landscape of horizontal mergers. Historical cases provide insights into how regulatory bodies approach [merger](../m/merger.md) evaluations, focusing on [market](../m/market.md) concentration indices such as the Herfindahl-Hirschman [Index](../i/index_instrument.md) (HHI) and the analysis of competitive effects in relevant markets. ## Strategic Implications diff --git a/en/pedia/h/horizontal_spread.md b/en/pedia/h/horizontal_spread.md index 54170968..53385e34 100644 --- a/en/pedia/h/horizontal_spread.md +++ b/en/pedia/h/horizontal_spread.md @@ -4,7 +4,7 @@ A Horizontal Spread, also known as a Calendar Spread or Time Spread, is an [opti ## Key Components of Horizontal Spread -1. **[Underlying Asset](../u/underlying_asset.md)**: The [financial instrument](../f/financial_instrument.md) (e.g., stock, [index](../i/index.md)) on which the [options](../o/options.md) are based. +1. **[Underlying Asset](../u/underlying_asset.md)**: The [financial instrument](../f/financial_instrument.md) (e.g., stock, [index](../i/index_instrument.md)) on which the [options](../o/options.md) are based. 2. **[Strike Price](../s/strike_price.md)**: The predetermined price at which the [underlying asset](../u/underlying_asset.md) can be bought or sold as per the [options contract](../o/options_contract.md). 3. **[Expiration Date](../e/expiration_date.md)**: The date on which the [options contract](../o/options_contract.md) expires. Horizontal [spreads](../s/spreads.md) involve [options](../o/options.md) with different expiration dates. 4. **[Premium](../p/premium.md)**: Cost associated with purchasing the option. diff --git a/en/pedia/h/hot_sector_rotation.md b/en/pedia/h/hot_sector_rotation.md index 115144be..126a2a75 100644 --- a/en/pedia/h/hot_sector_rotation.md +++ b/en/pedia/h/hot_sector_rotation.md @@ -39,7 +39,7 @@ Algo-[trading strategies](../t/trading_strategies.md) for hot [sector rotation]( ### Quantitative Indicators and Analysis [Quantitative analysis](../q/quantitative_analysis.md) is integral to algo-[trading strategies](../t/trading_strategies.md). Commonly used indicators in [sector rotation](../s/sector_rotation.md) include: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measures the speed and change of price movements, identifying [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measures the speed and change of price movements, identifying [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **Moving Averages**: Helps in smoothing out price data to identify trends and potential [reversal](../r/reversal.md) points. - **Sector [Momentum](../m/momentum.md)**: Analyzing the [momentum](../m/momentum.md) of a sector’s price movements relative to the broader [market](../m/market.md). - **[Correlation Analysis](../c/correlation_analysis.md)**: Studying the relationships between different sectors to forecast cross-sectoral performance impacts. diff --git a/en/pedia/h/hot_waitress_economic_index.md b/en/pedia/h/hot_waitress_economic_index.md index da2650d6..4cf4586e 100644 --- a/en/pedia/h/hot_waitress_economic_index.md +++ b/en/pedia/h/hot_waitress_economic_index.md @@ -1,10 +1,10 @@ # Hot Waitress Economic Index -The Hot Waitress Economic [Index](../i/index.md) (HWEI) is an informal and somewhat controversial [economic indicator](../e/economic_indicator.md) that was popularized by the financial author and analyst, Peter Morici. Though the [index](../i/index.md) is not supported by formal economic theory or rigorous statistical validation, it has gained attention as a whimsical yet provocative way to gauge [economic conditions](../e/economic_conditions.md). +The Hot Waitress Economic [Index](../i/index_instrument.md) (HWEI) is an informal and somewhat controversial [economic indicator](../e/economic_indicator.md) that was popularized by the financial author and analyst, Peter Morici. Though the [index](../i/index_instrument.md) is not supported by formal economic theory or rigorous statistical validation, it has gained attention as a whimsical yet provocative way to gauge [economic conditions](../e/economic_conditions.md). ## Concept of the Index -The basic idea behind the Hot Waitress Economic [Index](../i/index.md) is that during economic downturns and periods of high [unemployment](../u/unemployment.md), attractive individuals who might otherwise find employment in higher-paying or more prestigious jobs are more likely to take service [industry](../i/industry.md) positions, such as waiting tables. The theory posits that when you notice an increase in the number of unusually attractive individuals working in these roles, it could be an [indicator](../i/indicator.md) that the [job market](../j/job_market.md) is particularly tight. +The basic idea behind the Hot Waitress Economic [Index](../i/index_instrument.md) is that during economic downturns and periods of high [unemployment](../u/unemployment.md), attractive individuals who might otherwise find employment in higher-paying or more prestigious jobs are more likely to take service [industry](../i/industry.md) positions, such as waiting tables. The theory posits that when you notice an increase in the number of unusually attractive individuals working in these roles, it could be an [indicator](../i/indicator.md) that the [job market](../j/job_market.md) is particularly tight. The concept is certainly not without its criticisms. Many argue that it oversimplifies complex economic phenomena and relies on subjective [judgment](../j/judgment.md) that cannot be quantified. Moreover, it raises ethical concerns related to objectification and the reinforcement of gender stereotypes. @@ -18,15 +18,15 @@ The simplicity of the concept made it easily understandable and relatable to the ### Subjective Nature -One of the major critiques of the Hot Waitress Economic [Index](../i/index.md) is its subjective nature. Unlike traditional [economic indicators](../e/economic_indicators.md) such as GDP, [unemployment](../u/unemployment.md) rates, or [stock market](../s/stock_market.md) indices, the HWEI relies on the observer's perception of attractiveness, which can vary widely between individuals. +One of the major critiques of the Hot Waitress Economic [Index](../i/index_instrument.md) is its subjective nature. Unlike traditional [economic indicators](../e/economic_indicators.md) such as GDP, [unemployment](../u/unemployment.md) rates, or [stock market](../s/stock_market.md) indices, the HWEI relies on the observer's perception of attractiveness, which can vary widely between individuals. ### Lack of Empirical Evidence -There is no empirical data to back up the claims made by the Hot Waitress Economic [Index](../i/index.md). Its [basis](../b/basis.md) rests purely on anecdotal evidence and personal observations, making it unreliable for serious economic analysis. +There is no empirical data to back up the claims made by the Hot Waitress Economic [Index](../i/index_instrument.md). Its [basis](../b/basis.md) rests purely on anecdotal evidence and personal observations, making it unreliable for serious economic analysis. ### Gender Stereotypes -The [index](../i/index.md) can perpetuate harmful stereotypes about gender and attractiveness. It often focuses on women, reinforcing outdated ideas about beauty and societal roles. This has been one of the primary reasons why many economists and sociologists criticize it. +The [index](../i/index_instrument.md) can perpetuate harmful stereotypes about gender and attractiveness. It often focuses on women, reinforcing outdated ideas about beauty and societal roles. This has been one of the primary reasons why many economists and sociologists criticize it. ### Simplification of Complex Phenomena @@ -34,15 +34,15 @@ The [index](../i/index.md) can perpetuate harmful stereotypes about gender and a ## Comparisons with Other Unconventional Indicators -While the Hot Waitress Economic [Index](../i/index.md) is unique in its concept, it is not alone in the realm of unconventional [economic indicators](../e/economic_indicators.md). Several other nontraditional indicators have been proposed over the years, some of which include: +While the Hot Waitress Economic [Index](../i/index_instrument.md) is unique in its concept, it is not alone in the realm of unconventional [economic indicators](../e/economic_indicators.md). Several other nontraditional indicators have been proposed over the years, some of which include: ### The Lipstick Index -Proposed by Leonard Lauder, chairman of Estée Lauder, the Lipstick [Index](../i/index.md) suggests that during economic downturns, women tend to buy more affordable luxury items like lipstick instead of more expensive items. This theory posits that sales of lipstick can predict economic performance. +Proposed by Leonard Lauder, chairman of Estée Lauder, the Lipstick [Index](../i/index_instrument.md) suggests that during economic downturns, women tend to buy more affordable luxury items like lipstick instead of more expensive items. This theory posits that sales of lipstick can predict economic performance. ### The Hemline Index -The Hemline [Index](../i/index.md), attributed to [economist](../e/economist.md) George Taylor in 1926, suggests that hemlines move in sync with the [economy](../e/economy.md). When the [economy](../e/economy.md) is doing well, women tend to wear shorter skirts and dresses, and when the [economy](../e/economy.md) is in decline, hemlines tend to be longer. +The Hemline [Index](../i/index_instrument.md), attributed to [economist](../e/economist.md) George Taylor in 1926, suggests that hemlines move in sync with the [economy](../e/economy.md). When the [economy](../e/economy.md) is doing well, women tend to wear shorter skirts and dresses, and when the [economy](../e/economy.md) is in decline, hemlines tend to be longer. ### The Men's Underwear Index @@ -50,11 +50,11 @@ Former Federal Reserve Chairman [Alan Greenspan](../a/alan_greenspan.md) once su ### The Tie Sales Index -Proposed by some economists, this [index](../i/index.md) suggests that tie sales can indicate [economic conditions](../e/economic_conditions.md). During tough economic times, men might buy more ties to prepare for more job interviews, while tie sales may decline in [robust](../r/robust.md) [economic conditions](../e/economic_conditions.md). +Proposed by some economists, this [index](../i/index_instrument.md) suggests that tie sales can indicate [economic conditions](../e/economic_conditions.md). During tough economic times, men might buy more ties to prepare for more job interviews, while tie sales may decline in [robust](../r/robust.md) [economic conditions](../e/economic_conditions.md). ## Real-World Observations and their Implications -Although the Hot Waitress Economic [Index](../i/index.md) is not widely adopted or taken seriously within the academic community, it has spurred various discussions on the nature of [economic indicators](../e/economic_indicators.md) and the human elements involved in economic activities. It brings to light the necessity of blending qualitative and [quantitative approaches](../q/quantitative_approaches.md) in understanding the [economy](../e/economy.md). +Although the Hot Waitress Economic [Index](../i/index_instrument.md) is not widely adopted or taken seriously within the academic community, it has spurred various discussions on the nature of [economic indicators](../e/economic_indicators.md) and the human elements involved in economic activities. It brings to light the necessity of blending qualitative and [quantitative approaches](../q/quantitative_approaches.md) in understanding the [economy](../e/economy.md). ### Case Studies @@ -70,7 +70,7 @@ The economic impact of the COVID-19 pandemic also saw a large number of skilled ### Objectification and Gender Bias -One of the predominant criticisms against the Hot Waitress Economic [Index](../i/index.md) is that it can be seen as offensive and objectifying. By focusing on the physical attractiveness of individuals in service roles, it reinforces stereotypes and could contribute to the marginalization of those working in these sectors. +One of the predominant criticisms against the Hot Waitress Economic [Index](../i/index_instrument.md) is that it can be seen as offensive and objectifying. By focusing on the physical attractiveness of individuals in service roles, it reinforces stereotypes and could contribute to the marginalization of those working in these sectors. ### Ethical Considerations @@ -78,10 +78,10 @@ Using physical attractiveness as a [proxy](../p/proxy.md) for [economic conditio ### Lack of Standardization -The [index](../i/index.md) lacks a standardized method of measurement, making it impractical for comparison across different periods or geographic areas. What one person considers ‘attractive’ may differ significantly from another's perspective, creating inconsistencies. +The [index](../i/index_instrument.md) lacks a standardized method of measurement, making it impractical for comparison across different periods or geographic areas. What one person considers ‘attractive’ may differ significantly from another's perspective, creating inconsistencies. ## Conclusion -The Hot Waitress Economic [Index](../i/index.md) is a fascinating yet controversial example of an unconventional [economic indicator](../e/economic_indicator.md). Rooted in anecdotal evidence and subjective observation, its primary contribution is perhaps in spurring conversations about the multifaceted nature of [economic indicators](../e/economic_indicators.md) and the importance of considering diverse metrics. While it is unlikely to ever replace more scientific measures, it remains a curious footnote in the world of economic theory. +The Hot Waitress Economic [Index](../i/index_instrument.md) is a fascinating yet controversial example of an unconventional [economic indicator](../e/economic_indicator.md). Rooted in anecdotal evidence and subjective observation, its primary contribution is perhaps in spurring conversations about the multifaceted nature of [economic indicators](../e/economic_indicators.md) and the importance of considering diverse metrics. While it is unlikely to ever replace more scientific measures, it remains a curious footnote in the world of economic theory. -Though often critiqued for its lack of rigor and ethical considerations, the [index](../i/index.md) serves as a reminder of the diverse ways in which human behavior and perceptions intersect with [economic conditions](../e/economic_conditions.md). The key takeaway is not necessarily the validity of the [indicator](../i/indicator.md) itself but rather the importance of looking beyond traditional metrics to understand the full [scope](../s/scope.md) of economic health and human impact. \ No newline at end of file +Though often critiqued for its lack of rigor and ethical considerations, the [index](../i/index_instrument.md) serves as a reminder of the diverse ways in which human behavior and perceptions intersect with [economic conditions](../e/economic_conditions.md). The key takeaway is not necessarily the validity of the [indicator](../i/indicator.md) itself but rather the importance of looking beyond traditional metrics to understand the full [scope](../s/scope.md) of economic health and human impact. \ No newline at end of file diff --git a/en/pedia/h/house_price_index_(hpi).md b/en/pedia/h/house_price_index_(hpi).md index 3769b48a..6fd58896 100644 --- a/en/pedia/h/house_price_index_(hpi).md +++ b/en/pedia/h/house_price_index_(hpi).md @@ -1,10 +1,10 @@ # House Price Index (HPI) -The House Price [Index](../i/index.md) (HPI) is a crucial [economic indicator](../e/economic_indicator.md) that provides insights into the housing [market](../m/market.md)'s performance by measuring the changes in single-family [home](../h/home.md) prices over time. It is used by a [range](../r/range.md) of stakeholders, including [real estate](../r/real_estate.md) professionals, policymakers, investors, and economists, to assess the health of the housing [market](../m/market.md), manage investments, and formulate housing-related policies. This detailed overview [will](../w/will.md) cover the definition, importance, calculation, and applications of the HPI, as well as notable companies and tools related to it. +The House Price [Index](../i/index_instrument.md) (HPI) is a crucial [economic indicator](../e/economic_indicator.md) that provides insights into the housing [market](../m/market.md)'s performance by measuring the changes in single-family [home](../h/home.md) prices over time. It is used by a [range](../r/range.md) of stakeholders, including [real estate](../r/real_estate.md) professionals, policymakers, investors, and economists, to assess the health of the housing [market](../m/market.md), manage investments, and formulate housing-related policies. This detailed overview [will](../w/will.md) cover the definition, importance, calculation, and applications of the HPI, as well as notable companies and tools related to it. ## Definition -The House Price [Index](../i/index.md) (HPI) is a broad measure of the movement of single-family house prices. It is computed using data on repeat sales of houses that have undergone at least two transactions. By examining repeat sales, the HPI effectively tracks increases or decreases in house prices over specific periods, providing a [robust](../r/robust.md) gauge of the housing [market](../m/market.md)'s trends. +The House Price [Index](../i/index_instrument.md) (HPI) is a broad measure of the movement of single-family house prices. It is computed using data on repeat sales of houses that have undergone at least two transactions. By examining repeat sales, the HPI effectively tracks increases or decreases in house prices over specific periods, providing a [robust](../r/robust.md) gauge of the housing [market](../m/market.md)'s trends. Various organizations, including the Federal Housing [Finance](../f/finance.md) Agency (FHFA) in the United States, the Office for National [Statistics](../s/statistics.md) (ONS) in the United Kingdom, and other national statistical agencies, produce their versions of the HPI. @@ -63,14 +63,14 @@ The FHFA produces one of the most widely followed HPIs in the United States. The CoreLogic provides comprehensive property data and analytics, including the Case-Shiller [Home](../h/home.md) Price Indices in collaboration with S&P Dow Jones Indices. Their tools [offer](../o/offer.md) in-depth insights into the housing [market](../m/market.md). Visit [CoreLogic](https://www.corelogic.com/) for more details. ### Nationwide Building Society -One of the U.K.'s largest [mortgage](../m/mortgage.md) providers, Nationwide Building Society publishes a monthly HPI based on their [mortgage](../m/mortgage.md) lending data. This [index](../i/index.md) is widely regarded as a barometer of the U.K. housing [market](../m/market.md). More information is available on their [official website](https://www.nationwide.co.uk/). +One of the U.K.'s largest [mortgage](../m/mortgage.md) providers, Nationwide Building Society publishes a monthly HPI based on their [mortgage](../m/mortgage.md) lending data. This [index](../i/index_instrument.md) is widely regarded as a barometer of the U.K. housing [market](../m/market.md). More information is available on their [official website](https://www.nationwide.co.uk/). ### Office for National Statistics (ONS) -The ONS produces the official U.K. House Price [Index](../i/index.md), which provides detailed insights into the U.K. housing [market](../m/market.md). Their comprehensive datasets are essential for policymakers and economists. Visit the [ONS website](https://www.ons.gov.uk/) for more information. +The ONS produces the official U.K. House Price [Index](../i/index_instrument.md), which provides detailed insights into the U.K. housing [market](../m/market.md). Their comprehensive datasets are essential for policymakers and economists. Visit the [ONS website](https://www.ons.gov.uk/) for more information. ### Zillow -A leading [real estate](../r/real_estate.md) and rental marketplace, Zillow provides its own HPI, known as the Zillow [Home](../h/home.md) [Value](../v/value.md) [Index](../i/index.md) (ZHVI). This [index](../i/index.md) provides a granular view of [home](../h/home.md) [value](../v/value.md) trends across the U.S. Visit [Zillow](https://www.zillow.com/) for more details. +A leading [real estate](../r/real_estate.md) and rental marketplace, Zillow provides its own HPI, known as the Zillow [Home](../h/home.md) [Value](../v/value.md) [Index](../i/index_instrument.md) (ZHVI). This [index](../i/index_instrument.md) provides a granular view of [home](../h/home.md) [value](../v/value.md) trends across the U.S. Visit [Zillow](https://www.zillow.com/) for more details. ## Conclusion -The House Price [Index](../i/index.md) (HPI) is an indispensable [economic indicator](../e/economic_indicator.md) that plays a crucial role in understanding and managing the housing [market](../m/market.md)'s dynamics. By capturing the changes in single-family [home](../h/home.md) prices over time, the HPI provides valuable insights for a variety of stakeholders, including policymakers, investors, financial institutions, and the general public. Various organizations and companies [offer](../o/offer.md) their versions of the HPI, each adding unique perspectives and methodologies that enrich our comprehension of the housing [market](../m/market.md)'s performance. \ No newline at end of file +The House Price [Index](../i/index_instrument.md) (HPI) is an indispensable [economic indicator](../e/economic_indicator.md) that plays a crucial role in understanding and managing the housing [market](../m/market.md)'s dynamics. By capturing the changes in single-family [home](../h/home.md) prices over time, the HPI provides valuable insights for a variety of stakeholders, including policymakers, investors, financial institutions, and the general public. Various organizations and companies [offer](../o/offer.md) their versions of the HPI, each adding unique perspectives and methodologies that enrich our comprehension of the housing [market](../m/market.md)'s performance. \ No newline at end of file diff --git a/en/pedia/h/housing_market_index.md b/en/pedia/h/housing_market_index.md index 314bd396..ed74bd0a 100644 --- a/en/pedia/h/housing_market_index.md +++ b/en/pedia/h/housing_market_index.md @@ -15,13 +15,13 @@ Each of these components is rated on a scale from 0 to 100. The overall HMI is c The HMI has been published since January 1985 and has evolved into a vital barometer for gauging the health of the U.S. housing [market](../m/market.md). Historically, it has shown correlations with other [economic indicators](../e/economic_indicators.md) such as GDP growth, employment rates, and consumer confidence. For instance, a high HMI often coincides with [robust](../r/robust.md) [economic growth](../e/economic_growth.md) and a strong [labor market](../l/labor_market.md), while a low HMI can signal economic downturns and rising [unemployment](../u/unemployment.md). -During the mid-2000s housing boom, the HMI reached unprecedented highs, only to plummet during the [subprime mortgage](../s/subprime_mortgage.md) crisis and the subsequent [recession](../r/recession.md). This stark change underscored the [index](../i/index.md)'s effectiveness in reflecting [underlying](../u/underlying.md) [economic conditions](../e/economic_conditions.md) and its [utility](../u/utility.md) in alerting [market](../m/market.md) participants to impending shifts. +During the mid-2000s housing boom, the HMI reached unprecedented highs, only to plummet during the [subprime mortgage](../s/subprime_mortgage.md) crisis and the subsequent [recession](../r/recession.md). This stark change underscored the [index](../i/index_instrument.md)'s effectiveness in reflecting [underlying](../u/underlying.md) [economic conditions](../e/economic_conditions.md) and its [utility](../u/utility.md) in alerting [market](../m/market.md) participants to impending shifts. ## Data Collection and Methodology The data for the HMI is collected through a monthly survey of roughly 300 [home](../h/home.md) builders. These builders are asked to rate [market](../m/market.md) conditions based on their experience and [business activities](../b/business_activities.md). Each survey question is designed to capture current [market dynamics](../m/market_dynamics.md) and future expectations. The responses are then averaged to produce the overall HMI and its subcomponents. -The survey process ensures a broad geographical representation, [accounting](../a/accounting.md) for varying regional [market](../m/market.md) conditions across the United States. This geographic diversity helps in producing a comprehensive view of the [market](../m/market.md), ensuring that the [index](../i/index.md) is not skewed by localized events. +The survey process ensures a broad geographical representation, [accounting](../a/accounting.md) for varying regional [market](../m/market.md) conditions across the United States. This geographic diversity helps in producing a comprehensive view of the [market](../m/market.md), ensuring that the [index](../i/index_instrument.md) is not skewed by localized events. ## Impact on Financial Markets diff --git a/en/pedia/h/hulbert_rating.md b/en/pedia/h/hulbert_rating.md index 157493eb..28492d1f 100644 --- a/en/pedia/h/hulbert_rating.md +++ b/en/pedia/h/hulbert_rating.md @@ -19,7 +19,7 @@ Various [performance metrics](../p/performance_metrics.md) are utilized, includi 1. **[Absolute Return](../a/absolute_return.md)**: Measures the [total return](../t/total_return.md) of an investment over a specified period. 2. **[Risk-Adjusted Return](../r/risk-adjusted_return.md)**: Considers the [volatility](../v/volatility.md) of the returns, [offering](../o/offering.md) a more nuanced view by [accounting](../a/accounting.md) for [risk](../r/risk.md). -3. **[Alpha](../a/alpha.md)**: Represents the [excess return](../e/excess_return.md) of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index.md). +3. **[Alpha](../a/alpha.md)**: Represents the [excess return](../e/excess_return.md) of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). 4. **[Beta](../b/beta.md)**: Gauges the sensitivity of an investment’s returns to [market](../m/market.md) movements. ### Time Frames diff --git a/en/pedia/h/human_development_index_(hdi).md b/en/pedia/h/human_development_index_(hdi).md index 4c199e69..e276c7c5 100644 --- a/en/pedia/h/human_development_index_(hdi).md +++ b/en/pedia/h/human_development_index_(hdi).md @@ -1,6 +1,6 @@ # Human Development Index (HDI) -The Human Development [Index](../i/index.md) (HDI) is a composite statistic that assesses the social and economic development levels of countries around the world. Developed by the United Nations Development Programme (UNDP), the HDI aims to provide a broader measure of development than solely [economic indicators](../e/economic_indicators.md) such as Gross Domestic Product (GDP). By incorporating indicators related to health, education, and [standard of living](../s/standard_of_living.md), the HDI offers a multidimensional perspective on human well-being and social progress. +The Human Development [Index](../i/index_instrument.md) (HDI) is a composite statistic that assesses the social and economic development levels of countries around the world. Developed by the United Nations Development Programme (UNDP), the HDI aims to provide a broader measure of development than solely [economic indicators](../e/economic_indicators.md) such as Gross Domestic Product (GDP). By incorporating indicators related to health, education, and [standard of living](../s/standard_of_living.md), the HDI offers a multidimensional perspective on human well-being and social progress. ## Components of HDI @@ -30,13 +30,13 @@ Normalization of the indicators involves setting minimum and maximum values for The formula for normalization is: -\[ \text{Dimension [Index](../i/index.md)} = \frac{\text{Actual [Value](../v/value.md)} - \text{Minimum [Value](../v/value.md)}}{\text{Maximum [Value](../v/value.md)} - \text{Minimum [Value](../v/value.md)}} \] +\[ \text{Dimension [Index](../i/index_instrument.md)} = \frac{\text{Actual [Value](../v/value.md)} - \text{Minimum [Value](../v/value.md)}}{\text{Maximum [Value](../v/value.md)} - \text{Minimum [Value](../v/value.md)}} \] ### Aggregation Once the dimension indices are computed, the HDI is calculated by taking the [geometric mean](../g/geometric_mean_in_trading.md) of these indices: -\[ \text{HDI} = \left(\text{Health Index} \times \text{Education Index} \times \text{[Income](../i/income.md) [Index](../i/index.md)}\right)^{\frac{1}{3}} \] +\[ \text{HDI} = \left(\text{Health Index} \times \text{Education Index} \times \text{[Income](../i/income.md) [Index](../i/index_instrument.md)}\right)^{\frac{1}{3}} \] This method ensures that no single dimension dominates the overall HDI score, promoting a balanced evaluation of development. @@ -69,16 +69,16 @@ While the HDI is a valuable tool for assessing human development, it has faced s Several alternative measures and indices have been proposed to address some of the HDI's limitations: -1. **Inequality-adjusted Human Development [Index](../i/index.md) (IHDI)**: The IHDI adjusts the HDI for inequality in each dimension, providing a more nuanced view of human development. +1. **Inequality-adjusted Human Development [Index](../i/index_instrument.md) (IHDI)**: The IHDI adjusts the HDI for inequality in each dimension, providing a more nuanced view of human development. -2. **Gender Development [Index](../i/index.md) (GDI)**: The GDI measures gender [gaps](../g/gap.md) in human development achievements by [accounting](../a/accounting.md) for disparities between men and women. +2. **Gender Development [Index](../i/index_instrument.md) (GDI)**: The GDI measures gender [gaps](../g/gap.md) in human development achievements by [accounting](../a/accounting.md) for disparities between men and women. -3. **Gender Inequality [Index](../i/index.md) (GII)**: The GII focuses on gender-based inequalities in reproductive health, empowerment, and economic activity. +3. **Gender Inequality [Index](../i/index_instrument.md) (GII)**: The GII focuses on gender-based inequalities in reproductive health, empowerment, and economic activity. -4. **Multidimensional [Poverty](../p/poverty.md) [Index](../i/index.md) (MPI)**: The MPI assesses [poverty](../p/poverty.md) by considering [multiple](../m/multiple.md) deprivations across health, education, and living standards. +4. **Multidimensional [Poverty](../p/poverty.md) [Index](../i/index_instrument.md) (MPI)**: The MPI assesses [poverty](../p/poverty.md) by considering [multiple](../m/multiple.md) deprivations across health, education, and living standards. ## Conclusion -The Human Development [Index](../i/index.md) remains a vital tool for understanding and comparing the overall development levels of countries. It encourages a more holistic view of progress, extending beyond mere economic metrics. Although it has its limitations, the HDI continues to inspire dialogue and innovation in measuring human well-being. Exploring alternative and complementary indices can help address its shortcomings and provide a richer picture of global human development. +The Human Development [Index](../i/index_instrument.md) remains a vital tool for understanding and comparing the overall development levels of countries. It encourages a more holistic view of progress, extending beyond mere economic metrics. Although it has its limitations, the HDI continues to inspire dialogue and innovation in measuring human well-being. Exploring alternative and complementary indices can help address its shortcomings and provide a richer picture of global human development. For more information, visit the official [UNDP Human Development Reports](http://hdr.undp.org/en). \ No newline at end of file diff --git a/en/pedia/h/hypothesis_generation.md b/en/pedia/h/hypothesis_generation.md index ed086803..db6040c7 100644 --- a/en/pedia/h/hypothesis_generation.md +++ b/en/pedia/h/hypothesis_generation.md @@ -50,7 +50,7 @@ Machine [learning algorithms](../l/learning_algorithms_in_trading.md) can be ext ### 3.3 Technical Indicators -[Technical indicators](../t/technical_indicators.md) are a common method of generating hypotheses in trading. Indicators such as moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) provide quantitative signals that can form the [basis](../b/basis.md) of a trading hypothesis. +[Technical indicators](../t/technical_indicators.md) are a common method of generating hypotheses in trading. Indicators such as moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) provide quantitative signals that can form the [basis](../b/basis.md) of a trading hypothesis. ### 3.4 Backtesting diff --git a/en/pedia/i/income_annuity.md b/en/pedia/i/income_annuity.md index cf5b8e19..accf0717 100644 --- a/en/pedia/i/income_annuity.md +++ b/en/pedia/i/income_annuity.md @@ -19,7 +19,7 @@ An [income](../i/income.md) annuity, also known as a single [premium](../p/premi 2. **Deferred [Income](../i/income.md) Annuities**: Payments start at a future date. 3. **Fixed Annuities**: Provide a [fixed income](../f/fixed_income.md) stream. 4. **Variable Annuities**: Payments can vary based on the performance of investment [options](../o/options.md). -5. **Indexed Annuities**: Payments are linked to a financial [index](../i/index.md), such as the S&P 500. +5. **Indexed Annuities**: Payments are linked to a financial [index](../i/index_instrument.md), such as the S&P 500. ### Payment Options @@ -38,7 +38,7 @@ An [income](../i/income.md) annuity, also known as a single [premium](../p/premi ## Drawbacks of Income Annuities 1. **[Liquidity](../l/liquidity.md) Concerns**: Once the lump sum is exchanged for the annuity, the investment is generally illiquid. -2. **[Inflation](../i/inflation.md) [Risk](../r/risk.md)**: [Fixed income](../f/fixed_income.md) payments might not keep up with [inflation](../i/inflation.md) unless linked to an [index](../i/index.md). +2. **[Inflation](../i/inflation.md) [Risk](../r/risk.md)**: [Fixed income](../f/fixed_income.md) payments might not keep up with [inflation](../i/inflation.md) unless linked to an [index](../i/index_instrument.md). 3. **Complexity and Fees**: Some products might have complex features and associated fees. 4. **[Opportunity Cost](../o/opportunity_cost.md)**: Potential higher returns from alternative investments are forfeited. diff --git a/en/pedia/i/income_fund.md b/en/pedia/i/income_fund.md index 2d1a3e95..7d4d672c 100644 --- a/en/pedia/i/income_fund.md +++ b/en/pedia/i/income_fund.md @@ -105,11 +105,11 @@ There are many [income](../i/income.md) funds available to investors, managed by ### Vanguard Group, Inc. -[Vanguard High Dividend Yield Index Fund (VYM)](https://investor.vanguard.com/mutual-funds/profile/VYM): This ETF seeks to track the performance of the FTSE High [Dividend Yield](../d/dividend_yield.md) [Index](../i/index.md), focusing on large U.S. [stocks](../s/stock.md) that are forecasted to have above-average [dividend](../d/dividend.md) yields. +[Vanguard High Dividend Yield Index Fund (VYM)](https://investor.vanguard.com/mutual-funds/profile/VYM): This ETF seeks to track the performance of the FTSE High [Dividend Yield](../d/dividend_yield.md) [Index](../i/index_instrument.md), focusing on large U.S. [stocks](../s/stock.md) that are forecasted to have above-average [dividend](../d/dividend.md) yields. ### BlackRock, Inc. -[iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD)](https://www.ishares.com/us/products/239726/ishares-iboxx-investment-grade-corporate-bond-etf): This ETF seeks to track the investment results of an [index](../i/index.md) composed of U.S. dollar-denominated, investment-grade corporate bonds. +[iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD)](https://www.ishares.com/us/products/239726/ishares-iboxx-investment-grade-corporate-bond-etf): This ETF seeks to track the investment results of an [index](../i/index_instrument.md) composed of U.S. dollar-denominated, investment-grade corporate bonds. ### Fidelity Investments diff --git a/en/pedia/i/income_inequality.md b/en/pedia/i/income_inequality.md index 580b366e..44b21559 100644 --- a/en/pedia/i/income_inequality.md +++ b/en/pedia/i/income_inequality.md @@ -9,7 +9,7 @@ - **Gini Coefficient**: A measure that represents [income](../i/income.md) [distribution](../d/distribution.md) across a population. The coefficient ranges from 0 (perfect equality) to 1 (perfect inequality). - **[Lorenz Curve](../l/lorenz_curve.md)**: A graphical representation of the [distribution](../d/distribution.md) of [income](../i/income.md) or [wealth](../w/wealth.md) within a society. The further the curve is from the 45-degree line of equality, the greater the inequality. -Other methods include the Theil [index](../i/index.md), the Atkinson [index](../i/index.md), and various percentile ratios like the 90th/10th percentile ratio. +Other methods include the Theil [index](../i/index_instrument.md), the Atkinson [index](../i/index_instrument.md), and various percentile ratios like the 90th/10th percentile ratio. ## Historical Context diff --git a/en/pedia/i/index-linked_bond.md b/en/pedia/i/index-linked_bond.md index 2087fbb7..a61a2a2e 100644 --- a/en/pedia/i/index-linked_bond.md +++ b/en/pedia/i/index-linked_bond.md @@ -1,66 +1,66 @@ # Index-Linked Bond -An [index](../i/index.md)-linked [bond](../b/bond.md), also known as an [inflation](../i/inflation.md)-indexed [bond](../b/bond.md), is a type of [debt security](../d/debt_security.md) that offers protection against [inflation](../i/inflation.md). Unlike traditional bonds, which pay a [fixed interest rate](../f/fixed_interest_rate.md), [index](../i/index.md)-linked bonds adjust the [principal](../p/principal.md) and [interest](../i/interest.md) payments based on a specified [index](../i/index.md), typically an [inflation](../i/inflation.md) rate such as the Consumer Price [Index](../i/index.md) (CPI). This mechanism ensures that the [bondholder](../b/bondholder.md)'s returns keep pace with [inflation](../i/inflation.md), thereby preserving the [purchasing power](../p/purchasing_power.md) of their investment. The concept of [index](../i/index.md)-linked bonds is critical in [financial markets](../f/financial_market.md), providing investors and institutions a hedging option against the eroding effects of [inflation](../i/inflation.md). +An [index](../i/index_instrument.md)-linked [bond](../b/bond.md), also known as an [inflation](../i/inflation.md)-indexed [bond](../b/bond.md), is a type of [debt security](../d/debt_security.md) that offers protection against [inflation](../i/inflation.md). Unlike traditional bonds, which pay a [fixed interest rate](../f/fixed_interest_rate.md), [index](../i/index_instrument.md)-linked bonds adjust the [principal](../p/principal.md) and [interest](../i/interest.md) payments based on a specified [index](../i/index_instrument.md), typically an [inflation](../i/inflation.md) rate such as the Consumer Price [Index](../i/index_instrument.md) (CPI). This mechanism ensures that the [bondholder](../b/bondholder.md)'s returns keep pace with [inflation](../i/inflation.md), thereby preserving the [purchasing power](../p/purchasing_power.md) of their investment. The concept of [index](../i/index_instrument.md)-linked bonds is critical in [financial markets](../f/financial_market.md), providing investors and institutions a hedging option against the eroding effects of [inflation](../i/inflation.md). ## Historical Context -The concept of [index](../i/index.md)-linked bonds first emerged in the 18th century. The Massachusetts Bay Company issued the first [inflation](../i/inflation.md)-linked [bond](../b/bond.md) in 1780. However, widespread adoption did not occur until more recent decades. The United Kingdom led modern adaptation with the issuance of [inflation](../i/inflation.md)-linked [gilts](../g/gilts.md) in 1981. Other countries soon followed, recognizing the bonds' [utility](../u/utility.md) in stabilizing public [debt](../d/debt.md) and providing investors reliable returns irrespective of inflationary trends. +The concept of [index](../i/index_instrument.md)-linked bonds first emerged in the 18th century. The Massachusetts Bay Company issued the first [inflation](../i/inflation.md)-linked [bond](../b/bond.md) in 1780. However, widespread adoption did not occur until more recent decades. The United Kingdom led modern adaptation with the issuance of [inflation](../i/inflation.md)-linked [gilts](../g/gilts.md) in 1981. Other countries soon followed, recognizing the bonds' [utility](../u/utility.md) in stabilizing public [debt](../d/debt.md) and providing investors reliable returns irrespective of inflationary trends. ## Structure and Mechanism -[Index](../i/index.md)-linked bonds entail a variety of peculiarities and structures depending on the issuing entity and the referenced [index](../i/index.md). Here are some key components: +[Index](../i/index_instrument.md)-linked bonds entail a variety of peculiarities and structures depending on the issuing entity and the referenced [index](../i/index_instrument.md). Here are some key components: ### Principal Adjustment -The core feature of [index](../i/index.md)-linked bonds is the adjustment of the [principal](../p/principal.md) amount according to the [inflation](../i/inflation.md) [index](../i/index.md). For example, if a [bond](../b/bond.md)'s [principal](../p/principal.md) is $1,000, and the [inflation](../i/inflation.md) [index](../i/index.md) increases by 2%, the new [principal](../p/principal.md) amount becomes $1,020. This adjusted [principal](../p/principal.md) forms the [basis](../b/basis.md) for future [interest](../i/interest.md) payments and eventual [repayment](../r/repayment.md) at [maturity](../m/maturity.md). +The core feature of [index](../i/index_instrument.md)-linked bonds is the adjustment of the [principal](../p/principal.md) amount according to the [inflation](../i/inflation.md) [index](../i/index_instrument.md). For example, if a [bond](../b/bond.md)'s [principal](../p/principal.md) is $1,000, and the [inflation](../i/inflation.md) [index](../i/index_instrument.md) increases by 2%, the new [principal](../p/principal.md) amount becomes $1,020. This adjusted [principal](../p/principal.md) forms the [basis](../b/basis.md) for future [interest](../i/interest.md) payments and eventual [repayment](../r/repayment.md) at [maturity](../m/maturity.md). ### Interest Payments -[Interest](../i/interest.md) (also known as the coupon) on [index](../i/index.md)-linked bonds can be fixed or floating. In either case, the amount paid is recalculated based on the adjusted [principal](../p/principal.md). For instance, a [bond](../b/bond.md) with a 3% fixed annual [interest rate](../i/interest_rate.md) would pay $30 annually if the [principal](../p/principal.md) is $1,000. If [inflation](../i/inflation.md) causes the [principal](../p/principal.md) to rise to $1,020, the [interest](../i/interest.md) [payment](../p/payment.md) becomes $30.60. +[Interest](../i/interest.md) (also known as the coupon) on [index](../i/index_instrument.md)-linked bonds can be fixed or floating. In either case, the amount paid is recalculated based on the adjusted [principal](../p/principal.md). For instance, a [bond](../b/bond.md) with a 3% fixed annual [interest rate](../i/interest_rate.md) would pay $30 annually if the [principal](../p/principal.md) is $1,000. If [inflation](../i/inflation.md) causes the [principal](../p/principal.md) to rise to $1,020, the [interest](../i/interest.md) [payment](../p/payment.md) becomes $30.60. ### Deflationary Effects -Most [index](../i/index.md)-linked bonds include provisions to cap losses in deflationary scenarios. While the [principal](../p/principal.md) and [interest](../i/interest.md) adjust upwards with [inflation](../i/inflation.md), they may not necessarily adjust downwards as dramatically with [deflation](../d/deflation.md). This feature ensures some level of [principal](../p/principal.md) protection for bondholders. +Most [index](../i/index_instrument.md)-linked bonds include provisions to cap losses in deflationary scenarios. While the [principal](../p/principal.md) and [interest](../i/interest.md) adjust upwards with [inflation](../i/inflation.md), they may not necessarily adjust downwards as dramatically with [deflation](../d/deflation.md). This feature ensures some level of [principal](../p/principal.md) protection for bondholders. ## Types of Index-Linked Bonds -There are several types of [index](../i/index.md)-linked bonds, each catering to different [investor](../i/investor.md) needs and [market](../m/market.md) conditions. +There are several types of [index](../i/index_instrument.md)-linked bonds, each catering to different [investor](../i/investor.md) needs and [market](../m/market.md) conditions. ### Treasury Inflation-Protected Securities (TIPS) -The U.S. Department of the Treasury issues TIPS, one of the most widely recognized forms of [index](../i/index.md)-linked bonds. TIPS adjust their [principal](../p/principal.md) based on changes in the Consumer Price [Index](../i/index.md) (CPI). [Interest](../i/interest.md) is then calculated on the adjusted [principal](../p/principal.md). TIPS [offer](../o/offer.md) a [robust](../r/robust.md) [hedge](../h/hedge.md) against [inflation](../i/inflation.md) but may provide relatively lower yields in comparison to conventional bonds during low [inflation](../i/inflation.md) periods. More details can be found on the [U.S. Treasury's website](https://www.treasurydirect.gov/). +The U.S. Department of the Treasury issues TIPS, one of the most widely recognized forms of [index](../i/index_instrument.md)-linked bonds. TIPS adjust their [principal](../p/principal.md) based on changes in the Consumer Price [Index](../i/index_instrument.md) (CPI). [Interest](../i/interest.md) is then calculated on the adjusted [principal](../p/principal.md). TIPS [offer](../o/offer.md) a [robust](../r/robust.md) [hedge](../h/hedge.md) against [inflation](../i/inflation.md) but may provide relatively lower yields in comparison to conventional bonds during low [inflation](../i/inflation.md) periods. More details can be found on the [U.S. Treasury's website](https://www.treasurydirect.gov/). ### Inflation-Linkers (UK Gilts) -The UK government issues a variety of [inflation](../i/inflation.md)-linked [gilts](../g/gilts.md) that follow a similar mechanism to TIPS but are indexed to the UK's Retail Price [Index](../i/index.md) (RPI). These [gilts](../g/gilts.md) also [offer](../o/offer.md) semi-annual [interest](../i/interest.md) payments and [principal](../p/principal.md) adjustments tied to [inflation](../i/inflation.md). +The UK government issues a variety of [inflation](../i/inflation.md)-linked [gilts](../g/gilts.md) that follow a similar mechanism to TIPS but are indexed to the UK's Retail Price [Index](../i/index_instrument.md) (RPI). These [gilts](../g/gilts.md) also [offer](../o/offer.md) semi-annual [interest](../i/interest.md) payments and [principal](../p/principal.md) adjustments tied to [inflation](../i/inflation.md). ### Other Government Bonds -Countries like Canada, Sweden, and Japan also [issue](../i/issue.md) [index](../i/index.md)-linked bonds, each with their unique characteristics and indices used. In Canada, for instance, Real [Return](../r/return.md) Bonds (RRBs) are adjusted based on the Canadian CPI. +Countries like Canada, Sweden, and Japan also [issue](../i/issue.md) [index](../i/index_instrument.md)-linked bonds, each with their unique characteristics and indices used. In Canada, for instance, Real [Return](../r/return.md) Bonds (RRBs) are adjusted based on the Canadian CPI. ### Corporate Index-Linked Bonds -While less common, some corporations [issue](../i/issue.md) [index](../i/index.md)-linked bonds as well. These are typically found in countries with higher [inflation](../i/inflation.md) rates, where the need for [inflation](../i/inflation.md) protection is more pressing. +While less common, some corporations [issue](../i/issue.md) [index](../i/index_instrument.md)-linked bonds as well. These are typically found in countries with higher [inflation](../i/inflation.md) rates, where the need for [inflation](../i/inflation.md) protection is more pressing. ## Market Dynamics -The [market](../m/market.md) for [index](../i/index.md)-linked bonds is influenced by various factors, including current [inflation](../i/inflation.md) rates, [inflation](../i/inflation.md) expectations, [interest](../i/interest.md) rates, and overall [economic conditions](../e/economic_conditions.md). +The [market](../m/market.md) for [index](../i/index_instrument.md)-linked bonds is influenced by various factors, including current [inflation](../i/inflation.md) rates, [inflation](../i/inflation.md) expectations, [interest](../i/interest.md) rates, and overall [economic conditions](../e/economic_conditions.md). ### Demand and Supply -The [demand](../d/demand.md) for [index](../i/index.md)-linked bonds often rises during periods of higher expected [inflation](../i/inflation.md). Investors seek to protect their [purchasing power](../p/purchasing_power.md) and secure real returns. Conversely, in periods of low [inflation](../i/inflation.md) or [deflation](../d/deflation.md), conventional bonds might be more attractive due to typically higher [nominal](../n/nominal.md) yields. +The [demand](../d/demand.md) for [index](../i/index_instrument.md)-linked bonds often rises during periods of higher expected [inflation](../i/inflation.md). Investors seek to protect their [purchasing power](../p/purchasing_power.md) and secure real returns. Conversely, in periods of low [inflation](../i/inflation.md) or [deflation](../d/deflation.md), conventional bonds might be more attractive due to typically higher [nominal](../n/nominal.md) yields. ### Pricing -The pricing of [index](../i/index.md)-linked bonds involves complexities beyond those of standard fixed-[income](../i/income.md) securities. The real [yield](../y/yield.md) ([yield](../y/yield.md) minus [inflation](../i/inflation.md)) plays a crucial role, and [market](../m/market.md) participants continuously adjust prices based on [inflation](../i/inflation.md) forecasts and [economic indicators](../e/economic_indicators.md). +The pricing of [index](../i/index_instrument.md)-linked bonds involves complexities beyond those of standard fixed-[income](../i/income.md) securities. The real [yield](../y/yield.md) ([yield](../y/yield.md) minus [inflation](../i/inflation.md)) plays a crucial role, and [market](../m/market.md) participants continuously adjust prices based on [inflation](../i/inflation.md) forecasts and [economic indicators](../e/economic_indicators.md). ### Liquidity and Trading -[Index](../i/index.md)-linked bonds are generally less [liquid](../l/liquid.md) compared to traditional government bonds. However, they are usually considered high-quality, low-[risk](../r/risk.md) investments, which attract institutional investors, pension funds, and individual investors focused on long-term [inflation](../i/inflation.md) protection. +[Index](../i/index_instrument.md)-linked bonds are generally less [liquid](../l/liquid.md) compared to traditional government bonds. However, they are usually considered high-quality, low-[risk](../r/risk.md) investments, which attract institutional investors, pension funds, and individual investors focused on long-term [inflation](../i/inflation.md) protection. ## Advantages and Disadvantages -Understanding the pros and cons of [index](../i/index.md)-linked bonds can help investors make informed decisions. +Understanding the pros and cons of [index](../i/index_instrument.md)-linked bonds can help investors make informed decisions. ### Advantages @@ -70,42 +70,42 @@ Understanding the pros and cons of [index](../i/index.md)-linked bonds can help ### Disadvantages -- **Complexity:** The mechanism of [index](../i/index.md)-linked bonds can be more complex than traditional bonds, requiring a deeper understanding. -- **Lower [Yield](../y/yield.md):** In low [inflation](../i/inflation.md) environments, [index](../i/index.md)-linked bonds often [offer](../o/offer.md) lower yields compared to conventional bonds. +- **Complexity:** The mechanism of [index](../i/index_instrument.md)-linked bonds can be more complex than traditional bonds, requiring a deeper understanding. +- **Lower [Yield](../y/yield.md):** In low [inflation](../i/inflation.md) environments, [index](../i/index_instrument.md)-linked bonds often [offer](../o/offer.md) lower yields compared to conventional bonds. - **[Market Risk](../m/market_risk.md):** While insulated from [inflation](../i/inflation.md) [risk](../r/risk.md), these bonds still face [market risk](../m/market_risk.md), [interest rate risk](../i/interest_rate_risk.md), and geopolitical risks. ## Investment Strategies -Incorporating [index](../i/index.md)-linked bonds into an [investment strategy](../i/investment_strategy.md) requires considering several factors: +Incorporating [index](../i/index_instrument.md)-linked bonds into an [investment strategy](../i/investment_strategy.md) requires considering several factors: ### Hedge Against Inflation -For investors worried about rising [inflation](../i/inflation.md), allocating a portion of their portfolio to [index](../i/index.md)-linked bonds can provide a direct [hedge](../h/hedge.md). This strategy is particularly relevant for retirees or those with [inflation](../i/inflation.md)-sensitive liabilities. +For investors worried about rising [inflation](../i/inflation.md), allocating a portion of their portfolio to [index](../i/index_instrument.md)-linked bonds can provide a direct [hedge](../h/hedge.md). This strategy is particularly relevant for retirees or those with [inflation](../i/inflation.md)-sensitive liabilities. ### Long-Term Investment -Due to their [inflation](../i/inflation.md) protection, [index](../i/index.md)-linked bonds are suited for long-term investment horizons. They ensure that the [investor](../i/investor.md)'s [purchasing power](../p/purchasing_power.md) is maintained over extended periods. +Due to their [inflation](../i/inflation.md) protection, [index](../i/index_instrument.md)-linked bonds are suited for long-term investment horizons. They ensure that the [investor](../i/investor.md)'s [purchasing power](../p/purchasing_power.md) is maintained over extended periods. ### Diversification -[Index](../i/index.md)-linked bonds can diversify fixed-[income](../i/income.md) portfolios given their differential response to [inflation](../i/inflation.md) compared to conventional bonds. They reduce exposure to inflationary pressures and improve the overall [risk](../r/risk.md) profile of the investment portfolio. +[Index](../i/index_instrument.md)-linked bonds can diversify fixed-[income](../i/income.md) portfolios given their differential response to [inflation](../i/inflation.md) compared to conventional bonds. They reduce exposure to inflationary pressures and improve the overall [risk](../r/risk.md) profile of the investment portfolio. ## Economic and Policy Implications -[Index](../i/index.md)-linked bonds are not only crucial for individual [financial planning](../f/financial_planning.md) but also [hold](../h/hold.md) significant implications for government policy and broader economic stability. +[Index](../i/index_instrument.md)-linked bonds are not only crucial for individual [financial planning](../f/financial_planning.md) but also [hold](../h/hold.md) significant implications for government policy and broader economic stability. ### Public Debt Management -Governments use [index](../i/index.md)-linked bonds to manage national [debt](../d/debt.md) portfolios, reduce [interest rate risk](../i/interest_rate_risk.md), and stabilize [debt](../d/debt.md) servicing costs in real terms. These bonds attract a reliable [investor](../i/investor.md) base focused on long-term stability. +Governments use [index](../i/index_instrument.md)-linked bonds to manage national [debt](../d/debt.md) portfolios, reduce [interest rate risk](../i/interest_rate_risk.md), and stabilize [debt](../d/debt.md) servicing costs in real terms. These bonds attract a reliable [investor](../i/investor.md) base focused on long-term stability. ### Monetary Policy -[Index](../i/index.md)-linked bonds serve as valuable indicators for central banks and policymakers. The [yield](../y/yield.md) and [demand](../d/demand.md) patterns can provide insights into [market](../m/market.md) expectations for [inflation](../i/inflation.md), guiding [monetary policy](../m/monetary_policy.md) adjustments. +[Index](../i/index_instrument.md)-linked bonds serve as valuable indicators for central banks and policymakers. The [yield](../y/yield.md) and [demand](../d/demand.md) patterns can provide insights into [market](../m/market.md) expectations for [inflation](../i/inflation.md), guiding [monetary policy](../m/monetary_policy.md) adjustments. ## Conclusion -[Index](../i/index.md)-linked bonds play a pivotal role in [financial markets](../f/financial_market.md) by [offering](../o/offering.md) protection against [inflation](../i/inflation.md). They cater to both individual and institutional investors looking to preserve the [purchasing power](../p/purchasing_power.md) of their investments. The structure and dynamics of these bonds are complex but pivotal for those wary of inflationary pressures. By comprehending their mechanics, advantages, and strategic importance, investors can make informed decisions to secure real returns in varying [economic conditions](../e/economic_conditions.md). +[Index](../i/index_instrument.md)-linked bonds play a pivotal role in [financial markets](../f/financial_market.md) by [offering](../o/offering.md) protection against [inflation](../i/inflation.md). They cater to both individual and institutional investors looking to preserve the [purchasing power](../p/purchasing_power.md) of their investments. The structure and dynamics of these bonds are complex but pivotal for those wary of inflationary pressures. By comprehending their mechanics, advantages, and strategic importance, investors can make informed decisions to secure real returns in varying [economic conditions](../e/economic_conditions.md). ## References -For further details, readers may refer to official resources such as the [U.S. Treasury's website](https://www.treasurydirect.gov/) for comprehensive information on Treasury [Inflation-Protected Securities](../i/inflation-protected_securities.md) (TIPS) and other [index](../i/index.md)-linked instruments offered globally. \ No newline at end of file +For further details, readers may refer to official resources such as the [U.S. Treasury's website](https://www.treasurydirect.gov/) for comprehensive information on Treasury [Inflation-Protected Securities](../i/inflation-protected_securities.md) (TIPS) and other [index](../i/index_instrument.md)-linked instruments offered globally. \ No newline at end of file diff --git a/en/pedia/i/index_arbitrage.md b/en/pedia/i/index_arbitrage.md index baba7e7a..a151679f 100644 --- a/en/pedia/i/index_arbitrage.md +++ b/en/pedia/i/index_arbitrage.md @@ -1,25 +1,25 @@ # Index Arbitrage -[Index](../i/index.md) [arbitrage](../a/arbitrage.md) is a type of [trading strategy](../t/trading_strategy.md) that exploits the price differences between an [index](../i/index.md) and its [underlying](../u/underlying.md) components. This practice is mainly carried out in major financial indices like the S&P 500, Dow Jones Industrial Average, and [NASDAQ](../n/nasdaq.md). [Index](../i/index.md) [arbitrage](../a/arbitrage.md) is a subset of statistical [arbitrage](../a/arbitrage.md) and can be considered a form of [market](../m/market.md)-[neutral](../n/neutral.md) trading. The goal is to [capitalize](../c/capitalize.md) on the mispricing of the [underlying](../u/underlying.md) assets in comparison to the [index](../i/index.md). When the price difference becomes large enough, arbitrageurs buy the lower-priced [asset](../a/asset.md) and sell the higher-priced one to lock in a [risk](../r/risk.md)-free [profit](../p/profit.md). This strategy requires high-frequency [trading systems](../t/trading_systems.md) and advanced algorithms to execute swiftly and profitably. +[Index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) is a type of [trading strategy](../t/trading_strategy.md) that exploits the price differences between an [index](../i/index_instrument.md) and its [underlying](../u/underlying.md) components. This practice is mainly carried out in major financial indices like the S&P 500, Dow Jones Industrial Average, and [NASDAQ](../n/nasdaq.md). [Index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) is a subset of statistical [arbitrage](../a/arbitrage.md) and can be considered a form of [market](../m/market.md)-[neutral](../n/neutral.md) trading. The goal is to [capitalize](../c/capitalize.md) on the mispricing of the [underlying](../u/underlying.md) assets in comparison to the [index](../i/index_instrument.md). When the price difference becomes large enough, arbitrageurs buy the lower-priced [asset](../a/asset.md) and sell the higher-priced one to lock in a [risk](../r/risk.md)-free [profit](../p/profit.md). This strategy requires high-frequency [trading systems](../t/trading_systems.md) and advanced algorithms to execute swiftly and profitably. ### Mechanics of Index Arbitrage #### Concept of Arbitrage -[Arbitrage](../a/arbitrage.md) involves buying and selling the same [asset](../a/asset.md) or equivalent assets in different markets to [profit](../p/profit.md) from price discrepancies. For [index](../i/index.md) [arbitrage](../a/arbitrage.md), the assets in question are an [index](../i/index.md) and the basket of securities that comprise that [index](../i/index.md). +[Arbitrage](../a/arbitrage.md) involves buying and selling the same [asset](../a/asset.md) or equivalent assets in different markets to [profit](../p/profit.md) from price discrepancies. For [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md), the assets in question are an [index](../i/index_instrument.md) and the basket of securities that comprise that [index](../i/index_instrument.md). #### Index Futures -One of the most common tools used in [index](../i/index.md) [arbitrage](../a/arbitrage.md) is [index futures](../i/index_futures.md). These financial [derivatives](../d/derivatives.md) allow traders to speculate on the future [value](../v/value.md) of an [index](../i/index.md). When the prices of [index futures](../i/index_futures.md) and the actual [index](../i/index.md) deviate significantly from each other, it creates an [arbitrage](../a/arbitrage.md) opportunity. The [trader](../t/trader.md) can buy the cheaper [asset](../a/asset.md) ([index](../i/index.md) or [futures](../f/futures.md)) and sell the more expensive one. +One of the most common tools used in [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) is [index futures](../i/index_futures.md). These financial [derivatives](../d/derivatives.md) allow traders to speculate on the future [value](../v/value.md) of an [index](../i/index_instrument.md). When the prices of [index futures](../i/index_futures.md) and the actual [index](../i/index_instrument.md) deviate significantly from each other, it creates an [arbitrage](../a/arbitrage.md) opportunity. The [trader](../t/trader.md) can buy the cheaper [asset](../a/asset.md) ([index](../i/index_instrument.md) or [futures](../f/futures.md)) and sell the more expensive one. #### Cash and Carry Arbitrage -Cash and carry [arbitrage](../a/arbitrage.md) is a specific form of [index](../i/index.md) [arbitrage](../a/arbitrage.md) involving [short selling](../s/short_selling.md) the [index futures](../i/index_futures.md) and purchasing the [underlying](../u/underlying.md) basket of securities. Traders [will](../w/will.md) [hold](../h/hold.md) these positions until the [futures contract](../f/futures_contract.md) expires. On the contract's expiration, the [futures](../f/futures.md) and the [index](../i/index.md) prices converge, allowing the [arbitrageur](../a/arbitrageur.md) to close both positions profitably. +Cash and carry [arbitrage](../a/arbitrage.md) is a specific form of [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) involving [short selling](../s/short_selling.md) the [index futures](../i/index_futures.md) and purchasing the [underlying](../u/underlying.md) basket of securities. Traders [will](../w/will.md) [hold](../h/hold.md) these positions until the [futures contract](../f/futures_contract.md) expires. On the contract's expiration, the [futures](../f/futures.md) and the [index](../i/index_instrument.md) prices converge, allowing the [arbitrageur](../a/arbitrageur.md) to close both positions profitably. #### Requirements for Index Arbitrage 1. **Speed:** [Trading algorithms](../t/trading_algorithms.md) must execute trades within milliseconds to take advantage of transient price discrepancies. -2. **[Liquidity](../l/liquidity.md):** The [underlying](../u/underlying.md) [index](../i/index.md) components and [index futures](../i/index_futures.md) must be sufficiently [liquid](../l/liquid.md) to enable smooth [execution](../e/execution.md) without substantial price impact. +2. **[Liquidity](../l/liquidity.md):** The [underlying](../u/underlying.md) [index](../i/index_instrument.md) components and [index futures](../i/index_futures.md) must be sufficiently [liquid](../l/liquid.md) to enable smooth [execution](../e/execution.md) without substantial price impact. 3. **Technology:** The use of advanced trading platforms and low-latency [infrastructure](../i/infrastructure.md) is crucial. 4. **[Risk Management](../r/risk_management.md):** Adequate strategies to [hedge](../h/hedge.md) risks associated with the price movements of the [underlying](../u/underlying.md) securities and [index futures](../i/index_futures.md). @@ -27,8 +27,8 @@ Cash and carry [arbitrage](../a/arbitrage.md) is a specific form of [index](../i #### Benefits -- **[Market Efficiency](../m/market_efficiency.md):** [Index](../i/index.md) [arbitrage](../a/arbitrage.md) helps in improving [market efficiency](../m/market_efficiency.md) by correcting mispricings between the [index](../i/index.md) and its constituents. -- **Low-[Risk](../r/risk.md) [Profit](../p/profit.md):** While theoretically considered as [risk](../r/risk.md)-free, [index](../i/index.md) [arbitrage](../a/arbitrage.md) can provide consistent low-[risk](../r/risk.md) returns when executed correctly. +- **[Market Efficiency](../m/market_efficiency.md):** [Index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) helps in improving [market efficiency](../m/market_efficiency.md) by correcting mispricings between the [index](../i/index_instrument.md) and its constituents. +- **Low-[Risk](../r/risk.md) [Profit](../p/profit.md):** While theoretically considered as [risk](../r/risk.md)-free, [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) can provide consistent low-[risk](../r/risk.md) returns when executed correctly. #### Challenges @@ -38,7 +38,7 @@ Cash and carry [arbitrage](../a/arbitrage.md) is a specific form of [index](../i ### Tools and Technologies -The successful implementation of [index](../i/index.md) [arbitrage](../a/arbitrage.md) requires a suite of advanced tools and technologies: +The successful implementation of [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) requires a suite of advanced tools and technologies: #### Trading Platforms @@ -54,7 +54,7 @@ Low-latency connections to exchanges and data feeds to ensure timely [execution] ### Prominent Players in Index Arbitrage -Several firms and trading desks specialize in [index](../i/index.md) [arbitrage](../a/arbitrage.md). These include: +Several firms and trading desks specialize in [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md). These include: 1. **Jane Street:** A [quantitative trading](../q/quantitative_trading.md) [firm](../f/firm.md) that employs sophisticated technology for [market](../m/market.md) making and [arbitrage](../a/arbitrage.md). More information can be found on their [website](https://www.janestreet.com/). 2. **[Jump Trading](../j/jump_trading.md):** Known for its high-frequency [trading strategies](../t/trading_strategies.md), [Jump Trading](../j/jump_trading.md) is a private [proprietary trading](../p/proprietary_trading.md) [firm](../f/firm.md) engaged in [multiple](../m/multiple.md) [arbitrage](../a/arbitrage.md) practices. Visit their [website](https://jumptrading.com/). @@ -62,7 +62,7 @@ Several firms and trading desks specialize in [index](../i/index.md) [arbitrage] ### Regulation of Index Arbitrage -[Index](../i/index.md) [arbitrage](../a/arbitrage.md) activities are regulated by financial authorities to ensure [market](../m/market.md) integrity and protect investors. Major regulatory bodies include: +[Index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) activities are regulated by financial authorities to ensure [market](../m/market.md) integrity and protect investors. Major regulatory bodies include: - **U.S. Securities and [Exchange](../e/exchange.md) [Commission](../c/commission.md) (SEC):** The SEC oversees securities markets, including the trading practices employed by [market](../m/market.md) participants. - **[Commodity Futures](../c/commodity_futures.md) Trading [Commission](../c/commission.md) (CFTC):** This body regulates [futures](../f/futures.md) and [options](../o/options.md) markets in the U.S., including [index futures](../i/index_futures.md). @@ -70,4 +70,4 @@ Several firms and trading desks specialize in [index](../i/index.md) [arbitrage] ### Conclusion -[Index](../i/index.md) [arbitrage](../a/arbitrage.md) plays a crucial role in modern [financial markets](../f/financial_market.md) by enhancing [market efficiency](../m/market_efficiency.md) and [offering](../o/offering.md) low-[risk](../r/risk.md) [profit](../p/profit.md) opportunities. However, the strategy requires significant technology investment, rapid [execution](../e/execution.md) mechanisms, and meticulous [risk management](../r/risk_management.md). Despite its complexities and challenges, firms specializing in [index](../i/index.md) [arbitrage](../a/arbitrage.md), backed by cutting-edge technologies and [robust](../r/robust.md) trading [infrastructure](../i/infrastructure.md), can successfully [capitalize](../c/capitalize.md) on [market](../m/market.md) inefficiencies. +[Index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) plays a crucial role in modern [financial markets](../f/financial_market.md) by enhancing [market efficiency](../m/market_efficiency.md) and [offering](../o/offering.md) low-[risk](../r/risk.md) [profit](../p/profit.md) opportunities. However, the strategy requires significant technology investment, rapid [execution](../e/execution.md) mechanisms, and meticulous [risk management](../r/risk_management.md). Despite its complexities and challenges, firms specializing in [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md), backed by cutting-edge technologies and [robust](../r/robust.md) trading [infrastructure](../i/infrastructure.md), can successfully [capitalize](../c/capitalize.md) on [market](../m/market.md) inefficiencies. diff --git a/en/pedia/i/index_construction.md b/en/pedia/i/index_construction.md index 3341450e..548fc5a9 100644 --- a/en/pedia/i/index_construction.md +++ b/en/pedia/i/index_construction.md @@ -1,22 +1,22 @@ # Index Construction -[Index](../i/index.md) construction is a foundational element in [financial markets](../f/financial_market.md), serving as a tool for measuring [market](../m/market.md) performance, creating investment products like ETFs ([Exchange](../e/exchange.md)-Traded Funds), and benchmarking [portfolio management](../p/portfolio_management.md). Indices can be constructed for a variety of [asset](../a/asset.md) classes, including equities, [fixed income](../f/fixed_income.md), commodities, and even [derivatives](../d/derivatives.md). This in-depth guide explores the principles and methodologies behind [index](../i/index.md) construction. +[Index](../i/index_instrument.md) construction is a foundational element in [financial markets](../f/financial_market.md), serving as a tool for measuring [market](../m/market.md) performance, creating investment products like ETFs ([Exchange](../e/exchange.md)-Traded Funds), and benchmarking [portfolio management](../p/portfolio_management.md). Indices can be constructed for a variety of [asset](../a/asset.md) classes, including equities, [fixed income](../f/fixed_income.md), commodities, and even [derivatives](../d/derivatives.md). This in-depth guide explores the principles and methodologies behind [index](../i/index_instrument.md) construction. ## Introduction to Index Construction -An [index](../i/index.md) is a statistical measure that incorporates the performance of a group of assets, intended to represent a specific segment of a financial [market](../m/market.md). The purpose of an [index](../i/index.md) can include anything from tracking the [market](../m/market.md) as a whole to measuring the performance of specific sectors, regions, or investment strategies. +An [index](../i/index_instrument.md) is a statistical measure that incorporates the performance of a group of assets, intended to represent a specific segment of a financial [market](../m/market.md). The purpose of an [index](../i/index_instrument.md) can include anything from tracking the [market](../m/market.md) as a whole to measuring the performance of specific sectors, regions, or investment strategies. ### Key Types of Indices 1. **Broad [Market](../m/market.md) Indices**: These indices aim to represent the entire [market](../m/market.md) rather than a specific subset. Examples include the S&P 500, which represents large-cap U.S. [stocks](../s/stock.md), and the Russell 3000, which includes a broader [range](../r/range.md) of U.S. [stocks](../s/stock.md). -2. **[Sector Indices](../s/sector_indices.md)**: These indices focus on specific sectors or industries like technology, healthcare, or utilities. Examples include the [NASDAQ](../n/nasdaq.md)-100 [Technology Sector](../t/technology_sector.md) [Index](../i/index.md) and the S&P 500 Financials [Index](../i/index.md). +2. **[Sector Indices](../s/sector_indices.md)**: These indices focus on specific sectors or industries like technology, healthcare, or utilities. Examples include the [NASDAQ](../n/nasdaq.md)-100 [Technology Sector](../t/technology_sector.md) [Index](../i/index_instrument.md) and the S&P 500 Financials [Index](../i/index_instrument.md). -3. **Thematic Indices**: These focus on specific investment themes such as ESG (Environmental, Social, Governance), [blockchain](../b/blockchain_in_trading.md), or [artificial intelligence](../a/artificial_intelligence_in_trading.md). An example is the MSCI ACWI ESG Leaders [Index](../i/index.md). +3. **Thematic Indices**: These focus on specific investment themes such as ESG (Environmental, Social, Governance), [blockchain](../b/blockchain_in_trading.md), or [artificial intelligence](../a/artificial_intelligence_in_trading.md). An example is the MSCI ACWI ESG Leaders [Index](../i/index_instrument.md). -4. **Style Indices**: These indices separate [stocks](../s/stock.md) into categories like growth or [value](../v/value.md), based on specific stock characteristics. Examples are the Russell 1000 Growth [Index](../i/index.md) and the Russell 1000 [Value](../v/value.md) [Index](../i/index.md). +4. **Style Indices**: These indices separate [stocks](../s/stock.md) into categories like growth or [value](../v/value.md), based on specific stock characteristics. Examples are the Russell 1000 Growth [Index](../i/index_instrument.md) and the Russell 1000 [Value](../v/value.md) [Index](../i/index_instrument.md). -5. **[Fixed Income](../f/fixed_income.md) Indices**: These indices track the performance of bonds. Examples include the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index.md) and the J.P. Morgan Emerging Markets [Bond](../b/bond.md) [Index](../i/index.md). +5. **[Fixed Income](../f/fixed_income.md) Indices**: These indices track the performance of bonds. Examples include the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) and the J.P. Morgan Emerging Markets [Bond](../b/bond.md) [Index](../i/index_instrument.md). ## Construction Methodologies @@ -24,42 +24,42 @@ Indices are constructed through explicit methodologies that can generally be cla ### Price-Weighted Indices -In price-[weighted](../w/weighted.md) indices, each component stock contributes to the [index](../i/index.md) in proportion to its price per share. Hence, higher-priced [stocks](../s/stock.md) have a greater impact on the [index](../i/index.md)'s performance. The Dow Jones Industrial Average (DJIA) is a prominent example of a [price-weighted index](../p/price-weighted_index.md). +In price-[weighted](../w/weighted.md) indices, each component stock contributes to the [index](../i/index_instrument.md) in proportion to its price per share. Hence, higher-priced [stocks](../s/stock.md) have a greater impact on the [index](../i/index_instrument.md)'s performance. The Dow Jones Industrial Average (DJIA) is a prominent example of a [price-weighted index](../p/price-weighted_index.md). 1. **Advantages**: Easy to compute and understand. -2. **Disadvantages**: High-priced [stocks](../s/stock.md) disproportionately impact the [index](../i/index.md), which might not accurately represent [market](../m/market.md) trends. +2. **Disadvantages**: High-priced [stocks](../s/stock.md) disproportionately impact the [index](../i/index_instrument.md), which might not accurately represent [market](../m/market.md) trends. ### Market-Cap-Weighted Indices -[Market](../m/market.md)-cap-[weighted](../w/weighted.md) indices consider the [market capitalization](../m/market_capitalization.md) of constituent companies. The larger the [market](../m/market.md) cap, the more weight it has in the [index](../i/index.md). The S&P 500 and the MSCI World [Index](../i/index.md) are both examples of [market](../m/market.md)-cap-[weighted](../w/weighted.md) indices. +[Market](../m/market.md)-cap-[weighted](../w/weighted.md) indices consider the [market capitalization](../m/market_capitalization.md) of constituent companies. The larger the [market](../m/market.md) cap, the more weight it has in the [index](../i/index_instrument.md). The S&P 500 and the MSCI World [Index](../i/index_instrument.md) are both examples of [market](../m/market.md)-cap-[weighted](../w/weighted.md) indices. 1. **Advantages**: More representative of the overall [market](../m/market.md), as it takes into account the size of companies. -2. **Disadvantages**: Can be heavily influenced by the largest companies, potentially skewing the [index](../i/index.md). +2. **Disadvantages**: Can be heavily influenced by the largest companies, potentially skewing the [index](../i/index_instrument.md). ### Equal-Weighted Indices -In equal-[weighted](../w/weighted.md) indices, every stock has the same weight regardless of its [market](../m/market.md) cap or price. The S&P [Equal Weight](../e/equal_weight.md) [Index](../i/index.md), a variation of the S&P 500, is an example. +In equal-[weighted](../w/weighted.md) indices, every stock has the same weight regardless of its [market](../m/market.md) cap or price. The S&P [Equal Weight](../e/equal_weight.md) [Index](../i/index_instrument.md), a variation of the S&P 500, is an example. 1. **Advantages**: Minimal bias towards larger [stocks](../s/stock.md), potentially reflecting broader [market](../m/market.md) movements. 2. **Disadvantages**: Requires frequent [rebalancing](../r/rebalancing.md), higher [transaction costs](../t/transaction_costs.md). ### Factor-Based Indices -These indices select and weigh constituents based on one or more investment factors such as size, [value](../v/value.md), [momentum](../m/momentum.md), quality, or [volatility](../v/volatility.md). Examples include the MSCI USA [Momentum](../m/momentum.md) [Index](../i/index.md) and the [FTSE Russell](../f/ftse_russell.md) Quality [Factor](../f/factor.md) [Index](../i/index.md). +These indices select and weigh constituents based on one or more investment factors such as size, [value](../v/value.md), [momentum](../m/momentum.md), quality, or [volatility](../v/volatility.md). Examples include the MSCI USA [Momentum](../m/momentum.md) [Index](../i/index_instrument.md) and the [FTSE Russell](../f/ftse_russell.md) Quality [Factor](../f/factor.md) [Index](../i/index_instrument.md). 1. **Advantages**: Can deliver enhanced returns and reduced [risk](../r/risk.md) based on academic research. 2. **Disadvantages**: More complex and may not always perform as expected in all [market](../m/market.md) conditions. ### Composite Indices -Composite indices combine various types of assets or strategies. An example is the [Bloomberg](../b/bloomberg.md) [Commodity](../c/commodity.md) [Index](../i/index.md), which tracks the performance of [multiple](../m/multiple.md) [commodity futures](../c/commodity_futures.md) contracts. +Composite indices combine various types of assets or strategies. An example is the [Bloomberg](../b/bloomberg.md) [Commodity](../c/commodity.md) [Index](../i/index_instrument.md), which tracks the performance of [multiple](../m/multiple.md) [commodity futures](../c/commodity_futures.md) contracts. 1. **Advantages**: Diversified [risk](../r/risk.md) and exposure to [multiple](../m/multiple.md) [asset](../a/asset.md) classes. 2. **Disadvantages**: Complexity in construction and maintenance. ## Selection of Constituents -The selection of constituents is critical to constructing a meaningful [index](../i/index.md). The process involves qualitative and quantitative criteria. +The selection of constituents is critical to constructing a meaningful [index](../i/index_instrument.md). The process involves qualitative and quantitative criteria. ### Qualitative Criteria @@ -79,7 +79,7 @@ Indices are not static and require regular [rebalancing](../r/rebalancing.md) to ### Frequency of Rebalancing -[Rebalancing](../r/rebalancing.md) can occur on a monthly, quarterly, or annual [basis](../b/basis.md). The frequency depends on the type of [index](../i/index.md) and its specific methodology. +[Rebalancing](../r/rebalancing.md) can occur on a monthly, quarterly, or annual [basis](../b/basis.md). The frequency depends on the type of [index](../i/index_instrument.md) and its specific methodology. 1. **Monthly [Rebalancing](../r/rebalancing.md)**: Common in high-[turnover strategies](../t/turnover_strategies.md), like equal-[weighted](../w/weighted.md) indices. 2. **Quarterly and Annual [Rebalancing](../r/rebalancing.md)**: More common in broad [market](../m/market.md) indices and [factor](../f/factor.md)-based indices. @@ -88,7 +88,7 @@ Indices are not static and require regular [rebalancing](../r/rebalancing.md) to 1. **Review of Constituents**: Determine whether current constituents meet the criteria. 2. **Additions and Deletions**: Add new constituents that meet the criteria, and remove those that no longer qualify. -3. **Weight Adjustments**: Adjust weights as per the [index](../i/index.md) methodology. +3. **Weight Adjustments**: Adjust weights as per the [index](../i/index_instrument.md) methodology. ## Index Governance @@ -100,7 +100,7 @@ Most major indices have oversight committees consisting of [market](../m/market. ### Transparency and Documentation -1. **[Index](../i/index.md) Methodology Guides**: Detailed documents explaining the construction and maintenance of the [index](../i/index.md). +1. **[Index](../i/index_instrument.md) Methodology Guides**: Detailed documents explaining the construction and maintenance of the [index](../i/index_instrument.md). 2. **Public Announcements**: [Rebalancing](../r/rebalancing.md) announcements and methodology changes are usually made publicly available. ## Practical Applications of Indices @@ -113,7 +113,7 @@ Investment managers frequently use indices as benchmarks to measure the performa ### Creation of Investment Products -ETFs, mutual funds, and [index](../i/index.md) funds often aim to replicate the performance of an [index](../i/index.md). Examples include the SPDR S&P 500 ETF (tracking the S&P 500) and the [iShares](../i/ishares.md) MSCI Emerging Markets ETF (tracking the MSCI Emerging Markets [Index](../i/index.md)). +ETFs, mutual funds, and [index](../i/index_instrument.md) funds often aim to replicate the performance of an [index](../i/index_instrument.md). Examples include the SPDR S&P 500 ETF (tracking the S&P 500) and the [iShares](../i/ishares.md) MSCI Emerging Markets ETF (tracking the MSCI Emerging Markets [Index](../i/index_instrument.md)). Links to some major companies utilizing indices: - [S&P Dow Jones Indices](https://www.spglobal.com/spdji/en/) @@ -124,7 +124,7 @@ Links to some major companies utilizing indices: ### Derivatives and Structured Products -Indices are also the [underlying](../u/underlying.md) assets for a variety of [derivative](../d/derivative.md) contracts, including [futures](../f/futures.md), [options](../o/options.md), and swaps. Structured products like [index](../i/index.md)-linked notes also use indices as benchmarks. +Indices are also the [underlying](../u/underlying.md) assets for a variety of [derivative](../d/derivative.md) contracts, including [futures](../f/futures.md), [options](../o/options.md), and swaps. Structured products like [index](../i/index_instrument.md)-linked notes also use indices as benchmarks. ### Research and Analysis @@ -132,4 +132,4 @@ Indices provide valuable data for financial research and analysis. Scholars and ## Conclusion -[Index](../i/index.md) construction is a meticulous process that plays a vital role in [financial markets](../f/financial_market.md). From selecting the right methodology and criteria for constituent selection to regular [rebalancing](../r/rebalancing.md) and governance, several factors influence an [index](../i/index.md)'s effectiveness and reliability. Through its various applications, including benchmarking, creation of investment products, and research, indices serve as indispensable tools for investors, [fund](../f/fund.md) managers, and analysts globally. \ No newline at end of file +[Index](../i/index_instrument.md) construction is a meticulous process that plays a vital role in [financial markets](../f/financial_market.md). From selecting the right methodology and criteria for constituent selection to regular [rebalancing](../r/rebalancing.md) and governance, several factors influence an [index](../i/index_instrument.md)'s effectiveness and reliability. Through its various applications, including benchmarking, creation of investment products, and research, indices serve as indispensable tools for investors, [fund](../f/fund.md) managers, and analysts globally. \ No newline at end of file diff --git a/en/pedia/i/index_correlation_analysis.md b/en/pedia/i/index_correlation_analysis.md index 59ef4ecf..ae008dca 100644 --- a/en/pedia/i/index_correlation_analysis.md +++ b/en/pedia/i/index_correlation_analysis.md @@ -1,6 +1,6 @@ # Index Correlation Analysis -[Index](../i/index.md) [correlation analysis](../c/correlation_analysis.md) is a crucial tool in [financial markets](../f/financial_market.md) and investment strategies, particularly for those involved in [algorithmic trading](../a/algorithmic_trading.md) (also known as algo-trading). This type of analysis involves evaluating the statistical relationships between various [market](../m/market.md) indices to understand and forecast [market](../m/market.md) movements, optimize portfolio allocation, and mitigate risks. Essentially, [correlation analysis](../c/correlation_analysis.md) provides insights into how different indices move in relation to each other, which can be extremely valuable for decision-making processes in trading and [portfolio management](../p/portfolio_management.md). +[Index](../i/index_instrument.md) [correlation analysis](../c/correlation_analysis.md) is a crucial tool in [financial markets](../f/financial_market.md) and investment strategies, particularly for those involved in [algorithmic trading](../a/algorithmic_trading.md) (also known as algo-trading). This type of analysis involves evaluating the statistical relationships between various [market](../m/market.md) indices to understand and forecast [market](../m/market.md) movements, optimize portfolio allocation, and mitigate risks. Essentially, [correlation analysis](../c/correlation_analysis.md) provides insights into how different indices move in relation to each other, which can be extremely valuable for decision-making processes in trading and [portfolio management](../p/portfolio_management.md). ### What is Correlation? @@ -12,11 +12,11 @@ At its core, [correlation](../c/correlation.md) is a statistical measure that de ### Importance in Algo-Trading -[Algorithmic trading](../a/algorithmic_trading.md) relies heavily on [quantitative models](../q/quantitative_models.md) and data analysis to make trading decisions and execute trades at high speeds and volumes. In this context, [index](../i/index.md) [correlation analysis](../c/correlation_analysis.md) aids algo-trading in several ways: +[Algorithmic trading](../a/algorithmic_trading.md) relies heavily on [quantitative models](../q/quantitative_models.md) and data analysis to make trading decisions and execute trades at high speeds and volumes. In this context, [index](../i/index_instrument.md) [correlation analysis](../c/correlation_analysis.md) aids algo-trading in several ways: 1. **[Risk Management](../r/risk_management.md)**: Identifying correlated indices can help traders diversify their portfolios efficiently, reducing [systemic risk](../s/systemic_risk.md). 2. **[Hedging Strategies](../h/hedging_strategies.md)**: Traders can develop [hedging strategies](../h/hedging_strategies.md) by understanding negative correlations, using one position to [offset](../o/offset.md) potential losses in another. -3. **[Pairs Trading](../p/pairs_trading.md)**: A long-short [trading strategy](../t/trading_strategy.md) that capitalizes on the [correlation](../c/correlation.md) between two indices, where one [index](../i/index.md) is shorted, and the other is bought, based on relative performance predictions. +3. **[Pairs Trading](../p/pairs_trading.md)**: A long-short [trading strategy](../t/trading_strategy.md) that capitalizes on the [correlation](../c/correlation.md) between two indices, where one [index](../i/index_instrument.md) is shorted, and the other is bought, based on relative performance predictions. 4. **[Market](../m/market.md) Prediction**: Understanding historical correlations can aid in making more informed predictions about future [market](../m/market.md) movements. 5. **[Backtesting](../b/backtesting.md) Models**: [Correlation analysis](../c/correlation_analysis.md) is crucial for [backtesting](../b/backtesting.md) [predictive models](../p/predictive_models_in_trading.md) and strategies in algo-trading to ensure their reliability and robustness. @@ -31,7 +31,7 @@ Several methods are employed to analyze [correlation](../c/correlation.md) betwe ### Application of Tools and Software -Several advanced tools and [software platforms](../s/software_platforms_for_trading.md) support [index](../i/index.md) [correlation analysis](../c/correlation_analysis.md), often integrated into [algorithmic trading](../a/algorithmic_trading.md) systems. Commercial and [open](../o/open.md)-source platforms help traders and investors carry out complex [correlation](../c/correlation.md) analyses efficiently. +Several advanced tools and [software platforms](../s/software_platforms_for_trading.md) support [index](../i/index_instrument.md) [correlation analysis](../c/correlation_analysis.md), often integrated into [algorithmic trading](../a/algorithmic_trading.md) systems. Commercial and [open](../o/open.md)-source platforms help traders and investors carry out complex [correlation](../c/correlation.md) analyses efficiently. - **Python**: With libraries like Pandas, NumPy, and SciPy, Python is a powerful tool for running [correlation](../c/correlation.md) analyses. - **R**: Known for its statistical computing capabilities, R also offers packages like `cor.test` and `Hmisc` for [correlation analysis](../c/correlation_analysis.md). @@ -41,28 +41,28 @@ Several advanced tools and [software platforms](../s/software_platforms_for_trad #### BlackRock -BlackRock, one of the leading global [investment management](../i/investment_management.md) firms, applies sophisticated [index](../i/index.md) [correlation analysis](../c/correlation_analysis.md) as part of its [risk management](../r/risk_management.md) and [portfolio optimization](../p/portfolio_optimization.md) strategies. Their Aladdin platform leverages [big data](../b/big_data_in_trading.md) and machine learning to assess correlations and make informed investment decisions. +BlackRock, one of the leading global [investment management](../i/investment_management.md) firms, applies sophisticated [index](../i/index_instrument.md) [correlation analysis](../c/correlation_analysis.md) as part of its [risk management](../r/risk_management.md) and [portfolio optimization](../p/portfolio_optimization.md) strategies. Their Aladdin platform leverages [big data](../b/big_data_in_trading.md) and machine learning to assess correlations and make informed investment decisions. [BlackRock](https://www.blackrock.com/us/individual) #### Renaissance Technologies -Renaissance Technologies, a pioneer in [quantitative trading](../q/quantitative_trading.md), utilizes extensive statistical analysis, including [index](../i/index.md) [correlation](../c/correlation.md), to drive its Medallion [Fund](../f/fund.md)'s algorithmic strategies. [Correlation analysis](../c/correlation_analysis.md) helps them identify [market](../m/market.md) patterns and predict price movements accurately. +Renaissance Technologies, a pioneer in [quantitative trading](../q/quantitative_trading.md), utilizes extensive statistical analysis, including [index](../i/index_instrument.md) [correlation](../c/correlation.md), to drive its Medallion [Fund](../f/fund.md)'s algorithmic strategies. [Correlation analysis](../c/correlation_analysis.md) helps them identify [market](../m/market.md) patterns and predict price movements accurately. [Renaissance Technologies](https://www.rentec.com/) ### Challenges and Considerations -While [index](../i/index.md) [correlation analysis](../c/correlation_analysis.md) offers numerous advantages, there are several challenges and considerations to bear in mind: +While [index](../i/index_instrument.md) [correlation analysis](../c/correlation_analysis.md) offers numerous advantages, there are several challenges and considerations to bear in mind: - **Dynamic Nature of Markets**: Correlations can change over time due to various macroeconomic and microeconomic factors. Thus, it's critical to use [rolling correlation](../r/rolling_correlation.md) methods to capture these dynamic shifts. - **[Overfitting](../o/overfitting.md)**: Relying heavily on historical correlations without considering future uncertainties can lead to [overfitting](../o/overfitting.md), where the model performs well on past data but poorly on future data. - **Non-linear Relationships**: Traditional [correlation](../c/correlation.md) measures often assume linear relationships, which may not capture more complex, non-linear interactions between indices. -- **[Multicollinearity](../m/multicollinearity_in_trading.md)**: In portfolios consisting of [multiple](../m/multiple.md) indices, high correlations among different pairs can cause [multicollinearity](../m/multicollinearity_in_trading.md) issues, complicating the interpretation of individual [index](../i/index.md) influences. +- **[Multicollinearity](../m/multicollinearity_in_trading.md)**: In portfolios consisting of [multiple](../m/multiple.md) indices, high correlations among different pairs can cause [multicollinearity](../m/multicollinearity_in_trading.md) issues, complicating the interpretation of individual [index](../i/index_instrument.md) influences. ### Future Trends in Index Correlation Analysis -As technology and [financial markets](../f/financial_market.md) continue to evolve, so too do the methods and applications of [index](../i/index.md) [correlation analysis](../c/correlation_analysis.md). Future trends may include: +As technology and [financial markets](../f/financial_market.md) continue to evolve, so too do the methods and applications of [index](../i/index_instrument.md) [correlation analysis](../c/correlation_analysis.md). Future trends may include: - **Machine Learning and AI**: Leveraging advanced machine learning techniques to capture more complex relationships and predict correlations more accurately. - **[Big Data](../b/big_data_in_trading.md)**: Utilizing vast amounts of data from various sources, including [social media](../s/social_media.md), news, and [alternative data](../a/alternative_data.md), to enhance [correlation analysis](../c/correlation_analysis.md). @@ -70,4 +70,4 @@ As technology and [financial markets](../f/financial_market.md) continue to evol ### Conclusion -[Index](../i/index.md) [correlation analysis](../c/correlation_analysis.md) is a cornerstone of modern [financial analysis](../f/financial_analysis.md) and algo-[trading strategies](../t/trading_strategies.md). By providing insights into how different indices move relative to each other, it enables traders and investors to make more informed decisions, manage risks, and optimize their portfolios. Given its importance and widespread application, mastering [correlation analysis](../c/correlation_analysis.md) is essential for anyone looking to succeed in the fast-paced world of [algorithmic trading](../a/algorithmic_trading.md). +[Index](../i/index_instrument.md) [correlation analysis](../c/correlation_analysis.md) is a cornerstone of modern [financial analysis](../f/financial_analysis.md) and algo-[trading strategies](../t/trading_strategies.md). By providing insights into how different indices move relative to each other, it enables traders and investors to make more informed decisions, manage risks, and optimize their portfolios. Given its importance and widespread application, mastering [correlation analysis](../c/correlation_analysis.md) is essential for anyone looking to succeed in the fast-paced world of [algorithmic trading](../a/algorithmic_trading.md). diff --git a/en/pedia/i/index_fund.md b/en/pedia/i/index_fund.md index 33fc8ce6..9145c958 100644 --- a/en/pedia/i/index_fund.md +++ b/en/pedia/i/index_fund.md @@ -1,13 +1,13 @@ # Index Fund ## Introduction -An [index](../i/index.md) [fund](../f/fund.md) is a type of [mutual fund](../m/mutual_fund.md) or [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF) that seeks to replicate the performance of a specific [index](../i/index.md), such as the S&P 500, [Nikkei](../n/nikkei.md) 225, or FTSE 100. By mirroring an [index](../i/index.md), the [fund](../f/fund.md) aims to provide broad [market exposure](../m/market_exposure.md), low operating expenses, and low [portfolio turnover](../p/portfolio_turnover.md). [Index](../i/index.md) funds are highly popular among investors due to their simplicity, cost-effectiveness, and passive management style. +An [index](../i/index_instrument.md) [fund](../f/fund.md) is a type of [mutual fund](../m/mutual_fund.md) or [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF) that seeks to replicate the performance of a specific [index](../i/index_instrument.md), such as the S&P 500, [Nikkei](../n/nikkei.md) 225, or FTSE 100. By mirroring an [index](../i/index_instrument.md), the [fund](../f/fund.md) aims to provide broad [market exposure](../m/market_exposure.md), low operating expenses, and low [portfolio turnover](../p/portfolio_turnover.md). [Index](../i/index_instrument.md) funds are highly popular among investors due to their simplicity, cost-effectiveness, and passive management style. ## History and Concept -The inception of the [index](../i/index.md) [fund](../f/fund.md) dates back to the 1970s when John C. Bogle, the founder of The Vanguard Group, established the first [index](../i/index.md) [mutual fund](../m/mutual_fund.md) called the Vanguard 500 [Index](../i/index.md) [Fund](../f/fund.md). Bogle's belief was that, over the long term, actively managed funds, with their higher fees and frequent trading, typically [underperform](../u/underperform.md) the [market](../m/market.md) averages. This pioneering move laid the groundwork for [passive investment strategies](../p/passive_investment_strategies.md) and bolstered the growth of [index investing](../i/index_investing.md). +The inception of the [index](../i/index_instrument.md) [fund](../f/fund.md) dates back to the 1970s when John C. Bogle, the founder of The Vanguard Group, established the first [index](../i/index_instrument.md) [mutual fund](../m/mutual_fund.md) called the Vanguard 500 [Index](../i/index_instrument.md) [Fund](../f/fund.md). Bogle's belief was that, over the long term, actively managed funds, with their higher fees and frequent trading, typically [underperform](../u/underperform.md) the [market](../m/market.md) averages. This pioneering move laid the groundwork for [passive investment strategies](../p/passive_investment_strategies.md) and bolstered the growth of [index investing](../i/index_investing.md). ## Types of Index Funds -[Index](../i/index.md) funds can be classified by the type of indexes they track. Some of the most common types include: +[Index](../i/index_instrument.md) funds can be classified by the type of indexes they track. Some of the most common types include: ### Market Capitalization Index Funds These funds track indexes based on the [market capitalization](../m/market_capitalization.md) of companies. The S&P 500 is a prime example, which comprises 500 of the largest companies [listed](../l/listed.md) on U.S. exchanges. @@ -16,62 +16,62 @@ These funds track indexes based on the [market capitalization](../m/market_capit These funds focus on a specific sector of the [economy](../e/economy.md), such as technology, healthcare, or energy. For instance, the Technology Select Sector SPDR [Fund](../f/fund.md) aims to replicate the performance of the [technology sector](../t/technology_sector.md) in the S&P 500. ### International Index Funds -These track global or regional indexes, allowing investors to [gain](../g/gain.md) exposure to non-domestic markets. Examples include the MSCI [EAFE Index](../e/eafe_index.md), which covers developed markets outside North America, and the FTSE All-World ex-US [Index](../i/index.md). +These track global or regional indexes, allowing investors to [gain](../g/gain.md) exposure to non-domestic markets. Examples include the MSCI [EAFE Index](../e/eafe_index.md), which covers developed markets outside North America, and the FTSE All-World ex-US [Index](../i/index_instrument.md). ### Bond Index Funds -These funds replicate the performance of [bond](../b/bond.md) indexes, providing investors with exposure to the fixed-[income](../i/income.md) [market](../m/market.md). Examples include the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index.md). +These funds replicate the performance of [bond](../b/bond.md) indexes, providing investors with exposure to the fixed-[income](../i/income.md) [market](../m/market.md). Examples include the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md). ## Key Features and Advantages ### Passive Management -[Index](../i/index.md) funds are passively managed, meaning [fund](../f/fund.md) managers seek to replicate an [index](../i/index.md) rather than actively picking [stocks](../s/stock.md) or bonds. This strategy reduces management fees and aligns the [fund](../f/fund.md)'s performance closely with the tracked [index](../i/index.md). +[Index](../i/index_instrument.md) funds are passively managed, meaning [fund](../f/fund.md) managers seek to replicate an [index](../i/index_instrument.md) rather than actively picking [stocks](../s/stock.md) or bonds. This strategy reduces management fees and aligns the [fund](../f/fund.md)'s performance closely with the tracked [index](../i/index_instrument.md). ### Low Fees -Due to their passive nature, [index](../i/index.md) funds have lower [expense](../e/expense.md) ratios compared to actively managed funds. Lower fees translate to higher net returns for investors over the long term. +Due to their passive nature, [index](../i/index_instrument.md) funds have lower [expense](../e/expense.md) ratios compared to actively managed funds. Lower fees translate to higher net returns for investors over the long term. ### Broad Diversification -By replicating an [index](../i/index.md), these funds [offer](../o/offer.md) instant [diversification](../d/diversification.md) across a wide array of securities. This [diversification](../d/diversification.md) reduces individual [security](../s/security.md) [risk](../r/risk.md) and aligns the [investor](../i/investor.md)'s portfolio with the broader [market](../m/market.md). +By replicating an [index](../i/index_instrument.md), these funds [offer](../o/offer.md) instant [diversification](../d/diversification.md) across a wide array of securities. This [diversification](../d/diversification.md) reduces individual [security](../s/security.md) [risk](../r/risk.md) and aligns the [investor](../i/investor.md)'s portfolio with the broader [market](../m/market.md). ### Tax Efficiency Passive management often leads to lower [portfolio turnover](../p/portfolio_turnover.md), which minimizes [capital](../c/capital.md) gains distributions and, consequently, tax liabilities for investors. ## Key Players and Products ### The Vanguard Group -The Vanguard Group is one of the most prominent providers of [index](../i/index.md) funds. Their product lineup includes the Vanguard 500 [Index](../i/index.md) [Fund](../f/fund.md), Vanguard Total Stock [Market Index](../m/market_index.md) [Fund](../f/fund.md), and Vanguard Total [Bond](../b/bond.md) [Market Index](../m/market_index.md) [Fund](../f/fund.md). Visit their website for more information: [Vanguard](https://www.vanguard.com). +The Vanguard Group is one of the most prominent providers of [index](../i/index_instrument.md) funds. Their product lineup includes the Vanguard 500 [Index](../i/index_instrument.md) [Fund](../f/fund.md), Vanguard Total Stock [Market Index](../m/market_index.md) [Fund](../f/fund.md), and Vanguard Total [Bond](../b/bond.md) [Market Index](../m/market_index.md) [Fund](../f/fund.md). Visit their website for more information: [Vanguard](https://www.vanguard.com). ### BlackRock (iShares) -BlackRock, through its [iShares](../i/ishares.md) [product line](../p/product_line.md), offers a [wide variety](../w/wide_variety.md) of [index](../i/index.md) ETFs. Popular funds include the [iShares](../i/ishares.md) Core S&P 500 ETF, [iShares](../i/ishares.md) MSCI Emerging Markets ETF, and [iShares](../i/ishares.md) [U.S. Treasury](../u/u.s._treasury.md) [Bond ETF](../b/bond_etf.md). [Check](../c/check.md) out their offerings here: [BlackRock iShares](https://www.ishares.com). +BlackRock, through its [iShares](../i/ishares.md) [product line](../p/product_line.md), offers a [wide variety](../w/wide_variety.md) of [index](../i/index_instrument.md) ETFs. Popular funds include the [iShares](../i/ishares.md) Core S&P 500 ETF, [iShares](../i/ishares.md) MSCI Emerging Markets ETF, and [iShares](../i/ishares.md) [U.S. Treasury](../u/u.s._treasury.md) [Bond ETF](../b/bond_etf.md). [Check](../c/check.md) out their offerings here: [BlackRock iShares](https://www.ishares.com). ### Fidelity Investments -Fidelity offers several [index](../i/index.md) funds and ETFs with competitive [expense](../e/expense.md) ratios. Examples include the Fidelity 500 [Index](../i/index.md) [Fund](../f/fund.md) and Fidelity Zero Total [Market Index](../m/market_index.md) [Fund](../f/fund.md). More details can be found on their website: [Fidelity Investments](https://www.fidelity.com). +Fidelity offers several [index](../i/index_instrument.md) funds and ETFs with competitive [expense](../e/expense.md) ratios. Examples include the Fidelity 500 [Index](../i/index_instrument.md) [Fund](../f/fund.md) and Fidelity Zero Total [Market Index](../m/market_index.md) [Fund](../f/fund.md). More details can be found on their website: [Fidelity Investments](https://www.fidelity.com). ### Charles Schwab -[Charles Schwab](../c/charles_schwab.md) provides a [range](../r/range.md) of [index](../i/index.md) funds and ETFs targeting different [market](../m/market.md) segments. Their Schwab S&P 500 [Index](../i/index.md) [Fund](../f/fund.md) and Schwab International [Index](../i/index.md) [Fund](../f/fund.md) are particularly well-regarded. For more information, visit: [Charles Schwab](https://www.schwab.com). +[Charles Schwab](../c/charles_schwab.md) provides a [range](../r/range.md) of [index](../i/index_instrument.md) funds and ETFs targeting different [market](../m/market.md) segments. Their Schwab S&P 500 [Index](../i/index_instrument.md) [Fund](../f/fund.md) and Schwab International [Index](../i/index_instrument.md) [Fund](../f/fund.md) are particularly well-regarded. For more information, visit: [Charles Schwab](https://www.schwab.com). ## How They Work ### Replication Strategies -[Index](../i/index.md) funds use different strategies to replicate the performance of their [benchmark](../b/benchmark.md) indexes: -- **Full Replication**: The [fund](../f/fund.md) buys all the securities in the [index](../i/index.md) in the same proportions. -- **[Sampling](../s/sampling.md)**: The [fund](../f/fund.md) buys a [representative sample](../r/representative_sample.md) of securities to closely match the [index](../i/index.md)'s characteristics. -- **Synthetic Replication**: The [fund](../f/fund.md) uses [derivatives](../d/derivatives.md) like swaps to achieve the same [return](../r/return.md) as the [index](../i/index.md). +[Index](../i/index_instrument.md) funds use different strategies to replicate the performance of their [benchmark](../b/benchmark.md) indexes: +- **Full Replication**: The [fund](../f/fund.md) buys all the securities in the [index](../i/index_instrument.md) in the same proportions. +- **[Sampling](../s/sampling.md)**: The [fund](../f/fund.md) buys a [representative sample](../r/representative_sample.md) of securities to closely match the [index](../i/index_instrument.md)'s characteristics. +- **Synthetic Replication**: The [fund](../f/fund.md) uses [derivatives](../d/derivatives.md) like swaps to achieve the same [return](../r/return.md) as the [index](../i/index_instrument.md). ### Rebalancing -Indexes periodically adjust their components based on specific criteria. [Index](../i/index.md) funds must adjust their [holdings](../h/holdings.md) accordingly to maintain alignment. This process, known as [rebalancing](../r/rebalancing.md), ensures that the [fund](../f/fund.md) continues to reflect the [underlying](../u/underlying.md) [index](../i/index.md). +Indexes periodically adjust their components based on specific criteria. [Index](../i/index_instrument.md) funds must adjust their [holdings](../h/holdings.md) accordingly to maintain alignment. This process, known as [rebalancing](../r/rebalancing.md), ensures that the [fund](../f/fund.md) continues to reflect the [underlying](../u/underlying.md) [index](../i/index_instrument.md). ### Dividends and Interest -[Index](../i/index.md) funds pass on the dividends announced by their [underlying](../u/underlying.md) securities to the investors. In the case of [bond](../b/bond.md) [index](../i/index.md) funds, the [interest](../i/interest.md) received from bonds is similarly distributed. +[Index](../i/index_instrument.md) funds pass on the dividends announced by their [underlying](../u/underlying.md) securities to the investors. In the case of [bond](../b/bond.md) [index](../i/index_instrument.md) funds, the [interest](../i/interest.md) received from bonds is similarly distributed. ## Performance and Risk ### Tracking Error -[Tracking error](../t/tracking_error.md) measures the discrepancy between the [index](../i/index.md) [fund](../f/fund.md)'s performance and the performance of the tracked [index](../i/index.md). Lower tracking errors indicate better [index](../i/index.md) [fund](../f/fund.md) performance in mirroring the [index](../i/index.md), while higher tracking errors suggest deviations. +[Tracking error](../t/tracking_error.md) measures the discrepancy between the [index](../i/index_instrument.md) [fund](../f/fund.md)'s performance and the performance of the tracked [index](../i/index_instrument.md). Lower tracking errors indicate better [index](../i/index_instrument.md) [fund](../f/fund.md) performance in mirroring the [index](../i/index_instrument.md), while higher tracking errors suggest deviations. ### Market Risk -Since [index](../i/index.md) funds aim to replicate the [market](../m/market.md) or specific sectors, they are subject to the same risks as those segments. For instance, a [fund](../f/fund.md) tracking the S&P 500 [will](../w/will.md) [rise and fall](../r/rise_fall.md) with the U.S. [stock market](../s/stock_market.md). Sector-specific funds [will](../w/will.md) be more volatile, reflecting the performance of that particular sector. +Since [index](../i/index_instrument.md) funds aim to replicate the [market](../m/market.md) or specific sectors, they are subject to the same risks as those segments. For instance, a [fund](../f/fund.md) tracking the S&P 500 [will](../w/will.md) [rise and fall](../r/rise_fall.md) with the U.S. [stock market](../s/stock_market.md). Sector-specific funds [will](../w/will.md) be more volatile, reflecting the performance of that particular sector. ### Inflation Risk -[Bond](../b/bond.md) [index](../i/index.md) funds are particularly vulnerable to [inflation](../i/inflation.md) [risk](../r/risk.md), as rising [inflation](../i/inflation.md) erodes the [purchasing power](../p/purchasing_power.md) of fixed-[income](../i/income.md) payments. +[Bond](../b/bond.md) [index](../i/index_instrument.md) funds are particularly vulnerable to [inflation](../i/inflation.md) [risk](../r/risk.md), as rising [inflation](../i/inflation.md) erodes the [purchasing power](../p/purchasing_power.md) of fixed-[income](../i/income.md) payments. ## Conclusion -[Index](../i/index.md) funds [offer](../o/offer.md) a simple, cost-effective way to achieve diversified, long-term investment exposure. They are ideal for investors looking to capture the broad [market](../m/market.md) returns without incurring high fees or engaging in complex [security selection](../s/security_selection.md) processes. Their key benefits lie in passive management, low fees, and broad [diversification](../d/diversification.md). +[Index](../i/index_instrument.md) funds [offer](../o/offer.md) a simple, cost-effective way to achieve diversified, long-term investment exposure. They are ideal for investors looking to capture the broad [market](../m/market.md) returns without incurring high fees or engaging in complex [security selection](../s/security_selection.md) processes. Their key benefits lie in passive management, low fees, and broad [diversification](../d/diversification.md). For more detailed insights and up-to-date information, always refer to the managing companies' official websites and regulatory filings. For example, visit: - [Vanguard](https://www.vanguard.com) diff --git a/en/pedia/i/index_fund_strategies.md b/en/pedia/i/index_fund_strategies.md index f255d023..1b638102 100644 --- a/en/pedia/i/index_fund_strategies.md +++ b/en/pedia/i/index_fund_strategies.md @@ -1,26 +1,26 @@ # Index Fund Strategies -[Investing](../i/investing.md) in [index](../i/index.md) funds is one of the most popular strategies among both retail and institutional investors due to its simplicity, cost-effectiveness, and historical performance. [Index](../i/index.md) funds aim to replicate the performance of a specific [index](../i/index.md), such as the S&P 500, by holding a portfolio of assets that closely match the components of that [index](../i/index.md). This guide provides an in-depth exploration of various [index fund](../i/index_fund.md) strategies, their benefits, historical context, and key considerations. +[Investing](../i/investing.md) in [index](../i/index_instrument.md) funds is one of the most popular strategies among both retail and institutional investors due to its simplicity, cost-effectiveness, and historical performance. [Index](../i/index_instrument.md) funds aim to replicate the performance of a specific [index](../i/index_instrument.md), such as the S&P 500, by holding a portfolio of assets that closely match the components of that [index](../i/index_instrument.md). This guide provides an in-depth exploration of various [index fund](../i/index_fund.md) strategies, their benefits, historical context, and key considerations. ## Introduction to Index Funds ### What is an Index Fund? -An [index fund](../i/index_fund.md) is a type of [mutual fund](../m/mutual_fund.md) or [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF) designed to follow specific rules so that the [fund](../f/fund.md) can track a specified basket of [underlying](../u/underlying.md) investments. The rules of the [index](../i/index.md) [will](../w/will.md) mimic the specified [index](../i/index.md) in terms of its performance and composition. +An [index fund](../i/index_fund.md) is a type of [mutual fund](../m/mutual_fund.md) or [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF) designed to follow specific rules so that the [fund](../f/fund.md) can track a specified basket of [underlying](../u/underlying.md) investments. The rules of the [index](../i/index_instrument.md) [will](../w/will.md) mimic the specified [index](../i/index_instrument.md) in terms of its performance and composition. ### History The first [index fund](../i/index_fund.md) was created by Vanguard's founder, [John Bogle](../j/john_bogle.md), in 1976. Named the Vanguard 500 [Index Fund](../i/index_fund.md), it was the first [fund](../f/fund.md) available to retail investors seeking to invest in a broad stock [market index](../m/market_index.md). ### Types of Index Funds -[Index](../i/index.md) funds can be based on a variety of indices: +[Index](../i/index_instrument.md) funds can be based on a variety of indices: - [Stock market](../s/stock_market.md) indices (e.g., S&P 500, Dow Jones Industrial Average) -- [Bond market](../b/bond_market.md) indices (e.g., [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index.md)) -- Sector-specific indices (e.g., [Nasdaq](../n/nasdaq.md) Biotechnology [Index](../i/index.md)) +- [Bond market](../b/bond_market.md) indices (e.g., [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md)) +- Sector-specific indices (e.g., [Nasdaq](../n/nasdaq.md) Biotechnology [Index](../i/index_instrument.md)) - International indices (e.g., MSCI [EAFE Index](../e/eafe_index.md)) ## Key Strategies for Index Fund Investment ### Passive Investing -[Passive investing](../p/passive_investing.md) is the core strategy behind [index](../i/index.md) funds. Instead of trying to beat the [market](../m/market.md), passive investors aim to replicate the [market](../m/market.md)'s performance. Here’s how it's done: +[Passive investing](../p/passive_investing.md) is the core strategy behind [index](../i/index_instrument.md) funds. Instead of trying to beat the [market](../m/market.md), passive investors aim to replicate the [market](../m/market.md)'s performance. Here’s how it's done: #### Buy and Hold This involves purchasing an [index fund](../i/index_fund.md) and holding it over the long term, regardless of [market](../m/market.md) fluctuations. @@ -49,7 +49,7 @@ This involves purchasing an [index fund](../i/index_fund.md) and holding it over [Smart Beta](../s/smart_beta.md) strategies aim to enhance returns, improve [diversification](../d/diversification.md), and reduce [risk](../r/risk.md) by following alternative weighting schemes rather than traditional [market capitalization](../m/market_capitalization.md). #### Equal-Weight -Each stock in the [index](../i/index.md) is given an [equal weight](../e/equal_weight.md), rather than weighting based on [market capitalization](../m/market_capitalization.md). +Each stock in the [index](../i/index_instrument.md) is given an [equal weight](../e/equal_weight.md), rather than weighting based on [market capitalization](../m/market_capitalization.md). - **Pros:** Reduces concentration [risk](../r/risk.md). - **Cons:** Higher [transaction costs](../t/transaction_costs.md) due to frequent [rebalancing](../r/rebalancing.md). @@ -59,7 +59,7 @@ Each stock in the [index](../i/index.md) is given an [equal weight](../e/equal_w - **Cons:** Complexity and potential for higher [turnover](../t/turnover.md) rates. ### Thematic Investing -Thematic [index](../i/index.md) funds focus on long-term trends or themes such as technology, clean energy, or [demographics](../d/demographics.md). +Thematic [index](../i/index_instrument.md) funds focus on long-term trends or themes such as technology, clean energy, or [demographics](../d/demographics.md). #### Example: Technology Index Funds Funds that invest in technology companies, often tied to indices like the [Nasdaq](../n/nasdaq.md)-100. @@ -67,49 +67,49 @@ Funds that invest in technology companies, often tied to indices like the [Nasda - **Cons:** Higher [risk](../r/risk.md) and [volatility](../v/volatility.md). #### Example: ESG Investing -Environmental, Social, and Governance (ESG) [index](../i/index.md) funds invest in companies with strong ESG practices. +Environmental, Social, and Governance (ESG) [index](../i/index_instrument.md) funds invest in companies with strong ESG practices. - **Pros:** Aligns investments with personal values, potential for long-term growth. - **Cons:** May exclude high-performing companies due to ESG criteria. ## Benefits of Index Funds ### Diversification -[Index](../i/index.md) funds provide broad [market exposure](../m/market_exposure.md) and [diversification](../d/diversification.md), which can reduce [risk](../r/risk.md) compared to [investing](../i/investing.md) in individual [stocks](../s/stock.md). +[Index](../i/index_instrument.md) funds provide broad [market exposure](../m/market_exposure.md) and [diversification](../d/diversification.md), which can reduce [risk](../r/risk.md) compared to [investing](../i/investing.md) in individual [stocks](../s/stock.md). ### Low Costs -[Index](../i/index.md) funds typically have lower [expense](../e/expense.md) ratios than actively managed funds. This is due to lower management fees and [transaction costs](../t/transaction_costs.md). +[Index](../i/index_instrument.md) funds typically have lower [expense](../e/expense.md) ratios than actively managed funds. This is due to lower management fees and [transaction costs](../t/transaction_costs.md). ### Transparency -The [holdings](../h/holdings.md) of an [index fund](../i/index_fund.md) are usually disclosed regularly and are more predictable since they aim to mirror a specific [index](../i/index.md). +The [holdings](../h/holdings.md) of an [index fund](../i/index_fund.md) are usually disclosed regularly and are more predictable since they aim to mirror a specific [index](../i/index_instrument.md). ### Performance -Historically, many [index](../i/index.md) funds have outperformed actively managed funds over long periods due to lower costs and consistent returns. +Historically, many [index](../i/index_instrument.md) funds have outperformed actively managed funds over long periods due to lower costs and consistent returns. ## Challenges and Risks ### Market Risk -[Index](../i/index.md) funds are subject to [market risk](../m/market_risk.md). If the [index](../i/index.md) performs poorly, the [fund](../f/fund.md) [will](../w/will.md) also perform poorly. +[Index](../i/index_instrument.md) funds are subject to [market risk](../m/market_risk.md). If the [index](../i/index_instrument.md) performs poorly, the [fund](../f/fund.md) [will](../w/will.md) also perform poorly. ### Lack of Flexibility -[Index](../i/index.md) funds strictly follow the [index](../i/index.md), [offering](../o/offering.md) no room for flexibility in terms of [asset](../a/asset.md) selection or allocation. +[Index](../i/index_instrument.md) funds strictly follow the [index](../i/index_instrument.md), [offering](../o/offering.md) no room for flexibility in terms of [asset](../a/asset.md) selection or allocation. ### Tracking Error -While [index](../i/index.md) funds aim to replicate an [index](../i/index.md), there can be slight differences, known as tracking errors, due to various factors like fees and timing of trades. +While [index](../i/index_instrument.md) funds aim to replicate an [index](../i/index_instrument.md), there can be slight differences, known as tracking errors, due to various factors like fees and timing of trades. ## Major Players in the Index Fund Market ### Vanguard -Vanguard is widely recognized as the pioneer in [index fund](../i/index_fund.md) [investing](../i/investing.md). [Vanguard](https://www.vanguard.com) offers a wide [range](../r/range.md) of [index](../i/index.md) funds covering various [asset](../a/asset.md) classes and markets. +Vanguard is widely recognized as the pioneer in [index fund](../i/index_fund.md) [investing](../i/investing.md). [Vanguard](https://www.vanguard.com) offers a wide [range](../r/range.md) of [index](../i/index_instrument.md) funds covering various [asset](../a/asset.md) classes and markets. ### BlackRock -BlackRock is a leading global [asset](../a/asset.md) manager with its [iShares](../i/ishares.md) brand, which is among the largest issuers of ETFs. [BlackRock's iShares](https://www.ishares.com) offerings include numerous [index](../i/index.md) funds. +BlackRock is a leading global [asset](../a/asset.md) manager with its [iShares](../i/ishares.md) brand, which is among the largest issuers of ETFs. [BlackRock's iShares](https://www.ishares.com) offerings include numerous [index](../i/index_instrument.md) funds. ### Fidelity -Fidelity is another major player known for competitive [index](../i/index.md) funds with low [expense](../e/expense.md) ratios. [Fidelity](https://www.fidelity.com) offers a variety of [index](../i/index.md) funds and ETFs. +Fidelity is another major player known for competitive [index](../i/index_instrument.md) funds with low [expense](../e/expense.md) ratios. [Fidelity](https://www.fidelity.com) offers a variety of [index](../i/index_instrument.md) funds and ETFs. ### Charles Schwab -[Charles Schwab](../c/charles_schwab.md) provides a broad suite of [index](../i/index.md) funds and ETFs with minimal fees, making it a popular choice among cost-conscious investors. [Charles Schwab](https://www.schwab.com) is well-regarded in the [index fund](../i/index_fund.md) space. +[Charles Schwab](../c/charles_schwab.md) provides a broad suite of [index](../i/index_instrument.md) funds and ETFs with minimal fees, making it a popular choice among cost-conscious investors. [Charles Schwab](https://www.schwab.com) is well-regarded in the [index fund](../i/index_fund.md) space. ## Conclusion -[Index fund](../i/index_fund.md) [investing](../i/investing.md) is a widely respected and effective approach to achieving long-term investment goals. Whether through [passive investing](../p/passive_investing.md), [sector rotation](../s/sector_rotation.md), [smart beta](../s/smart_beta.md) strategies, or [thematic investing](../t/thematic_investing.md), the variety of [index fund](../i/index_fund.md) strategies allows investors to tailor their portfolios to meet their specific needs and [risk tolerance](../r/risk_tolerance.md). The benefits of [diversification](../d/diversification.md), low costs, and [transparency](../t/transparency.md) make [index](../i/index.md) funds an appealing choice for many investors. As with any [investment strategy](../i/investment_strategy.md), it's crucial to remain informed and consider the potential risks and challenges. \ No newline at end of file +[Index fund](../i/index_fund.md) [investing](../i/investing.md) is a widely respected and effective approach to achieving long-term investment goals. Whether through [passive investing](../p/passive_investing.md), [sector rotation](../s/sector_rotation.md), [smart beta](../s/smart_beta.md) strategies, or [thematic investing](../t/thematic_investing.md), the variety of [index fund](../i/index_fund.md) strategies allows investors to tailor their portfolios to meet their specific needs and [risk tolerance](../r/risk_tolerance.md). The benefits of [diversification](../d/diversification.md), low costs, and [transparency](../t/transparency.md) make [index](../i/index_instrument.md) funds an appealing choice for many investors. As with any [investment strategy](../i/investment_strategy.md), it's crucial to remain informed and consider the potential risks and challenges. \ No newline at end of file diff --git a/en/pedia/i/index_futures.md b/en/pedia/i/index_futures.md index 75bd792f..96096116 100644 --- a/en/pedia/i/index_futures.md +++ b/en/pedia/i/index_futures.md @@ -1,6 +1,6 @@ # Index Futures -[Index](../i/index.md) [futures](../f/futures.md) are [futures contracts](../f/futures_contracts.md) where the [underlying asset](../u/underlying_asset.md) is a stock [index](../i/index.md), such as the S&P 500 or the [NASDAQ](../n/nasdaq.md)-100. These financial [derivatives](../d/derivatives.md) are agreements to buy or sell the [value](../v/value.md) of an [underlying](../u/underlying.md) stock [index](../i/index.md) at a predetermined future date and price. +[Index](../i/index_instrument.md) [futures](../f/futures.md) are [futures contracts](../f/futures_contracts.md) where the [underlying asset](../u/underlying_asset.md) is a stock [index](../i/index_instrument.md), such as the S&P 500 or the [NASDAQ](../n/nasdaq.md)-100. These financial [derivatives](../d/derivatives.md) are agreements to buy or sell the [value](../v/value.md) of an [underlying](../u/underlying.md) stock [index](../i/index_instrument.md) at a predetermined future date and price. ## Definition and Basic Concepts @@ -10,61 +10,61 @@ A [futures contract](../f/futures_contract.md) is a standardized legal agreement ### What is a Stock Index? -A stock [index](../i/index.md) measures the [value](../v/value.md) of a section of the [stock market](../s/stock_market.md). It is computed from the prices of selected [stocks](../s/stock.md) (typically, a [weighted average](../w/weighted_average.md)). Examples include the S&P 500, which measures the stock performance of 500 large companies [listed](../l/listed.md) on stock exchanges in the United States. +A stock [index](../i/index_instrument.md) measures the [value](../v/value.md) of a section of the [stock market](../s/stock_market.md). It is computed from the prices of selected [stocks](../s/stock.md) (typically, a [weighted average](../w/weighted_average.md)). Examples include the S&P 500, which measures the stock performance of 500 large companies [listed](../l/listed.md) on stock exchanges in the United States. ## How Index Futures Work ### Contract Specifications -[Index](../i/index.md) [futures](../f/futures.md) are typically standardized in terms of contract size, expiration dates, and price increments, which are determined by the [exchange](../e/exchange.md) on which they [trade](../t/trade.md). +[Index](../i/index_instrument.md) [futures](../f/futures.md) are typically standardized in terms of contract size, expiration dates, and price increments, which are determined by the [exchange](../e/exchange.md) on which they [trade](../t/trade.md). #### Key Specifications -1. **Contract Size**: Represents the [notional value](../n/notional_value.md) of the contract. For example, the S&P 500 [futures](../f/futures.md) have a contract size of $250 times the [index](../i/index.md) level. +1. **Contract Size**: Represents the [notional value](../n/notional_value.md) of the contract. For example, the S&P 500 [futures](../f/futures.md) have a contract size of $250 times the [index](../i/index_instrument.md) level. 2. **[Tick Size](../t/tick_size.md)**: The minimum price movement of the [futures contract](../f/futures_contract.md). 3. **Expiration**: [Futures contracts](../f/futures_contracts.md) have specific expiration dates, typically quarterly (e.g., March, June, September, December). ### Pricing of Index Futures -The price of an [index](../i/index.md) [futures contract](../f/futures_contract.md) is typically determined by the following formula: +The price of an [index](../i/index_instrument.md) [futures contract](../f/futures_contract.md) is typically determined by the following formula: \[ \text{Futures Price} = \text{[Spot Price](../s/spot_price.md)} \times e^{(r-d)T} \] Where: -- **[Spot Price](../s/spot_price.md)**: Current level of the [underlying](../u/underlying.md) [index](../i/index.md). +- **[Spot Price](../s/spot_price.md)**: Current level of the [underlying](../u/underlying.md) [index](../i/index_instrument.md). - **r**: [Risk](../r/risk.md)-free [interest rate](../i/interest_rate.md). -- **d**: [Dividend yield](../d/dividend_yield.md) of the [index](../i/index.md). +- **d**: [Dividend yield](../d/dividend_yield.md) of the [index](../i/index_instrument.md). - **T**: Time to [maturity](../m/maturity.md) in years. ### Trading Index Futures -Trading [index](../i/index.md) [futures](../f/futures.md) involves either opening a long position (buying) or a short position (selling). Unlike [stocks](../s/stock.md), [futures](../f/futures.md) allow for [leverage](../l/leverage.md), meaning traders can control a larger position with a smaller amount of [capital](../c/capital.md). +Trading [index](../i/index_instrument.md) [futures](../f/futures.md) involves either opening a long position (buying) or a short position (selling). Unlike [stocks](../s/stock.md), [futures](../f/futures.md) allow for [leverage](../l/leverage.md), meaning traders can control a larger position with a smaller amount of [capital](../c/capital.md). #### Long and Short Positions -- **Long Position**: The buyer aims to [profit](../p/profit.md) from an increase in the [index](../i/index.md) price. -- **Short Position**: The seller profits if the [index](../i/index.md) price falls. +- **Long Position**: The buyer aims to [profit](../p/profit.md) from an increase in the [index](../i/index_instrument.md) price. +- **Short Position**: The seller profits if the [index](../i/index_instrument.md) price falls. ## Uses of Index Futures ### Hedging -Investors use [index](../i/index.md) [futures](../f/futures.md) to [hedge](../h/hedge.md) against potential losses in their portfolios. For example, if an [investor](../i/investor.md) holds a portfolio of S&P 500 [stocks](../s/stock.md), they can sell S&P 500 [futures](../f/futures.md) to protect against a potential decline in the [market](../m/market.md). +Investors use [index](../i/index_instrument.md) [futures](../f/futures.md) to [hedge](../h/hedge.md) against potential losses in their portfolios. For example, if an [investor](../i/investor.md) holds a portfolio of S&P 500 [stocks](../s/stock.md), they can sell S&P 500 [futures](../f/futures.md) to protect against a potential decline in the [market](../m/market.md). ### Speculation -Traders speculate on the direction of the [index](../i/index.md) to [profit](../p/profit.md) from price movements without necessarily holding any stock positions. This can be highly [lucrative](../l/lucrative.md) but also risky due to [leverage](../l/leverage.md). +Traders speculate on the direction of the [index](../i/index_instrument.md) to [profit](../p/profit.md) from price movements without necessarily holding any stock positions. This can be highly [lucrative](../l/lucrative.md) but also risky due to [leverage](../l/leverage.md). ### Arbitrage -[Arbitrage](../a/arbitrage.md) involves taking advantage of price discrepancies between related financial instruments. For example, [index](../i/index.md) [arbitrage](../a/arbitrage.md) involves buying the [underlying](../u/underlying.md) [stocks](../s/stock.md) in the [index](../i/index.md) and selling the corresponding [futures contracts](../f/futures_contracts.md) if the [futures](../f/futures.md) are trading at a [premium](../p/premium.md). +[Arbitrage](../a/arbitrage.md) involves taking advantage of price discrepancies between related financial instruments. For example, [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) involves buying the [underlying](../u/underlying.md) [stocks](../s/stock.md) in the [index](../i/index_instrument.md) and selling the corresponding [futures contracts](../f/futures_contracts.md) if the [futures](../f/futures.md) are trading at a [premium](../p/premium.md). ## Key Exchanges and Index Futures Contracts ### CME Group -The Chicago Mercantile [Exchange](../e/exchange.md) (CME) is one of the largest and most diverse [derivatives](../d/derivatives.md) marketplaces in the world. It offers a wide [range](../r/range.md) of [index](../i/index.md) [futures](../f/futures.md), including: +The Chicago Mercantile [Exchange](../e/exchange.md) (CME) is one of the largest and most diverse [derivatives](../d/derivatives.md) marketplaces in the world. It offers a wide [range](../r/range.md) of [index](../i/index_instrument.md) [futures](../f/futures.md), including: - S&P 500 [Futures](../f/futures.md) - [NASDAQ](../n/nasdaq.md)-100 [Futures](../f/futures.md) @@ -86,7 +86,7 @@ For more details, visit the [Eurex Website](https://www.eurex.com). ### Margin Requirements -Trading [index](../i/index.md) [futures](../f/futures.md) requires an [initial margin](../i/initial_margin.md), which is a percentage of the contract [value](../v/value.md) that must be deposited to [open](../o/open.md) a position. There is also a [maintenance margin](../m/maintenance_margin.md), which is the minimum [account balance](../a/account_balance.md) that must be maintained. If the account falls below this level, a [margin call](../m/margin_call.md) is issued. +Trading [index](../i/index_instrument.md) [futures](../f/futures.md) requires an [initial margin](../i/initial_margin.md), which is a percentage of the contract [value](../v/value.md) that must be deposited to [open](../o/open.md) a position. There is also a [maintenance margin](../m/maintenance_margin.md), which is the minimum [account balance](../a/account_balance.md) that must be maintained. If the account falls below this level, a [margin call](../m/margin_call.md) is issued. ### Role of Clearinghouses @@ -96,18 +96,18 @@ Clearinghouses act as intermediaries between buyers and sellers, ensuring the in ### Spread Trading -[Spread trading](../s/spread_trading.md) involves taking opposite positions in two related [futures contracts](../f/futures_contracts.md) to [capitalize](../c/capitalize.md) on the price difference. This can be done within the same [index](../i/index.md) (calendar spread) or between different indices (inter-[market](../m/market.md) spread). +[Spread trading](../s/spread_trading.md) involves taking opposite positions in two related [futures contracts](../f/futures_contracts.md) to [capitalize](../c/capitalize.md) on the price difference. This can be done within the same [index](../i/index_instrument.md) (calendar spread) or between different indices (inter-[market](../m/market.md) spread). ### Algorithmic Trading -[Algorithmic trading](../a/algorithmic_trading.md) involves using computer algorithms to [trade](../t/trade.md) [index](../i/index.md) [futures](../f/futures.md). These algorithms can execute trades at high speeds based on predefined criteria, such as moving averages or news events. +[Algorithmic trading](../a/algorithmic_trading.md) involves using computer algorithms to [trade](../t/trade.md) [index](../i/index_instrument.md) [futures](../f/futures.md). These algorithms can execute trades at high speeds based on predefined criteria, such as moving averages or news events. ### High-Frequency Trading (HFT) -HFT is a form of [algorithmic trading](../a/algorithmic_trading.md) characterized by extremely high speeds and high [turnover](../t/turnover.md) rates. Firms use advanced algorithms and co-location services to [trade](../t/trade.md) [index](../i/index.md) [futures](../f/futures.md) in microseconds, aiming for small profits on large volumes. +HFT is a form of [algorithmic trading](../a/algorithmic_trading.md) characterized by extremely high speeds and high [turnover](../t/turnover.md) rates. Firms use advanced algorithms and co-location services to [trade](../t/trade.md) [index](../i/index_instrument.md) [futures](../f/futures.md) in microseconds, aiming for small profits on large volumes. ## Conclusion -[Index](../i/index.md) [futures](../f/futures.md) are versatile financial instruments used for hedging, [speculation](../s/speculation.md), and [arbitrage](../a/arbitrage.md). Understanding their mechanics, pricing, and [trading strategies](../t/trading_strategies.md) is crucial for anyone looking to participate in these markets. Due to their [leverage](../l/leverage.md) and complexity, proper [risk management](../r/risk_management.md) is essential to avoid significant losses. +[Index](../i/index_instrument.md) [futures](../f/futures.md) are versatile financial instruments used for hedging, [speculation](../s/speculation.md), and [arbitrage](../a/arbitrage.md). Understanding their mechanics, pricing, and [trading strategies](../t/trading_strategies.md) is crucial for anyone looking to participate in these markets. Due to their [leverage](../l/leverage.md) and complexity, proper [risk management](../r/risk_management.md) is essential to avoid significant losses. -With the advancement of technology, algorithmic and high-frequency trading have transformed the landscape, making it more accessible yet more competitive. As such, staying updated with [market](../m/market.md) conditions and continuously honing [trading strategies](../t/trading_strategies.md) is vital for success in [index](../i/index.md) [futures](../f/futures.md) trading. +With the advancement of technology, algorithmic and high-frequency trading have transformed the landscape, making it more accessible yet more competitive. As such, staying updated with [market](../m/market.md) conditions and continuously honing [trading strategies](../t/trading_strategies.md) is vital for success in [index](../i/index_instrument.md) [futures](../f/futures.md) trading. diff --git a/en/pedia/i/index_investing.md b/en/pedia/i/index_investing.md index 13c24b09..a65d631f 100644 --- a/en/pedia/i/index_investing.md +++ b/en/pedia/i/index_investing.md @@ -1,20 +1,20 @@ # Index Investing -[Index](../i/index.md) [investing](../i/investing.md) is a passive [investment strategy](../i/investment_strategy.md) that attempts to replicate the performance of a specific [market index](../m/market_index.md) by holding all or a [representative sample](../r/representative_sample.md) of the securities within that [index](../i/index.md). This strategy is popular because it generally offers broad [market exposure](../m/market_exposure.md), low operating expenses, and relatively low [portfolio turnover](../p/portfolio_turnover.md). +[Index](../i/index_instrument.md) [investing](../i/investing.md) is a passive [investment strategy](../i/investment_strategy.md) that attempts to replicate the performance of a specific [market index](../m/market_index.md) by holding all or a [representative sample](../r/representative_sample.md) of the securities within that [index](../i/index_instrument.md). This strategy is popular because it generally offers broad [market exposure](../m/market_exposure.md), low operating expenses, and relatively low [portfolio turnover](../p/portfolio_turnover.md). ## What is an Index? -An [index](../i/index.md) is a statistical measure of the changes in a portfolio of [stocks](../s/stock.md) representing a portion of the overall [market](../m/market.md). Indices are used as benchmarks to gauge the performance of specific sectors of the [market](../m/market.md) or the [market](../m/market.md) as a whole. Examples of popular indices include the S&P 500, Dow Jones Industrial Average (DJIA), and the [NASDAQ](../n/nasdaq.md) Composite. +An [index](../i/index_instrument.md) is a statistical measure of the changes in a portfolio of [stocks](../s/stock.md) representing a portion of the overall [market](../m/market.md). Indices are used as benchmarks to gauge the performance of specific sectors of the [market](../m/market.md) or the [market](../m/market.md) as a whole. Examples of popular indices include the S&P 500, Dow Jones Industrial Average (DJIA), and the [NASDAQ](../n/nasdaq.md) Composite. ## How Index Investing Works -[Index](../i/index.md) [investing](../i/investing.md) involves purchasing and holding an [index fund](../i/index_fund.md) or an [Exchange](../e/exchange.md)-Traded [Fund](../f/fund.md) (ETF) that aims to replicate the performance of a specific [index](../i/index.md). Unlike actively managed funds that strive to [outperform](../o/outperform.md) the [market](../m/market.md) through strategic stock selection and [market timing](../m/market_timing.md), [index](../i/index.md) funds aim simply to replicate the [index](../i/index.md)'s returns. +[Index](../i/index_instrument.md) [investing](../i/investing.md) involves purchasing and holding an [index fund](../i/index_fund.md) or an [Exchange](../e/exchange.md)-Traded [Fund](../f/fund.md) (ETF) that aims to replicate the performance of a specific [index](../i/index_instrument.md). Unlike actively managed funds that strive to [outperform](../o/outperform.md) the [market](../m/market.md) through strategic stock selection and [market timing](../m/market_timing.md), [index](../i/index_instrument.md) funds aim simply to replicate the [index](../i/index_instrument.md)'s returns. ### Index Funds vs. ETFs -Both [index](../i/index.md) funds and ETFs are designed to track an [index](../i/index.md), but there are differences in how they are traded and managed: +Both [index](../i/index_instrument.md) funds and ETFs are designed to track an [index](../i/index_instrument.md), but there are differences in how they are traded and managed: -- **[Index](../i/index.md) Funds:** These are mutual funds that can be purchased directly from investment companies. They are bought and sold at the end-of-day Net [Asset](../a/asset.md) [Value](../v/value.md) (NAV). +- **[Index](../i/index_instrument.md) Funds:** These are mutual funds that can be purchased directly from investment companies. They are bought and sold at the end-of-day Net [Asset](../a/asset.md) [Value](../v/value.md) (NAV). - **ETFs:** These are traded on stock exchanges, just like individual [stocks](../s/stock.md). Investors can buy and sell them throughout the trading day at [market](../m/market.md) prices, which may fluctuate above or below the NAV. @@ -22,47 +22,47 @@ Both [index](../i/index.md) funds and ETFs are designed to track an [index](../i ### Diversification -One of the most compelling reasons to invest in [index](../i/index.md) funds is [diversification](../d/diversification.md). By holding an [index fund](../i/index_fund.md), investors can [gain](../g/gain.md) exposure to a broad array of securities and sectors, reducing the [risk](../r/risk.md) associated with holding individual [stocks](../s/stock.md). +One of the most compelling reasons to invest in [index](../i/index_instrument.md) funds is [diversification](../d/diversification.md). By holding an [index fund](../i/index_fund.md), investors can [gain](../g/gain.md) exposure to a broad array of securities and sectors, reducing the [risk](../r/risk.md) associated with holding individual [stocks](../s/stock.md). ### Lower Fees -[Index](../i/index.md) funds typically have lower [expense](../e/expense.md) ratios compared to actively managed funds because they do not require [active management](../a/active_management.md). Lower fees can significantly enhance long-term investment returns. +[Index](../i/index_instrument.md) funds typically have lower [expense](../e/expense.md) ratios compared to actively managed funds because they do not require [active management](../a/active_management.md). Lower fees can significantly enhance long-term investment returns. ### Simplicity -[Index](../i/index.md) [investing](../i/investing.md) simplifies the investment process. Instead of researching and selecting individual [stocks](../s/stock.md), investors can achieve broad [market exposure](../m/market_exposure.md) through a single [fund](../f/fund.md). +[Index](../i/index_instrument.md) [investing](../i/investing.md) simplifies the investment process. Instead of researching and selecting individual [stocks](../s/stock.md), investors can achieve broad [market exposure](../m/market_exposure.md) through a single [fund](../f/fund.md). ### Consistent Performance -While actively managed funds aim to [outperform](../o/outperform.md) the [market](../m/market.md), they often [underperform](../u/underperform.md) their benchmarks over the long term. [Index](../i/index.md) funds, by design, match the performance of their respective indices, providing consistent returns in line with [market](../m/market.md) performance. +While actively managed funds aim to [outperform](../o/outperform.md) the [market](../m/market.md), they often [underperform](../u/underperform.md) their benchmarks over the long term. [Index](../i/index_instrument.md) funds, by design, match the performance of their respective indices, providing consistent returns in line with [market](../m/market.md) performance. ## Disadvantages of Index Investing ### Limited Upside -Because [index](../i/index.md) funds aim to replicate the [index](../i/index.md) rather than [outperform](../o/outperform.md) it, they [offer](../o/offer.md) limited [upside potential](../u/upside_potential_in_trading.md) compared to actively managed funds that may achieve better-than-[market](../m/market.md) returns. +Because [index](../i/index_instrument.md) funds aim to replicate the [index](../i/index_instrument.md) rather than [outperform](../o/outperform.md) it, they [offer](../o/offer.md) limited [upside potential](../u/upside_potential_in_trading.md) compared to actively managed funds that may achieve better-than-[market](../m/market.md) returns. ### Lack of Flexibility -[Index](../i/index.md) [investing](../i/investing.md) does not provide the flexibility to react to changing [market](../m/market.md) conditions or exploit specific opportunities. Investors are bound by the [holdings](../h/holdings.md) and weightings of the [index](../i/index.md). +[Index](../i/index_instrument.md) [investing](../i/investing.md) does not provide the flexibility to react to changing [market](../m/market.md) conditions or exploit specific opportunities. Investors are bound by the [holdings](../h/holdings.md) and weightings of the [index](../i/index_instrument.md). ### Passive Strategy Risks -While [diversification](../d/diversification.md) reduces the [risk](../r/risk.md) associated with individual securities, it does not eliminate [market risk](../m/market_risk.md). [Index](../i/index.md) funds are still subject to overall [market](../m/market.md) fluctuations. +While [diversification](../d/diversification.md) reduces the [risk](../r/risk.md) associated with individual securities, it does not eliminate [market risk](../m/market_risk.md). [Index](../i/index_instrument.md) funds are still subject to overall [market](../m/market.md) fluctuations. ## Popular Index Funds and ETFs ### Vanguard 500 Index Fund (VFIAX) -The Vanguard 500 [Index Fund](../i/index_fund.md) replicates the performance of the S&P 500 [Index](../i/index.md), providing exposure to 500 of the largest companies in the U.S. [Vanguard 500 Index Fund](https://investor.vanguard.com/mutual-funds/profile/VFIAX) +The Vanguard 500 [Index Fund](../i/index_fund.md) replicates the performance of the S&P 500 [Index](../i/index_instrument.md), providing exposure to 500 of the largest companies in the U.S. [Vanguard 500 Index Fund](https://investor.vanguard.com/mutual-funds/profile/VFIAX) ### SPDR S&P 500 ETF Trust (SPY) -This ETF aims to provide investment results that generally correspond to the performance of the S&P 500 [Index](../i/index.md). [SPDR S&P 500 ETF Trust](https://www.ssga.com/us/en/individual/etfs/funds/spdr-sp-500-etf-trust-spy) +This ETF aims to provide investment results that generally correspond to the performance of the S&P 500 [Index](../i/index_instrument.md). [SPDR S&P 500 ETF Trust](https://www.ssga.com/us/en/individual/etfs/funds/spdr-sp-500-etf-trust-spy) ### iShares Russell 2000 ETF (IWM) -The [iShares](../i/ishares.md) Russell 2000 ETF seeks to track the investment results of an [index](../i/index.md) composed of small-[capitalization](../c/capitalization.md) U.S. equities. [iShares Russell 2000 ETF](https://www.ishares.com/us/products/239710/ishares-russell-2000-etf) +The [iShares](../i/ishares.md) Russell 2000 ETF seeks to track the investment results of an [index](../i/index_instrument.md) composed of small-[capitalization](../c/capitalization.md) U.S. equities. [iShares Russell 2000 ETF](https://www.ishares.com/us/products/239710/ishares-russell-2000-etf) ### Fidelity ZERO Total Market Index Fund (FZROX) @@ -70,17 +70,17 @@ This [fund](../f/fund.md) seeks to provide investment results that correspond to ## Historical Performance -Historically, [index](../i/index.md) [investing](../i/investing.md) has been a reliable method for investors to grow [wealth](../w/wealth.md) over the long term. Studies have shown that the majority of actively managed funds [fail](../f/fail.md) to [outperform](../o/outperform.md) their benchmarks over extended periods. This has led to increased popularity of [index](../i/index.md) funds as a preferred [investment vehicle](../i/investment_vehicle.md) for many. +Historically, [index](../i/index_instrument.md) [investing](../i/investing.md) has been a reliable method for investors to grow [wealth](../w/wealth.md) over the long term. Studies have shown that the majority of actively managed funds [fail](../f/fail.md) to [outperform](../o/outperform.md) their benchmarks over extended periods. This has led to increased popularity of [index](../i/index_instrument.md) funds as a preferred [investment vehicle](../i/investment_vehicle.md) for many. ## Academic Support -Numerous academic studies support the efficacy of [index](../i/index.md) [investing](../i/investing.md). Notably, Nobel Laureate William Sharpe published a paper titled "The Arithmetic of [Active Management](../a/active_management.md)," which argues that the average actively managed dollar must [underperform](../u/underperform.md) the average passively managed dollar due to higher fees and costs associated with [active management](../a/active_management.md). +Numerous academic studies support the efficacy of [index](../i/index_instrument.md) [investing](../i/investing.md). Notably, Nobel Laureate William Sharpe published a paper titled "The Arithmetic of [Active Management](../a/active_management.md)," which argues that the average actively managed dollar must [underperform](../u/underperform.md) the average passively managed dollar due to higher fees and costs associated with [active management](../a/active_management.md). ## Key Considerations for Index Investors ### Asset Allocation -Determining the right mix of [asset](../a/asset.md) classes ([stocks](../s/stock.md), bonds, etc.) is critical for managing [risk](../r/risk.md) and achieving long-term investment goals. [Index](../i/index.md) investors should consider their [risk tolerance](../r/risk_tolerance.md), [investment horizon](../i/investment_horizon.md), and financial objectives when determining their [asset allocation](../a/asset_allocation.md) strategy. +Determining the right mix of [asset](../a/asset.md) classes ([stocks](../s/stock.md), bonds, etc.) is critical for managing [risk](../r/risk.md) and achieving long-term investment goals. [Index](../i/index_instrument.md) investors should consider their [risk tolerance](../r/risk_tolerance.md), [investment horizon](../i/investment_horizon.md), and financial objectives when determining their [asset allocation](../a/asset_allocation.md) strategy. ### Rebalancing @@ -88,7 +88,7 @@ Periodic [rebalancing](../r/rebalancing.md) of the portfolio may be required to ### Tax Efficiency -ETFs, in particular, are known for their tax [efficiency](../e/efficiency.md) due to their unique structure, which allows for tax-efficient management of [capital](../c/capital.md) gains. Investors in [index](../i/index.md) funds should still be mindful of tax implications and strategies to minimize [tax liability](../t/tax_liability.md). +ETFs, in particular, are known for their tax [efficiency](../e/efficiency.md) due to their unique structure, which allows for tax-efficient management of [capital](../c/capital.md) gains. Investors in [index](../i/index_instrument.md) funds should still be mindful of tax implications and strategies to minimize [tax liability](../t/tax_liability.md). ## Innovations and Trends @@ -102,8 +102,8 @@ Thematic ETFs track indices focused on specific themes, such as technology, clea ### ESG Investing -Environmental, Social, and Governance (ESG) criteria are increasingly being incorporated into [index](../i/index.md) funds and ETFs. These funds aim to invest in companies with strong ESG performance, appealing to socially conscious investors. +Environmental, Social, and Governance (ESG) criteria are increasingly being incorporated into [index](../i/index_instrument.md) funds and ETFs. These funds aim to invest in companies with strong ESG performance, appealing to socially conscious investors. ## Conclusion -[Index](../i/index.md) [investing](../i/investing.md) is a widely respected strategy for its ability to provide [diversification](../d/diversification.md), low costs, and consistent performance in line with [market](../m/market.md) indices. While it may not [offer](../o/offer.md) the potential for outsized returns like some actively managed funds, its simplicity and reliability make it an attractive option for investors looking to build long-term [wealth](../w/wealth.md). \ No newline at end of file +[Index](../i/index_instrument.md) [investing](../i/investing.md) is a widely respected strategy for its ability to provide [diversification](../d/diversification.md), low costs, and consistent performance in line with [market](../m/market.md) indices. While it may not [offer](../o/offer.md) the potential for outsized returns like some actively managed funds, its simplicity and reliability make it an attractive option for investors looking to build long-term [wealth](../w/wealth.md). \ No newline at end of file diff --git a/en/pedia/i/index_option.md b/en/pedia/i/index_option.md index c2aa2d4a..1af29ae5 100644 --- a/en/pedia/i/index_option.md +++ b/en/pedia/i/index_option.md @@ -1,26 +1,26 @@ # Index Option -An [index](../i/index.md) option is a financial [derivative](../d/derivative.md) that gives the purchaser the right, but not the obligation, to buy or sell a basket of stock indexes at a predetermined price, called the [strike price](../s/strike_price.md), within a specified time frame. Unlike individual stock [options](../o/options.md), which pertain to single [stocks](../s/stock.md), [index options](../i/index_options.md) pertain to the entire [market](../m/market.md) or a segment of it, allowing traders and investors to implement strategies based on their outlook of the [market](../m/market.md) as a whole. +An [index](../i/index_instrument.md) option is a financial [derivative](../d/derivative.md) that gives the purchaser the right, but not the obligation, to buy or sell a basket of stock indexes at a predetermined price, called the [strike price](../s/strike_price.md), within a specified time frame. Unlike individual stock [options](../o/options.md), which pertain to single [stocks](../s/stock.md), [index options](../i/index_options.md) pertain to the entire [market](../m/market.md) or a segment of it, allowing traders and investors to implement strategies based on their outlook of the [market](../m/market.md) as a whole. ## Overview -[Index options](../i/index_options.md) are similar to individual stock [options](../o/options.md) in terms of their structure, but instead of one stock, the [underlying asset](../u/underlying_asset.md) is a stock [index](../i/index.md) like the S&P 500, [Nasdaq](../n/nasdaq.md) 100, or Russell 2000. The [value](../v/value.md) of an [index](../i/index.md) option is tied to the [index](../i/index.md)'s performance and offers an efficient way to [hedge](../h/hedge.md) or speculate on [market](../m/market.md) movements. +[Index options](../i/index_options.md) are similar to individual stock [options](../o/options.md) in terms of their structure, but instead of one stock, the [underlying asset](../u/underlying_asset.md) is a stock [index](../i/index_instrument.md) like the S&P 500, [Nasdaq](../n/nasdaq.md) 100, or Russell 2000. The [value](../v/value.md) of an [index](../i/index_instrument.md) option is tied to the [index](../i/index_instrument.md)'s performance and offers an efficient way to [hedge](../h/hedge.md) or speculate on [market](../m/market.md) movements. ### Types of Index Options -1. **Call [Options](../o/options.md)**: These give the holder the right to buy the [underlying](../u/underlying.md) [index](../i/index.md) at the [strike price](../s/strike_price.md) before expiration. -2. **[Put Options](../p/put_options.md)**: These give the holder the right to sell the [underlying](../u/underlying.md) [index](../i/index.md) at the [strike price](../s/strike_price.md) before expiration. +1. **Call [Options](../o/options.md)**: These give the holder the right to buy the [underlying](../u/underlying.md) [index](../i/index_instrument.md) at the [strike price](../s/strike_price.md) before expiration. +2. **[Put Options](../p/put_options.md)**: These give the holder the right to sell the [underlying](../u/underlying.md) [index](../i/index_instrument.md) at the [strike price](../s/strike_price.md) before expiration. -Unlike [options](../o/options.md) on individual [stocks](../s/stock.md), [index options](../i/index_options.md) are settled in cash rather than the [physical delivery](../p/physical_delivery_in_trading.md) of the [underlying asset](../u/underlying_asset.md), due to the impracticality of delivering a portfolio of the numerous [stocks](../s/stock.md) that make up an [index](../i/index.md). +Unlike [options](../o/options.md) on individual [stocks](../s/stock.md), [index options](../i/index_options.md) are settled in cash rather than the [physical delivery](../p/physical_delivery_in_trading.md) of the [underlying asset](../u/underlying_asset.md), due to the impracticality of delivering a portfolio of the numerous [stocks](../s/stock.md) that make up an [index](../i/index_instrument.md). ### Key Terminology - **[Strike Price](../s/strike_price.md)**: The predetermined price at which the option can be exercised. - **[Expiration Date](../e/expiration_date.md)**: The date after which the option can no longer be exercised. - **[Premium](../p/premium.md)**: The cost to purchase the option, paid upfront. -- **In-the-[Money](../m/money.md) (ITM)**: A [call option](../c/call_option.md) is ITM if the [index](../i/index.md) [value](../v/value.md) is above the [strike price](../s/strike_price.md); a [put option](../p/put.md) is ITM if the [index](../i/index.md) [value](../v/value.md) is below the [strike price](../s/strike_price.md). -- **Out-of-the-[Money](../m/money.md) (OTM)**: A [call option](../c/call_option.md) is OTM if the [index](../i/index.md) [value](../v/value.md) is below the [strike price](../s/strike_price.md); a [put option](../p/put.md) is OTM if the [index](../i/index.md) [value](../v/value.md) is above the [strike price](../s/strike_price.md). -- **At-the-[Money](../m/money.md) (ATM)**: When the [index](../i/index.md) [value](../v/value.md) is equal to the [strike price](../s/strike_price.md). +- **In-the-[Money](../m/money.md) (ITM)**: A [call option](../c/call_option.md) is ITM if the [index](../i/index_instrument.md) [value](../v/value.md) is above the [strike price](../s/strike_price.md); a [put option](../p/put.md) is ITM if the [index](../i/index_instrument.md) [value](../v/value.md) is below the [strike price](../s/strike_price.md). +- **Out-of-the-[Money](../m/money.md) (OTM)**: A [call option](../c/call_option.md) is OTM if the [index](../i/index_instrument.md) [value](../v/value.md) is below the [strike price](../s/strike_price.md); a [put option](../p/put.md) is OTM if the [index](../i/index_instrument.md) [value](../v/value.md) is above the [strike price](../s/strike_price.md). +- **At-the-[Money](../m/money.md) (ATM)**: When the [index](../i/index_instrument.md) [value](../v/value.md) is equal to the [strike price](../s/strike_price.md). ## Popular Index Options @@ -32,11 +32,11 @@ Several popular indices have [options](../o/options.md) markets, [offering](../o ## Pricing Factors -The price of an [index](../i/index.md) option is determined by several factors: +The price of an [index](../i/index_instrument.md) option is determined by several factors: ### 1. **Intrinsic Value** -This is the real, tangible [value](../v/value.md) of the option if it were exercised immediately. For a [call option](../c/call_option.md), it's calculated as the current [index](../i/index.md) [value](../v/value.md) minus the [strike price](../s/strike_price.md), and for a [put option](../p/put.md), it's the [strike price](../s/strike_price.md) minus the current [index](../i/index.md) [value](../v/value.md). +This is the real, tangible [value](../v/value.md) of the option if it were exercised immediately. For a [call option](../c/call_option.md), it's calculated as the current [index](../i/index_instrument.md) [value](../v/value.md) minus the [strike price](../s/strike_price.md), and for a [put option](../p/put.md), it's the [strike price](../s/strike_price.md) minus the current [index](../i/index_instrument.md) [value](../v/value.md). ### 2. **Extrinsic Value** @@ -44,7 +44,7 @@ This is the additional [value](../v/value.md) attributed to factors other than [ ### 3. **Implied Volatility (IV)** -It reflects the [market](../m/market.md)'s forecast of a likely movement in the [index](../i/index.md). Higher implied [volatility](../v/volatility.md) increases the [extrinsic value](../e/extrinsic_value.md) of the [option premium](../o/option_premium.md). +It reflects the [market](../m/market.md)'s forecast of a likely movement in the [index](../i/index_instrument.md). Higher implied [volatility](../v/volatility.md) increases the [extrinsic value](../e/extrinsic_value.md) of the [option premium](../o/option_premium.md). ### 4. **Time Decay (Theta)** @@ -60,11 +60,11 @@ Traders and investors use [index options](../i/index_options.md) in various stra ### 1. **Hedging Portfolios** -Investors may use [index](../i/index.md) [put options](../p/put_options.md) to protect their portfolios from a [market](../m/market.md) downturn. By purchasing [put options](../p/put_options.md), an [investor](../i/investor.md) can [offset](../o/offset.md) losses in their existing stock [holdings](../h/holdings.md) if the [market](../m/market.md) declines. +Investors may use [index](../i/index_instrument.md) [put options](../p/put_options.md) to protect their portfolios from a [market](../m/market.md) downturn. By purchasing [put options](../p/put_options.md), an [investor](../i/investor.md) can [offset](../o/offset.md) losses in their existing stock [holdings](../h/holdings.md) if the [market](../m/market.md) declines. ### 2. **Speculation** -Traders can use [index](../i/index.md) call and [put options](../p/put_options.md) to bet on the [market](../m/market.md)'s direction. Buying call [options](../o/options.md) is a bullish strategy, while buying [put options](../p/put_options.md) is a bearish strategy. +Traders can use [index](../i/index_instrument.md) call and [put options](../p/put_options.md) to bet on the [market](../m/market.md)'s direction. Buying call [options](../o/options.md) is a bullish strategy, while buying [put options](../p/put_options.md) is a bearish strategy. ### 3. **Spreads** @@ -76,7 +76,7 @@ These strategies involve buying and selling [multiple](../m/multiple.md) [option ### 4. **Covered Calls and Cash-Secured Puts** - **[Covered Call](../c/covered_call.md)**: An [investor](../i/investor.md) holding a portfolio sells call [options](../o/options.md) to generate extra [income](../i/income.md). -- **Cash-Secured Put**: Selling [put options](../p/put_options.md) while holding enough cash to purchase the [index](../i/index.md) if assigned. +- **Cash-Secured Put**: Selling [put options](../p/put_options.md) while holding enough cash to purchase the [index](../i/index_instrument.md) if assigned. ### 5. **Straddle and Strangle** diff --git a/en/pedia/i/index_options.md b/en/pedia/i/index_options.md index 579e677d..8f9229bb 100644 --- a/en/pedia/i/index_options.md +++ b/en/pedia/i/index_options.md @@ -1,43 +1,43 @@ # Index Options ### Introduction -[Index](../i/index.md) [options](../o/options.md) are financial [derivatives](../d/derivatives.md) that give the holder the right, but not the obligation, to buy or sell a basket of [stocks](../s/stock.md) represented by a specific [index](../i/index.md) at a predetermined price before or on a specified [expiration date](../e/expiration_date.md). Unlike stock [options](../o/options.md) which are based on individual assets, [index](../i/index.md) [options](../o/options.md) are based on an entire [index](../i/index.md) such as the S&P 500, [NASDAQ](../n/nasdaq.md)-100, or the Dow Jones Industrial Average. These instruments are widely used for hedging, [speculation](../s/speculation.md), and [portfolio management](../p/portfolio_management.md). +[Index](../i/index_instrument.md) [options](../o/options.md) are financial [derivatives](../d/derivatives.md) that give the holder the right, but not the obligation, to buy or sell a basket of [stocks](../s/stock.md) represented by a specific [index](../i/index_instrument.md) at a predetermined price before or on a specified [expiration date](../e/expiration_date.md). Unlike stock [options](../o/options.md) which are based on individual assets, [index](../i/index_instrument.md) [options](../o/options.md) are based on an entire [index](../i/index_instrument.md) such as the S&P 500, [NASDAQ](../n/nasdaq.md)-100, or the Dow Jones Industrial Average. These instruments are widely used for hedging, [speculation](../s/speculation.md), and [portfolio management](../p/portfolio_management.md). ### Types of Index Options -There are two primary types of [index](../i/index.md) [options](../o/options.md): +There are two primary types of [index](../i/index_instrument.md) [options](../o/options.md): -1. **Call [Options](../o/options.md):** These give the holder the right to buy the [index](../i/index.md) at a specified [strike price](../s/strike_price.md). -2. **[Put Options](../p/put_options.md):** These give the holder the right to sell the [index](../i/index.md) at a specified [strike price](../s/strike_price.md). +1. **Call [Options](../o/options.md):** These give the holder the right to buy the [index](../i/index_instrument.md) at a specified [strike price](../s/strike_price.md). +2. **[Put Options](../p/put_options.md):** These give the holder the right to sell the [index](../i/index_instrument.md) at a specified [strike price](../s/strike_price.md). ### Major Index Options -Here are some of the most commonly traded [index](../i/index.md) [options](../o/options.md): +Here are some of the most commonly traded [index](../i/index_instrument.md) [options](../o/options.md): -1. **S&P 500 [Index](../i/index.md) [Options](../o/options.md) (SPX):** These [options](../o/options.md) are based on the S&P 500 [index](../i/index.md), which consists of 500 of the largest publicly traded companies in the U.S. -2. **[NASDAQ](../n/nasdaq.md)-100 [Index](../i/index.md) [Options](../o/options.md) (NDX):** These [options](../o/options.md) are based on the [NASDAQ](../n/nasdaq.md)-100 [index](../i/index.md), which includes 100 of the largest non-financial companies [listed](../l/listed.md) on the [NASDAQ](../n/nasdaq.md) stock [exchange](../e/exchange.md). -3. **Dow Jones Industrial Average (DJIA) [Options](../o/options.md) (DJX):** These are [options](../o/options.md) on the DJIA, an [index](../i/index.md) representing 30 large, publicly-owned companies based in the U.S. +1. **S&P 500 [Index](../i/index_instrument.md) [Options](../o/options.md) (SPX):** These [options](../o/options.md) are based on the S&P 500 [index](../i/index_instrument.md), which consists of 500 of the largest publicly traded companies in the U.S. +2. **[NASDAQ](../n/nasdaq.md)-100 [Index](../i/index_instrument.md) [Options](../o/options.md) (NDX):** These [options](../o/options.md) are based on the [NASDAQ](../n/nasdaq.md)-100 [index](../i/index_instrument.md), which includes 100 of the largest non-financial companies [listed](../l/listed.md) on the [NASDAQ](../n/nasdaq.md) stock [exchange](../e/exchange.md). +3. **Dow Jones Industrial Average (DJIA) [Options](../o/options.md) (DJX):** These are [options](../o/options.md) on the DJIA, an [index](../i/index_instrument.md) representing 30 large, publicly-owned companies based in the U.S. SPX [options](../o/options.md) can be explored more [here](https://www.cboe.com/tradable_products/sp_500). ### Pricing and Valuation -The [valuation](../v/valuation.md) of [index](../i/index.md) [options](../o/options.md) is driven by several factors, primarily: +The [valuation](../v/valuation.md) of [index](../i/index_instrument.md) [options](../o/options.md) is driven by several factors, primarily: -1. **Spot [Index](../i/index.md) Level:** The current level of the [index](../i/index.md). +1. **Spot [Index](../i/index_instrument.md) Level:** The current level of the [index](../i/index_instrument.md). 2. **[Strike Price](../s/strike_price.md):** The price at which the option can be exercised. 3. **Time to Expiration:** The remaining time until the [expiration date](../e/expiration_date.md). -4. **[Volatility](../v/volatility.md):** The expected [volatility](../v/volatility.md) of the [index](../i/index.md) prices. +4. **[Volatility](../v/volatility.md):** The expected [volatility](../v/volatility.md) of the [index](../i/index_instrument.md) prices. 5. **[Risk](../r/risk.md)-Free [Interest Rate](../i/interest_rate.md):** The current [risk](../r/risk.md)-free [interest rate](../i/interest_rate.md), typically the [yield](../y/yield.md) on government bonds. -6. **Dividends:** Expected dividends from the [index](../i/index.md) components. +6. **Dividends:** Expected dividends from the [index](../i/index_instrument.md) components. -The [Black-Scholes model](../b/black-scholes_model.md) and the Binomial model are commonly used to price [index](../i/index.md) [options](../o/options.md). +The [Black-Scholes model](../b/black-scholes_model.md) and the Binomial model are commonly used to price [index](../i/index_instrument.md) [options](../o/options.md). ### Settlement of Index Options -[Index](../i/index.md) [options](../o/options.md) are typically cash-settled, which means that upon expiration, the difference between the [index](../i/index.md) price and the [strike price](../s/strike_price.md) is paid in cash. The settlement can be: +[Index](../i/index_instrument.md) [options](../o/options.md) are typically cash-settled, which means that upon expiration, the difference between the [index](../i/index_instrument.md) price and the [strike price](../s/strike_price.md) is paid in cash. The settlement can be: 1. **European-style:** Exercisable only at expiration. 2. **American-style:** Exercisable at any point before expiration. ### Popular Strategies -Traders use various strategies to [profit](../p/profit.md) from or [hedge](../h/hedge.md) using [index](../i/index.md) [options](../o/options.md), including: +Traders use various strategies to [profit](../p/profit.md) from or [hedge](../h/hedge.md) using [index](../i/index_instrument.md) [options](../o/options.md), including: 1. **Covered Calls:** Holding the [underlying asset](../u/underlying_asset.md) and selling a [call option](../c/call_option.md). 2. **Protective Puts:** Holding the [underlying asset](../u/underlying_asset.md) and buying a [put option](../p/put.md). @@ -47,19 +47,19 @@ Traders use various strategies to [profit](../p/profit.md) from or [hedge](../h/ ### Risks and Benefits #### Benefits: -1. **Hedging:** [Index](../i/index.md) [options](../o/options.md) can be used as a [risk management](../r/risk_management.md) tool to protect against [market](../m/market.md) downturns. +1. **Hedging:** [Index](../i/index_instrument.md) [options](../o/options.md) can be used as a [risk management](../r/risk_management.md) tool to protect against [market](../m/market.md) downturns. 2. **[Leverage](../l/leverage.md):** Allows for greater exposure with less [capital](../c/capital.md) outlay. 3. **[Diversification](../d/diversification.md):** Exposure to a broad [market index](../m/market_index.md) can reduce individual stock [risk](../r/risk.md). #### Risks: -1. **Complexity:** Understanding and managing [index](../i/index.md) [options](../o/options.md) can be complex. +1. **Complexity:** Understanding and managing [index](../i/index_instrument.md) [options](../o/options.md) can be complex. 2. **[Volatility](../v/volatility.md):** The high [volatility](../v/volatility.md) of [options](../o/options.md) can lead to significant price swings. 3. **Losses:** Potential for substantial losses, especially for writers of [options](../o/options.md). ### Regulatory Aspects -[Index](../i/index.md) [options](../o/options.md) trading is regulated by various financial authorities, including the Securities and [Exchange](../e/exchange.md) [Commission](../c/commission.md) (SEC) in the United States and the Financial Conduct Authority (FCA) in the UK. These authorities set rules to protect investors and ensure fair trading practices. +[Index](../i/index_instrument.md) [options](../o/options.md) trading is regulated by various financial authorities, including the Securities and [Exchange](../e/exchange.md) [Commission](../c/commission.md) (SEC) in the United States and the Financial Conduct Authority (FCA) in the UK. These authorities set rules to protect investors and ensure fair trading practices. ### Conclusion -[Index](../i/index.md) [options](../o/options.md) are a versatile [financial instrument](../f/financial_instrument.md) used widely in the [market](../m/market.md) for a [range](../r/range.md) of purposes from hedging to [speculation](../s/speculation.md). Understanding their characteristics, pricing, and risks is critical for anyone looking to utilize them in their trading or [investment strategy](../i/investment_strategy.md). +[Index](../i/index_instrument.md) [options](../o/options.md) are a versatile [financial instrument](../f/financial_instrument.md) used widely in the [market](../m/market.md) for a [range](../r/range.md) of purposes from hedging to [speculation](../s/speculation.md). Understanding their characteristics, pricing, and risks is critical for anyone looking to utilize them in their trading or [investment strategy](../i/investment_strategy.md). For further reading on SPX [options](../o/options.md), you can visit the Chicago Board [Options](../o/options.md) [Exchange](../e/exchange.md) (CBOE) [website](https://www.cboe.com/tradable_products/sp_500). diff --git a/en/pedia/i/index_rebalancing_strategies.md b/en/pedia/i/index_rebalancing_strategies.md index 83fd41f4..dc24d986 100644 --- a/en/pedia/i/index_rebalancing_strategies.md +++ b/en/pedia/i/index_rebalancing_strategies.md @@ -2,20 +2,20 @@ ### Introduction to Index Rebalancing -[Index](../i/index.md) [rebalancing](../r/rebalancing.md) is a crucial process in the maintenance of financial indices. Financial indices, such as the S&P 500 or the [NASDAQ](../n/nasdaq.md)-100, are designed to represent a segment of the [financial markets](../f/financial_market.md), often tracking the performance of a specific group of [stocks](../s/stock.md). Over time, however, the composition of an [index](../i/index.md) can become misaligned due to price movements of individual [stocks](../s/stock.md), variations in [market capitalization](../m/market_capitalization.md), corporate actions (like mergers and acquisitions), or changes in the [underlying](../u/underlying.md) criteria used for [index](../i/index.md) inclusion. +[Index](../i/index_instrument.md) [rebalancing](../r/rebalancing.md) is a crucial process in the maintenance of financial indices. Financial indices, such as the S&P 500 or the [NASDAQ](../n/nasdaq.md)-100, are designed to represent a segment of the [financial markets](../f/financial_market.md), often tracking the performance of a specific group of [stocks](../s/stock.md). Over time, however, the composition of an [index](../i/index_instrument.md) can become misaligned due to price movements of individual [stocks](../s/stock.md), variations in [market capitalization](../m/market_capitalization.md), corporate actions (like mergers and acquisitions), or changes in the [underlying](../u/underlying.md) criteria used for [index](../i/index_instrument.md) inclusion. -[Index](../i/index.md) [rebalancing](../r/rebalancing.md) is the method by which the weights of the constituent [stocks](../s/stock.md) in an [index](../i/index.md) are adjusted to realign with the [index](../i/index.md)'s methodology. This adjustment helps ensure that the [index](../i/index.md) remains a valid [benchmark](../b/benchmark.md) of its intended [market segment](../m/market_segment.md). [Rebalancing](../r/rebalancing.md) can be periodic (e.g., quarterly or annually) or based on specific events triggering reconstitution. +[Index](../i/index_instrument.md) [rebalancing](../r/rebalancing.md) is the method by which the weights of the constituent [stocks](../s/stock.md) in an [index](../i/index_instrument.md) are adjusted to realign with the [index](../i/index_instrument.md)'s methodology. This adjustment helps ensure that the [index](../i/index_instrument.md) remains a valid [benchmark](../b/benchmark.md) of its intended [market segment](../m/market_segment.md). [Rebalancing](../r/rebalancing.md) can be periodic (e.g., quarterly or annually) or based on specific events triggering reconstitution. ### Types of Index Rebalancing Strategies 1. **Periodic [Rebalancing](../r/rebalancing.md):** - - Periodic [rebalancing](../r/rebalancing.md) involves adjusting the weights of [index](../i/index.md) constituents at regular intervals. Typical periods include quarterly, semi-annually, or annually. This method ensures that the [index](../i/index.md) regularly realigns with its intended [market exposure](../m/market_exposure.md). + - Periodic [rebalancing](../r/rebalancing.md) involves adjusting the weights of [index](../i/index_instrument.md) constituents at regular intervals. Typical periods include quarterly, semi-annually, or annually. This method ensures that the [index](../i/index_instrument.md) regularly realigns with its intended [market exposure](../m/market_exposure.md). 2. **Threshold-Based [Rebalancing](../r/rebalancing.md):** - - In this strategy, [rebalancing](../r/rebalancing.md) occurs when the weights of certain [stocks](../s/stock.md) exceed or fall below pre-determined thresholds. This can help in maintaining the [risk](../r/risk.md) profile and intended exposure of the [index](../i/index.md) without waiting for a set schedule. + - In this strategy, [rebalancing](../r/rebalancing.md) occurs when the weights of certain [stocks](../s/stock.md) exceed or fall below pre-determined thresholds. This can help in maintaining the [risk](../r/risk.md) profile and intended exposure of the [index](../i/index_instrument.md) without waiting for a set schedule. 3. **Event-Driven [Rebalancing](../r/rebalancing.md):** - - Event-driven [rebalancing](../r/rebalancing.md) is triggered by specific corporate actions such as mergers, acquisitions, bankruptcies, or significant changes in [market capitalization](../m/market_capitalization.md). This approach allows the [index](../i/index.md) to promptly respond to significant [market](../m/market.md) or corporate events. + - Event-driven [rebalancing](../r/rebalancing.md) is triggered by specific corporate actions such as mergers, acquisitions, bankruptcies, or significant changes in [market capitalization](../m/market_capitalization.md). This approach allows the [index](../i/index_instrument.md) to promptly respond to significant [market](../m/market.md) or corporate events. 4. **[Optimization](../o/optimization.md)-Based [Rebalancing](../r/rebalancing.md):** - This dynamic approach uses [optimization](../o/optimization.md) algorithms to minimize [tracking error](../t/tracking_error.md), maximize [diversification](../d/diversification.md), or achieve other specified objectives. [Optimization](../o/optimization.md)-based [rebalancing](../r/rebalancing.md) might consider [transaction costs](../t/transaction_costs.md), tax implications, and other constraints. @@ -23,24 +23,24 @@ ### Importance of Index Rebalancing - **Maintaining Relevance:** - - Ensuring that the [index](../i/index.md) accurately reflects the sector or [market segment](../m/market_segment.md) it aims to track. + - Ensuring that the [index](../i/index_instrument.md) accurately reflects the sector or [market segment](../m/market_segment.md) it aims to track. - **[Risk Management](../r/risk_management.md):** - Regular [rebalancing](../r/rebalancing.md) can manage exposure to individual [stocks](../s/stock.md) and sectors, helping in the [diversification](../d/diversification.md) of [risk](../r/risk.md). - **[Performance Benchmarking](../p/performance_benchmarking.md):** - - Accurate [rebalancing](../r/rebalancing.md) ensures the [index](../i/index.md) remains a reliable performance [benchmark](../b/benchmark.md) for [fund](../f/fund.md) managers and investors. + - Accurate [rebalancing](../r/rebalancing.md) ensures the [index](../i/index_instrument.md) remains a reliable performance [benchmark](../b/benchmark.md) for [fund](../f/fund.md) managers and investors. - **[Corporate Governance](../c/corporate_governance.md):** - - Regular adjustments can maintain the integrity and governance standards of the [index](../i/index.md), removing companies that no longer meet the criteria for inclusion. + - Regular adjustments can maintain the integrity and governance standards of the [index](../i/index_instrument.md), removing companies that no longer meet the criteria for inclusion. ### Challenges in Index Rebalancing 1. **[Transaction Costs](../t/transaction_costs.md):** - - Frequent [rebalancing](../r/rebalancing.md) can incur significant [transaction costs](../t/transaction_costs.md), impacting the net performance of [index](../i/index.md)-tracking portfolios. + - Frequent [rebalancing](../r/rebalancing.md) can incur significant [transaction costs](../t/transaction_costs.md), impacting the net performance of [index](../i/index_instrument.md)-tracking portfolios. 2. **[Market](../m/market.md) Impact:** - - Large-scale [index](../i/index.md) adjustments can cause [market](../m/market.md) [volatility](../v/volatility.md) as the [demand](../d/demand.md) for specific [stocks](../s/stock.md) changes rapidly. + - Large-scale [index](../i/index_instrument.md) adjustments can cause [market](../m/market.md) [volatility](../v/volatility.md) as the [demand](../d/demand.md) for specific [stocks](../s/stock.md) changes rapidly. 3. **Operational Complexity:** - Managing and executing rebalances, particularly for indices with numerous constituents, can be operationally complex and resource-intensive. @@ -51,10 +51,10 @@ ### Case Studies and Examples - **S&P 500 [Quarterly Rebalancing](../q/quarterly_rebalancing.md):** - The S&P 500 [index](../i/index.md) undergoes [quarterly rebalancing](../q/quarterly_rebalancing.md), during which the committee reviews the [index](../i/index.md)’s components and makes changes to reflect the latest [market](../m/market.md) conditions. The full process and criteria can be explored at [S&P Dow Jones Indices](https://www.spglobal.com/spdji/en/indices/equity/sp-500/). + The S&P 500 [index](../i/index_instrument.md) undergoes [quarterly rebalancing](../q/quarterly_rebalancing.md), during which the committee reviews the [index](../i/index_instrument.md)’s components and makes changes to reflect the latest [market](../m/market.md) conditions. The full process and criteria can be explored at [S&P Dow Jones Indices](https://www.spglobal.com/spdji/en/indices/equity/sp-500/). - **FTSE 100 Annual [Rebalancing](../r/rebalancing.md):** - The FTSE 100 [index](../i/index.md) rebalances quarterly in March, June, September, and December to ensure it includes the top 100 companies by [market capitalization](../m/market_capitalization.md) [listed](../l/listed.md) on the London Stock [Exchange](../e/exchange.md). Additional details are provided by [FTSE Russell](https://www.ftserussell.com/products/indices/uk). + The FTSE 100 [index](../i/index_instrument.md) rebalances quarterly in March, June, September, and December to ensure it includes the top 100 companies by [market capitalization](../m/market_capitalization.md) [listed](../l/listed.md) on the London Stock [Exchange](../e/exchange.md). Additional details are provided by [FTSE Russell](https://www.ftserussell.com/products/indices/uk). ### Statistical Methods for Index Rebalancing @@ -62,15 +62,15 @@ - This method aims to balance [expected return](../e/expected_return.md) against portfolio [risk](../r/risk.md), promoting an [efficient frontier](../e/efficient_frontier.md) in [rebalancing](../r/rebalancing.md) decisions. 2. **[Covariance](../c/covariance.md) Matrix Estimation:** - - A statistical technique used to estimate the covariances between [asset](../a/asset.md) returns, aiding in the [optimization](../o/optimization.md) and [diversification](../d/diversification.md) of the [index](../i/index.md). + - A statistical technique used to estimate the covariances between [asset](../a/asset.md) returns, aiding in the [optimization](../o/optimization.md) and [diversification](../d/diversification.md) of the [index](../i/index_instrument.md). 3. **[Tracking Error](../t/tracking_error.md) Minimization:** - - Minimizes the deviation between the [index](../i/index.md) and its [benchmark](../b/benchmark.md), ensuring the [index](../i/index.md) closely tracks the intended [market segment](../m/market_segment.md). + - Minimizes the deviation between the [index](../i/index_instrument.md) and its [benchmark](../b/benchmark.md), ensuring the [index](../i/index_instrument.md) closely tracks the intended [market segment](../m/market_segment.md). ### Tools for Implementing Index Rebalancing 1. **[Portfolio Management](../p/portfolio_management.md) Software:** - - Platforms like [Bloomberg](../b/bloomberg.md) Terminal (https://www.[bloomberg](../b/bloomberg.md).com/professional/solution/portfolio-and-[risk](../r/risk.md)-analytics/) and [FactSet](../f/factset.md) (https://www.[factset](../f/factset.md).com/products/portfolio-management) provide comprehensive tools for managing and executing [index](../i/index.md) rebalances. + - Platforms like [Bloomberg](../b/bloomberg.md) Terminal (https://www.[bloomberg](../b/bloomberg.md).com/professional/solution/portfolio-and-[risk](../r/risk.md)-analytics/) and [FactSet](../f/factset.md) (https://www.[factset](../f/factset.md).com/products/portfolio-management) provide comprehensive tools for managing and executing [index](../i/index_instrument.md) rebalances. 2. **[Algorithmic Trading](../a/algorithmic_trading.md) Systems:** - Algorithmic systems can automate the [rebalancing](../r/rebalancing.md) process, reducing human errors and optimizing [execution](../e/execution.md) costs. Examples include services provided by [Virtu Financial](https://www.virtu.com/). @@ -94,7 +94,7 @@ ### Conclusion -[Index](../i/index.md) [rebalancing strategies](../r/rebalancing_strategies.md) are a fundamental aspect of maintaining the accuracy, relevance, and reliability of financial indices. As [financial markets](../f/financial_market.md) evolve, innovative [rebalancing](../r/rebalancing.md) methods and technological advancements [will](../w/will.md) continue to shape the landscape, ensuring that indices properly reflect their intended [market](../m/market.md) segments and serve as effective benchmarks for investors and [fund](../f/fund.md) managers. +[Index](../i/index_instrument.md) [rebalancing strategies](../r/rebalancing_strategies.md) are a fundamental aspect of maintaining the accuracy, relevance, and reliability of financial indices. As [financial markets](../f/financial_market.md) evolve, innovative [rebalancing](../r/rebalancing.md) methods and technological advancements [will](../w/will.md) continue to shape the landscape, ensuring that indices properly reflect their intended [market](../m/market.md) segments and serve as effective benchmarks for investors and [fund](../f/fund.md) managers. ### References diff --git a/en/pedia/i/index_tracking_strategies.md b/en/pedia/i/index_tracking_strategies.md index 59b39c70..39320cb6 100644 --- a/en/pedia/i/index_tracking_strategies.md +++ b/en/pedia/i/index_tracking_strategies.md @@ -1,30 +1,30 @@ # Index Tracking Strategies -In the financial world, [index](../i/index.md) tracking strategies or [index](../i/index.md) funds have gained significant popularity due to their relatively low costs, transparent strategies, and historical performance advantages over actively managed funds. These strategies aim to replicate the performance of a specific financial [index](../i/index.md), such as the S&P 500, the FTSE 100, or the MSCI World [Index](../i/index.md). This document delves into the intricate details of [index](../i/index.md) tracking strategies, discussing their types, methodologies, advantages, risks, and key players in the [industry](../i/industry.md). +In the financial world, [index](../i/index_instrument.md) tracking strategies or [index](../i/index_instrument.md) funds have gained significant popularity due to their relatively low costs, transparent strategies, and historical performance advantages over actively managed funds. These strategies aim to replicate the performance of a specific financial [index](../i/index_instrument.md), such as the S&P 500, the FTSE 100, or the MSCI World [Index](../i/index_instrument.md). This document delves into the intricate details of [index](../i/index_instrument.md) tracking strategies, discussing their types, methodologies, advantages, risks, and key players in the [industry](../i/industry.md). ### Types of Index Tracking Strategies -There are several different approaches to [index](../i/index.md) tracking, each with its own set of characteristics. The primary types include: +There are several different approaches to [index](../i/index_instrument.md) tracking, each with its own set of characteristics. The primary types include: -1. **Full Replication**: This method involves holding all the constituents of the [index](../i/index.md) in the same proportions as they are present in the [index](../i/index.md). It is commonly used for indices that include a relatively small number of [liquid](../l/liquid.md) [stocks](../s/stock.md). +1. **Full Replication**: This method involves holding all the constituents of the [index](../i/index_instrument.md) in the same proportions as they are present in the [index](../i/index_instrument.md). It is commonly used for indices that include a relatively small number of [liquid](../l/liquid.md) [stocks](../s/stock.md). -2. **[Sampling](../s/sampling.md)**: Instead of holding all the [stocks](../s/stock.md) in the [index](../i/index.md), the [fund](../f/fund.md) holds a [representative sample](../r/representative_sample.md). This approach is useful for indices with a large number of constituents or where some [stocks](../s/stock.md) are not easily tradable. +2. **[Sampling](../s/sampling.md)**: Instead of holding all the [stocks](../s/stock.md) in the [index](../i/index_instrument.md), the [fund](../f/fund.md) holds a [representative sample](../r/representative_sample.md). This approach is useful for indices with a large number of constituents or where some [stocks](../s/stock.md) are not easily tradable. -3. **Optimized [Sampling](../s/sampling.md)**: This technique involves selecting a subset of [index](../i/index.md) constituents that closely match the [index](../i/index.md)'s [risk](../r/risk.md) and [return](../r/return.md) characteristics, often using sophisticated [mathematical models](../m/mathematical_models_in_trading.md) to identify the optimal subset. +3. **Optimized [Sampling](../s/sampling.md)**: This technique involves selecting a subset of [index](../i/index_instrument.md) constituents that closely match the [index](../i/index_instrument.md)'s [risk](../r/risk.md) and [return](../r/return.md) characteristics, often using sophisticated [mathematical models](../m/mathematical_models_in_trading.md) to identify the optimal subset. -4. **Synthetic Replication**: In this method, the [fund](../f/fund.md) uses financial [derivatives](../d/derivatives.md), such as swaps, to mimic the performance of the [index](../i/index.md). This approach can be beneficial for gaining exposure to hard-to-reach markets. +4. **Synthetic Replication**: In this method, the [fund](../f/fund.md) uses financial [derivatives](../d/derivatives.md), such as swaps, to mimic the performance of the [index](../i/index_instrument.md). This approach can be beneficial for gaining exposure to hard-to-reach markets. ### Methodologies -[Index](../i/index.md) tracking strategies rely on a [range](../r/range.md) of methodologies to achieve their objectives. These methodologies are crucial for minimizing [tracking error](../t/tracking_error.md), which is the difference between the performance of the [index](../i/index.md) and the performance of the [fund](../f/fund.md). +[Index](../i/index_instrument.md) tracking strategies rely on a [range](../r/range.md) of methodologies to achieve their objectives. These methodologies are crucial for minimizing [tracking error](../t/tracking_error.md), which is the difference between the performance of the [index](../i/index_instrument.md) and the performance of the [fund](../f/fund.md). #### Full Replication -The full replication strategy ensures that the portfolio exactly mirrors the [index](../i/index.md). This method involves: +The full replication strategy ensures that the portfolio exactly mirrors the [index](../i/index_instrument.md). This method involves: -- **Exact Match Portfolio Construction**: Buying and holding every [security](../s/security.md) within the [index](../i/index.md), in the exact proportions dictated by the [index](../i/index.md). -- **[Dividend Reinvestment](../d/dividend_reinvestment.md)**: Ensuring dividends from [index](../i/index.md) constituents are reinvested appropriately to maintain proportionality. -- **Corporate Actions Management**: Handling stock splits, mergers, and acquisitions to maintain alignment with the [index](../i/index.md). +- **Exact Match Portfolio Construction**: Buying and holding every [security](../s/security.md) within the [index](../i/index_instrument.md), in the exact proportions dictated by the [index](../i/index_instrument.md). +- **[Dividend Reinvestment](../d/dividend_reinvestment.md)**: Ensuring dividends from [index](../i/index_instrument.md) constituents are reinvested appropriately to maintain proportionality. +- **Corporate Actions Management**: Handling stock splits, mergers, and acquisitions to maintain alignment with the [index](../i/index_instrument.md). The primary advantage of full replication is the minimal [tracking error](../t/tracking_error.md). However, it may incur high [transaction costs](../t/transaction_costs.md) due to frequent [rebalancing](../r/rebalancing.md). @@ -32,8 +32,8 @@ The primary advantage of full replication is the minimal [tracking error](../t/t For indices with many securities or where some securities are illiquid: -- **Statistical [Sampling](../s/sampling.md)**: Selecting a subset of securities that statistically represent the [index](../i/index.md)'s performance. -- **[Risk](../r/risk.md) [Factor](../f/factor.md) Matching**: Ensuring the selected sample matches key [risk factors](../r/risk_factors_in_trading.md) of the [index](../i/index.md), such as sector [distribution](../d/distribution.md), [market capitalization](../m/market_capitalization.md), and [beta](../b/beta.md). +- **Statistical [Sampling](../s/sampling.md)**: Selecting a subset of securities that statistically represent the [index](../i/index_instrument.md)'s performance. +- **[Risk](../r/risk.md) [Factor](../f/factor.md) Matching**: Ensuring the selected sample matches key [risk factors](../r/risk_factors_in_trading.md) of the [index](../i/index_instrument.md), such as sector [distribution](../d/distribution.md), [market capitalization](../m/market_capitalization.md), and [beta](../b/beta.md). - **[Optimization](../o/optimization.md) Algorithms**: Using [quantitative models](../q/quantitative_models.md) to minimize [tracking error](../t/tracking_error.md) by optimizing the selection process, which can involve [linear programming](../l/linear_programming_in_trading.md), quadratic programming, or heuristic methods. [Optimization](../o/optimization.md) helps reduce [transaction costs](../t/transaction_costs.md) and manage illiquid securities more effectively. @@ -42,8 +42,8 @@ For indices with many securities or where some securities are illiquid: Leveraging financial [derivatives](../d/derivatives.md): -- **[Total Return](../t/total_return.md) Swaps**: Agreements where one party pays the [total return](../t/total_return.md) of the [index](../i/index.md) (including dividends) in [exchange](../e/exchange.md) for a regular [payment](../p/payment.md), often linked to a [floating interest rate](../f/floating_interest_rate.md). -- **[Futures Contracts](../f/futures_contracts.md) and [Options](../o/options.md)**: Using [futures](../f/futures.md) and [options](../o/options.md) to [gain](../g/gain.md) exposure to the [index](../i/index.md) performance without physically [investing](../i/investing.md) in the securities. +- **[Total Return](../t/total_return.md) Swaps**: Agreements where one party pays the [total return](../t/total_return.md) of the [index](../i/index_instrument.md) (including dividends) in [exchange](../e/exchange.md) for a regular [payment](../p/payment.md), often linked to a [floating interest rate](../f/floating_interest_rate.md). +- **[Futures Contracts](../f/futures_contracts.md) and [Options](../o/options.md)**: Using [futures](../f/futures.md) and [options](../o/options.md) to [gain](../g/gain.md) exposure to the [index](../i/index_instrument.md) performance without physically [investing](../i/investing.md) in the securities. Synthetic replication can provide efficient [market](../m/market.md) access and lower operational costs but entails [counterparty risk](../c/counterparty_risk.md). @@ -51,34 +51,34 @@ Synthetic replication can provide efficient [market](../m/market.md) access and 1. **Lower Costs**: Passive management typically involves lower fees compared to [active management](../a/active_management.md) due to reduced trading activity and lower [fund](../f/fund.md) management expenses. -2. **[Transparency](../t/transparency.md)**: [Index](../i/index.md) funds are highly transparent as the [index](../i/index.md)'s composition and weighting are public knowledge. +2. **[Transparency](../t/transparency.md)**: [Index](../i/index_instrument.md) funds are highly transparent as the [index](../i/index_instrument.md)'s composition and weighting are public knowledge. -3. **Performance**: Historically, many [index](../i/index.md) funds have outperformed actively managed funds over the long term due to lower costs and the difficulty for active managers to consistently beat the [market](../m/market.md). +3. **Performance**: Historically, many [index](../i/index_instrument.md) funds have outperformed actively managed funds over the long term due to lower costs and the difficulty for active managers to consistently beat the [market](../m/market.md). -4. **[Diversification](../d/diversification.md)**: [Index](../i/index.md) funds provide broad [market exposure](../m/market_exposure.md), which can reduce individual stock [risk](../r/risk.md). +4. **[Diversification](../d/diversification.md)**: [Index](../i/index_instrument.md) funds provide broad [market exposure](../m/market_exposure.md), which can reduce individual stock [risk](../r/risk.md). ### Risks Associated with Index Tracking -1. **[Tracking Error](../t/tracking_error.md)**: Despite best efforts, there can be differences between the [fund](../f/fund.md)'s performance and the [index](../i/index.md)'s performance due to [execution](../e/execution.md) costs, [fund](../f/fund.md) fees, and other factors. +1. **[Tracking Error](../t/tracking_error.md)**: Despite best efforts, there can be differences between the [fund](../f/fund.md)'s performance and the [index](../i/index_instrument.md)'s performance due to [execution](../e/execution.md) costs, [fund](../f/fund.md) fees, and other factors. -2. **[Market Risk](../m/market_risk.md)**: [Index](../i/index.md) funds are fully exposed to [market](../m/market.md) movements. If the [index](../i/index.md) performs poorly, so [will](../w/will.md) the [index fund](../i/index_fund.md). +2. **[Market Risk](../m/market_risk.md)**: [Index](../i/index_instrument.md) funds are fully exposed to [market](../m/market.md) movements. If the [index](../i/index_instrument.md) performs poorly, so [will](../w/will.md) the [index fund](../i/index_fund.md). -3. **Lack of Flexibility**: In volatile markets, [index](../i/index.md) funds are unable to make tactical adjustments to avoid losses from certain [stocks](../s/stock.md) or sectors. +3. **Lack of Flexibility**: In volatile markets, [index](../i/index_instrument.md) funds are unable to make tactical adjustments to avoid losses from certain [stocks](../s/stock.md) or sectors. 4. **[Counterparty Risk](../c/counterparty_risk.md)**: Especially relevant for synthetic replication, this involves the [risk](../r/risk.md) that the other party in a financial [derivative](../d/derivative.md) defaults. ### Key Industry Players -Several companies are notable for their [index](../i/index.md) tracking strategies. A few of the key players include: +Several companies are notable for their [index](../i/index_instrument.md) tracking strategies. A few of the key players include: -- **Vanguard**: Known for pioneering [index](../i/index.md) funds, Vanguard offers a wide [range](../r/range.md) of [index](../i/index.md)-tracking products. [Visit Vanguard](https://www.vanguard.com) -- **BlackRock**: Through its [iShares](../i/ishares.md) brand, BlackRock provides a broad array of [index](../i/index.md) funds and ETFs. [Visit BlackRock](https://www.blackrock.com) -- **State Street Global Advisors (SSGA)**: As a prominent provider of ETFs under the SPDR brand, SSGA offers extensive [index](../i/index.md) tracking solutions. [Visit SSGA](https://www.ssga.com) -- **[Charles Schwab](../c/charles_schwab.md)**: Offers a variety of low-cost [index](../i/index.md) funds tailored to retail investors. [Visit Charles Schwab](https://www.schwab.com) +- **Vanguard**: Known for pioneering [index](../i/index_instrument.md) funds, Vanguard offers a wide [range](../r/range.md) of [index](../i/index_instrument.md)-tracking products. [Visit Vanguard](https://www.vanguard.com) +- **BlackRock**: Through its [iShares](../i/ishares.md) brand, BlackRock provides a broad array of [index](../i/index_instrument.md) funds and ETFs. [Visit BlackRock](https://www.blackrock.com) +- **State Street Global Advisors (SSGA)**: As a prominent provider of ETFs under the SPDR brand, SSGA offers extensive [index](../i/index_instrument.md) tracking solutions. [Visit SSGA](https://www.ssga.com) +- **[Charles Schwab](../c/charles_schwab.md)**: Offers a variety of low-cost [index](../i/index_instrument.md) funds tailored to retail investors. [Visit Charles Schwab](https://www.schwab.com) - **Fidelity**: Provides both traditional mutual funds and ETFs that track an assortment of indices. [Visit Fidelity](https://www.fidelity.com) ### Conclusion -[Index](../i/index.md) tracking strategies provide a pragmatic approach for investors seeking to achieve [market](../m/market.md) returns with lower costs and higher [transparency](../t/transparency.md). They [offer](../o/offer.md) substantial benefits, including broad [diversification](../d/diversification.md) and historical performance advantages. However, investors should also be aware of the inherent risks, such as [tracking error](../t/tracking_error.md) and [market risk](../m/market_risk.md), to make informed investment decisions. +[Index](../i/index_instrument.md) tracking strategies provide a pragmatic approach for investors seeking to achieve [market](../m/market.md) returns with lower costs and higher [transparency](../t/transparency.md). They [offer](../o/offer.md) substantial benefits, including broad [diversification](../d/diversification.md) and historical performance advantages. However, investors should also be aware of the inherent risks, such as [tracking error](../t/tracking_error.md) and [market risk](../m/market_risk.md), to make informed investment decisions. -These strategies continue to evolve with advancements in financial technology and [risk management](../r/risk_management.md) practices, promising more efficient and cost-effective solutions for investors. By understanding the different methodologies and their unique advantages and risks, investors can better navigate the complex landscape of [index](../i/index.md) tracking to align their investments with their financial goals. +These strategies continue to evolve with advancements in financial technology and [risk management](../r/risk_management.md) practices, promising more efficient and cost-effective solutions for investors. By understanding the different methodologies and their unique advantages and risks, investors can better navigate the complex landscape of [index](../i/index_instrument.md) tracking to align their investments with their financial goals. diff --git a/en/pedia/i/index_volatility_trading.md b/en/pedia/i/index_volatility_trading.md index 2d1459bb..88feb931 100644 --- a/en/pedia/i/index_volatility_trading.md +++ b/en/pedia/i/index_volatility_trading.md @@ -1,6 +1,6 @@ # Index Volatility Trading -[Index](../i/index.md) [Volatility](../v/volatility.md) Trading, sometimes referred to as [Volatility](../v/volatility.md) [Index](../i/index.md) Trading or [Volatility](../v/volatility.md)-Based Trading, is a strategy used by traders and investors which focuses on the fluctuation of [market](../m/market.md) indices. This strategy is particularly popular among those who prefer to [capitalize](../c/capitalize.md) on short-term [market](../m/market.md) movements and the [market](../m/market.md)'s inherent [volatility](../v/volatility.md). Let's delve deeper into the various aspects of [Index](../i/index.md) [Volatility](../v/volatility.md) Trading. +[Index](../i/index_instrument.md) [Volatility](../v/volatility.md) Trading, sometimes referred to as [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) Trading or [Volatility](../v/volatility.md)-Based Trading, is a strategy used by traders and investors which focuses on the fluctuation of [market](../m/market.md) indices. This strategy is particularly popular among those who prefer to [capitalize](../c/capitalize.md) on short-term [market](../m/market.md) movements and the [market](../m/market.md)'s inherent [volatility](../v/volatility.md). Let's delve deeper into the various aspects of [Index](../i/index_instrument.md) [Volatility](../v/volatility.md) Trading. ## What is Volatility? @@ -10,19 +10,19 @@ ### CBOE Volatility Index (VIX) -The most well-known [volatility](../v/volatility.md) [index](../i/index.md) is the CBOE [Volatility](../v/volatility.md) [Index](../i/index.md) (VIX), often referred to as the "fear gauge," because it represents [market](../m/market.md) participants' expectations of future [volatility](../v/volatility.md). Specifically, it reflects the expected [volatility](../v/volatility.md) of the S&P 500 [Index](../i/index.md) over the next 30 days. The VIX is calculated using the prices of S&P 500 [index options](../i/index_options.md). +The most well-known [volatility](../v/volatility.md) [index](../i/index_instrument.md) is the CBOE [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX), often referred to as the "fear gauge," because it represents [market](../m/market.md) participants' expectations of future [volatility](../v/volatility.md). Specifically, it reflects the expected [volatility](../v/volatility.md) of the S&P 500 [Index](../i/index_instrument.md) over the next 30 days. The VIX is calculated using the prices of S&P 500 [index options](../i/index_options.md). Link: [CBOE VIX](https://www.cboe.com/tradable_products/vix/) ### Other Global Volatility Indices -1. **VSTOXX**: The [EURO](../e/euro.md) STOXX 50 [Volatility](../v/volatility.md) [Index](../i/index.md) measures the [Eurozone](../e/eurozone.md)'s [stock market](../s/stock_market.md) [volatility](../v/volatility.md) and is comparable to the VIX for European markets. +1. **VSTOXX**: The [EURO](../e/euro.md) STOXX 50 [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) measures the [Eurozone](../e/eurozone.md)'s [stock market](../s/stock_market.md) [volatility](../v/volatility.md) and is comparable to the VIX for European markets. Link: [VSTOXX](https://www.stoxx.com/indices/index-information.html?symbol=V2TX) -2. **VXJ**: The [Nikkei](../n/nikkei.md) [Volatility](../v/volatility.md) [Index](../i/index.md), also known as VXJ, measures the expected [volatility](../v/volatility.md) of the [Nikkei](../n/nikkei.md) 225 [index](../i/index.md) in Japan. +2. **VXJ**: The [Nikkei](../n/nikkei.md) [Volatility](../v/volatility.md) [Index](../i/index_instrument.md), also known as VXJ, measures the expected [volatility](../v/volatility.md) of the [Nikkei](../n/nikkei.md) 225 [index](../i/index_instrument.md) in Japan. -3. **VIXY**: The iPath Series B S&P 500 VIX Short-Term [Futures](../f/futures.md) ETN provides exposure to the VIX [Index](../i/index.md) through short-term [futures contracts](../f/futures_contracts.md) on the [index](../i/index.md). +3. **VIXY**: The iPath Series B S&P 500 VIX Short-Term [Futures](../f/futures.md) ETN provides exposure to the VIX [Index](../i/index_instrument.md) through short-term [futures contracts](../f/futures_contracts.md) on the [index](../i/index_instrument.md). Link: [VIXY](https://www.barclaysinvestments.com/etns/product-details/?name=VIXY) @@ -101,4 +101,4 @@ Advanced analytical tools can help traders analyze [market](../m/market.md) cond ## Conclusion -[Index](../i/index.md) [Volatility](../v/volatility.md) Trading is a sophisticated strategy that offers the potential for substantial profits, especially in turbulent [market](../m/market.md) conditions. However, it requires a deep understanding of [market dynamics](../m/market_dynamics.md), precise timing, and careful [risk management](../r/risk_management.md). By utilizing a combination of long and short [volatility](../v/volatility.md) strategies, [option spreads](../o/option_spreads.md), and hedging techniques, traders can navigate the complexities of [volatility](../v/volatility.md) trading to achieve their investment objectives. \ No newline at end of file +[Index](../i/index_instrument.md) [Volatility](../v/volatility.md) Trading is a sophisticated strategy that offers the potential for substantial profits, especially in turbulent [market](../m/market.md) conditions. However, it requires a deep understanding of [market dynamics](../m/market_dynamics.md), precise timing, and careful [risk management](../r/risk_management.md). By utilizing a combination of long and short [volatility](../v/volatility.md) strategies, [option spreads](../o/option_spreads.md), and hedging techniques, traders can navigate the complexities of [volatility](../v/volatility.md) trading to achieve their investment objectives. \ No newline at end of file diff --git a/en/pedia/i/indexation.md b/en/pedia/i/indexation.md index b0399a67..1eb140e8 100644 --- a/en/pedia/i/indexation.md +++ b/en/pedia/i/indexation.md @@ -1,10 +1,10 @@ # Indexation -Indexation is a fundamental concept in the realm of [financial markets](../f/financial_market.md) and algo trading. It primarily refers to a method of adjusting [income](../i/income.md) payments by means of a price [index](../i/index.md), in [order](../o/order.md) to maintain the [purchasing power](../p/purchasing_power.md) of the public after [inflation](../i/inflation.md). [Indexing](../i/indexing.md) is also a critical tool in [market](../m/market.md) analysis and [portfolio management](../p/par.md) within the broader landscape of [finance](../f/finance.md). It can be a powerful mechanism for structuring investment strategies, creating benchmarks, and automating trading practices. +Indexation is a fundamental concept in the realm of [financial markets](../f/financial_market.md) and algo trading. It primarily refers to a method of adjusting [income](../i/income.md) payments by means of a price [index](../i/index_instrument.md), in [order](../o/order.md) to maintain the [purchasing power](../p/purchasing_power.md) of the public after [inflation](../i/inflation.md). [Indexing](../i/indexing.md) is also a critical tool in [market](../m/market.md) analysis and [portfolio management](../p/par.md) within the broader landscape of [finance](../f/finance.md). It can be a powerful mechanism for structuring investment strategies, creating benchmarks, and automating trading practices. ## Definition of Indexation -Indexation involves the adjustment of the [value](../v/value.md) of a variable, like wages, [interest](../i/interest.md) rates or investment returns, to account for changes in the [cost of living](../c/cost_of_living.md), generally measured by the Consumer Price [Index](../i/index.md) (CPI) or other similar indicators. In many countries, indexation can be applied to [tax brackets](../t/tax_brackets.md), pensions, rents, and various other financial metrics to protect against erosion from [inflation](../i/inflation.md). +Indexation involves the adjustment of the [value](../v/value.md) of a variable, like wages, [interest](../i/interest.md) rates or investment returns, to account for changes in the [cost of living](../c/cost_of_living.md), generally measured by the Consumer Price [Index](../i/index_instrument.md) (CPI) or other similar indicators. In many countries, indexation can be applied to [tax brackets](../t/tax_brackets.md), pensions, rents, and various other financial metrics to protect against erosion from [inflation](../i/inflation.md). In the context of investment and [finance](../f/finance.md), indexation is about tracking the performance of a specific group of assets, representative of a [market](../m/market.md) or a section of the [market](../m/market.md). This is done via indexes such as the S&P 500, FTSE 100, and others. These indexes serve as benchmarks against which the performance of portfolios, mutual funds, and ETFs can be measured. @@ -21,34 +21,34 @@ Economic indexation is primarily used to adjust various financial instruments an Financial indexation pertains to the construction and use of financial indexes that aggregate the performance of particular segments of the [market](../m/market.md). Common forms include: - **[Stock Market](../s/stock_market.md) Indexes**: Such as the Dow Jones Industrial Average (DJIA), [Nasdaq](../n/nasdaq.md) Composite, and S&P 500. -- **[Bond Market](../b/bond_market.md) Indexes**: Including indices that track the performance of bonds, like the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index.md). +- **[Bond Market](../b/bond_market.md) Indexes**: Including indices that track the performance of bonds, like the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md). - **[Commodity](../c/commodity.md) Indexes**: Tracking commodities like the S&P GSCI. ## Historical Background -The concept of financial indexation dates back to the early 20th century. One of the earliest examples is the Dow Jones Industrial Average (DJIA), created by Charles Dow in 1896. This [index](../i/index.md) was designed to provide a snapshot of the overall performance of the industrial sector within the U.S. [economy](../e/economy.md). Over time, the proliferation of indexes grew, fueled by the rising [demand](../d/demand.md) for systematic ways to track and measure [market](../m/market.md) performance. +The concept of financial indexation dates back to the early 20th century. One of the earliest examples is the Dow Jones Industrial Average (DJIA), created by Charles Dow in 1896. This [index](../i/index_instrument.md) was designed to provide a snapshot of the overall performance of the industrial sector within the U.S. [economy](../e/economy.md). Over time, the proliferation of indexes grew, fueled by the rising [demand](../d/demand.md) for systematic ways to track and measure [market](../m/market.md) performance. -The late 20th century saw indexes becoming integral tools in the financial [industry](../i/industry.md). The introduction of [Index](../i/index.md) Funds by [John Bogle](../j/john_bogle.md) in 1976 with the launch of the Vanguard 500 [Index Fund](../i/index_fund.md) marked the beginning of passive [index](../i/index.md)-based [investing](../i/investing.md), representing a significant shift from [active management](../a/active_management.md) strategies where [fund](../f/fund.md) managers selected individual [stocks](../s/stock.md). +The late 20th century saw indexes becoming integral tools in the financial [industry](../i/industry.md). The introduction of [Index](../i/index_instrument.md) Funds by [John Bogle](../j/john_bogle.md) in 1976 with the launch of the Vanguard 500 [Index Fund](../i/index_fund.md) marked the beginning of passive [index](../i/index_instrument.md)-based [investing](../i/investing.md), representing a significant shift from [active management](../a/active_management.md) strategies where [fund](../f/fund.md) managers selected individual [stocks](../s/stock.md). ## Importance in Algorithmic Trading -Indexation is extremely relevant in [algorithmic trading](../a/accountability.md), where strategies often involve benchmarking against [market](../m/market.md) indexes. Algorithms can execute high-frequency trades based on [index](../i/index.md) compositions and rebalance portfolios to closely adhere to the performance of these indexes. +Indexation is extremely relevant in [algorithmic trading](../a/accountability.md), where strategies often involve benchmarking against [market](../m/market.md) indexes. Algorithms can execute high-frequency trades based on [index](../i/index_instrument.md) compositions and rebalance portfolios to closely adhere to the performance of these indexes. ### Key Applications -1. **Creating [Passive Investment Strategies](../p/passive_investment_strategies.md)**: Algorithms can be programmed to replicate [index](../i/index.md) returns through ETFs or [index](../i/index.md) funds. These strategies effectively mirror the [risk](../r/risk.md) and [return](../r/return.md) characteristics over various [market cycles](../m/market_cycles.md). +1. **Creating [Passive Investment Strategies](../p/passive_investment_strategies.md)**: Algorithms can be programmed to replicate [index](../i/index_instrument.md) returns through ETFs or [index](../i/index_instrument.md) funds. These strategies effectively mirror the [risk](../r/risk.md) and [return](../r/return.md) characteristics over various [market cycles](../m/market_cycles.md). -2. **[Portfolio Rebalancing](../p/portfolio_rebalancing.md)**: [Automated trading systems](../a/automated_trading_systems.md) can continuously monitor and adjust the composition of a portfolio to ensure it remains aligned with a chosen [index](../i/index.md). +2. **[Portfolio Rebalancing](../p/portfolio_rebalancing.md)**: [Automated trading systems](../a/automated_trading_systems.md) can continuously monitor and adjust the composition of a portfolio to ensure it remains aligned with a chosen [index](../i/index_instrument.md). -3. **[Market](../m/market.md) [Arbitrage](../a/arbitrage.md)**: Algos can exploit price discrepancies between the [index](../i/index.md) and its [underlying](../u/underlying.md) assets, providing opportunities for [arbitrage](../a/arbitrage.md) and ensuring efficient [market](../m/market.md) operations. +3. **[Market](../m/market.md) [Arbitrage](../a/arbitrage.md)**: Algos can exploit price discrepancies between the [index](../i/index_instrument.md) and its [underlying](../u/underlying.md) assets, providing opportunities for [arbitrage](../a/arbitrage.md) and ensuring efficient [market](../m/market.md) operations. -4. **[Index](../i/index.md) [Derivatives](../d/derivatives.md) Trading**: Algorithmic strategies are widely employed in trading [futures](../f/futures.md), [options](../o/options.md), and other [derivatives](../d/derivatives.md) of indexes, [offering](../o/offering.md) significant [liquidity](../l/liquidity.md) and [market depth](../m/market_depth.md). +4. **[Index](../i/index_instrument.md) [Derivatives](../d/derivatives.md) Trading**: Algorithmic strategies are widely employed in trading [futures](../f/futures.md), [options](../o/options.md), and other [derivatives](../d/derivatives.md) of indexes, [offering](../o/offering.md) significant [liquidity](../l/liquidity.md) and [market depth](../m/market_depth.md). ## Key Players in Indexation Several prominent financial institutions and companies lead the development, maintenance, and use of financial indexes. These include: -- **Standard & Poor's (S&P)**: Known for the S&P 500 [index](../i/index.md), S&P provides a broad array of indexes covering various markets and [asset](../a/asset.md) classes. [Standard & Poor's](https://www.spglobal.com/spdji/en/) +- **Standard & Poor's (S&P)**: Known for the S&P 500 [index](../i/index_instrument.md), S&P provides a broad array of indexes covering various markets and [asset](../a/asset.md) classes. [Standard & Poor's](https://www.spglobal.com/spdji/en/) - **MSCI Inc.**: Offers global [equity](../e/equity.md), [fixed income](../f/fixed_income.md), [hedge fund](../h/hedge_fund.md) [stock market](../s/stock_market.md) indexes, and multi-[asset](../a/asset.md) [portfolio analysis](../p/portfolio_analysis.md) tools. [MSCI](https://www.msci.com) @@ -70,9 +70,9 @@ Modern indexation and related [algorithmic trading](../a/accountability.md) cann Despite its advantages, indexation is not without its challenges: -- **[Market](../m/market.md) [Volatility](../v/volatility.md)**: Extreme [market](../m/market.md) movements can lead to significant tracking errors. Indexation assumes that the composition of an [index](../i/index.md) is a fair representation of the [market](../m/market.md) or [market segment](../m/market_segment.md)'s performance, but during volatile periods, this assumption may not [hold](../h/hold.md). +- **[Market](../m/market.md) [Volatility](../v/volatility.md)**: Extreme [market](../m/market.md) movements can lead to significant tracking errors. Indexation assumes that the composition of an [index](../i/index_instrument.md) is a fair representation of the [market](../m/market.md) or [market segment](../m/market_segment.md)'s performance, but during volatile periods, this assumption may not [hold](../h/hold.md). -- **[Liquidity](../l/liquidity.md) Concerns**: Some indexes include securities that may be illiquid, making it challenging for [index](../i/index.md) funds and ETFs to closely replicate the [index](../i/index.md). +- **[Liquidity](../l/liquidity.md) Concerns**: Some indexes include securities that may be illiquid, making it challenging for [index](../i/index_instrument.md) funds and ETFs to closely replicate the [index](../i/index_instrument.md). - **Regulatory Hurdles**: Different jurisdictions have different policies regarding indexes and related financial products, complicating global [trading strategies](../t/trading_strategies.md). @@ -84,9 +84,9 @@ The future of indexation looks promising, with several trends shaping its evolut - **Custom Indexes**: There is growing [demand](../d/demand.md) for custom indexes tailored to specific investment objectives, such as ESG (Environmental, Social, Governance) criteria. -- **[Blockchain](../b/blockchain_in_trading.md)**: [Blockchain](../b/blockchain_in_trading.md) technology presents opportunities for more transparent and efficient [index](../i/index.md) management through decentralization. +- **[Blockchain](../b/blockchain_in_trading.md)**: [Blockchain](../b/blockchain_in_trading.md) technology presents opportunities for more transparent and efficient [index](../i/index_instrument.md) management through decentralization. -- **[Smart Beta](../s/smart_beta.md)**: An approach combining the benefits of passive and [active management](../a/active_management.md), seeking to [outperform](../o/outperform.md) traditional [benchmark](../b/benchmark.md) indexes by weighting [index](../i/index.md) components based on alternative criteria like [volatility](../v/volatility.md), [momentum](../m/momentum.md), or dividends. +- **[Smart Beta](../s/smart_beta.md)**: An approach combining the benefits of passive and [active management](../a/active_management.md), seeking to [outperform](../o/outperform.md) traditional [benchmark](../b/benchmark.md) indexes by weighting [index](../i/index_instrument.md) components based on alternative criteria like [volatility](../v/volatility.md), [momentum](../m/momentum.md), or dividends. - **[Globalization](../g/globalization.md) of Indexes**: With increasing interconnectedness of global markets, indexes that blend various international markets are gaining traction. diff --git a/en/pedia/i/indexed_annuity.md b/en/pedia/i/indexed_annuity.md index 1bb63b37..04b08521 100644 --- a/en/pedia/i/indexed_annuity.md +++ b/en/pedia/i/indexed_annuity.md @@ -8,26 +8,26 @@ An indexed annuity, also known as an [equity](../e/equity.md) indexed annuity or When you purchase an indexed annuity, you make a [premium](../p/premium.md) [payment](../p/payment.md), which can be in the form of a single lump sum or a series of payments over time. These payments accumulate in the annuity contract, and future payouts are based on the [value](../v/value.md) of these accumulated funds. ### Indexing Method -The defining characteristic of indexed annuities is the way [interest](../i/interest.md) credits are calculated. Rather than receiving a [fixed interest rate](../f/fixed_interest_rate.md), as with traditional fixed annuities, the credited [interest](../i/interest.md) in indexed annuities is linked to the performance of a particular [index](../i/index.md). Commonly chosen indices include: +The defining characteristic of indexed annuities is the way [interest](../i/interest.md) credits are calculated. Rather than receiving a [fixed interest rate](../f/fixed_interest_rate.md), as with traditional fixed annuities, the credited [interest](../i/interest.md) in indexed annuities is linked to the performance of a particular [index](../i/index_instrument.md). Commonly chosen indices include: - S&P 500 - [NASDAQ](../n/nasdaq.md)-100 - Russell 2000 - Dow Jones Industrial Average -Each indexed annuity contract [will](../w/will.md) specify how the [index](../i/index.md) [interest](../i/interest.md) is computed. The popular methods include annual point-to-point, monthly point-to-point, and monthly averaging. +Each indexed annuity contract [will](../w/will.md) specify how the [index](../i/index_instrument.md) [interest](../i/interest.md) is computed. The popular methods include annual point-to-point, monthly point-to-point, and monthly averaging. ### Participation Rate -The [participation rate](../p/participation_rate.md) determines the percentage of the [index](../i/index.md)'s [gain](../g/gain.md) that [will](../w/will.md) be credited to the annuity. For example, if the [index](../i/index.md) increases by 10% and the [participation rate](../p/participation_rate.md) is 80%, the annuity [will](../w/will.md) be credited with 8% [interest](../i/interest.md). +The [participation rate](../p/participation_rate.md) determines the percentage of the [index](../i/index_instrument.md)'s [gain](../g/gain.md) that [will](../w/will.md) be credited to the annuity. For example, if the [index](../i/index_instrument.md) increases by 10% and the [participation rate](../p/participation_rate.md) is 80%, the annuity [will](../w/will.md) be credited with 8% [interest](../i/interest.md). ### Cap Rate -Some indexed annuities have a cap rate, which limits the maximum [interest rate](../i/interest_rate.md) that can be credited in a given period. If the cap rate is 6%, and the [index](../i/index.md) [gain](../g/gain.md) calculates to 8%, only 6% [will](../w/will.md) be credited to the annuity. +Some indexed annuities have a cap rate, which limits the maximum [interest rate](../i/interest_rate.md) that can be credited in a given period. If the cap rate is 6%, and the [index](../i/index_instrument.md) [gain](../g/gain.md) calculates to 8%, only 6% [will](../w/will.md) be credited to the annuity. ### Floor Rate -On the [flip](../f/flip.md) side, many indexed annuities include a floor rate, which ensures that the annuity cannot lose [value](../v/value.md) due to negative [market](../m/market.md) performance. Typically, this floor rate is set at 0%, meaning you won't lose [money](../m/money.md) even if the [index](../i/index.md) drops in [value](../v/value.md), although you also won't earn [interest](../i/interest.md) during that period. +On the [flip](../f/flip.md) side, many indexed annuities include a floor rate, which ensures that the annuity cannot lose [value](../v/value.md) due to negative [market](../m/market.md) performance. Typically, this floor rate is set at 0%, meaning you won't lose [money](../m/money.md) even if the [index](../i/index_instrument.md) drops in [value](../v/value.md), although you also won't earn [interest](../i/interest.md) during that period. ### Index Spread -The [index](../i/index.md) spread is a [fee](../f/fee.md) deducted from the indexed [interest](../i/interest.md) calculated. For instance, if the [index](../i/index.md) [gain](../g/gain.md) is 10%, and the spread is 2%, the net [interest](../i/interest.md) credited would be 8%. +The [index](../i/index_instrument.md) spread is a [fee](../f/fee.md) deducted from the indexed [interest](../i/interest.md) calculated. For instance, if the [index](../i/index_instrument.md) [gain](../g/gain.md) is 10%, and the spread is 2%, the net [interest](../i/interest.md) credited would be 8%. ## Advantages of Indexed Annuities @@ -60,7 +60,7 @@ Because of participation rates and cap rates, the [investor](../i/investor.md) m ## How Indexed Annuities Work ### Accumulation Phase -When an indexed annuity is initially funded, it enters the [accumulation phase](../a/accumulation_phase.md), during which the [premium](../p/premium.md) payments grow based on the chosen [index](../i/index.md)'s performance. At the end of each [interest](../i/interest.md) crediting period, the account [value](../v/value.md) is updated based on the credited [interest](../i/interest.md) calculated using the chosen [index](../i/index.md) method, [participation rate](../p/participation_rate.md), cap rate, and any applicable spread. +When an indexed annuity is initially funded, it enters the [accumulation phase](../a/accumulation_phase.md), during which the [premium](../p/premium.md) payments grow based on the chosen [index](../i/index_instrument.md)'s performance. At the end of each [interest](../i/interest.md) crediting period, the account [value](../v/value.md) is updated based on the credited [interest](../i/interest.md) calculated using the chosen [index](../i/index_instrument.md) method, [participation rate](../p/participation_rate.md), cap rate, and any applicable spread. ### Annuitization Phase Once the [accumulation phase](../a/accumulation_phase.md) is complete, the annuity enters the [annuitization](../a/annuitization.md) phase, during which the accumulated [value](../v/value.md) is converted into a series of periodic payments. The [payout](../p/payout.md) structure is determined by the annuity contract's terms and can [range](../r/range.md) from a lifetime [income](../i/income.md) stream to a fixed number of annual payments. @@ -69,7 +69,7 @@ Once the [accumulation phase](../a/accumulation_phase.md) is complete, the annui Several financial institutions and [insurance](../i/insurance.md) companies [offer](../o/offer.md) indexed annuities. Some of the major players in this [market](../m/market.md) include: -- **Allianz [Life Insurance](../l/life_insurance.md) Company of North America**: Provides a variety of fixed [index](../i/index.md) annuities designed to help customers meet their retirement [income](../i/income.md) needs. +- **Allianz [Life Insurance](../l/life_insurance.md) Company of North America**: Provides a variety of fixed [index](../i/index_instrument.md) annuities designed to help customers meet their retirement [income](../i/income.md) needs. [Allianz Life](https://www.allianzlife.com/) - **American [Equity](../e/equity.md) Investment Life Holding**: Offers various indexed annuity products focusing on retirement [security](../s/security.md) and policyholder benefits. diff --git a/en/pedia/i/indexing.md b/en/pedia/i/indexing.md index 21261572..321f6361 100644 --- a/en/pedia/i/indexing.md +++ b/en/pedia/i/indexing.md @@ -20,47 +20,47 @@ Indices can be categorized based on the [asset class](../a/asset_class.md) they [Bond](../b/bond.md) indices measure the performance of various types of bonds, such as: -- **[Bloomberg](../b/bloomberg.md) Barclays US Aggregate [Bond](../b/bond.md) [Index](../i/index.md)**: Tracks a broad spectrum of U.S. investment-grade bonds. -- **ICE [U.S. Treasury](../u/u.s._treasury.md) 20+ Year [Bond](../b/bond.md) [Index](../i/index.md)**: Focuses on long-term [U.S. Treasury](../u/u.s._treasury.md) bonds. +- **[Bloomberg](../b/bloomberg.md) Barclays US Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md)**: Tracks a broad spectrum of U.S. investment-grade bonds. +- **ICE [U.S. Treasury](../u/u.s._treasury.md) 20+ Year [Bond](../b/bond.md) [Index](../i/index_instrument.md)**: Focuses on long-term [U.S. Treasury](../u/u.s._treasury.md) bonds. ### Commodity Indices [Commodity](../c/commodity.md) indices are designed to measure the performance of specific commodities, examples include: -- **S&P GSCI**: A diversified [commodity](../c/commodity.md) [index](../i/index.md) that includes a broad [range](../r/range.md) of [commodity futures](../c/commodity_futures.md) contracts. -- **[Bloomberg](../b/bloomberg.md) [Commodity](../c/commodity.md) [Index](../i/index.md) (BCOM)**: Tracks the performance of major commodities in the energy, metals, and agriculture sectors. +- **S&P GSCI**: A diversified [commodity](../c/commodity.md) [index](../i/index_instrument.md) that includes a broad [range](../r/range.md) of [commodity futures](../c/commodity_futures.md) contracts. +- **[Bloomberg](../b/bloomberg.md) [Commodity](../c/commodity.md) [Index](../i/index_instrument.md) (BCOM)**: Tracks the performance of major commodities in the energy, metals, and agriculture sectors. ### Sector-Specific Indices These indices focus on specific industries or sectors within the [economy](../e/economy.md). Examples are: -- **MSCI World [Energy Sector](../e/energy_sector.md) [Index](../i/index.md)**: Measures the performance of the [energy sector](../e/energy_sector.md) across developed markets worldwide. -- **PHLX Semiconductor Sector [Index](../i/index.md) (SOX)**: Tracks the performance of companies in the semiconductor [industry](../i/industry.md). +- **MSCI World [Energy Sector](../e/energy_sector.md) [Index](../i/index_instrument.md)**: Measures the performance of the [energy sector](../e/energy_sector.md) across developed markets worldwide. +- **PHLX Semiconductor Sector [Index](../i/index_instrument.md) (SOX)**: Tracks the performance of companies in the semiconductor [industry](../i/industry.md). ## The Concept of Indexing in Investing ### Passive Management -Indexing as an [investment strategy](../i/investment_strategy.md) involves constructing a portfolio to match the constituents of a [market index](../m/market_index.md). This approach is often referred to as **passive management**. Unlike [active management](../a/active_management.md), which seeks to [outperform](../o/outperform.md) the [market](../m/market.md) through stock picking and [market timing](../m/market_timing.md), passive management aims to replicate the [risk](../r/risk.md) and [return](../r/return.md) profile of the target [index](../i/index.md). +Indexing as an [investment strategy](../i/investment_strategy.md) involves constructing a portfolio to match the constituents of a [market index](../m/market_index.md). This approach is often referred to as **passive management**. Unlike [active management](../a/active_management.md), which seeks to [outperform](../o/outperform.md) the [market](../m/market.md) through stock picking and [market timing](../m/market_timing.md), passive management aims to replicate the [risk](../r/risk.md) and [return](../r/return.md) profile of the target [index](../i/index_instrument.md). ### Index Funds and ETFs -Two common investment vehicles that utilize indexing strategies are **[index](../i/index.md) funds** and **[Exchange](../e/exchange.md)-Traded Funds (ETFs)**. +Two common investment vehicles that utilize indexing strategies are **[index](../i/index_instrument.md) funds** and **[Exchange](../e/exchange.md)-Traded Funds (ETFs)**. -- **[Index](../i/index.md) Funds**: Mutual funds designed to follow the performance of a specific [index](../i/index.md). They [offer](../o/offer.md) investors a cost-effective way to [gain](../g/gain.md) broad [market exposure](../m/market_exposure.md). Examples include the **Vanguard 500 [Index Fund](../i/index_fund.md)** and the **Fidelity Total [Market Index](../m/market_index.md) [Fund](../f/fund.md)**. +- **[Index](../i/index_instrument.md) Funds**: Mutual funds designed to follow the performance of a specific [index](../i/index_instrument.md). They [offer](../o/offer.md) investors a cost-effective way to [gain](../g/gain.md) broad [market exposure](../m/market_exposure.md). Examples include the **Vanguard 500 [Index Fund](../i/index_fund.md)** and the **Fidelity Total [Market Index](../m/market_index.md) [Fund](../f/fund.md)**. -- **ETFs**: Similar to [index](../i/index.md) funds but traded like [stocks](../s/stock.md) on an [exchange](../e/exchange.md). Examples include the **SPDR S&P 500 ETF (SPY)** and the **[iShares](../i/ishares.md) Russell 2000 ETF (IWM)**. +- **ETFs**: Similar to [index](../i/index_instrument.md) funds but traded like [stocks](../s/stock.md) on an [exchange](../e/exchange.md). Examples include the **SPDR S&P 500 ETF (SPY)** and the **[iShares](../i/ishares.md) Russell 2000 ETF (IWM)**. ### Benefits of Indexing -1. **Cost [Efficiency](../e/efficiency.md)**: [Index](../i/index.md) funds and ETFs often have lower [expense](../e/expense.md) ratios compared to actively managed funds. +1. **Cost [Efficiency](../e/efficiency.md)**: [Index](../i/index_instrument.md) funds and ETFs often have lower [expense](../e/expense.md) ratios compared to actively managed funds. 2. **[Diversification](../d/diversification.md)**: By replicating the performance of an entire [market](../m/market.md) or sector, indexing inherently provides broad [diversification](../d/diversification.md). 3. **[Transparency](../t/transparency.md)**: The composition and [rebalancing rules](../r/rebalancing_rules.md) of indices are publicly available, making the strategy highly transparent. 4. **Consistency**: Passive management strategies reduce the [variability](../v/variability.md) of returns due to human decision-making errors. ### Limitations of Indexing -1. **Lack of Flexibility**: [Index](../i/index.md) funds must adhere strictly to the [index](../i/index.md) composition, which may lead to missed opportunities to [capitalize](../c/capitalize.md) on [market](../m/market.md) inefficiencies. +1. **Lack of Flexibility**: [Index](../i/index_instrument.md) funds must adhere strictly to the [index](../i/index_instrument.md) composition, which may lead to missed opportunities to [capitalize](../c/capitalize.md) on [market](../m/market.md) inefficiencies. 2. **[Transaction Costs](../t/transaction_costs.md)**: While generally low, [transaction costs](../t/transaction_costs.md) for [rebalancing](../r/rebalancing.md) the portfolio can add up over time. 3. **Sectoral Risks**: If a [market](../m/market.md) or sector underperforms, the [index fund](../i/index_fund.md) [will](../w/will.md) mirror this poor performance. @@ -70,11 +70,11 @@ Two common investment vehicles that utilize indexing strategies are **[index](.. Indices serve as leading [economic indicators](../e/economic_indicators.md) that help policymakers and analysts gauge the health of the [economy](../e/economy.md). Examples include: -- **Consumer Price [Index](../i/index.md) (CPI)**: Measures the average change in prices paid by consumers over time for a [basket of goods](../b/basket_of_goods.md) and services. The **Bureau of Labor [Statistics](../s/statistics.md) (BLS)** provides data on CPI [here](https://www.bls.gov/cpi/). +- **Consumer Price [Index](../i/index_instrument.md) (CPI)**: Measures the average change in prices paid by consumers over time for a [basket of goods](../b/basket_of_goods.md) and services. The **Bureau of Labor [Statistics](../s/statistics.md) (BLS)** provides data on CPI [here](https://www.bls.gov/cpi/). -- **Producer Price [Index](../i/index.md) (PPI)**: Measures the average change in selling prices received by domestic producers for their output. +- **Producer Price [Index](../i/index_instrument.md) (PPI)**: Measures the average change in selling prices received by domestic producers for their output. -- **Gross Domestic Product (GDP) [Index](../i/index.md)**: Represents the total economic output of a country. +- **Gross Domestic Product (GDP) [Index](../i/index_instrument.md)**: Represents the total economic output of a country. ### Inflation Indexing @@ -98,9 +98,9 @@ Indices are constructed based on a set of predefined criteria which may include: Indices can be [weighted](../w/weighted.md) in different ways: -- **Price-[Weighted](../w/weighted.md)**: The [index](../i/index.md) [value](../v/value.md) is based on the price of its constituent [stocks](../s/stock.md). An example is the DJIA. -- **[Market](../m/market.md) Cap-[Weighted](../w/weighted.md)**: The [index](../i/index.md) [value](../v/value.md) is based on the [market capitalization](../m/market_capitalization.md) of its constituent [stocks](../s/stock.md). Examples include the S&P 500 and the [NASDAQ](../n/nasdaq.md) Composite. -- **Equal-[Weighted](../w/weighted.md)**: Each constituent in the [index](../i/index.md) has the same weight regardless of its size or price. +- **Price-[Weighted](../w/weighted.md)**: The [index](../i/index_instrument.md) [value](../v/value.md) is based on the price of its constituent [stocks](../s/stock.md). An example is the DJIA. +- **[Market](../m/market.md) Cap-[Weighted](../w/weighted.md)**: The [index](../i/index_instrument.md) [value](../v/value.md) is based on the [market capitalization](../m/market_capitalization.md) of its constituent [stocks](../s/stock.md). Examples include the S&P 500 and the [NASDAQ](../n/nasdaq.md) Composite. +- **Equal-[Weighted](../w/weighted.md)**: Each constituent in the [index](../i/index_instrument.md) has the same weight regardless of its size or price. ### Rebalancing @@ -114,9 +114,9 @@ Indices are periodically rebalanced to ensure they reflect current [market](../m Several organizations specialize in creating and maintaining indices, including: - **S&P Dow Jones Indices**: A division of S&P Global, they [offer](../o/offer.md) a wide [range](../r/range.md) of indices including the S&P 500 and the DJIA. More information can be found [here](https://www.spglobal.com/spdji/). -- **MSCI Inc.**: Provides indices covering global [equity](../e/equity.md) markets, including the MSCI World [Index](../i/index.md) and various sector-specific and region-specific indices. More details are available [here](https://www.msci.com/). +- **MSCI Inc.**: Provides indices covering global [equity](../e/equity.md) markets, including the MSCI World [Index](../i/index_instrument.md) and various sector-specific and region-specific indices. More details are available [here](https://www.msci.com/). - **[FTSE Russell](../f/ftse_russell.md)**: Responsible for the FTSE 100 and Russell 2000 indices. Visit their site [here](https://www.ftserussell.com/). -- **[Bloomberg](../b/bloomberg.md)**: Offers indices that span the [asset](../a/asset.md) classes such as [Bloomberg](../b/bloomberg.md) Barclays Aggregate [Bond](../b/bond.md) [Index](../i/index.md). Their official site is [here](https://www.bloomberg.com/professional/product/indices/). +- **[Bloomberg](../b/bloomberg.md)**: Offers indices that span the [asset](../a/asset.md) classes such as [Bloomberg](../b/bloomberg.md) Barclays Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md). Their official site is [here](https://www.bloomberg.com/professional/product/indices/). ## Real-World Applications @@ -126,15 +126,15 @@ Pension funds, endowments, and [insurance](../i/insurance.md) companies often us ### Individual Investors -[Index](../i/index.md) funds and ETFs [offer](../o/offer.md) individual investors an accessible way to diversify their portfolios and achieve [market](../m/market.md)-level returns with lower fees. The rise of robo-advisors, such as **Betterment** and **Wealthfront**, largely relies on ETF-based indexing strategies to provide customized, automated investment portfolios. You can learn more about Betterment [here](https://www.betterment.com/) and Wealthfront [here](https://www.wealthfront.com/). +[Index](../i/index_instrument.md) funds and ETFs [offer](../o/offer.md) individual investors an accessible way to diversify their portfolios and achieve [market](../m/market.md)-level returns with lower fees. The rise of robo-advisors, such as **Betterment** and **Wealthfront**, largely relies on ETF-based indexing strategies to provide customized, automated investment portfolios. You can learn more about Betterment [here](https://www.betterment.com/) and Wealthfront [here](https://www.wealthfront.com/). ### Algorithmic Trading -[Algorithmic trading strategies](../a/algorithmic_trading_strategies.md) often use indices as benchmarks to optimize buy and sell signals. Strategies may include statistical [arbitrage](../a/arbitrage.md), where traders exploit price discrepancies between an [index](../i/index.md) and related securities. Companies like **[QuantConnect](../q/quantconnect.md)** [offer](../o/offer.md) platforms that enable developers to create and backtest [algorithmic trading strategies](../a/algorithmic_trading_strategies.md) based on indices. More details can be found [here](https://www.quantconnect.com/). +[Algorithmic trading strategies](../a/algorithmic_trading_strategies.md) often use indices as benchmarks to optimize buy and sell signals. Strategies may include statistical [arbitrage](../a/arbitrage.md), where traders exploit price discrepancies between an [index](../i/index_instrument.md) and related securities. Companies like **[QuantConnect](../q/quantconnect.md)** [offer](../o/offer.md) platforms that enable developers to create and backtest [algorithmic trading strategies](../a/algorithmic_trading_strategies.md) based on indices. More details can be found [here](https://www.quantconnect.com/). ### Risk Management -Indices are also used in the context of [risk management](../r/risk_management.md) through the creation of [index](../i/index.md)-based [derivatives](../d/derivatives.md) such as [options](../o/options.md) and [futures](../f/futures.md). These financial instruments allow traders to [hedge](../h/hedge.md) against potential [market](../m/market.md) movements. Exchanges like the **Chicago Mercantile [Exchange](../e/exchange.md) (CME)** [offer](../o/offer.md) a [range](../r/range.md) of [index futures](../i/index_futures.md). Visit the CME [website](https://www.cmegroup.com/) for more information. +Indices are also used in the context of [risk management](../r/risk_management.md) through the creation of [index](../i/index_instrument.md)-based [derivatives](../d/derivatives.md) such as [options](../o/options.md) and [futures](../f/futures.md). These financial instruments allow traders to [hedge](../h/hedge.md) against potential [market](../m/market.md) movements. Exchanges like the **Chicago Mercantile [Exchange](../e/exchange.md) (CME)** [offer](../o/offer.md) a [range](../r/range.md) of [index futures](../i/index_futures.md). Visit the CME [website](https://www.cmegroup.com/) for more information. ## Conclusion diff --git a/en/pedia/i/indicator.md b/en/pedia/i/indicator.md index 678fbd7e..fca89d1c 100644 --- a/en/pedia/i/indicator.md +++ b/en/pedia/i/indicator.md @@ -27,7 +27,7 @@ def calculate_ema(prices, period): ## Oscillators ### Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. The RSI oscillates between 0 and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. The RSI oscillates between 0 and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. ```python def calculate_rsi(prices, period=14): diff --git a/en/pedia/i/indicator_divergence.md b/en/pedia/i/indicator_divergence.md index 8d4c4e20..94ae0b35 100644 --- a/en/pedia/i/indicator_divergence.md +++ b/en/pedia/i/indicator_divergence.md @@ -2,7 +2,7 @@ ### Introduction -In the realm of [algorithmic trading](../a/algorithmic_trading.md), "[Indicator](../i/indicator.md) [Divergence](../d/divergence.md)" is a powerful analytical tool used by traders and algorithms to identify potential reversals or continuations in the [market](../m/market.md) trends. The concept of [divergence](../d/divergence.md) involves comparing the movement of an [asset](../a/asset.md)'s price with the movement of a corresponding technical [indicator](../i/indicator.md), generally oscillators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), or [Stochastic Oscillator](../s/stochastic_oscillator.md). [Divergence](../d/divergence.md) can signal an impending shift in [market](../m/market.md) [momentum](../m/momentum.md), thereby [offering](../o/offering.md) traders a valuable insight for making informed decisions. +In the realm of [algorithmic trading](../a/algorithmic_trading.md), "[Indicator](../i/indicator.md) [Divergence](../d/divergence.md)" is a powerful analytical tool used by traders and algorithms to identify potential reversals or continuations in the [market](../m/market.md) trends. The concept of [divergence](../d/divergence.md) involves comparing the movement of an [asset](../a/asset.md)'s price with the movement of a corresponding technical [indicator](../i/indicator.md), generally oscillators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), or [Stochastic Oscillator](../s/stochastic_oscillator.md). [Divergence](../d/divergence.md) can signal an impending shift in [market](../m/market.md) [momentum](../m/momentum.md), thereby [offering](../o/offering.md) traders a valuable insight for making informed decisions. ### Types of Divergence diff --git a/en/pedia/i/indonesia_stock_exchange_(idx).md b/en/pedia/i/indonesia_stock_exchange_(idx).md index a3c571f7..f4e81e81 100644 --- a/en/pedia/i/indonesia_stock_exchange_(idx).md +++ b/en/pedia/i/indonesia_stock_exchange_(idx).md @@ -52,16 +52,16 @@ To maintain [market](../m/market.md) integrity and protect investors, IDX enforc The IDX offers several indices that serve as benchmarks for [market](../m/market.md) performance. The most notable indices include: ### 1. Jakarta Composite Index (JCI) -The JCI, or IDX Composite, is the primary [benchmark](../b/benchmark.md) measuring the performance of all [listed](../l/listed.md) [stocks](../s/stock.md). It is a [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md) reflecting overall [market](../m/market.md) trends. +The JCI, or IDX Composite, is the primary [benchmark](../b/benchmark.md) measuring the performance of all [listed](../l/listed.md) [stocks](../s/stock.md). It is a [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md) reflecting overall [market](../m/market.md) trends. ### 2. LQ45 -This [index](../i/index.md) comprises 45 of the largest and most [liquid](../l/liquid.md) [stocks](../s/stock.md) [listed](../l/listed.md) on the IDX, representing the blue-chip segment of the [market](../m/market.md). +This [index](../i/index_instrument.md) comprises 45 of the largest and most [liquid](../l/liquid.md) [stocks](../s/stock.md) [listed](../l/listed.md) on the IDX, representing the blue-chip segment of the [market](../m/market.md). ### 3. IDX30 -This [index](../i/index.md) includes the 30 most actively traded [stocks](../s/stock.md), providing a snapshot of [market](../m/market.md) [liquidity](../l/liquidity.md) and [investor](../i/investor.md) sentiment. +This [index](../i/index_instrument.md) includes the 30 most actively traded [stocks](../s/stock.md), providing a snapshot of [market](../m/market.md) [liquidity](../l/liquidity.md) and [investor](../i/investor.md) sentiment. ### 4. Islamic Indices -The IDX offers indices tailored for Islamic [finance](../f/finance.md), such as the Jakarta Islamic [Index](../i/index.md) (JII) and others, which include [stocks](../s/stock.md) compliant with Sharia law. +The IDX offers indices tailored for Islamic [finance](../f/finance.md), such as the Jakarta Islamic [Index](../i/index_instrument.md) (JII) and others, which include [stocks](../s/stock.md) compliant with Sharia law. ## Investment Products and Services diff --git a/en/pedia/i/industrial_production_analysis.md b/en/pedia/i/industrial_production_analysis.md index 2f58fef0..2066c2ac 100644 --- a/en/pedia/i/industrial_production_analysis.md +++ b/en/pedia/i/industrial_production_analysis.md @@ -6,10 +6,10 @@ Industrial production analysis is a critical area of economic study that focuses ### 1. Industrial Production Index (IPI) -The Industrial Production [Index](../i/index.md) (IPI) is one of the most significant indicators in industrial production analysis. It measures the real output of the [manufacturing](../m/manufacturing.md), [mining](../m/mining.md), and [utility](../u/utility.md) sectors over a specific period. The IPI is usually published monthly and is used to track changes in output and gauge economic performance. +The Industrial Production [Index](../i/index_instrument.md) (IPI) is one of the most significant indicators in industrial production analysis. It measures the real output of the [manufacturing](../m/manufacturing.md), [mining](../m/mining.md), and [utility](../u/utility.md) sectors over a specific period. The IPI is usually published monthly and is used to track changes in output and gauge economic performance. -* **Methodology**: The IPI is computed using data from various sources, including production reports, shipment records, and workforce [statistics](../s/statistics.md). The [index](../i/index.md) is typically seasonally adjusted to remove the effects of seasonal variations. -* **Interpretation**: An increase in the IPI indicates growth in industrial activity, while a decrease suggests a contraction. This [index](../i/index.md) is essential for identifying trends and making economic forecasts. +* **Methodology**: The IPI is computed using data from various sources, including production reports, shipment records, and workforce [statistics](../s/statistics.md). The [index](../i/index_instrument.md) is typically seasonally adjusted to remove the effects of seasonal variations. +* **Interpretation**: An increase in the IPI indicates growth in industrial activity, while a decrease suggests a contraction. This [index](../i/index_instrument.md) is essential for identifying trends and making economic forecasts. ### 2. Capacity Utilization Rate diff --git a/en/pedia/i/industrial_production_index_(ipi).md b/en/pedia/i/industrial_production_index_(ipi).md index bacd6ec7..f9f24c27 100644 --- a/en/pedia/i/industrial_production_index_(ipi).md +++ b/en/pedia/i/industrial_production_index_(ipi).md @@ -1,17 +1,17 @@ # Industrial Production Index (IPI) -The Industrial Production [Index](../i/index.md) (IPI) is a key [economic indicator](../e/economic_indicator.md) that quantifies the real output of the [manufacturing](../m/manufacturing.md), [mining](../m/mining.md), and utilities sectors of an [economy](../e/economy.md). It reflects the [volume](../v/volume.md) of goods produced excluding [inflation](../i/inflation.md) adjustments and provides vital insights into the industrial sector's health, [efficiency](../e/efficiency.md), and growth potential. Understanding the IPI's methodology, significance, and its roles in economic analysis can [offer](../o/offer.md) valuable insights for businesses, investors, policymakers, and economic researchers. +The Industrial Production [Index](../i/index_instrument.md) (IPI) is a key [economic indicator](../e/economic_indicator.md) that quantifies the real output of the [manufacturing](../m/manufacturing.md), [mining](../m/mining.md), and utilities sectors of an [economy](../e/economy.md). It reflects the [volume](../v/volume.md) of goods produced excluding [inflation](../i/inflation.md) adjustments and provides vital insights into the industrial sector's health, [efficiency](../e/efficiency.md), and growth potential. Understanding the IPI's methodology, significance, and its roles in economic analysis can [offer](../o/offer.md) valuable insights for businesses, investors, policymakers, and economic researchers. ## 1. Definition and Scope ### Definition -The Industrial Production [Index](../i/index.md) (IPI) measures the output of the industrial sector, typically capturing the performance of three main industries: +The Industrial Production [Index](../i/index_instrument.md) (IPI) measures the output of the industrial sector, typically capturing the performance of three main industries: 1. **[Manufacturing](../m/manufacturing.md)**: This includes the production of goods ranging from automobiles, electronics, chemicals, and textiles. 2. **[Mining](../m/mining.md)**: This includes extraction activities like coal [mining](../m/mining.md), oil extraction, and various mineral extractions. 3. **Utilities**: This covers electricity, gas, and water [supply](../s/supply.md). -The IPI is expressed as a percentage relative to a [base year](../b/base_year.md) level which is assigned an [index](../i/index.md) [value](../v/value.md) of 100. Changes in this [index](../i/index.md) over time reflect changes in the raw [volume](../v/volume.md) of production without inflationary adjustments. +The IPI is expressed as a percentage relative to a [base year](../b/base_year.md) level which is assigned an [index](../i/index_instrument.md) [value](../v/value.md) of 100. Changes in this [index](../i/index_instrument.md) over time reflect changes in the raw [volume](../v/volume.md) of production without inflationary adjustments. ### Scope @@ -21,7 +21,7 @@ The IPI typically does not include the construction and services sectors, focusi ### Base Year -The choice of a [base year](../b/base_year.md) is crucial for calculating the [index](../i/index.md). The [base year](../b/base_year.md) is a normal year against which other years’ production levels are compared. It is periodically updated to reflect structural changes in the [economy](../e/economy.md). +The choice of a [base year](../b/base_year.md) is crucial for calculating the [index](../i/index_instrument.md). The [base year](../b/base_year.md) is a normal year against which other years’ production levels are compared. It is periodically updated to reflect structural changes in the [economy](../e/economy.md). ### Data Collection @@ -59,7 +59,7 @@ Industrial production levels can help predict inflationary pressures in the [eco ### United States -The IPI for the United States is published by the Federal Reserve Board. It’s one of the major components of the [Index](../i/index.md) of Leading [Economic Indicators](../e/economic_indicators.md) and offers insights into the U.S. economic health. +The IPI for the United States is published by the Federal Reserve Board. It’s one of the major components of the [Index](../i/index_instrument.md) of Leading [Economic Indicators](../e/economic_indicators.md) and offers insights into the U.S. economic health. [More about the U.S. IPI](https://www.federalreserve.gov/releases/G17/) @@ -97,7 +97,7 @@ As a [lagging indicator](../l/lagging_indicator.md), the IPI often reflects past ### Outdated Base Year -Periodic updates to the [base year](../b/base_year.md) are necessary to keep the [index](../i/index.md) relevant. Delay in such updates can result in outdated indices that may not reflect the structural shifts in the [economy](../e/economy.md). +Periodic updates to the [base year](../b/base_year.md) are necessary to keep the [index](../i/index_instrument.md) relevant. Delay in such updates can result in outdated indices that may not reflect the structural shifts in the [economy](../e/economy.md). ## 6. Case Studies and Applications @@ -115,4 +115,4 @@ The IPI’s sectoral data can help in understanding which industries are driving ## Conclusion -The Industrial Production [Index](../i/index.md) (IPI) plays a pivotal role in economic analysis, [offering](../o/offering.md) a window into the industrial sector's performance. By tracking this [index](../i/index.md), stakeholders can make informed decisions, analyze economic health, and understand [underlying](../u/underlying.md) production trends. While it has its limitations, its [value](../v/value.md) in economic planning, investment strategies, and policy-making is undeniable, making it an indispensable tool for comprehending industrial dynamics. \ No newline at end of file +The Industrial Production [Index](../i/index_instrument.md) (IPI) plays a pivotal role in economic analysis, [offering](../o/offering.md) a window into the industrial sector's performance. By tracking this [index](../i/index_instrument.md), stakeholders can make informed decisions, analyze economic health, and understand [underlying](../u/underlying.md) production trends. While it has its limitations, its [value](../v/value.md) in economic planning, investment strategies, and policy-making is undeniable, making it an indispensable tool for comprehending industrial dynamics. \ No newline at end of file diff --git a/en/pedia/i/industry_rotation.md b/en/pedia/i/industry_rotation.md index 8e99979d..0b58271d 100644 --- a/en/pedia/i/industry_rotation.md +++ b/en/pedia/i/industry_rotation.md @@ -44,10 +44,10 @@ Conducting a sector-specific analysis to understand which sectors are currently ### 2. Identifying Leading and Lagging Sectors **[Relative Strength Analysis](../r/relative_strength_analysis.md):** -One popular method is [relative strength analysis](../r/relative_strength_analysis.md), where investors compare the performance of different sectors against a [benchmark](../b/benchmark.md) [index](../i/index.md). Sectors outperforming the [benchmark](../b/benchmark.md) are considered leading, while those underperforming are lagging. +One popular method is [relative strength analysis](../r/relative_strength_analysis.md), where investors compare the performance of different sectors against a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). Sectors outperforming the [benchmark](../b/benchmark.md) are considered leading, while those underperforming are lagging. **[Technical Analysis](../t/technical_analysis.md):** -[Technical indicators](../t/technical_indicators.md), such as moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)), help spot trends and potential turning points in [sector performance](../s/sector_performance.md). +[Technical indicators](../t/technical_indicators.md), such as moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)), help spot trends and potential turning points in [sector performance](../s/sector_performance.md). **[Fundamental Analysis](../f/fundamental_analysis.md):** Evaluating the fundamentals of companies within a sector, including [earnings](../e/earnings.md) growth, [debt](../d/debt.md) levels, and [market](../m/market.md) position, provides insight into the sector’s health and potential for future performance. diff --git a/en/pedia/i/industry_sector_analysis.md b/en/pedia/i/industry_sector_analysis.md index ed8ef5e6..935f580e 100644 --- a/en/pedia/i/industry_sector_analysis.md +++ b/en/pedia/i/industry_sector_analysis.md @@ -36,7 +36,7 @@ Several companies specialize in providing comprehensive [market](../m/market.md) ### Economic Indicators -[Economic indicators](../e/economic_indicators.md) such as GDP [growth rates](../g/growth_rates_in_trading.md), [unemployment](../u/unemployment.md) rates, and consumer price indices are pivotal in understanding the broader economic context that impacts various sectors. Government agencies and institutions like the U.S. Bureau of Economic Analysis (https://www.bea.gov/) and the European Central [Bank](../b/bank.md) (https://www.ecb.europa.eu/[home](../h/home.md)/html/[index](../i/index.md).en.html) provide these indicators. +[Economic indicators](../e/economic_indicators.md) such as GDP [growth rates](../g/growth_rates_in_trading.md), [unemployment](../u/unemployment.md) rates, and consumer price indices are pivotal in understanding the broader economic context that impacts various sectors. Government agencies and institutions like the U.S. Bureau of Economic Analysis (https://www.bea.gov/) and the European Central [Bank](../b/bank.md) (https://www.ecb.europa.eu/[home](../h/home.md)/html/[index](../i/index_instrument.md).en.html) provide these indicators. ### Machine Learning and AI diff --git a/en/pedia/i/inflation-adjusted_return.md b/en/pedia/i/inflation-adjusted_return.md index cb94df02..6d526005 100644 --- a/en/pedia/i/inflation-adjusted_return.md +++ b/en/pedia/i/inflation-adjusted_return.md @@ -4,7 +4,7 @@ ## Understanding Inflation -[Inflation](../i/inflation.md) refers to the general rise in the prices of goods and services in an [economy](../e/economy.md) over a period. It is measured by various indices, most commonly the Consumer Price [Index](../i/index.md) (CPI) and the Producer Price [Index](../i/index.md) (PPI). [Inflation](../i/inflation.md) can erode the [value](../v/value.md) of [money](../m/money.md), meaning that a unit of [currency](../c/currency.md) [will](../w/will.md) buy fewer goods and services in the future than it does today. Understanding [inflation](../i/inflation.md) is crucial for investors as it affects the real [value](../v/value.md) of their investments. +[Inflation](../i/inflation.md) refers to the general rise in the prices of goods and services in an [economy](../e/economy.md) over a period. It is measured by various indices, most commonly the Consumer Price [Index](../i/index_instrument.md) (CPI) and the Producer Price [Index](../i/index_instrument.md) (PPI). [Inflation](../i/inflation.md) can erode the [value](../v/value.md) of [money](../m/money.md), meaning that a unit of [currency](../c/currency.md) [will](../w/will.md) buy fewer goods and services in the future than it does today. Understanding [inflation](../i/inflation.md) is crucial for investors as it affects the real [value](../v/value.md) of their investments. ## Importance of Inflation-Adjusted Return diff --git a/en/pedia/i/inflation-linked_bonds.md b/en/pedia/i/inflation-linked_bonds.md index 66b774aa..0f6867c1 100644 --- a/en/pedia/i/inflation-linked_bonds.md +++ b/en/pedia/i/inflation-linked_bonds.md @@ -5,18 +5,18 @@ ## Types of Inflation-Linked Bonds ### Treasury Inflation-Protected Securities (TIPS) -In the United States, the most well-known [inflation](../i/inflation.md)-linked bonds are Treasury [Inflation-Protected Securities](../i/inflation-protected_securities.md) (TIPS). TIPS are issued by the U.S. Department of the Treasury and are indexed to the Consumer Price [Index](../i/index.md) (CPI), which measures [inflation](../i/inflation.md). Full details of TIPS can be found on the [U.S. Treasury's website](https://www.treasurydirect.gov/indiv/research/indepth/tips/res_tips.htm). +In the United States, the most well-known [inflation](../i/inflation.md)-linked bonds are Treasury [Inflation-Protected Securities](../i/inflation-protected_securities.md) (TIPS). TIPS are issued by the U.S. Department of the Treasury and are indexed to the Consumer Price [Index](../i/index_instrument.md) (CPI), which measures [inflation](../i/inflation.md). Full details of TIPS can be found on the [U.S. Treasury's website](https://www.treasurydirect.gov/indiv/research/indepth/tips/res_tips.htm). ### UK Index-Linked Gilts -In the United Kingdom, [inflation](../i/inflation.md)-linked bonds are known as [Index](../i/index.md)-Linked [Gilts](../g/gilts.md). These bonds are issued by the UK [Debt](../d/debt.md) Management Office (DMO) and are linked to the Retail Price [Index](../i/index.md) (RPI). You can access more information about [Index](../i/index.md)-Linked [Gilts](../g/gilts.md) on the [UK DMO website](https://www.dmo.gov.uk/). +In the United Kingdom, [inflation](../i/inflation.md)-linked bonds are known as [Index](../i/index_instrument.md)-Linked [Gilts](../g/gilts.md). These bonds are issued by the UK [Debt](../d/debt.md) Management Office (DMO) and are linked to the Retail Price [Index](../i/index_instrument.md) (RPI). You can access more information about [Index](../i/index_instrument.md)-Linked [Gilts](../g/gilts.md) on the [UK DMO website](https://www.dmo.gov.uk/). ### Euro Inflation-Linked Bonds -Within the [Eurozone](../e/eurozone.md), numerous countries [issue](../i/issue.md) [inflation](../i/inflation.md)-linked bonds, and they are generally indexed to the Harmonized [Index](../i/index.md) of Consumer Prices (HICP). For example, the French government issues [Obligations](../o/obligation.md) Assimilables du Trésor (OATi), which can be explored further on the [Agence France Trésor website](https://www.aft.gouv.fr/en). +Within the [Eurozone](../e/eurozone.md), numerous countries [issue](../i/issue.md) [inflation](../i/inflation.md)-linked bonds, and they are generally indexed to the Harmonized [Index](../i/index_instrument.md) of Consumer Prices (HICP). For example, the French government issues [Obligations](../o/obligation.md) Assimilables du Trésor (OATi), which can be explored further on the [Agence France Trésor website](https://www.aft.gouv.fr/en). ## Mechanics of Inflation-Linked Bonds ### Principal Adjustment -The [principal](../p/principal.md) amount of an ILB is adjusted periodically to reflect changes in the price [index](../i/index.md) it is linked to. For instance, if the CPI or RPI increases, the [principal](../p/principal.md) amount of the [bond](../b/bond.md) [will](../w/will.md) increase proportionally. Conversely, if there is [deflation](../d/deflation.md), the [principal](../p/principal.md) amount [will](../w/will.md) decrease. However, many ILBs come with a [deflation](../d/deflation.md) floor ensuring that the [principal](../p/principal.md) does not fall below its original [value](../v/value.md). +The [principal](../p/principal.md) amount of an ILB is adjusted periodically to reflect changes in the price [index](../i/index_instrument.md) it is linked to. For instance, if the CPI or RPI increases, the [principal](../p/principal.md) amount of the [bond](../b/bond.md) [will](../w/will.md) increase proportionally. Conversely, if there is [deflation](../d/deflation.md), the [principal](../p/principal.md) amount [will](../w/will.md) decrease. However, many ILBs come with a [deflation](../d/deflation.md) floor ensuring that the [principal](../p/principal.md) does not fall below its original [value](../v/value.md). ### Coupon Payments The coupon [payment](../p/payment.md) of an ILB is typically calculated based on the adjusted [principal](../p/principal.md). Therefore, as the [principal](../p/principal.md) increases with [inflation](../i/inflation.md), the [interest](../i/interest.md) payments also increase, providing a [hedge](../h/hedge.md) against [inflation](../i/inflation.md). @@ -41,7 +41,7 @@ Most [inflation](../i/inflation.md)-linked bonds are issued by sovereign governm ILBs are not immune to [interest rate risk](../i/interest_rate_risk.md). Rising [interest](../i/interest.md) rates typically lead to falling [bond](../b/bond.md) prices. However, because the [principal](../p/principal.md) is adjusted for [inflation](../i/inflation.md), the price [volatility](../v/volatility.md) of ILBs may be lower compared to [nominal](../n/nominal.md) bonds. ### Inflation Risk -Although ILBs are designed to protect against [inflation](../i/inflation.md), there is still a [risk](../r/risk.md) associated with the method of measuring [inflation](../i/inflation.md). If the [index](../i/index.md) used to adjust the ILB does not accurately reflect the [investor](../i/investor.md)'s experience of [inflation](../i/inflation.md), the protection might be inadequate. +Although ILBs are designed to protect against [inflation](../i/inflation.md), there is still a [risk](../r/risk.md) associated with the method of measuring [inflation](../i/inflation.md). If the [index](../i/index_instrument.md) used to adjust the ILB does not accurately reflect the [investor](../i/investor.md)'s experience of [inflation](../i/inflation.md), the protection might be inadequate. ### Tax Considerations In some jurisdictions, the [inflation](../i/inflation.md) adjustments to the [principal](../p/principal.md) of an ILB can be taxable, even though the [investor](../i/investor.md) does not receive the adjustment amount until the [bond](../b/bond.md) matures. This can result in a higher tax burden compared to [nominal](../n/nominal.md) bonds. @@ -52,7 +52,7 @@ In some jurisdictions, the [inflation](../i/inflation.md) adjustments to the [pr The U.S. Department of the Treasury is the primary [issuer](../i/issuer.md) of TIPS. Investors can buy TIPS directly from the Treasury through the [TreasuryDirect website](https://www.treasurydirect.gov/). ### UK Debt Management Office -The UK DMO manages the issuance of [Index](../i/index.md)-Linked [Gilts](../g/gilts.md). Detailed information can be found on the [DMO website](https://www.dmo.gov.uk/). +The UK DMO manages the issuance of [Index](../i/index_instrument.md)-Linked [Gilts](../g/gilts.md). Detailed information can be found on the [DMO website](https://www.dmo.gov.uk/). ### Agence France Trésor Agence France Trésor is responsible for the issuance of French [inflation](../i/inflation.md)-linked bonds, including OATi. Their resources are available on their official [website](https://www.aft.gouv.fr/). @@ -74,7 +74,7 @@ Before [investing](../i/investing.md) in ILBs, investors should consider [inflat ## Tips for Investors ### Understand the Index -It's crucial to understand the [index](../i/index.md) your ILB is linked to. Different countries use different indices (CPI, RPI, HICP), and the choice of [index](../i/index.md) can impact the [bond](../b/bond.md)'s performance. +It's crucial to understand the [index](../i/index_instrument.md) your ILB is linked to. Different countries use different indices (CPI, RPI, HICP), and the choice of [index](../i/index_instrument.md) can impact the [bond](../b/bond.md)'s performance. ### Monitor Inflation Trends Keeping an eye on [inflation](../i/inflation.md) trends can help investors decide when to invest in ILBs. Rising [inflation](../i/inflation.md) rates make ILBs more valuable, while falling [inflation](../i/inflation.md) might decrease their attractiveness. diff --git a/en/pedia/i/inflation-protected_securities.md b/en/pedia/i/inflation-protected_securities.md index 82426201..b9c05740 100644 --- a/en/pedia/i/inflation-protected_securities.md +++ b/en/pedia/i/inflation-protected_securities.md @@ -1,6 +1,6 @@ # Inflation-Protected Securities -[Inflation](../i/inflation.md)-protected securities (IPS) are a type of investment instrument designed to protect investors from the eroding effects of [inflation](../i/inflation.md). These securities are typically linked to an [underlying](../u/underlying.md) [inflation](../i/inflation.md) [index](../i/index.md), such as the Consumer Price [Index](../i/index.md) (CPI), ensuring that the [value](../v/value.md) of the investment adjusts in accordance with the rate of [inflation](../i/inflation.md). This intrinsic link to [inflation](../i/inflation.md) makes IPS a valuable tool for preserving [purchasing power](../p/purchasing_power.md) over time, especially in periods of rising prices. +[Inflation](../i/inflation.md)-protected securities (IPS) are a type of investment instrument designed to protect investors from the eroding effects of [inflation](../i/inflation.md). These securities are typically linked to an [underlying](../u/underlying.md) [inflation](../i/inflation.md) [index](../i/index_instrument.md), such as the Consumer Price [Index](../i/index_instrument.md) (CPI), ensuring that the [value](../v/value.md) of the investment adjusts in accordance with the rate of [inflation](../i/inflation.md). This intrinsic link to [inflation](../i/inflation.md) makes IPS a valuable tool for preserving [purchasing power](../p/purchasing_power.md) over time, especially in periods of rising prices. ## Concepts and Mechanics @@ -16,7 +16,7 @@ TIPS are U.S. government bonds specifically designed to protect investors from [ Series I Bonds are [U.S. savings bonds](../u/u.s._savings_bonds.md) that also [offer](../o/offer.md) [inflation](../i/inflation.md) protection. They provide a [fixed interest rate](../f/fixed_interest_rate.md), plus an [inflation](../i/inflation.md)-adjusted rate that is reset twice a year based on changes in the CPI. Unlike TIPS, Series I Bonds are purchased at [face value](../f/face_value.md) and are redeemed at [maturity](../m/maturity.md). #### Other National Inflation-Indexed Bonds -Many countries [issue](../i/issue.md) their own versions of [inflation](../i/inflation.md)-indexed bonds. For instance, the UK issues [Index](../i/index.md)-Linked [Gilts](../g/gilts.md), Germany has its [Inflation](../i/inflation.md)-Linked Federal Bonds (Bunds), and Canada offers Real [Return](../r/return.md) Bonds (RRBs). Each of these securities adjusts for [inflation](../i/inflation.md) based on their national consumer price indices. +Many countries [issue](../i/issue.md) their own versions of [inflation](../i/inflation.md)-indexed bonds. For instance, the UK issues [Index](../i/index_instrument.md)-Linked [Gilts](../g/gilts.md), Germany has its [Inflation](../i/inflation.md)-Linked Federal Bonds (Bunds), and Canada offers Real [Return](../r/return.md) Bonds (RRBs). Each of these securities adjusts for [inflation](../i/inflation.md) based on their national consumer price indices. ## Advantages of Inflation-Protected Securities diff --git a/en/pedia/i/inflation.md b/en/pedia/i/inflation.md index df6814b4..5c5741d6 100644 --- a/en/pedia/i/inflation.md +++ b/en/pedia/i/inflation.md @@ -26,10 +26,10 @@ Several factors can cause inflation, including: # Measuring Inflation -There are several key indicators for measuring inflation, the most commonly known being the Consumer Price [Index](../i/index.md) (CPI) and the Producer Price [Index](../i/index.md) (PPI). +There are several key indicators for measuring inflation, the most commonly known being the Consumer Price [Index](../i/index_instrument.md) (CPI) and the Producer Price [Index](../i/index_instrument.md) (PPI). -1. **CPI (Consumer Price [Index](../i/index.md))**: This measures the average change over time in the prices paid by consumers for a [basket of goods](../b/basket_of_goods.md) and services. -2. **PPI (Producer Price [Index](../i/index.md))**: This measures the average change over time in the selling prices received by domestic producers for their output. +1. **CPI (Consumer Price [Index](../i/index_instrument.md))**: This measures the average change over time in the prices paid by consumers for a [basket of goods](../b/basket_of_goods.md) and services. +2. **PPI (Producer Price [Index](../i/index_instrument.md))**: This measures the average change over time in the selling prices received by domestic producers for their output. # Inflation Impact on Financial Markets diff --git a/en/pedia/i/inflation_accounting.md b/en/pedia/i/inflation_accounting.md index de20f7e6..95dfe607 100644 --- a/en/pedia/i/inflation_accounting.md +++ b/en/pedia/i/inflation_accounting.md @@ -17,9 +17,9 @@ Several methods can be employed for [inflation](../i/inflation.md) [accounting]( ### Current Purchasing Power (CPP) Method -The Current [Purchasing Power](../p/purchasing_power.md) (CPP) method involves adjusting [financial statements](../f/financial_statements.md) to reflect changes in the general [price level](../p/price_level.md). This is achieved by converting historical costs into current prices using a price [index](../i/index.md). The key steps in this method include: +The Current [Purchasing Power](../p/purchasing_power.md) (CPP) method involves adjusting [financial statements](../f/financial_statements.md) to reflect changes in the general [price level](../p/price_level.md). This is achieved by converting historical costs into current prices using a price [index](../i/index_instrument.md). The key steps in this method include: -- **[Index](../i/index.md) Selection**: Choosing an appropriate price [index](../i/index.md) that reflects the average change in prices across the [economy](../e/economy.md). +- **[Index](../i/index_instrument.md) Selection**: Choosing an appropriate price [index](../i/index_instrument.md) that reflects the average change in prices across the [economy](../e/economy.md). - **Adjustment of Items**: Adjusting various items on the [financial statements](../f/financial_statements.md), including revenues, expenses, assets, and liabilities, to reflect current [purchasing power](../p/purchasing_power.md). - **Statement Presentation**: Presenting the adjusted [financial statements](../f/financial_statements.md) in a format that is comparable to [historical cost](../h/historical_cost.md)-based statements. @@ -40,7 +40,7 @@ The Modified [Historical Cost](../h/historical_cost.md) (MHC) method combines el ### General Price Level Adjusted (GPLA) Method -The General [Price Level](../p/price_level.md) Adjusted (GPLA) method is similar to the CPP method but focuses more broadly on adjusting all financial statement items based on changes in the general [price level](../p/price_level.md). This method assumes a constant [purchasing power](../p/purchasing_power.md) and adjusts for [inflation](../i/inflation.md) using a general [price level](../p/price_level.md) [index](../i/index.md). +The General [Price Level](../p/price_level.md) Adjusted (GPLA) method is similar to the CPP method but focuses more broadly on adjusting all financial statement items based on changes in the general [price level](../p/price_level.md). This method assumes a constant [purchasing power](../p/purchasing_power.md) and adjusts for [inflation](../i/inflation.md) using a general [price level](../p/price_level.md) [index](../i/index_instrument.md). ## Advantages and Disadvantages @@ -66,7 +66,7 @@ Different countries and [accounting](../a/accounting.md) bodies have established The International Financial Reporting Standards (IFRS) provide guidelines for [inflation](../i/inflation.md) [accounting](../a/accounting.md) under IAS 29, Financial Reporting in Hyperinflationary Economies. This standard applies to entities whose [functional currency](../f/functional_currency.md) is that of a hyperinflationary [economy](../e/economy.md), defined as one in which the cumulative [inflation](../i/inflation.md) rate over three years approaches or exceeds 100%. The key requirements of IAS 29 include: -- **[Restatement](../r/restatement.md) of [Financial Statements](../f/financial_statements.md)**: Entities must restate their [financial statements](../f/financial_statements.md) to account for [hyperinflation](../h/hyperinflation.md), using a general price [index](../i/index.md) to reflect changes in [purchasing power](../p/purchasing_power.md). +- **[Restatement](../r/restatement.md) of [Financial Statements](../f/financial_statements.md)**: Entities must restate their [financial statements](../f/financial_statements.md) to account for [hyperinflation](../h/hyperinflation.md), using a general price [index](../i/index_instrument.md) to reflect changes in [purchasing power](../p/purchasing_power.md). - **[Balance Sheet](../b/balance_sheet.md) Adjustments**: Assets and liabilities are restated, and [equity](../e/equity.md) components are adjusted to maintain consistency with the restated [balance sheet](../b/balance_sheet.md) figures. - **[Income Statement](../i/income_statement.md) Adjustments**: Revenues and expenses are also restated to reflect changes in the general [price level](../p/price_level.md), ensuring that the presented [financial performance](../f/financial_performance.md) is not distorted by [hyperinflation](../h/hyperinflation.md). @@ -86,7 +86,7 @@ Various countries have their own specific standards and guidelines for [inflatio Consider a hypothetical Company A operating in a hyperinflationary [economy](../e/economy.md), where the local [currency](../c/currency.md) has experienced an [inflation](../i/inflation.md) rate of 150% over the past three years. To provide a more accurate picture of its financial status, Company A adopts the guidelines of IAS 29. Key steps include: -1. **Restating [Financial Statements](../f/financial_statements.md)**: The company restates its [balance sheet](../b/balance_sheet.md) and [income statement](../i/income_statement.md), adjusting all items using a general price [index](../i/index.md). +1. **Restating [Financial Statements](../f/financial_statements.md)**: The company restates its [balance sheet](../b/balance_sheet.md) and [income statement](../i/income_statement.md), adjusting all items using a general price [index](../i/index_instrument.md). 2. **[Asset](../a/asset.md) [Revaluation](../r/revaluation.md)**: Fixed assets, such as property and equipment, are revalued to reflect their current replacement costs. 3. **[Depreciation](../d/depreciation.md) Adjustment**: [Depreciation](../d/depreciation.md) expenses are adjusted based on the revalued [asset](../a/asset.md) costs, resulting in higher [depreciation](../d/depreciation.md) expenses compared to historical [cost accounting](../c/cost_accounting.md). 4. **[Inventory](../i/inventory.md) [Valuation](../v/valuation.md)**: [Inventory](../i/inventory.md) is revalued to its current cost, ensuring that cost of goods sold reflects current price levels. @@ -96,8 +96,8 @@ Consider a hypothetical Company A operating in a hyperinflationary [economy](../ Company B is analyzing its [financial performance](../f/financial_performance.md) over the past five years, during which the [economy](../e/economy.md) experienced varying levels of [inflation](../i/inflation.md). To ensure comparability, the company implements the Current [Purchasing Power](../p/purchasing_power.md) (CPP) method: -1. **[Index](../i/index.md) Selection**: The company selects an appropriate CPI [index](../i/index.md) that reflects changes in the general [price level](../p/price_level.md) over the five-year period. -2. **Adjustment Process**: [Financial statements](../f/financial_statements.md) for each year are adjusted using the selected [index](../i/index.md), converting historical costs to current [purchasing power](../p/purchasing_power.md) terms. +1. **[Index](../i/index_instrument.md) Selection**: The company selects an appropriate CPI [index](../i/index_instrument.md) that reflects changes in the general [price level](../p/price_level.md) over the five-year period. +2. **Adjustment Process**: [Financial statements](../f/financial_statements.md) for each year are adjusted using the selected [index](../i/index_instrument.md), converting historical costs to current [purchasing power](../p/purchasing_power.md) terms. 3. **[Comparative Analysis](../c/comparative_analysis.md)**: The adjusted financial data allows for a more accurate comparison of [financial performance](../f/financial_performance.md) across different periods, highlighting trends and patterns that may have been obscured by [inflation](../i/inflation.md) under historical [cost accounting](../c/cost_accounting.md). ## Software and Tools for Inflation Accounting diff --git a/en/pedia/i/inflation_swap.md b/en/pedia/i/inflation_swap.md index 2a830642..823f6441 100644 --- a/en/pedia/i/inflation_swap.md +++ b/en/pedia/i/inflation_swap.md @@ -6,23 +6,23 @@ ### Basic Structure -An [inflation](../i/inflation.md) [swap](../s/swap.md) is commonly structured as a [plain vanilla](../p/plain_vanilla.md) [interest rate swap](../i/interest_rate_swap.md), wherein two parties agree to [exchange](../e/exchange.md) cash flows based on the changes in an [inflation](../i/inflation.md) [index](../i/index.md) (such as the Consumer Price [Index](../i/index.md) (CPI)) versus a [fixed interest rate](../f/fixed_interest_rate.md). An [inflation](../i/inflation.md) [swap](../s/swap.md) can be broken down into two legs: +An [inflation](../i/inflation.md) [swap](../s/swap.md) is commonly structured as a [plain vanilla](../p/plain_vanilla.md) [interest rate swap](../i/interest_rate_swap.md), wherein two parties agree to [exchange](../e/exchange.md) cash flows based on the changes in an [inflation](../i/inflation.md) [index](../i/index_instrument.md) (such as the Consumer Price [Index](../i/index_instrument.md) (CPI)) versus a [fixed interest rate](../f/fixed_interest_rate.md). An [inflation](../i/inflation.md) [swap](../s/swap.md) can be broken down into two legs: -- **[Inflation](../i/inflation.md) [Leg](../l/leg.md):** The party on this [leg](../l/leg.md) receives payments based on the observed [inflation](../i/inflation.md) rate over a specified period. These payments are tied to an agreed-upon [inflation](../i/inflation.md) [index](../i/index.md). +- **[Inflation](../i/inflation.md) [Leg](../l/leg.md):** The party on this [leg](../l/leg.md) receives payments based on the observed [inflation](../i/inflation.md) rate over a specified period. These payments are tied to an agreed-upon [inflation](../i/inflation.md) [index](../i/index_instrument.md). - **Fixed [Leg](../l/leg.md):** The [counterparty](../c/counterparty.md) on this [leg](../l/leg.md) receives fixed-rate payments which were predetermined during the agreement. -For example, in an [inflation](../i/inflation.md) [swap](../s/swap.md) agreement, one party agrees to pay a fixed rate (say 2%) while the other party agrees to pay the rate of [inflation](../i/inflation.md) over a specified period as measured by an [index](../i/index.md) like the CPI. +For example, in an [inflation](../i/inflation.md) [swap](../s/swap.md) agreement, one party agrees to pay a fixed rate (say 2%) while the other party agrees to pay the rate of [inflation](../i/inflation.md) over a specified period as measured by an [index](../i/index_instrument.md) like the CPI. ### Cash Flows -The cash flows in an [inflation](../i/inflation.md) [swap](../s/swap.md) are typically exchanged at regular intervals, such as annually or semi-annually. The calculations at each [payment](../p/payment.md) date usually involve determining the [notional principal amount](../n/notional_principal_amount.md), which the [inflation](../i/inflation.md) [index](../i/index.md) adjustments are applied against to determine the [payment](../p/payment.md) amounts. +The cash flows in an [inflation](../i/inflation.md) [swap](../s/swap.md) are typically exchanged at regular intervals, such as annually or semi-annually. The calculations at each [payment](../p/payment.md) date usually involve determining the [notional principal amount](../n/notional_principal_amount.md), which the [inflation](../i/inflation.md) [index](../i/index_instrument.md) adjustments are applied against to determine the [payment](../p/payment.md) amounts. ### Indexation [Inflation](../i/inflation.md) swaps can use different types of [inflation](../i/inflation.md) indexes, depending on the needs of the contracting parties and the markets they operate in. Common indexes include: -- **Consumer Price [Index](../i/index.md) (CPI):** A measure of the average change in prices over time that consumers pay for a [basket of goods](../b/basket_of_goods.md) and services. -- **Retail Price [Index](../i/index.md) (RPI):** Mostly used in the UK, it includes some items excluded from the CPI, such as [mortgage](../m/mortgage.md) [interest](../i/interest.md) payments and council tax. +- **Consumer Price [Index](../i/index_instrument.md) (CPI):** A measure of the average change in prices over time that consumers pay for a [basket of goods](../b/basket_of_goods.md) and services. +- **Retail Price [Index](../i/index_instrument.md) (RPI):** Mostly used in the UK, it includes some items excluded from the CPI, such as [mortgage](../m/mortgage.md) [interest](../i/interest.md) payments and council tax. ## Types of Inflation Swaps @@ -30,15 +30,15 @@ There are several types of [inflation](../i/inflation.md) swaps, each designed t ### Zero-Coupon Inflation Swaps (ZCIS) -In a zero-coupon [inflation](../i/inflation.md) [swap](../s/swap.md), there is only a single [payment](../p/payment.md) made at [maturity](../m/maturity.md). The [payment](../p/payment.md) amount is based on the difference between the [inflation](../i/inflation.md) [index](../i/index.md) at the start and at the end of the contract period. This type of [swap](../s/swap.md) is simpler compared to those with periodic payments and can provide a lump-sum exposure to [inflation](../i/inflation.md). +In a zero-coupon [inflation](../i/inflation.md) [swap](../s/swap.md), there is only a single [payment](../p/payment.md) made at [maturity](../m/maturity.md). The [payment](../p/payment.md) amount is based on the difference between the [inflation](../i/inflation.md) [index](../i/index_instrument.md) at the start and at the end of the contract period. This type of [swap](../s/swap.md) is simpler compared to those with periodic payments and can provide a lump-sum exposure to [inflation](../i/inflation.md). ### Year-on-Year Inflation Swaps -In year-on-year [inflation](../i/inflation.md) swaps, payments are exchanged on an annual [basis](../b/basis.md). The [payment](../p/payment.md) amounts are derived from the [inflation](../i/inflation.md) [index](../i/index.md) changes over each year within the contract period. This type allows for yearly adjustments and payments, accommodating more frequent exposure to [inflation](../i/inflation.md) changes. +In year-on-year [inflation](../i/inflation.md) swaps, payments are exchanged on an annual [basis](../b/basis.md). The [payment](../p/payment.md) amounts are derived from the [inflation](../i/inflation.md) [index](../i/index_instrument.md) changes over each year within the contract period. This type allows for yearly adjustments and payments, accommodating more frequent exposure to [inflation](../i/inflation.md) changes. ### CPI Swaps -CPI swaps are a category of [inflation](../i/inflation.md) swaps where the cash flows are explicitly tied to the Consumer Price [Index](../i/index.md). They provide a direct [hedge](../h/hedge.md) against CPI movements, making them useful tools for those with liabilities or assets susceptible to changes in consumer prices. +CPI swaps are a category of [inflation](../i/inflation.md) swaps where the cash flows are explicitly tied to the Consumer Price [Index](../i/index_instrument.md). They provide a direct [hedge](../h/hedge.md) against CPI movements, making them useful tools for those with liabilities or assets susceptible to changes in consumer prices. ## Applications of Inflation Swaps @@ -66,7 +66,7 @@ There are several advantages to using [inflation](../i/inflation.md) swaps: ### Customization -[Inflation](../i/inflation.md) swaps can be tailored to meet the specific needs and objectives of the participants. This includes determining the notional [principal](../p/principal.md), the [inflation](../i/inflation.md) [index](../i/index.md) used, and the [payment](../p/payment.md) frequency. +[Inflation](../i/inflation.md) swaps can be tailored to meet the specific needs and objectives of the participants. This includes determining the notional [principal](../p/principal.md), the [inflation](../i/inflation.md) [index](../i/index_instrument.md) used, and the [payment](../p/payment.md) frequency. ### Liquidity @@ -90,7 +90,7 @@ As with any [derivative](../d/derivative.md), there is a [risk](../r/risk.md) th ### Basis Risk -[Basis risk](../b/basis_risk.md) arises if the [inflation](../i/inflation.md) [index](../i/index.md) specified in the [swap](../s/swap.md) does not perfectly match the [inflation](../i/inflation.md) [risk](../r/risk.md) the [investor](../i/investor.md) seeks to [hedge](../h/hedge.md). For instance, a mismatch between the CPI and actual cost increases experienced by an institution could lead to an ineffective [hedge](../h/hedge.md). +[Basis risk](../b/basis_risk.md) arises if the [inflation](../i/inflation.md) [index](../i/index_instrument.md) specified in the [swap](../s/swap.md) does not perfectly match the [inflation](../i/inflation.md) [risk](../r/risk.md) the [investor](../i/investor.md) seeks to [hedge](../h/hedge.md). For instance, a mismatch between the CPI and actual cost increases experienced by an institution could lead to an ineffective [hedge](../h/hedge.md). ### Liquidity Risk diff --git a/en/pedia/i/information_ratio.md b/en/pedia/i/information_ratio.md index 868a89b8..44276edf 100644 --- a/en/pedia/i/information_ratio.md +++ b/en/pedia/i/information_ratio.md @@ -20,7 +20,7 @@ The Information Ratio thus gauges the [return](../r/return.md) per unit of [risk - It includes both realized and [unrealized gains](../u/unrealized_gains.md) or losses and encompasses dividends or [interest](../i/interest.md) received. 2. **[Benchmark](../b/benchmark.md) [Return](../r/return.md) (\( R_b \))**: - - This is the [return](../r/return.md) of a reference [index](../i/index.md) or a comparative [benchmark](../b/benchmark.md) that reflects the [market](../m/market.md) or a particular sector. + - This is the [return](../r/return.md) of a reference [index](../i/index_instrument.md) or a comparative [benchmark](../b/benchmark.md) that reflects the [market](../m/market.md) or a particular sector. - The [benchmark](../b/benchmark.md) chosen should be relevant to the strategy employed by the portfolio. 3. **[Excess Return](../e/excess_return.md)**: @@ -41,7 +41,7 @@ The Information Ratio thus gauges the [return](../r/return.md) per unit of [risk ### Importance in Algorithmic Trading -In the context of [algorithmic trading](../a/algorithmic_trading.md), the Information Ratio is critical for evaluating the effectiveness of [trading algorithms](../t/trading_algorithms.md). It helps in understanding whether the algorithm is providing adequate returns for the [risk](../r/risk.md) it undertakes relative to a [benchmark](../b/benchmark.md), typically an [index](../i/index.md) like the S&P 500 or another relevant [market](../m/market.md) [benchmark](../b/benchmark.md). +In the context of [algorithmic trading](../a/algorithmic_trading.md), the Information Ratio is critical for evaluating the effectiveness of [trading algorithms](../t/trading_algorithms.md). It helps in understanding whether the algorithm is providing adequate returns for the [risk](../r/risk.md) it undertakes relative to a [benchmark](../b/benchmark.md), typically an [index](../i/index_instrument.md) like the S&P 500 or another relevant [market](../m/market.md) [benchmark](../b/benchmark.md). 1. **Selection of Algorithms**: - Algorithms with a higher Information Ratio are preferred as they promise better [risk](../r/risk.md)-adjusted returns. diff --git a/en/pedia/i/initial_public_offering_(ipo)_strategies.md b/en/pedia/i/initial_public_offering_(ipo)_strategies.md index 58f54eab..8b1fd63b 100644 --- a/en/pedia/i/initial_public_offering_(ipo)_strategies.md +++ b/en/pedia/i/initial_public_offering_(ipo)_strategies.md @@ -47,7 +47,7 @@ Statistical [arbitrage](../a/arbitrage.md) involves using data-driven techniques IPOs are often accompanied by high [volatility](../v/volatility.md), which can either deter or attract investors. Algotrading facilitates [real-time volatility](../r/real-time_volatility.md) analysis, enabling traders to [capitalize](../c/capitalize.md) on short-term price fluctuations. #### Implementation: -- **[Volatility](../v/volatility.md) Indicators**: Use indicators like [Bollinger Bands](../b/bollinger_bands.md), [Average True Range](../a/average_true_range_(atr).md) (ATR), or [Volatility](../v/volatility.md) [Index](../i/index.md) (VIX) in [trading algorithms](../t/trading_algorithms.md). +- **[Volatility](../v/volatility.md) Indicators**: Use indicators like [Bollinger Bands](../b/bollinger_bands.md), [Average True Range](../a/average_true_range_(atr).md) (ATR), or [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX) in [trading algorithms](../t/trading_algorithms.md). - **[Options](../o/options.md) Strategies**: Develop [options trading strategies](../o/options_trading_strategies.md) to [hedge](../h/hedge.md) or speculate based on expected [volatility](../v/volatility.md). #### 5. Order Book Analysis diff --git a/en/pedia/i/installment_debt.md b/en/pedia/i/installment_debt.md index a54e2e92..4ca1a7d4 100644 --- a/en/pedia/i/installment_debt.md +++ b/en/pedia/i/installment_debt.md @@ -20,7 +20,7 @@ Installment loans often follow an [amortization schedule](../a/amortization.md), ### Interest Rates The [interest rate](../i/interest_rate.md) on installment [debt](../d/debt.md) can be either fixed or variable: - **Fixed Rate**: The [interest rate](../i/interest_rate.md) remains the same throughout the life of the [loan](../l/loan.md), providing predictability in monthly payments. -- **Variable Rate**: The [interest rate](../i/interest_rate.md) can change periodically based on an [index](../i/index.md) or [benchmark](../b/benchmark.md) rate, which can cause monthly payments to fluctuate. +- **Variable Rate**: The [interest rate](../i/interest_rate.md) can change periodically based on an [index](../i/index_instrument.md) or [benchmark](../b/benchmark.md) rate, which can cause monthly payments to fluctuate. ## Types of Installment Debt diff --git a/en/pedia/i/institute_for_supply_management_(ism).md b/en/pedia/i/institute_for_supply_management_(ism).md index 0172931d..3f5eac16 100644 --- a/en/pedia/i/institute_for_supply_management_(ism).md +++ b/en/pedia/i/institute_for_supply_management_(ism).md @@ -20,11 +20,11 @@ ISM's mission is to lead the [supply](../s/supply.md) management profession glob ### ISM Manufacturing Index (PMI) -The [ISM Manufacturing Index](../i/ism_manufacturing_index.md), also known as the Purchasing Managers' [Index](../i/index.md) (PMI), is an [economic indicator](../e/economic_indicator.md) derived from monthly surveys of [private sector](../p/private_sector.md) companies in the [manufacturing](../m/manufacturing.md) sector. It is based on five major indicators: new orders, [inventory](../i/inventory.md) levels, production, supplier deliveries, and employment environment. The PMI provides valuable information about current and future [business](../b/business.md) conditions to company decision-makers, analysts, and investors. A PMI above 50 represents [expansion](../e/expansion.md), whereas a PMI below 50 represents contraction. +The [ISM Manufacturing Index](../i/ism_manufacturing_index.md), also known as the Purchasing Managers' [Index](../i/index_instrument.md) (PMI), is an [economic indicator](../e/economic_indicator.md) derived from monthly surveys of [private sector](../p/private_sector.md) companies in the [manufacturing](../m/manufacturing.md) sector. It is based on five major indicators: new orders, [inventory](../i/inventory.md) levels, production, supplier deliveries, and employment environment. The PMI provides valuable information about current and future [business](../b/business.md) conditions to company decision-makers, analysts, and investors. A PMI above 50 represents [expansion](../e/expansion.md), whereas a PMI below 50 represents contraction. ### ISM Non-Manufacturing Index (NMI) -Similar to the [Manufacturing](../m/manufacturing.md) PMI, the ISM Non-[Manufacturing](../m/manufacturing.md) [Index](../i/index.md), or NMI, surveys the non-[manufacturing](../m/manufacturing.md) sector and is a crucial [economic indicator](../e/economic_indicator.md). Introduced later than the [Manufacturing](../m/manufacturing.md) PMI, the NMI serves to gauge [business](../b/business.md) activity in the [service sector](../s/service_sector.md). It includes categories such as [business](../b/business.md) activity, new orders, employment, and supplier deliveries. +Similar to the [Manufacturing](../m/manufacturing.md) PMI, the ISM Non-[Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md), or NMI, surveys the non-[manufacturing](../m/manufacturing.md) sector and is a crucial [economic indicator](../e/economic_indicator.md). Introduced later than the [Manufacturing](../m/manufacturing.md) PMI, the NMI serves to gauge [business](../b/business.md) activity in the [service sector](../s/service_sector.md). It includes categories such as [business](../b/business.md) activity, new orders, employment, and supplier deliveries. ### Certification Programs diff --git a/en/pedia/i/institutional_investment_strategies.md b/en/pedia/i/institutional_investment_strategies.md index 7a52d1f8..8f3f2542 100644 --- a/en/pedia/i/institutional_investment_strategies.md +++ b/en/pedia/i/institutional_investment_strategies.md @@ -35,7 +35,7 @@ Alternative investments, such as [private equity](../p/private_equity.md), [hedg BlackRock is one of the world's leading [investment management](../i/investment_management.md) firms, known for its expertise in managing institutional assets. The company leverages advanced technology and a comprehensive analytics platform known as Aladdin to manage [risk](../r/risk.md) and enhance investment performance. More information can be found on their [website](https://www.blackrock.com). ### Vanguard -Vanguard is renowned for its low-cost [index](../i/index.md) funds and ETFs. The [firm](../f/firm.md) primarily employs [passive investment strategies](../p/passive_investment_strategies.md), focusing on providing diversified and cost-effective investment solutions for institutions and individual investors alike. More details are available on their [website](https://www.vanguard.com). +Vanguard is renowned for its low-cost [index](../i/index_instrument.md) funds and ETFs. The [firm](../f/firm.md) primarily employs [passive investment strategies](../p/passive_investment_strategies.md), focusing on providing diversified and cost-effective investment solutions for institutions and individual investors alike. More details are available on their [website](https://www.vanguard.com). ### Norges Bank Investment Management (NBIM) NBIM manages the Norwegian Government Pension [Fund](../f/fund.md) Global, one of the world's largest sovereign [wealth](../w/wealth.md) funds. The [fund](../f/fund.md) employs a diverse [range](../r/range.md) of investment strategies, including equities, [fixed income](../f/fixed_income.md), and [real estate](../r/real_estate.md), with a strong emphasis on ESG principles. More information can be found on their [website](https://www.nbim.no). diff --git a/en/pedia/i/institutional_investor.md b/en/pedia/i/institutional_investor.md index af7f2b0b..3f1f38ea 100644 --- a/en/pedia/i/institutional_investor.md +++ b/en/pedia/i/institutional_investor.md @@ -51,7 +51,7 @@ BlackRock is the world's largest [asset](../a/asset.md) manager, with trillions Website: [BlackRock](https://www.blackrock.com) ### Vanguard -Vanguard is known for its low-cost [index](../i/index.md) funds and ETFs. The company advocates a passive [investment strategy](../i/investment_strategy.md), encouraging investors to [hold](../h/hold.md) diversified portfolios and minimize trading to reduce costs. Vanguard's emphasis on cost [efficiency](../e/efficiency.md) has made it a popular choice among individual and institutional investors. +Vanguard is known for its low-cost [index](../i/index_instrument.md) funds and ETFs. The company advocates a passive [investment strategy](../i/investment_strategy.md), encouraging investors to [hold](../h/hold.md) diversified portfolios and minimize trading to reduce costs. Vanguard's emphasis on cost [efficiency](../e/efficiency.md) has made it a popular choice among individual and institutional investors. Website: [Vanguard](https://www.vanguard.com) ### Bridgewater Associates diff --git a/en/pedia/i/instrument.md b/en/pedia/i/instrument.md index 1f541782..f90cf54f 100644 --- a/en/pedia/i/instrument.md +++ b/en/pedia/i/instrument.md @@ -118,7 +118,7 @@ Statistical [arbitrage](../a/arbitrage.md) involves using statistical models to ### Indicators: - **Moving Averages:** Help identify the [market](../m/market.md) direction. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** Measures the speed and change of price movements. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** Measures the speed and change of price movements. ## 5. **Mean Reversion** diff --git a/en/pedia/i/interbank_deposits.md b/en/pedia/i/interbank_deposits.md index ab8e6f10..803b5dc2 100644 --- a/en/pedia/i/interbank_deposits.md +++ b/en/pedia/i/interbank_deposits.md @@ -50,7 +50,7 @@ The [interest](../i/interest.md) rates at which interbank deposits are traded ar - **SOFR (Secured Overnight [Financing](../f/financing.md) Rate)**: In the United States, SOFR is becoming the preferred [benchmark](../b/benchmark.md), providing a more reliable measure of overnight borrowing costs in the Treasury repo [market](../m/market.md). -- **EONIA ([Euro](../e/euro.md) Overnight [Index](../i/index.md) Average)**: EONIA is the [benchmark](../b/benchmark.md) rate for [Euro](../e/euro.md)-denominated overnight interbank lending. It is calculated based on the [weighted average](../w/weighted_average.md) of overnight unsecured lending transactions. +- **EONIA ([Euro](../e/euro.md) Overnight [Index](../i/index_instrument.md) Average)**: EONIA is the [benchmark](../b/benchmark.md) rate for [Euro](../e/euro.md)-denominated overnight interbank lending. It is calculated based on the [weighted average](../w/weighted_average.md) of overnight unsecured lending transactions. ## Risk Management diff --git a/en/pedia/i/interbank_rate.md b/en/pedia/i/interbank_rate.md index 0594b3bf..eb2e89c3 100644 --- a/en/pedia/i/interbank_rate.md +++ b/en/pedia/i/interbank_rate.md @@ -117,6 +117,6 @@ Interbank rates are essential for the functioning of the global [financial syste Sources: - [Bank](../b/bank.md) of England, SONIA: https://www.bankofengland.co.uk/markets/sonia-[benchmark](../b/benchmark.md) - Federal Reserve, [Federal Funds Rate](../f/federal_funds_rate.md): https://www.federalreserve.gov/monetarypolicy/openmarket.htm -- European Central [Bank](../b/bank.md), EONIA: https://www.ecb.europa.eu/[home](../h/home.md)/html/[index](../i/index.md).en.html +- European Central [Bank](../b/bank.md), EONIA: https://www.ecb.europa.eu/[home](../h/home.md)/html/[index](../i/index_instrument.md).en.html - ICE [Benchmark](../b/benchmark.md) Administration, LIBOR: https://www.theice.com/iba/libor - European [Money](../m/money.md) Markets Institute, Euribor: https://www.emmi-benchmarks.eu/euribor-org/euribor-rates.html \ No newline at end of file diff --git a/en/pedia/i/interest.md b/en/pedia/i/interest.md index 1e42ba99..b1275f88 100644 --- a/en/pedia/i/interest.md +++ b/en/pedia/i/interest.md @@ -17,7 +17,7 @@ - **Example**: A $1,000 investment at a 5% annual [interest rate](../i/interest_rate.md), compounded annually for 3 years, would grow to $1,157.63. 3. **Fixed Interest**: The [interest rate](../i/interest_rate.md) remains constant throughout the term of the [loan](../l/loan.md) or investment. - **Example**: A [mortgage](../m/mortgage.md) with a [fixed interest rate](../f/fixed_interest_rate.md) of 4% for 30 years. -4. **Variable Interest**: The [interest rate](../i/interest_rate.md) can change over time, based on [market](../m/market.md) conditions or an [index](../i/index.md). +4. **Variable Interest**: The [interest rate](../i/interest_rate.md) can change over time, based on [market](../m/market.md) conditions or an [index](../i/index_instrument.md). - **Example**: A [credit card](../c/credit_card.md) with an [interest rate](../i/interest_rate.md) that fluctuates with the [prime rate](../p/prime_rate.md). ## Importance diff --git a/en/pedia/i/interest_rate_derivative.md b/en/pedia/i/interest_rate_derivative.md index e538dae1..c59ecd70 100644 --- a/en/pedia/i/interest_rate_derivative.md +++ b/en/pedia/i/interest_rate_derivative.md @@ -10,7 +10,7 @@ 1. **[Plain Vanilla](../p/plain_vanilla.md) Swaps:** These are the simplest form of [interest rate swaps](../i/interest_rate_swaps.md) where a [fixed interest rate](../f/fixed_interest_rate.md) is exchanged for a floating rate. 2. **[Basis](../b/basis.md) Swaps:** In a [basis](../b/basis.md) [swap](../s/swap.md), both parties [exchange](../e/exchange.md) floating rates, often tied to different benchmarks. -3. **Overnight [Index](../i/index.md) Swaps (OIS):** These involve the [exchange](../e/exchange.md) of fixed [interest](../i/interest.md) payments for overnight floating rates like Fed funds or the [Euro](../e/euro.md) Overnight [Index](../i/index.md) Average (EONIA). +3. **Overnight [Index](../i/index_instrument.md) Swaps (OIS):** These involve the [exchange](../e/exchange.md) of fixed [interest](../i/interest.md) payments for overnight floating rates like Fed funds or the [Euro](../e/euro.md) Overnight [Index](../i/index_instrument.md) Average (EONIA). ### Interest Rate Futures diff --git a/en/pedia/i/interest_rate_derivatives.md b/en/pedia/i/interest_rate_derivatives.md index 2e2c77b7..1cd23fc7 100644 --- a/en/pedia/i/interest_rate_derivatives.md +++ b/en/pedia/i/interest_rate_derivatives.md @@ -6,7 +6,7 @@ ### 1. **Interest Rate Swaps (IRS)** -[Interest Rate Swaps](../i/interest_rate_swaps.md) are among the most common types of IRDs. In an IRS, two parties agree to [exchange](../e/exchange.md) cash flows based on a [notional principal amount](../n/notional_principal_amount.md). Typically, one party pays a [fixed interest rate](../f/fixed_interest_rate.md), while the other pays a [floating interest rate](../f/floating_interest_rate.md), often tied to an [index](../i/index.md) like the LIBOR (London Interbank Offered Rate). +[Interest Rate Swaps](../i/interest_rate_swaps.md) are among the most common types of IRDs. In an IRS, two parties agree to [exchange](../e/exchange.md) cash flows based on a [notional principal amount](../n/notional_principal_amount.md). Typically, one party pays a [fixed interest rate](../f/fixed_interest_rate.md), while the other pays a [floating interest rate](../f/floating_interest_rate.md), often tied to an [index](../i/index_instrument.md) like the LIBOR (London Interbank Offered Rate). #### **Example** - A [corporation](../c/corporation.md) may enter into an IRS to convert a fixed-rate [loan](../l/loan.md) into a floating-rate [loan](../l/loan.md) to take advantage of lower short-term [interest](../i/interest.md) rates. diff --git a/en/pedia/i/interest_rate_sensitivity.md b/en/pedia/i/interest_rate_sensitivity.md index b720cd62..8ccf9dd7 100644 --- a/en/pedia/i/interest_rate_sensitivity.md +++ b/en/pedia/i/interest_rate_sensitivity.md @@ -38,7 +38,7 @@ While equities are not as directly influenced by [interest](../i/interest.md) ra ## Measuring Interest Rate Sensitivity ### Beta -In equities, a stock's [beta](../b/beta.md) measures its sensitivity to the [market](../m/market.md), but in [fixed income](../f/fixed_income.md), the [beta](../b/beta.md) of a [bond](../b/bond.md) or [bond](../b/bond.md) portfolio against a [benchmark](../b/benchmark.md) [index](../i/index.md) can elucidate its [interest rate](../i/interest_rate.md) sensitivity. +In equities, a stock's [beta](../b/beta.md) measures its sensitivity to the [market](../m/market.md), but in [fixed income](../f/fixed_income.md), the [beta](../b/beta.md) of a [bond](../b/bond.md) or [bond](../b/bond.md) portfolio against a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) can elucidate its [interest rate](../i/interest_rate.md) sensitivity. ### Key Rate Duration (KRD) KRD measures the sensitivity of bonds to [interest rate](../i/interest_rate.md) changes at specific [maturity](../m/maturity.md) points on the [yield curve](../y/yield_curve.md), allowing for pinpointing certain segments of the curve that might impact the [bond](../b/bond.md)'s price the most. diff --git a/en/pedia/i/interest_rate_swaps.md b/en/pedia/i/interest_rate_swaps.md index 492799c7..a58d3fd3 100644 --- a/en/pedia/i/interest_rate_swaps.md +++ b/en/pedia/i/interest_rate_swaps.md @@ -19,7 +19,7 @@ The fixed rate in a [swap](../s/swap.md), known as the [swap rate](../s/swap_rat ### Types of Interest Rate Swaps #### Plain Vanilla Swap -This is the simplest and most common type of [interest rate swap](../i/interest_rate_swap.md) where one party pays a fixed rate, and the other pays a floating rate based on an agreed [index](../i/index.md). +This is the simplest and most common type of [interest rate swap](../i/interest_rate_swap.md) where one party pays a fixed rate, and the other pays a floating rate based on an agreed [index](../i/index_instrument.md). #### Basis Swap In a [basis](../b/basis.md) [swap](../s/swap.md), both parties [exchange](../e/exchange.md) floating rate payments but based on different reference rates. For example, one party could pay a rate based on 1-month LIBOR, and the other could pay a rate based on 6-month LIBOR. diff --git a/en/pedia/i/intermarket_correlation.md b/en/pedia/i/intermarket_correlation.md index eb668642..e72bf01a 100644 --- a/en/pedia/i/intermarket_correlation.md +++ b/en/pedia/i/intermarket_correlation.md @@ -48,7 +48,7 @@ where $C$ is the number of concordant pairs, $D$ the number of discordant pairs, ### Strategy Development Algorithmic traders develop [trading strategies](../t/trading_strategies.md) based on intermarket correlations to: - **Identify [Arbitrage](../a/arbitrage.md) Opportunities:** Seek financial instruments that have deviated from their typical [correlation](../c/correlation.md) and [profit](../p/profit.md) from the reversion to the mean. -- **Enhance [Predictive Models](../p/predictive_models_in_trading.md):** Use correlated assets to improve the accuracy of price predictions. For instance, a [trader](../t/trader.md) might predict the movement of a stock [index](../i/index.md) by analyzing the correlated performance of its top constituents. +- **Enhance [Predictive Models](../p/predictive_models_in_trading.md):** Use correlated assets to improve the accuracy of price predictions. For instance, a [trader](../t/trader.md) might predict the movement of a stock [index](../i/index_instrument.md) by analyzing the correlated performance of its top constituents. ### Portfolio Diversification [Diversification](../d/diversification.md) is a [risk management](../r/risk_management.md) strategy that [spreads](../s/spreads.md) investments across various financial instruments, industries, and other categories to reduce exposure to any single [asset](../a/asset.md) or [risk](../r/risk.md). By understanding intermarket correlations, traders can construct portfolios with assets that have low or negative correlations, thereby reducing portfolio [volatility](../v/volatility.md). diff --git a/en/pedia/i/intermarket_momentum.md b/en/pedia/i/intermarket_momentum.md index 90b4e8ca..d756a61f 100644 --- a/en/pedia/i/intermarket_momentum.md +++ b/en/pedia/i/intermarket_momentum.md @@ -25,7 +25,7 @@ One of the foundational aspects of intermarket [momentum](../m/momentum.md) is u Intermarket [momentum](../m/momentum.md) can be quantified and analyzed using various models and indicators. Some of the most popular include: -1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: This measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: This measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. 2. **Moving Averages**: Simple or exponential moving averages can help identify trends and reversals. 3. **[Momentum Indicators](../m/momentum_indicators.md)**: Tools like the [Momentum](../m/momentum.md) [Indicator](../i/indicator.md) and MACD (Moving Average Convergence [Divergence](../d/divergence.md)) are commonly used to gauge the strength of [market](../m/market.md) trends. 4. **[Correlation](../c/correlation.md) Matrices**: These can be used to visually interpret the [correlation coefficient](../c/correlation_coefficient.md) between different [asset](../a/asset.md) classes. diff --git a/en/pedia/i/international_securities_identification_number_(isin).md b/en/pedia/i/international_securities_identification_number_(isin).md index c6a73665..8a13b266 100644 --- a/en/pedia/i/international_securities_identification_number_(isin).md +++ b/en/pedia/i/international_securities_identification_number_(isin).md @@ -44,7 +44,7 @@ Accurate identification of securities through ISIN codes supports better [risk m ### National Numbering Agencies (NNAs) ISIN codes are issued by National Numbering Agencies (NNAs). Each country has a designated NNA responsible for allocating ISINs to securities issued within its jurisdiction. For example: -- **US**: The CUSIP Global Services (https://www.cusip.com/cusip/[index](../i/index.md).htm) +- **US**: The CUSIP Global Services (https://www.cusip.com/cusip/[index](../i/index_instrument.md).htm) - **UK**: London Stock [Exchange](../e/exchange.md) (https://www.lseg.com) - **Germany**: Wertpapier-Mitteilungen (https://www.wmdaten.com) diff --git a/en/pedia/i/intraday_momentum_index_(imi).md b/en/pedia/i/intraday_momentum_index_(imi).md index da9e0be9..bf36f478 100644 --- a/en/pedia/i/intraday_momentum_index_(imi).md +++ b/en/pedia/i/intraday_momentum_index_(imi).md @@ -1,6 +1,6 @@ # Intraday Momentum Index (IMI) -The Intraday [Momentum](../m/momentum.md) [Index](../i/index.md) (IMI) is a technical [indicator](../i/indicator.md) that blends the concepts of [candlestick](../c/candlestick.md) analysis with the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI). Developed by Tushar Chande, the IMI is used to identify [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions in the [market](../m/market.md) on an intraday [basis](../b/basis.md). This is particularly useful for identifying [short-term trading](../s/short-term_trading.md) opportunities. Unlike the RSI, which looks at closing prices, the IMI considers the relationship between the opening and closing prices, making it effective for analyzing shorter time frames within the trading day. +The Intraday [Momentum](../m/momentum.md) [Index](../i/index_instrument.md) (IMI) is a technical [indicator](../i/indicator.md) that blends the concepts of [candlestick](../c/candlestick.md) analysis with the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI). Developed by Tushar Chande, the IMI is used to identify [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions in the [market](../m/market.md) on an intraday [basis](../b/basis.md). This is particularly useful for identifying [short-term trading](../s/short-term_trading.md) opportunities. Unlike the RSI, which looks at closing prices, the IMI considers the relationship between the opening and closing prices, making it effective for analyzing shorter time frames within the trading day. ## Fundamental Concept @@ -78,4 +78,4 @@ For example, Citadel Securities, known for its data-driven and high-frequency tr ## Conclusion -The Intraday [Momentum](../m/momentum.md) [Index](../i/index.md) is a versatile tool for traders, especially those focusing on intraday activities. It combines elements of [candlestick](../c/candlestick.md) analysis with the traditional [momentum analysis](../m/momentum_analysis.md) to provide a more detailed and actionable insight into [market](../m/market.md) conditions. While it comes with its own set of advantages and limitations, when used correctly and in conjunction with other indicators, it can greatly enhance the decision-making process for both individual traders and institutional players. \ No newline at end of file +The Intraday [Momentum](../m/momentum.md) [Index](../i/index_instrument.md) is a versatile tool for traders, especially those focusing on intraday activities. It combines elements of [candlestick](../c/candlestick.md) analysis with the traditional [momentum analysis](../m/momentum_analysis.md) to provide a more detailed and actionable insight into [market](../m/market.md) conditions. While it comes with its own set of advantages and limitations, when used correctly and in conjunction with other indicators, it can greatly enhance the decision-making process for both individual traders and institutional players. \ No newline at end of file diff --git a/en/pedia/i/intraday_volatility_strategies.md b/en/pedia/i/intraday_volatility_strategies.md index 67aa1dad..3e137007 100644 --- a/en/pedia/i/intraday_volatility_strategies.md +++ b/en/pedia/i/intraday_volatility_strategies.md @@ -11,7 +11,7 @@ Intraday [volatility](../v/volatility.md) strategies are trading methods designe [Liquidity](../l/liquidity.md) refers to the ability of an [asset](../a/asset.md) to be bought or sold in the [market](../m/market.md) without affecting its price. High [liquidity](../l/liquidity.md) is essential for intraday traders to ensure they can enter and exit positions quickly without causing significant price impact. Assets with high trading volumes typically [offer](../o/offer.md) the best [liquidity](../l/liquidity.md). ### Technical Indicators -[Technical indicators](../t/technical_indicators.md) are mathematical calculations based on historical price, [volume](../v/volume.md), or [open interest](../o/open_interest.md) information. Intraday traders use these indicators to identify patterns and trends that may predict future price movements. Common [technical indicators](../t/technical_indicators.md) used in intraday [volatility](../v/volatility.md) strategies include Moving Averages, [Bollinger Bands](../b/bollinger_bands.md), [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and the [Average True Range](../a/average_true_range_(atr).md) (ATR). +[Technical indicators](../t/technical_indicators.md) are mathematical calculations based on historical price, [volume](../v/volume.md), or [open interest](../o/open_interest.md) information. Intraday traders use these indicators to identify patterns and trends that may predict future price movements. Common [technical indicators](../t/technical_indicators.md) used in intraday [volatility](../v/volatility.md) strategies include Moving Averages, [Bollinger Bands](../b/bollinger_bands.md), [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and the [Average True Range](../a/average_true_range_(atr).md) (ATR). ## Common Intraday Volatility Strategies diff --git a/en/pedia/i/inverse_correlation.md b/en/pedia/i/inverse_correlation.md index 08852f39..ed94e76b 100644 --- a/en/pedia/i/inverse_correlation.md +++ b/en/pedia/i/inverse_correlation.md @@ -43,7 +43,7 @@ A classical example of inverse [correlation](../c/correlation.md) is observed be Inverse [correlation](../c/correlation.md) can also be seen in specific [commodity](../c/commodity.md) pairs. For example, gold and U.S. dollar often exhibit an inverse [correlation](../c/correlation.md). When the dollar weakens, gold prices tend to rise as gold becomes cheaper for investors holding other currencies. ### ETF Strategies -[Exchange](../e/exchange.md)-Traded Funds (ETFs) often use inverse correlations to create products that move opposite to a particular [index](../i/index.md). These [inverse ETFs](../i/inverse_etfs.md) allow traders to [profit](../p/profit.md) from declining markets without directly short-selling individual [stocks](../s/stock.md). +[Exchange](../e/exchange.md)-Traded Funds (ETFs) often use inverse correlations to create products that move opposite to a particular [index](../i/index_instrument.md). These [inverse ETFs](../i/inverse_etfs.md) allow traders to [profit](../p/profit.md) from declining markets without directly short-selling individual [stocks](../s/stock.md). ### Cryptocurrency Markets In the volatile world of cryptocurrencies, certain assets may exhibit inverse correlations. For example, [Bitcoin](../b/bitcoin.md) and alternative cryptocurrencies (altcoins) sometimes show an inverse relationship where [capital](../c/capital.md) flows might shift between [Bitcoin](../b/bitcoin.md) and altcoins based on [market sentiment](../m/market_sentiment.md). diff --git a/en/pedia/i/inverse_etf.md b/en/pedia/i/inverse_etf.md index 305d641c..4b86b4d5 100644 --- a/en/pedia/i/inverse_etf.md +++ b/en/pedia/i/inverse_etf.md @@ -1,22 +1,22 @@ # Inverse ETF -An inverse [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF), also referred to as a "short ETF" or "bear ETF," is a type of ETF that aims to deliver the opposite [return](../r/return.md) of a particular [index](../i/index.md) or [benchmark](../b/benchmark.md) for a single day. This [financial instrument](../f/financial_instrument.md) is popular among traders and investors who seek to [profit](../p/profit.md) from declining markets or to [hedge](../h/hedge.md) other positions in their portfolios. Unlike traditional ETFs that are designed to track and replicate the performance of an [index](../i/index.md) like the S&P 500, an inverse ETF aims to move in the opposite direction. Therefore, if the [underlying](../u/underlying.md) [index](../i/index.md) decreases in [value](../v/value.md), the inverse ETF should increase in [value](../v/value.md), and vice versa. +An inverse [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF), also referred to as a "short ETF" or "bear ETF," is a type of ETF that aims to deliver the opposite [return](../r/return.md) of a particular [index](../i/index_instrument.md) or [benchmark](../b/benchmark.md) for a single day. This [financial instrument](../f/financial_instrument.md) is popular among traders and investors who seek to [profit](../p/profit.md) from declining markets or to [hedge](../h/hedge.md) other positions in their portfolios. Unlike traditional ETFs that are designed to track and replicate the performance of an [index](../i/index_instrument.md) like the S&P 500, an inverse ETF aims to move in the opposite direction. Therefore, if the [underlying](../u/underlying.md) [index](../i/index_instrument.md) decreases in [value](../v/value.md), the inverse ETF should increase in [value](../v/value.md), and vice versa. ## Mechanism of Inverse ETFs -[Inverse ETFs](../i/inverse_etfs.md) achieve their objective by using a variety of [financial derivatives](../f/financial_derivatives.md), including [options](../o/options.md), [futures contracts](../f/futures_contracts.md), and short sales. These complex financial instruments enable the inverse ETF to mimic the opposite performance of the target [index](../i/index.md) on a daily [basis](../b/basis.md). Here’s a closer look at these mechanisms: +[Inverse ETFs](../i/inverse_etfs.md) achieve their objective by using a variety of [financial derivatives](../f/financial_derivatives.md), including [options](../o/options.md), [futures contracts](../f/futures_contracts.md), and short sales. These complex financial instruments enable the inverse ETF to mimic the opposite performance of the target [index](../i/index_instrument.md) on a daily [basis](../b/basis.md). Here’s a closer look at these mechanisms: ### Short Selling -[Short selling](../s/short_selling.md) involves borrowing [shares](../s/shares.md) of a [security](../s/security.md) and selling them on the [open market](../o/open_market.md) with the intention of buying them back later at a lower price. [Inverse ETFs](../i/inverse_etfs.md) employ [short selling](../s/short_selling.md) as one of the strategies to achieve their inverse performance. If the price of the target [index](../i/index.md) drops, the short-sold [shares](../s/shares.md) can be bought back at a lower price, resulting in a [profit](../p/profit.md) that contributes to the increase in the ETF's [value](../v/value.md). +[Short selling](../s/short_selling.md) involves borrowing [shares](../s/shares.md) of a [security](../s/security.md) and selling them on the [open market](../o/open_market.md) with the intention of buying them back later at a lower price. [Inverse ETFs](../i/inverse_etfs.md) employ [short selling](../s/short_selling.md) as one of the strategies to achieve their inverse performance. If the price of the target [index](../i/index_instrument.md) drops, the short-sold [shares](../s/shares.md) can be bought back at a lower price, resulting in a [profit](../p/profit.md) that contributes to the increase in the ETF's [value](../v/value.md). ### Use of Derivatives -[Derivatives](../d/derivatives.md) such as [futures contracts](../f/futures_contracts.md), [options](../o/options.md), and swaps are frequently employed to amplify the effects of the inverse exposure. [Futures contracts](../f/futures_contracts.md), for example, are agreements to buy or sell an [asset](../a/asset.md) at a future date for a predetermined price. By entering into short [futures contracts](../f/futures_contracts.md), an inverse ETF can [gain](../g/gain.md) from a decline in the price of the [underlying](../u/underlying.md) [index](../i/index.md). +[Derivatives](../d/derivatives.md) such as [futures contracts](../f/futures_contracts.md), [options](../o/options.md), and swaps are frequently employed to amplify the effects of the inverse exposure. [Futures contracts](../f/futures_contracts.md), for example, are agreements to buy or sell an [asset](../a/asset.md) at a future date for a predetermined price. By entering into short [futures contracts](../f/futures_contracts.md), an inverse ETF can [gain](../g/gain.md) from a decline in the price of the [underlying](../u/underlying.md) [index](../i/index_instrument.md). ### Leverage -Some [inverse ETFs](../i/inverse_etfs.md) are leveraged, meaning they seek to deliver a [multiple](../m/multiple.md) (e.g., -2x or -3x) of the daily inverse [return](../r/return.md) of the target [index](../i/index.md). Leveraged [inverse ETFs](../i/inverse_etfs.md) use a combination of [debt](../d/debt.md) and [derivatives](../d/derivatives.md) to achieve these amplified returns, which magnifies both gains and losses. +Some [inverse ETFs](../i/inverse_etfs.md) are leveraged, meaning they seek to deliver a [multiple](../m/multiple.md) (e.g., -2x or -3x) of the daily inverse [return](../r/return.md) of the target [index](../i/index_instrument.md). Leveraged [inverse ETFs](../i/inverse_etfs.md) use a combination of [debt](../d/debt.md) and [derivatives](../d/derivatives.md) to achieve these amplified returns, which magnifies both gains and losses. ## Benefits of Inverse ETFs @@ -40,7 +40,7 @@ While [inverse ETFs](../i/inverse_etfs.md) [offer](../o/offer.md) opportunities ### Daily Rebalancing and Compounding -[Inverse ETFs](../i/inverse_etfs.md) are designed to provide their inverse [return](../r/return.md) on a daily [basis](../b/basis.md). Because of this daily objective, the performance of an inverse ETF can deviate significantly from the inverse performance of the target [index](../i/index.md) over longer periods. This is due to the effects of daily [compounding](../c/compounding.md), especially in volatile markets. As such, [inverse ETFs](../i/inverse_etfs.md) are generally not recommended for long-term holding. +[Inverse ETFs](../i/inverse_etfs.md) are designed to provide their inverse [return](../r/return.md) on a daily [basis](../b/basis.md). Because of this daily objective, the performance of an inverse ETF can deviate significantly from the inverse performance of the target [index](../i/index_instrument.md) over longer periods. This is due to the effects of daily [compounding](../c/compounding.md), especially in volatile markets. As such, [inverse ETFs](../i/inverse_etfs.md) are generally not recommended for long-term holding. ### Leverage Risk @@ -48,7 +48,7 @@ Leveraged [inverse ETFs](../i/inverse_etfs.md) amplify the risks associated with ### Market Risks -[Inverse ETFs](../i/inverse_etfs.md) are subject to the same [market](../m/market.md) risks as other investment products. Factors such as geopolitical events, economic data, and [market sentiment](../m/market_sentiment.md) can impact the performance of the [underlying](../u/underlying.md) [index](../i/index.md) and thus the inverse ETF. +[Inverse ETFs](../i/inverse_etfs.md) are subject to the same [market](../m/market.md) risks as other investment products. Factors such as geopolitical events, economic data, and [market sentiment](../m/market_sentiment.md) can impact the performance of the [underlying](../u/underlying.md) [index](../i/index_instrument.md) and thus the inverse ETF. ### Derivative Risks @@ -70,13 +70,13 @@ ProShares Short S&P 500 seeks to provide -1x the daily performance of the S&P 50 ### Direxion Daily Financial Bear 3X Shares (FAZ) -This leveraged inverse ETF seeks to deliver -3x the daily performance of the Russell 1000 Financial Services [Index](../i/index.md). Investors use FAZ to [gain](../g/gain.md) inverse exposure to the [financial sector](../f/financial_sector.md) with [leverage](../l/leverage.md). +This leveraged inverse ETF seeks to deliver -3x the daily performance of the Russell 1000 Financial Services [Index](../i/index_instrument.md). Investors use FAZ to [gain](../g/gain.md) inverse exposure to the [financial sector](../f/financial_sector.md) with [leverage](../l/leverage.md). **Link:** [Direxion Daily Financial Bear 3X Shares (FAZ)](https://www.direxion.com/product/direxion-daily-financial-bear-3x-etf) ### Invesco QQQ Trust, Series 1 (PSQ) -Invesco's PSQ ETF aims to provide inverse exposure to the [NASDAQ](../n/nasdaq.md)-100 [Index](../i/index.md). This ETF is popular among investors seeking to [hedge](../h/hedge.md) against declines in the technology-heavy [NASDAQ](../n/nasdaq.md) Composite. +Invesco's PSQ ETF aims to provide inverse exposure to the [NASDAQ](../n/nasdaq.md)-100 [Index](../i/index_instrument.md). This ETF is popular among investors seeking to [hedge](../h/hedge.md) against declines in the technology-heavy [NASDAQ](../n/nasdaq.md) Composite. **Link:** [Invesco QQQ Trust, Series 1 (PSQ)](https://www.invesco.com/us/financial-products/etfs/products/psq) diff --git a/en/pedia/i/inverse_etfs.md b/en/pedia/i/inverse_etfs.md index 91426d12..cccca58f 100644 --- a/en/pedia/i/inverse_etfs.md +++ b/en/pedia/i/inverse_etfs.md @@ -1,32 +1,32 @@ # Inverse ETFs -Inverse [Exchange](../e/exchange.md)-Traded Funds (ETFs) are financial instruments that allow investors to [profit](../p/profit.md) from a decline in the [value](../v/value.md) of a specific [benchmark](../b/benchmark.md). They achieve this by using various [derivatives](../d/derivatives.md), such as swaps, [options](../o/options.md), and [futures contracts](../f/futures_contracts.md), to deliver returns that are the inverse of the performance of the [underlying](../u/underlying.md) [index](../i/index.md) or [asset](../a/asset.md). In other words, if the [benchmark](../b/benchmark.md) falls by a certain percentage, the [inverse ETF](../i/inverse_etf.md) is designed to rise by that same percentage, and vice versa. These instruments are often used by traders looking to [hedge](../h/hedge.md) their portfolios, speculate on [market](../m/market.md) downturns, or [gain](../g/gain.md) short-term [profit](../p/profit.md) opportunities. +Inverse [Exchange](../e/exchange.md)-Traded Funds (ETFs) are financial instruments that allow investors to [profit](../p/profit.md) from a decline in the [value](../v/value.md) of a specific [benchmark](../b/benchmark.md). They achieve this by using various [derivatives](../d/derivatives.md), such as swaps, [options](../o/options.md), and [futures contracts](../f/futures_contracts.md), to deliver returns that are the inverse of the performance of the [underlying](../u/underlying.md) [index](../i/index_instrument.md) or [asset](../a/asset.md). In other words, if the [benchmark](../b/benchmark.md) falls by a certain percentage, the [inverse ETF](../i/inverse_etf.md) is designed to rise by that same percentage, and vice versa. These instruments are often used by traders looking to [hedge](../h/hedge.md) their portfolios, speculate on [market](../m/market.md) downturns, or [gain](../g/gain.md) short-term [profit](../p/profit.md) opportunities. ## How Inverse ETFs Work Inverse ETFs utilize financial [derivatives](../d/derivatives.md) to achieve their investment objectives. These [derivatives](../d/derivatives.md) include: ### 1. Swaps -Swaps are contracts between two parties to [exchange](../e/exchange.md) cash flows or other financial instruments. Inverse ETFs generally use [equity](../e/equity.md) swaps where one party agrees to pay the returns of an [index](../i/index.md) while the other party agrees to pay the returns of another [asset](../a/asset.md) or rate of [interest](../i/interest.md). +Swaps are contracts between two parties to [exchange](../e/exchange.md) cash flows or other financial instruments. Inverse ETFs generally use [equity](../e/equity.md) swaps where one party agrees to pay the returns of an [index](../i/index_instrument.md) while the other party agrees to pay the returns of another [asset](../a/asset.md) or rate of [interest](../i/interest.md). ### 2. Futures Contracts [Futures](../f/futures.md) are standardized contracts to buy or sell a particular [asset](../a/asset.md) at a pre-determined price at a specified time in the future. Inverse ETFs often use [futures contracts](../f/futures_contracts.md) to bet against a particular [benchmark](../b/benchmark.md). ### 3. Options -[Options](../o/options.md) give investors the right but not the obligation to buy or sell an [asset](../a/asset.md) at a specified price before or on a specific date. Inverse ETFs can use [options](../o/options.md) to bet against the price of an [index](../i/index.md). +[Options](../o/options.md) give investors the right but not the obligation to buy or sell an [asset](../a/asset.md) at a specified price before or on a specific date. Inverse ETFs can use [options](../o/options.md) to bet against the price of an [index](../i/index_instrument.md). ## Types of Inverse ETFs Inverse ETFs come in various types depending on the level of inverse exposure they provide: ### 1. Single Inverse ETFs -These ETFs aim to provide the opposite performance of the [underlying](../u/underlying.md) [index](../i/index.md). For example, if the [benchmark](../b/benchmark.md) [index](../i/index.md) declines by 1%, a single [inverse ETF](../i/inverse_etf.md) is designed to increase by 1%. +These ETFs aim to provide the opposite performance of the [underlying](../u/underlying.md) [index](../i/index_instrument.md). For example, if the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) declines by 1%, a single [inverse ETF](../i/inverse_etf.md) is designed to increase by 1%. ### 2. Double Inverse ETFs -Double Inverse ETFs seek to deliver twice the inverse performance of the [underlying](../u/underlying.md) [index](../i/index.md). If the [benchmark](../b/benchmark.md) falls by 1%, the double [inverse ETF](../i/inverse_etf.md) should rise by 2%. +Double Inverse ETFs seek to deliver twice the inverse performance of the [underlying](../u/underlying.md) [index](../i/index_instrument.md). If the [benchmark](../b/benchmark.md) falls by 1%, the double [inverse ETF](../i/inverse_etf.md) should rise by 2%. ### 3. Triple Inverse ETFs -These ETFs aim to provide three times the inverse of the daily performance of the [underlying](../u/underlying.md) [index](../i/index.md). If the [underlying](../u/underlying.md) [index](../i/index.md) drops by 1%, the triple [inverse ETF](../i/inverse_etf.md) should theoretically increase by 3%. +These ETFs aim to provide three times the inverse of the daily performance of the [underlying](../u/underlying.md) [index](../i/index_instrument.md). If the [underlying](../u/underlying.md) [index](../i/index_instrument.md) drops by 1%, the triple [inverse ETF](../i/inverse_etf.md) should theoretically increase by 3%. ## Common Uses of Inverse ETFs @@ -42,7 +42,7 @@ Though risky, some investors use inverse ETFs as part of a diversified strategy ## Risks and Drawbacks ### 1. Daily Rebalancing -Inverse ETFs are designed to provide inverse performance on a daily [basis](../b/basis.md). Their returns do not correspond exactly to the inverse of the long-term performance of the [index](../i/index.md) due to the process of daily [rebalancing](../r/rebalancing.md). +Inverse ETFs are designed to provide inverse performance on a daily [basis](../b/basis.md). Their returns do not correspond exactly to the inverse of the long-term performance of the [index](../i/index_instrument.md) due to the process of daily [rebalancing](../r/rebalancing.md). ### 2. Leverage Risk Inverse ETFs that use [leverage](../l/leverage.md), such as double or triple inverse ETFs, amplify potential returns as well as potential losses. This makes them highly volatile. @@ -56,7 +56,7 @@ Inverse ETFs usually have higher [expense](../e/expense.md) ratios compared to t ## Examples of Inverse ETFs ### 1. ProShares Short S&P 500 (SH) -This is a single [inverse ETF](../i/inverse_etf.md) that aims to provide the inverse of the daily performance of the S&P 500 [Index](../i/index.md). +This is a single [inverse ETF](../i/inverse_etf.md) that aims to provide the inverse of the daily performance of the S&P 500 [Index](../i/index_instrument.md). [ProShares SH](https://www.proshares.com/funds/sh.html) ### 2. Direxion Daily S&P 500 Bear 3X Shares (SPXS) @@ -64,11 +64,11 @@ This is a triple [inverse ETF](../i/inverse_etf.md) designed to deliver three ti [Direxion SPXS](https://www.direxion.com/product/daily-sp-500-bear-3x-shares) ### 3. ProShares UltraShort QQQ (QID) -This is a double [inverse ETF](../i/inverse_etf.md) that targets twice the inverse performance of the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md). +This is a double [inverse ETF](../i/inverse_etf.md) that targets twice the inverse performance of the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md). [ProShares QID](https://www.proshares.com/funds/qid.html) ### 4. Direxion Daily Financial Bear 3X Shares (FAZ) -This ETF seeks daily investment results, before fees and expenses, of 300% of the inverse of the performance of the Russell 1000® Financial Services [Index](../i/index.md). +This ETF seeks daily investment results, before fees and expenses, of 300% of the inverse of the performance of the Russell 1000® Financial Services [Index](../i/index_instrument.md). [Direxion FAZ](https://www.direxion.com/product/daily-financial-bear-3x-etf) ### 5. ProShares UltraShort Euro (EUO) diff --git a/en/pedia/i/inverse_market_strategies.md b/en/pedia/i/inverse_market_strategies.md index fdddd7df..955b5cc5 100644 --- a/en/pedia/i/inverse_market_strategies.md +++ b/en/pedia/i/inverse_market_strategies.md @@ -26,19 +26,19 @@ Inverse [market](../m/market.md) strategies involve financial trading techniques ### Definition and Mechanics -[Inverse ETFs](../i/inverse_etfs.md) are designed to provide gains corresponding to the inverse performance of a specific [index](../i/index.md) or [benchmark](../b/benchmark.md). For example, if the S&P 500 [index](../i/index.md) decreases by 2%, an inverse S&P 500 ETF aims to increase by approximately 2%. +[Inverse ETFs](../i/inverse_etfs.md) are designed to provide gains corresponding to the inverse performance of a specific [index](../i/index_instrument.md) or [benchmark](../b/benchmark.md). For example, if the S&P 500 [index](../i/index_instrument.md) decreases by 2%, an inverse S&P 500 ETF aims to increase by approximately 2%. ### Example and Process 1. A [trader](../t/trader.md) purchases [shares](../s/shares.md) of an [inverse ETF](../i/inverse_etf.md) of the S&P 500. -2. The S&P 500 [index](../i/index.md) declines by 3%. +2. The S&P 500 [index](../i/index_instrument.md) declines by 3%. 3. The [value](../v/value.md) of the [inverse ETF](../i/inverse_etf.md) increases by approximately 3%. ### Risks - **[Leverage](../l/leverage.md)**: Some [inverse ETFs](../i/inverse_etfs.md) use [leverage](../l/leverage.md), which can amplify both gains and losses. - **Daily Reset**: Most [inverse ETFs](../i/inverse_etfs.md) reset daily, meaning their performance is optimized for [short-term trading](../s/short-term_trading.md) rather than long-term holding. -- **Tracking Errors**: Discrepancies between the performance of the [inverse ETF](../i/inverse_etf.md) and the [underlying](../u/underlying.md) [index](../i/index.md) due to fees and other operational factors. +- **Tracking Errors**: Discrepancies between the performance of the [inverse ETF](../i/inverse_etf.md) and the [underlying](../u/underlying.md) [index](../i/index_instrument.md) due to fees and other operational factors. **Example Companies**: - [ProShares](https://www.proshares.com/) offers a variety of [inverse ETFs](../i/inverse_etfs.md). @@ -70,7 +70,7 @@ Inverse [market](../m/market.md) strategies involve financial trading techniques ### Example and Process -1. A trading algorithm is designed to identify [overbought](../o/overbought.md) conditions in a stock using [technical indicators](../t/technical_indicators.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI). +1. A trading algorithm is designed to identify [overbought](../o/overbought.md) conditions in a stock using [technical indicators](../t/technical_indicators.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI). 2. Upon detecting such conditions, the algorithm triggers a [short sale](../s/short_sale.md). 3. As the stock price declines, the algorithm automatically closes the position, securing a [profit](../p/profit.md). @@ -93,8 +93,8 @@ Hedging involves taking an opposing position in a related [security](../s/securi ### Example and Process 1. An [investor](../i/investor.md) holds a portfolio of tech [stocks](../s/stock.md). -2. To [hedge](../h/hedge.md) against potential declines, the [investor](../i/investor.md) buys [put options](../p/put_options.md) on a tech stock [index](../i/index.md). -3. If the tech stock [index](../i/index.md) decreases, the gains from the [put options](../p/put_options.md) [offset](../o/offset.md) the losses in the actual stock [holdings](../h/holdings.md). +2. To [hedge](../h/hedge.md) against potential declines, the [investor](../i/investor.md) buys [put options](../p/put_options.md) on a tech stock [index](../i/index_instrument.md). +3. If the tech stock [index](../i/index_instrument.md) decreases, the gains from the [put options](../p/put_options.md) [offset](../o/offset.md) the losses in the actual stock [holdings](../h/holdings.md). ### Risks diff --git a/en/pedia/i/inverse_volatility_strategies.md b/en/pedia/i/inverse_volatility_strategies.md index ad502a39..849a3489 100644 --- a/en/pedia/i/inverse_volatility_strategies.md +++ b/en/pedia/i/inverse_volatility_strategies.md @@ -45,9 +45,9 @@ Managing [risk](../r/risk.md) is intrinsic to the success of inverse [volatility ### Exchange-Traded Products Several [exchange](../e/exchange.md)-traded products (ETPs) are designed to provide exposure to [volatility](../v/volatility.md) indices. These include: -- **ProShares Short VIX Short-Term [Futures](../f/futures.md) ETF**: Designed to provide inverse exposure to the S&P 500 VIX Short-Term [Futures](../f/futures.md) [Index](../i/index.md). +- **ProShares Short VIX Short-Term [Futures](../f/futures.md) ETF**: Designed to provide inverse exposure to the S&P 500 VIX Short-Term [Futures](../f/futures.md) [Index](../i/index_instrument.md). [ProShares](https://www.proshares.com/our-etfs/short-etfs/svxy.html) -- **VelocityShares Daily Inverse VIX Short-Term ETN**: Provides short exposure to the S&P 500 VIX Short-Term [Futures](../f/futures.md) [Index](../i/index.md). +- **VelocityShares Daily Inverse VIX Short-Term ETN**: Provides short exposure to the S&P 500 VIX Short-Term [Futures](../f/futures.md) [Index](../i/index_instrument.md). [VelocityShares](https://www.velocityshares.com/etns/product/vix/) ### Hedge Funds diff --git a/en/pedia/i/investing.md b/en/pedia/i/investing.md index 08ae3c3a..7d6033d6 100644 --- a/en/pedia/i/investing.md +++ b/en/pedia/i/investing.md @@ -14,7 +14,7 @@ Bonds are [debt](../d/debt.md) securities issued by entities such as companies o A [mutual fund](../m/mutual_fund.md) pools [money](../m/money.md) from many investors to invest in a diversified portfolio of [stocks](../s/stock.md), bonds, or other securities. Mutual funds are managed by professional portfolio managers who make investment decisions on behalf of the investors. They [offer](../o/offer.md) a way to [gain](../g/gain.md) exposure to a broad array of assets without buying them individually. ### Exchange-Traded Funds (ETFs) -ETFs are similar to mutual funds, but they [trade](../t/trade.md) on an [exchange](../e/exchange.md) like a stock. ETFs invest in a diversified portfolio of assets and [offer](../o/offer.md) investors a way to buy a broad exposure to a [market](../m/market.md) or [asset class](../a/asset_class.md). They are often passively managed and track a specific [index](../i/index.md). +ETFs are similar to mutual funds, but they [trade](../t/trade.md) on an [exchange](../e/exchange.md) like a stock. ETFs invest in a diversified portfolio of assets and [offer](../o/offer.md) investors a way to buy a broad exposure to a [market](../m/market.md) or [asset class](../a/asset_class.md). They are often passively managed and track a specific [index](../i/index_instrument.md). ### Real Estate Investing in [real estate](../r/real_estate.md) involves purchasing property to earn a [return](../r/return.md) through rental [income](../i/income.md), future resale, or both. [Real estate](../r/real_estate.md) investments can include residential properties, commercial properties, and land. @@ -37,7 +37,7 @@ Cryptocurrencies are digital or virtual currencies that use cryptography for [se [Dividend](../d/dividend.md) investing involves buying [stocks](../s/stock.md) of companies that regularly pay dividends. This strategy provides a steady [income](../i/income.md) stream and can be less risky than other forms of investing since dividends can cushion against [market](../m/market.md) downturns. ### Index Investing -[Index investing](../i/index_investing.md) involves buying securities that replicate the performance of a [market index](../m/market_index.md). For instance, an S&P 500 [index fund](../i/index_fund.md) would aim to mirror the performance of the S&P 500 [index](../i/index.md). This strategy is often used by passive investors seeking to match [market](../m/market.md) returns. +[Index investing](../i/index_investing.md) involves buying securities that replicate the performance of a [market index](../m/market_index.md). For instance, an S&P 500 [index fund](../i/index_fund.md) would aim to mirror the performance of the S&P 500 [index](../i/index_instrument.md). This strategy is often used by passive investors seeking to match [market](../m/market.md) returns. ### Asset Allocation [Asset allocation](../a/asset_allocation.md) is the process of distributing investments among different [asset](../a/asset.md) categories, such as [stocks](../s/stock.md), bonds, and [real estate](../r/real_estate.md), to balance [risk](../r/risk.md) and reward based on an [investor](../i/investor.md)'s goals, [risk tolerance](../r/risk_tolerance.md), and investment [time horizon](../t/time_horizon.md). @@ -93,7 +93,7 @@ Fintech innovations are reshaping the investment landscape. Mobile trading apps, ## Key Players ### Vanguard -Vanguard is known for its low-cost [index](../i/index.md) funds and ETFs. The company has been a pioneer in [passive investing](../p/passive_investing.md) and offers a wide [range](../r/range.md) of investment products aimed at helping investors achieve their long-term financial goals. +Vanguard is known for its low-cost [index](../i/index_instrument.md) funds and ETFs. The company has been a pioneer in [passive investing](../p/passive_investing.md) and offers a wide [range](../r/range.md) of investment products aimed at helping investors achieve their long-term financial goals. [Visit Vanguard](https://www.vanguard.com) ### BlackRock diff --git a/en/pedia/i/investment.md b/en/pedia/i/investment.md index 33f83615..821f1eb7 100644 --- a/en/pedia/i/investment.md +++ b/en/pedia/i/investment.md @@ -24,7 +24,7 @@ Statistical [arbitrage](../a/arbitrage.md) strategies involve identifying price ## 4. Momentum Trading -[Momentum](../m/momentum.md) [trading strategies](../t/trading_strategies.md) aim to [capitalize](../c/capitalize.md) on the continuation of existing [market](../m/market.md) trends. Traders using this approach buy assets that have shown an upward price [trend](../t/trend.md) and sell assets that have shown a downward [trend](../t/trend.md). [Momentum](../m/momentum.md) algorithms rely on [technical indicators](../t/technical_indicator.md) such as moving averages and [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI) to identify potential trades. +[Momentum](../m/momentum.md) [trading strategies](../t/trading_strategies.md) aim to [capitalize](../c/capitalize.md) on the continuation of existing [market](../m/market.md) trends. Traders using this approach buy assets that have shown an upward price [trend](../t/trend.md) and sell assets that have shown a downward [trend](../t/trend.md). [Momentum](../m/momentum.md) algorithms rely on [technical indicators](../t/technical_indicator.md) such as moving averages and [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI) to identify potential trades. ## 5. Mean Reversion diff --git a/en/pedia/i/investment_advisor.md b/en/pedia/i/investment_advisor.md index b80e10da..86453032 100644 --- a/en/pedia/i/investment_advisor.md +++ b/en/pedia/i/investment_advisor.md @@ -75,7 +75,7 @@ The Australian Securities and Investments [Commission](../c/commission.md) (ASIC ## Leading Investment Advisory Firms ### Vanguard -Vanguard is one of the world's largest [investment management](../i/investment_management.md) companies, known for its low-cost [index](../i/index.md) funds and ETFs. They [offer](../o/offer.md) comprehensive financial advisory services, including personalized investment advice and [portfolio management](../p/par.md). +Vanguard is one of the world's largest [investment management](../i/investment_management.md) companies, known for its low-cost [index](../i/index_instrument.md) funds and ETFs. They [offer](../o/offer.md) comprehensive financial advisory services, including personalized investment advice and [portfolio management](../p/par.md). ### Charles Schwab [Charles Schwab](../c/charles_schwab.md) provides a wide [range](../r/range.md) of investment advisory services, from robo-advisors to personalized [financial planning](../f/financial_planning.md). Their Schwab Intelligent Portfolios offers automated, low-cost [investment management](../i/investment_management.md). diff --git a/en/pedia/i/investment_analysis.md b/en/pedia/i/investment_analysis.md index 48816017..d93a2954 100644 --- a/en/pedia/i/investment_analysis.md +++ b/en/pedia/i/investment_analysis.md @@ -17,7 +17,7 @@ Investment analysis is the process of evaluating an investment for profitability [Technical analysis](../t/technical_analysis.md) involves [forecasting](../f/forecasting.md) the direction of prices through the study of past [market](../m/market.md) data, primarily price and [volume](../v/volume.md). Unlike [fundamental analysis](../f/fundamental_analysis.md), it does not assess a company's [intrinsic value](../i/intrinsic_value.md) but focuses on patterns and trends. - **Charts and Patterns**: Uses historical price data to identify patterns such as head and shoulders, triangles, and flags. -- **Indicators and Oscillators**: Includes tools like [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_band.md). +- **Indicators and Oscillators**: Includes tools like [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_band.md). - **[Volume Analysis](../v/volume_analysis.md)**: Examines trading [volume](../v/volume.md) to confirm trends and assess the strength of price movements. ### 3. Quantitative Analysis diff --git a/en/pedia/i/investment_company.md b/en/pedia/i/investment_company.md index 0ffd77ea..cabe1af7 100644 --- a/en/pedia/i/investment_company.md +++ b/en/pedia/i/investment_company.md @@ -43,7 +43,7 @@ Some examples of [closed-end fund](../c/closed-end_fund.md) providers include: - [Eaton Vance](https://funds.eatonvance.com/) ### 3. Exchange-Traded Funds (ETFs) -[Exchange](../e/exchange.md)-traded funds (ETFs) are investment companies that [trade](../t/trade.md) on stock exchanges, much like individual [stocks](../s/stock.md). ETFs pool [money](../m/money.md) from investors to invest in a diversified portfolio of assets, typically tracking an [underlying](../u/underlying.md) [index](../i/index.md). +[Exchange](../e/exchange.md)-traded funds (ETFs) are investment companies that [trade](../t/trade.md) on stock exchanges, much like individual [stocks](../s/stock.md). ETFs pool [money](../m/money.md) from investors to invest in a diversified portfolio of assets, typically tracking an [underlying](../u/underlying.md) [index](../i/index_instrument.md). #### Advantages of ETFs - **Trading Flexibility:** ETFs can be bought and sold throughout the trading day at [market](../m/market.md) prices, [offering](../o/offering.md) [intraday trading](../i/intraday_trading.md) flexibility. diff --git a/en/pedia/i/investment_cycles.md b/en/pedia/i/investment_cycles.md index 45cfa8ff..16813ad9 100644 --- a/en/pedia/i/investment_cycles.md +++ b/en/pedia/i/investment_cycles.md @@ -48,7 +48,7 @@ As the [market](../m/market.md) reaches its lowest point, signals indicating a p - **Economic Data**: GDP reports, employment [statistics](../s/statistics.md), [inflation](../i/inflation.md) rates. - **[Market](../m/market.md) Data**: Stock prices, trading volumes, [order](../o/order.md) books. - **[Sentiment Analysis](../s/sentiment_analysis.md)**: News sentiment, [social media](../s/social_media.md) trends, [earnings](../e/earnings.md) reports. -- **[Technical Indicators](../t/technical_indicators.md)**: Moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), [Bollinger Bands](../b/bollinger_bands.md). +- **[Technical Indicators](../t/technical_indicators.md)**: Moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), [Bollinger Bands](../b/bollinger_bands.md). ## Machine Learning and AI in Investment Cycles diff --git a/en/pedia/i/investment_fund.md b/en/pedia/i/investment_fund.md index 447147d3..d0346422 100644 --- a/en/pedia/i/investment_fund.md +++ b/en/pedia/i/investment_fund.md @@ -8,13 +8,13 @@ An investment [fund](../f/fund.md) is a sum of [money](../m/money.md) pooled tog Mutual funds are one of the most common types of investment funds. They are managed by professional [money](../m/money.md) managers who allocate the [fund](../f/fund.md)’s assets and attempt to produce [capital](../c/capital.md) gains or [income](../i/income.md) for the [fund](../f/fund.md)'s investors. Mutual funds [offer](../o/offer.md) various types to match different investment objectives: - **[Equity](../e/equity.md) Funds** – Invest in [stocks](../s/stock.md). - **Fixed-[Income](../i/income.md) Funds** – Invest in bonds. -- **[Index](../i/index.md) Funds** – Aim to replicate the performance of a specific [index](../i/index.md) like the S&P 500. +- **[Index](../i/index_instrument.md) Funds** – Aim to replicate the performance of a specific [index](../i/index_instrument.md) like the S&P 500. - **Balanced Funds** – Combine [stocks](../s/stock.md) and bonds. - **[Money Market](../m/money_market.md) Funds** – Invest in short-term, low-[risk](../r/risk.md) securities. ### 2. **Exchange-Traded Funds (ETFs)** ETFs are similar to mutual funds but [trade](../t/trade.md) on stock exchanges like individual [stocks](../s/stock.md). They [offer](../o/offer.md) the [diversification benefits](../d/diversification_benefits.md) of mutual funds with the flexibility of stock trading. Examples include: -- **SPDR S&P 500 ETF [Trust](../t/trust.md) (SPY)** which tracks the S&P 500 [index](../i/index.md). +- **SPDR S&P 500 ETF [Trust](../t/trust.md) (SPY)** which tracks the S&P 500 [index](../i/index_instrument.md). - **Vanguard Total [Stock Market](../s/stock_market.md) ETF (VTI)** which offers broad exposure to the total U.S. [stock market](../s/stock_market.md). ### 3. **Hedge Funds** diff --git a/en/pedia/i/investment_manager.md b/en/pedia/i/investment_manager.md index 2d377053..d46a0735 100644 --- a/en/pedia/i/investment_manager.md +++ b/en/pedia/i/investment_manager.md @@ -62,7 +62,7 @@ The role demands a unique combination of [technical skills](../t/technical_skill ### Active vs. Passive Management - **Active Managers**: Aim to [outperform](../o/outperform.md) [market](../m/market.md) indices through buying and selling decisions based on research. They frequently use strategies involving timing, stock selection, and [market](../m/market.md) predictions. -- **Passive Managers**: Focus on tracking [market](../m/market.md) indices, aiming to replicate performance with minimal buying and selling. This is commonly seen in [index](../i/index.md) funds and ETFs. +- **Passive Managers**: Focus on tracking [market](../m/market.md) indices, aiming to replicate performance with minimal buying and selling. This is commonly seen in [index](../i/index_instrument.md) funds and ETFs. ### Institutional vs. Retail Managers @@ -73,7 +73,7 @@ The role demands a unique combination of [technical skills](../t/technical_skill ### Vanguard Group -Vanguard is one of the largest and most respected [investment management](../i/investment_management.md) companies globally, known for its pioneering approach to low-cost [index](../i/index.md) funds and ETFs. +Vanguard is one of the largest and most respected [investment management](../i/investment_management.md) companies globally, known for its pioneering approach to low-cost [index](../i/index_instrument.md) funds and ETFs. - [Vanguard Website](https://investor.vanguard.com/) @@ -139,7 +139,7 @@ This widely used performance measure calculates the [gain](../g/gain.md) or loss ### Alpha and Beta -- **[Alpha](../a/alpha.md)**: Represents the [excess return](../e/excess_return.md) of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index.md). +- **[Alpha](../a/alpha.md)**: Represents the [excess return](../e/excess_return.md) of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). - **[Beta](../b/beta.md)**: Measures the [volatility](../v/volatility.md) or [systematic risk](../s/systematic_risk.md) of an investment compared to the [market](../m/market.md) as a whole. ### Standard Deviation diff --git a/en/pedia/i/investment_product.md b/en/pedia/i/investment_product.md index 30c2da23..b8394685 100644 --- a/en/pedia/i/investment_product.md +++ b/en/pedia/i/investment_product.md @@ -78,11 +78,11 @@ A professional [fund manager](../f/fund_manager.md) oversees a [mutual fund](../ ## Exchange-Traded Funds (ETFs) -ETFs are similar to mutual funds but [trade](../t/trade.md) on stock exchanges. They aim to replicate the performance of a specific [index](../i/index.md), sector, [commodity](../c/commodity.md), or other assets. +ETFs are similar to mutual funds but [trade](../t/trade.md) on stock exchanges. They aim to replicate the performance of a specific [index](../i/index_instrument.md), sector, [commodity](../c/commodity.md), or other assets. ### How They Work -Investors buy [shares](../s/shares.md) of an ETF through brokerage accounts. ETFs employ various strategies, including passive ([index](../i/index.md)-tracking) and [active management](../a/active_management.md). +Investors buy [shares](../s/shares.md) of an ETF through brokerage accounts. ETFs employ various strategies, including passive ([index](../i/index_instrument.md)-tracking) and [active management](../a/active_management.md). ### Advantages @@ -93,7 +93,7 @@ Investors buy [shares](../s/shares.md) of an ETF through brokerage accounts. ETF ### Risks - **[Market Risk](../m/market_risk.md)**: Movement depends on the [underlying](../u/underlying.md) assets. -- **[Tracking Error](../t/tracking_error.md)**: Potential discrepancy between ETF performance and the tracked [index](../i/index.md). +- **[Tracking Error](../t/tracking_error.md)**: Potential discrepancy between ETF performance and the tracked [index](../i/index_instrument.md). - **[Liquidity Risk](../l/liquidity_risk.md)**: Some ETFs may have lower trading volumes. ### Typical Investors diff --git a/en/pedia/i/investment_securities.md b/en/pedia/i/investment_securities.md index a81cdb0d..30970b50 100644 --- a/en/pedia/i/investment_securities.md +++ b/en/pedia/i/investment_securities.md @@ -86,7 +86,7 @@ The CFTC regulates the U.S. [derivatives](../d/derivatives.md) markets, includin ### 1. Vanguard Group -Vanguard is one of the world's largest investment companies, [offering](../o/offering.md) a wide [range](../r/range.md) of mutual funds, ETFs, and other investment products. They are known for their low-cost [index](../i/index.md) funds. Website: [Vanguard.com](https://www.vanguard.com/) +Vanguard is one of the world's largest investment companies, [offering](../o/offering.md) a wide [range](../r/range.md) of mutual funds, ETFs, and other investment products. They are known for their low-cost [index](../i/index_instrument.md) funds. Website: [Vanguard.com](https://www.vanguard.com/) ### 2. BlackRock diff --git a/en/pedia/i/investment_strategy.md b/en/pedia/i/investment_strategy.md index 9bb4ffd8..5999d067 100644 --- a/en/pedia/i/investment_strategy.md +++ b/en/pedia/i/investment_strategy.md @@ -58,7 +58,7 @@ Visit [Berkshire Hathaway](https://www.berkshirehathaway.com) to learn more. [Benjamin Graham](../b/benjamin_graham.md) is often considered the father of [value investing](../v/value_investing.md). His works, including "The Intelligent [Investor](../i/investor.md)" and "[Security Analysis](../s/security_analysis.md)," continue to be essential reading for [value](../v/value.md) investors. His emphasis on [margin of safety](../m/margin_of_safety.md) and [intrinsic value](../i/intrinsic_value.md) has shaped modern investment philosophies. ### 3. John Bogle -[John Bogle](../j/john_bogle.md) was the founder of Vanguard Group and a key proponent of [index investing](../i/index_investing.md). He introduced the first [index](../i/index.md) [mutual fund](../m/mutual_fund.md) available to the general public and advocated for low-cost, [passive investment strategies](../p/passive_investment_strategies.md). His philosophy centers on buying and holding low-cost [index](../i/index.md) funds to match [market](../m/market.md) performance. +[John Bogle](../j/john_bogle.md) was the founder of Vanguard Group and a key proponent of [index investing](../i/index_investing.md). He introduced the first [index](../i/index_instrument.md) [mutual fund](../m/mutual_fund.md) available to the general public and advocated for low-cost, [passive investment strategies](../p/passive_investment_strategies.md). His philosophy centers on buying and holding low-cost [index](../i/index_instrument.md) funds to match [market](../m/market.md) performance. Visit [Vanguard](https://www.vanguard.com) to learn more. diff --git a/en/pedia/i/investment_vehicle.md b/en/pedia/i/investment_vehicle.md index 5f25e900..43a406b3 100644 --- a/en/pedia/i/investment_vehicle.md +++ b/en/pedia/i/investment_vehicle.md @@ -30,7 +30,7 @@ Mutual funds pool [money](../m/money.md) from [multiple](../m/multiple.md) inves - **[Diversification](../d/diversification.md):** By [investing](../i/investing.md) in a mix of assets, mutual funds reduce investment [risk](../r/risk.md). - **Professional Management:** Funds are managed by expert [fund](../f/fund.md) managers. - **[Fee](../f/fee.md) Structure:** May include management fees and other expenses. -- **Types:** Include [equity](../e/equity.md) funds, [bond](../b/bond.md) funds, [index](../i/index.md) funds, etc. +- **Types:** Include [equity](../e/equity.md) funds, [bond](../b/bond.md) funds, [index](../i/index_instrument.md) funds, etc. ## Exchange-Traded Funds (ETF) diff --git a/en/pedia/i/investor.md b/en/pedia/i/investor.md index 52fd7a3f..a08d81d0 100644 --- a/en/pedia/i/investor.md +++ b/en/pedia/i/investor.md @@ -53,7 +53,7 @@ Growth investors focus on companies expected to grow at an above-average rate co ### Index Investing -[Index investing](../i/index_investing.md) aims to replicate the performance of a specific [index](../i/index.md), such as the S&P 500. Investors buy [index](../i/index.md) funds or ETFs that track indices, [offering](../o/offering.md) [diversification](../d/diversification.md) and lower fees compared to actively managed funds. +[Index investing](../i/index_investing.md) aims to replicate the performance of a specific [index](../i/index_instrument.md), such as the S&P 500. Investors buy [index](../i/index_instrument.md) funds or ETFs that track indices, [offering](../o/offering.md) [diversification](../d/diversification.md) and lower fees compared to actively managed funds. ### Quantitative Investing diff --git a/en/pedia/i/iran_fara_bourse_(ifb).md b/en/pedia/i/iran_fara_bourse_(ifb).md index 9333a749..7161a5cf 100644 --- a/en/pedia/i/iran_fara_bourse_(ifb).md +++ b/en/pedia/i/iran_fara_bourse_(ifb).md @@ -65,9 +65,9 @@ Trading volumes have also been on an upward [trend](../t/trend.md), driven by in ### Key Indices The IFB has several indices that track the performance of different [market](../m/market.md) segments. These indices include: -- **IFX (Iran Fara Bourse [Index](../i/index.md))**: The primary [index](../i/index.md), reflecting the overall performance of the [market](../m/market.md). -- **IFB SME [Index](../i/index.md)**: Tracks the performance of the small and medium-sized enterprises segment. -- **IFB [Bond](../b/bond.md) [Index](../i/index.md)**: Measures the performance of the [bond](../b/bond.md) [market segment](../m/market_segment.md). +- **IFX (Iran Fara Bourse [Index](../i/index_instrument.md))**: The primary [index](../i/index_instrument.md), reflecting the overall performance of the [market](../m/market.md). +- **IFB SME [Index](../i/index_instrument.md)**: Tracks the performance of the small and medium-sized enterprises segment. +- **IFB [Bond](../b/bond.md) [Index](../i/index_instrument.md)**: Measures the performance of the [bond](../b/bond.md) [market segment](../m/market_segment.md). ## Impact of Technological Advancements diff --git a/en/pedia/i/iron_butterfly_strategies.md b/en/pedia/i/iron_butterfly_strategies.md index 1af26aba..817b03ef 100644 --- a/en/pedia/i/iron_butterfly_strategies.md +++ b/en/pedia/i/iron_butterfly_strategies.md @@ -14,7 +14,7 @@ The at-the-[money](../m/money.md) (ATM) put and call [options](../o/options.md) ## Construction of an Iron Butterfly To construct an [Iron Butterfly](../i/iron_butterfly.md), follow these steps: -1. **Select the [Underlying Asset](../u/underlying_asset.md)**: Choose the stock or [index](../i/index.md) you believe [will](../w/will.md) not exhibit large price movements during the [options](../o/options.md)' lifespan. +1. **Select the [Underlying Asset](../u/underlying_asset.md)**: Choose the stock or [index](../i/index_instrument.md) you believe [will](../w/will.md) not exhibit large price movements during the [options](../o/options.md)' lifespan. 2. **Determine the [Expiration Date](../e/expiration_date.md)**: Pick an [expiration date](../e/expiration_date.md) for the [options](../o/options.md) contracts based on your forecast for the [underlying asset](../u/underlying_asset.md). 3. **Choose the Middle [Strike Price](../s/strike_price.md)**: Select the at-the-[money](../m/money.md) [strike price](../s/strike_price.md), which is close to the current [market price](../m/market_price.md) of the [underlying asset](../u/underlying_asset.md). 4. **Establish the Wing Width**: Decide on the strike prices for the [out-of-the-money options](../o/out-of-the-money_options.md) (both call and put) that [will](../w/will.md) form the "wings" of the butterfly. diff --git a/en/pedia/i/irrational_exuberance.md b/en/pedia/i/irrational_exuberance.md index 00e8a9e3..b1eb5c95 100644 --- a/en/pedia/i/irrational_exuberance.md +++ b/en/pedia/i/irrational_exuberance.md @@ -63,7 +63,7 @@ Detecting irrational exuberance before a [market](../m/market.md) [correction](. - **[Volume](../v/volume.md) Spikes:** Unusual trading volumes can indicate speculative behavior. ### 4. **Technical Analysis** - - **[Technical Indicators](../t/technical_indicator.md):** Use of tools like [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) and Moving Averages to spot overextended [market](../m/market.md) conditions. + - **[Technical Indicators](../t/technical_indicator.md):** Use of tools like [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) and Moving Averages to spot overextended [market](../m/market.md) conditions. - **[Chart Patterns](../c/chart_patterns.md):** Identifying bubble-like patterns on price charts. ## Consequences of Irrational Exuberance diff --git a/en/pedia/i/ishares.md b/en/pedia/i/ishares.md index 6157c599..a046e043 100644 --- a/en/pedia/i/ishares.md +++ b/en/pedia/i/ishares.md @@ -34,28 +34,28 @@ iShares offers a diverse lineup of ETFs catering to various investment strategie ### Equities -- **iShares Core S&P 500 ETF (IVV)**: This ETF seeks to track the investment results of an [index](../i/index.md) composed of 500 of the largest U.S. companies. -- **iShares MSCI Emerging Markets ETF (EEM)**: This ETF seeks to track the investment results of an [index](../i/index.md) composed of large and [mid-cap](../m/mid-cap.md) emerging [market](../m/market.md) equities. +- **iShares Core S&P 500 ETF (IVV)**: This ETF seeks to track the investment results of an [index](../i/index_instrument.md) composed of 500 of the largest U.S. companies. +- **iShares MSCI Emerging Markets ETF (EEM)**: This ETF seeks to track the investment results of an [index](../i/index_instrument.md) composed of large and [mid-cap](../m/mid-cap.md) emerging [market](../m/market.md) equities. ### Fixed Income -- **iShares iBoxx $ [Investment Grade](../i/investment_grade.md) [Corporate Bond](../c/corporate_bond.md) ETF (LQD)**: This ETF seeks to track the investment results of an [index](../i/index.md) composed of U.S. dollar-denominated, investment-grade corporate bonds. -- **iShares [U.S. Treasury](../u/u.s._treasury.md) [Bond ETF](../b/bond_etf.md) (GOVT)**: This ETF seeks to track the investment results of an [index](../i/index.md) composed of [U.S. Treasury](../u/u.s._treasury.md) bonds. +- **iShares iBoxx $ [Investment Grade](../i/investment_grade.md) [Corporate Bond](../c/corporate_bond.md) ETF (LQD)**: This ETF seeks to track the investment results of an [index](../i/index_instrument.md) composed of U.S. dollar-denominated, investment-grade corporate bonds. +- **iShares [U.S. Treasury](../u/u.s._treasury.md) [Bond ETF](../b/bond_etf.md) (GOVT)**: This ETF seeks to track the investment results of an [index](../i/index_instrument.md) composed of [U.S. Treasury](../u/u.s._treasury.md) bonds. ### Sector & Industry -- **iShares Global Healthcare ETF (IXJ)**: This ETF seeks to track the investment results of an [index](../i/index.md) composed of [global equities](../g/global_equities.md) in the [healthcare sector](../h/healthcare_sector.md). -- **iShares U.S. Technology ETF (IYW)**: This ETF seeks to track the investment results of an [index](../i/index.md) composed of U.S. equities in the [technology sector](../t/technology_sector.md). +- **iShares Global Healthcare ETF (IXJ)**: This ETF seeks to track the investment results of an [index](../i/index_instrument.md) composed of [global equities](../g/global_equities.md) in the [healthcare sector](../h/healthcare_sector.md). +- **iShares U.S. Technology ETF (IYW)**: This ETF seeks to track the investment results of an [index](../i/index_instrument.md) composed of U.S. equities in the [technology sector](../t/technology_sector.md). ### Thematic & Innovation -- **iShares Global Clean Energy ETF (ICLN)**: This ETF seeks to track the investment results of an [index](../i/index.md) composed of [global equities](../g/global_equities.md) in the clean [energy sector](../e/energy_sector.md). -- **iShares MSCI USA ESG Select ETF (SUSA)**: This ETF seeks to track the investment results of an [index](../i/index.md) composed of U.S. companies with high environmental, social, and governance (ESG) performance relative to their sector peers. +- **iShares Global Clean Energy ETF (ICLN)**: This ETF seeks to track the investment results of an [index](../i/index_instrument.md) composed of [global equities](../g/global_equities.md) in the clean [energy sector](../e/energy_sector.md). +- **iShares MSCI USA ESG Select ETF (SUSA)**: This ETF seeks to track the investment results of an [index](../i/index_instrument.md) composed of U.S. companies with high environmental, social, and governance (ESG) performance relative to their sector peers. ### Regional & International -- **iShares MSCI ACWI ex U.S. ETF (ACWX)**: This ETF seeks to track the investment results of an [index](../i/index.md) composed of non-U.S. equities from both developed and emerging markets. -- **iShares Europe ETF (IEV)**: This ETF seeks to track the investment results of an [index](../i/index.md) composed of European equities. +- **iShares MSCI ACWI ex U.S. ETF (ACWX)**: This ETF seeks to track the investment results of an [index](../i/index_instrument.md) composed of non-U.S. equities from both developed and emerging markets. +- **iShares Europe ETF (IEV)**: This ETF seeks to track the investment results of an [index](../i/index_instrument.md) composed of European equities. ## iShares in the Context of Market Trends diff --git a/en/pedia/i/ism_manufacturing_index.md b/en/pedia/i/ism_manufacturing_index.md index 9c7dc94f..c6bc7935 100644 --- a/en/pedia/i/ism_manufacturing_index.md +++ b/en/pedia/i/ism_manufacturing_index.md @@ -2,15 +2,15 @@ ## Introduction to ISM Manufacturing Index -The ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md), also known as the Purchasing Managers' [Index](../i/index.md) (PMI), is a leading [economic indicator](../e/economic_indicator.md) compiled and released by the Institute for [Supply](../s/supply.md) Management (ISM). It provides critical insights into the overall economic health of the [manufacturing](../m/manufacturing.md) sector in the United States. The [index](../i/index.md) is derived from surveys of more than 300 purchasing managers across various industries, covering aspects such as new orders, production, employment, supplier deliveries, and inventories. The ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md) is a significant tool for investors, economists, and policy-makers. +The ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md), also known as the Purchasing Managers' [Index](../i/index_instrument.md) (PMI), is a leading [economic indicator](../e/economic_indicator.md) compiled and released by the Institute for [Supply](../s/supply.md) Management (ISM). It provides critical insights into the overall economic health of the [manufacturing](../m/manufacturing.md) sector in the United States. The [index](../i/index_instrument.md) is derived from surveys of more than 300 purchasing managers across various industries, covering aspects such as new orders, production, employment, supplier deliveries, and inventories. The ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md) is a significant tool for investors, economists, and policy-makers. ## Historical Background -The ISM, previously known as the National Association of Purchasing Management (NAPM), began compiling the [index](../i/index.md) in 1948. Over time, the [index](../i/index.md) has evolved to become one of the most reliable and widely followed [economic indicators](../e/economic_indicators.md). The ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md)'s methodology and composition have been periodically updated to reflect changing [economic conditions](../e/economic_conditions.md) and [industry](../i/industry.md) practices. +The ISM, previously known as the National Association of Purchasing Management (NAPM), began compiling the [index](../i/index_instrument.md) in 1948. Over time, the [index](../i/index_instrument.md) has evolved to become one of the most reliable and widely followed [economic indicators](../e/economic_indicators.md). The ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md)'s methodology and composition have been periodically updated to reflect changing [economic conditions](../e/economic_conditions.md) and [industry](../i/industry.md) practices. ## Methodology -The ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md) is calculated based on five major components, each [weighted](../w/weighted.md) equally at 20%: +The ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md) is calculated based on five major components, each [weighted](../w/weighted.md) equally at 20%: 1. **New Orders (20%)**: Measures the [volume](../v/volume.md) of new orders received by manufacturers. 2. **Production (20%)**: Reflects the production output levels. @@ -18,17 +18,17 @@ The ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md) is calcula 4. **Supplier Deliveries (20%)**: Evaluates the speed at which suppliers deliver goods and services. 5. **Inventories (20%)**: Gauges the level of inventories held by manufacturers. -Each component is assigned a diffusion [index](../i/index.md), which is then averaged to create the overall PMI. A reading above 50 indicates [expansion](../e/expansion.md) in the [manufacturing](../m/manufacturing.md) sector, while a reading below 50 signifies contraction. +Each component is assigned a diffusion [index](../i/index_instrument.md), which is then averaged to create the overall PMI. A reading above 50 indicates [expansion](../e/expansion.md) in the [manufacturing](../m/manufacturing.md) sector, while a reading below 50 signifies contraction. ## Importance of ISM Manufacturing Index -1. **[Economic Indicator](../e/economic_indicator.md)**: The ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md) is a [leading indicator](../l/leading_indicator.md) of economic performance. An increase in the [index](../i/index.md) often signals [economic growth](../e/economic_growth.md), while a decline may indicate a slowdown or [recession](../r/recession.md). +1. **[Economic Indicator](../e/economic_indicator.md)**: The ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md) is a [leading indicator](../l/leading_indicator.md) of economic performance. An increase in the [index](../i/index_instrument.md) often signals [economic growth](../e/economic_growth.md), while a decline may indicate a slowdown or [recession](../r/recession.md). -2. **[Market](../m/market.md) Sensitivity**: [Financial markets](../f/financial_market.md), including [stocks](../s/stock.md), bonds, and currencies, react strongly to the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md) due to its timely and comprehensive data. Positive readings can boost [market](../m/market.md) confidence, while negative readings can trigger [market](../m/market.md) sell-offs. +2. **[Market](../m/market.md) Sensitivity**: [Financial markets](../f/financial_market.md), including [stocks](../s/stock.md), bonds, and currencies, react strongly to the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md) due to its timely and comprehensive data. Positive readings can boost [market](../m/market.md) confidence, while negative readings can trigger [market](../m/market.md) sell-offs. -3. **Policy Decisions**: Central banks, such as the Federal Reserve, closely monitor the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md) as part of their decision-making process on [interest](../i/interest.md) rates and [monetary policy](../m/monetary_policy.md). +3. **Policy Decisions**: Central banks, such as the Federal Reserve, closely monitor the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md) as part of their decision-making process on [interest](../i/interest.md) rates and [monetary policy](../m/monetary_policy.md). -4. **[Business](../b/business.md) Planning**: Companies use the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md) to make informed decisions about production, staffing, and [inventory management](../i/inventory_management.md). It helps businesses anticipate [demand](../d/demand.md) and adjust their strategies accordingly. +4. **[Business](../b/business.md) Planning**: Companies use the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md) to make informed decisions about production, staffing, and [inventory management](../i/inventory_management.md). It helps businesses anticipate [demand](../d/demand.md) and adjust their strategies accordingly. ## Analyzing the Components @@ -56,7 +56,7 @@ The Inventories component measures the level of [raw materials](../r/raw_materia ### Expansion -When the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md) is above 50, it signifies [expansion](../e/expansion.md) in the [manufacturing](../m/manufacturing.md) sector. Sustained readings above 50 are typically associated with periods of [economic growth](../e/economic_growth.md), increased employment, and rising corporate profits. +When the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md) is above 50, it signifies [expansion](../e/expansion.md) in the [manufacturing](../m/manufacturing.md) sector. Sustained readings above 50 are typically associated with periods of [economic growth](../e/economic_growth.md), increased employment, and rising corporate profits. ### Contraction @@ -68,21 +68,21 @@ A PMI reading close to 50 suggests a [neutral](../n/neutral.md) [trend](../t/tre ## Seasonal Adjustments -The ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md) undergoes seasonal adjustments to account for predictable fluctuations in [manufacturing](../m/manufacturing.md) activity. These adjustments help provide a clearer picture of [underlying](../u/underlying.md) trends and minimize distortions caused by factors such as holidays, weather conditions, and seasonal [demand](../d/demand.md) changes. +The ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md) undergoes seasonal adjustments to account for predictable fluctuations in [manufacturing](../m/manufacturing.md) activity. These adjustments help provide a clearer picture of [underlying](../u/underlying.md) trends and minimize distortions caused by factors such as holidays, weather conditions, and seasonal [demand](../d/demand.md) changes. ## Historical Performance -Examining historical performance trends of the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md) can provide valuable insights into the [business cycle](../b/business_cycle.md). For example, the [index](../i/index.md) often peaks during periods of economic [expansion](../e/expansion.md) and bottoms out during recessions. Studying these historical patterns can help investors and analysts make more informed decisions. +Examining historical performance trends of the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md) can provide valuable insights into the [business cycle](../b/business_cycle.md). For example, the [index](../i/index_instrument.md) often peaks during periods of economic [expansion](../e/expansion.md) and bottoms out during recessions. Studying these historical patterns can help investors and analysts make more informed decisions. ## Criticisms and Limitations -While the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md) is highly regarded, it is not without its criticisms and limitations: +While the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md) is highly regarded, it is not without its criticisms and limitations: -1. **Sector Focus**: The [index](../i/index.md) focuses solely on the [manufacturing](../m/manufacturing.md) sector, which accounts for a smaller portion of the overall [economy](../e/economy.md) compared to the services sector. This can limit its applicability as a broad [economic indicator](../e/economic_indicator.md). +1. **Sector Focus**: The [index](../i/index_instrument.md) focuses solely on the [manufacturing](../m/manufacturing.md) sector, which accounts for a smaller portion of the overall [economy](../e/economy.md) compared to the services sector. This can limit its applicability as a broad [economic indicator](../e/economic_indicator.md). -2. **Lagging Data**: Despite being a [leading indicator](../l/leading_indicator.md), the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md) is based on survey data, which may be subject to reporting delays and revisions. +2. **Lagging Data**: Despite being a [leading indicator](../l/leading_indicator.md), the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md) is based on survey data, which may be subject to reporting delays and revisions. -3. **Subjectivity**: The [index](../i/index.md) is based on qualitative survey responses from purchasing managers, which can introduce an element of subjectivity and potential bias. +3. **Subjectivity**: The [index](../i/index_instrument.md) is based on qualitative survey responses from purchasing managers, which can introduce an element of subjectivity and potential bias. 4. **[Sampling](../s/sampling.md) Bias**: The sample size of 300 purchasing managers may not fully capture the diversity of the [manufacturing](../m/manufacturing.md) sector, potentially leading to [sampling](../s/sampling.md) bias. @@ -90,42 +90,42 @@ While the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md) is h ### Investment Strategy -Investors use the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md) to guide their investment strategies. Positive PMI readings can signal buying opportunities in the [stock market](../s/stock_market.md), particularly in sectors such as industrials, materials, and consumer discretionary. Conversely, negative readings may prompt investors to adopt defensive strategies. +Investors use the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md) to guide their investment strategies. Positive PMI readings can signal buying opportunities in the [stock market](../s/stock_market.md), particularly in sectors such as industrials, materials, and consumer discretionary. Conversely, negative readings may prompt investors to adopt defensive strategies. ### Economic Forecasting -Economists and analysts incorporate the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md) into their [economic forecasting](../e/economic_forecasting.md) models. By analyzing trends and correlations with other [economic indicators](../e/economic_indicators.md), they can make more accurate predictions about GDP growth, [inflation](../i/inflation.md), and employment. +Economists and analysts incorporate the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md) into their [economic forecasting](../e/economic_forecasting.md) models. By analyzing trends and correlations with other [economic indicators](../e/economic_indicators.md), they can make more accurate predictions about GDP growth, [inflation](../i/inflation.md), and employment. ### Supply Chain Management -Businesses use the insights from the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md) to optimize their [supply chain](../s/supply_chain.md) operations. Understanding trends in new orders, production, and supplier deliveries helps companies manage [inventory](../i/inventory.md) levels, reduce lead times, and improve overall [efficiency](../e/efficiency.md). +Businesses use the insights from the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md) to optimize their [supply chain](../s/supply_chain.md) operations. Understanding trends in new orders, production, and supplier deliveries helps companies manage [inventory](../i/inventory.md) levels, reduce lead times, and improve overall [efficiency](../e/efficiency.md). ### Policy Making -Government agencies and central banks utilize the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md) to inform policy decisions. For example, the Federal Reserve may adjust [interest](../i/interest.md) rates or implement monetary stimulus measures based on the [index](../i/index.md)'s readings to achieve economic stability and growth. +Government agencies and central banks utilize the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md) to inform policy decisions. For example, the Federal Reserve may adjust [interest](../i/interest.md) rates or implement monetary stimulus measures based on the [index](../i/index_instrument.md)'s readings to achieve economic stability and growth. ## Notable Trends and Case Studies ### Global Financial Crisis (2008-2009) -During the global [financial crisis](../f/financial_crisis.md), the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md) plummeted to historically low levels, reflecting the severe contraction in economic activity. The [index](../i/index.md)'s rapid decline was an early warning sign of the impending [recession](../r/recession.md). As the [economy](../e/economy.md) began to recover, the [index](../i/index.md) gradually improved, signaling a rebound in [manufacturing](../m/manufacturing.md) activity. +During the global [financial crisis](../f/financial_crisis.md), the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md) plummeted to historically low levels, reflecting the severe contraction in economic activity. The [index](../i/index_instrument.md)'s rapid decline was an early warning sign of the impending [recession](../r/recession.md). As the [economy](../e/economy.md) began to recover, the [index](../i/index_instrument.md) gradually improved, signaling a rebound in [manufacturing](../m/manufacturing.md) activity. ### COVID-19 Pandemic (2020) -The COVID-19 pandemic had a profound impact on the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md). In the early months of 2020, the [index](../i/index.md) experienced sharp declines as lockdowns and [supply chain](../s/supply_chain.md) disruptions halted production. However, by the second half of the year, the [index](../i/index.md) rebounded significantly due to increased [demand](../d/demand.md) for goods, e-[commerce](../c/commerce.md) growth, and government stimulus measures. +The COVID-19 pandemic had a profound impact on the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md). In the early months of 2020, the [index](../i/index_instrument.md) experienced sharp declines as lockdowns and [supply chain](../s/supply_chain.md) disruptions halted production. However, by the second half of the year, the [index](../i/index_instrument.md) rebounded significantly due to increased [demand](../d/demand.md) for goods, e-[commerce](../c/commerce.md) growth, and government stimulus measures. ### Trade Wars and Tariffs -[Trade](../t/trade.md) wars and tariffs have also influenced the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md). For instance, the US-China [trade war](../t/trade_war.md) led to fluctuating PMI readings as manufacturers dealt with uncertainties and disruptions in global [trade](../t/trade.md). These events highlighted the [index](../i/index.md)'s sensitivity to geopolitical developments. +[Trade](../t/trade.md) wars and tariffs have also influenced the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md). For instance, the US-China [trade war](../t/trade_war.md) led to fluctuating PMI readings as manufacturers dealt with uncertainties and disruptions in global [trade](../t/trade.md). These events highlighted the [index](../i/index_instrument.md)'s sensitivity to geopolitical developments. ## Key Resources -1. **Institute for [Supply](../s/supply.md) Management (ISM)**: The official website of ISM provides detailed reports, historical data, and methodology for the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md). [ISM Website](https://www.ismworld.org/) +1. **Institute for [Supply](../s/supply.md) Management (ISM)**: The official website of ISM provides detailed reports, historical data, and methodology for the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md). [ISM Website](https://www.ismworld.org/) -2. **Federal Reserve Economic Data (FRED)**: FRED offers comprehensive historical data and charts for the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md), enabling users to conduct in-depth analysis. [FRED ISM Data](https://fred.stlouisfed.org/series/NAPM) +2. **Federal Reserve Economic Data (FRED)**: FRED offers comprehensive historical data and charts for the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md), enabling users to conduct in-depth analysis. [FRED ISM Data](https://fred.stlouisfed.org/series/NAPM) -3. **[Bloomberg](../b/bloomberg.md)**: [Bloomberg](../b/bloomberg.md) provides real-time updates, analysis, and insights on the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md), along with its impact on [financial markets](../f/financial_market.md). [Bloomberg](https://www.bloomberg.com/) +3. **[Bloomberg](../b/bloomberg.md)**: [Bloomberg](../b/bloomberg.md) provides real-time updates, analysis, and insights on the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md), along with its impact on [financial markets](../f/financial_market.md). [Bloomberg](https://www.bloomberg.com/) ## Conclusion -The ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md) is a vital [economic indicator](../e/economic_indicator.md) that offers valuable insights into the health of the [manufacturing](../m/manufacturing.md) sector and the broader [economy](../e/economy.md). Its components provide a comprehensive view of production activity, [demand](../d/demand.md) trends, employment levels, and [supply chain](../s/supply_chain.md) dynamics. Despite its limitations, the [index](../i/index.md) remains a crucial tool for investors, economists, policymakers, and [business](../b/business.md) leaders in making informed decisions and anticipating economic trends. Understanding and analyzing the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index.md) can lead to more strategic planning, better [risk management](../r/risk_management.md), and improved [economic forecasting](../e/economic_forecasting.md). \ No newline at end of file +The ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md) is a vital [economic indicator](../e/economic_indicator.md) that offers valuable insights into the health of the [manufacturing](../m/manufacturing.md) sector and the broader [economy](../e/economy.md). Its components provide a comprehensive view of production activity, [demand](../d/demand.md) trends, employment levels, and [supply chain](../s/supply_chain.md) dynamics. Despite its limitations, the [index](../i/index_instrument.md) remains a crucial tool for investors, economists, policymakers, and [business](../b/business.md) leaders in making informed decisions and anticipating economic trends. Understanding and analyzing the ISM [Manufacturing](../m/manufacturing.md) [Index](../i/index_instrument.md) can lead to more strategic planning, better [risk management](../r/risk_management.md), and improved [economic forecasting](../e/economic_forecasting.md). \ No newline at end of file diff --git a/en/pedia/i/istanbul_stock_exchange_(bist).md b/en/pedia/i/istanbul_stock_exchange_(bist).md index f4823212..2ce813c1 100644 --- a/en/pedia/i/istanbul_stock_exchange_(bist).md +++ b/en/pedia/i/istanbul_stock_exchange_(bist).md @@ -16,10 +16,10 @@ Borsa İstanbul operates under a multi-tier structure that comprises several dis ## Equities and Indices -The BIST 100 is the [benchmark](../b/benchmark.md) stock [index](../i/index.md) of Borsa İstanbul. It includes the top 100 companies by [market capitalization](../m/market_capitalization.md) and [liquidity](../l/liquidity.md), reflecting the overall performance of the Turkish [equity market](../e/equity_market.md). Other significant indices include: +The BIST 100 is the [benchmark](../b/benchmark.md) stock [index](../i/index_instrument.md) of Borsa İstanbul. It includes the top 100 companies by [market capitalization](../m/market_capitalization.md) and [liquidity](../l/liquidity.md), reflecting the overall performance of the Turkish [equity market](../e/equity_market.md). Other significant indices include: - **BIST 30**: Composed of the 30 highest-performing [stocks](../s/stock.md). - **BIST 50**: Comprising 50 notable companies. -- **BIST Sustainability [Index](../i/index.md)**: Focuses on firms adhering to sustainability principles. +- **BIST Sustainability [Index](../i/index_instrument.md)**: Focuses on firms adhering to sustainability principles. ### Notable Listed Companies diff --git a/en/pedia/j/j-chart_patterns.md b/en/pedia/j/j-chart_patterns.md index 4c9fdaa9..ad984596 100644 --- a/en/pedia/j/j-chart_patterns.md +++ b/en/pedia/j/j-chart_patterns.md @@ -38,7 +38,7 @@ Advanced [pattern recognition](../p/pattern_recognition.md) algorithms use machi ### Indicator Integration -[Technical indicators](../t/technical_indicators.md) such as Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) can be integrated into algorithms to enhance the accuracy of J-Chart pattern detection. For example, a J-Shaped [Rally](../r/rally.md) might be confirmed by a bullish crossover in moving averages or an increase in RSI. +[Technical indicators](../t/technical_indicators.md) such as Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) can be integrated into algorithms to enhance the accuracy of J-Chart pattern detection. For example, a J-Shaped [Rally](../r/rally.md) might be confirmed by a bullish crossover in moving averages or an increase in RSI. ### Backtesting and Optimization diff --git a/en/pedia/j/j-patterns_in_stock_returns.md b/en/pedia/j/j-patterns_in_stock_returns.md index 5e8e7625..503ac0db 100644 --- a/en/pedia/j/j-patterns_in_stock_returns.md +++ b/en/pedia/j/j-patterns_in_stock_returns.md @@ -32,7 +32,7 @@ The identification and exploitation of J-patterns [offer](../o/offer.md) valuabl ### Example of a J-Pattern Algorithm -A simple J-pattern detection algorithm might use [technical indicators](../t/technical_indicators.md) such as [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) and Moving Average Convergence [Divergence](../d/divergence.md) (MACD) to pinpoint potential buy signals at the bottom of the J-formation. The algorithm would look for: +A simple J-pattern detection algorithm might use [technical indicators](../t/technical_indicators.md) such as [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) and Moving Average Convergence [Divergence](../d/divergence.md) (MACD) to pinpoint potential buy signals at the bottom of the J-formation. The algorithm would look for: 1. RSI values below 30 indicating [oversold](../o/oversold.md) conditions. 2. A MACD crossover signifying a change in [momentum](../m/momentum.md). 3. Confirmation through [volume](../v/volume.md) spikes suggesting the exhaustion of selling pressure. diff --git a/en/pedia/j/jakarta_stock_exchange.md b/en/pedia/j/jakarta_stock_exchange.md index 8e405411..67944d98 100644 --- a/en/pedia/j/jakarta_stock_exchange.md +++ b/en/pedia/j/jakarta_stock_exchange.md @@ -66,14 +66,14 @@ Traders have the flexibility to use [market](../m/market.md) orders for immediat ### Jakarta Composite Index (JCI) -The JCI, or IDX Composite, is the [benchmark](../b/benchmark.md) [index](../i/index.md) representing all [listed](../l/listed.md) companies on the IDX. It reflects overall [market](../m/market.md) performance and is a crucial reference for algorithmic traders. The JCI aids in: +The JCI, or IDX Composite, is the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) representing all [listed](../l/listed.md) companies on the IDX. It reflects overall [market](../m/market.md) performance and is a crucial reference for algorithmic traders. The JCI aids in: - **[Market Sentiment Analysis](../m/market_sentiment_analysis.md):** Gauges [investor](../i/investor.md) sentiment and [market](../m/market.md) trends, aiding in the formulation of [trading strategies](../t/trading_strategies.md). - **Portfolio Benchmarking:** Provides a comparative measure for [portfolio performance](../p/portfolio_performance.md) evaluation. ### LQ45 Index -The LQ45 [Index](../i/index.md) comprises the top 45 most [liquid](../l/liquid.md) and fundamentally strong [stocks](../s/stock.md). It serves as a vital tool for [algorithmic trading](../a/accountability.md) due to its attributes: +The LQ45 [Index](../i/index_instrument.md) comprises the top 45 most [liquid](../l/liquid.md) and fundamentally strong [stocks](../s/stock.md). It serves as a vital tool for [algorithmic trading](../a/accountability.md) due to its attributes: - **[Liquidity](../l/liquidity.md):** High [liquidity](../l/liquidity.md) ensures seamless [trade](../t/trade.md) [execution](../e/execution.md) for algorithmic strategies. - **[Volatility](../v/volatility.md):** Intraday price movements [offer](../o/offer.md) opportunities for [high-frequency trading algorithms](../h/high-frequency_trading_algorithms.md). diff --git a/en/pedia/j/japan_etf.md b/en/pedia/j/japan_etf.md index ff4db892..2210552a 100644 --- a/en/pedia/j/japan_etf.md +++ b/en/pedia/j/japan_etf.md @@ -1,24 +1,24 @@ # Japan ETF -[Exchange](../e/exchange.md)-Traded Funds (ETFs) have become widely popular for their ability to [offer](../o/offer.md) diversified exposure to various markets without the necessity of buying individual [stocks](../s/stock.md). Japan ETFs, in particular, are financial instruments aimed at giving investors exposure to the Japanese [equity](../e/equity.md) markets. These ETFs track a specific [index](../i/index.md) or sector within Japan’s [economy](../e/economy.md), providing a convenient and efficient means to [gain](../g/gain.md) exposure to the Japanese [market](../m/market.md) without the complexity of handling individual Japanese [stocks](../s/stock.md). This article delves into the intricacies of Japan ETFs, covering their mechanisms, types, benefits, and potential drawbacks. +[Exchange](../e/exchange.md)-Traded Funds (ETFs) have become widely popular for their ability to [offer](../o/offer.md) diversified exposure to various markets without the necessity of buying individual [stocks](../s/stock.md). Japan ETFs, in particular, are financial instruments aimed at giving investors exposure to the Japanese [equity](../e/equity.md) markets. These ETFs track a specific [index](../i/index_instrument.md) or sector within Japan’s [economy](../e/economy.md), providing a convenient and efficient means to [gain](../g/gain.md) exposure to the Japanese [market](../m/market.md) without the complexity of handling individual Japanese [stocks](../s/stock.md). This article delves into the intricacies of Japan ETFs, covering their mechanisms, types, benefits, and potential drawbacks. ## What is a Japan ETF? -A Japan ETF is a type of [exchange](../e/exchange.md)-traded [fund](../f/fund.md) that focuses on Japanese equities. These funds aim to replicate the performance of a particular [index](../i/index.md) or sector within the Japanese [market](../m/market.md). The primary [index](../i/index.md) followed by many Japan ETFs is the [Nikkei](../n/nikkei.md) 225, which is composed of 225 of the largest companies [listed](../l/listed.md) on the Tokyo Stock [Exchange](../e/exchange.md). Other popular indices include the TOPIX (Tokyo Stock Price [Index](../i/index.md)) and MSCI Japan [Index](../i/index.md). +A Japan ETF is a type of [exchange](../e/exchange.md)-traded [fund](../f/fund.md) that focuses on Japanese equities. These funds aim to replicate the performance of a particular [index](../i/index_instrument.md) or sector within the Japanese [market](../m/market.md). The primary [index](../i/index_instrument.md) followed by many Japan ETFs is the [Nikkei](../n/nikkei.md) 225, which is composed of 225 of the largest companies [listed](../l/listed.md) on the Tokyo Stock [Exchange](../e/exchange.md). Other popular indices include the TOPIX (Tokyo Stock Price [Index](../i/index_instrument.md)) and MSCI Japan [Index](../i/index_instrument.md). ETFs are traded on stock exchanges, similar to individual [stocks](../s/stock.md), and their prices fluctuate throughout the trading day. This makes them a [liquid](../l/liquid.md) and accessible option for investors interested in Japanese markets without the need to deal with local [market](../m/market.md) specifics and individual company assessments. ## Mechanism of Japan ETFs -Japan ETFs operate similarly to other ETFs. They are created and managed by [fund](../f/fund.md) managers who aim to replicate the performance of a particular [benchmark](../b/benchmark.md) [index](../i/index.md). The process involves several key steps: +Japan ETFs operate similarly to other ETFs. They are created and managed by [fund](../f/fund.md) managers who aim to replicate the performance of a particular [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). The process involves several key steps: -1. **Selection of [Index](../i/index.md):** The [fund manager](../f/fund_manager.md) selects an [index](../i/index.md) that the ETF [will](../w/will.md) track. This could be a broad [market index](../m/market_index.md) like the [Nikkei](../n/nikkei.md) 225 or a more specialized [index](../i/index.md) focusing on sectors such as technology or healthcare. +1. **Selection of [Index](../i/index_instrument.md):** The [fund manager](../f/fund_manager.md) selects an [index](../i/index_instrument.md) that the ETF [will](../w/will.md) track. This could be a broad [market index](../m/market_index.md) like the [Nikkei](../n/nikkei.md) 225 or a more specialized [index](../i/index_instrument.md) focusing on sectors such as technology or healthcare. -2. **Creation of ETF Units:** The [fund manager](../f/fund_manager.md) creates ETF units by purchasing a basket of [stocks](../s/stock.md) that closely mirrors the selected [index](../i/index.md). +2. **Creation of ETF Units:** The [fund manager](../f/fund_manager.md) creates ETF units by purchasing a basket of [stocks](../s/stock.md) that closely mirrors the selected [index](../i/index_instrument.md). 3. **Listing on [Exchange](../e/exchange.md):** These ETF units are then [listed](../l/listed.md) on a stock [exchange](../e/exchange.md), making them available for trading among investors. The listing may occur in various international markets, including those outside Japan. -4. **Ongoing Management:** The [fund manager](../f/fund_manager.md) continuously monitors and adjusts the ETF’s [holdings](../h/holdings.md) to ensure it remains aligned with the performance of the [underlying](../u/underlying.md) [index](../i/index.md). +4. **Ongoing Management:** The [fund manager](../f/fund_manager.md) continuously monitors and adjusts the ETF’s [holdings](../h/holdings.md) to ensure it remains aligned with the performance of the [underlying](../u/underlying.md) [index](../i/index_instrument.md). ## Types of Japan ETFs @@ -26,7 +26,7 @@ There are several types of Japan ETFs available, each [offering](../o/offering.m ### Broad Market Japan ETFs -These ETFs aim to provide exposure to a wide [range](../r/range.md) of Japanese [stocks](../s/stock.md), generally mirroring comprehensive indices like the [Nikkei](../n/nikkei.md) 225 or the MSCI Japan [Index](../i/index.md). Examples include: +These ETFs aim to provide exposure to a wide [range](../r/range.md) of Japanese [stocks](../s/stock.md), generally mirroring comprehensive indices like the [Nikkei](../n/nikkei.md) 225 or the MSCI Japan [Index](../i/index_instrument.md). Examples include: - **[iShares](../i/ishares.md) MSCI Japan ETF (EWJ):** - [iShares MSCI Japan ETF](https://www.ishares.com/us/products/239665/) @@ -93,7 +93,7 @@ Investors in Japan ETFs have no control over the individual [stocks](../s/stock. ### Tracking Error -ETFs aim to replicate the performance of an [index](../i/index.md), but there is always a [risk](../r/risk.md) of [tracking error](../t/tracking_error.md), where the ETF does not perfectly match the performance of the [index](../i/index.md). This can occur due to management fees, expenses, or delays in [rebalancing](../r/rebalancing.md) the ETF’s [holdings](../h/holdings.md). +ETFs aim to replicate the performance of an [index](../i/index_instrument.md), but there is always a [risk](../r/risk.md) of [tracking error](../t/tracking_error.md), where the ETF does not perfectly match the performance of the [index](../i/index_instrument.md). This can occur due to management fees, expenses, or delays in [rebalancing](../r/rebalancing.md) the ETF’s [holdings](../h/holdings.md). ## Selecting a Japan ETF @@ -101,7 +101,7 @@ Choosing the right Japan ETF involves considering various factors that align wit ### Index -Determine which [index](../i/index.md) the ETF tracks and ensure it aligns with your desired [market exposure](../m/market_exposure.md). Broad indices like the [Nikkei](../n/nikkei.md) 225 provide general [market exposure](../m/market_exposure.md), while sector-specific indices [offer](../o/offer.md) more targeted investments. +Determine which [index](../i/index_instrument.md) the ETF tracks and ensure it aligns with your desired [market exposure](../m/market_exposure.md). Broad indices like the [Nikkei](../n/nikkei.md) 225 provide general [market exposure](../m/market_exposure.md), while sector-specific indices [offer](../o/offer.md) more targeted investments. ### Expense Ratio @@ -109,7 +109,7 @@ Compare the [expense](../e/expense.md) ratios of different Japan ETFs. Lower [ex ### Performance History -Review the performance history of the ETF. While past performance is not indicative of future results, it can provide insights into how well the ETF has tracked its [underlying](../u/underlying.md) [index](../i/index.md) and managed [market](../m/market.md) challenges. +Review the performance history of the ETF. While past performance is not indicative of future results, it can provide insights into how well the ETF has tracked its [underlying](../u/underlying.md) [index](../i/index_instrument.md) and managed [market](../m/market.md) challenges. ### Trading Volume @@ -130,7 +130,7 @@ Below are some popular Japan ETFs that investors commonly consider: ### iShares MSCI Japan ETF (EWJ) - **Link:** [iShares MSCI Japan ETF](https://www.ishares.com/us/products/239665/) -- **Objective:** Tracks the MSCI Japan [Index](../i/index.md), providing broad exposure to Japanese large and mid-sized companies. +- **Objective:** Tracks the MSCI Japan [Index](../i/index_instrument.md), providing broad exposure to Japanese large and mid-sized companies. - **[Expense Ratio](../e/expense_ratio.md):** 0.48% ### WisdomTree Japan Hedged Equity ETF (DXJ) @@ -142,7 +142,7 @@ Below are some popular Japan ETFs that investors commonly consider: ### Xtrackers MSCI Japan Hedged Equity ETF (DBJP) - **Link:** [Xtrackers MSCI Japan Hedged Equity ETF](https://etfus.deutscheam.com/US/EN/Product-Details/251/Xtrackers-MSCI-Japan-Hedged-Equity-ETF) -- **Objective:** Tracks the MSCI Japan US Dollar Hedged [Index](../i/index.md), [offering](../o/offering.md) exposure to Japanese equities while mitigating [currency](../c/currency.md) [risk](../r/risk.md). +- **Objective:** Tracks the MSCI Japan US Dollar Hedged [Index](../i/index_instrument.md), [offering](../o/offering.md) exposure to Japanese equities while mitigating [currency](../c/currency.md) [risk](../r/risk.md). - **[Expense Ratio](../e/expense_ratio.md):** 0.45% ### JP Morgan BetaBuilders Japan ETF (BBJP) @@ -154,7 +154,7 @@ Below are some popular Japan ETFs that investors commonly consider: ### Franklin FTSE Japan ETF (FLJP) - **Link:** [Franklin FTSE Japan ETF](https://www.franklintempleton.com/investments/options/exchange-traded-funds/etfs/323/franklin-ftse-japan-etf) -- **Objective:** Tracks the FTSE Japan RIC Capped [Index](../i/index.md), providing broad exposure to Japanese markets with a focus on [liquidity](../l/liquidity.md). +- **Objective:** Tracks the FTSE Japan RIC Capped [Index](../i/index_instrument.md), providing broad exposure to Japanese markets with a focus on [liquidity](../l/liquidity.md). - **[Expense Ratio](../e/expense_ratio.md):** 0.09% ## Conclusion diff --git a/en/pedia/j/japanese_economy_indicators.md b/en/pedia/j/japanese_economy_indicators.md index 0a17c506..8454c135 100644 --- a/en/pedia/j/japanese_economy_indicators.md +++ b/en/pedia/j/japanese_economy_indicators.md @@ -20,7 +20,7 @@ The Tankan survey, conducted by the [Bank](../b/bank.md) of Japan, is a quarterl ### Key Aspects: - **Short-term Economic Outlook**: Sums up [business](../b/business.md) conditions and future expectations. -- **Diffusion [Index](../i/index.md) (DI)**: Calculated by subtracting the percentage of companies reporting unfavorable conditions from those reporting favorable conditions. +- **Diffusion [Index](../i/index_instrument.md) (DI)**: Calculated by subtracting the percentage of companies reporting unfavorable conditions from those reporting favorable conditions. ### Importance in Japan: The Tankan Survey is a critical [indicator](../i/indicator.md) of the [business](../b/business.md) climate in Japan. It's closely watched by the [Bank](../b/bank.md) of Japan when setting [monetary policy](../m/monetary_policy.md) and by investors to gauge the economic environment. @@ -43,7 +43,7 @@ Japan's [unemployment rate](../u/unemployment_rate.md) reveals the health of its The [inflation](../i/inflation.md) rate measures the rate at which the general level of prices for goods and services is rising, thereby eroding [purchasing power](../p/purchasing_power.md). ### Key Aspects: -- **Consumer Price [Index](../i/index.md) (CPI)**: Measures changes in the [price level](../p/price_level.md) of a [market](../m/market.md) basket of [consumer goods](../c/consumer_goods.md) and services. +- **Consumer Price [Index](../i/index_instrument.md) (CPI)**: Measures changes in the [price level](../p/price_level.md) of a [market](../m/market.md) basket of [consumer goods](../c/consumer_goods.md) and services. - **Core [Inflation](../i/inflation.md)**: Excludes certain items that face volatile price movement, typically food and energy. ### Importance in Japan: @@ -68,7 +68,7 @@ Japan's current [account balance](../a/account_balance.md) is significant due to Industrial production measures the output of the industrial sector of the [economy](../e/economy.md), which includes [mining](../m/mining.md), [manufacturing](../m/manufacturing.md), and utilities. ### Key Aspects: -- **Production [Index](../i/index.md)**: Tracks the real output of factories, mines, and utilities. +- **Production [Index](../i/index_instrument.md)**: Tracks the real output of factories, mines, and utilities. - **Capacity Utilization**: Proportion of potential economic output that is actually realized. ### Importance in Japan: diff --git a/en/pedia/j/japanese_government_bond_(jgb).md b/en/pedia/j/japanese_government_bond_(jgb).md index 8c7e23ad..db454185 100644 --- a/en/pedia/j/japanese_government_bond_(jgb).md +++ b/en/pedia/j/japanese_government_bond_(jgb).md @@ -15,7 +15,7 @@ T-Bills are short-term [discount](../d/discount.md) instruments with maturities Floating rate bonds have variable [interest](../i/interest.md) rates, which are adjusted periodically based on fixed intervals or indices such as the Tokyo Interbank Offered Rate (TIBOR). These bonds protect investors against [interest rate](../i/interest_rate.md) [volatility](../v/volatility.md). ### Inflation-Indexed Bonds -[Inflation](../i/inflation.md)-indexed JGBs are designed to protect investors from [inflation](../i/inflation.md) [risk](../r/risk.md). The [principal](../p/principal.md) and [interest](../i/interest.md) payments are adjusted according to changes in the Consumer Price [Index](../i/index.md) (CPI), ensuring that the real [value](../v/value.md) of the investment remains stable. +[Inflation](../i/inflation.md)-indexed JGBs are designed to protect investors from [inflation](../i/inflation.md) [risk](../r/risk.md). The [principal](../p/principal.md) and [interest](../i/interest.md) payments are adjusted according to changes in the Consumer Price [Index](../i/index_instrument.md) (CPI), ensuring that the real [value](../v/value.md) of the investment remains stable. ### Retail JGBs Retail JGBs are specifically tailored for individual investors. They come with various maturities and can include fixed or floating rates. These bonds are marketed through financial institutions and have features that appeal to retail investors, such as relatively low minimum investment amounts. diff --git a/en/pedia/j/japanese_interest_rate_analysis.md b/en/pedia/j/japanese_interest_rate_analysis.md index aec8ec3d..0a811a5c 100644 --- a/en/pedia/j/japanese_interest_rate_analysis.md +++ b/en/pedia/j/japanese_interest_rate_analysis.md @@ -32,7 +32,7 @@ Several [economic indicators](../e/economic_indicators.md) heavily influence the ### Inflation Rate -Measured by the Consumer Price [Index](../i/index.md) (CPI), [inflation](../i/inflation.md) significantly affects [interest rate](../i/interest_rate.md) decisions. The BOJ targets an [inflation](../i/inflation.md) rate of 2%, a level it believes conducive to sustainable [economic growth](../e/economic_growth.md). Persistent [deflation](../d/deflation.md) or low [inflation](../i/inflation.md) typically prompts the BOJ to maintain or lower [interest](../i/interest.md) rates. +Measured by the Consumer Price [Index](../i/index_instrument.md) (CPI), [inflation](../i/inflation.md) significantly affects [interest rate](../i/interest_rate.md) decisions. The BOJ targets an [inflation](../i/inflation.md) rate of 2%, a level it believes conducive to sustainable [economic growth](../e/economic_growth.md). Persistent [deflation](../d/deflation.md) or low [inflation](../i/inflation.md) typically prompts the BOJ to maintain or lower [interest](../i/interest.md) rates. ### Gross Domestic Product (GDP) Growth diff --git a/en/pedia/j/japanese_stock_market_cycles.md b/en/pedia/j/japanese_stock_market_cycles.md index 457ddeda..5c2c693b 100644 --- a/en/pedia/j/japanese_stock_market_cycles.md +++ b/en/pedia/j/japanese_stock_market_cycles.md @@ -17,7 +17,7 @@ Often referred to as the "Japanese Economic Miracle," this era saw unprecedented - Investment in education and research and development. - Growth of major corporations such as Toyota, Sony, and Mitsubishi. -The [stock market](../s/stock_market.md) flourished during this period, with the [Nikkei](../n/nikkei.md) 225 [index](../i/index.md), a major stock [market index](../m/market_index.md) for the Tokyo Stock [Exchange](../e/exchange.md), experiencing substantial gains. +The [stock market](../s/stock_market.md) flourished during this period, with the [Nikkei](../n/nikkei.md) 225 [index](../i/index_instrument.md), a major stock [market index](../m/market_index.md) for the Tokyo Stock [Exchange](../e/exchange.md), experiencing substantial gains. ### The Bubble Economy (1986-1991) One of the most notable cycles in the Japanese [stock market](../s/stock_market.md) was the bubble [economy](../e/economy.md) of the late 1980s. This period was characterized by: @@ -35,7 +35,7 @@ Following the collapse of the bubble [economy](../e/economy.md), Japan entered a - A banking crisis due to non-performing loans. - Slow [economic growth](../e/economic_growth.md) and persistent [deflation](../d/deflation.md). -The [Nikkei](../n/nikkei.md) 225 [index](../i/index.md) plummeted to below 15,000 points by the late 1990s. The government's efforts to stimulate the [economy](../e/economy.md) through various fiscal and monetary policies had limited success during this period. +The [Nikkei](../n/nikkei.md) 225 [index](../i/index_instrument.md) plummeted to below 15,000 points by the late 1990s. The government's efforts to stimulate the [economy](../e/economy.md) through various fiscal and monetary policies had limited success during this period. ## The Recovery and Abenomics (2000-present) ### Early 2000s Recovery diff --git a/en/pedia/j/japanese_yen_trading_strategies.md b/en/pedia/j/japanese_yen_trading_strategies.md index 590caced..a3c7b383 100644 --- a/en/pedia/j/japanese_yen_trading_strategies.md +++ b/en/pedia/j/japanese_yen_trading_strategies.md @@ -35,7 +35,7 @@ The Japanese Yen (JPY) is one of the most traded currencies in the world, playin 1. **[Moving Average Crossovers](../m/moving_average_crossovers.md)**: Using different timeframes of moving averages (e.g., 50-day and 200-day) to signal buy/sell decisions. An algorithm continuously monitors these moving averages and generates [trading signals](../t/trading_signals.md) when they cross. -2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: A [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) measuring the speed and change of price movements. A high RSI might signal an [overbought](../o/overbought.md) condition, while a low RSI might indicate an [oversold](../o/oversold.md) condition. Algorithms can be programmed to [trade](../t/trade.md) based on these RSI levels. +2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: A [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) measuring the speed and change of price movements. A high RSI might signal an [overbought](../o/overbought.md) condition, while a low RSI might indicate an [oversold](../o/oversold.md) condition. Algorithms can be programmed to [trade](../t/trade.md) based on these RSI levels. ### Mean Reversion Strategies diff --git a/en/pedia/j/jensen's_alpha.md b/en/pedia/j/jensen's_alpha.md index cbaa294b..62b1ac6c 100644 --- a/en/pedia/j/jensen's_alpha.md +++ b/en/pedia/j/jensen's_alpha.md @@ -1,6 +1,6 @@ # Jensen's Alpha -Jensen's [Alpha](../a/alpha.md), also referred to merely as [Alpha](../a/alpha.md) in financial contexts, is a measure of the [excess return](../e/excess_return.md) that a portfolio or an investment generates over its [expected return](../e/expected_return.md), given its [risk](../r/risk.md), as defined by the [Capital Asset](../c/capital_asset.md) Pricing Model (CAPM). In essence, it quantifies the [value](../v/value.md)-added or subtracted by the [portfolio manager](../p/portfolio_manager.md), reflecting the performance of an investment against a [benchmark](../b/benchmark.md) [index](../i/index.md) or the overall [market](../m/market.md). The concept is named after Michael Jensen, who introduced it in 1968. +Jensen's [Alpha](../a/alpha.md), also referred to merely as [Alpha](../a/alpha.md) in financial contexts, is a measure of the [excess return](../e/excess_return.md) that a portfolio or an investment generates over its [expected return](../e/expected_return.md), given its [risk](../r/risk.md), as defined by the [Capital Asset](../c/capital_asset.md) Pricing Model (CAPM). In essence, it quantifies the [value](../v/value.md)-added or subtracted by the [portfolio manager](../p/portfolio_manager.md), reflecting the performance of an investment against a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) or the overall [market](../m/market.md). The concept is named after Michael Jensen, who introduced it in 1968. ### Definition and Calculation Jensen's [Alpha](../a/alpha.md) is calculated using the CAPM equation, which expresses the relationship between the [expected return](../e/expected_return.md) of an [asset](../a/asset.md) or a portfolio and the [market](../m/market.md) [return](../r/return.md), given the [asset](../a/asset.md)'s or portfolio's [beta](../b/beta.md) (a measure of its [systemic risk](../s/systemic_risk.md)). The formula for Jensen's [Alpha](../a/alpha.md) is: diff --git a/en/pedia/j/jgb_(japanese_government_bonds)_trading.md b/en/pedia/j/jgb_(japanese_government_bonds)_trading.md index ddf3539d..bd468162 100644 --- a/en/pedia/j/jgb_(japanese_government_bonds)_trading.md +++ b/en/pedia/j/jgb_(japanese_government_bonds)_trading.md @@ -18,7 +18,7 @@ Long-term JGBs have maturities of more than ten years, with some reaching up to ##### 4. Inflation-Indexed JGBs -[Inflation](../i/inflation.md)-indexed JGBs, also known as JGBi, are designed to protect investors from [inflation](../i/inflation.md). The [principal](../p/principal.md) and [interest](../i/interest.md) payments on these bonds are adjusted based on changes in the Consumer Price [Index](../i/index.md) (CPI). This feature makes them an attractive option for investors concerned about [inflation](../i/inflation.md) eroding the [purchasing power](../p/purchasing_power.md) of their investments. +[Inflation](../i/inflation.md)-indexed JGBs, also known as JGBi, are designed to protect investors from [inflation](../i/inflation.md). The [principal](../p/principal.md) and [interest](../i/interest.md) payments on these bonds are adjusted based on changes in the Consumer Price [Index](../i/index_instrument.md) (CPI). This feature makes them an attractive option for investors concerned about [inflation](../i/inflation.md) eroding the [purchasing power](../p/purchasing_power.md) of their investments. #### Market Dynamics diff --git a/en/pedia/j/jmd_(jamaican_dollar).md b/en/pedia/j/jmd_(jamaican_dollar).md index 41be1aae..5c5f6c3c 100644 --- a/en/pedia/j/jmd_(jamaican_dollar).md +++ b/en/pedia/j/jmd_(jamaican_dollar).md @@ -39,7 +39,7 @@ The Jamaican Dollar is traded in the global [foreign exchange](../f/foreign_exch 1. **[Historical Data Analysis](../h/historical_data_analysis.md)**: Historical price data of JMD is crucial for [backtesting](../b/backtesting.md) and validating [trading strategies](../t/trading_strategies.md). 2. **[Economic Indicators](../e/economic_indicators.md)**: [Key economic indicators](../k/key_economic_indicators.md) like [interest](../i/interest.md) rates, [inflation](../i/inflation.md), GDP growth, and [trade](../t/trade.md) balance reports of Jamaica significantly impact JMD's [value](../v/value.md). -3. **[Technical Indicators](../t/technical_indicator.md)**: Utilizing [technical indicators](../t/technical_indicator.md) like Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_band.md) to identify [trading signals](../t/trading_signals.md). +3. **[Technical Indicators](../t/technical_indicator.md)**: Utilizing [technical indicators](../t/technical_indicator.md) like Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_band.md) to identify [trading signals](../t/trading_signals.md). ## Tools and Technologies for Trading JMD diff --git a/en/pedia/j/jobber.md b/en/pedia/j/jobber.md index b9b68343..43e3126a 100644 --- a/en/pedia/j/jobber.md +++ b/en/pedia/j/jobber.md @@ -37,7 +37,7 @@ Many jobbers utilize [algorithmic trading](../a/accountability.md) to [handle](. Jobbers often rely on a suite of [technical indicators](../t/technical_indicator.md) to guide their trades. Some commonly used indicators include: - **Moving Averages**: Helps in identifying trending markets or mean-reversion opportunities. - **[Bollinger Bands](../b/bollinger_band.md)**: Assists in spotting [volatility](../v/volatility.md) and [overbought](../o/overbought.md)/[oversold](../o/oversold.md) conditions. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measures the speed and change of price movements. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measures the speed and change of price movements. ### Market Research diff --git a/en/pedia/j/johannesburg_stock_exchange_(jse).md b/en/pedia/j/johannesburg_stock_exchange_(jse).md index dcd1b04a..002840d1 100644 --- a/en/pedia/j/johannesburg_stock_exchange_(jse).md +++ b/en/pedia/j/johannesburg_stock_exchange_(jse).md @@ -62,10 +62,10 @@ The JSE is known for its [robust](../r/robust.md) [derivatives](../d/derivatives The JSE features several key indices which provide benchmarks for the performance of different segments of the [market](../m/market.md). ### FTSE/JSE All Share Index (ALSI) -The ALSI is the best-known [index](../i/index.md) of the JSE, representing the performance of the largest and most [liquid](../l/liquid.md) South African companies. It's widely used by investors as a gauge of the South African [equity market](../e/equity_market.md). +The ALSI is the best-known [index](../i/index_instrument.md) of the JSE, representing the performance of the largest and most [liquid](../l/liquid.md) South African companies. It's widely used by investors as a gauge of the South African [equity market](../e/equity_market.md). ### FTSE/JSE Top 40 Index -This [index](../i/index.md) includes the top 40 companies by [market capitalization](../m/market_capitalization.md). It provides a snapshot of the overall health and performance of the largest and most influential companies on the JSE. +This [index](../i/index_instrument.md) includes the top 40 companies by [market capitalization](../m/market_capitalization.md). It provides a snapshot of the overall health and performance of the largest and most influential companies on the JSE. ### FTSE/JSE Industrial Index Includes companies primarily involved in industrial activities, providing insight into the industrial sector's performance. diff --git a/en/pedia/j/john_bogle.md b/en/pedia/j/john_bogle.md index 30befd92..47ca59b0 100644 --- a/en/pedia/j/john_bogle.md +++ b/en/pedia/j/john_bogle.md @@ -1,6 +1,6 @@ # John Bogle -John Clifton Bogle, commonly known as Jack Bogle, was an influential figure in the field of [investment management](../i/investment_management.md). He was the founder and chief executive of The Vanguard Group, which is now one of the largest and most respected [mutual fund](../m/mutual_fund.md) companies in the world. His investment philosophy, which emphasized low costs and long-term [investing](../i/investing.md) in broad-based [index](../i/index.md) funds, has left a lasting legacy. +John Clifton Bogle, commonly known as Jack Bogle, was an influential figure in the field of [investment management](../i/investment_management.md). He was the founder and chief executive of The Vanguard Group, which is now one of the largest and most respected [mutual fund](../m/mutual_fund.md) companies in the world. His investment philosophy, which emphasized low costs and long-term [investing](../i/investing.md) in broad-based [index](../i/index_instrument.md) funds, has left a lasting legacy. ### Early Life and Education @@ -12,11 +12,11 @@ After graduating from Princeton in 1951, Bogle began his career in [investment m ### Founding of The Vanguard Group -In 1975, Bogle launched The Vanguard Group with a revolutionary idea: creating a [mutual fund](../m/mutual_fund.md) that would simply track the [market](../m/market.md) rather than trying to beat it. This concept was rooted in his belief that over the long term, low-cost [index](../i/index.md) funds would [outperform](../o/outperform.md) actively managed funds due to lower fees and the inefficiencies inherent in trying to predict [market](../m/market.md) movements. +In 1975, Bogle launched The Vanguard Group with a revolutionary idea: creating a [mutual fund](../m/mutual_fund.md) that would simply track the [market](../m/market.md) rather than trying to beat it. This concept was rooted in his belief that over the long term, low-cost [index](../i/index_instrument.md) funds would [outperform](../o/outperform.md) actively managed funds due to lower fees and the inefficiencies inherent in trying to predict [market](../m/market.md) movements. ### The Birth of Index Funds -The first [index fund](../i/index_fund.md) offered by Vanguard was the First [Index](../i/index.md) Investment [Trust](../t/trust.md), launched in 1975. This [fund](../f/fund.md), later renamed the Vanguard 500 [Index Fund](../i/index_fund.md), aimed to track the performance of the S&P 500, a broad [index](../i/index.md) of 500 of the largest publicly traded companies in the United States. Initially, the idea was met with skepticism and even ridicule from [Wall Street](../w/wall_street.md), but over time, the benefits of low-cost [passive investing](../p/passive_investing.md) became evident. +The first [index fund](../i/index_fund.md) offered by Vanguard was the First [Index](../i/index_instrument.md) Investment [Trust](../t/trust.md), launched in 1975. This [fund](../f/fund.md), later renamed the Vanguard 500 [Index Fund](../i/index_fund.md), aimed to track the performance of the S&P 500, a broad [index](../i/index_instrument.md) of 500 of the largest publicly traded companies in the United States. Initially, the idea was met with skepticism and even ridicule from [Wall Street](../w/wall_street.md), but over time, the benefits of low-cost [passive investing](../p/passive_investing.md) became evident. ### Bogle's Investment Philosophy @@ -24,7 +24,7 @@ John Bogle's investment philosophy can be summarized by a few key principles: 1. **Low Costs:** High fees and expenses eat into investment returns. By keeping costs low, investors can retain more of their returns. -2. **[Diversification](../d/diversification.md):** Spreading investments across a wide array of assets can reduce [risk](../r/risk.md). Bogle championed broad-based [index](../i/index.md) funds for their inherent [diversification](../d/diversification.md). +2. **[Diversification](../d/diversification.md):** Spreading investments across a wide array of assets can reduce [risk](../r/risk.md). Bogle championed broad-based [index](../i/index_instrument.md) funds for their inherent [diversification](../d/diversification.md). 3. **Long-Term Perspective:** [Market timing](../m/market_timing.md) and [short-term trading](../s/short-term_trading.md) often lead to suboptimal results. Bogle believed in holding investments for the long term. @@ -32,7 +32,7 @@ John Bogle's investment philosophy can be summarized by a few key principles: ### Impact on the Investment Industry -Bogle's ideas revolutionized the investment [industry](../i/industry.md). Today, [index](../i/index.md) funds account for a significant portion of the assets under management in mutual funds and ETFs. His focus on low costs has also led to a broader [industry](../i/industry.md) [trend](../t/trend.md) of [fee](../f/fee.md) reductions, benefiting investors worldwide. +Bogle's ideas revolutionized the investment [industry](../i/industry.md). Today, [index](../i/index_instrument.md) funds account for a significant portion of the assets under management in mutual funds and ETFs. His focus on low costs has also led to a broader [industry](../i/industry.md) [trend](../t/trend.md) of [fee](../f/fee.md) reductions, benefiting investors worldwide. ### Books and Writings @@ -40,7 +40,7 @@ Bogle was a prolific [writer](../w/writer.md) and speaker. Some of his most infl - **"Common Sense on Mutual Funds"** (1999): A comprehensive guide to [mutual fund](../m/mutual_fund.md) [investing](../i/investing.md), covering various aspects of [investment strategy](../i/investment_strategy.md) and [fund](../f/fund.md) management. -- **"The Little Book of Common Sense [Investing](../i/investing.md)"** (2007): A concise introduction to Bogle's investment philosophy, emphasizing the importance of low-cost [index](../i/index.md) funds. +- **"The Little Book of Common Sense [Investing](../i/investing.md)"** (2007): A concise introduction to Bogle's investment philosophy, emphasizing the importance of low-cost [index](../i/index_instrument.md) funds. - **"Enough: True Measures of [Money](../m/money.md), [Business](../b/business.md), and Life"** (2008): A reflection on the broader implications of [wealth](../w/wealth.md) and the importance of ethical behavior in [business](../b/business.md). @@ -56,4 +56,4 @@ For more information about John Bogle and The Vanguard Group, you can visit the ### Conclusion -John Bogle's contribution to the investment world cannot be overstated. Through his pioneering work with [index](../i/index.md) funds and his relentless advocacy for low-cost, long-term [investing](../i/investing.md), he fundamentally changed the way people approach [investing](../i/investing.md). His principles of simplicity, cost-[efficiency](../e/efficiency.md), and ethical conduct continue to guide investors and [will](../w/will.md) likely do so for generations to come. \ No newline at end of file +John Bogle's contribution to the investment world cannot be overstated. Through his pioneering work with [index](../i/index_instrument.md) funds and his relentless advocacy for low-cost, long-term [investing](../i/investing.md), he fundamentally changed the way people approach [investing](../i/investing.md). His principles of simplicity, cost-[efficiency](../e/efficiency.md), and ethical conduct continue to guide investors and [will](../w/will.md) likely do so for generations to come. \ No newline at end of file diff --git a/en/pedia/j/joint_life_with_last_survivor_annuity.md b/en/pedia/j/joint_life_with_last_survivor_annuity.md index c64b64db..b6c02e69 100644 --- a/en/pedia/j/joint_life_with_last_survivor_annuity.md +++ b/en/pedia/j/joint_life_with_last_survivor_annuity.md @@ -55,7 +55,7 @@ Health assessments play a significant role in the structuring of these annuities Understanding the couple’s financial goals and overall retirement strategy is paramount. Couples should evaluate how the guaranteed payments fit into their broader [financial plan](../f/financial_plan.md), considering other sources of [income](../i/income.md) and investment strategies. ### Inflation Protection -If [inflation](../i/inflation.md) is a concern, couples might consider an annuity with an [inflation](../i/inflation.md) [rider](../r/rider.md), which adjusts payments based on a specified [index](../i/index.md) or rate. While this can provide better [purchasing power](../p/purchasing_power.md) protection, it often comes with higher initial premiums and potentially lower initial payments. +If [inflation](../i/inflation.md) is a concern, couples might consider an annuity with an [inflation](../i/inflation.md) [rider](../r/rider.md), which adjusts payments based on a specified [index](../i/index_instrument.md) or rate. While this can provide better [purchasing power](../p/purchasing_power.md) protection, it often comes with higher initial premiums and potentially lower initial payments. ## Leading Providers Several financial institutions [offer](../o/offer.md) [joint](../j/joint.md) life with last survivor annuities, each with unique features and [options](../o/options.md). Below are a few notable providers known for their comprehensive annuity products: diff --git a/en/pedia/j/joint_probability.md b/en/pedia/j/joint_probability.md index 060ee84a..e5e24537 100644 --- a/en/pedia/j/joint_probability.md +++ b/en/pedia/j/joint_probability.md @@ -20,7 +20,7 @@ where \( P(B|A) \) is the [conditional probability](../c/conditional_probability ### Risk Management -In the context of [risk management](../r/risk_management.md), [joint](../j/joint.md) probability helps in assessing the likelihood of different [risk](../r/risk.md) events happening at the same time. For example, a [trader](../t/trader.md) might be interested in the probability that a stock [index](../i/index.md) [will](../w/will.md) decline in [value](../v/value.md) while [interest](../i/interest.md) rates rise. By analyzing the [joint](../j/joint.md) probability, the [trader](../t/trader.md) can better prepare for scenarios that could impact their trading portfolio adversely. +In the context of [risk management](../r/risk_management.md), [joint](../j/joint.md) probability helps in assessing the likelihood of different [risk](../r/risk.md) events happening at the same time. For example, a [trader](../t/trader.md) might be interested in the probability that a stock [index](../i/index_instrument.md) [will](../w/will.md) decline in [value](../v/value.md) while [interest](../i/interest.md) rates rise. By analyzing the [joint](../j/joint.md) probability, the [trader](../t/trader.md) can better prepare for scenarios that could impact their trading portfolio adversely. ### Portfolio Optimization diff --git a/en/pedia/j/jump_risk_management.md b/en/pedia/j/jump_risk_management.md index 5211f638..ec564b79 100644 --- a/en/pedia/j/jump_risk_management.md +++ b/en/pedia/j/jump_risk_management.md @@ -70,7 +70,7 @@ Access to real-time data feeds is critical for managing jump [risk](../r/risk.md ## Regulatory Aspects -Regulatory bodies have implemented various measures to address jump [risk](../r/risk.md) and ensure [market](../m/market.md) stability. For example, the U.S. Securities and [Exchange](../e/exchange.md) [Commission](../c/commission.md) (SEC) has established circuit breakers that halt trading if an [index](../i/index.md) drops by a certain percentage within a short period. These measures aim to prevent panic selling and provide a cooling-off period for markets to stabilize. +Regulatory bodies have implemented various measures to address jump [risk](../r/risk.md) and ensure [market](../m/market.md) stability. For example, the U.S. Securities and [Exchange](../e/exchange.md) [Commission](../c/commission.md) (SEC) has established circuit breakers that halt trading if an [index](../i/index_instrument.md) drops by a certain percentage within a short period. These measures aim to prevent panic selling and provide a cooling-off period for markets to stabilize. ## Conclusion diff --git a/en/pedia/j/jurisdiction_risk.md b/en/pedia/j/jurisdiction_risk.md index d2287027..fb5fb035 100644 --- a/en/pedia/j/jurisdiction_risk.md +++ b/en/pedia/j/jurisdiction_risk.md @@ -48,7 +48,7 @@ The [European Union](../e/european_union_(eu).md) frequently updates its financi Algorithmic traders operating in the EU had to adjust their systems to comply with the new requirements. This involved not only modifications to [trading algorithms](../t/trading_algorithms.md) but also enhancements to reporting systems and compliance monitoring. Failure to adapt to these regulatory changes could result in penalties and loss of trading privileges. ### Political Instability in Hong Kong -The political unrest in Hong Kong, particularly the pro-democracy protests in 2019, created a highly volatile [market](../m/market.md) environment. These events affected [investor](../i/investor.md) confidence and led to significant [capital](../c/capital.md) outflows. [Financial markets](../f/financial_market.md) in Hong Kong experienced abrupt moves, with the Hang Seng [Index](../i/index.md) witnessing sharp declines during periods of intense protests. +The political unrest in Hong Kong, particularly the pro-democracy protests in 2019, created a highly volatile [market](../m/market.md) environment. These events affected [investor](../i/investor.md) confidence and led to significant [capital](../c/capital.md) outflows. [Financial markets](../f/financial_market.md) in Hong Kong experienced abrupt moves, with the Hang Seng [Index](../i/index_instrument.md) witnessing sharp declines during periods of intense protests. [Algorithmic trading](../a/accountability.md) systems needed to incorporate real-time news feeds and [sentiment analysis](../s/sentiment_analysis.md) to navigate the complex [market](../m/market.md) conditions. Strategies that relied on [market](../m/market.md) stability such as statistical [arbitrage](../a/arbitrage.md) faced challenges, whereas those adaptable to heightened [volatility](../v/volatility.md), like [momentum trading](../m/momentum_trading.md), found new opportunities. diff --git a/en/pedia/k/k-factor_strategy_models.md b/en/pedia/k/k-factor_strategy_models.md index dd531a61..9a5cbc39 100644 --- a/en/pedia/k/k-factor_strategy_models.md +++ b/en/pedia/k/k-factor_strategy_models.md @@ -19,7 +19,7 @@ The K-[Factor](../f/factor.md), in [financial modeling](../f/financial_modeling. ### Mathematical Representation -The K-[Factor](../f/factor.md) is typically represented as a composite [index](../i/index.md) derived from [weighted](../w/weighted.md) sums or linear combinations of its [underlying](../u/underlying.md) factors. Mathematically, it can be expressed as: +The K-[Factor](../f/factor.md) is typically represented as a composite [index](../i/index_instrument.md) derived from [weighted](../w/weighted.md) sums or linear combinations of its [underlying](../u/underlying.md) factors. Mathematically, it can be expressed as: \[ K = \sum_{i=1}^{n} w_i F_i \] diff --git a/en/pedia/k/kairi_relative_index.md b/en/pedia/k/kairi_relative_index.md index f85feef2..ad96e814 100644 --- a/en/pedia/k/kairi_relative_index.md +++ b/en/pedia/k/kairi_relative_index.md @@ -1,10 +1,10 @@ # Kairi Relative Index -The Kairi Relative [Index](../i/index.md) (KRI), also known as the Kairi [Index](../i/index.md), is a [technical analysis](../t/technical_analysis.md) [indicator](../i/indicator.md) used primarily in the world of financial trading. This [index](../i/index.md) is utilized to measure the distance between an [asset](../a/asset.md)'s price and its simple moving average (SMA) in percentage terms. The KRI provides traders with insights into the [market](../m/market.md)'s condition, helping them identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) situations. +The Kairi Relative [Index](../i/index_instrument.md) (KRI), also known as the Kairi [Index](../i/index_instrument.md), is a [technical analysis](../t/technical_analysis.md) [indicator](../i/indicator.md) used primarily in the world of financial trading. This [index](../i/index_instrument.md) is utilized to measure the distance between an [asset](../a/asset.md)'s price and its simple moving average (SMA) in percentage terms. The KRI provides traders with insights into the [market](../m/market.md)'s condition, helping them identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) situations. ## Calculation -The formula to calculate the Kairi Relative [Index](../i/index.md) is straightforward: +The formula to calculate the Kairi Relative [Index](../i/index_instrument.md) is straightforward: \[ \text{KRI} = \left( \frac{\text{Current Price} - \text{SMA}}{\text{SMA}} \right) \times 100 \] @@ -34,7 +34,7 @@ Identifying divergences between the KRI and the [underlying](../u/underlying.md) ## Advantages -1. **Simplicity**: The Kairi Relative [Index](../i/index.md) is easy to understand and calculate, making it accessible for traders of all experience levels. +1. **Simplicity**: The Kairi Relative [Index](../i/index_instrument.md) is easy to understand and calculate, making it accessible for traders of all experience levels. 2. **Versatility**: It can be applied to various [asset](../a/asset.md) classes, including [stocks](../s/stock.md), commodities, forex, and cryptocurrencies. 3. **Early Signal Identification**: By highlighting significant deviations from the moving average, the KRI helps traders identify potential [reversal](../r/reversal.md) points early. @@ -71,9 +71,9 @@ In [TradingView](../t/tradingview.md), traders can script the KRI using Pine Scr ### Example Pine Script Code ```pinescript -// Kairi Relative [Index](../i/index.md) (KRI) in Pine Script +// Kairi Relative [Index](../i/index_instrument.md) (KRI) in Pine Script //@version=4 -study("Kairi Relative [Index](../i/index.md)", shorttitle="KRI", [overlay](../o/overlay.md)=true) +study("Kairi Relative [Index](../i/index_instrument.md)", shorttitle="KRI", [overlay](../o/overlay.md)=true) length = input(20, title="SMA Length") sma = sma(close, length) kri = ((close - sma) / sma) * 100 @@ -84,4 +84,4 @@ hline(-10, color=color.green, linestyle=hline.style_dashed) ## Conclusion -The Kairi Relative [Index](../i/index.md) is a valuable tool in a [trader](../t/trader.md)'s arsenal. By quantifying the deviation of an [asset](../a/asset.md)'s price from its moving average, the KRI helps traders make informed decisions about [market](../m/market.md) conditions. Despite its simplicity, the KRI provides meaningful insights into potential [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, [trend](../t/trend.md) confirmations, and divergences. However, like any technical [indicator](../i/indicator.md), it should be used in conjunction with other tools and analysis methods to enhance its effectiveness and reduce the [risk](../r/risk.md) of [false signals](../f/false_signals_in_trading.md). \ No newline at end of file +The Kairi Relative [Index](../i/index_instrument.md) is a valuable tool in a [trader](../t/trader.md)'s arsenal. By quantifying the deviation of an [asset](../a/asset.md)'s price from its moving average, the KRI helps traders make informed decisions about [market](../m/market.md) conditions. Despite its simplicity, the KRI provides meaningful insights into potential [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, [trend](../t/trend.md) confirmations, and divergences. However, like any technical [indicator](../i/indicator.md), it should be used in conjunction with other tools and analysis methods to enhance its effectiveness and reduce the [risk](../r/risk.md) of [false signals](../f/false_signals_in_trading.md). \ No newline at end of file diff --git a/en/pedia/k/kbw_bank_index.md b/en/pedia/k/kbw_bank_index.md index 40ef3acd..7d46b9f4 100644 --- a/en/pedia/k/kbw_bank_index.md +++ b/en/pedia/k/kbw_bank_index.md @@ -1,16 +1,16 @@ # KBW Bank Index -The KBW [Bank](../b/bank.md) [Index](../i/index.md), also known by its [ticker symbol](../t/ticker_symbol.md) BKX, is an [equity](../e/equity.md) [index](../i/index.md) that provides a [benchmark](../b/benchmark.md) for the performance of the leading banks and financial institutions [listed](../l/listed.md) in the United States. The [index](../i/index.md) comprises a balanced, broad representation of the U.S. banking sector, including large national and regional banking institutions. +The KBW [Bank](../b/bank.md) [Index](../i/index_instrument.md), also known by its [ticker symbol](../t/ticker_symbol.md) BKX, is an [equity](../e/equity.md) [index](../i/index_instrument.md) that provides a [benchmark](../b/benchmark.md) for the performance of the leading banks and financial institutions [listed](../l/listed.md) in the United States. The [index](../i/index_instrument.md) comprises a balanced, broad representation of the U.S. banking sector, including large national and regional banking institutions. ## Overview -The KBW [Bank](../b/bank.md) [Index](../i/index.md) was introduced by Keefe, Bruyette & Woods (KBW), a leading [investment banking](../i/investment_banking.md) [firm](../f/firm.md) founded in 1962 and specializing in the financial services sector. The [index](../i/index.md) provides a comprehensive view of the banking [industry](../i/industry.md) through a diversified set of banks, reflecting the different segments within the sector. +The KBW [Bank](../b/bank.md) [Index](../i/index_instrument.md) was introduced by Keefe, Bruyette & Woods (KBW), a leading [investment banking](../i/investment_banking.md) [firm](../f/firm.md) founded in 1962 and specializing in the financial services sector. The [index](../i/index_instrument.md) provides a comprehensive view of the banking [industry](../i/industry.md) through a diversified set of banks, reflecting the different segments within the sector. -The [index](../i/index.md) is essential for investors aiming to track or [gain](../g/gain.md) exposure to the U.S. banking [industry](../i/industry.md). It includes some of the most prominent names in banking, ensuring the [index](../i/index.md) represents the overall health, trends, and shifts happening within the sector. +The [index](../i/index_instrument.md) is essential for investors aiming to track or [gain](../g/gain.md) exposure to the U.S. banking [industry](../i/industry.md). It includes some of the most prominent names in banking, ensuring the [index](../i/index_instrument.md) represents the overall health, trends, and shifts happening within the sector. ## Components -The KBW [Bank](../b/bank.md) [Index](../i/index.md) consists of 24 banking [stocks](../s/stock.md) that are selected based on criteria such as [market capitalization](../m/market_capitalization.md), [liquidity](../l/liquidity.md), and [industry](../i/industry.md) representation. The specific components of the [index](../i/index.md) can change over time as new banks rise in prominence and others decline, but generally, the [index](../i/index.md) is designed to maintain a balanced representation of the banking sector. Some of the well-known members of the [index](../i/index.md) include: +The KBW [Bank](../b/bank.md) [Index](../i/index_instrument.md) consists of 24 banking [stocks](../s/stock.md) that are selected based on criteria such as [market capitalization](../m/market_capitalization.md), [liquidity](../l/liquidity.md), and [industry](../i/industry.md) representation. The specific components of the [index](../i/index_instrument.md) can change over time as new banks rise in prominence and others decline, but generally, the [index](../i/index_instrument.md) is designed to maintain a balanced representation of the banking sector. Some of the well-known members of the [index](../i/index_instrument.md) include: - JPMorgan Chase & Co. (NYSE: JPM) - [Bank](../b/bank.md) of America [Corporation](../c/corporation.md) (NYSE: BAC) @@ -23,88 +23,88 @@ The KBW [Bank](../b/bank.md) [Index](../i/index.md) consists of 24 banking [stoc ## Calculation and Methodology -The KBW [Bank](../b/bank.md) [Index](../i/index.md) is a modified [capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md). This means that the influence of each component on the [index](../i/index.md)'s performance is proportional to its [market capitalization](../m/market_capitalization.md), but certain adjustments are made to avoid overrepresentation by any single stock. This methodology ensures the [index](../i/index.md) remains diversified and representative of the sector as a whole. +The KBW [Bank](../b/bank.md) [Index](../i/index_instrument.md) is a modified [capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md). This means that the influence of each component on the [index](../i/index_instrument.md)'s performance is proportional to its [market capitalization](../m/market_capitalization.md), but certain adjustments are made to avoid overrepresentation by any single stock. This methodology ensures the [index](../i/index_instrument.md) remains diversified and representative of the sector as a whole. -The formula used to calculate the [index](../i/index.md) can be simplified as follows: +The formula used to calculate the [index](../i/index_instrument.md) can be simplified as follows: -\[ \text{KBW Bank Index} = \frac{\sum (\text{Market Cap of Components} \times \text{Adjustment [Factor](../f/factor.md)})}{ \text{[Index](../i/index.md) Divisor}} \] +\[ \text{KBW Bank Index} = \frac{\sum (\text{Market Cap of Components} \times \text{Adjustment [Factor](../f/factor.md)})}{ \text{[Index](../i/index_instrument.md) Divisor}} \] Where: -- The [Market](../m/market.md) Cap of Components is the total [market value](../m/market_value.md) of the outstanding [shares](../s/shares.md) of the [index](../i/index.md) member companies. +- The [Market](../m/market.md) Cap of Components is the total [market value](../m/market_value.md) of the outstanding [shares](../s/shares.md) of the [index](../i/index_instrument.md) member companies. - The Adjustment [Factor](../f/factor.md) is applied to individual securities to maintain [diversification](../d/diversification.md). -- The [Index](../i/index.md) Divisor is a figure used to ensure continuity when changes are made to the [index](../i/index.md), such as adding or removing components. +- The [Index](../i/index_instrument.md) Divisor is a figure used to ensure continuity when changes are made to the [index](../i/index_instrument.md), such as adding or removing components. ## Historical Performance -The historical performance of the KBW [Bank](../b/bank.md) [Index](../i/index.md) provides crucial insights into the banking sector's profitability, resilience, and growth over various [economic cycles](../e/economic_cycles.md). For instance: -- During the [financial crisis](../f/financial_crisis.md) of 2008-2009, the [index](../i/index.md) saw significant declines due to widespread banking troubles. +The historical performance of the KBW [Bank](../b/bank.md) [Index](../i/index_instrument.md) provides crucial insights into the banking sector's profitability, resilience, and growth over various [economic cycles](../e/economic_cycles.md). For instance: +- During the [financial crisis](../f/financial_crisis.md) of 2008-2009, the [index](../i/index_instrument.md) saw significant declines due to widespread banking troubles. - The recovery period saw improved performance as regulatory changes and [economic growth](../e/economic_growth.md) bolstered the banking sector's stability. -- Recent events, such as the COVID-19 pandemic, have also impacted the [index](../i/index.md), showing [volatility](../v/volatility.md) but also periods of [robust](../r/robust.md) recovery as banks adapted to new challenges. +- Recent events, such as the COVID-19 pandemic, have also impacted the [index](../i/index_instrument.md), showing [volatility](../v/volatility.md) but also periods of [robust](../r/robust.md) recovery as banks adapted to new challenges. -Investors closely track the historical performance of the KBW [Bank](../b/bank.md) [Index](../i/index.md) to understand the effects of macroeconomic changes, regulatory impacts, and technological advancements on the banking [industry](../i/industry.md). +Investors closely track the historical performance of the KBW [Bank](../b/bank.md) [Index](../i/index_instrument.md) to understand the effects of macroeconomic changes, regulatory impacts, and technological advancements on the banking [industry](../i/industry.md). ## Investing in the KBW Bank Index -There are several ways investors can [gain](../g/gain.md) exposure to the KBW [Bank](../b/bank.md) [Index](../i/index.md): +There are several ways investors can [gain](../g/gain.md) exposure to the KBW [Bank](../b/bank.md) [Index](../i/index_instrument.md): ### Exchange Traded Funds (ETFs) -One of the most common methods is through ETFs that track the performance of the KBW [Bank](../b/bank.md) [Index](../i/index.md). These ETFs aim to replicate the [index](../i/index.md)'s returns by holding the constituent [stocks](../s/stock.md) in similar proportions. Some popular ETFs based on the KBW [Bank](../b/bank.md) [Index](../i/index.md) include: +One of the most common methods is through ETFs that track the performance of the KBW [Bank](../b/bank.md) [Index](../i/index_instrument.md). These ETFs aim to replicate the [index](../i/index_instrument.md)'s returns by holding the constituent [stocks](../s/stock.md) in similar proportions. Some popular ETFs based on the KBW [Bank](../b/bank.md) [Index](../i/index_instrument.md) include: - Invesco KBW [Bank](../b/bank.md) ETF (NYSEARCA: KBWB) [Link](https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&ticker=KBWB) - Direxion Daily Financial [Bull](../b/bull.md) 3X [Shares](../s/shares.md) (NYSEARCA: FAS) [Link](https://www.direxion.com/product/direxion-daily-financial-bull-3x-etf) ### Mutual Funds -Certain mutual funds also invest in securities that are components of the KBW [Bank](../b/bank.md) [Index](../i/index.md), providing another avenue for investors to [gain](../g/gain.md) indirect exposure to the [index](../i/index.md). +Certain mutual funds also invest in securities that are components of the KBW [Bank](../b/bank.md) [Index](../i/index_instrument.md), providing another avenue for investors to [gain](../g/gain.md) indirect exposure to the [index](../i/index_instrument.md). ### Direct Stock Purchases -Investors can also choose to invest directly in the individual [stocks](../s/stock.md) that comprise the KBW [Bank](../b/bank.md) [Index](../i/index.md). This method requires more [active management](../a/active_management.md) and research into each [bank](../b/bank.md)'s performance. +Investors can also choose to invest directly in the individual [stocks](../s/stock.md) that comprise the KBW [Bank](../b/bank.md) [Index](../i/index_instrument.md). This method requires more [active management](../a/active_management.md) and research into each [bank](../b/bank.md)'s performance. ## Relevance -The KBW [Bank](../b/bank.md) [Index](../i/index.md) holds significant relevance for several stakeholders, including: +The KBW [Bank](../b/bank.md) [Index](../i/index_instrument.md) holds significant relevance for several stakeholders, including: ### Investors -For investors, the [index](../i/index.md) serves as a gauge for the entire banking sector's health, trends, and investment opportunities. It helps in [portfolio diversification](../p/portfolio_diversification.md) and strategic placement within the [financial sector](../f/financial_sector.md). +For investors, the [index](../i/index_instrument.md) serves as a gauge for the entire banking sector's health, trends, and investment opportunities. It helps in [portfolio diversification](../p/portfolio_diversification.md) and strategic placement within the [financial sector](../f/financial_sector.md). ### Analysts -Financial analysts use the [index](../i/index.md) to [benchmark](../b/benchmark.md) the performance of individual banks against the broader [industry](../i/industry.md). It offers insights into how well certain banks are performing relative to their peers. +Financial analysts use the [index](../i/index_instrument.md) to [benchmark](../b/benchmark.md) the performance of individual banks against the broader [industry](../i/industry.md). It offers insights into how well certain banks are performing relative to their peers. ### Policymakers -Regulators and policymakers examine the [index](../i/index.md) to assess the impact of regulations and economic policies on the banking sector. It can help inform decisions around [monetary policy](../m/monetary_policy.md), banking regulations, and fiscal policies. +Regulators and policymakers examine the [index](../i/index_instrument.md) to assess the impact of regulations and economic policies on the banking sector. It can help inform decisions around [monetary policy](../m/monetary_policy.md), banking regulations, and fiscal policies. ### Industry Executives -Banks' executives use the KBW [Bank](../b/bank.md) [Index](../i/index.md) to evaluate their company's performance, set benchmarks, and develop strategies for growth and [risk management](../r/risk_management.md). It helps them understand how their institution stands within the competitive landscape. +Banks' executives use the KBW [Bank](../b/bank.md) [Index](../i/index_instrument.md) to evaluate their company's performance, set benchmarks, and develop strategies for growth and [risk management](../r/risk_management.md). It helps them understand how their institution stands within the competitive landscape. ## Factors Affecting the Index -The performance of the KBW [Bank](../b/bank.md) [Index](../i/index.md) can be influenced by various factors, including: +The performance of the KBW [Bank](../b/bank.md) [Index](../i/index_instrument.md) can be influenced by various factors, including: ### Economic Conditions -General economic health plays a crucial role. Factors such as GDP growth, [inflation](../i/inflation.md) rates, and [unemployment](../u/unemployment.md) rates can significantly impact banking operations, affecting the [index](../i/index.md). +General economic health plays a crucial role. Factors such as GDP growth, [inflation](../i/inflation.md) rates, and [unemployment](../u/unemployment.md) rates can significantly impact banking operations, affecting the [index](../i/index_instrument.md). ### Interest Rates -[Interest](../i/interest.md) rates, influenced by central [bank](../b/bank.md) policies, directly affect banks' profitability. Higher [interest](../i/interest.md) rates can lead to higher net [interest](../i/interest.md) margins, benefiting the [index](../i/index.md) components. +[Interest](../i/interest.md) rates, influenced by central [bank](../b/bank.md) policies, directly affect banks' profitability. Higher [interest](../i/interest.md) rates can lead to higher net [interest](../i/interest.md) margins, benefiting the [index](../i/index_instrument.md) components. ### Regulatory Environment -Changes in banking regulations, such as the Dodd-Frank Act or [Basel III](../b/basel_iii.md) requirements, can impact operational costs and [risk management](../r/risk_management.md) for banks, influencing the [index](../i/index.md)'s performance. +Changes in banking regulations, such as the Dodd-Frank Act or [Basel III](../b/basel_iii.md) requirements, can impact operational costs and [risk management](../r/risk_management.md) for banks, influencing the [index](../i/index_instrument.md)'s performance. ### Technological Developments -Innovations in fintech, cybersecurity, and digital banking can both pose challenges and create opportunities for banks. Adapting to technological advancements can affect the [index](../i/index.md). +Innovations in fintech, cybersecurity, and digital banking can both pose challenges and create opportunities for banks. Adapting to technological advancements can affect the [index](../i/index_instrument.md). ### Market Sentiment -[Investor](../i/investor.md) sentiment towards the banking sector, driven by factors like [earnings](../e/earnings.md) reports, geopolitical events, and sector news, can cause fluctuations in the [index](../i/index.md). +[Investor](../i/investor.md) sentiment towards the banking sector, driven by factors like [earnings](../e/earnings.md) reports, geopolitical events, and sector news, can cause fluctuations in the [index](../i/index_instrument.md). ## Conclusion -The KBW [Bank](../b/bank.md) [Index](../i/index.md) is a pivotal [financial instrument](../f/financial_instrument.md) for tracking the performance of the U.S. banking sector. It offers valuable insights and opportunities for various [market](../m/market.md) participants, from investors to policymakers. Understanding its components, methodologies, and influencing factors is crucial for anyone looking to analyze or invest in the banking [industry](../i/industry.md). \ No newline at end of file +The KBW [Bank](../b/bank.md) [Index](../i/index_instrument.md) is a pivotal [financial instrument](../f/financial_instrument.md) for tracking the performance of the U.S. banking sector. It offers valuable insights and opportunities for various [market](../m/market.md) participants, from investors to policymakers. Understanding its components, methodologies, and influencing factors is crucial for anyone looking to analyze or invest in the banking [industry](../i/industry.md). \ No newline at end of file diff --git a/en/pedia/k/keltner_channel.md b/en/pedia/k/keltner_channel.md index 60f4f7bb..84be7fb0 100644 --- a/en/pedia/k/keltner_channel.md +++ b/en/pedia/k/keltner_channel.md @@ -80,7 +80,7 @@ Traders can integrate the Keltner Channel into various [trading strategies](../t - **Exit**: Place [profit](../p/profit.md) targets within the channel or use a moving average cross as an exit signal. 3. **Combination with Other Indicators**: - - Use [momentum indicators](../m/momentum_indicators.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) in conjunction with the Keltner Channel to confirm signals and enhance decision-making. + - Use [momentum indicators](../m/momentum_indicators.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) in conjunction with the Keltner Channel to confirm signals and enhance decision-making. ### Example in Algorithmic Trading diff --git a/en/pedia/k/keltner_channel_strategies.md b/en/pedia/k/keltner_channel_strategies.md index 50a73e06..acbd3a6b 100644 --- a/en/pedia/k/keltner_channel_strategies.md +++ b/en/pedia/k/keltner_channel_strategies.md @@ -62,7 +62,7 @@ In contrast to [breakout](../b/breakout.md) and [trend](../t/trend.md)-following ### 1. Combined with Other Indicators -Combining [Keltner Channels](../k/keltner_channels.md) with other [technical indicators](../t/technical_indicators.md) can enhance the accuracy of [trade](../t/trade.md) signals. For example, pairing [Keltner Channels](../k/keltner_channels.md) with the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can filter out [false signals](../f/false_signals_in_trading.md) and improve [trade](../t/trade.md) timing. +Combining [Keltner Channels](../k/keltner_channels.md) with other [technical indicators](../t/technical_indicators.md) can enhance the accuracy of [trade](../t/trade.md) signals. For example, pairing [Keltner Channels](../k/keltner_channels.md) with the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can filter out [false signals](../f/false_signals_in_trading.md) and improve [trade](../t/trade.md) timing. ### 2. Multi-Timeframe Analysis diff --git a/en/pedia/k/key_economic_indicators.md b/en/pedia/k/key_economic_indicators.md index 705628a1..25b1d799 100644 --- a/en/pedia/k/key_economic_indicators.md +++ b/en/pedia/k/key_economic_indicators.md @@ -42,7 +42,7 @@ A high [unemployment rate](../u/unemployment_rate.md) often indicates economic t ### Definition -The Consumer Price [Index](../i/index.md) (CPI) measures the average change over time in the prices paid by urban consumers for a [market](../m/market.md) basket of [consumer goods](../c/consumer_goods.md) and services. +The Consumer Price [Index](../i/index_instrument.md) (CPI) measures the average change over time in the prices paid by urban consumers for a [market](../m/market.md) basket of [consumer goods](../c/consumer_goods.md) and services. ### Calculation @@ -58,7 +58,7 @@ The CPI is a critical measure of [inflation](../i/inflation.md), reflecting the ### Definition -The Producer Price [Index](../i/index.md) (PPI) measures the average change in selling prices received by domestic producers for their output. It is a measure of [inflation](../i/inflation.md) at the wholesale level. +The Producer Price [Index](../i/index_instrument.md) (PPI) measures the average change in selling prices received by domestic producers for their output. It is a measure of [inflation](../i/inflation.md) at the wholesale level. ### Calculation @@ -89,11 +89,11 @@ PPI is a [leading indicator](../l/leading_indicator.md) of consumer price [infla ### Definition -The Industrial Production [Index](../i/index.md) (IPI) measures the real output of [manufacturing](../m/manufacturing.md), [mining](../m/mining.md), and utilities. It shows changes in the production levels of industries that are the backbone of the [economy](../e/economy.md). +The Industrial Production [Index](../i/index_instrument.md) (IPI) measures the real output of [manufacturing](../m/manufacturing.md), [mining](../m/mining.md), and utilities. It shows changes in the production levels of industries that are the backbone of the [economy](../e/economy.md). ### Calculation -IPI is calculated by collecting output data from various industries, then weighting and aggregating these data to form a single [index](../i/index.md) number. It compares the current output with a reference period. +IPI is calculated by collecting output data from various industries, then weighting and aggregating these data to form a single [index](../i/index_instrument.md) number. It compares the current output with a reference period. ### Importance diff --git a/en/pedia/k/key_levels_analysis.md b/en/pedia/k/key_levels_analysis.md index 32344600..9ceca37f 100644 --- a/en/pedia/k/key_levels_analysis.md +++ b/en/pedia/k/key_levels_analysis.md @@ -39,7 +39,7 @@ By examining past price movements, traders can identify critical [support and re Increased trading [volume](../v/volume.md) at certain price levels can confirm the significance of those levels as key points of support or resistance. ### 4. Technical Indicators -[Technical indicators](../t/technical_indicators.md) such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Bollinger Bands](../b/bollinger_bands.md), etc., can help identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions that often occur near key levels. +[Technical indicators](../t/technical_indicators.md) such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Bollinger Bands](../b/bollinger_bands.md), etc., can help identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions that often occur near key levels. ## Significance of Key Levels in Trading diff --git a/en/pedia/k/key_market_indicators.md b/en/pedia/k/key_market_indicators.md index d6829017..8adc3cc4 100644 --- a/en/pedia/k/key_market_indicators.md +++ b/en/pedia/k/key_market_indicators.md @@ -28,7 +28,7 @@ print(sma) # Output: 155.0 ## 2. Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It ranges from 0 to 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It ranges from 0 to 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **[Overbought](../o/overbought.md)**: RSI above 70 - **[Oversold](../o/oversold.md)**: RSI below 30 diff --git a/en/pedia/k/key_momentum_indicators.md b/en/pedia/k/key_momentum_indicators.md index 26bb99c5..403b956c 100644 --- a/en/pedia/k/key_momentum_indicators.md +++ b/en/pedia/k/key_momentum_indicators.md @@ -4,7 +4,7 @@ The field of [algorithmic trading](../a/algorithmic_trading.md), or simply "algo ## Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is one of the most commonly used [momentum indicators](../m/momentum_indicators.md). Developed by J. Welles Wilder, it measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in the price of an [asset](../a/asset.md). +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is one of the most commonly used [momentum indicators](../m/momentum_indicators.md). Developed by J. Welles Wilder, it measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in the price of an [asset](../a/asset.md). ### Calculation: The RSI is calculated using the following formula: @@ -65,7 +65,7 @@ The [Average Directional Index](../a/average_directional_index_(adx).md) (ADX) i The ADX can be calculated over a specified period, usually 14 days, using the following steps: 1. Calculate the Directional Movement (DM) and [Average True Range](../a/average_true_range_(atr).md) (ATR). 2. Smooth the DM and ATR using a moving average (usually an exponential moving average). -3. Compute the Directional Movement [Index](../i/index.md) (DX) using the smoothed values. +3. Compute the Directional Movement [Index](../i/index_instrument.md) (DX) using the smoothed values. 4. Finally, the ADX is a smoothed average of the DX. ### Interpretation: @@ -74,7 +74,7 @@ The ADX can be calculated over a specified period, usually 14 days, using the fo ## Commodity Channel Index (CCI) -The [Commodity](../c/commodity.md) Channel [Index](../i/index.md) (CCI), created by Donald Lambert, is a versatile [indicator](../i/indicator.md) that can be used to identify a new [trend](../t/trend.md) or warn of extreme conditions. +The [Commodity](../c/commodity.md) Channel [Index](../i/index_instrument.md) (CCI), created by Donald Lambert, is a versatile [indicator](../i/indicator.md) that can be used to identify a new [trend](../t/trend.md) or warn of extreme conditions. ### Calculation: CCI is computed with the following formula: diff --git a/en/pedia/k/key_reversal_patterns.md b/en/pedia/k/key_reversal_patterns.md index bdf95488..f03edcb8 100644 --- a/en/pedia/k/key_reversal_patterns.md +++ b/en/pedia/k/key_reversal_patterns.md @@ -12,7 +12,7 @@ A Bullish Key [Reversal](../r/reversal.md) Pattern typically forms at the end of 3. During the [trading session](../t/trading_session.md), the price rallies and closes above the previous day's high. #### Example -Consider the S&P 500 [Index](../i/index.md), which displays a distinct Bullish Key [Reversal](../r/reversal.md) Pattern on a particular trading day. The [index](../i/index.md) opens significantly lower, but buying pressure leads to a [rally](../r/rally.md) that closes above the previous day's high, signaling a potential upward [reversal](../r/reversal.md). +Consider the S&P 500 [Index](../i/index_instrument.md), which displays a distinct Bullish Key [Reversal](../r/reversal.md) Pattern on a particular trading day. The [index](../i/index_instrument.md) opens significantly lower, but buying pressure leads to a [rally](../r/rally.md) that closes above the previous day's high, signaling a potential upward [reversal](../r/reversal.md). ### Bearish Key Reversal Conversely, a Bearish Key [Reversal](../r/reversal.md) Pattern indicates a possible [reversal](../r/reversal.md) to the downside, typically appearing at the peak of an [uptrend](../u/uptrend.md). It is characterized by: @@ -47,7 +47,7 @@ In [algorithmic trading](../a/algorithmic_trading.md), automated systems use adv 1. **Data Collection**: Gather historical price data for the [asset](../a/asset.md) in question. 2. **Pattern Identification**: Use automated tools or machine learning models to scan for Key [Reversal Patterns](../r/reversal_patterns.md). -3. **Signal Validation**: Confirm the identified pattern using additional [technical indicators](../t/technical_indicators.md) such as Moving Averages or [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI). +3. **Signal Validation**: Confirm the identified pattern using additional [technical indicators](../t/technical_indicators.md) such as Moving Averages or [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI). 4. **[Execution](../e/execution.md) Strategy**: Define entry and exit points, stop-loss levels, and position sizes based on the identified pattern. 5. **[Backtesting](../b/backtesting.md)**: Test the strategy on historical data to evaluate its performance and make necessary adjustments. diff --git a/en/pedia/k/key_volume_indicators.md b/en/pedia/k/key_volume_indicators.md index 3f074d30..49145d40 100644 --- a/en/pedia/k/key_volume_indicators.md +++ b/en/pedia/k/key_volume_indicators.md @@ -14,11 +14,11 @@ There are several popular [volume indicators](../v/volume_indicators.md), each s 3. **Chaikin [Money Flow](../m/money_flow.md) (CMF)** 4. **[Volume](../v/volume.md)-[Weighted Average](../w/weighted_average.md) Price (VWAP)** 5. **Accumulation/[Distribution](../d/distribution.md) Line (A/D Line)** -6. **[Money Flow](../m/money_flow.md) [Index](../i/index.md) (MFI)** +6. **[Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md) (MFI)** 7. **[Klinger Oscillator](../k/klinger_oscillator.md)** 8. **Ease of Movement (EOM)** 9. **[Volume Oscillator](../v/volume_oscillator.md) (VO)** -10. **Intraday Intensity [Index](../i/index.md) (III)** +10. **Intraday Intensity [Index](../i/index_instrument.md) (III)** ### Volume Moving Average (VMA) The [Volume](../v/volume.md) Moving Average smoothes out daily [volume](../v/volume.md) data to provide a clearer picture of whether trading [volume](../v/volume.md) is increasing or decreasing over time. Traders often use a short-term moving average of [volume](../v/volume.md) (e.g., 10 days) and compare it with a longer-term moving average (e.g., 50 days) to identify potential upward or downward trends. @@ -36,7 +36,7 @@ VWAP is a trading [benchmark](../b/benchmark.md) that gives the average price a The Accumulation/[Distribution](../d/distribution.md) Line is derived from the cumulative sum of the [Money Flow](../m/money_flow.md) [Volume](../v/volume.md) over a period. It helps gauge whether a stock is being accumulated (bought) or distributed (sold). A rising line indicates accumulation, while a falling line indicates [distribution](../d/distribution.md). ### Money Flow Index (MFI) -The [Money Flow](../m/money_flow.md) [Index](../i/index.md) is a [momentum](../m/momentum.md) [indicator](../i/indicator.md) that uses price and [volume](../v/volume.md) data to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). It compares the price movements with [volume](../v/volume.md), generating readings that help predict potential price reversals. +The [Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md) is a [momentum](../m/momentum.md) [indicator](../i/indicator.md) that uses price and [volume](../v/volume.md) data to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). It compares the price movements with [volume](../v/volume.md), generating readings that help predict potential price reversals. ### Klinger Oscillator The [Klinger Oscillator](../k/klinger_oscillator.md) combines price movement and [volume](../v/volume.md) to predict potential price reversals in the [market](../m/market.md). It oscillates above and below a zero line, providing buy or sell signals based on the direction of the [oscillator](../o/oscillator.md). @@ -48,7 +48,7 @@ The Ease of Movement [indicator](../i/indicator.md) attempts to quantify the rel The [Volume Oscillator](../v/volume_oscillator.md) measures the difference between two [volume](../v/volume.md) moving averages to identify changes in [volume](../v/volume.md) strength. It helps traders determine whether the [volume](../v/volume.md) is expanding or contracting over time. ### Intraday Intensity Index (III) -The Intraday Intensity [Index](../i/index.md) analyzes the relationship between [volume](../v/volume.md) and price, attempting to identify the flow of funds in and out of a [security](../s/security.md). It helps spot buying and selling pressure and often highlights bullish or bearish divergences. +The Intraday Intensity [Index](../i/index_instrument.md) analyzes the relationship between [volume](../v/volume.md) and price, attempting to identify the flow of funds in and out of a [security](../s/security.md). It helps spot buying and selling pressure and often highlights bullish or bearish divergences. ### Applying Volume Indicators in Algorithmic Trading In [algorithmic trading](../a/algorithmic_trading.md), [volume indicators](../v/volume_indicators.md) can be integrated into various [trading strategies](../t/trading_strategies.md) to enhance their accuracy and effectiveness. These indicators can be used to validate [trade](../t/trade.md) signals, confirm trends, and identify potential reversals or [breakout](../b/breakout.md) points. Here are some typical applications: diff --git a/en/pedia/k/keynesian_economics_in_trading.md b/en/pedia/k/keynesian_economics_in_trading.md index 48534e33..a9ff110c 100644 --- a/en/pedia/k/keynesian_economics_in_trading.md +++ b/en/pedia/k/keynesian_economics_in_trading.md @@ -32,7 +32,7 @@ Understanding key [economic indicators](../e/economic_indicators.md) through a K 1. **Gross Domestic Product (GDP)**: Measures the total [value](../v/value.md) of goods and services produced in a country. An increasing GDP indicates [economic growth](../e/economic_growth.md), which can be bullish for markets. 2. **[Unemployment Rate](../u/unemployment_rate.md)**: High [unemployment](../u/unemployment.md) usually signals economic distress and can be bearish. 3. **[Inflation](../i/inflation.md) Rate**: Moderate [inflation](../i/inflation.md) reflects healthy economic [demand](../d/demand.md); [hyperinflation](../h/hyperinflation.md) or [deflation](../d/deflation.md) can be detrimental. -4. **Consumer Confidence [Index](../i/index.md) (CCI)**: Reflects consumer sentiment and can be predictive of consumer spending patterns. +4. **Consumer Confidence [Index](../i/index_instrument.md) (CCI)**: Reflects consumer sentiment and can be predictive of consumer spending patterns. ## Application in Trading Strategies diff --git a/en/pedia/k/kijun-sen_(base_line).md b/en/pedia/k/kijun-sen_(base_line).md index 20a090c1..243cd4e8 100644 --- a/en/pedia/k/kijun-sen_(base_line).md +++ b/en/pedia/k/kijun-sen_(base_line).md @@ -60,7 +60,7 @@ Traders often use the Kijun-Sen alongside traditional moving averages to identif ### Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. Using the Kijun-Sen in tandem with RSI can help traders identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions and potential [reversal](../r/reversal.md) points. +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. Using the Kijun-Sen in tandem with RSI can help traders identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions and potential [reversal](../r/reversal.md) points. ## Real-World Examples diff --git a/en/pedia/k/kijun_line_(base_line).md b/en/pedia/k/kijun_line_(base_line).md index d60120ee..948e124f 100644 --- a/en/pedia/k/kijun_line_(base_line).md +++ b/en/pedia/k/kijun_line_(base_line).md @@ -64,7 +64,7 @@ Given that the Kijun Line represents a historical midpoint, prices often revert The Kijun Line can be combined with other [trend](../t/trend.md)-following indicators to confirm trends: - **Moving Averages**: Combining the Kijun Line with moving averages (MA) can provide additional confirmation. For instance, a bullish crossover of the price above the Kijun Line, paired with the price being above a long-term moving average, can reinforce a strong [uptrend](../u/uptrend.md) signal. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Aligning the Kijun Line signals with [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in the RSI can filter out [false signals](../f/false_signals_in_trading.md) and improve accuracy. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Aligning the Kijun Line signals with [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in the RSI can filter out [false signals](../f/false_signals_in_trading.md) and improve accuracy. ### Integration with Machine Learning Models diff --git "a/en/pedia/k/kirkpatrick_and_dahlquist\357\277\275s_technical_analysis.md" "b/en/pedia/k/kirkpatrick_and_dahlquist\357\277\275s_technical_analysis.md" index 8443b86d..e2bb78ec 100644 --- "a/en/pedia/k/kirkpatrick_and_dahlquist\357\277\275s_technical_analysis.md" +++ "b/en/pedia/k/kirkpatrick_and_dahlquist\357\277\275s_technical_analysis.md" @@ -44,7 +44,7 @@ Moving averages are among the most commonly used tools in [technical analysis](. ### Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) is an [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It ranges from 0 to 100 and helps identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) is an [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It ranges from 0 to 100 and helps identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. ### Moving Average Convergence Divergence (MACD) diff --git a/en/pedia/k/kiwi_bond.md b/en/pedia/k/kiwi_bond.md index a888255f..e5ec3957 100644 --- a/en/pedia/k/kiwi_bond.md +++ b/en/pedia/k/kiwi_bond.md @@ -76,7 +76,7 @@ Treasury Bills (T-Bills) are short-term government securities with maturities of ### Inflation-Indexed Bonds -[Inflation](../i/inflation.md)-Indexed Bonds (IIBs) are designed to provide protection against [inflation](../i/inflation.md). The [principal](../p/principal.md) amount of these bonds is adjusted based on changes in the Consumer Price [Index](../i/index.md) (CPI), and they pay [interest](../i/interest.md) on the adjusted [principal](../p/principal.md). This means that both the [interest](../i/interest.md) payments and the [principal](../p/principal.md) amount keep pace with [inflation](../i/inflation.md), providing a [hedge](../h/hedge.md) against [inflation](../i/inflation.md) [risk](../r/risk.md). +[Inflation](../i/inflation.md)-Indexed Bonds (IIBs) are designed to provide protection against [inflation](../i/inflation.md). The [principal](../p/principal.md) amount of these bonds is adjusted based on changes in the Consumer Price [Index](../i/index_instrument.md) (CPI), and they pay [interest](../i/interest.md) on the adjusted [principal](../p/principal.md). This means that both the [interest](../i/interest.md) payments and the [principal](../p/principal.md) amount keep pace with [inflation](../i/inflation.md), providing a [hedge](../h/hedge.md) against [inflation](../i/inflation.md) [risk](../r/risk.md). ### Conventional Government Bonds diff --git a/en/pedia/k/klinger_oscillator_strategies.md b/en/pedia/k/klinger_oscillator_strategies.md index 06799b72..3c395e67 100644 --- a/en/pedia/k/klinger_oscillator_strategies.md +++ b/en/pedia/k/klinger_oscillator_strategies.md @@ -49,7 +49,7 @@ The primary signals generated by the [Klinger Oscillator](../k/klinger_oscillato ### Strategy 2: Klinger Oscillator with RSI -Combine the [Klinger Oscillator](../k/klinger_oscillator.md) with the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) to filter signals: +Combine the [Klinger Oscillator](../k/klinger_oscillator.md) with the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) to filter signals: 1. **Entry Signal:** Enter a long position when the KVO line crosses above the signal line and the RSI is above 50. 2. **Exit Signal:** Close the long position when the KVO line crosses below the signal line or the RSI drops below 50. diff --git a/en/pedia/k/knock-in_barrier_options.md b/en/pedia/k/knock-in_barrier_options.md index 63869ba7..9e30e075 100644 --- a/en/pedia/k/knock-in_barrier_options.md +++ b/en/pedia/k/knock-in_barrier_options.md @@ -8,7 +8,7 @@ Knock-In Barrier [Options](../o/options.md) are a type of exotic option in the [ A Knock-In [Barrier Option](../b/barrier_option.md) is a financial [derivative](../d/derivative.md) that only becomes active or "knocks in" when the price of the [underlying asset](../u/underlying_asset.md) reaches or exceeds a predetermined barrier level. These [options](../o/options.md) are attractive to traders looking for a cost-effective means of exposure to certain [asset](../a/asset.md) price movements without immediately committing to a standard option. ### Components -- **[Underlying Asset](../u/underlying_asset.md):** The [financial instrument](../f/financial_instrument.md) (e.g., stock, [index](../i/index.md), [currency](../c/currency.md) pair) upon which the option is based. +- **[Underlying Asset](../u/underlying_asset.md):** The [financial instrument](../f/financial_instrument.md) (e.g., stock, [index](../i/index_instrument.md), [currency](../c/currency.md) pair) upon which the option is based. - **Barrier Level:** The predefined price point that the [underlying asset](../u/underlying_asset.md) must reach for the option to become active. - **[Strike Price](../s/strike_price.md):** The price at which the holder can buy ([call option](../c/call_option.md)) or sell ([put option](../p/put.md)) the [underlying asset](../u/underlying_asset.md) once the option is active. - **Expiry Date:** The date at which the option contract expires. diff --git a/en/pedia/k/knock-out_option_strategies.md b/en/pedia/k/knock-out_option_strategies.md index 73755ad8..b3dcc085 100644 --- a/en/pedia/k/knock-out_option_strategies.md +++ b/en/pedia/k/knock-out_option_strategies.md @@ -88,7 +88,7 @@ There are two primary types of [knock-out options](../k/knock-out_options.md): Several institutions globally deploy [knock-out option](../k/knock-out_option.md) strategies to achieve their financial objectives. Here are a few practical examples showcasing their use: **1. [Hedge Fund Strategies](../h/hedge_fund_strategies.md)**: Large [hedge](../h/hedge.md) funds employ [knock-out options](../k/knock-out_options.md) to finely tune their [market](../m/market.md) positions, balancing cost with effective [risk management](../r/risk_management.md). - - Example: A [hedge fund](../h/hedge_fund.md) using a combination of up-and-out calls and down-and-out puts to create cost-effective synthetic long or short positions on an [equity](../e/equity.md) [index](../i/index.md). + - Example: A [hedge fund](../h/hedge_fund.md) using a combination of up-and-out calls and down-and-out puts to create cost-effective synthetic long or short positions on an [equity](../e/equity.md) [index](../i/index_instrument.md). **2. [Corporate Finance](../c/corporate_finance.md)**: Corporations may use [knock-out options](../k/knock-out_options.md) as part of their treasury management strategies to [hedge](../h/hedge.md) [foreign exchange](../f/foreign_exchange.md) and [commodity](../c/commodity.md) price exposures. - Example: A [multinational corporation](../m/multinational_corporation.md) using down-and-out forex [put options](../p/put_options.md) to [hedge](../h/hedge.md) against potential [currency](../c/currency.md) [devaluation](../d/devaluation.md). diff --git a/en/pedia/k/knowledge_capital.md b/en/pedia/k/knowledge_capital.md index 81eb8b35..01dae749 100644 --- a/en/pedia/k/knowledge_capital.md +++ b/en/pedia/k/knowledge_capital.md @@ -72,7 +72,7 @@ The Balanced Scorecard is a [strategic management](../s/strategic_management.md) ### Intellectual Capital Index -This [index](../i/index.md) evaluates the [intellectual capital](../i/intellectual_capital.md) of a company by assessing its human, structural, and relational [capital](../c/capital.md). The [Intellectual Capital](../i/intellectual_capital.md) [Index](../i/index.md) provides a comprehensive view of a company's stock of knowledge assets. +This [index](../i/index_instrument.md) evaluates the [intellectual capital](../i/intellectual_capital.md) of a company by assessing its human, structural, and relational [capital](../c/capital.md). The [Intellectual Capital](../i/intellectual_capital.md) [Index](../i/index_instrument.md) provides a comprehensive view of a company's stock of knowledge assets. ### Knowledge Management Systems (KMS) diff --git a/en/pedia/k/knowledge_extraction_in_trading.md b/en/pedia/k/knowledge_extraction_in_trading.md index 1f3ccf3a..26784d20 100644 --- a/en/pedia/k/knowledge_extraction_in_trading.md +++ b/en/pedia/k/knowledge_extraction_in_trading.md @@ -12,7 +12,7 @@ The first step in knowledge extraction for trading is data collection. This invo 1. Historical [Market](../m/market.md) Data: Price, [volume](../v/volume.md), and trading activity across various assets such as [stocks](../s/stock.md), bonds, commodities, and cryptocurrencies. 2. [Real-Time Market Data](../r/real-time_market_data.md): Streaming data of live trading sessions. -3. [Economic Indicators](../e/economic_indicators.md): Data related to GDP, [unemployment](../u/unemployment.md) rates, consumer price [index](../i/index.md), [interest](../i/interest.md) rates, etc. +3. [Economic Indicators](../e/economic_indicators.md): Data related to GDP, [unemployment](../u/unemployment.md) rates, consumer price [index](../i/index_instrument.md), [interest](../i/interest.md) rates, etc. 4. News and [Social Media](../s/social_media.md): Articles, blogs, tweets, and posts that can influence [market sentiment](../m/market_sentiment.md). 5. Financial Reports: Quarterly and annual [earnings](../e/earnings.md) reports, balance sheets, [income](../i/income.md) statements. 6. [Alternative Data](../a/alternative_data.md): Satellite images, shipping data, web traffic [statistics](../s/statistics.md), etc. diff --git a/en/pedia/k/kof_economic_barometer.md b/en/pedia/k/kof_economic_barometer.md index eb4e4820..5db828c4 100644 --- a/en/pedia/k/kof_economic_barometer.md +++ b/en/pedia/k/kof_economic_barometer.md @@ -17,7 +17,7 @@ The KOF Economic Barometer is constructed from over 200 individual [economic ind ### Principles of Construction 1. **Multi-Dimensional Approach**: The barometer integrates indicators from various economic sectors to capture a holistic picture of the [economy](../e/economy.md). 2. **Dynamic Adjustments**: The barometer is regularly updated to incorporate new data and methodologies, ensuring its forecasts remain relevant and accurate. -3. **Statistical Methods**: Advanced statistical techniques, including [factor analysis](../f/factor_analysis.md) and [principal component analysis](../p/principal_component_analysis_(pca).md), are employed to distill the numerous indicators into a single composite [index](../i/index.md). +3. **Statistical Methods**: Advanced statistical techniques, including [factor analysis](../f/factor_analysis.md) and [principal component analysis](../p/principal_component_analysis_(pca).md), are employed to distill the numerous indicators into a single composite [index](../i/index_instrument.md). ## Key Components @@ -29,7 +29,7 @@ The KOF Economic Barometer is constructed from over 200 individual [economic ind ## Interpretation and Usage -The composite [index](../i/index.md) generated by the KOF Economic Barometer is intuitive to interpret. A reading above the long-term average suggests positive future [economic growth](../e/economic_growth.md), while a reading below indicates potential economic downturns. The [index](../i/index.md) is typically published monthly, providing a timely update on [economic conditions](../e/economic_conditions.md). +The composite [index](../i/index_instrument.md) generated by the KOF Economic Barometer is intuitive to interpret. A reading above the long-term average suggests positive future [economic growth](../e/economic_growth.md), while a reading below indicates potential economic downturns. The [index](../i/index_instrument.md) is typically published monthly, providing a timely update on [economic conditions](../e/economic_conditions.md). ### Applications 1. **Economic Policy Making**: Government agencies use the barometer to anticipate economic challenges and adjust fiscal and monetary policies accordingly. diff --git a/en/pedia/k/korea_exchange_(krx).md b/en/pedia/k/korea_exchange_(krx).md index 58f63ebf..e2f9f0f6 100644 --- a/en/pedia/k/korea_exchange_(krx).md +++ b/en/pedia/k/korea_exchange_(krx).md @@ -5,7 +5,7 @@ The Korea [Exchange](../e/exchange.md) (KRX) is the sole securities [exchange](. KRX operates under the oversight of the Financial Services [Commission](../c/commission.md) (FSC) of South Korea, playing a crucial role in the financial [infrastructure](../i/infrastructure.md) of the country. Its main office is located in Busan, South Korea's second-largest city, with additional offices in Seoul. Key Components of Korea [Exchange](../e/exchange.md): -1. **KOSPI [Market](../m/market.md)**: This is the main board of the Korea [Exchange](../e/exchange.md), which includes major [listed](../l/listed.md) companies in South Korea. KOSPI stands for Korean Composite Stock Price [Index](../i/index.md), representing the overall performance of the [exchange](../e/exchange.md). The KOSPI [index](../i/index.md) is one of the key indicators of the South Korean [economy](../e/economy.md). +1. **KOSPI [Market](../m/market.md)**: This is the main board of the Korea [Exchange](../e/exchange.md), which includes major [listed](../l/listed.md) companies in South Korea. KOSPI stands for Korean Composite Stock Price [Index](../i/index_instrument.md), representing the overall performance of the [exchange](../e/exchange.md). The KOSPI [index](../i/index_instrument.md) is one of the key indicators of the South Korean [economy](../e/economy.md). 2. **KOSDAQ [Market](../m/market.md)**: Short for Korean Securities Dealers Automated Quotations, this [market](../m/market.md) is designed for small to medium-sized businesses and startups. It is often compared to the [NASDAQ](../n/nasdaq.md) in the United States and provides a platform for young, high-growth potential companies to raise [capital](../c/capital.md). @@ -30,13 +30,13 @@ KRX operates on a standard trading schedule from 9:00 AM to 3:30 PM Korea Standa ### Indexes -1. **KOSPI [Index](../i/index.md)**: The KOSPI [index](../i/index.md) is a [capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md) of all common [stocks](../s/stock.md) [listed](../l/listed.md) on the Korea [Exchange](../e/exchange.md). It serves as the [benchmark](../b/benchmark.md) [index](../i/index.md) for the South Korean [stock market](../s/stock_market.md). +1. **KOSPI [Index](../i/index_instrument.md)**: The KOSPI [index](../i/index_instrument.md) is a [capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md) of all common [stocks](../s/stock.md) [listed](../l/listed.md) on the Korea [Exchange](../e/exchange.md). It serves as the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) for the South Korean [stock market](../s/stock_market.md). -2. **KOSDAQ [Index](../i/index.md)**: This [index](../i/index.md) specifically tracks the performance of all companies [listed](../l/listed.md) on the KOSDAQ [market](../m/market.md). +2. **KOSDAQ [Index](../i/index_instrument.md)**: This [index](../i/index_instrument.md) specifically tracks the performance of all companies [listed](../l/listed.md) on the KOSDAQ [market](../m/market.md). -3. **KOSPI 200**: This is a [derivative](../d/derivative.md) [index](../i/index.md) based on the top 200 companies in the KOSPI [market](../m/market.md), representing the overall movement and [liquidity](../l/liquidity.md) of major [stocks](../s/stock.md). +3. **KOSPI 200**: This is a [derivative](../d/derivative.md) [index](../i/index_instrument.md) based on the top 200 companies in the KOSPI [market](../m/market.md), representing the overall movement and [liquidity](../l/liquidity.md) of major [stocks](../s/stock.md). -4. **KRX 100**: An [index](../i/index.md) that measures the performance of the top 100 blue-chip companies [listed](../l/listed.md) on both KOSPI and KOSDAQ. +4. **KRX 100**: An [index](../i/index_instrument.md) that measures the performance of the top 100 blue-chip companies [listed](../l/listed.md) on both KOSPI and KOSDAQ. ## Regulations and Compliance @@ -69,11 +69,11 @@ KRX offers various investment vehicles, catering to different [investor](../i/in [Algorithmic trading](../a/accountability.md) has become increasingly prevalent on the KRX, with high-frequency trading (HFT) gaining traction due to the deployment of state-of-the-art [trading systems](../t/trading_systems.md) like EXTURE+. Firms engage in various algorithmic strategies including [arbitrage](../a/arbitrage.md), [pairs trading](../p/pairs_trading.md), and [trend following](../t/trend_following.md). The [exchange](../e/exchange.md) provides ample [liquidity](../l/liquidity.md) and low-latency [infrastructure](../i/infrastructure.md) to support such activities. ### Statistical Data -As of the recent period, the KOSPI [index](../i/index.md) encompasses over 800 companies with a collective [market capitalization](../m/market_capitalization.md) exceeding $1.5 trillion USD. The KOSDAQ [market](../m/market.md) supports over 1,200 companies, emphasizing its role in the growth of South Korea’s tech and biotech sectors. +As of the recent period, the KOSPI [index](../i/index_instrument.md) encompasses over 800 companies with a collective [market capitalization](../m/market_capitalization.md) exceeding $1.5 trillion USD. The KOSDAQ [market](../m/market.md) supports over 1,200 companies, emphasizing its role in the growth of South Korea’s tech and biotech sectors. ## Sustainability and ESG -KRX is committed to promoting Environmental, Social, and Governance (ESG) principles in corporate practices and [investor](../i/investor.md) selections. It has introduced various ESG reporting guidelines and indexes, such as the KRX ESG Leaders [index](../i/index.md), to facilitate sustainable investment. +KRX is committed to promoting Environmental, Social, and Governance (ESG) principles in corporate practices and [investor](../i/investor.md) selections. It has introduced various ESG reporting guidelines and indexes, such as the KRX ESG Leaders [index](../i/index_instrument.md), to facilitate sustainable investment. ## Conclusion diff --git a/en/pedia/k/korea_stock_exchange_(ksc).md b/en/pedia/k/korea_stock_exchange_(ksc).md index b6a000e7..96d0d564 100644 --- a/en/pedia/k/korea_stock_exchange_(ksc).md +++ b/en/pedia/k/korea_stock_exchange_(ksc).md @@ -72,8 +72,8 @@ The KSE has had a profound impact on the South Korean [economy](../e/economy.md) Key indices provide vital insights into the performance of the South Korean [economy](../e/economy.md): -- **KOSPI (Korea Composite Stock Price [Index](../i/index.md))**: A key [benchmark](../b/benchmark.md) reflecting the performance of all [listed](../l/listed.md) companies on the KSE. -- **KOSDAQ [Index](../i/index.md)**: Represents the performance of companies [listed](../l/listed.md) on the KOSDAQ [market](../m/market.md), often focused on technology and growth sectors. +- **KOSPI (Korea Composite Stock Price [Index](../i/index_instrument.md))**: A key [benchmark](../b/benchmark.md) reflecting the performance of all [listed](../l/listed.md) companies on the KSE. +- **KOSDAQ [Index](../i/index_instrument.md)**: Represents the performance of companies [listed](../l/listed.md) on the KOSDAQ [market](../m/market.md), often focused on technology and growth sectors. ## Challenges and Future Outlook diff --git a/en/pedia/k/korean_composite_stock_price_indexes_(kospi).md b/en/pedia/k/korean_composite_stock_price_indexes_(kospi).md index 76396c54..24247db0 100644 --- a/en/pedia/k/korean_composite_stock_price_indexes_(kospi).md +++ b/en/pedia/k/korean_composite_stock_price_indexes_(kospi).md @@ -8,25 +8,25 @@ The Korean Composite Stock Price Indexes (KOSPI) represent the [principal](../p/ ### Origin and Development -The KOSPI was first introduced on January 4, 1983, at a base [value](../v/value.md) of 100. It was created as a way to aggregate and reflect the changes in the stock prices of the [listed](../l/listed.md) companies in South Korea. This [index](../i/index.md) quickly became an important [economic indicator](../e/economic_indicator.md), used by policymakers, analysts, and investors to gauge the health and development of the national [economy](../e/economy.md). +The KOSPI was first introduced on January 4, 1983, at a base [value](../v/value.md) of 100. It was created as a way to aggregate and reflect the changes in the stock prices of the [listed](../l/listed.md) companies in South Korea. This [index](../i/index_instrument.md) quickly became an important [economic indicator](../e/economic_indicator.md), used by policymakers, analysts, and investors to gauge the health and development of the national [economy](../e/economy.md). ### Major Milestones KOSPI has witnessed numerous milestones, reflective of South Korea's economic transformations: -- **1987**: The [index](../i/index.md) closed above 1000 points for the first time. +- **1987**: The [index](../i/index_instrument.md) closed above 1000 points for the first time. - **1997-1998**: Southeast [Asian financial crisis](../a/asian_financial_crisis.md) causes massive [volatility](../v/volatility.md). -- **2008**: Global [financial crisis](../f/financial_crisis.md) impacts the [index](../i/index.md) significantly. +- **2008**: Global [financial crisis](../f/financial_crisis.md) impacts the [index](../i/index_instrument.md) significantly. - **2021**: KOSPI reached a historical high. ## Composition and Calculation ### Constituents -The KOSPI includes companies from a broad [range](../r/range.md) of industries such as technology, [finance](../f/finance.md), retail, and [manufacturing](../m/manufacturing.md), with key players like Samsung Electronics, Hyundai, and SK Hynix representing a substantial portion of the [index](../i/index.md)'s [market capitalization](../m/market_capitalization.md). +The KOSPI includes companies from a broad [range](../r/range.md) of industries such as technology, [finance](../f/finance.md), retail, and [manufacturing](../m/manufacturing.md), with key players like Samsung Electronics, Hyundai, and SK Hynix representing a substantial portion of the [index](../i/index_instrument.md)'s [market capitalization](../m/market_capitalization.md). ### Methodology -The KOSPI is a [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md). This means that each constituent stock is [weighted](../w/weighted.md) according to its [market capitalization](../m/market_capitalization.md), calculated by multiplying the share price by the number of outstanding [shares](../s/shares.md). The formula for calculating the [index](../i/index.md) [value](../v/value.md) is: +The KOSPI is a [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md). This means that each constituent stock is [weighted](../w/weighted.md) according to its [market capitalization](../m/market_capitalization.md), calculated by multiplying the share price by the number of outstanding [shares](../s/shares.md). The formula for calculating the [index](../i/index_instrument.md) [value](../v/value.md) is: \[ \text{KOSPI} = \left( \frac{\sum (\text{Current [Market](../m/market.md) Cap of Constituents})}{\sum (\text{Base [Market](../m/market.md) Cap of Constituents})} \right) \times 100 \] @@ -34,7 +34,7 @@ The KOSPI is a [market capitalization](../m/market_capitalization.md)-[weighted] ### KOSPI 200 -The KOSPI 200 is a sub-[index](../i/index.md) of the KOSPI, comprising 200 of the largest and most [liquid](../l/liquid.md) [stocks](../s/stock.md). It is notably used as the [underlying](../u/underlying.md) [index](../i/index.md) for various [derivative](../d/derivative.md) products like [futures](../f/futures.md) and [options](../o/options.md). The KOSPI 200 serves as a leading [benchmark](../b/benchmark.md) and plays a critical role in the formulation of investment strategies. +The KOSPI 200 is a sub-[index](../i/index_instrument.md) of the KOSPI, comprising 200 of the largest and most [liquid](../l/liquid.md) [stocks](../s/stock.md). It is notably used as the [underlying](../u/underlying.md) [index](../i/index_instrument.md) for various [derivative](../d/derivative.md) products like [futures](../f/futures.md) and [options](../o/options.md). The KOSPI 200 serves as a leading [benchmark](../b/benchmark.md) and plays a critical role in the formulation of investment strategies. ### KOSPI 50, KOSPI 100 @@ -60,7 +60,7 @@ Significant participants in the trading activities surrounding KOSPI indices inc ### Korea Exchange (KRX) -The Korea [Exchange](../e/exchange.md) operates the KOSPI and serves as the central marketplace for trading securities in South Korea. It provides various services to ensure [market](../m/market.md) integrity, including the regulation of trading activities and implementation of the KOSPI [index](../i/index.md). +The Korea [Exchange](../e/exchange.md) operates the KOSPI and serves as the central marketplace for trading securities in South Korea. It provides various services to ensure [market](../m/market.md) integrity, including the regulation of trading activities and implementation of the KOSPI [index](../i/index_instrument.md). **Website**: [krx.co.kr](https://www.krx.co.kr) diff --git a/en/pedia/k/kuala_lumpur_stock_exchange_(kls).md b/en/pedia/k/kuala_lumpur_stock_exchange_(kls).md index db953ec6..217d52f5 100644 --- a/en/pedia/k/kuala_lumpur_stock_exchange_(kls).md +++ b/en/pedia/k/kuala_lumpur_stock_exchange_(kls).md @@ -22,11 +22,11 @@ Bursa Malaysia consists of several components: Bursa Malaysia uses several indices to represent different segments of the [market](../m/market.md): -1. **FTSE Bursa Malaysia KLCI (Kuala Lumpur Composite [Index](../i/index.md))**: The most recognized [index](../i/index.md), comprising the 30 largest companies by [market capitalization](../m/market_capitalization.md). It serves as a [benchmark](../b/benchmark.md) for the Malaysian [market](../m/market.md). +1. **FTSE Bursa Malaysia KLCI (Kuala Lumpur Composite [Index](../i/index_instrument.md))**: The most recognized [index](../i/index_instrument.md), comprising the 30 largest companies by [market capitalization](../m/market_capitalization.md). It serves as a [benchmark](../b/benchmark.md) for the Malaysian [market](../m/market.md). -2. **FTSE Bursa Malaysia Hijrah Shariah [Index](../i/index.md)**: This [index](../i/index.md) includes Shariah-compliant companies, catering to ethical and religious investors. +2. **FTSE Bursa Malaysia Hijrah Shariah [Index](../i/index_instrument.md)**: This [index](../i/index_instrument.md) includes Shariah-compliant companies, catering to ethical and religious investors. -3. **FTSE Bursa Malaysia Mid 70 [Index](../i/index.md)**: Includes 70 [mid-cap](../m/mid-cap.md) companies, [offering](../o/offering.md) a snapshot of the mid-tier [market](../m/market.md). +3. **FTSE Bursa Malaysia Mid 70 [Index](../i/index_instrument.md)**: Includes 70 [mid-cap](../m/mid-cap.md) companies, [offering](../o/offering.md) a snapshot of the mid-tier [market](../m/market.md). ## Trading Mechanisms @@ -76,7 +76,7 @@ Several types of participants operate in Bursa Malaysia: ## Corporate Social Responsibility (CSR) -Bursa Malaysia promotes sustainable and responsible [investing](../i/investing.md). It has initiatives encouraging companies to adopt CSR practices and disclose their environmental, social, and governance (ESG) performance. The FTSE4Good Bursa Malaysia [Index](../i/index.md) was launched to highlight companies with strong ESG practices. +Bursa Malaysia promotes sustainable and responsible [investing](../i/investing.md). It has initiatives encouraging companies to adopt CSR practices and disclose their environmental, social, and governance (ESG) performance. The FTSE4Good Bursa Malaysia [Index](../i/index_instrument.md) was launched to highlight companies with strong ESG practices. ## Global Connections diff --git a/en/pedia/k/kurtosis_management_in_portfolios.md b/en/pedia/k/kurtosis_management_in_portfolios.md index 2b44d18b..b1491b38 100644 --- a/en/pedia/k/kurtosis_management_in_portfolios.md +++ b/en/pedia/k/kurtosis_management_in_portfolios.md @@ -36,7 +36,7 @@ Incorporating alternative investments such as [hedge](../h/hedge.md) funds, comm ### Tail Risk Hedging -Using financial instruments such as [options](../o/options.md) and [futures](../f/futures.md) can [hedge](../h/hedge.md) against [tail risk](../t/tail_risk.md). For instance, buying [put options](../p/put_options.md) on a portfolio or [index](../i/index.md) can provide a safety net against extreme negative returns. [Tail risk](../t/tail_risk.md) [hedging strategies](../h/hedging_strategies.md) are designed specifically to protect against the adverse impacts of high [kurtosis](../k/kurtosis.md). +Using financial instruments such as [options](../o/options.md) and [futures](../f/futures.md) can [hedge](../h/hedge.md) against [tail risk](../t/tail_risk.md). For instance, buying [put options](../p/put_options.md) on a portfolio or [index](../i/index_instrument.md) can provide a safety net against extreme negative returns. [Tail risk](../t/tail_risk.md) [hedging strategies](../h/hedging_strategies.md) are designed specifically to protect against the adverse impacts of high [kurtosis](../k/kurtosis.md). ### Dynamic Risk Management diff --git a/en/pedia/l/laggard.md b/en/pedia/l/laggard.md index cce4bebd..c662845b 100644 --- a/en/pedia/l/laggard.md +++ b/en/pedia/l/laggard.md @@ -10,7 +10,7 @@ A laggard is characterized by its inability to keep pace with the general [marke - The most defining characteristic of a laggard is its consistent underperformance relative to the broader [market index](../m/market_index.md) (e.g., S&P 500, [NASDAQ](../n/nasdaq.md)) or sector-specific indices (e.g., technology, healthcare). 2. **Low [Relative Strength](../r/relative_strength.md):** - - Laggards typically exhibit low [relative strength](../r/relative_strength.md), an [indicator](../i/indicator.md) used to compare a [security](../s/security.md)'s performance to a [benchmark](../b/benchmark.md). A low [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI) suggests the stock is weaker compared to the broader [market](../m/market.md) [trend](../t/trend.md). + - Laggards typically exhibit low [relative strength](../r/relative_strength.md), an [indicator](../i/indicator.md) used to compare a [security](../s/security.md)'s performance to a [benchmark](../b/benchmark.md). A low [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI) suggests the stock is weaker compared to the broader [market](../m/market.md) [trend](../t/trend.md). 3. **[Investor](../i/investor.md) Sentiment:** - Laggards may suffer from poor [investor](../i/investor.md) sentiment due to various reasons including disappointing [earnings](../e/earnings.md) reports, negative news, or unfavorable [industry](../i/industry.md) trends. diff --git a/en/pedia/l/lagged_variables_in_trading.md b/en/pedia/l/lagged_variables_in_trading.md index 7a1eeaab..8b6e5791 100644 --- a/en/pedia/l/lagged_variables_in_trading.md +++ b/en/pedia/l/lagged_variables_in_trading.md @@ -14,7 +14,7 @@ Mathematically, for a [time series](../t/time_series.md) \(Y_t\), the lagged [va 2. **[Autoregressive Models](../a/autoregressive.md)**: Models such as ARIMA (AutoRegressive Integrated Moving Average) use lagged variables to predict future prices based on historical data. These models are crucial in [forecasting](../f/forecasting.md) [financial time series](../f/financial_time_series.md). -3. **[Indicator](../i/indicator.md) Development**: Many [technical indicators](../t/technical_indicators.md), such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) and MACD (Moving Average Convergence [Divergence](../d/divergence.md)), are derived from lagged variables. These indicators help traders make decisions based on historical price movements and [momentum](../m/momentum.md). +3. **[Indicator](../i/indicator.md) Development**: Many [technical indicators](../t/technical_indicators.md), such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) and MACD (Moving Average Convergence [Divergence](../d/divergence.md)), are derived from lagged variables. These indicators help traders make decisions based on historical price movements and [momentum](../m/momentum.md). 4. **[Risk Management](../r/risk_management.md)**: Lagged variables can also be used in [risk management](../r/risk_management.md) strategies. For instance, historical volatilities calculated from lagged returns are used to estimate future [risk](../r/risk.md) and adjust position sizes accordingly. diff --git a/en/pedia/l/lagging_economic_indicators.md b/en/pedia/l/lagging_economic_indicators.md index bbf0011b..efa56906 100644 --- a/en/pedia/l/lagging_economic_indicators.md +++ b/en/pedia/l/lagging_economic_indicators.md @@ -9,7 +9,7 @@ Lagging [economic indicators](../e/economic_indicators.md) are quantitative metr - **Significance**: A high [unemployment rate](../u/unemployment_rate.md) might indicate a lagging [economy](../e/economy.md), whereas lower [unemployment](../u/unemployment.md) rates suggest [economic growth](../e/economic_growth.md). - **Example**: The U.S. Bureau of Labor [Statistics](../s/statistics.md) (BLS) reports monthly [unemployment](../u/unemployment.md) rates. -2. **Consumer Price [Index](../i/index.md) (CPI)** +2. **Consumer Price [Index](../i/index_instrument.md) (CPI)** - **Definition**: Measures changes in the [price level](../p/price_level.md) of a basket of [consumer goods](../c/consumer_goods.md) and services purchased by households. - **Significance**: CPI is vital for understanding inflationary trends and the [cost of living](../c/cost_of_living.md). - **Example**: Detailed CPI data is provided by the U.S. Bureau of Labor [Statistics](../s/statistics.md) (BLS). diff --git a/en/pedia/l/lagging_indicator.md b/en/pedia/l/lagging_indicator.md index 91a7d690..f15411d7 100644 --- a/en/pedia/l/lagging_indicator.md +++ b/en/pedia/l/lagging_indicator.md @@ -6,7 +6,7 @@ A lagging [indicator](../i/indicator.md) is a quantitative or statistical measur [Lagging indicators](../l/lagging_indicators.md) are characterized by their confirmatory nature; they only change direction once a significant movement or [trend](../t/trend.md) in the financial [market](../m/market.md) has begun. This means that while they are valuable for confirming trends and avoiding [false signals](../f/false_signals_in_trading.md), they do not provide early warnings or timely signals. They are especially useful in identifying the robustness of long-term trends, which can be beneficial for more conservative [trading strategies](../t/trading_strategies.md) looking to minimize [risk](../r/risk.md). -The main types of [lagging indicators](../l/lagging_indicators.md) include moving averages, the Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Bollinger Bands](../b/bollinger_band.md), [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and others. Here is an in-depth look at some of these indicators: +The main types of [lagging indicators](../l/lagging_indicators.md) include moving averages, the Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Bollinger Bands](../b/bollinger_band.md), [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and others. Here is an in-depth look at some of these indicators: ### Moving Averages @@ -28,7 +28,7 @@ Traders use [Bollinger Bands](../b/bollinger_band.md) to identify [overbought](. ### Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. RSI oscillates between 0 and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). An RSI [value](../v/value.md) above 70 is generally considered [overbought](../o/overbought.md), while an RSI [value](../v/value.md) below 30 is considered [oversold](../o/oversold.md). +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. RSI oscillates between 0 and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). An RSI [value](../v/value.md) above 70 is generally considered [overbought](../o/overbought.md), while an RSI [value](../v/value.md) below 30 is considered [oversold](../o/oversold.md). ### Stochastic Oscillator diff --git a/en/pedia/l/last_price_analysis.md b/en/pedia/l/last_price_analysis.md index 68164390..63c24c7d 100644 --- a/en/pedia/l/last_price_analysis.md +++ b/en/pedia/l/last_price_analysis.md @@ -37,7 +37,7 @@ Analyzing the last price involves several techniques and methodologies, dependin Technical analysts heavily rely on the last price to make trading decisions by evaluating historical price movements. Key aspects include: 1. **Price Charts**: [Candlestick](../c/candlestick.md), line, and bar charts visualize last price data over time. -2. **Indicators and Oscillators**: Tools like Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) are derived from last price data. +2. **Indicators and Oscillators**: Tools like Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) are derived from last price data. 3. **[Chart Patterns](../c/chart_patterns.md)**: Patterns such as Head and Shoulders, Double Bottoms, and Flags are identified using last price trends. ### Quantitative Analysis diff --git a/en/pedia/l/last_trading_day.md b/en/pedia/l/last_trading_day.md index df9f9d35..70786ed2 100644 --- a/en/pedia/l/last_trading_day.md +++ b/en/pedia/l/last_trading_day.md @@ -25,7 +25,7 @@ These involve physical assets such as oil, gold, or agricultural products. For [ #### Financial Futures These involve financial instruments such as currencies, bonds, or indices. For financial [futures](../f/futures.md): -- **Cash Settlement**: Predominantly, financial [futures](../f/futures.md) are settled in cash. For example, [index futures](../i/index_futures.md) are settled based on the [value](../v/value.md) of the [underlying](../u/underlying.md) [index](../i/index.md) on LTD. +- **Cash Settlement**: Predominantly, financial [futures](../f/futures.md) are settled in cash. For example, [index futures](../i/index_futures.md) are settled based on the [value](../v/value.md) of the [underlying](../u/underlying.md) [index](../i/index_instrument.md) on LTD. ### Options Contracts diff --git a/en/pedia/l/leading_economic_index_(lei).md b/en/pedia/l/leading_economic_index_(lei).md index 45e89866..dd337c85 100644 --- a/en/pedia/l/leading_economic_index_(lei).md +++ b/en/pedia/l/leading_economic_index_(lei).md @@ -1,6 +1,6 @@ # Leading Economic Index (LEI) -The Leading Economic [Index](../i/index.md) (LEI) is a composite [index](../i/index.md) published monthly by the Conference Board, an independent research association. It is designed to anticipate changes in the [economic cycle](../e/economic_cycle.md) and forecast future economic activity. As a crucial tool in economic analysis, it aggregates [multiple](../m/multiple.md) [economic indicators](../e/economic_indicators.md) that historically have moved before changes in the overall [economy](../e/economy.md), hence the term “leading.” +The Leading Economic [Index](../i/index_instrument.md) (LEI) is a composite [index](../i/index_instrument.md) published monthly by the Conference Board, an independent research association. It is designed to anticipate changes in the [economic cycle](../e/economic_cycle.md) and forecast future economic activity. As a crucial tool in economic analysis, it aggregates [multiple](../m/multiple.md) [economic indicators](../e/economic_indicators.md) that historically have moved before changes in the overall [economy](../e/economy.md), hence the term “leading.” ### Components of LEI @@ -9,11 +9,11 @@ As of the latest methodology update, the LEI comprises ten components: 1. **Average weekly hours, [manufacturing](../m/manufacturing.md):** This gives insight into [labor market](../l/labor_market.md) conditions. An increase usually indicates that employers are [gearing](../g/gearing.md) up for higher [demand](../d/demand.md). 2. **Average weekly initial claims for [unemployment](../u/unemployment.md) [insurance](../i/insurance.md):** This is a measure of layoffs. A rise usually suggests weakening economic activity, while a fall implies an improvement. 3. **Manufacturers' new orders, [consumer goods](../c/consumer_goods.md) and materials:** Increased new orders can indicate higher production levels in the future. -4. **ISM [Index](../i/index.md) of New Orders:** The Institute for [Supply](../s/supply.md) Management’s [index](../i/index.md) provides insights into [manufacturing](../m/manufacturing.md) sector activities and future production. +4. **ISM [Index](../i/index_instrument.md) of New Orders:** The Institute for [Supply](../s/supply.md) Management’s [index](../i/index_instrument.md) provides insights into [manufacturing](../m/manufacturing.md) sector activities and future production. 5. **Manufacturers' new orders, non-defense [capital goods](../c/capital_goods.md) excluding aircraft:** This often signals future [business](../b/business.md) investment. 6. **Building permits, new private housing units:** Housing sector activity is a major economic driver; more permits suggest future construction activity. 7. **Stock prices, 500 common [stocks](../s/stock.md):** [Stock market](../s/stock_market.md) performance can reflect [investor](../i/investor.md) sentiment and future economic expectations. -8. **Leading [Credit](../c/credit.md) [Index](../i/index.md):** Comprised of six financial indicators, it provides information on the state of the [credit](../c/credit.md) markets. +8. **Leading [Credit](../c/credit.md) [Index](../i/index_instrument.md):** Comprised of six financial indicators, it provides information on the state of the [credit](../c/credit.md) markets. 9. **[Interest rate](../i/interest_rate.md) spread, 10-year Treasury bonds less [federal funds](../f/federal_funds.md):** A larger spread generally indicates more [robust](../r/robust.md) future economic activity. 10. **Average consumer expectations for [business](../b/business.md) conditions:** This leverages components of consumer confidence surveys. @@ -32,7 +32,7 @@ The Conference Board periodically reviews and updates the methodology of the LEI 1. **Selection of Components:** Indicators are selected based on economic theory, empirical results, and statistical robustness. 2. **Normalization and Smoothing:** Data are normalized to account for different magnitudes and smoothed to reduce [volatility](../v/volatility.md). 3. **Weight [Assignment](../a/assignment.md):** Each component is assigned a weight, typically based on its historical [correlation](../c/correlation.md) with future economic activity. -4. **Composite Construction:** The final composite [index](../i/index.md) is calculated as a [weighted average](../w/weighted_average.md) of the normalized, smoothed components. +4. **Composite Construction:** The final composite [index](../i/index_instrument.md) is calculated as a [weighted average](../w/weighted_average.md) of the normalized, smoothed components. ### Historical Performance @@ -62,6 +62,6 @@ Despite its widespread use, the LEI is not without criticisms: ### Conclusion -The Leading Economic [Index](../i/index.md) is an invaluable tool for predicting economic activity, [offering](../o/offering.md) a synthesis of various leading [economic indicators](../e/economic_indicators.md) into a single, cohesive measure. Its broad application across [economic forecasting](../e/economic_forecasting.md), [business](../b/business.md) planning, and policy formulation underscores its significance. However, users must be cautious of its limitations and use it in conjunction with other analytical tools for the best results. +The Leading Economic [Index](../i/index_instrument.md) is an invaluable tool for predicting economic activity, [offering](../o/offering.md) a synthesis of various leading [economic indicators](../e/economic_indicators.md) into a single, cohesive measure. Its broad application across [economic forecasting](../e/economic_forecasting.md), [business](../b/business.md) planning, and policy formulation underscores its significance. However, users must be cautious of its limitations and use it in conjunction with other analytical tools for the best results. For more information, visit the Conference Board’s official website: [The Conference Board](https://www.conference-board.org/). diff --git a/en/pedia/l/leading_indicator.md b/en/pedia/l/leading_indicator.md index 877f4516..067741a2 100644 --- a/en/pedia/l/leading_indicator.md +++ b/en/pedia/l/leading_indicator.md @@ -18,7 +18,7 @@ The number of building permits issued is a leading [indicator](../i/indicator.md ### Consumer Confidence Index (CCI) -The Consumer Confidence [Index](../i/index.md) measures how optimistic or pessimistic consumers are regarding their expected financial situation. A higher consumer confidence [index](../i/index.md) implies that consumers are more likely to spend [money](../m/money.md), which can drive [economic growth](../e/economic_growth.md). +The Consumer Confidence [Index](../i/index_instrument.md) measures how optimistic or pessimistic consumers are regarding their expected financial situation. A higher consumer confidence [index](../i/index_instrument.md) implies that consumers are more likely to spend [money](../m/money.md), which can drive [economic growth](../e/economic_growth.md). ### Initial Jobless Claims @@ -41,7 +41,7 @@ Initial [jobless claims](../j/jobless_claims.md) are weekly [statistics](../s/st #### Quantitative Models -Algo-[trading systems](../t/trading_systems.md) often incorporate [leading indicators](../l/leading_indicators.md) into [quantitative models](../q/quantitative_models.md) designed to predict price movements. For instance, an algorithm might analyze [stock market](../s/stock_market.md) returns or changes in the Consumer Confidence [Index](../i/index.md) to predict future price trends. +Algo-[trading systems](../t/trading_systems.md) often incorporate [leading indicators](../l/leading_indicators.md) into [quantitative models](../q/quantitative_models.md) designed to predict price movements. For instance, an algorithm might analyze [stock market](../s/stock_market.md) returns or changes in the Consumer Confidence [Index](../i/index_instrument.md) to predict future price trends. #### Machine Learning diff --git a/en/pedia/l/leading_indicators.md b/en/pedia/l/leading_indicators.md index 85795d88..7f1982d5 100644 --- a/en/pedia/l/leading_indicators.md +++ b/en/pedia/l/leading_indicators.md @@ -9,13 +9,13 @@ Leading indicators are statistical tools used to predict changes in the [stock m ## Types of Leading Indicators 1. **Economic Leading Indicators:** - - **Consumer Confidence [Index](../i/index.md) (CCI):** This measures the degree of optimism that consumers feel about the overall state of the [economy](../e/economy.md) and their personal financial situation. High consumer confidence typically indicates future [economic growth](../e/economic_growth.md). + - **Consumer Confidence [Index](../i/index_instrument.md) (CCI):** This measures the degree of optimism that consumers feel about the overall state of the [economy](../e/economy.md) and their personal financial situation. High consumer confidence typically indicates future [economic growth](../e/economic_growth.md). - **[Manufacturing](../m/manufacturing.md) Orders:** The [volume](../v/volume.md) of orders for durable goods, non-durable goods, and other products serves as an [indicator](../i/indicator.md) of future [manufacturing](../m/manufacturing.md) activity. - **[Stock Market](../s/stock_market.md) Returns:** Often seen as a predictor of economic activity, the [stock market](../s/stock_market.md)'s performance can indicate future [economic conditions](../e/economic_conditions.md). 2. **Technical Leading Indicators:** - **Moving Averages (e.g., SMA, EMA):** While separately considered lagging, certain paired moving averages (e.g., 50-day vs. 200-day) can act as leading indicators when they exhibit patterns like the "[Golden Cross](../g/golden_cross.md)" or "[Death Cross](../d/death_cross.md)." - - **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** Often used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md), indicating potential [reversal](../r/reversal.md) points. + - **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** Often used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md), indicating potential [reversal](../r/reversal.md) points. - **MACD (Moving Average Convergence [Divergence](../d/divergence.md)):** When the MACD line crosses above the signal line, it is often considered a bullish signal, prompting buy decisions in [algorithmic trading](../a/algorithmic_trading.md) systems. - **[Bollinger Bands](../b/bollinger_bands.md):** When the price moves outside the bands, it indicates a potential [reversal](../r/reversal.md), thus providing an actionable signal for traders. @@ -42,7 +42,7 @@ Several platforms and tools enable the use of leading indicators in [algorithmic - **MetaTrader 4/5:** Popular trading software [offering](../o/offering.md) a [range](../r/range.md) of [technical indicators](../t/technical_indicators.md) that can be used for algorithm development. - **[QuantConnect](../q/quantconnect.md):** A cloud-based [algorithmic trading](../a/algorithmic_trading.md) platform providing access to data, [backtesting](../b/backtesting.md), and deployment. (https://www.[quantconnect](../q/quantconnect.md).com/) - **[TradingView](../t/tradingview.md):** A charting platform [offering](../o/offering.md) a variety of built-in indicators and scripts that can be used in [algorithmic trading](../a/algorithmic_trading.md). (https://www.[tradingview](../t/tradingview.md).com/) -- **Algorithm Lab by [Interactive Brokers](../i/interactive_brokers.md):** A tool that allows users to create, test, and implement [trading algorithms](../t/trading_algorithms.md) using various indicators. (https://www.interactivebrokers.com/en/[index](../i/index.md).php?f=2078) +- **Algorithm Lab by [Interactive Brokers](../i/interactive_brokers.md):** A tool that allows users to create, test, and implement [trading algorithms](../t/trading_algorithms.md) using various indicators. (https://www.interactivebrokers.com/en/[index](../i/index_instrument.md).php?f=2078) ## Future Trends diff --git a/en/pedia/l/leading_vs._lagging_indicators.md b/en/pedia/l/leading_vs._lagging_indicators.md index 0e511dfa..e5cf3aef 100644 --- a/en/pedia/l/leading_vs._lagging_indicators.md +++ b/en/pedia/l/leading_vs._lagging_indicators.md @@ -10,19 +10,19 @@ ### Types of Leading Indicators -1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. An RSI above 70 typically indicates [overbought](../o/overbought.md) conditions, while an RSI below 30 indicates [oversold](../o/oversold.md) conditions. +1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. An RSI above 70 typically indicates [overbought](../o/overbought.md) conditions, while an RSI below 30 indicates [oversold](../o/oversold.md) conditions. - Formula: RSI = 100 - [100 / (1 + RS)], where RS = Average [gain](../g/gain.md) of up periods during a specified time frame / Average loss of down periods during the specified time frame. 2. **[Stochastic Oscillator](../s/stochastic_oscillator.md)**: This [indicator](../i/indicator.md) compares a particular closing price of a [security](../s/security.md) to a [range](../r/range.md) of its prices over a certain period. The [stochastic oscillator](../s/stochastic_oscillator.md) is used to generate [overbought](../o/overbought.md) and [oversold](../o/oversold.md) signals. - Formula: %K = (Current Close - Lowest Low) / (Highest High - Lowest Low) * 100 -3. **Consumer Confidence [Index](../i/index.md) (CCI)**: The CCI measures the degree of optimism that consumers feel about the overall state of the [economy](../e/economy.md) and their personal financial situations. Higher consumer confidence typically leads to increased consumer spending and investment. +3. **Consumer Confidence [Index](../i/index_instrument.md) (CCI)**: The CCI measures the degree of optimism that consumers feel about the overall state of the [economy](../e/economy.md) and their personal financial situations. Higher consumer confidence typically leads to increased consumer spending and investment. - Source: [The Conference Board](https://www.conference-board.org/data/consumerconfidence.cfm) 4. **[Economic Indicators](../e/economic_indicators.md)**: Various economic data points, like [Unemployment Rate](../u/unemployment_rate.md), Gross Domestic Product (GDP), and [Inflation](../i/inflation.md) Rate, can serve as [leading indicators](../l/leading_indicators.md). These indicators help predict economic trends that can affect [market](../m/market.md) performance. - Source: [Federal Reserve Economic Data (FRED)](https://fred.stlouisfed.org/) -5. **[Stock Market](../s/stock_market.md) Indexes**: Certain [stock market](../s/stock_market.md) indexes, such as the S&P 500 and Dow Jones Industrial Average, can act as [leading indicators](../l/leading_indicators.md) for the overall [market](../m/market.md) direction. A rising [index](../i/index.md) may indicate a bullish [market](../m/market.md), while a falling [index](../i/index.md) may indicate a bearish [market](../m/market.md). +5. **[Stock Market](../s/stock_market.md) Indexes**: Certain [stock market](../s/stock_market.md) indexes, such as the S&P 500 and Dow Jones Industrial Average, can act as [leading indicators](../l/leading_indicators.md) for the overall [market](../m/market.md) direction. A rising [index](../i/index_instrument.md) may indicate a bullish [market](../m/market.md), while a falling [index](../i/index_instrument.md) may indicate a bearish [market](../m/market.md). - Source: [S&P Dow Jones Indices](https://www.spglobal.com/spdji/en/) ### Application of Leading Indicators diff --git a/en/pedia/l/leads_and_lags.md b/en/pedia/l/leads_and_lags.md index def409bd..d2d111fd 100644 --- a/en/pedia/l/leads_and_lags.md +++ b/en/pedia/l/leads_and_lags.md @@ -14,7 +14,7 @@ A [leading indicator](../l/leading_indicator.md) is a variable that changes befo 1. **Moving Averages**: Simple Moving Averages (SMA) or Exponential Moving Averages (EMA) can act as [leading indicators](../l/leading_indicators.md) when used in conjunction with other metrics. For instance, a crossover of a shorter-term EMA above a longer-term EMA could signal a potential upward [trend](../t/trend.md). -2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: RSI measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in the price of an [asset](../a/asset.md). An RSI above 70 typically denotes [overbought](../o/overbought.md) conditions, while an RSI below 30 indicates [oversold](../o/oversold.md) conditions. +2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: RSI measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in the price of an [asset](../a/asset.md). An RSI above 70 typically denotes [overbought](../o/overbought.md) conditions, while an RSI below 30 indicates [oversold](../o/oversold.md) conditions. 3. **[Stochastic Oscillator](../s/stochastic_oscillator.md)**: This compares the closing price of an [asset](../a/asset.md) to its price [range](../r/range.md) over a specific period. It's useful in determining entry and exit points in the [market](../m/market.md). diff --git a/en/pedia/l/lehman_aggregate_bond_index.md b/en/pedia/l/lehman_aggregate_bond_index.md index 4052aced..cedb3b47 100644 --- a/en/pedia/l/lehman_aggregate_bond_index.md +++ b/en/pedia/l/lehman_aggregate_bond_index.md @@ -1,94 +1,94 @@ # Lehman Aggregate Bond Index -The [Lehman Brothers](../l/lehman_brothers.md) Aggregate [Bond](../b/bond.md) [Index](../i/index.md), often referred to simply as the "Lehman Agg," was one of the flagship benchmarks for measuring the performance of the U.S. [bond market](../b/bond_market.md). It has since been succeeded by the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index.md) following the [acquisition](../a/acquisition.md) of [Lehman Brothers](../l/lehman_brothers.md) by Barclays in 2008. This [index](../i/index.md) is pivotal in [financial markets](../f/financial_market.md), especially for investors focused on fixed-[income](../i/income.md) securities. +The [Lehman Brothers](../l/lehman_brothers.md) Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md), often referred to simply as the "Lehman Agg," was one of the flagship benchmarks for measuring the performance of the U.S. [bond market](../b/bond_market.md). It has since been succeeded by the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) following the [acquisition](../a/acquisition.md) of [Lehman Brothers](../l/lehman_brothers.md) by Barclays in 2008. This [index](../i/index_instrument.md) is pivotal in [financial markets](../f/financial_market.md), especially for investors focused on fixed-[income](../i/income.md) securities. ## Overview -The Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index.md) is a broad-based [benchmark](../b/benchmark.md) that covers investment-grade bonds traded in the United States. It was one of the most widely used indices for fixed-[income](../i/income.md) research and performance measurement. Its comprehensive nature makes it an essential tool for portfolio managers and individual investors alike. +The Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) is a broad-based [benchmark](../b/benchmark.md) that covers investment-grade bonds traded in the United States. It was one of the most widely used indices for fixed-[income](../i/income.md) research and performance measurement. Its comprehensive nature makes it an essential tool for portfolio managers and individual investors alike. ## Constituents -The Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index.md) includes various types of bonds: +The Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) includes various types of bonds: - **Treasuries**: These are government-issued securities which provide a nearly [risk-free rate of return](../r/risk-free_rate_of_return.md). - **Government-Related Bonds**: Bonds that are issued by government agencies and instrumentalities. - **[Mortgage](../m/mortgage.md)-Backed Securities (MBS)**: These are bonds secured by [mortgage](../m/mortgage.md) loans. - **[Asset](../a/asset.md)-Backed Securities (ABS)**: These bonds are backed by financial assets such as [credit card](../c/credit_card.md) receivables. - **Corporate Bonds**: [Debt](../d/debt.md) securities issued by corporations. -To be included in the [index](../i/index.md), securities must have at least one year until [maturity](../m/maturity.md) and a minimum amount outstanding of $250 million. +To be included in the [index](../i/index_instrument.md), securities must have at least one year until [maturity](../m/maturity.md) and a minimum amount outstanding of $250 million. ## Historical Context -[Lehman Brothers](../l/lehman_brothers.md) introduced the Aggregate [Bond](../b/bond.md) [Index](../i/index.md) in 1986. It quickly became one of the most trusted and referenced [bond](../b/bond.md) indices globally. The collapse of [Lehman Brothers](../l/lehman_brothers.md) during the [financial crisis](../f/financial_crisis.md) of 2008 led to significant changes. Barclays [Capital](../c/capital.md) acquired the [index](../i/index.md), and it was rebranded as the Barclays [Capital](../c/capital.md) U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index.md). In turn, [Bloomberg](../b/bloomberg.md) acquired the [index](../i/index.md) series from Barclays in 2016, and it is now known as the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index.md). +[Lehman Brothers](../l/lehman_brothers.md) introduced the Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) in 1986. It quickly became one of the most trusted and referenced [bond](../b/bond.md) indices globally. The collapse of [Lehman Brothers](../l/lehman_brothers.md) during the [financial crisis](../f/financial_crisis.md) of 2008 led to significant changes. Barclays [Capital](../c/capital.md) acquired the [index](../i/index_instrument.md), and it was rebranded as the Barclays [Capital](../c/capital.md) U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md). In turn, [Bloomberg](../b/bloomberg.md) acquired the [index](../i/index_instrument.md) series from Barclays in 2016, and it is now known as the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md). ## Importance in Algo-Trading -[Algorithmic trading](../a/accountability.md) (algo-trading) relies heavily on indices for creating [trading algorithms](../t/trading_algorithms.md), executing trades, and benchmarking performance. The Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index.md) serves several critical functions in this space: +[Algorithmic trading](../a/accountability.md) (algo-trading) relies heavily on indices for creating [trading algorithms](../t/trading_algorithms.md), executing trades, and benchmarking performance. The Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) serves several critical functions in this space: ### Benchmarking -The [index](../i/index.md) provides a performance yardstick for portfolio managers to measure their returns against. Algo-traders use this [benchmark](../b/benchmark.md) to create strategies that either track the [index](../i/index.md) closely or attempt to [outperform](../o/outperform.md) it. +The [index](../i/index_instrument.md) provides a performance yardstick for portfolio managers to measure their returns against. Algo-traders use this [benchmark](../b/benchmark.md) to create strategies that either track the [index](../i/index_instrument.md) closely or attempt to [outperform](../o/outperform.md) it. ### Risk Management -In fixed-[income](../i/income.md) algo-trading, understanding the [risk](../r/risk.md) characteristics of different securities is crucial. The Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index.md) includes a diversified mix of bonds, which provides algo-traders with insights into the [risk](../r/risk.md)-[return](../r/return.md) profile of the broader [bond market](../b/bond_market.md). +In fixed-[income](../i/income.md) algo-trading, understanding the [risk](../r/risk.md) characteristics of different securities is crucial. The Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) includes a diversified mix of bonds, which provides algo-traders with insights into the [risk](../r/risk.md)-[return](../r/return.md) profile of the broader [bond market](../b/bond_market.md). ### Statistical Analysis -Algo-traders use historical data from the [index](../i/index.md) for back-testing [trading strategies](../t/trading_strategies.md). The long history and data integrity make the [index](../i/index.md) a reliable source for statistical analysis. +Algo-traders use historical data from the [index](../i/index_instrument.md) for back-testing [trading strategies](../t/trading_strategies.md). The long history and data integrity make the [index](../i/index_instrument.md) a reliable source for statistical analysis. ### Liquidity -[Liquidity](../l/liquidity.md) is a critical [factor](../f/factor.md) in algo-trading. The bonds included in the Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index.md) are typically highly [liquid](../l/liquid.md), making it easier to execute large trades without significantly impacting [market](../m/market.md) prices. +[Liquidity](../l/liquidity.md) is a critical [factor](../f/factor.md) in algo-trading. The bonds included in the Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) are typically highly [liquid](../l/liquid.md), making it easier to execute large trades without significantly impacting [market](../m/market.md) prices. ## Calculation Methodology -The Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index.md) employs a [market](../m/market.md)-[weighted](../w/weighted.md) methodology. Here’s how the calculation breaks down: +The Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) employs a [market](../m/market.md)-[weighted](../w/weighted.md) methodology. Here’s how the calculation breaks down: -- **[Market Value](../m/market_value.md)**: Each [bond](../b/bond.md)'s contribution to the [index](../i/index.md) is [weighted](../w/weighted.md) by its [market value](../m/market_value.md). This means the larger the outstanding amount of a [bond](../b/bond.md), the greater its influence on the [index](../i/index.md). +- **[Market Value](../m/market_value.md)**: Each [bond](../b/bond.md)'s contribution to the [index](../i/index_instrument.md) is [weighted](../w/weighted.md) by its [market value](../m/market_value.md). This means the larger the outstanding amount of a [bond](../b/bond.md), the greater its influence on the [index](../i/index_instrument.md). - **Pricing**: Prices for the bonds are gathered from [multiple](../m/multiple.md) sources to ensure accuracy. In most cases, these prices reflect [market](../m/market.md) transactions. -- **[Rebalancing](../r/rebalancing.md)**: The [index](../i/index.md) is rebalanced monthly to account for new issuances, maturities, or other changes in the [bond market](../b/bond_market.md). +- **[Rebalancing](../r/rebalancing.md)**: The [index](../i/index_instrument.md) is rebalanced monthly to account for new issuances, maturities, or other changes in the [bond market](../b/bond_market.md). ## Analytics and Metrics -A variety of metrics are used to analyze the performance and characteristics of the Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index.md): +A variety of metrics are used to analyze the performance and characteristics of the Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md): - **[Yield to Maturity](../y/yield_to_maturity.md)**: The [total return](../t/total_return.md) anticipated on a [bond](../b/bond.md) if it is held until it matures. - **[Duration](../d/duration.md)**: A measure of the sensitivity of a [bond](../b/bond.md)'s price to changes in [interest](../i/interest.md) rates. -- **[Credit](../c/credit.md) Quality**: Assesses the average [creditworthiness](../c/creditworthiness.md) of the bonds in the [index](../i/index.md). +- **[Credit](../c/credit.md) Quality**: Assesses the average [creditworthiness](../c/creditworthiness.md) of the bonds in the [index](../i/index_instrument.md). - **Sector Allocation**: The [distribution](../d/distribution.md) of bonds across different sectors like Treasuries, corporates, and [mortgage](../m/mortgage.md)-backed securities. ## Applications in Portfolio Management ### Passive Management -Many fixed-[income](../i/income.md) ETFs and mutual funds aim to mimic the performance of the Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index.md). By holding a portfolio of bonds that closely tracks the [index](../i/index.md), these funds [offer](../o/offer.md) investors a way to achieve returns similar to the overall [bond market](../b/bond_market.md) without the need for [active management](../a/active_management.md). +Many fixed-[income](../i/income.md) ETFs and mutual funds aim to mimic the performance of the Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md). By holding a portfolio of bonds that closely tracks the [index](../i/index_instrument.md), these funds [offer](../o/offer.md) investors a way to achieve returns similar to the overall [bond market](../b/bond_market.md) without the need for [active management](../a/active_management.md). ### Active Management -Active managers use the Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index.md) as a [benchmark](../b/benchmark.md). They attempt to [outperform](../o/outperform.md) the [index](../i/index.md) through various strategies such as [credit](../c/credit.md) analysis, [interest rate](../i/interest_rate.md) positioning, and [sector rotation](../s/sector_rotation.md). +Active managers use the Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) as a [benchmark](../b/benchmark.md). They attempt to [outperform](../o/outperform.md) the [index](../i/index_instrument.md) through various strategies such as [credit](../c/credit.md) analysis, [interest rate](../i/interest_rate.md) positioning, and [sector rotation](../s/sector_rotation.md). ### Enhanced Indexing -Enhanced [indexing](../i/indexing.md) seeks to closely track the Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index.md) while making slight deviations to capture higher returns or lower risks. This approach combines elements of both passive and [active management](../a/active_management.md). +Enhanced [indexing](../i/indexing.md) seeks to closely track the Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) while making slight deviations to capture higher returns or lower risks. This approach combines elements of both passive and [active management](../a/active_management.md). ## Criticisms and Challenges -While the Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index.md) is highly regarded, it is not without criticisms: +While the Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) is highly regarded, it is not without criticisms: -- **Heavy Treasuries Weighting**: Treasuries make up a significant portion of the [index](../i/index.md), which may not be ideal for investors seeking higher yields. -- **Limited High-[Yield](../y/yield.md) Bonds**: The [index](../i/index.md) primarily focuses on investment-grade bonds, potentially ignoring opportunities in the high-[yield](../y/yield.md) space. -- **[Interest Rate Sensitivity](../i/interest_rate_sensitivity.md)**: Given its composition, the [index](../i/index.md) can be sensitive to changes in [interest](../i/interest.md) rates, affecting its performance during periods of rising rates. +- **Heavy Treasuries Weighting**: Treasuries make up a significant portion of the [index](../i/index_instrument.md), which may not be ideal for investors seeking higher yields. +- **Limited High-[Yield](../y/yield.md) Bonds**: The [index](../i/index_instrument.md) primarily focuses on investment-grade bonds, potentially ignoring opportunities in the high-[yield](../y/yield.md) space. +- **[Interest Rate Sensitivity](../i/interest_rate_sensitivity.md)**: Given its composition, the [index](../i/index_instrument.md) can be sensitive to changes in [interest](../i/interest.md) rates, affecting its performance during periods of rising rates. ## Transition to Bloomberg Barclays Indices -The transition from the Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index.md) to the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index.md) involved several changes aimed at improving [transparency](../t/transparency.md) and methodology. One of the critical updates was increasing the frequency of [rebalancing](../r/rebalancing.md) and incorporating more precise pricing data. +The transition from the Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) to the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) involved several changes aimed at improving [transparency](../t/transparency.md) and methodology. One of the critical updates was increasing the frequency of [rebalancing](../r/rebalancing.md) and incorporating more precise pricing data. ## Technology and Platforms -Several platforms [offer](../o/offer.md) tools for analyzing and trading based on the Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index.md): +Several platforms [offer](../o/offer.md) tools for analyzing and trading based on the Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md): - **[Bloomberg Terminal](../b/bloomberg_terminal.md)**: Provides comprehensive [data analytics](../d/data_analytics.md) and trading functionalities. - **BlackRock Aladdin**: An end-to-end [portfolio management](../p/par.md) platform that facilitates [risk management](../r/risk_management.md) and trading. @@ -98,6 +98,6 @@ For more details on [Bloomberg](../b/bloomberg.md) Barclays Indices: [Bloomberg ## Conclusion -The Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index.md) has evolved significantly since its inception but remains a cornerstone for fixed-[income](../i/income.md) investors. It provides a comprehensive and reliable [benchmark](../b/benchmark.md) for the U.S. [bond market](../b/bond_market.md), which is invaluable for both passive and [active portfolio management](../a/active_portfolio_management.md) strategies. Its role in algo-trading is equally critical, [offering](../o/offering.md) a foundation for developing, executing, and benchmarking [trading strategies](../t/trading_strategies.md). The transition to the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index.md) represents the ongoing evolution and refinement of this important [financial instrument](../f/financial_instrument.md). +The Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) has evolved significantly since its inception but remains a cornerstone for fixed-[income](../i/income.md) investors. It provides a comprehensive and reliable [benchmark](../b/benchmark.md) for the U.S. [bond market](../b/bond_market.md), which is invaluable for both passive and [active portfolio management](../a/active_portfolio_management.md) strategies. Its role in algo-trading is equally critical, [offering](../o/offering.md) a foundation for developing, executing, and benchmarking [trading strategies](../t/trading_strategies.md). The transition to the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) represents the ongoing evolution and refinement of this important [financial instrument](../f/financial_instrument.md). -The Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index.md) [will](../w/will.md) likely continue to be a foundational element for the foreseeable future, influencing investment decisions, algorithmic strategies, and [portfolio management](../p/par.md) techniques. \ No newline at end of file +The Lehman Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) [will](../w/will.md) likely continue to be a foundational element for the foreseeable future, influencing investment decisions, algorithmic strategies, and [portfolio management](../p/par.md) techniques. \ No newline at end of file diff --git a/en/pedia/l/less-developed_countries_(ldc).md b/en/pedia/l/less-developed_countries_(ldc).md index f0f9f580..a1e95881 100644 --- a/en/pedia/l/less-developed_countries_(ldc).md +++ b/en/pedia/l/less-developed_countries_(ldc).md @@ -7,8 +7,8 @@ Less-Developed Countries (LDCs) represent a category of nations that exhibit the LDCs are characterized by their low gross national [income](../i/income.md) (GNI) [per capita](../p/per_capita.md), weak human assets, and high economic vulnerability. The United Nations (UN) employs specific criteria to designate a country as an LDC, including: - **[Income](../i/income.md) Criterion**: A three-year average estimate of GNI [per capita](../p/per_capita.md) is used. Countries with a GNI [per capita](../p/per_capita.md) below a certain threshold (e.g., $1,046 for inclusion) are considered for this category. -- **Human Assets [Index](../i/index.md) (HAI)**: This [index](../i/index.md) assesses the level of development in terms of health, education, and nutrition indicators. -- **Economic Vulnerability [Index](../i/index.md) (EVI)**: This [index](../i/index.md) measures the structural vulnerability of countries to economic and environmental shocks. +- **Human Assets [Index](../i/index_instrument.md) (HAI)**: This [index](../i/index_instrument.md) assesses the level of development in terms of health, education, and nutrition indicators. +- **Economic Vulnerability [Index](../i/index_instrument.md) (EVI)**: This [index](../i/index_instrument.md) measures the structural vulnerability of countries to economic and environmental shocks. As of 2021, there are 46 countries classified as LDCs, predominantly located in Africa and Asia. diff --git a/en/pedia/l/level_death.md b/en/pedia/l/level_death.md index 375eb620..e3a48e0e 100644 --- a/en/pedia/l/level_death.md +++ b/en/pedia/l/level_death.md @@ -59,7 +59,7 @@ Several [technical indicators](../t/technical_indicator.md) assist in identifyin - **[Bollinger Bands](../b/bollinger_band.md)**: Highlight [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, helping identify potential [reversal](../r/reversal.md) points. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Indicates whether a stock is [overbought](../o/overbought.md) or [oversold](../o/oversold.md), potentially identifying [support and resistance](../s/support_and_resistance.md) levels. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Indicates whether a stock is [overbought](../o/overbought.md) or [oversold](../o/oversold.md), potentially identifying [support and resistance](../s/support_and_resistance.md) levels. ### Trendlines diff --git a/en/pedia/l/leverage_analysis.md b/en/pedia/l/leverage_analysis.md index 957187fe..21b783c5 100644 --- a/en/pedia/l/leverage_analysis.md +++ b/en/pedia/l/leverage_analysis.md @@ -30,7 +30,7 @@ In [algorithmic trading](../a/algorithmic_trading.md), we primarily focus on fin [Derivatives](../d/derivatives.md) like [options](../o/options.md) and [futures](../f/futures.md) also [offer](../o/offer.md) [leverage](../l/leverage.md). These are financial contracts whose [value](../v/value.md) is derived from the performance of [underlying](../u/underlying.md) assets. Traders can enter large positions with a relatively small amount of [capital](../c/capital.md). #### Leveraged ETFs -Leveraged [Exchange](../e/exchange.md)-Traded Funds (ETFs) use financial [derivatives](../d/derivatives.md) and [debt](../d/debt.md) to amplify the returns of an [underlying](../u/underlying.md) [index](../i/index.md). These are commonly used by traders aiming to exploit short-term [market](../m/market.md) movements. +Leveraged [Exchange](../e/exchange.md)-Traded Funds (ETFs) use financial [derivatives](../d/derivatives.md) and [debt](../d/debt.md) to amplify the returns of an [underlying](../u/underlying.md) [index](../i/index_instrument.md). These are commonly used by traders aiming to exploit short-term [market](../m/market.md) movements. ### Leverage in Algorithmic Trading diff --git a/en/pedia/l/leveraged_etf.md b/en/pedia/l/leveraged_etf.md index f7114b07..b5b8957e 100644 --- a/en/pedia/l/leveraged_etf.md +++ b/en/pedia/l/leveraged_etf.md @@ -1,43 +1,43 @@ # Leveraged ETF -A Leveraged [Exchange](../e/exchange.md)-Traded [Fund](../f/fund.md) (ETF) is a financial [derivative](../d/derivative.md) designed to amplify returns on an [underlying](../u/underlying.md) [index](../i/index.md). These financial instruments are tailored to generate multiples of the performance of a [benchmark](../b/benchmark.md) [index](../i/index.md), typically on a daily [basis](../b/basis.md). [Leveraged ETFs](../l/leveraged_etfs.md) can be highly attractive to traders and investors seeking magnified exposure to the [equity](../e/equity.md) or [commodity](../c/commodity.md) markets, but they also come with substantial risks. +A Leveraged [Exchange](../e/exchange.md)-Traded [Fund](../f/fund.md) (ETF) is a financial [derivative](../d/derivative.md) designed to amplify returns on an [underlying](../u/underlying.md) [index](../i/index_instrument.md). These financial instruments are tailored to generate multiples of the performance of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), typically on a daily [basis](../b/basis.md). [Leveraged ETFs](../l/leveraged_etfs.md) can be highly attractive to traders and investors seeking magnified exposure to the [equity](../e/equity.md) or [commodity](../c/commodity.md) markets, but they also come with substantial risks. ## Understanding Leveraged ETFs -[Leveraged ETFs](../l/leveraged_etfs.md) use [financial engineering](../f/financial_engineering.md) techniques such as [futures contracts](../f/futures_contracts.md), [swap](../s/swap.md) agreements, and [options](../o/options.md) to achieve their goals. The ETF providers employ strategies that aim to [return](../r/return.md) a [multiple](../m/multiple.md) (e.g., 2x or 3x) of the [index](../i/index.md)'s [return](../r/return.md), both in gains and losses for a given period, usually a single trading day. +[Leveraged ETFs](../l/leveraged_etfs.md) use [financial engineering](../f/financial_engineering.md) techniques such as [futures contracts](../f/futures_contracts.md), [swap](../s/swap.md) agreements, and [options](../o/options.md) to achieve their goals. The ETF providers employ strategies that aim to [return](../r/return.md) a [multiple](../m/multiple.md) (e.g., 2x or 3x) of the [index](../i/index_instrument.md)'s [return](../r/return.md), both in gains and losses for a given period, usually a single trading day. ### Mechanics of Leveraged ETFs -1. **[Derivatives](../d/derivatives.md) Usage**: [Leveraged ETFs](../l/leveraged_etfs.md) employ [derivatives](../d/derivatives.md) to achieve their performance goals. Common [derivatives](../d/derivatives.md) include [futures](../f/futures.md), [options](../o/options.md), and swaps. For example, if a leveraged ETF is designed to [return](../r/return.md) 3x the daily performance of the S&P 500, it might use [futures contracts](../f/futures_contracts.md) that follow the S&P 500 [index](../i/index.md). +1. **[Derivatives](../d/derivatives.md) Usage**: [Leveraged ETFs](../l/leveraged_etfs.md) employ [derivatives](../d/derivatives.md) to achieve their performance goals. Common [derivatives](../d/derivatives.md) include [futures](../f/futures.md), [options](../o/options.md), and swaps. For example, if a leveraged ETF is designed to [return](../r/return.md) 3x the daily performance of the S&P 500, it might use [futures contracts](../f/futures_contracts.md) that follow the S&P 500 [index](../i/index_instrument.md). 2. **Daily [Rebalancing](../r/rebalancing.md)**: One of the defining features of [leveraged ETFs](../l/leveraged_etfs.md) is daily [rebalancing](../r/rebalancing.md). The [fund](../f/fund.md) resets its [leverage ratio](../l/leverage_ratio.md) to the original target (e.g., 2x or 3x) at the end of each day. This daily reset is necessary to maintain the intended [leverage](../l/leverage.md) [factor](../f/factor.md). However, it also leads to a phenomenon known as "decay" in highly volatile markets, which can erode returns over time. -3. **Borrowing and [Interest](../i/interest.md) Costs**: [Leveraged ETFs](../l/leveraged_etfs.md) borrow [money](../m/money.md) to increase their exposure to the [index](../i/index.md). This can come with significant [interest](../i/interest.md) costs. For instance, if the [underlying](../u/underlying.md) [benchmark](../b/benchmark.md) rises by 1%, a 2x leveraged ETF would rise by approximately 2%, but this is before [accounting](../a/accounting.md) for borrowing costs. +3. **Borrowing and [Interest](../i/interest.md) Costs**: [Leveraged ETFs](../l/leveraged_etfs.md) borrow [money](../m/money.md) to increase their exposure to the [index](../i/index_instrument.md). This can come with significant [interest](../i/interest.md) costs. For instance, if the [underlying](../u/underlying.md) [benchmark](../b/benchmark.md) rises by 1%, a 2x leveraged ETF would rise by approximately 2%, but this is before [accounting](../a/accounting.md) for borrowing costs. ## Types of Leveraged ETFs [Leveraged ETFs](../l/leveraged_etfs.md) can be categorized based on various criteria including the type of [leverage](../l/leverage.md) (inverse or not), the [asset class](../a/asset_class.md) they track, and their specific [leverage](../l/leverage.md) [multiple](../m/multiple.md). Here are the most common types: -1. **Bullish [Leveraged ETFs](../l/leveraged_etfs.md)**: These aim to deliver multiples of the daily performance of the [underlying](../u/underlying.md) [index](../i/index.md) in the same direction. For example, a 2x leveraged S&P 500 ETF should deliver 2% returns if the S&P 500 gains 1%. +1. **Bullish [Leveraged ETFs](../l/leveraged_etfs.md)**: These aim to deliver multiples of the daily performance of the [underlying](../u/underlying.md) [index](../i/index_instrument.md) in the same direction. For example, a 2x leveraged S&P 500 ETF should deliver 2% returns if the S&P 500 gains 1%. 2. **Bearish [Leveraged ETFs](../l/leveraged_etfs.md) ([Inverse ETFs](../i/inverse_etfs.md))**: These aim to deliver the inverse [multiple](../m/multiple.md) of the daily performance. For example, a -2x leveraged S&P 500 ETF would [gain](../g/gain.md) 2% if the S&P 500 falls by 1%. -3. **Sector-Specific [Leveraged ETFs](../l/leveraged_etfs.md)**: These focus on specific sectors or industries such as technology, energy, or healthcare, amplifying the respective sector [index](../i/index.md)’s returns. +3. **Sector-Specific [Leveraged ETFs](../l/leveraged_etfs.md)**: These focus on specific sectors or industries such as technology, energy, or healthcare, amplifying the respective sector [index](../i/index_instrument.md)’s returns. 4. **[Commodity](../c/commodity.md) [Leveraged ETFs](../l/leveraged_etfs.md)**: These track [commodity](../c/commodity.md) prices, amplifying returns of benchmarks like gold, oil, or natural gas indices. ### Examples of Leveraged ETFs - **ProShares Ultra S&P500 (SSO)**: Aims to deliver twice (2x) the daily performance of the S&P 500. -- **Direxion Daily Financial [Bull](../b/bull.md) 3X [Shares](../s/shares.md) (FAS)**: Seeks to deliver 300% (3x) of the daily performance of the Russell 1000 Financial Services [Index](../i/index.md). -- **ProShares UltraShort QQQ (QID)**: Aims to deliver twice the inverse (-2x) of the daily performance of the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md). -- **Direxion Daily Gold Miners [Index](../i/index.md) [Bull](../b/bull.md) 3X [Shares](../s/shares.md) (NUGT)**: Seeks to deliver 300% (3x) the daily performance of the [NYSE Arca](../n/nyse_arca.md) Gold Miners [Index](../i/index.md). +- **Direxion Daily Financial [Bull](../b/bull.md) 3X [Shares](../s/shares.md) (FAS)**: Seeks to deliver 300% (3x) of the daily performance of the Russell 1000 Financial Services [Index](../i/index_instrument.md). +- **ProShares UltraShort QQQ (QID)**: Aims to deliver twice the inverse (-2x) of the daily performance of the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md). +- **Direxion Daily Gold Miners [Index](../i/index_instrument.md) [Bull](../b/bull.md) 3X [Shares](../s/shares.md) (NUGT)**: Seeks to deliver 300% (3x) the daily performance of the [NYSE Arca](../n/nyse_arca.md) Gold Miners [Index](../i/index_instrument.md). ## Risks Associated with Leveraged ETFs While [leveraged ETFs](../l/leveraged_etfs.md) [offer](../o/offer.md) the potential for amplified gains, they also come laden with significant risks, which can sometimes outweigh the potential rewards. Here are some of the key risks: -1. **[Volatility](../v/volatility.md) Decay**: Due to daily [rebalancing](../r/rebalancing.md), the returns of [leveraged ETFs](../l/leveraged_etfs.md) can deviate significantly from the [multiple](../m/multiple.md) of the [index](../i/index.md)'s [return](../r/return.md) over longer periods. This is particularly pronounced in volatile markets where large daily gains and losses can erode returns, a phenomenon often referred to as "[volatility](../v/volatility.md) decay" or "[compounding](../c/compounding.md) [risk](../r/risk.md)." +1. **[Volatility](../v/volatility.md) Decay**: Due to daily [rebalancing](../r/rebalancing.md), the returns of [leveraged ETFs](../l/leveraged_etfs.md) can deviate significantly from the [multiple](../m/multiple.md) of the [index](../i/index_instrument.md)'s [return](../r/return.md) over longer periods. This is particularly pronounced in volatile markets where large daily gains and losses can erode returns, a phenomenon often referred to as "[volatility](../v/volatility.md) decay" or "[compounding](../c/compounding.md) [risk](../r/risk.md)." 2. **High [Expense](../e/expense.md) Ratios**: [Leveraged ETFs](../l/leveraged_etfs.md) typically have higher [expense](../e/expense.md) ratios compared to traditional ETFs due to the costs associated with using [derivatives](../d/derivatives.md) and [rebalancing](../r/rebalancing.md) the portfolio daily. @@ -45,7 +45,7 @@ While [leveraged ETFs](../l/leveraged_etfs.md) [offer](../o/offer.md) the potent 4. **Complexity and Lack of [Transparency](../t/transparency.md)**: The complexity of [leveraged ETFs](../l/leveraged_etfs.md) means that they are not suitable for all investors. Understanding the mechanics and risks is crucial before [investing](../i/investing.md). -5. **[Risk](../r/risk.md) of Total Loss**: In highly adverse [market](../m/market.md) conditions, investors in [leveraged ETFs](../l/leveraged_etfs.md) could potentially lose their entire investment. For instance, a 3x leveraged ETF could face massive losses if the [underlying](../u/underlying.md) [index](../i/index.md) moves sharply against the [leverage](../l/leverage.md). +5. **[Risk](../r/risk.md) of Total Loss**: In highly adverse [market](../m/market.md) conditions, investors in [leveraged ETFs](../l/leveraged_etfs.md) could potentially lose their entire investment. For instance, a 3x leveraged ETF could face massive losses if the [underlying](../u/underlying.md) [index](../i/index_instrument.md) moves sharply against the [leverage](../l/leverage.md). ## Leveraged ETFs in Algorithmic Trading @@ -57,7 +57,7 @@ While [leveraged ETFs](../l/leveraged_etfs.md) [offer](../o/offer.md) the potent 2. **[Mean Reversion](../m/mean_reversion.md)**: This strategy is based on the principle that [asset](../a/asset.md) prices [will](../w/will.md) revert to their historical mean. Algorithms can [trade](../t/trade.md) [leveraged ETFs](../l/leveraged_etfs.md) when they detect that the price has deviated significantly from its mean. -3. **[Arbitrage](../a/arbitrage.md)**: [Leveraged ETFs](../l/leveraged_etfs.md) can be used in [arbitrage](../a/arbitrage.md) strategies, where algorithms exploit price discrepancies between the ETF and its [underlying](../u/underlying.md) [index](../i/index.md) or between different [leveraged ETFs](../l/leveraged_etfs.md). +3. **[Arbitrage](../a/arbitrage.md)**: [Leveraged ETFs](../l/leveraged_etfs.md) can be used in [arbitrage](../a/arbitrage.md) strategies, where algorithms exploit price discrepancies between the ETF and its [underlying](../u/underlying.md) [index](../i/index_instrument.md) or between different [leveraged ETFs](../l/leveraged_etfs.md). 4. **[Pairs Trading](../p/pairs_trading.md)**: In this strategy, algorithms go long on one leveraged ETF and short on a related ETF, aiming to [profit](../p/profit.md) from the relative performance of the two. diff --git a/en/pedia/l/leveraged_etfs.md b/en/pedia/l/leveraged_etfs.md index 90cb4482..9f7f22b6 100644 --- a/en/pedia/l/leveraged_etfs.md +++ b/en/pedia/l/leveraged_etfs.md @@ -2,7 +2,7 @@ #### Overview -Leveraged [Exchange](../e/exchange.md)-Traded Funds (ETFs) are a type of [investment fund](../i/investment_fund.md) that seek to deliver multiples of the performance of the [index](../i/index.md) or [benchmark](../b/benchmark.md) they track. For instance, a 2x [leveraged ETF](../l/leveraged_etf.md) aims to deliver twice the daily performance of its [underlying](../u/underlying.md) [index](../i/index.md). In contrast, a -2x [leveraged ETF](../l/leveraged_etf.md) aims to deliver twice the inverse of the daily performance of its [index](../i/index.md). These financial instruments are ideal for [short-term trading](../s/short-term_trading.md) strategies and are popular among those who implement [algorithmic trading](../a/algorithmic_trading.md) (algotrading) methodologies to exploit short-term trends and [volatility](../v/volatility.md). +Leveraged [Exchange](../e/exchange.md)-Traded Funds (ETFs) are a type of [investment fund](../i/investment_fund.md) that seek to deliver multiples of the performance of the [index](../i/index_instrument.md) or [benchmark](../b/benchmark.md) they track. For instance, a 2x [leveraged ETF](../l/leveraged_etf.md) aims to deliver twice the daily performance of its [underlying](../u/underlying.md) [index](../i/index_instrument.md). In contrast, a -2x [leveraged ETF](../l/leveraged_etf.md) aims to deliver twice the inverse of the daily performance of its [index](../i/index_instrument.md). These financial instruments are ideal for [short-term trading](../s/short-term_trading.md) strategies and are popular among those who implement [algorithmic trading](../a/algorithmic_trading.md) (algotrading) methodologies to exploit short-term trends and [volatility](../v/volatility.md). #### Structure @@ -10,22 +10,22 @@ Leveraged ETFs use a combination of [derivatives](../d/derivatives.md), includin #### Daily Rebalancing and Compounding Effect -One of the critical characteristics of leveraged ETFs is their daily [rebalancing](../r/rebalancing.md). This means that these ETFs are designed to achieve their target [multiple](../m/multiple.md) returns on a daily [basis](../b/basis.md), not over longer periods. The daily [rebalancing](../r/rebalancing.md), coupled with [compounding](../c/compounding.md) effects, means that the long-term performance of leveraged ETFs can deviate significantly from their intended [leverage](../l/leverage.md) [multiple](../m/multiple.md) of the [underlying](../u/underlying.md) [index](../i/index.md). This effect is particularly pronounced in volatile markets. +One of the critical characteristics of leveraged ETFs is their daily [rebalancing](../r/rebalancing.md). This means that these ETFs are designed to achieve their target [multiple](../m/multiple.md) returns on a daily [basis](../b/basis.md), not over longer periods. The daily [rebalancing](../r/rebalancing.md), coupled with [compounding](../c/compounding.md) effects, means that the long-term performance of leveraged ETFs can deviate significantly from their intended [leverage](../l/leverage.md) [multiple](../m/multiple.md) of the [underlying](../u/underlying.md) [index](../i/index_instrument.md). This effect is particularly pronounced in volatile markets. #### Example of Compounding Effect -Consider a 2x [leveraged ETF](../l/leveraged_etf.md) that tracks an [index](../i/index.md). On Day 1, if the [index](../i/index.md) rises by 1%, the ETF would be expected to rise by 2%. However, if on Day 2, the [index](../i/index.md) falls by 1%, the ETF would fall by 2%. Over [multiple](../m/multiple.md) days, where the [index](../i/index.md) has ups and downs, the [leveraged ETF](../l/leveraged_etf.md)'s performance can diverge significantly due to the effects of daily [rebalancing](../r/rebalancing.md) and [compounding](../c/compounding.md). +Consider a 2x [leveraged ETF](../l/leveraged_etf.md) that tracks an [index](../i/index_instrument.md). On Day 1, if the [index](../i/index_instrument.md) rises by 1%, the ETF would be expected to rise by 2%. However, if on Day 2, the [index](../i/index_instrument.md) falls by 1%, the ETF would fall by 2%. Over [multiple](../m/multiple.md) days, where the [index](../i/index_instrument.md) has ups and downs, the [leveraged ETF](../l/leveraged_etf.md)'s performance can diverge significantly due to the effects of daily [rebalancing](../r/rebalancing.md) and [compounding](../c/compounding.md). #### Types of Leveraged ETFs Leveraged ETFs come in various flavors, including: -- **2x or 3x [Bull](../b/bull.md) ETFs**: Seek to achieve twice or three times the daily performance of the [underlying](../u/underlying.md) [index](../i/index.md). -- **-2x or -3x Bear ETFs**: Seek to achieve twice or three times the inverse of the daily performance of the [underlying](../u/underlying.md) [index](../i/index.md). +- **2x or 3x [Bull](../b/bull.md) ETFs**: Seek to achieve twice or three times the daily performance of the [underlying](../u/underlying.md) [index](../i/index_instrument.md). +- **-2x or -3x Bear ETFs**: Seek to achieve twice or three times the inverse of the daily performance of the [underlying](../u/underlying.md) [index](../i/index_instrument.md). #### Uses in Algorithmic Trading -Algorithmic traders frequently use leveraged ETFs for [short-term trading](../s/short-term_trading.md) strategies due to their ability to [capitalize](../c/capitalize.md) quickly on [market](../m/market.md) movements. [High-frequency trading algorithms](../h/high-frequency_trading_algorithms.md) can exploit the [leverage](../l/leverage.md) and [liquidity](../l/liquidity.md) of these funds to achieve superior returns on smaller movements in the [underlying](../u/underlying.md) [index](../i/index.md). +Algorithmic traders frequently use leveraged ETFs for [short-term trading](../s/short-term_trading.md) strategies due to their ability to [capitalize](../c/capitalize.md) quickly on [market](../m/market.md) movements. [High-frequency trading algorithms](../h/high-frequency_trading_algorithms.md) can exploit the [leverage](../l/leverage.md) and [liquidity](../l/liquidity.md) of these funds to achieve superior returns on smaller movements in the [underlying](../u/underlying.md) [index](../i/index_instrument.md). Some common [algorithmic trading](../a/algorithmic_trading.md) strategies involving leveraged ETFs include: @@ -49,9 +49,9 @@ The Securities and [Exchange](../e/exchange.md) [Commission](../c/commission.md) Some of the well-known leveraged ETFs include: -- **ProShares UltraPro QQQ (TQQQ)**: A 3x [leveraged ETF](../l/leveraged_etf.md) that aims to deliver three times the daily performance of the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md). -- **Direxion Daily Financial [Bull](../b/bull.md) 3X [Shares](../s/shares.md) (FAS)**: A 3x [leveraged ETF](../l/leveraged_etf.md) that aims to achieve three times the daily performance of the Russell 1000 Financial Services [Index](../i/index.md). -- **ProShares UltraShort S&P500 (SDS)**: A -2x [leveraged ETF](../l/leveraged_etf.md) that seeks to deliver twice the inverse daily performance of the S&P 500 [Index](../i/index.md). +- **ProShares UltraPro QQQ (TQQQ)**: A 3x [leveraged ETF](../l/leveraged_etf.md) that aims to deliver three times the daily performance of the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md). +- **Direxion Daily Financial [Bull](../b/bull.md) 3X [Shares](../s/shares.md) (FAS)**: A 3x [leveraged ETF](../l/leveraged_etf.md) that aims to achieve three times the daily performance of the Russell 1000 Financial Services [Index](../i/index_instrument.md). +- **ProShares UltraShort S&P500 (SDS)**: A -2x [leveraged ETF](../l/leveraged_etf.md) that seeks to deliver twice the inverse daily performance of the S&P 500 [Index](../i/index_instrument.md). #### Key Players in Leveraged ETF Space diff --git a/en/pedia/l/leveraged_loan.md b/en/pedia/l/leveraged_loan.md index 146502cc..fe42f509 100644 --- a/en/pedia/l/leveraged_loan.md +++ b/en/pedia/l/leveraged_loan.md @@ -70,10 +70,10 @@ The leveraged [loan](../l/loan.md) [market](../m/market.md) is a crucial part of Several indices track the performance of the leveraged [loan](../l/loan.md) [market](../m/market.md), providing benchmarks for investors: -1. **S&P/LSTA U.S. Leveraged [Loan](../l/loan.md) 100 [Index](../i/index.md)**: Tracks the largest and most [liquid](../l/liquid.md) leveraged loans in the U.S. [market](../m/market.md). +1. **S&P/LSTA U.S. Leveraged [Loan](../l/loan.md) 100 [Index](../i/index_instrument.md)**: Tracks the largest and most [liquid](../l/liquid.md) leveraged loans in the U.S. [market](../m/market.md). - More information: [S&P Leveraged Loan Index](https://www.spglobal.com/spdji/en/indices/fixed-income/sp-lsta-us-leveraged-loan-100-index/) -2. **[Credit](../c/credit.md) Suisse Leveraged [Loan](../l/loan.md) [Index](../i/index.md)**: A broad measure of the performance of the leveraged [loan](../l/loan.md) [market](../m/market.md). +2. **[Credit](../c/credit.md) Suisse Leveraged [Loan](../l/loan.md) [Index](../i/index_instrument.md)**: A broad measure of the performance of the leveraged [loan](../l/loan.md) [market](../m/market.md). - More information: [Credit Suisse Leveraged Loan Index](https://www.credit-suisse.com) ## Regulatory Environment diff --git a/en/pedia/l/leveraged_loan_index_(lli).md b/en/pedia/l/leveraged_loan_index_(lli).md index a94bf7a7..3fe3b79f 100644 --- a/en/pedia/l/leveraged_loan_index_(lli).md +++ b/en/pedia/l/leveraged_loan_index_(lli).md @@ -1,6 +1,6 @@ # Leveraged Loan Index (LLI) -The [Leveraged Loan](../l/leveraged_loan.md) [Index](../i/index.md) (LLI) is an essential financial tool used to gauge the performance of the [leveraged loan](../l/leveraged_loan.md) [market](../m/market.md). This [index](../i/index.md) tracks the [market](../m/market.md) for leveraged loans, which are a type of [debt](../d/debt.md) issued to companies that already have significant amounts of [debt](../d/debt.md). Leveraged loans are typically used to [finance](../f/finance.md) mergers and acquisitions, refinancing existing [debt](../d/debt.md), and other significant [capital](../c/capital.md) expenditures. These loans are structured, arranged, and syndicated by financial institutions and then sold to institutional investors. The [Leveraged Loan](../l/leveraged_loan.md) [Index](../i/index.md) plays a critical role in helping investors understand the performance, [risk](../r/risk.md), and [return](../r/return.md) characteristics of the [leveraged loan](../l/leveraged_loan.md) [market](../m/market.md). +The [Leveraged Loan](../l/leveraged_loan.md) [Index](../i/index_instrument.md) (LLI) is an essential financial tool used to gauge the performance of the [leveraged loan](../l/leveraged_loan.md) [market](../m/market.md). This [index](../i/index_instrument.md) tracks the [market](../m/market.md) for leveraged loans, which are a type of [debt](../d/debt.md) issued to companies that already have significant amounts of [debt](../d/debt.md). Leveraged loans are typically used to [finance](../f/finance.md) mergers and acquisitions, refinancing existing [debt](../d/debt.md), and other significant [capital](../c/capital.md) expenditures. These loans are structured, arranged, and syndicated by financial institutions and then sold to institutional investors. The [Leveraged Loan](../l/leveraged_loan.md) [Index](../i/index_instrument.md) plays a critical role in helping investors understand the performance, [risk](../r/risk.md), and [return](../r/return.md) characteristics of the [leveraged loan](../l/leveraged_loan.md) [market](../m/market.md). ## Overview of Leveraged Loans @@ -20,11 +20,11 @@ Leveraged loans are a subset of the broader [loan](../l/loan.md) [market](../m/m The LLI serves several vital functions for investors, financial analysts, and policymakers: -- **Performance Tracking**: The [index](../i/index.md) provides a [benchmark](../b/benchmark.md) for the performance of the [leveraged loan](../l/leveraged_loan.md) [market](../m/market.md), allowing investors to compare their investment returns to a standardized measure. +- **Performance Tracking**: The [index](../i/index_instrument.md) provides a [benchmark](../b/benchmark.md) for the performance of the [leveraged loan](../l/leveraged_loan.md) [market](../m/market.md), allowing investors to compare their investment returns to a standardized measure. - **[Risk](../r/risk.md) Assessment**: By tracking various metrics such as [default](../d/default.md) rates, recovery rates, and [credit](../c/credit.md) [spreads](../s/spreads.md), the LLI helps investors assess the [risk](../r/risk.md) associated with leveraged loans. -- **[Market Sentiment](../m/market_sentiment.md)**: Movements in the [index](../i/index.md) can indicate broader [market sentiment](../m/market_sentiment.md) since leveraged loans are sensitive to changes in [economic conditions](../e/economic_conditions.md), [interest](../i/interest.md) rates, and corporate [earnings](../e/earnings.md). +- **[Market Sentiment](../m/market_sentiment.md)**: Movements in the [index](../i/index_instrument.md) can indicate broader [market sentiment](../m/market_sentiment.md) since leveraged loans are sensitive to changes in [economic conditions](../e/economic_conditions.md), [interest](../i/interest.md) rates, and corporate [earnings](../e/earnings.md). ## Key Components of the LLI @@ -38,17 +38,17 @@ The LLI is composed of various metrics and data points that provide a comprehens 4. **[Default](../d/default.md) and Recovery Rates**: Monitoring these rates helps investors understand the frequency and severity of defaults in the [leveraged loan](../l/leveraged_loan.md) [market](../m/market.md). -5. **[Market](../m/market.md) Size and Composition**: The [index](../i/index.md) also tracks the overall size of the [market](../m/market.md) and the [distribution](../d/distribution.md) of loans across different sectors and [credit](../c/credit.md) ratings. +5. **[Market](../m/market.md) Size and Composition**: The [index](../i/index_instrument.md) also tracks the overall size of the [market](../m/market.md) and the [distribution](../d/distribution.md) of loans across different sectors and [credit](../c/credit.md) ratings. ## Major Leveraged Loan Indices Several organizations provide [leveraged loan](../l/leveraged_loan.md) indices, each with its own methodology and focus. Some of the most widely recognized indices include: -- **S&P/LSTA [Leveraged Loan](../l/leveraged_loan.md) [Index](../i/index.md)**: Maintained by Standard & Poor's and the [Loan](../l/loan.md) Syndications and Trading Association (LSTA), this [index](../i/index.md) is one of the most comprehensive and widely used benchmarks for the U.S. [leveraged loan](../l/leveraged_loan.md) [market](../m/market.md). It includes a broad [range](../r/range.md) of loans, capturing various sectors and [credit](../c/credit.md) qualities. More details can be found on the [LSTA website](https://www.lsta.org/research/indices/). +- **S&P/LSTA [Leveraged Loan](../l/leveraged_loan.md) [Index](../i/index_instrument.md)**: Maintained by Standard & Poor's and the [Loan](../l/loan.md) Syndications and Trading Association (LSTA), this [index](../i/index_instrument.md) is one of the most comprehensive and widely used benchmarks for the U.S. [leveraged loan](../l/leveraged_loan.md) [market](../m/market.md). It includes a broad [range](../r/range.md) of loans, capturing various sectors and [credit](../c/credit.md) qualities. More details can be found on the [LSTA website](https://www.lsta.org/research/indices/). -- **[Credit](../c/credit.md) Suisse [Leveraged Loan](../l/leveraged_loan.md) [Index](../i/index.md)**: This [index](../i/index.md) offers insights into U.S. dollar-denominated leveraged loans drawn from a diverse [range](../r/range.md) of sectors. It is used to track the [market](../m/market.md)'s performance and includes features like [total return](../t/total_return.md) and spread measures. Further information is available on the [Credit Suisse website](https://www.credit-suisse.com/us/en.html). +- **[Credit](../c/credit.md) Suisse [Leveraged Loan](../l/leveraged_loan.md) [Index](../i/index_instrument.md)**: This [index](../i/index_instrument.md) offers insights into U.S. dollar-denominated leveraged loans drawn from a diverse [range](../r/range.md) of sectors. It is used to track the [market](../m/market.md)'s performance and includes features like [total return](../t/total_return.md) and spread measures. Further information is available on the [Credit Suisse website](https://www.credit-suisse.com/us/en.html). -- **[Morningstar](../m/morningstar.md) [Leveraged Loan](../l/leveraged_loan.md) [Index](../i/index.md)**: Managed by [Morningstar](../m/morningstar.md), this [index](../i/index.md) provides a broad view of the U.S. [leveraged loan](../l/leveraged_loan.md) [market](../m/market.md). It is designed to reflect the performance of various types of loans, including those with different maturities and [credit](../c/credit.md) qualities. More information can be found on the [Morningstar website](https://www.morningstar.com/). +- **[Morningstar](../m/morningstar.md) [Leveraged Loan](../l/leveraged_loan.md) [Index](../i/index_instrument.md)**: Managed by [Morningstar](../m/morningstar.md), this [index](../i/index_instrument.md) provides a broad view of the U.S. [leveraged loan](../l/leveraged_loan.md) [market](../m/market.md). It is designed to reflect the performance of various types of loans, including those with different maturities and [credit](../c/credit.md) qualities. More information can be found on the [Morningstar website](https://www.morningstar.com/). ## How the LLI is Used in Investment Strategies @@ -66,13 +66,13 @@ Investors [leverage](../l/leverage.md) the LLI in several ways to inform their i The performance of the LLI is influenced by a variety of factors, including [economic conditions](../e/economic_conditions.md), [interest rate](../i/interest_rate.md) environment, and corporate [credit](../c/credit.md) quality. Key [performance metrics](../p/performance_metrics.md) include: -1. **Price Movements**: Analyzing the average price changes of loans within the [index](../i/index.md) can provide insights into [market sentiment](../m/market_sentiment.md) and [investor](../i/investor.md) [demand](../d/demand.md). +1. **Price Movements**: Analyzing the average price changes of loans within the [index](../i/index_instrument.md) can provide insights into [market sentiment](../m/market_sentiment.md) and [investor](../i/investor.md) [demand](../d/demand.md). 2. **[Yield Spread](../y/yield_spread.md)**: Monitoring changes in the spread over LIBOR helps investors understand shifts in [risk](../r/risk.md) premiums demanded by the [market](../m/market.md). 3. **[Total Return](../t/total_return.md)**: This metric reflects the combined effect of [interest](../i/interest.md) [income](../i/income.md) and price changes, providing a comprehensive view of investment performance. -4. **[Sector Performance](../s/sector_performance.md)**: By examining the performance of different sectors within the [index](../i/index.md), investors can identify which industries are experiencing growth or facing challenges. +4. **[Sector Performance](../s/sector_performance.md)**: By examining the performance of different sectors within the [index](../i/index_instrument.md), investors can identify which industries are experiencing growth or facing challenges. ## Challenges and Considerations @@ -88,6 +88,6 @@ While the LLI is a valuable tool, investors should be aware of certain challenge ## Conclusion -The [Leveraged Loan](../l/leveraged_loan.md) [Index](../i/index.md) (LLI) is a crucial [benchmark](../b/benchmark.md) for tracking the performance of the [leveraged loan](../l/leveraged_loan.md) [market](../m/market.md). It provides investors with valuable insights into [market](../m/market.md) trends, [risk](../r/risk.md) characteristics, and [return](../r/return.md) potential. By understanding the components, [performance metrics](../p/performance_metrics.md), and applications of the LLI, investors can make more informed decisions and effectively navigate the complex world of leveraged loans. +The [Leveraged Loan](../l/leveraged_loan.md) [Index](../i/index_instrument.md) (LLI) is a crucial [benchmark](../b/benchmark.md) for tracking the performance of the [leveraged loan](../l/leveraged_loan.md) [market](../m/market.md). It provides investors with valuable insights into [market](../m/market.md) trends, [risk](../r/risk.md) characteristics, and [return](../r/return.md) potential. By understanding the components, [performance metrics](../p/performance_metrics.md), and applications of the LLI, investors can make more informed decisions and effectively navigate the complex world of leveraged loans. -For more detailed information, you can explore resources provided by the major [index](../i/index.md) publishers: [LSTA](https://www.lsta.org/research/indices/), [Credit Suisse](https://www.credit-suisse.com/us/en.html), and [Morningstar](https://www.morningstar.com/). \ No newline at end of file +For more detailed information, you can explore resources provided by the major [index](../i/index_instrument.md) publishers: [LSTA](https://www.lsta.org/research/indices/), [Credit Suisse](https://www.credit-suisse.com/us/en.html), and [Morningstar](https://www.morningstar.com/). \ No newline at end of file diff --git a/en/pedia/l/leveraged_mutual_funds.md b/en/pedia/l/leveraged_mutual_funds.md index 42eaff64..1e1b3add 100644 --- a/en/pedia/l/leveraged_mutual_funds.md +++ b/en/pedia/l/leveraged_mutual_funds.md @@ -1,15 +1,15 @@ # Leveraged Mutual Funds -Leveraged mutual funds are a type of [investment vehicle](../i/investment_vehicle.md) that aims to deliver multiples of the performance of the [index](../i/index.md) or [benchmark](../b/benchmark.md) they track. They are designed to provide enhanced returns by using financial [derivatives](../d/derivatives.md) and [debt](../d/debt.md) to amplify the daily gains or losses of the [underlying](../u/underlying.md) [index](../i/index.md). Unlike traditional mutual funds that aim for moderate and steady growth over a long period, leveraged mutual funds seek to magnify the short-term movements of [index](../i/index.md) prices, making them suitable for traders and investors with a higher [risk tolerance](../r/risk_tolerance.md) and a short-term [investment horizon](../i/investment_horizon.md). +Leveraged mutual funds are a type of [investment vehicle](../i/investment_vehicle.md) that aims to deliver multiples of the performance of the [index](../i/index_instrument.md) or [benchmark](../b/benchmark.md) they track. They are designed to provide enhanced returns by using financial [derivatives](../d/derivatives.md) and [debt](../d/debt.md) to amplify the daily gains or losses of the [underlying](../u/underlying.md) [index](../i/index_instrument.md). Unlike traditional mutual funds that aim for moderate and steady growth over a long period, leveraged mutual funds seek to magnify the short-term movements of [index](../i/index_instrument.md) prices, making them suitable for traders and investors with a higher [risk tolerance](../r/risk_tolerance.md) and a short-term [investment horizon](../i/investment_horizon.md). ### How Leveraged Mutual Funds Work -Leveraged mutual funds typically employ sophisticated financial instruments such as [options](../o/options.md), [futures contracts](../f/futures_contracts.md), and swaps to achieve their objectives. These instruments allow the funds to [gain](../g/gain.md) more exposure to an [index](../i/index.md) than would be possible by merely [investing](../i/investing.md) in the [underlying](../u/underlying.md) securities alone. Let's consider a leveraged [mutual fund](../m/mutual_fund.md) that aims to deliver twice (2x) the daily performance of the S&P 500 [Index](../i/index.md). If the S&P 500 rises by 1% in a day, the leveraged [mutual fund](../m/mutual_fund.md) would aim to rise by approximately 2%. Conversely, if the S&P 500 falls by 1%, the leveraged [mutual fund](../m/mutual_fund.md) would aim to fall by approximately 2%. +Leveraged mutual funds typically employ sophisticated financial instruments such as [options](../o/options.md), [futures contracts](../f/futures_contracts.md), and swaps to achieve their objectives. These instruments allow the funds to [gain](../g/gain.md) more exposure to an [index](../i/index_instrument.md) than would be possible by merely [investing](../i/investing.md) in the [underlying](../u/underlying.md) securities alone. Let's consider a leveraged [mutual fund](../m/mutual_fund.md) that aims to deliver twice (2x) the daily performance of the S&P 500 [Index](../i/index_instrument.md). If the S&P 500 rises by 1% in a day, the leveraged [mutual fund](../m/mutual_fund.md) would aim to rise by approximately 2%. Conversely, if the S&P 500 falls by 1%, the leveraged [mutual fund](../m/mutual_fund.md) would aim to fall by approximately 2%. #### Key Characteristics: -1. **[Leverage Ratios](../l/leverage_ratios.md)**: Leveraged mutual funds are often designed with specific [leverage ratios](../l/leverage_ratios.md) such as 2x or 3x, indicating the [fund](../f/fund.md)'s goal to achieve two or three times the daily performance of the [benchmark](../b/benchmark.md) [index](../i/index.md) respectively. -2. **Daily [Rebalancing](../r/rebalancing.md)**: These funds typically rebalance their portfolios daily to maintain a consistent [leverage ratio](../l/leverage_ratio.md). This [rebalancing](../r/rebalancing.md) process involves adjusting the [fund](../f/fund.md)'s [holdings](../h/holdings.md) to ensure that the exposure to the [benchmark](../b/benchmark.md) [index](../i/index.md) adheres to the specified [leverage ratio](../l/leverage_ratio.md). -3. **Compound Effect**: The daily [rebalancing](../r/rebalancing.md) and the fact that returns are compounded magnify the differences between the leveraged [fund](../f/fund.md)'s performance and the [underlying](../u/underlying.md) [index](../i/index.md) over longer periods. This can result in significant deviations from the expected [multiple](../m/multiple.md) over time due to daily fluctuations in [value](../v/value.md). +1. **[Leverage Ratios](../l/leverage_ratios.md)**: Leveraged mutual funds are often designed with specific [leverage ratios](../l/leverage_ratios.md) such as 2x or 3x, indicating the [fund](../f/fund.md)'s goal to achieve two or three times the daily performance of the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) respectively. +2. **Daily [Rebalancing](../r/rebalancing.md)**: These funds typically rebalance their portfolios daily to maintain a consistent [leverage ratio](../l/leverage_ratio.md). This [rebalancing](../r/rebalancing.md) process involves adjusting the [fund](../f/fund.md)'s [holdings](../h/holdings.md) to ensure that the exposure to the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) adheres to the specified [leverage ratio](../l/leverage_ratio.md). +3. **Compound Effect**: The daily [rebalancing](../r/rebalancing.md) and the fact that returns are compounded magnify the differences between the leveraged [fund](../f/fund.md)'s performance and the [underlying](../u/underlying.md) [index](../i/index_instrument.md) over longer periods. This can result in significant deviations from the expected [multiple](../m/multiple.md) over time due to daily fluctuations in [value](../v/value.md). 4. **Higher Costs**: Leveraged mutual funds often come with higher [expense](../e/expense.md) ratios compared to traditional mutual funds due to the complexities and costs associated with actively managing [leverage](../l/leverage.md) and [rebalancing](../r/rebalancing.md) the [fund](../f/fund.md) daily. ### Use Cases for Leveraged Mutual Funds @@ -24,7 +24,7 @@ Leveraged mutual funds are geared toward investors who are looking for short-ter While leveraged mutual funds [offer](../o/offer.md) the potential for enhanced returns, they come with significant risks that investors must carefully consider: -1. **[Volatility](../v/volatility.md) and [Risk](../r/risk.md) of Loss**: The magnified movements make these funds highly volatile. Small declines in the [index](../i/index.md) can lead to substantial losses in a leveraged [mutual fund](../m/mutual_fund.md), potentially more than investors bargained for. +1. **[Volatility](../v/volatility.md) and [Risk](../r/risk.md) of Loss**: The magnified movements make these funds highly volatile. Small declines in the [index](../i/index_instrument.md) can lead to substantial losses in a leveraged [mutual fund](../m/mutual_fund.md), potentially more than investors bargained for. 2. **Decay**: The daily [rebalancing](../r/rebalancing.md) and [compounding](../c/compounding.md) effect can lead to a performance decay over time, meaning that the [fund](../f/fund.md) might not achieve its stated [leverage ratio](../l/leverage_ratio.md) over longer periods. This is especially true in choppy or sideways markets, where the daily [rebalancing](../r/rebalancing.md) tends to diminish returns. 3. **Higher Costs**: With the added complexity of managing [leverage](../l/leverage.md) and [derivatives](../d/derivatives.md), there are typically higher management fees and operational costs associated with leveraged mutual funds. These costs can eat into overall performance. 4. **Suitability**: Leveraged mutual funds are generally not suitable for long-term investors due to the daily [rebalancing](../r/rebalancing.md) and [compounding](../c/compounding.md) effects. They are better suited for experienced investors who understand the risks involved and can monitor their investments frequently. @@ -39,7 +39,7 @@ Several companies [offer](../o/offer.md) leveraged mutual funds aimed at differe - [Direxion](https://www.direxion.com/) 3. **Rydex Funds**: Rydex, part of Guggenheim Investments, offers mutual funds with various [leverage ratios](../l/leverage_ratios.md), targeting different [asset](../a/asset.md) classes and strategies. - [Guggenheim Investments](https://www.guggenheiminvestments.com/products/mutual-funds) -4. **Fidelity Leveraged [Index](../i/index.md) Funds**: Fidelity also offers a selection of leveraged [index](../i/index.md) funds for more advanced traders. +4. **Fidelity Leveraged [Index](../i/index_instrument.md) Funds**: Fidelity also offers a selection of leveraged [index](../i/index_instrument.md) funds for more advanced traders. - [Fidelity](https://www.fidelity.com/) ### Regulatory Environment diff --git a/en/pedia/l/libor-ois_spread.md b/en/pedia/l/libor-ois_spread.md index 35fed89f..5351ff19 100644 --- a/en/pedia/l/libor-ois_spread.md +++ b/en/pedia/l/libor-ois_spread.md @@ -12,7 +12,7 @@ Learn more about LIBOR from [ICE Benchmark Administration](https://www.theice.co ## What is OIS? -The Overnight Indexed [Swap](../s/swap.md) (OIS) is an [interest rate swap](../i/interest_rate_swap.md) agreement where one party agrees to pay a [fixed interest rate](../f/fixed_interest_rate.md) in [exchange](../e/exchange.md) for receiving a floating rate pegged to an overnight [index](../i/index.md), such as the [Federal Funds Rate](../f/federal_funds_rate.md) in the United States or EONIA ([Euro](../e/euro.md) Overnight [Index](../i/index.md) Average) in the [Eurozone](../e/eurozone.md). OIS rates are considered low-[risk](../r/risk.md) because they are based on the overnight repo rate, which is typically low and stable. +The Overnight Indexed [Swap](../s/swap.md) (OIS) is an [interest rate swap](../i/interest_rate_swap.md) agreement where one party agrees to pay a [fixed interest rate](../f/fixed_interest_rate.md) in [exchange](../e/exchange.md) for receiving a floating rate pegged to an overnight [index](../i/index_instrument.md), such as the [Federal Funds Rate](../f/federal_funds_rate.md) in the United States or EONIA ([Euro](../e/euro.md) Overnight [Index](../i/index_instrument.md) Average) in the [Eurozone](../e/eurozone.md). OIS rates are considered low-[risk](../r/risk.md) because they are based on the overnight repo rate, which is typically low and stable. OIS contracts are particularly useful for [hedging interest rate risk](../h/hedging_interest_rate_risk.md) and for [monetary policy](../m/monetary_policy.md) signaling. They also serve as a [liquidity](../l/liquidity.md) [indicator](../i/indicator.md) and a [proxy](../p/proxy.md) for the true [risk](../r/risk.md)-free rate. diff --git a/en/pedia/l/libor_options.md b/en/pedia/l/libor_options.md index e9170fc5..5b7a665b 100644 --- a/en/pedia/l/libor_options.md +++ b/en/pedia/l/libor_options.md @@ -37,7 +37,7 @@ Libor [options](../o/options.md) are used by a variety of [market](../m/market.m 3. **[Arbitrage](../a/arbitrage.md):** [Market](../m/market.md) makers and [proprietary trading](../p/proprietary_trading.md) desks often engage in [arbitrage](../a/arbitrage.md) activities exploiting pricing inefficiencies between the Libor [options](../o/options.md) [market](../m/market.md) and other related markets like [futures](../f/futures.md), swaps, and [forward rate](../f/forward_rate.md) agreements. ### Regulatory and Market Landscape -Libor [options](../o/options.md) are traded on various exchanges and [over-the-counter (OTC) markets](../o/over-the-counter_markets.md). However, the credibility of Libor as a [benchmark](../b/benchmark.md) was significantly impacted by the [Libor scandal](../l/libor_scandal.md), where it was revealed that several banks colluded to manipulate the rate for [profit](../p/profit.md). This had profound repercussions, prompting global regulatory bodies to initiate a transition from Libor to alternative [risk](../r/risk.md)-free rates (RFRs) like the Secured Overnight [Financing](../f/financing.md) Rate (SOFR) in the US, the [Euro](../e/euro.md) Short-Term Rate (€STR) in Europe, and the Sterling Overnight [Index](../i/index.md) Average (SONIA) in the UK. +Libor [options](../o/options.md) are traded on various exchanges and [over-the-counter (OTC) markets](../o/over-the-counter_markets.md). However, the credibility of Libor as a [benchmark](../b/benchmark.md) was significantly impacted by the [Libor scandal](../l/libor_scandal.md), where it was revealed that several banks colluded to manipulate the rate for [profit](../p/profit.md). This had profound repercussions, prompting global regulatory bodies to initiate a transition from Libor to alternative [risk](../r/risk.md)-free rates (RFRs) like the Secured Overnight [Financing](../f/financing.md) Rate (SOFR) in the US, the [Euro](../e/euro.md) Short-Term Rate (€STR) in Europe, and the Sterling Overnight [Index](../i/index_instrument.md) Average (SONIA) in the UK. ICE continues to publish Libor rates despite these developments, but the transition towards alternative benchmarks is steadily advancing. [Market](../m/market.md) participants are gradually shifting their [interest rate](../i/interest_rate.md) hedging and speculative activities from Libor-based instruments to those linked with new RFR benchmarks. diff --git a/en/pedia/l/libor_rate_analysis.md b/en/pedia/l/libor_rate_analysis.md index 14332667..bf21a376 100644 --- a/en/pedia/l/libor_rate_analysis.md +++ b/en/pedia/l/libor_rate_analysis.md @@ -25,7 +25,7 @@ The scandal resulted in substantial fines for implicated banks and led to widesp ## Transition from LIBOR to Alternative Rates Due to the manipulation issues and the declining number of submissions, there has been a global push to transition away from LIBOR to alternative reference rates. Major economies have developed alternative rates: - **Secured Overnight [Financing](../f/financing.md) Rate (SOFR):** The preferred alternative in the United States, based on transactions in the Treasury repurchase [market](../m/market.md). -- **Sterling Overnight [Index](../i/index.md) Average (SONIA):** The UK has adopted SONIA, which is based on actual overnight funding rates in the sterling [market](../m/market.md). +- **Sterling Overnight [Index](../i/index_instrument.md) Average (SONIA):** The UK has adopted SONIA, which is based on actual overnight funding rates in the sterling [market](../m/market.md). - **[Euro](../e/euro.md) Short-Term Rate (€STR):** The European Central [Bank](../b/bank.md) has introduced €STR as the [eurozone](../e/eurozone.md) alternative. - **Swiss Average Rate Overnight (SARON):** For the Swiss franc, SARON has been introduced. - **Tokyo Overnight Average Rate (TONA):** In Japan, TONA is the preferred alternative. diff --git a/en/pedia/l/libor_scandal.md b/en/pedia/l/libor_scandal.md index ce39e278..3e9336d6 100644 --- a/en/pedia/l/libor_scandal.md +++ b/en/pedia/l/libor_scandal.md @@ -52,7 +52,7 @@ The scandal also prompted significant reforms in how financial [benchmark](../b/ One of the most impactful outcomes of the scandal has been the decision to gradually phase out LIBOR entirely. Recognizing the intrinsic issues related to the self-reporting mechanism, regulators globally agreed to transition to alternative reference rates. For instance: - **SOFR (Secured Overnight [Financing](../f/financing.md) Rate)**: The preferred alternative in the U.S. for USD LIBOR. -- **SONIA (Sterling Overnight [Index](../i/index.md) Average)**: The replacement for GBP LIBOR. +- **SONIA (Sterling Overnight [Index](../i/index_instrument.md) Average)**: The replacement for GBP LIBOR. - **ESTER ([Euro](../e/euro.md) Short-Term Rate)**: Used to replace EUR LIBOR. These new benchmarks are based on actual [transaction](../t/transaction.md) data rather than self-reported rates, aimed at preventing future manipulations and ensuring greater integrity in the [financial markets](../f/financial_market.md). diff --git a/en/pedia/l/life_annuity.md b/en/pedia/l/life_annuity.md index d1835f3a..76baeb13 100644 --- a/en/pedia/l/life_annuity.md +++ b/en/pedia/l/life_annuity.md @@ -34,7 +34,7 @@ Payments are made until both annuitants (usually spouses) have passed away. Paym Guarantees payments for life but also ensures that if the [annuitant](../a/annuitant.md) dies within a specified period, payments continue to a [beneficiary](../b/beneficiary.md) for the remainder of the period. ### Inflated-Indexed Annuity -Payments increase based on a specified [inflation](../i/inflation.md) [index](../i/index.md) to protect the [purchasing power](../p/purchasing_power.md) of the [annuitant](../a/annuitant.md)’s [income](../i/income.md). +Payments increase based on a specified [inflation](../i/inflation.md) [index](../i/index_instrument.md) to protect the [purchasing power](../p/purchasing_power.md) of the [annuitant](../a/annuitant.md)’s [income](../i/income.md). ## Benefits of Life Annuities diff --git a/en/pedia/l/limit_down.md b/en/pedia/l/limit_down.md index ece52fa0..a140ca8a 100644 --- a/en/pedia/l/limit_down.md +++ b/en/pedia/l/limit_down.md @@ -26,15 +26,15 @@ Different exchanges have varying rules for limit down mechanisms. Here are some The NYSE uses a system called "Circuit Breakers" to manage extreme [volatility](../v/volatility.md). These are divided into three levels: -1. **Level 1**: Triggered if the S&P 500 [Index](../i/index.md) drops by 7% from the previous day's close. Trading is halted for 15 minutes. -2. **Level 2**: Triggered if the S&P 500 [Index](../i/index.md) drops by 13%. Similar to Level 1, trading halts for 15 minutes. -3. **Level 3**: Triggered if the S&P 500 [Index](../i/index.md) drops by 20%. Trading halts for the remainder of the day. +1. **Level 1**: Triggered if the S&P 500 [Index](../i/index_instrument.md) drops by 7% from the previous day's close. Trading is halted for 15 minutes. +2. **Level 2**: Triggered if the S&P 500 [Index](../i/index_instrument.md) drops by 13%. Similar to Level 1, trading halts for 15 minutes. +3. **Level 3**: Triggered if the S&P 500 [Index](../i/index_instrument.md) drops by 20%. Trading halts for the remainder of the day. ### Chicago Mercantile Exchange (CME) The CME has a complex system that depends on the specific [futures contract](../f/futures_contract.md). For example: -1. **[Equity](../e/equity.md) [Index Futures](../i/index_futures.md)**: CME uses price limits based on the [percentage change](../p/percentage_change.md) of the [underlying](../u/underlying.md) [index](../i/index.md), similar to the NYSE system but tailored for [futures](../f/futures.md) trading. +1. **[Equity](../e/equity.md) [Index Futures](../i/index_futures.md)**: CME uses price limits based on the [percentage change](../p/percentage_change.md) of the [underlying](../u/underlying.md) [index](../i/index_instrument.md), similar to the NYSE system but tailored for [futures](../f/futures.md) trading. 2. **[Commodity Futures](../c/commodity_futures.md)**: Limits vary significantly. For example, corn [futures](../f/futures.md) might have a daily limit of 25 cents per bushel, whereas [crude oil](../c/crude_oil.md) [futures](../f/futures.md) have different thresholds. ## Impact on Trading Strategies diff --git a/en/pedia/l/limit_price_analysis.md b/en/pedia/l/limit_price_analysis.md index eee3b169..de49cdda 100644 --- a/en/pedia/l/limit_price_analysis.md +++ b/en/pedia/l/limit_price_analysis.md @@ -18,7 +18,7 @@ Limit orders are fundamental in the realm of [algorithmic trading](../a/algorith Analyzing the [order book](../o/order_book.md), which lists all buy and sell orders for a particular [security](../s/security.md), can provide insights into [market sentiment](../m/market_sentiment.md) and help set effective limit prices. Key metrics include [bid-ask spread](../b/bid-ask_spread.md), [market depth](../m/market_depth.md), and [order flow imbalance](../o/order_flow_imbalance.md). 3. **Historical Pricing Data**: - By studying historical prices and volumes, traders can determine effective limit prices. [Technical indicators](../t/technical_indicators.md) like moving averages (MA), [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) can also aid in this analysis. + By studying historical prices and volumes, traders can determine effective limit prices. [Technical indicators](../t/technical_indicators.md) like moving averages (MA), [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) can also aid in this analysis. 4. **[Volatility Analysis](../v/volatility_analysis.md)**: Understanding [market](../m/market.md) [volatility](../v/volatility.md) is crucial in setting limit prices. Greater [volatility](../v/volatility.md) might necessitate wider price ranges for limit orders to ensure [execution](../e/execution.md). diff --git a/en/pedia/l/line_chart.md b/en/pedia/l/line_chart.md index e25512b9..d016caab 100644 --- a/en/pedia/l/line_chart.md +++ b/en/pedia/l/line_chart.md @@ -14,7 +14,7 @@ In the trading realm, line charts are employed to depict price movements of secu 3. **Time Interval Customization**: Traders can customize the time interval on a line chart to view data in hourly, daily, weekly, or monthly formats. -4. **Integration with Indicators**: Line charts can be integrated with various [technical indicators](../t/technical_indicator.md), like moving averages (MA), [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_band.md), to enhance analysis accuracy. +4. **Integration with Indicators**: Line charts can be integrated with various [technical indicators](../t/technical_indicator.md), like moving averages (MA), [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_band.md), to enhance analysis accuracy. ## Structure of Line Charts diff --git a/en/pedia/l/line_graph.md b/en/pedia/l/line_graph.md index ad1c8858..1786e3b9 100644 --- a/en/pedia/l/line_graph.md +++ b/en/pedia/l/line_graph.md @@ -74,9 +74,9 @@ Various tools and software can be used to create line graphs, ranging from simpl ## Case Study -Consider a trading [firm](../f/firm.md) analyzing the performance of the S&P 500 [index](../i/index.md). +Consider a trading [firm](../f/firm.md) analyzing the performance of the S&P 500 [index](../i/index_instrument.md). -1. **Data Collection**: Historical closing prices of the S&P 500 [index](../i/index.md) are collected over the past decade. +1. **Data Collection**: Historical closing prices of the S&P 500 [index](../i/index_instrument.md) are collected over the past decade. 2. **Creating the Line Graph**: Using Python’s Pandas and Matplotlib libraries, a line graph is created. ```python [import](../i/import.md) pandas as pd @@ -89,7 +89,7 @@ Consider a trading [firm](../f/firm.md) analyzing the performance of the S&P 500 # Plotting the line graph plt.figure(figsize=(12, 6)) plt.plot(close_prices) - plt.title('S&P 500 [Index](../i/index.md) Closing Prices Over the Last Decade') + plt.title('S&P 500 [Index](../i/index_instrument.md) Closing Prices Over the Last Decade') plt.xlabel('Date') plt.ylabel('Closing Price') plt.grid() diff --git a/en/pedia/l/line_of_credit_(loc).md b/en/pedia/l/line_of_credit_(loc).md index 11017b84..939f212e 100644 --- a/en/pedia/l/line_of_credit_(loc).md +++ b/en/pedia/l/line_of_credit_(loc).md @@ -28,7 +28,7 @@ Secured LOCs are backed by [collateral](../c/collateral.md) such as savings acco The [credit limit](../c/credit_limit.md) is the maximum amount a borrower can draw on a line of [credit](../c/credit.md). It is determined by the [lender](../l/lender.md) based on several factors, including [creditworthiness](../c/creditworthiness.md), [income](../i/income.md), and [collateral](../c/collateral.md) (if provided). ### Interest Rates -[Interest](../i/interest.md) is usually charged only on the amount of [money](../m/money.md) borrowed—not the entire [credit limit](../c/credit_limit.md). Rates can be variable or fixed depending on the agreement with the [lender](../l/lender.md). Variable rates can change over time based on an [underlying](../u/underlying.md) [interest rate](../i/interest_rate.md) [index](../i/index.md). +[Interest](../i/interest.md) is usually charged only on the amount of [money](../m/money.md) borrowed—not the entire [credit limit](../c/credit_limit.md). Rates can be variable or fixed depending on the agreement with the [lender](../l/lender.md). Variable rates can change over time based on an [underlying](../u/underlying.md) [interest rate](../i/interest_rate.md) [index](../i/index_instrument.md). ### Draw Period During the draw period, the borrower can access funds up to their [credit limit](../c/credit_limit.md). This period can last several years, and during this time the borrower is often required to make minimum payments on the [interest](../i/interest.md) and sometimes on the [principal](../p/principal.md). diff --git a/en/pedia/l/linear_discriminant_analysis_(lda).md b/en/pedia/l/linear_discriminant_analysis_(lda).md index da928e8c..f8c57e26 100644 --- a/en/pedia/l/linear_discriminant_analysis_(lda).md +++ b/en/pedia/l/linear_discriminant_analysis_(lda).md @@ -74,8 +74,8 @@ LDA can also be applied in [portfolio management](../p/portfolio_management.md) ## Case Study: Applying LDA to S&P 500 Data -As a practical example, let's consider applying LDA to classify the direction of daily returns of the S&P 500 [index](../i/index.md). The steps involved are: -1. **Data Collection**: Collect historical daily prices for the S&P 500 [index](../i/index.md). +As a practical example, let's consider applying LDA to classify the direction of daily returns of the S&P 500 [index](../i/index_instrument.md). The steps involved are: +1. **Data Collection**: Collect historical daily prices for the S&P 500 [index](../i/index_instrument.md). 2. **Feature Engineering**: Create features such as log returns, moving averages, [volume](../v/volume.md) changes, [volatility](../v/volatility.md) measures, and [technical indicators](../t/technical_indicators.md). 3. **Class Labeling**: Define two classes based on the future daily [return](../r/return.md); "up" if the [return](../r/return.md) is positive, and "down" if the [return](../r/return.md) is negative. 4. **Model Training**: Split the data into training and test sets. Train the LDA model using the training set. diff --git a/en/pedia/l/linear_relationship.md b/en/pedia/l/linear_relationship.md index 93dd9163..f0c616d2 100644 --- a/en/pedia/l/linear_relationship.md +++ b/en/pedia/l/linear_relationship.md @@ -143,8 +143,8 @@ future_time = np.arange(len(data), len(data) + 30).reshape(-1, 1) predicted_prices = model.predict(future_time) # Plot results -plt.plot(data.[index](../i/index.md), data['Close'], label='Historical Prices') -plt.plot(pd.date_range(start=data.[index](../i/index.md)[-1], periods=31, freq='D')[1:], predicted_prices, label='Predicted Prices') +plt.plot(data.[index](../i/index_instrument.md), data['Close'], label='Historical Prices') +plt.plot(pd.date_range(start=data.[index](../i/index_instrument.md)[-1], periods=31, freq='D')[1:], predicted_prices, label='Predicted Prices') plt.legend() plt.show() ``` diff --git a/en/pedia/l/lipper_indexes.md b/en/pedia/l/lipper_indexes.md index 1be6524c..059e02ad 100644 --- a/en/pedia/l/lipper_indexes.md +++ b/en/pedia/l/lipper_indexes.md @@ -19,31 +19,31 @@ Lipper Indexes are categorized broadly into four main types, each designed to fo [Equity](../e/equity.md) indexes encompass a wide [range](../r/range.md) of stock-based funds. These can be further grouped based on regional focus (e.g., U.S., Global, Emerging Markets), investment style (e.g., Growth, [Value](../v/value.md), Blend), and [capitalization](../c/capitalization.md) (e.g., Large-Cap, [Mid-Cap](../m/mid-cap.md), Small-Cap). Some of the prominent Lipper [Equity](../e/equity.md) Indexes include: -- **Lipper U.S. Large-Cap Growth [Index](../i/index.md)**: Tracks the performance of large-cap [growth stocks](../g/growth_stocks.md). -- **Lipper Global [Equity](../e/equity.md) [Index](../i/index.md)**: Provides a measure for global [equity](../e/equity.md) performance. -- **Lipper Emerging Markets [Equity](../e/equity.md) [Index](../i/index.md)**: Measures the performance of funds [investing](../i/investing.md) in emerging [market](../m/market.md) equities. +- **Lipper U.S. Large-Cap Growth [Index](../i/index_instrument.md)**: Tracks the performance of large-cap [growth stocks](../g/growth_stocks.md). +- **Lipper Global [Equity](../e/equity.md) [Index](../i/index_instrument.md)**: Provides a measure for global [equity](../e/equity.md) performance. +- **Lipper Emerging Markets [Equity](../e/equity.md) [Index](../i/index_instrument.md)**: Measures the performance of funds [investing](../i/investing.md) in emerging [market](../m/market.md) equities. ### 2. Bond Indexes [Bond](../b/bond.md) indexes track the performance of funds [investing](../i/investing.md) in [debt](../d/debt.md) securities. These are often categorized by the type of [bond](../b/bond.md), such as government bonds, corporate bonds, [municipal bonds](../m/municipal_bonds.md), and so on. Specific benchmarks include: -- **Lipper U.S. [Government Bond](../g/government_bond.md) [Index](../i/index.md)**: Tracks funds focusing on U.S. government bonds. -- **Lipper [Corporate Bond](../c/corporate_bond.md) [Index](../i/index.md)**: Focuses on corporate [debt](../d/debt.md) instruments. -- **Lipper High [Yield](../y/yield.md) [Bond](../b/bond.md) [Index](../i/index.md)**: Measures the performance of funds [investing](../i/investing.md) in high-[yield](../y/yield.md), speculative-grade bonds. +- **Lipper U.S. [Government Bond](../g/government_bond.md) [Index](../i/index_instrument.md)**: Tracks funds focusing on U.S. government bonds. +- **Lipper [Corporate Bond](../c/corporate_bond.md) [Index](../i/index_instrument.md)**: Focuses on corporate [debt](../d/debt.md) instruments. +- **Lipper High [Yield](../y/yield.md) [Bond](../b/bond.md) [Index](../i/index_instrument.md)**: Measures the performance of funds [investing](../i/investing.md) in high-[yield](../y/yield.md), speculative-grade bonds. ### 3. Mixed-Asset Indexes Mixed-[Asset](../a/asset.md) Indexes, often referred to as [balanced fund](../b/balanced_fund.md) indexes, track funds that invest in a combination of equities and bonds. These indexes are useful for investors looking for a balanced exposure to both [asset](../a/asset.md) classes. Examples are: -- **Lipper Mixed-[Asset](../a/asset.md) Target Allocation Growth [Index](../i/index.md)**: Targets a higher allocation towards equities for growth. -- **Lipper Mixed-[Asset](../a/asset.md) Target Allocation Conservative [Index](../i/index.md)**: Focuses on a more conservative balance with a higher allocation towards bonds. +- **Lipper Mixed-[Asset](../a/asset.md) Target Allocation Growth [Index](../i/index_instrument.md)**: Targets a higher allocation towards equities for growth. +- **Lipper Mixed-[Asset](../a/asset.md) Target Allocation Conservative [Index](../i/index_instrument.md)**: Focuses on a more conservative balance with a higher allocation towards bonds. ### 4. Other Specialized Indexes These indexes cover various niche areas and specific investment styles. Some examples include sector-specific indexes, socially responsible [investing](../i/investing.md) (SRI) indexes, and [real estate](../r/real_estate.md) indexes. Examples include: -- **Lipper [Real Estate](../r/real_estate.md) [Index](../i/index.md)**: Tracks funds [investing](../i/investing.md) primarily in [real estate](../r/real_estate.md) assets. -- **Lipper SRI [Index](../i/index.md)**: Focuses on funds with socially responsible investment strategies. +- **Lipper [Real Estate](../r/real_estate.md) [Index](../i/index_instrument.md)**: Tracks funds [investing](../i/investing.md) primarily in [real estate](../r/real_estate.md) assets. +- **Lipper SRI [Index](../i/index_instrument.md)**: Focuses on funds with socially responsible investment strategies. - **Lipper Sector Specific Indexes**: Includes tech, healthcare, utilities, etc., focused funds. ## The Importance of Lipper Indexes in Investment Decisions @@ -74,7 +74,7 @@ The Lipper Leaders scores [range](../r/range.md) from 1 (worst) to 5 (best) and Individual investors often use Lipper Indexes to: - Assess which funds to invest in by checking how they perform relative to their category. -- Get insights into [market](../m/market.md) trends by observing [index](../i/index.md) performance. +- Get insights into [market](../m/market.md) trends by observing [index](../i/index_instrument.md) performance. - Manage their investment portfolio by regular benchmarking against relevant Lipper Indexes. ### Professional Fund Managers diff --git a/en/pedia/l/liquidity-weighted_returns.md b/en/pedia/l/liquidity-weighted_returns.md index b4b58177..ea8b9da1 100644 --- a/en/pedia/l/liquidity-weighted_returns.md +++ b/en/pedia/l/liquidity-weighted_returns.md @@ -20,7 +20,7 @@ Returns in [finance](../f/finance.md) refer to the gains or losses made on an in ### Types of Returns 1. **Absolute Returns**: The simple increase or decrease in the [value](../v/value.md) of an investment. -2. **Relative Returns**: Returns compared to a [benchmark](../b/benchmark.md) [index](../i/index.md) or other standard. +2. **Relative Returns**: Returns compared to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) or other standard. 3. **[Risk](../r/risk.md)-Adjusted Returns**: Returns that [factor](../f/factor.md) in the [risk](../r/risk.md) taken to achieve them, such as [Sharpe Ratio](../s/sharpe_ratio.md). 4. **[Liquidity](../l/liquidity.md)-[Weighted Returns](../w/weighted_returns_in_trading.md)**: Returns adjusted for the [liquidity](../l/liquidity.md) of the assets involved. diff --git a/en/pedia/l/liquidity_ratios.md b/en/pedia/l/liquidity_ratios.md index 54cbfbce..7b5edef3 100644 --- a/en/pedia/l/liquidity_ratios.md +++ b/en/pedia/l/liquidity_ratios.md @@ -90,7 +90,7 @@ :[return](../r/return.md): List of [trade](../t/trade.md) signals. """ signals = [] - for [index](../i/index.md), row in stock_data.iterrows(): + for [index](../i/index_instrument.md), row in stock_data.iterrows(): if row['[Current Ratio](../c/current_ratio.md)'] > 2 and row['[Quick Ratio](../q/quick_ratio.md)'] > 1.5: signals.append((row['Stock Symbol'], 'BUY')) elif row['[Current Ratio](../c/current_ratio.md)'] < 1 and row['[Quick Ratio](../q/quick_ratio.md)'] < 0.8: diff --git a/en/pedia/l/loan_credit_default_swap_index_(markit_lcdx).md b/en/pedia/l/loan_credit_default_swap_index_(markit_lcdx).md index c462498f..0f13cd17 100644 --- a/en/pedia/l/loan_credit_default_swap_index_(markit_lcdx).md +++ b/en/pedia/l/loan_credit_default_swap_index_(markit_lcdx).md @@ -1,6 +1,6 @@ # Loan Credit Default Swap Index (Markit LCDX) -The [Loan](../l/loan.md) [Credit](../c/credit.md) [Default](../d/default.md) [Swap](../s/swap.md) [Index](../i/index.md) (LCDX) is a specialized [financial instrument](../f/financial_instrument.md) that plays a fundamental role in the [credit](../c/credit.md) [derivatives](../d/derivatives.md) [market](../m/market.md). Developed by Markit (now part of IHS Markit), LCDX provides investors with a mechanism to [hedge](../h/hedge.md) or [gain](../g/gain.md) exposure to [risk](../r/risk.md) in the [syndicated loan](../s/syndicated_loan.md) [market](../m/market.md), particularly focusing on leveraged loans. +The [Loan](../l/loan.md) [Credit](../c/credit.md) [Default](../d/default.md) [Swap](../s/swap.md) [Index](../i/index_instrument.md) (LCDX) is a specialized [financial instrument](../f/financial_instrument.md) that plays a fundamental role in the [credit](../c/credit.md) [derivatives](../d/derivatives.md) [market](../m/market.md). Developed by Markit (now part of IHS Markit), LCDX provides investors with a mechanism to [hedge](../h/hedge.md) or [gain](../g/gain.md) exposure to [risk](../r/risk.md) in the [syndicated loan](../s/syndicated_loan.md) [market](../m/market.md), particularly focusing on leveraged loans. ## What is a Credit Default Swap (CDS)? @@ -12,31 +12,31 @@ Leveraged loans are loans extended to companies or individuals that already have ## Development of the LCDX -The LCDX was first launched in May 2007 by Markit, in response to the growing need for a standardized benchmarking tool in the [leveraged loan](../l/leveraged_loan.md) [market](../m/market.md). The development of the LCDX provided a new avenue for managing the [credit risk](../c/credit_risk.md) of a basket of leveraged loans. The [index](../i/index.md) is composed of a selection of the largest and most [liquid](../l/liquid.md) syndicated loans in the [market](../m/market.md). +The LCDX was first launched in May 2007 by Markit, in response to the growing need for a standardized benchmarking tool in the [leveraged loan](../l/leveraged_loan.md) [market](../m/market.md). The development of the LCDX provided a new avenue for managing the [credit risk](../c/credit_risk.md) of a basket of leveraged loans. The [index](../i/index_instrument.md) is composed of a selection of the largest and most [liquid](../l/liquid.md) syndicated loans in the [market](../m/market.md). For more details about Markit and other financial indices: [IHS Markit](https://ihsmarkit.com) ## Structure and Composition of LCDX -The LCDX usually includes 100 of the most [liquid](../l/liquid.md) North American leveraged loans. These loans are indexed based on specific criteria, such as the [credit rating](../c/credit_rating.md) of the borrowing company, [liquidity](../l/liquidity.md), and the size of the [loan](../l/loan.md). The [index](../i/index.md) is updated periodically to reflect the changing dynamics of the [leveraged loan](../l/leveraged_loan.md) [market](../m/market.md). +The LCDX usually includes 100 of the most [liquid](../l/liquid.md) North American leveraged loans. These loans are indexed based on specific criteria, such as the [credit rating](../c/credit_rating.md) of the borrowing company, [liquidity](../l/liquidity.md), and the size of the [loan](../l/loan.md). The [index](../i/index_instrument.md) is updated periodically to reflect the changing dynamics of the [leveraged loan](../l/leveraged_loan.md) [market](../m/market.md). -Each entity within the LCDX has an equal weighting at inception, but this can change as [market](../m/market.md) values fluctuate. The constituents of the [index](../i/index.md) are reviewed regularly, and adjustments are made to include new loans and remove those that no longer meet the inclusion criteria. +Each entity within the LCDX has an equal weighting at inception, but this can change as [market](../m/market.md) values fluctuate. The constituents of the [index](../i/index_instrument.md) are reviewed regularly, and adjustments are made to include new loans and remove those that no longer meet the inclusion criteria. ## How LCDX Works ### Hedging -Institutional investors, such as banks and [hedge](../h/hedge.md) funds, use the LCDX to [hedge](../h/hedge.md) the [risk](../r/risk.md) of holding leveraged loans in their portfolios. For instance, if an institution holds a portfolio of leveraged loans, it can buy protection via the LCDX. Should any loans in the [index](../i/index.md) [default](../d/default.md), the institution would receive a [payout](../p/payout.md) to compensate for the losses. +Institutional investors, such as banks and [hedge](../h/hedge.md) funds, use the LCDX to [hedge](../h/hedge.md) the [risk](../r/risk.md) of holding leveraged loans in their portfolios. For instance, if an institution holds a portfolio of leveraged loans, it can buy protection via the LCDX. Should any loans in the [index](../i/index_instrument.md) [default](../d/default.md), the institution would receive a [payout](../p/payout.md) to compensate for the losses. ### Speculation -Investors also use the LCDX to speculate on the [creditworthiness](../c/creditworthiness.md) of the companies in the [index](../i/index.md). By taking long or short positions in the [index](../i/index.md), they can express their views on the direction of [credit](../c/credit.md) [spreads](../s/spreads.md) in the [leveraged loan](../l/leveraged_loan.md) [market](../m/market.md). +Investors also use the LCDX to speculate on the [creditworthiness](../c/creditworthiness.md) of the companies in the [index](../i/index_instrument.md). By taking long or short positions in the [index](../i/index_instrument.md), they can express their views on the direction of [credit](../c/credit.md) [spreads](../s/spreads.md) in the [leveraged loan](../l/leveraged_loan.md) [market](../m/market.md). ## Valuation and Pricing ### Spreads -The price of a CDS [index](../i/index.md), including the LCDX, is typically quoted in terms of its spread. The spread represents the annual cost (in [basis](../b/basis.md) points) that the buyer of protection must pay to the seller. For example, a 300 [basis](../b/basis.md) point spread means that the buyer must pay 3% of the notional amount per year to the seller. +The price of a CDS [index](../i/index_instrument.md), including the LCDX, is typically quoted in terms of its spread. The spread represents the annual cost (in [basis](../b/basis.md) points) that the buyer of protection must pay to the seller. For example, a 300 [basis](../b/basis.md) point spread means that the buyer must pay 3% of the notional amount per year to the seller. ### Credit Events @@ -86,4 +86,4 @@ The COVID-19 pandemic had a profound impact on the [leveraged loan](../l/leverag ## Conclusion -The [Loan](../l/loan.md) [Credit](../c/credit.md) [Default](../d/default.md) [Swap](../s/swap.md) [Index](../i/index.md) (Markit LCDX) is a critical tool in the modern financial landscape, enabling investors to [hedge](../h/hedge.md) and manage [credit risk](../c/credit_risk.md) associated with leveraged loans. Its development and ongoing evolution reflect the dynamic nature of [financial markets](../f/financial_market.md) and the continual need for sophisticated [risk management](../r/risk_management.md) tools. As the [market](../m/market.md) for leveraged loans grows and evolves, the LCDX [will](../w/will.md) likely continue to play a pivotal role in shaping investment strategies and [risk management](../r/risk_management.md) practices. For those involved in the [credit](../c/credit.md) [derivatives](../d/derivatives.md) [market](../m/market.md), understanding the intricacies of the LCDX is essential for optimizing [portfolio performance](../p/portfolio_performance.md) and mitigating [risk](../r/risk.md) effectively. \ No newline at end of file +The [Loan](../l/loan.md) [Credit](../c/credit.md) [Default](../d/default.md) [Swap](../s/swap.md) [Index](../i/index_instrument.md) (Markit LCDX) is a critical tool in the modern financial landscape, enabling investors to [hedge](../h/hedge.md) and manage [credit risk](../c/credit_risk.md) associated with leveraged loans. Its development and ongoing evolution reflect the dynamic nature of [financial markets](../f/financial_market.md) and the continual need for sophisticated [risk management](../r/risk_management.md) tools. As the [market](../m/market.md) for leveraged loans grows and evolves, the LCDX [will](../w/will.md) likely continue to play a pivotal role in shaping investment strategies and [risk management](../r/risk_management.md) practices. For those involved in the [credit](../c/credit.md) [derivatives](../d/derivatives.md) [market](../m/market.md), understanding the intricacies of the LCDX is essential for optimizing [portfolio performance](../p/portfolio_performance.md) and mitigating [risk](../r/risk.md) effectively. \ No newline at end of file diff --git a/en/pedia/l/log-log_plot_in_trading.md b/en/pedia/l/log-log_plot_in_trading.md index f911a51f..e30c6af7 100644 --- a/en/pedia/l/log-log_plot_in_trading.md +++ b/en/pedia/l/log-log_plot_in_trading.md @@ -47,7 +47,7 @@ This method could reveal power-law behavior in the [return](../r/return.md) [dis ### Case Study: Market Index Analysis -For long-term investment strategies, analyzing the historical performance of [market](../m/market.md) indices is crucial. A log-log plot of an [index](../i/index.md) like the S&P 500 over several decades can illustrate the compounded growth more clearly than a linear plot. Exponential [growth trends](../g/growth_trends_in_trading.md) appear linear, making it easier to identify phases of different [growth rates](../g/growth_rates_in_trading.md) and periods of [market](../m/market.md) [volatility](../v/volatility.md). +For long-term investment strategies, analyzing the historical performance of [market](../m/market.md) indices is crucial. A log-log plot of an [index](../i/index_instrument.md) like the S&P 500 over several decades can illustrate the compounded growth more clearly than a linear plot. Exponential [growth trends](../g/growth_trends_in_trading.md) appear linear, making it easier to identify phases of different [growth rates](../g/growth_rates_in_trading.md) and periods of [market](../m/market.md) [volatility](../v/volatility.md). ## Implementing Log-Log Plots diff --git a/en/pedia/l/log_scale_in_trading_charts.md b/en/pedia/l/log_scale_in_trading_charts.md index 339a0676..bad9a084 100644 --- a/en/pedia/l/log_scale_in_trading_charts.md +++ b/en/pedia/l/log_scale_in_trading_charts.md @@ -34,7 +34,7 @@ Most modern trading platforms provide the option to switch between linear and lo ### Example 1: Stock Market Index -Consider the historical price chart of the S&P 500 [index](../i/index.md). Over the past few decades, the [index](../i/index.md) has grown from a few hundred to several thousand points. A linear scale would heavily compress the earlier years' data, making it difficult to see patterns or trends. A log scale, however, would provide a clearer picture of percentage changes, allowing analysts to easily identify significant growth periods. +Consider the historical price chart of the S&P 500 [index](../i/index_instrument.md). Over the past few decades, the [index](../i/index_instrument.md) has grown from a few hundred to several thousand points. A linear scale would heavily compress the earlier years' data, making it difficult to see patterns or trends. A log scale, however, would provide a clearer picture of percentage changes, allowing analysts to easily identify significant growth periods. ### Example 2: Cryptocurrency Prices diff --git a/en/pedia/l/logistic_regression_in_trading.md b/en/pedia/l/logistic_regression_in_trading.md index 72506337..52d4c625 100644 --- a/en/pedia/l/logistic_regression_in_trading.md +++ b/en/pedia/l/logistic_regression_in_trading.md @@ -28,14 +28,14 @@ Traders can use logistic regression to predict the probability that a [market](. ### Example -Suppose a [trader](../t/trader.md) wants to predict whether the S&P 500 [index](../i/index.md) [will](../w/will.md) go up or down the next day. They can collect historical data on various factors such as: +Suppose a [trader](../t/trader.md) wants to predict whether the S&P 500 [index](../i/index_instrument.md) [will](../w/will.md) go up or down the next day. They can collect historical data on various factors such as: - The previous closing price. - The trading [volume](../v/volume.md). - The [opening price](../o/opening_price.md). - [Economic indicators](../e/economic_indicators.md). -Using these features, a logistic regression model can be trained to predict the probability that the [index](../i/index.md) [will](../w/will.md) go up or down. +Using these features, a logistic regression model can be trained to predict the probability that the [index](../i/index_instrument.md) [will](../w/will.md) go up or down. ### Determining Trade Success Probability diff --git a/en/pedia/l/london_interbank_bid_rate_(libid).md b/en/pedia/l/london_interbank_bid_rate_(libid).md index c1f97395..b9c57355 100644 --- a/en/pedia/l/london_interbank_bid_rate_(libid).md +++ b/en/pedia/l/london_interbank_bid_rate_(libid).md @@ -32,7 +32,7 @@ LIBID can act as an [economic indicator](../e/economic_indicator.md), providing While both LIBID and LIBOR are interbank rates, they serve opposite functions. LIBOR is the rate at which banks lend to each other, whereas LIBID is the rate at which they borrow. Generally, LIBID is slightly lower than LIBOR due to the [bid](../b/bid.md)-[offer](../o/offer.md) spread, which compensates for the [risk](../r/risk.md) and [liquidity](../l/liquidity.md) preference of lending banks. -In recent years, the financial [industry](../i/industry.md) has scrutinized LIBOR due to concerns over its accuracy and susceptibility to manipulation. This scrutiny has led to the development of alternative reference rates such as the Sterling Overnight [Index](../i/index.md) Average (SONIA) and the Secured Overnight [Financing](../f/financing.md) Rate (SOFR). However, these changes have also affected the perception and utilization of LIBID. +In recent years, the financial [industry](../i/industry.md) has scrutinized LIBOR due to concerns over its accuracy and susceptibility to manipulation. This scrutiny has led to the development of alternative reference rates such as the Sterling Overnight [Index](../i/index_instrument.md) Average (SONIA) and the Secured Overnight [Financing](../f/financing.md) Rate (SOFR). However, these changes have also affected the perception and utilization of LIBID. ## Historical Context diff --git a/en/pedia/l/london_interbank_offered_rate_(libor).md b/en/pedia/l/london_interbank_offered_rate_(libor).md index b284c6e5..683d3881 100644 --- a/en/pedia/l/london_interbank_offered_rate_(libor).md +++ b/en/pedia/l/london_interbank_offered_rate_(libor).md @@ -40,7 +40,7 @@ In 2012, a major scandal erupted when it was revealed that [multiple](../m/multi ## Transition Away from LIBOR -Due to its vulnerabilities and the scandal, financial regulators have sought to transition away from LIBOR to more reliable, [transaction](../t/transaction.md)-based benchmarks. For example, in the United States, the Alternative Reference Rates Committee (ARRC) selected the Secured Overnight [Financing](../f/financing.md) Rate (SOFR) as the preferred replacement for USD LIBOR. Similarly, the Financial Conduct Authority (FCA) in the UK has endorsed SONIA (Sterling Overnight [Index](../i/index.md) Average) as an alternative to GBP LIBOR. +Due to its vulnerabilities and the scandal, financial regulators have sought to transition away from LIBOR to more reliable, [transaction](../t/transaction.md)-based benchmarks. For example, in the United States, the Alternative Reference Rates Committee (ARRC) selected the Secured Overnight [Financing](../f/financing.md) Rate (SOFR) as the preferred replacement for USD LIBOR. Similarly, the Financial Conduct Authority (FCA) in the UK has endorsed SONIA (Sterling Overnight [Index](../i/index_instrument.md) Average) as an alternative to GBP LIBOR. The transition away from LIBOR involves several steps, including: diff --git a/en/pedia/l/long-legged_doji.md b/en/pedia/l/long-legged_doji.md index 614dfa37..93489c4b 100644 --- a/en/pedia/l/long-legged_doji.md +++ b/en/pedia/l/long-legged_doji.md @@ -34,7 +34,7 @@ The Long-Legged [Doji](../d/doji.md) can be integrated into various [trading str ### Reversal Strategies - **Identifying Potential Reversals**: By recognizing Long-Legged [Doji](../d/doji.md) patterns at the end of established trends, traders can anticipate possible reversals and adjust their positions accordingly. For example, following an [uptrend](../u/uptrend.md), the appearance of a Long-Legged [Doji](../d/doji.md) can signal the [trader](../t/trader.md) to consider exiting long positions and preparing for potential short opportunities. -- **Combining with Other Indicators**: When used in conjunction with indicators like [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD), the Long-Legged [Doji](../d/doji.md) can provide stronger signals. For instance, if a Long-Legged [Doji](../d/doji.md) forms while RSI is in [overbought](../o/overbought.md) territory, the likelihood of a bearish [reversal](../r/reversal.md) increases. +- **Combining with Other Indicators**: When used in conjunction with indicators like [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD), the Long-Legged [Doji](../d/doji.md) can provide stronger signals. For instance, if a Long-Legged [Doji](../d/doji.md) forms while RSI is in [overbought](../o/overbought.md) territory, the likelihood of a bearish [reversal](../r/reversal.md) increases. ### Continuation Strategies @@ -43,7 +43,7 @@ The Long-Legged [Doji](../d/doji.md) can be integrated into various [trading str ## Real-World Examples -Let’s consider a hypothetical example on a major stock [index](../i/index.md) like the S&P 500. Suppose the S&P 500 has been in a strong upward [trend](../t/trend.md) for several months, and a Long-Legged [Doji](../d/doji.md) forms at the peak of the latest [rally](../r/rally.md). Traders would pay close attention to the following days' price actions. If the next few candlesticks confirm weakness with bearish patterns like a bearish engulfing or a [shooting star](../s/shooting_star.md), traders might interpret this as a signal to sell off their long positions, anticipating a [correction](../c/correction.md) or [reversal](../r/reversal.md). +Let’s consider a hypothetical example on a major stock [index](../i/index_instrument.md) like the S&P 500. Suppose the S&P 500 has been in a strong upward [trend](../t/trend.md) for several months, and a Long-Legged [Doji](../d/doji.md) forms at the peak of the latest [rally](../r/rally.md). Traders would pay close attention to the following days' price actions. If the next few candlesticks confirm weakness with bearish patterns like a bearish engulfing or a [shooting star](../s/shooting_star.md), traders might interpret this as a signal to sell off their long positions, anticipating a [correction](../c/correction.md) or [reversal](../r/reversal.md). In cryptocurrency markets, let’s say [Bitcoin](../b/bitcoin.md) has been experiencing a [downtrend](../d/downtrend.md) and a Long-Legged [Doji](../d/doji.md) forms near a significant support level. Coupled with high trading [volume](../v/volume.md), this pattern could prompt traders to enter long positions, expecting a [reversal](../r/reversal.md) to indicate the end of the bearish period. diff --git a/en/pedia/l/long-only_strategies.md b/en/pedia/l/long-only_strategies.md index e2cdac4f..f827ffe6 100644 --- a/en/pedia/l/long-only_strategies.md +++ b/en/pedia/l/long-only_strategies.md @@ -31,7 +31,7 @@ Growth investors target companies expected to grow at an above-average rate comp [Income](../i/income.md) [investing](../i/investing.md) strategy aims to generate returns through dividends or [interest](../i/interest.md) [income](../i/income.md). Investors focus on [stocks](../s/stock.md), bonds, or other financial instruments that consistently provide [income](../i/income.md), suitable for investors seeking regular [income](../i/income.md), such as retirees. ### 4. Index Investing -[Index investing](../i/index_investing.md) involves replicating the performance of a specific [index](../i/index.md) (e.g., S&P 500, Dow Jones). [Exchange](../e/exchange.md)-Traded Funds (ETFs) and [Index](../i/index.md) Funds are popular vehicles for this strategy. Investors benefit from lower fees and broad [market exposure](../m/market_exposure.md), making it a passive [investment strategy](../i/investment_strategy.md). +[Index investing](../i/index_investing.md) involves replicating the performance of a specific [index](../i/index_instrument.md) (e.g., S&P 500, Dow Jones). [Exchange](../e/exchange.md)-Traded Funds (ETFs) and [Index](../i/index_instrument.md) Funds are popular vehicles for this strategy. Investors benefit from lower fees and broad [market exposure](../m/market_exposure.md), making it a passive [investment strategy](../i/investment_strategy.md). ### 5. Sector and Industry Investing Sector [investing](../i/investing.md) focuses on particular sectors expected to [outperform](../o/outperform.md). Investors might concentrate on technology, healthcare, energy, or other sectors based on economic forecasts, [market](../m/market.md) conditions, or specific trends. diff --git a/en/pedia/l/long-term_equity_anticipation_securities_(leaps).md b/en/pedia/l/long-term_equity_anticipation_securities_(leaps).md index 15cbcde6..a5c67d5e 100644 --- a/en/pedia/l/long-term_equity_anticipation_securities_(leaps).md +++ b/en/pedia/l/long-term_equity_anticipation_securities_(leaps).md @@ -1,6 +1,6 @@ # Long-Term Equity Anticipation Securities (LEAPS) -Long-Term [Equity](../e/equity.md) Anticipation Securities, commonly known as LEAPS, are long-term [options](../o/options.md) contracts that allow investors to [capitalize](../c/capitalize.md) on the future movements of a stock or an [index](../i/index.md). These financial instruments are similar to standard [options](../o/options.md) but have expiration dates that are significantly further into the future, typically ranging from nine months to three years. LEAPS are available in the form of both calls and puts, allowing investors to [leverage](../l/leverage.md) their positions in anticipation of upward or downward [market](../m/market.md) movements. +Long-Term [Equity](../e/equity.md) Anticipation Securities, commonly known as LEAPS, are long-term [options](../o/options.md) contracts that allow investors to [capitalize](../c/capitalize.md) on the future movements of a stock or an [index](../i/index_instrument.md). These financial instruments are similar to standard [options](../o/options.md) but have expiration dates that are significantly further into the future, typically ranging from nine months to three years. LEAPS are available in the form of both calls and puts, allowing investors to [leverage](../l/leverage.md) their positions in anticipation of upward or downward [market](../m/market.md) movements. ## What are LEAPS? @@ -11,7 +11,7 @@ LEAPS provide investors with the right, but not the obligation, to buy or sell a 1. **[Strike Price](../s/strike_price.md):** The price at which the [underlying asset](../u/underlying_asset.md) can be bought or sold. 2. **[Expiration Date](../e/expiration_date.md):** The date on which the option contract expires, which can be as long as three years from the date of issuance. 3. **[Premium](../p/premium.md):** The price paid for purchasing the LEAPS contract. This tends to be higher than that of short-term [options](../o/options.md) due to the extended [time horizon](../t/time_horizon.md). -4. **[Underlying Asset](../u/underlying_asset.md):** The stock or [index](../i/index.md) that the LEAPS contract is based on. +4. **[Underlying Asset](../u/underlying_asset.md):** The stock or [index](../i/index_instrument.md) that the LEAPS contract is based on. ### Types of LEAPS diff --git a/en/pedia/l/long-term_growth_(ltg).md b/en/pedia/l/long-term_growth_(ltg).md index e9bf50ae..f5d664be 100644 --- a/en/pedia/l/long-term_growth_(ltg).md +++ b/en/pedia/l/long-term_growth_(ltg).md @@ -37,7 +37,7 @@ Bonds and other fixed-[income](../i/income.md) instruments [offer](../o/offer.md Mutual funds and [Exchange](../e/exchange.md)-Traded Funds (ETFs) [offer](../o/offer.md) diversified exposure to various [asset](../a/asset.md) classes and strategies. These instruments are managed by professionals and can focus on specific sectors, markets, or investment themes aligned with long-term growth principles. ##### Index Funds -[Index](../i/index.md) funds, which track major [market](../m/market.md) indices like the S&P 500, provide broad [market exposure](../m/market_exposure.md) and come with the benefit of lower management fees. [Investing](../i/investing.md) in [index](../i/index.md) funds allows LTG investors to participate in the overall [economic growth](../e/economic_growth.md) of the selected indices. +[Index](../i/index_instrument.md) funds, which track major [market](../m/market.md) indices like the S&P 500, provide broad [market exposure](../m/market_exposure.md) and come with the benefit of lower management fees. [Investing](../i/investing.md) in [index](../i/index_instrument.md) funds allows LTG investors to participate in the overall [economic growth](../e/economic_growth.md) of the selected indices. ### Risks and Considerations diff --git a/en/pedia/l/long-term_investments.md b/en/pedia/l/long-term_investments.md index 15ea81a0..a5b12a0b 100644 --- a/en/pedia/l/long-term_investments.md +++ b/en/pedia/l/long-term_investments.md @@ -14,7 +14,7 @@ Bonds are fixed-[income](../i/income.md) securities where an [investor](../i/inv ### Mutual Funds and ETFs -Mutual funds and [Exchange](../e/exchange.md)-Traded Funds (ETFs) are pooled investment vehicles that allow investors to buy a diversified portfolio of [stocks](../s/stock.md), bonds, or other securities. These can be actively managed or passively track an [index](../i/index.md), [offering](../o/offering.md) a way to diversify investments and reduce [risk](../r/risk.md) over the long term. +Mutual funds and [Exchange](../e/exchange.md)-Traded Funds (ETFs) are pooled investment vehicles that allow investors to buy a diversified portfolio of [stocks](../s/stock.md), bonds, or other securities. These can be actively managed or passively track an [index](../i/index_instrument.md), [offering](../o/offering.md) a way to diversify investments and reduce [risk](../r/risk.md) over the long term. ### Real Estate diff --git a/en/pedia/l/long_calendar_spread.md b/en/pedia/l/long_calendar_spread.md index bd577ff7..6620997d 100644 --- a/en/pedia/l/long_calendar_spread.md +++ b/en/pedia/l/long_calendar_spread.md @@ -19,7 +19,7 @@ A Long Calendar Spread is an [options](../o/options.md) [trading strategy](../t/ ## Execution Steps -1. **Select the [Underlying Asset](../u/underlying_asset.md):** Choose a stock or [index](../i/index.md) that you believe [will](../w/will.md) have low [volatility](../v/volatility.md). +1. **Select the [Underlying Asset](../u/underlying_asset.md):** Choose a stock or [index](../i/index_instrument.md) that you believe [will](../w/will.md) have low [volatility](../v/volatility.md). 2. **Select [Strike Price](../s/strike_price.md) and Expiry:** Determine the [strike price](../s/strike_price.md) and select two [options](../o/options.md) with different expiration dates. 3. **Buy and Sell [Options](../o/options.md):** Place trades to buy the longer-term option and sell the shorter-term option. diff --git a/en/pedia/l/long_iron_butterfly.md b/en/pedia/l/long_iron_butterfly.md index 3ee32232..47ee5788 100644 --- a/en/pedia/l/long_iron_butterfly.md +++ b/en/pedia/l/long_iron_butterfly.md @@ -22,7 +22,7 @@ The general structure follows the format: [Long Put](../l/long_put.md) @ Strike ### Setting Up the Trade -1. **Select the [Underlying Asset](../u/underlying_asset.md)**: Choose a stock or [index](../i/index.md) that you expect to have low [volatility](../v/volatility.md). +1. **Select the [Underlying Asset](../u/underlying_asset.md)**: Choose a stock or [index](../i/index_instrument.md) that you expect to have low [volatility](../v/volatility.md). 2. **Identify the Strike Prices and Expiration Dates**: Strike prices should be equidistant, and the [expiration date](../e/expiration_date.md) should allow sufficient time for the strategy to play out. 3. **Execute the Contracts**: Buy one put at the lower [strike price](../s/strike_price.md), sell one put and one call at the middle [strike price](../s/strike_price.md), and buy one call at the higher [strike price](../s/strike_price.md). diff --git a/en/pedia/l/long_position_analysis.md b/en/pedia/l/long_position_analysis.md index bb69fd94..af943696 100644 --- a/en/pedia/l/long_position_analysis.md +++ b/en/pedia/l/long_position_analysis.md @@ -24,7 +24,7 @@ The buy-and-[hold](../h/hold.md) strategy involves purchasing an [asset](../a/as ### Trend Following -[Trend](../t/trend.md)-following strategies aim to [capitalize](../c/capitalize.md) on the continuation of existing [market](../m/market.md) trends. Traders use [technical indicators](../t/technical_indicators.md) like moving averages, MACD, and the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) to identify and follow trends. This approach can be applied to various time frames and [asset](../a/asset.md) classes. +[Trend](../t/trend.md)-following strategies aim to [capitalize](../c/capitalize.md) on the continuation of existing [market](../m/market.md) trends. Traders use [technical indicators](../t/technical_indicators.md) like moving averages, MACD, and the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) to identify and follow trends. This approach can be applied to various time frames and [asset](../a/asset.md) classes. ### Value Investing diff --git a/en/pedia/l/long_run.md b/en/pedia/l/long_run.md index 17162b34..e2d64511 100644 --- a/en/pedia/l/long_run.md +++ b/en/pedia/l/long_run.md @@ -45,7 +45,7 @@ Long-run analysis must account for technological advances that can disrupt indus ## Examples and Case Studies ### Index Fund Growth -[Index](../i/index.md) funds, which aim to replicate the performance of a [market index](../m/market_index.md) (e.g., S&P 500), serve as a prime example of long-run performance. Historically, these funds have outperformed many actively managed funds over decades due to their lower fees and consistent [market exposure](../m/market_exposure.md). +[Index](../i/index_instrument.md) funds, which aim to replicate the performance of a [market index](../m/market_index.md) (e.g., S&P 500), serve as a prime example of long-run performance. Historically, these funds have outperformed many actively managed funds over decades due to their lower fees and consistent [market exposure](../m/market_exposure.md). ### Warren Buffet’s Berkshire Hathaway Warren Buffett’s investment philosophy emphasizes holding investment for the long haul. His company, [Berkshire Hathaway](../b/berkshire_hathaway.md), has thrived by acquiring and holding [undervalued](../u/undervalued.md) securities and businesses over extended periods, allowing compound growth and the realization of [intrinsic value](../i/intrinsic_value.md) over time. diff --git a/en/pedia/l/long_short_equity.md b/en/pedia/l/long_short_equity.md index 57858a36..52df5797 100644 --- a/en/pedia/l/long_short_equity.md +++ b/en/pedia/l/long_short_equity.md @@ -31,7 +31,7 @@ One of the primary benefits of a long/short [equity](../e/equity.md) strategy is The strategy provides [diversification benefits](../d/diversification_benefits.md) by allowing exposure to both bullish and bearish [market](../m/market.md) scenarios. This can lead to more consistent returns over time. ### Absolute Returns -Long/short [equity](../e/equity.md) aims to generate positive returns regardless of [market](../m/market.md) conditions, making it an attractive option for investors seeking absolute returns rather than relative performance compared to a [benchmark](../b/benchmark.md) [index](../i/index.md). +Long/short [equity](../e/equity.md) aims to generate positive returns regardless of [market](../m/market.md) conditions, making it an attractive option for investors seeking absolute returns rather than relative performance compared to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). ### Risk Management By going both long and short, investors can manage [risk](../r/risk.md) more effectively. For example, if the overall [market](../m/market.md) declines, short positions can provide a [hedge](../h/hedge.md), reducing the impact of falling long positions. diff --git a/en/pedia/l/long_short_fund.md b/en/pedia/l/long_short_fund.md index 051b477f..c5c95133 100644 --- a/en/pedia/l/long_short_fund.md +++ b/en/pedia/l/long_short_fund.md @@ -35,7 +35,7 @@ While [leverage](../l/leverage.md) can amplify returns, it also increases the [r ## Performance Metrics ### Absolute Returns -Unlike mutual funds that often aim to beat a specific [benchmark](../b/benchmark.md) [index](../i/index.md), Long/Short Funds focus on generating positive returns in any [market](../m/market.md) condition. Performance is measured by absolute returns rather than relative performance. +Unlike mutual funds that often aim to beat a specific [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), Long/Short Funds focus on generating positive returns in any [market](../m/market.md) condition. Performance is measured by absolute returns rather than relative performance. ### Alpha and Beta - **[Alpha](../a/alpha.md):** Represents the [fund](../f/fund.md)’s performance relative to its [expected return](../e/expected_return.md) based on [market](../m/market.md) movements. A positive [alpha](../a/alpha.md) indicates that the [fund](../f/fund.md) has outperformed what was expected given its [market exposure](../m/market_exposure.md). diff --git a/en/pedia/l/lookback_period_analysis.md b/en/pedia/l/lookback_period_analysis.md index f936c6fb..b1ad4e46 100644 --- a/en/pedia/l/lookback_period_analysis.md +++ b/en/pedia/l/lookback_period_analysis.md @@ -30,7 +30,7 @@ Raw financial data is collected from reliable data providers such as [Bloomberg] Traders select relevant [technical indicators](../t/technical_indicators.md) and metrics that rely on the lookback period. Common indicators include: - **Moving Averages**: Simple Moving Average (SMA), Exponential Moving Average (EMA) - - **Oscillators**: [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), [Stochastic Oscillator](../s/stochastic_oscillator.md) + - **Oscillators**: [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), [Stochastic Oscillator](../s/stochastic_oscillator.md) - **[Volatility](../v/volatility.md) Measures**: [Bollinger Bands](../b/bollinger_bands.md), [Average True Range](../a/average_true_range_(atr).md) (ATR) ### 3. Parameter Optimization diff --git a/en/pedia/l/lorenz_curve.md b/en/pedia/l/lorenz_curve.md index 558d2713..51a61411 100644 --- a/en/pedia/l/lorenz_curve.md +++ b/en/pedia/l/lorenz_curve.md @@ -91,11 +91,11 @@ The Generalized Lorenz Curve extends the standard Lorenz Curve by scaling it wit ### Atkinson Index -The Atkinson [Index](../i/index.md) is another measure of [income inequality](../i/income_inequality.md) that is adjusted for social [welfare](../w/welfare.md) considerations. It provides a sense of how inequality affects social [welfare](../w/welfare.md) and can be tailored to reflect different societal aversions to inequality. +The Atkinson [Index](../i/index_instrument.md) is another measure of [income inequality](../i/income_inequality.md) that is adjusted for social [welfare](../w/welfare.md) considerations. It provides a sense of how inequality affects social [welfare](../w/welfare.md) and can be tailored to reflect different societal aversions to inequality. ### Theil Index -The Theil [Index](../i/index.md) measures economic inequality by using the concept of entropy from information theory. It decomposes total inequality into within-group and between-group components, providing a more nuanced understanding of the sources of inequality. +The Theil [Index](../i/index_instrument.md) measures economic inequality by using the concept of entropy from information theory. It decomposes total inequality into within-group and between-group components, providing a more nuanced understanding of the sources of inequality. ## Conclusion diff --git a/en/pedia/l/lost_decade.md b/en/pedia/l/lost_decade.md index abe4c8ad..03a5adcb 100644 --- a/en/pedia/l/lost_decade.md +++ b/en/pedia/l/lost_decade.md @@ -10,7 +10,7 @@ Japan’s Lost Decade began in the early 1990s and extended well into the 2000s. #### Asset Bubble and Burst -During the late 1980s, Japan experienced a dramatic rise in [asset](../a/asset.md) prices. The [Nikkei](../n/nikkei.md) stock [index](../i/index.md) quintupled, and [real estate](../r/real_estate.md) prices in Tokyo soared to an unsustainable level. This [asset](../a/asset.md) bubble was fuelled by: +During the late 1980s, Japan experienced a dramatic rise in [asset](../a/asset.md) prices. The [Nikkei](../n/nikkei.md) stock [index](../i/index_instrument.md) quintupled, and [real estate](../r/real_estate.md) prices in Tokyo soared to an unsustainable level. This [asset](../a/asset.md) bubble was fuelled by: 1. **Loose [Monetary Policy](../m/monetary_policy.md):** The [Bank](../b/bank.md) of Japan (BoJ) maintained low-[interest](../i/interest.md) rates, which led to an increase in borrowing and speculative investments. 2. **Overconfidence:** Companies and investors believed Japan’s [economic growth](../e/economic_growth.md) would continue indefinitely, leading to reckless lending and investment. diff --git a/en/pedia/l/low-priced_stocks.md b/en/pedia/l/low-priced_stocks.md index 3038dddb..1ffb2e64 100644 --- a/en/pedia/l/low-priced_stocks.md +++ b/en/pedia/l/low-priced_stocks.md @@ -50,7 +50,7 @@ Though less common, some low-priced [stocks](../s/stock.md) do [trade](../t/trad ### Technical Analysis -[Technical analysis](../t/technical_analysis.md) focuses on statistical trends derived from trading activity, such as price movement and [volume](../v/volume.md). Traders use charts and [technical indicators](../t/technical_indicators.md) (e.g., moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md)) to identify patterns and make predictions about future price movements. +[Technical analysis](../t/technical_analysis.md) focuses on statistical trends derived from trading activity, such as price movement and [volume](../v/volume.md). Traders use charts and [technical indicators](../t/technical_indicators.md) (e.g., moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md)) to identify patterns and make predictions about future price movements. ### Sentiment Analysis diff --git a/en/pedia/l/low-risk_investing.md b/en/pedia/l/low-risk_investing.md index 7da47535..0f102ec9 100644 --- a/en/pedia/l/low-risk_investing.md +++ b/en/pedia/l/low-risk_investing.md @@ -16,9 +16,9 @@ Low-[risk](../r/risk.md) [investing](../i/investing.md), particularly in the con - **Description**: Statistical [arbitrage](../a/arbitrage.md) involves finding pricing inefficiencies between related financial instruments. These inefficiencies are typically temporary and can be exploited for [profit](../p/profit.md). - **Application**: By implementing [pairs trading](../p/pairs_trading.md) (buying one [asset](../a/asset.md) while shorting another), traders can [hedge](../h/hedge.md) [market risk](../m/market_risk.md), potentially lowering the overall [risk](../r/risk.md) profile. -3. **[Index](../i/index.md) [Arbitrage](../a/arbitrage.md)** - - **Description**: This strategy takes advantage of discrepancies between the price of an [index](../i/index.md) and the sum of its constituent [stocks](../s/stock.md). - - **Application**: [Algorithmic trading](../a/algorithmic_trading.md) systems buy [undervalued](../u/undervalued.md) [stocks](../s/stock.md) and short [overvalued](../o/overvalued.md) ones to balance the [index](../i/index.md), minimizing directional [market risk](../m/market_risk.md). +3. **[Index](../i/index_instrument.md) [Arbitrage](../a/arbitrage.md)** + - **Description**: This strategy takes advantage of discrepancies between the price of an [index](../i/index_instrument.md) and the sum of its constituent [stocks](../s/stock.md). + - **Application**: [Algorithmic trading](../a/algorithmic_trading.md) systems buy [undervalued](../u/undervalued.md) [stocks](../s/stock.md) and short [overvalued](../o/overvalued.md) ones to balance the [index](../i/index_instrument.md), minimizing directional [market risk](../m/market_risk.md). 4. **[Market](../m/market.md) Making** - **Description**: [Market](../m/market.md) making involves providing [liquidity](../l/liquidity.md) to the [market](../m/market.md) by placing both buy and sell orders for an [asset](../a/asset.md). The goal is to [profit](../p/profit.md) from the [bid-ask spread](../b/bid-ask_spread.md). diff --git a/en/pedia/l/low_beta_strategies.md b/en/pedia/l/low_beta_strategies.md index c1353fe3..ed6d3291 100644 --- a/en/pedia/l/low_beta_strategies.md +++ b/en/pedia/l/low_beta_strategies.md @@ -12,7 +12,7 @@ where: - \( \text{Cov}(R_i, R_m) \) is the [covariance](../c/covariance.md) between the returns of the [security](../s/security.md) and the returns of the [market](../m/market.md). - \( \text{Var}(R_m) \) is the variance of the [market](../m/market.md) returns. -The [market](../m/market.md) is typically represented as a broad [index](../i/index.md) like the S&P 500. [Beta](../b/beta.md) measures the expected move in a stock relative to movements in the [market](../m/market.md). For instance: +The [market](../m/market.md) is typically represented as a broad [index](../i/index_instrument.md) like the S&P 500. [Beta](../b/beta.md) measures the expected move in a stock relative to movements in the [market](../m/market.md). For instance: - A [beta](../b/beta.md) of 1 indicates the stock [will](../w/will.md) move with the [market](../m/market.md). - A [beta](../b/beta.md) less than 1 means the stock is less volatile than the [market](../m/market.md). - A [beta](../b/beta.md) greater than 1 indicates the stock is more volatile than the [market](../m/market.md). diff --git a/en/pedia/l/low_interest_rate_environment.md b/en/pedia/l/low_interest_rate_environment.md index 7db9053c..96b5e8d2 100644 --- a/en/pedia/l/low_interest_rate_environment.md +++ b/en/pedia/l/low_interest_rate_environment.md @@ -40,7 +40,7 @@ The [carry trade](../c/carry_trade.md) involves borrowing in a low-[interest rat In a LIRE, pair [trading strategies](../t/trading_strategies.md) can be used to [capitalize](../c/capitalize.md) on [relative value](../r/relative_value.md) [arbitrage](../a/arbitrage.md) between two correlated financial instruments. Algorithms can detect divergences from historical price relationships and execute trades to [profit](../p/profit.md) from those temporary imbalances. #### Volatility Arbitrage -Low-[interest](../i/interest.md) rates can lead to decreased [market](../m/market.md) [volatility](../v/volatility.md). Algo-traders can employ [volatility](../v/volatility.md) [arbitrage](../a/arbitrage.md) strategies, such as those based on the [volatility](../v/volatility.md) [index](../i/index.md) (VIX), to take advantage of mispricings in [options](../o/options.md) and other [derivative](../d/derivative.md) instruments. +Low-[interest](../i/interest.md) rates can lead to decreased [market](../m/market.md) [volatility](../v/volatility.md). Algo-traders can employ [volatility](../v/volatility.md) [arbitrage](../a/arbitrage.md) strategies, such as those based on the [volatility](../v/volatility.md) [index](../i/index_instrument.md) (VIX), to take advantage of mispricings in [options](../o/options.md) and other [derivative](../d/derivative.md) instruments. #### Machine Learning Models Machine learning and [artificial intelligence](../a/artificial_intelligence_in_trading.md) have become increasingly important in identifying patterns and [forecasting](../f/forecasting.md) [market](../m/market.md) movements in a low [interest rate](../i/interest_rate.md) environment. These models can process vast amounts of data and refine [trading strategies](../t/trading_strategies.md) more efficiently than traditional methods. diff --git a/en/pedia/l/low_volatility_anomaly.md b/en/pedia/l/low_volatility_anomaly.md index 418babcd..43f5b37f 100644 --- a/en/pedia/l/low_volatility_anomaly.md +++ b/en/pedia/l/low_volatility_anomaly.md @@ -70,7 +70,7 @@ Investment strategies based on the Low [Volatility](../v/volatility.md) [Anomaly Many financial institutions [offer](../o/offer.md) products designed to exploit the Low [Volatility](../v/volatility.md) [Anomaly](../a/anomaly.md), including [Exchange](../e/exchange.md)-Traded Funds (ETFs) and mutual funds. Some notable examples include: - **[iShares](../i/ishares.md) Edge MSCI Minimum [Volatility](../v/volatility.md) USA ETF (USMV)**: This ETF aims to provide exposure to U.S. [stocks](../s/stock.md) with lower [volatility](../v/volatility.md) characteristics. -- **Invesco S&P 500 Low [Volatility](../v/volatility.md) ETF (SPLV)**: This ETF focuses on the 100 least volatile [stocks](../s/stock.md) in the S&P 500 [Index](../i/index.md). +- **Invesco S&P 500 Low [Volatility](../v/volatility.md) ETF (SPLV)**: This ETF focuses on the 100 least volatile [stocks](../s/stock.md) in the S&P 500 [Index](../i/index_instrument.md). - **PowerShares S&P International Developed Low [Volatility](../v/volatility.md) Portfolio (IDLV)**: This ETF targets low-[volatility](../v/volatility.md) [stocks](../s/stock.md) in developed markets outside the U.S. ### Performance and Drawbacks diff --git a/en/pedia/l/low_volume_pullback.md b/en/pedia/l/low_volume_pullback.md index 86c5a9ea..4f4e1a02 100644 --- a/en/pedia/l/low_volume_pullback.md +++ b/en/pedia/l/low_volume_pullback.md @@ -32,7 +32,7 @@ Several [technical analysis tools](../t/technical_analysis_tools.md) and indicat 4. **[Stochastic Oscillator](../s/stochastic_oscillator.md)**: This [momentum](../m/momentum.md) [indicator](../i/indicator.md) can help identify [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions, which might coincide with pullbacks. -5. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: RSI can indicate the strength of the price movement and help traders determine whether a [pullback](../p/pullback.md) is a buying opportunity. +5. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: RSI can indicate the strength of the price movement and help traders determine whether a [pullback](../p/pullback.md) is a buying opportunity. ## Strategies for Trading Low Volume Pullbacks diff --git a/en/pedia/l/lusaka_stock_exchange_(luse).md b/en/pedia/l/lusaka_stock_exchange_(luse).md index e440cc6a..4f52d269 100644 --- a/en/pedia/l/lusaka_stock_exchange_(luse).md +++ b/en/pedia/l/lusaka_stock_exchange_(luse).md @@ -42,7 +42,7 @@ Trading on LuSE is conducted through an electronic trading system, which matches ### Market Index -The LuSE All Share [Index](../i/index.md) (LASI) is the [benchmark](../b/benchmark.md) [index](../i/index.md) of the Lusaka Stock [Exchange](../e/exchange.md). It tracks the performance of all [listed](../l/listed.md) companies and serves as a barometer of the overall [market](../m/market.md) performance. The LASI is a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md), reflecting the [value](../v/value.md) of [listed](../l/listed.md) companies based on their [market](../m/market.md) caps. +The LuSE All Share [Index](../i/index_instrument.md) (LASI) is the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) of the Lusaka Stock [Exchange](../e/exchange.md). It tracks the performance of all [listed](../l/listed.md) companies and serves as a barometer of the overall [market](../m/market.md) performance. The LASI is a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md), reflecting the [value](../v/value.md) of [listed](../l/listed.md) companies based on their [market](../m/market.md) caps. ## Key Listings diff --git a/en/pedia/m/macd_moving_average_convergence_divergence.md b/en/pedia/m/macd_moving_average_convergence_divergence.md index f8e9ee2e..5a9ad64a 100644 --- a/en/pedia/m/macd_moving_average_convergence_divergence.md +++ b/en/pedia/m/macd_moving_average_convergence_divergence.md @@ -76,7 +76,7 @@ Incorporating [divergence](../d/divergence.md) into [trading strategies](../t/tr To mitigate some of its limitations, many traders use the MACD in conjunction with other [technical indicators](../t/technical_indicators.md) and analysis techniques to confirm signals and improve trading accuracy. Common complementary tools include: -1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: The RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions. Combining MACD with RSI can help filter out [false signals](../f/false_signals_in_trading.md) and enhance trading decisions. +1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: The RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions. Combining MACD with RSI can help filter out [false signals](../f/false_signals_in_trading.md) and enhance trading decisions. 2. **Moving Averages**: Using longer-term moving averages alongside MACD can help confirm [trend](../t/trend.md) direction and add a layer of [trend analysis](../t/trend_analysis.md). diff --git a/en/pedia/m/macroeconomic_factor.md b/en/pedia/m/macroeconomic_factor.md index 950c6a5b..4bf8502e 100644 --- a/en/pedia/m/macroeconomic_factor.md +++ b/en/pedia/m/macroeconomic_factor.md @@ -13,7 +13,7 @@ Gross Domestic Product (GDP) is perhaps the most comprehensive measure of an [ec - **GDP Growth Rate**: The rate at which a country’s GDP is growing or shrinking. High GDP [growth rates](../g/growth_rates_in_trading.md) are typically associated with prosperity, while negative rates indicate economic decline. ### Inflation -[Inflation](../i/inflation.md) measures the rate at which the general level of prices for goods and services is rising, and subsequently, [purchasing power](../p/purchasing_power.md) is falling. It is usually measured by the Consumer Price [Index](../i/index.md) (CPI) or the Producer Price [Index](../i/index.md) (PPI). +[Inflation](../i/inflation.md) measures the rate at which the general level of prices for goods and services is rising, and subsequently, [purchasing power](../p/purchasing_power.md) is falling. It is usually measured by the Consumer Price [Index](../i/index_instrument.md) (CPI) or the Producer Price [Index](../i/index_instrument.md) (PPI). - **CPI**: Monitors changes in the [price level](../p/price_level.md) of a basket of [consumer goods](../c/consumer_goods.md) and services purchased by households. - **PPI**: Measures the average change in selling prices received by domestic producers for their output. diff --git a/en/pedia/m/macroeconomics.md b/en/pedia/m/macroeconomics.md index b41d4fc5..42b6a0f2 100644 --- a/en/pedia/m/macroeconomics.md +++ b/en/pedia/m/macroeconomics.md @@ -14,7 +14,7 @@ The [unemployment rate](../u/unemployment_rate.md) is another crucial [economic ### Inflation and Price Indices -[Inflation](../i/inflation.md) represents the rate at which the general level of prices for goods and services is rising, subsequently eroding [purchasing power](../p/purchasing_power.md). Economists measure [inflation](../i/inflation.md) using various price indices, such as the Consumer Price [Index](../i/index.md) (CPI) and the Producer Price [Index](../i/index.md) (PPI). [Inflation](../i/inflation.md) is an important [factor](../f/factor.md) in macroeconomics because it affects the [cost of living](../c/cost_of_living.md), savings, investment returns, and policy decisions. +[Inflation](../i/inflation.md) represents the rate at which the general level of prices for goods and services is rising, subsequently eroding [purchasing power](../p/purchasing_power.md). Economists measure [inflation](../i/inflation.md) using various price indices, such as the Consumer Price [Index](../i/index_instrument.md) (CPI) and the Producer Price [Index](../i/index_instrument.md) (PPI). [Inflation](../i/inflation.md) is an important [factor](../f/factor.md) in macroeconomics because it affects the [cost of living](../c/cost_of_living.md), savings, investment returns, and policy decisions. ### National Income diff --git a/en/pedia/m/malawi_stock_exchange_(mse).md b/en/pedia/m/malawi_stock_exchange_(mse).md index 35ab838e..f302ad06 100644 --- a/en/pedia/m/malawi_stock_exchange_(mse).md +++ b/en/pedia/m/malawi_stock_exchange_(mse).md @@ -52,8 +52,8 @@ The Malawi Stock [Exchange](../e/exchange.md) offers various financial products, The performance of the Malawi Stock [Exchange](../e/exchange.md) is measured by various [market](../m/market.md) indices, including: -- **Malawi All Share [Index](../i/index.md) (MASI)**: The main [index](../i/index.md) that tracks the performance of all [listed](../l/listed.md) companies on the MSE. -- **Domestic Share [Index](../i/index.md) (DSI)**: Tracks the performance of domestic companies [listed](../l/listed.md) on the MSE. +- **Malawi All Share [Index](../i/index_instrument.md) (MASI)**: The main [index](../i/index_instrument.md) that tracks the performance of all [listed](../l/listed.md) companies on the MSE. +- **Domestic Share [Index](../i/index_instrument.md) (DSI)**: Tracks the performance of domestic companies [listed](../l/listed.md) on the MSE. ## Challenges and Opportunities diff --git a/en/pedia/m/malaysian_stock_exchange_(bursa_malaysia).md b/en/pedia/m/malaysian_stock_exchange_(bursa_malaysia).md index 45625978..9376426e 100644 --- a/en/pedia/m/malaysian_stock_exchange_(bursa_malaysia).md +++ b/en/pedia/m/malaysian_stock_exchange_(bursa_malaysia).md @@ -34,7 +34,7 @@ ETFs are investment funds traded on stock exchanges, much like individual [stock REITs are companies that own, operate, or [finance](../f/finance.md) [income](../i/income.md)-producing [real estate](../r/real_estate.md). They [offer](../o/offer.md) an opportunity for investors to [gain](../g/gain.md) exposure to the [real estate](../r/real_estate.md) [market](../m/market.md) without having to own property directly. ### Islamic Products -Malaysia, being a pioneer in Islamic [finance](../f/finance.md), offers a [range](../r/range.md) of Shariah-compliant products. The **FTSE Bursa Malaysia Hijrah Shariah [Index](../i/index.md)** and the **FTSE Bursa Malaysia EMAS Shariah [Index](../i/index.md)** are examples of indices that track the performance of Shariah-compliant companies. +Malaysia, being a pioneer in Islamic [finance](../f/finance.md), offers a [range](../r/range.md) of Shariah-compliant products. The **FTSE Bursa Malaysia Hijrah Shariah [Index](../i/index_instrument.md)** and the **FTSE Bursa Malaysia EMAS Shariah [Index](../i/index_instrument.md)** are examples of indices that track the performance of Shariah-compliant companies. ## Trading Mechanisms and Technology @@ -85,16 +85,16 @@ For [real-time market data](../r/real-time_market_data.md), Bursa Malaysia provi Bursa Malaysia offers a [range](../r/range.md) of [market](../m/market.md) indices to measure the performance of different [market](../m/market.md) segments. Key indices include: ### FTSE Bursa Malaysia KLCI (FBM KLCI) -The FBM KLCI is the primary [benchmark](../b/benchmark.md) [index](../i/index.md), comprising the top 30 companies by [market capitalization](../m/market_capitalization.md) on the Main [Market](../m/market.md). +The FBM KLCI is the primary [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), comprising the top 30 companies by [market capitalization](../m/market_capitalization.md) on the Main [Market](../m/market.md). ### FTSE Bursa Malaysia EMAS Index -The EMAS [Index](../i/index.md) includes all the constituents of the FTSE Bursa Malaysia 100 [Index](../i/index.md) along with other qualifying companies [listed](../l/listed.md) on the Main and ACE Markets. +The EMAS [Index](../i/index_instrument.md) includes all the constituents of the FTSE Bursa Malaysia 100 [Index](../i/index_instrument.md) along with other qualifying companies [listed](../l/listed.md) on the Main and ACE Markets. ### FTSE Bursa Malaysia Small Cap Index -This [index](../i/index.md) tracks the performance of smaller companies that do not qualify for inclusion in the FBM KLCI or EMAS indices. +This [index](../i/index_instrument.md) tracks the performance of smaller companies that do not qualify for inclusion in the FBM KLCI or EMAS indices. ### FTSE Bursa Malaysia Hijrah Shariah Index -The Hijrah Shariah [Index](../i/index.md) tracks the performance of Shariah-compliant companies, providing a [benchmark](../b/benchmark.md) for Islamic investors. +The Hijrah Shariah [Index](../i/index_instrument.md) tracks the performance of Shariah-compliant companies, providing a [benchmark](../b/benchmark.md) for Islamic investors. ## Corporate Governance diff --git a/en/pedia/m/managed_account.md b/en/pedia/m/managed_account.md index 011589c9..11c0dde9 100644 --- a/en/pedia/m/managed_account.md +++ b/en/pedia/m/managed_account.md @@ -28,7 +28,7 @@ One of the most distinguishing features of managed accounts is the level of cust ### Active Management -Managed accounts are actively managed, meaning that the [money manager](../m/money_manager.md) frequently buys and sells securities to achieve the client’s investment objectives. This stands in contrast to passively managed investments, like [index](../i/index.md) funds, which aim to replicate a [market index](../m/market_index.md). +Managed accounts are actively managed, meaning that the [money manager](../m/money_manager.md) frequently buys and sells securities to achieve the client’s investment objectives. This stands in contrast to passively managed investments, like [index](../i/index_instrument.md) funds, which aim to replicate a [market index](../m/market_index.md). ### Transparency diff --git a/en/pedia/m/managed_futures.md b/en/pedia/m/managed_futures.md index 21648b6e..148e3448 100644 --- a/en/pedia/m/managed_futures.md +++ b/en/pedia/m/managed_futures.md @@ -14,7 +14,7 @@ The concept of managed [futures](../f/futures.md) dates back to the 1970s when t ### Trend Following [Trend](../t/trend.md)-following is one of the most popular and widely used strategies in managed [futures](../f/futures.md). It relies on the premise that markets often move in trends, which can be exploited by taking positions in the direction of the prevailing [market](../m/market.md) movement. [Trend](../t/trend.md)-following strategies typically involve: - **Moving Averages**: Utilizing [moving average crossovers](../m/moving_average_crossovers.md) to identify trends. -- **[Momentum Indicators](../m/momentum_indicators.md)**: Tools like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) and Moving Average Convergence [Divergence](../d/divergence.md) (MACD) to spot potential [trade](../t/trade.md) opportunities. +- **[Momentum Indicators](../m/momentum_indicators.md)**: Tools like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) and Moving Average Convergence [Divergence](../d/divergence.md) (MACD) to spot potential [trade](../t/trade.md) opportunities. ### Arbitrage [Arbitrage](../a/arbitrage.md) strategies in managed [futures](../f/futures.md) aim to exploit price discrepancies between related instruments or markets. These opportunities arise from inefficiencies in the markets and can involve: diff --git a/en/pedia/m/management_fee.md b/en/pedia/m/management_fee.md index 680006c6..bfb311a1 100644 --- a/en/pedia/m/management_fee.md +++ b/en/pedia/m/management_fee.md @@ -24,7 +24,7 @@ Mutual funds are professionally managed investment funds that pool [money](../m/ ### Exchange-Traded Funds (ETFs) -ETFs are investment funds that [trade](../t/trade.md) on stock exchanges and aim to track the performance of a specific [index](../i/index.md) or [asset class](../a/asset_class.md). ETFs generally have lower management fees compared to mutual funds, often ranging from 0.05% to 0.75% of AUM, due to their passive management and lower operating expenses. +ETFs are investment funds that [trade](../t/trade.md) on stock exchanges and aim to track the performance of a specific [index](../i/index_instrument.md) or [asset class](../a/asset_class.md). ETFs generally have lower management fees compared to mutual funds, often ranging from 0.05% to 0.75% of AUM, due to their passive management and lower operating expenses. ### Private Equity Funds diff --git a/en/pedia/m/market-adjusted_return.md b/en/pedia/m/market-adjusted_return.md index fbb42ea5..4ad63cc2 100644 --- a/en/pedia/m/market-adjusted_return.md +++ b/en/pedia/m/market-adjusted_return.md @@ -1,10 +1,10 @@ # Market-Adjusted Return -[Market](../m/market.md)-adjusted [return](../r/return.md) is a crucial concept in the realm of [finance](../f/finance.md), specifically in [portfolio management](../p/portfolio_management.md) and performance measurement. This metric serves as a means to evaluate the performance of an investment [asset](../a/asset.md) by comparing it relative to a [benchmark](../b/benchmark.md) [index](../i/index.md) that represents the overall [market](../m/market.md). Essentially, [market](../m/market.md)-adjusted [return](../r/return.md) helps investors understand how well or poorly an investment has performed after [accounting](../a/accounting.md) for the general movements of the [market](../m/market.md). This is particularly vital when it comes to isolating the performance attributed to the investment's unique characteristics and the competence of the [portfolio manager](../p/portfolio_manager.md), rather than the movements of the [market](../m/market.md) as a whole. +[Market](../m/market.md)-adjusted [return](../r/return.md) is a crucial concept in the realm of [finance](../f/finance.md), specifically in [portfolio management](../p/portfolio_management.md) and performance measurement. This metric serves as a means to evaluate the performance of an investment [asset](../a/asset.md) by comparing it relative to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) that represents the overall [market](../m/market.md). Essentially, [market](../m/market.md)-adjusted [return](../r/return.md) helps investors understand how well or poorly an investment has performed after [accounting](../a/accounting.md) for the general movements of the [market](../m/market.md). This is particularly vital when it comes to isolating the performance attributed to the investment's unique characteristics and the competence of the [portfolio manager](../p/portfolio_manager.md), rather than the movements of the [market](../m/market.md) as a whole. ### Definition and Importance -[Market](../m/market.md)-adjusted [return](../r/return.md) is calculated by taking the raw [return](../r/return.md) of the investment minus the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index.md) over the same period. This provides a more accurate measure of an [asset](../a/asset.md)'s performance by controlling for the [market](../m/market.md) effects. For instance, if the S&P 500 [index](../i/index.md) returns 10% over a year, and a specific stock returns 15%, the [market](../m/market.md)-adjusted [return](../r/return.md) for that stock would be 5%. This signifies that 5% of the stock's [return](../r/return.md) is attributable to factors other than the general [market](../m/market.md) performance. +[Market](../m/market.md)-adjusted [return](../r/return.md) is calculated by taking the raw [return](../r/return.md) of the investment minus the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) over the same period. This provides a more accurate measure of an [asset](../a/asset.md)'s performance by controlling for the [market](../m/market.md) effects. For instance, if the S&P 500 [index](../i/index_instrument.md) returns 10% over a year, and a specific stock returns 15%, the [market](../m/market.md)-adjusted [return](../r/return.md) for that stock would be 5%. This signifies that 5% of the stock's [return](../r/return.md) is attributable to factors other than the general [market](../m/market.md) performance. The importance of [market](../m/market.md)-adjusted [return](../r/return.md) cannot be overstated. It is a fundamental tool for both individual and institutional investors in understanding the skill and decision-making quality of a [portfolio manager](../p/portfolio_manager.md). Moreover, it helps in attributing the correct factors affecting the performance of an investment. @@ -16,7 +16,7 @@ To compute the [market](../m/market.md)-adjusted [return](../r/return.md), follo 2. **Identify the Investment's [Return](../r/return.md):** Calculate the [total return](../t/total_return.md) of the investment over the chosen period. This [total return](../t/total_return.md) includes both [capital](../c/capital.md) gains and dividends or [interest](../i/interest.md) earned. -3. **Identify the [Benchmark](../b/benchmark.md)'s [Return](../r/return.md):** Determine the [return](../r/return.md) of the chosen [benchmark](../b/benchmark.md) [index](../i/index.md) over the same period. Commonly used benchmarks include the S&P 500, [NASDAQ](../n/nasdaq.md) Composite, or Russell 2000. +3. **Identify the [Benchmark](../b/benchmark.md)'s [Return](../r/return.md):** Determine the [return](../r/return.md) of the chosen [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) over the same period. Commonly used benchmarks include the S&P 500, [NASDAQ](../n/nasdaq.md) Composite, or Russell 2000. 4. **Calculate the [Market](../m/market.md)-Adjusted [Return](../r/return.md):** Subtract the [benchmark](../b/benchmark.md)'s [return](../r/return.md) from the investment’s [return](../r/return.md): \[ diff --git a/en/pedia/m/market-cap_weighted_index.md b/en/pedia/m/market-cap_weighted_index.md index 23f55f35..817a8b98 100644 --- a/en/pedia/m/market-cap_weighted_index.md +++ b/en/pedia/m/market-cap_weighted_index.md @@ -1,6 +1,6 @@ # Market-Cap Weighted Index -A **[market](../m/market.md)-cap [weighted](../w/weighted.md) [index](../i/index.md)**, also known as a [capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md), is a type of stock [market index](../m/market_index.md) in which individual components are [weighted](../w/weighted.md) according to their [market capitalization](../m/market_capitalization.md)—meaning, the total [market value](../m/market_value.md) of a company's outstanding [shares](../s/shares.md). This means that the [stocks](../s/stock.md) with the largest [market](../m/market.md) caps have the greatest influence on the performance of the [index](../i/index.md). +A **[market](../m/market.md)-cap [weighted](../w/weighted.md) [index](../i/index_instrument.md)**, also known as a [capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md), is a type of stock [market index](../m/market_index.md) in which individual components are [weighted](../w/weighted.md) according to their [market capitalization](../m/market_capitalization.md)—meaning, the total [market value](../m/market_value.md) of a company's outstanding [shares](../s/shares.md). This means that the [stocks](../s/stock.md) with the largest [market](../m/market.md) caps have the greatest influence on the performance of the [index](../i/index_instrument.md). ### Understanding Market Capitalization @@ -16,11 +16,11 @@ Before diving deeper into [market](../m/market.md)-cap-[weighted](../w/weighted. ### How Market-Cap Weighted Indexes Work -In a [market](../m/market.md)-cap-[weighted](../w/weighted.md) [index](../i/index.md), each stock is represented in proportion to its [market capitalization](../m/market_capitalization.md). To calculate the [index](../i/index.md), each stock’s [market](../m/market.md) cap is determined and then weighed against the total [market](../m/market.md) cap of all the [stocks](../s/stock.md) in the [index](../i/index.md). The formula for a [market](../m/market.md)-cap-[weighted](../w/weighted.md) [index](../i/index.md) can generally be represented as: +In a [market](../m/market.md)-cap-[weighted](../w/weighted.md) [index](../i/index_instrument.md), each stock is represented in proportion to its [market capitalization](../m/market_capitalization.md). To calculate the [index](../i/index_instrument.md), each stock’s [market](../m/market.md) cap is determined and then weighed against the total [market](../m/market.md) cap of all the [stocks](../s/stock.md) in the [index](../i/index_instrument.md). The formula for a [market](../m/market.md)-cap-[weighted](../w/weighted.md) [index](../i/index_instrument.md) can generally be represented as: -- **[Index](../i/index.md) [Value](../v/value.md)** = (Current [Market Value](../m/market_value.md) of the [Index](../i/index.md) / Base [Market Value](../m/market_value.md) of the [Index](../i/index.md)) × Base [Index](../i/index.md) [Value](../v/value.md) +- **[Index](../i/index_instrument.md) [Value](../v/value.md)** = (Current [Market Value](../m/market_value.md) of the [Index](../i/index_instrument.md) / Base [Market Value](../m/market_value.md) of the [Index](../i/index_instrument.md)) × Base [Index](../i/index_instrument.md) [Value](../v/value.md) -The **Current [Market Value](../m/market_value.md) of the [Index](../i/index.md)** is the sum of the [market](../m/market.md) values of all the [stocks](../s/stock.md) within the [index](../i/index.md) at a given time. The **Base [Market Value](../m/market_value.md) of the [Index](../i/index.md)** is the sum of the [market](../m/market.md) values of all the [stocks](../s/stock.md) in the [index](../i/index.md) at its inception. The **Base [Index](../i/index.md) [Value](../v/value.md)** is the arbitrary [value](../v/value.md), often 100, assigned to the [index](../i/index.md) at the time of inception to make it a more workable number. +The **Current [Market Value](../m/market_value.md) of the [Index](../i/index_instrument.md)** is the sum of the [market](../m/market.md) values of all the [stocks](../s/stock.md) within the [index](../i/index_instrument.md) at a given time. The **Base [Market Value](../m/market_value.md) of the [Index](../i/index_instrument.md)** is the sum of the [market](../m/market.md) values of all the [stocks](../s/stock.md) in the [index](../i/index_instrument.md) at its inception. The **Base [Index](../i/index_instrument.md) [Value](../v/value.md)** is the arbitrary [value](../v/value.md), often 100, assigned to the [index](../i/index_instrument.md) at the time of inception to make it a more workable number. ### Examples of Market-Cap Weighted Indexes @@ -28,19 +28,19 @@ The **Current [Market Value](../m/market_value.md) of the [Index](../i/index.md) #### S&P 500 -The S&P 500 [index](../i/index.md) is one of the most well-known [market](../m/market.md)-cap-[weighted](../w/weighted.md) indexes globally. This [index](../i/index.md) includes 500 of the largest companies [listed](../l/listed.md) on stock exchanges in the United States. +The S&P 500 [index](../i/index_instrument.md) is one of the most well-known [market](../m/market.md)-cap-[weighted](../w/weighted.md) indexes globally. This [index](../i/index_instrument.md) includes 500 of the largest companies [listed](../l/listed.md) on stock exchanges in the United States. - **More information**: [S&P Dow Jones Indices](https://www.spglobal.com/spdji/en/indices/equity/sp-500/) #### NASDAQ-100 -The [NASDAQ](../n/nasdaq.md)-100 [Index](../i/index.md) comprises 100 of the largest non-financial companies [listed](../l/listed.md) on the [NASDAQ](../n/nasdaq.md) [stock market](../s/stock_market.md). It includes [industry](../i/industry.md) leaders in technology as well as non-tech sectors. +The [NASDAQ](../n/nasdaq.md)-100 [Index](../i/index_instrument.md) comprises 100 of the largest non-financial companies [listed](../l/listed.md) on the [NASDAQ](../n/nasdaq.md) [stock market](../s/stock_market.md). It includes [industry](../i/industry.md) leaders in technology as well as non-tech sectors. - **More information**: [NASDAQ](https://www.nasdaq.com/market-activity/quotes/real-time-index/ndx) #### FTSE 100 -The FTSE 100 [Index](../i/index.md) includes the 100 companies [listed](../l/listed.md) on the London Stock [Exchange](../e/exchange.md) with the highest [market capitalization](../m/market_capitalization.md). +The FTSE 100 [Index](../i/index_instrument.md) includes the 100 companies [listed](../l/listed.md) on the London Stock [Exchange](../e/exchange.md) with the highest [market capitalization](../m/market_capitalization.md). - **More information**: [London Stock Exchange](https://www.londonstockexchange.com/indices/ftse-100) @@ -48,11 +48,11 @@ The FTSE 100 [Index](../i/index.md) includes the 100 companies [listed](../l/lis #### Reflects Market Movements -[Market](../m/market.md)-cap [weighted](../w/weighted.md) indexes automatically adjust to reflect changes in stock prices. As a company's stock price rises or falls, its [market](../m/market.md) cap does the same, which recalibrates its impact on the [index](../i/index.md) accordingly. +[Market](../m/market.md)-cap [weighted](../w/weighted.md) indexes automatically adjust to reflect changes in stock prices. As a company's stock price rises or falls, its [market](../m/market.md) cap does the same, which recalibrates its impact on the [index](../i/index_instrument.md) accordingly. #### Ease of Replication -These indexes are easy to replicate through [index](../i/index.md) funds and ETFs, allowing investors to mimetically [gain](../g/gain.md) from broad [market](../m/market.md) trends by efficiently [investing](../i/investing.md) in a diversified portfolio. +These indexes are easy to replicate through [index](../i/index_instrument.md) funds and ETFs, allowing investors to mimetically [gain](../g/gain.md) from broad [market](../m/market.md) trends by efficiently [investing](../i/investing.md) in a diversified portfolio. #### Reduces Frequent Rebalancing @@ -62,15 +62,15 @@ Since [market](../m/market.md)-cap weighting automatically adjusts by price move #### Over-Concentration in Large-Cap Stocks -One critical disadvantage is the potential over-concentration in [large-cap stocks](../l/large_cap_stocks.md). This may lead the [index](../i/index.md) to be disproportionately influenced by the movements of the largest companies, reducing the impact of smaller [stocks](../s/stock.md)' performance on the [index](../i/index.md). +One critical disadvantage is the potential over-concentration in [large-cap stocks](../l/large_cap_stocks.md). This may lead the [index](../i/index_instrument.md) to be disproportionately influenced by the movements of the largest companies, reducing the impact of smaller [stocks](../s/stock.md)' performance on the [index](../i/index_instrument.md). #### Bubble Risk -Heavy weighting of top-performing [stocks](../s/stock.md) can sometimes inflate [valuation](../v/valuation.md) [bubbles](../b/bubble.md). If larger companies are [overvalued](../o/overvalued.md), the entire [index](../i/index.md) could be considered to be at high [risk](../r/risk.md) of [correction](../c/correction.md) once those [stocks](../s/stock.md) adjust in price. +Heavy weighting of top-performing [stocks](../s/stock.md) can sometimes inflate [valuation](../v/valuation.md) [bubbles](../b/bubble.md). If larger companies are [overvalued](../o/overvalued.md), the entire [index](../i/index_instrument.md) could be considered to be at high [risk](../r/risk.md) of [correction](../c/correction.md) once those [stocks](../s/stock.md) adjust in price. #### Limited Exposure to Small-Cap Stocks -Smaller companies may be underrepresented in a [market](../m/market.md)-cap [weighted](../w/weighted.md) [index](../i/index.md). These companies, which sometimes [offer](../o/offer.md) higher growth potential, could be inadequately [weighted](../w/weighted.md) despite their potentially high returns. +Smaller companies may be underrepresented in a [market](../m/market.md)-cap [weighted](../w/weighted.md) [index](../i/index_instrument.md). These companies, which sometimes [offer](../o/offer.md) higher growth potential, could be inadequately [weighted](../w/weighted.md) despite their potentially high returns. ### Alternatives to Market-Cap Weighted Indexes @@ -78,7 +78,7 @@ To address the drawbacks, various alternatives to [market](../m/market.md)-cap w #### Equal-Weighted Indexes -In these indexes, every stock carries the same weight, regardless of its [market](../m/market.md) cap. This reduces the concentration [risk](../r/risk.md), providing a more balanced representation of the [index](../i/index.md) components. +In these indexes, every stock carries the same weight, regardless of its [market](../m/market.md) cap. This reduces the concentration [risk](../r/risk.md), providing a more balanced representation of the [index](../i/index_instrument.md) components. #### Price-Weighted Indexes diff --git a/en/pedia/m/market-on-close_order_(moc).md b/en/pedia/m/market-on-close_order_(moc).md index 621dac4e..53c481b7 100644 --- a/en/pedia/m/market-on-close_order_(moc).md +++ b/en/pedia/m/market-on-close_order_(moc).md @@ -31,7 +31,7 @@ MOC orders are typically entered during the trading day but are not executed unt ## Use Cases 1. **End-of-Day Investment Strategies**: Portfolio managers and institutional investors may use MOC orders to align their [holdings](../h/holdings.md) with end-of-day benchmarks such as indexes, ensuring portfolio valuations reflect the final [market](../m/market.md) prices. -2. **[Index](../i/index.md) Funds and ETFs**: [Fund](../f/fund.md) managers of [index](../i/index.md)-based investment vehicles often use MOC orders to rebalance portfolios in line with [index](../i/index.md) constituent changes. +2. **[Index](../i/index_instrument.md) Funds and ETFs**: [Fund](../f/fund.md) managers of [index](../i/index_instrument.md)-based investment vehicles often use MOC orders to rebalance portfolios in line with [index](../i/index_instrument.md) constituent changes. 3. **Corporate Actions**: Companies engaging in stock buybacks or other corporate actions may utilize MOC orders to carry out large transactions without significantly affecting intraday [market](../m/market.md) prices. 4. **[Event-Driven Trading](../e/event-driven_trading.md)**: Traders focusing on [market](../m/market.md)-moving events (e.g., [earnings](../e/earnings.md) releases, economic data) may use MOC orders to [capitalize](../c/capitalize.md) on information released shortly before the close. diff --git a/en/pedia/m/market_beta_analysis.md b/en/pedia/m/market_beta_analysis.md index e8c323cc..b658013a 100644 --- a/en/pedia/m/market_beta_analysis.md +++ b/en/pedia/m/market_beta_analysis.md @@ -4,7 +4,7 @@ ### Defining Beta -[Beta](../b/beta.md) is a measure derived from [regression analysis](../r/regression_analysis.md), where the returns of an individual [security](../s/security.md) are regressed against the returns of a [benchmark](../b/benchmark.md) [index](../i/index.md). The formula for calculating [beta](../b/beta.md) is: +[Beta](../b/beta.md) is a measure derived from [regression analysis](../r/regression_analysis.md), where the returns of an individual [security](../s/security.md) are regressed against the returns of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). The formula for calculating [beta](../b/beta.md) is: `[Beta](../b/beta.md) (β) = [Covariance](../c/covariance.md)([Return](../r/return.md) of the [security](../s/security.md), [Return](../r/return.md) of the [market](../m/market.md)) / Variance([Return](../r/return.md) of the [market](../m/market.md))` diff --git a/en/pedia/m/market_breadth.md b/en/pedia/m/market_breadth.md index 7c75b0c4..cf7d66b4 100644 --- a/en/pedia/m/market_breadth.md +++ b/en/pedia/m/market_breadth.md @@ -38,11 +38,11 @@ This [oscillator](../o/oscillator.md) helps traders identify the strength of [ma #### McClellan Summation Index -Building on the [McClellan Oscillator](../m/mcclellan_oscillator.md), the McClellan Summation [Index](../i/index.md) is a cumulative measure that provides an overall view of [market](../m/market.md) breadth over a more extended period. It is calculated by summing the daily values of the [McClellan Oscillator](../m/mcclellan_oscillator.md). +Building on the [McClellan Oscillator](../m/mcclellan_oscillator.md), the McClellan Summation [Index](../i/index_instrument.md) is a cumulative measure that provides an overall view of [market](../m/market.md) breadth over a more extended period. It is calculated by summing the daily values of the [McClellan Oscillator](../m/mcclellan_oscillator.md). #### TRIN (Arms Index) -The TRIN, also known as the Arms [Index](../i/index.md), measures the flow of funds in and out of advancing and declining [stocks](../s/stock.md). It is calculated as: +The TRIN, also known as the Arms [Index](../i/index_instrument.md), measures the flow of funds in and out of advancing and declining [stocks](../s/stock.md). It is calculated as: \[ \text{TRIN} = \frac{\frac{A}{D}}{\frac{\text{[Volume](../v/volume.md) of A}}{\text{[Volume](../v/volume.md) of D}}} \] @@ -65,7 +65,7 @@ Just as with the A/D Ratio, a [Volume](../v/volume.md) Breadth Ratio above 1 sug ### Confirmation of Market Trends -[Market breadth indicators](../m/market_breadth_indicators.md) can be used to confirm the strength of prevailing [market](../m/market.md) trends. For instance, if major indexes are making new highs while the A/D Line or McClellan Summation [Index](../i/index.md) also shows upward movement, this indicates broad [market](../m/market.md) participation and a healthier [market](../m/market.md). +[Market breadth indicators](../m/market_breadth_indicators.md) can be used to confirm the strength of prevailing [market](../m/market.md) trends. For instance, if major indexes are making new highs while the A/D Line or McClellan Summation [Index](../i/index_instrument.md) also shows upward movement, this indicates broad [market](../m/market.md) participation and a healthier [market](../m/market.md). ### Divergences @@ -92,7 +92,7 @@ An algo-[trade](../t/trade.md) strategy could use parameters from [market breadt ### Combining Breadth with Technical Indicators -Algorithmic strategies often combine breadth indicators with other [technical indicators](../t/technical_indicator.md) like moving averages or [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) to enhance decision-making. +Algorithmic strategies often combine breadth indicators with other [technical indicators](../t/technical_indicator.md) like moving averages or [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) to enhance decision-making. ### Backtesting Breadth-Based Strategies diff --git a/en/pedia/m/market_breadth_indicators.md b/en/pedia/m/market_breadth_indicators.md index f0d43bca..49574a1b 100644 --- a/en/pedia/m/market_breadth_indicators.md +++ b/en/pedia/m/market_breadth_indicators.md @@ -5,7 +5,7 @@ ## Advancers vs. Decliners ### Definition -The Advancers vs. Decliners [indicator](../i/indicator.md) compares the number of [stocks](../s/stock.md) that have advanced in price to the number of [stocks](../s/stock.md) that have declined within a particular [index](../i/index.md) or [exchange](../e/exchange.md). +The Advancers vs. Decliners [indicator](../i/indicator.md) compares the number of [stocks](../s/stock.md) that have advanced in price to the number of [stocks](../s/stock.md) that have declined within a particular [index](../i/index_instrument.md) or [exchange](../e/exchange.md). ### Calculation On a given trading day: @@ -71,7 +71,7 @@ Traders can filter [stocks](../s/stock.md) hitting new highs or lows for [moment ## TRIN (Arms Index) ### Definition -TRIN, also known as the Arms [Index](../i/index.md), measures the relationship between the number of advancing and declining [stocks](../s/stock.md) and their corresponding [volume](../v/volume.md). +TRIN, also known as the Arms [Index](../i/index_instrument.md), measures the relationship between the number of advancing and declining [stocks](../s/stock.md) and their corresponding [volume](../v/volume.md). ### Calculation \[ \text{TRIN} = \left( \frac{\text{Number of Advancing [Stocks](../s/stock.md)}}{\text{Number of Declining [Stocks](../s/stock.md)}} \right) / \left( \frac{\text{[Volume](../v/volume.md) of Advancing [Stocks](../s/stock.md)}}{\text{[Volume](../v/volume.md) of Declining [Stocks](../s/stock.md)}} \right) \] @@ -86,7 +86,7 @@ TRIN can be integrated into [trading algorithms](../t/trading_algorithms.md) to ## Bullish Percent Index (BPI) ### Definition -The Bullish Percent [Index](../i/index.md) (BPI) measures the percentage of [stocks](../s/stock.md) in a given [index](../i/index.md) or sector that are currently in a bullish technical pattern. +The Bullish Percent [Index](../i/index_instrument.md) (BPI) measures the percentage of [stocks](../s/stock.md) in a given [index](../i/index_instrument.md) or sector that are currently in a bullish technical pattern. ### Calculation \[ \text{BPI} = \left( \frac{\text{Number of Bullish [Stocks](../s/stock.md) in P&F Chart}}{\text{Total Number of [Stocks](../s/stock.md)}} \right) \times 100 \] @@ -116,7 +116,7 @@ This ratio helps gauge [market sentiment](../m/market_sentiment.md) and potentia ## Cumulative Volume Index (CVI) ### Definition -The Cumulative [Volume](../v/volume.md) [Index](../i/index.md) (CVI) tracks the cumulative [volume](../v/volume.md) flows by comparing the [volume](../v/volume.md) of advancing [stocks](../s/stock.md) to the [volume](../v/volume.md) of declining [stocks](../s/stock.md). +The Cumulative [Volume](../v/volume.md) [Index](../i/index_instrument.md) (CVI) tracks the cumulative [volume](../v/volume.md) flows by comparing the [volume](../v/volume.md) of advancing [stocks](../s/stock.md) to the [volume](../v/volume.md) of declining [stocks](../s/stock.md). ### Calculation \[ \text{CVI} = (\text{Previous CVI}) + (\text{Volume of Advancing [Stocks](../s/stock.md)} - \text{[Volume](../v/volume.md) of Declining [Stocks](../s/stock.md)}) \] @@ -132,35 +132,35 @@ CVI is used to confirm the strength of a [trend](../t/trend.md) and validate ent ### S&P 500 Advance/Decline Line -The S&P 500 A/D Line tracks the difference between the number of advancers and decliners within the S&P 500 [index](../i/index.md), serving as a barometer for the [market breadth](../m/market_breadth.md) specific to this major [index](../i/index.md). +The S&P 500 A/D Line tracks the difference between the number of advancers and decliners within the S&P 500 [index](../i/index_instrument.md), serving as a barometer for the [market breadth](../m/market_breadth.md) specific to this major [index](../i/index_instrument.md). ### S&P 500 McClellan Oscillator -This variation of the [McClellan Oscillator](../m/mcclellan_oscillator.md) is calculated specifically for the S&P 500, providing insights into the short-term internal strength or weakness of the [index](../i/index.md). +This variation of the [McClellan Oscillator](../m/mcclellan_oscillator.md) is calculated specifically for the S&P 500, providing insights into the short-term internal strength or weakness of the [index](../i/index_instrument.md). ### S&P 500 TRIN -The S&P 500 TRIN (Arms [Index](../i/index.md)) measures the ratio of the average [volume](../v/volume.md) of advancing issues to average [volume](../v/volume.md) of declining issues, providing insight into the [market breadth](../m/market_breadth.md) of the S&P 500. +The S&P 500 TRIN (Arms [Index](../i/index_instrument.md)) measures the ratio of the average [volume](../v/volume.md) of advancing issues to average [volume](../v/volume.md) of declining issues, providing insight into the [market breadth](../m/market_breadth.md) of the S&P 500. ## NASDAQ Breadth Indicators ### NASDAQ Advance/Decline Line -Similar to the S&P 500 A/D Line but specific to the [NASDAQ](../n/nasdaq.md) [index](../i/index.md), this [indicator](../i/indicator.md) tracks the net number of advancing minus declining [stocks](../s/stock.md) within [NASDAQ](../n/nasdaq.md). +Similar to the S&P 500 A/D Line but specific to the [NASDAQ](../n/nasdaq.md) [index](../i/index_instrument.md), this [indicator](../i/indicator.md) tracks the net number of advancing minus declining [stocks](../s/stock.md) within [NASDAQ](../n/nasdaq.md). ### NASDAQ McClellan Oscillator -This [oscillator](../o/oscillator.md) adapts the McClellan calculation for use with the [NASDAQ](../n/nasdaq.md) [index](../i/index.md), [offering](../o/offering.md) a measurement of the short-term [market](../m/market.md) [momentum](../m/momentum.md) of [NASDAQ](../n/nasdaq.md) components. +This [oscillator](../o/oscillator.md) adapts the McClellan calculation for use with the [NASDAQ](../n/nasdaq.md) [index](../i/index_instrument.md), [offering](../o/offering.md) a measurement of the short-term [market](../m/market.md) [momentum](../m/momentum.md) of [NASDAQ](../n/nasdaq.md) components. ### NASDAQ TRIN -The [NASDAQ](../n/nasdaq.md) TRIN measures the [market breadth](../m/market_breadth.md) of the [NASDAQ](../n/nasdaq.md) [index](../i/index.md), according to the ratio of average [volume](../v/volume.md) in advancing [stocks](../s/stock.md) versus declining [stocks](../s/stock.md). +The [NASDAQ](../n/nasdaq.md) TRIN measures the [market breadth](../m/market_breadth.md) of the [NASDAQ](../n/nasdaq.md) [index](../i/index_instrument.md), according to the ratio of average [volume](../v/volume.md) in advancing [stocks](../s/stock.md) versus declining [stocks](../s/stock.md). ## NYSE Breadth Indicators ### NYSE Advance/Decline Line -The NYSE A/D Line provides a cumulative measure of the number of advancing [stocks](../s/stock.md) minus declining [stocks](../s/stock.md) on the NYSE, useful for assessing the internal health of this broad-based [index](../i/index.md). +The NYSE A/D Line provides a cumulative measure of the number of advancing [stocks](../s/stock.md) minus declining [stocks](../s/stock.md) on the NYSE, useful for assessing the internal health of this broad-based [index](../i/index_instrument.md). ### NYSE McClellan Oscillator diff --git a/en/pedia/m/market_capitalization.md b/en/pedia/m/market_capitalization.md index 2562fd34..27c60140 100644 --- a/en/pedia/m/market_capitalization.md +++ b/en/pedia/m/market_capitalization.md @@ -67,7 +67,7 @@ Small-cap [stocks](../s/stock.md) have a [market](../m/market.md) [capitalizatio ### Index Composition -[Market](../m/market.md) cap is a key determinant in the composition of [market](../m/market.md) indices like the S&P 500, Dow Jones Industrial Average, and [Nasdaq](../n/nasdaq.md) 100. Companies with larger [market](../m/market.md) caps have a more significant influence on [index](../i/index.md) movements. +[Market](../m/market.md) cap is a key determinant in the composition of [market](../m/market.md) indices like the S&P 500, Dow Jones Industrial Average, and [Nasdaq](../n/nasdaq.md) 100. Companies with larger [market](../m/market.md) caps have a more significant influence on [index](../i/index_instrument.md) movements. ### Financial Ratios diff --git a/en/pedia/m/market_capitalization_analysis.md b/en/pedia/m/market_capitalization_analysis.md index cf205690..d68e3b75 100644 --- a/en/pedia/m/market_capitalization_analysis.md +++ b/en/pedia/m/market_capitalization_analysis.md @@ -70,7 +70,7 @@ Analyzing [market capitalization](../m/market_capitalization.md) involves a comb This methodology involves evaluating a company's [financial statements](../f/financial_statements.md), including [income](../i/income.md) statements, balance sheets, and [cash flow](../c/cash_flow.md) statements, to determine its [intrinsic value](../i/intrinsic_value.md). Key metrics analyzed include [earnings](../e/earnings.md) per share (EPS), price-to-[earnings](../e/earnings.md) (P/E) ratio, [revenue](../r/revenue.md) growth, and [profit margins](../p/profit_margins_in_trading.md). ### **Technical Analysis** -[Technical analysis](../t/technical_analysis.md) focuses on [historical price patterns](../h/historical_price_patterns.md) and trading [volume](../v/volume.md) to predict future price movements. Tools such as moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and [candlestick patterns](../c/candlestick_patterns.md) are employed to identify trends and potential entry/exit points. +[Technical analysis](../t/technical_analysis.md) focuses on [historical price patterns](../h/historical_price_patterns.md) and trading [volume](../v/volume.md) to predict future price movements. Tools such as moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and [candlestick patterns](../c/candlestick_patterns.md) are employed to identify trends and potential entry/exit points. ### **Comparative Analysis** This involves comparing a company's [market capitalization](../m/market_capitalization.md) with its peers within the same [industry](../i/industry.md). It helps in understanding the company's [market](../m/market.md) position and relative [valuation](../v/valuation.md). diff --git a/en/pedia/m/market_cycles.md b/en/pedia/m/market_cycles.md index c68011f0..062c8250 100644 --- a/en/pedia/m/market_cycles.md +++ b/en/pedia/m/market_cycles.md @@ -33,7 +33,7 @@ A [market](../m/market.md) cycle consists of four main phases: accumulation, [up Several [technical indicators](../t/technical_indicators.md) can help identify [market](../m/market.md) cycles: - **Moving Averages**: Traders often use MA crossovers to detect shifts in [market](../m/market.md) trends. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Helps identify [overbought](../o/overbought.md) and [oversold](../o/oversold.md) markets. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Helps identify [overbought](../o/overbought.md) and [oversold](../o/oversold.md) markets. - **[Bollinger Bands](../b/bollinger_bands.md)**: Measures [market](../m/market.md) [volatility](../v/volatility.md) and possible [trend](../t/trend.md) reversals. - **[Volume](../v/volume.md)**: Changes in trading [volume](../v/volume.md) can signal the start of new phases in the [market](../m/market.md) cycle, especially during the accumulation and [distribution](../d/distribution.md) phases. diff --git a/en/pedia/m/market_dynamics.md b/en/pedia/m/market_dynamics.md index 3fb0c84c..8e02876d 100644 --- a/en/pedia/m/market_dynamics.md +++ b/en/pedia/m/market_dynamics.md @@ -20,7 +20,7 @@ The most fundamental aspect of [market](../m/market.md) dynamics is the [law of - **Gross Domestic Product (GDP)**: Measures the total [value](../v/value.md) of goods and services produced. - **[Unemployment](../u/unemployment.md) Rates**: Indicates the percentage of the workforce that is unemployed and actively seeking employment. - **[Inflation](../i/inflation.md) Rates**: Represents the rate at which the general level of prices for goods and services is rising. -- **Consumer Confidence [Index](../i/index.md)**: Measures the degree of optimism that consumers feel about the overall state of the [economy](../e/economy.md) and their personal financial situation. +- **Consumer Confidence [Index](../i/index_instrument.md)**: Measures the degree of optimism that consumers feel about the overall state of the [economy](../e/economy.md) and their personal financial situation. - **[Interest](../i/interest.md) Rates**: Set by central banks, influencing borrowing costs, consumer spending, and investment. ### 3. Investor Behavior and Psychology diff --git a/en/pedia/m/market_implied_volatility.md b/en/pedia/m/market_implied_volatility.md index d13eb8c3..9e802165 100644 --- a/en/pedia/m/market_implied_volatility.md +++ b/en/pedia/m/market_implied_volatility.md @@ -68,7 +68,7 @@ The [volatility surface](../v/volatility_surface.md) is a three-dimensional plot ### VIX - The Volatility Index -The Chicago Board [Options](../o/options.md) [Exchange](../e/exchange.md) (CBOE) [Volatility](../v/volatility.md) [Index](../i/index.md), commonly referred to as the VIX, measures the [market](../m/market.md)'s expectation of [volatility](../v/volatility.md) over the next 30 days. Derived from the implied volatilities of S&P 500 [index options](../i/index_options.md), the VIX is often referred to as the "fear gauge." +The Chicago Board [Options](../o/options.md) [Exchange](../e/exchange.md) (CBOE) [Volatility](../v/volatility.md) [Index](../i/index_instrument.md), commonly referred to as the VIX, measures the [market](../m/market.md)'s expectation of [volatility](../v/volatility.md) over the next 30 days. Derived from the implied volatilities of S&P 500 [index options](../i/index_options.md), the VIX is often referred to as the "fear gauge." ### Skew and Smiles diff --git a/en/pedia/m/market_index.md b/en/pedia/m/market_index.md index 2a580f13..3cde055a 100644 --- a/en/pedia/m/market_index.md +++ b/en/pedia/m/market_index.md @@ -1,31 +1,31 @@ # Market Index -A [market](../m/market.md) [index](../i/index.md) is a statistical measure that tracks the performance of a group of assets. Investors and financial managers use [market](../m/market.md) indices to describe the [market](../m/market.md) and compare the [return](../r/return.md) on specific investments. +A [market](../m/market.md) [index](../i/index_instrument.md) is a statistical measure that tracks the performance of a group of assets. Investors and financial managers use [market](../m/market.md) indices to describe the [market](../m/market.md) and compare the [return](../r/return.md) on specific investments. ## Types of Market Indices 1. **[Stock Market](../s/stock_market.md) Indices**: These indices measure the performance of a selection of [stocks](../s/stock.md) and are used to gauge the health of the [stock market](../s/stock_market.md). - - **Dow Jones Industrial Average (DJIA)**: An [index](../i/index.md) consisting of 30 large publicly traded companies in the United States. + - **Dow Jones Industrial Average (DJIA)**: An [index](../i/index_instrument.md) consisting of 30 large publicly traded companies in the United States. - **S&P 500**: Measures the performance of 500 large companies [listed](../l/listed.md) on stock exchanges in the United States. - **[NASDAQ](../n/nasdaq.md) Composite**: Comprises more than 3,000 [stocks](../s/stock.md) [listed](../l/listed.md) on the [NASDAQ](../n/nasdaq.md) [Stock Market](../s/stock_market.md). 2. **[Bond Market](../b/bond_market.md) Indices**: These indices track performance in the [bond market](../b/bond_market.md). - - **[Bloomberg](../b/bloomberg.md) Barclays US Aggregate [Bond](../b/bond.md) [Index](../i/index.md)**: [Benchmark](../b/benchmark.md) [index](../i/index.md) for US investment-grade bonds. - - **ICE BofA US [Bond](../b/bond.md) [Index](../i/index.md)**: Tracks the performance of the investment-grade [bond market](../b/bond_market.md). + - **[Bloomberg](../b/bloomberg.md) Barclays US Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md)**: [Benchmark](../b/benchmark.md) [index](../i/index_instrument.md) for US investment-grade bonds. + - **ICE BofA US [Bond](../b/bond.md) [Index](../i/index_instrument.md)**: Tracks the performance of the investment-grade [bond market](../b/bond_market.md). 3. **[Commodity](../c/commodity.md) Indices**: These indices track the performance of [commodity](../c/commodity.md) markets. - **S&P GSCI**: A [benchmark](../b/benchmark.md) for investment in the [commodity](../c/commodity.md) markets. - - **[Bloomberg](../b/bloomberg.md) [Commodity](../c/commodity.md) [Index](../i/index.md) (BCOM)**: A diversified [commodity](../c/commodity.md) [index](../i/index.md) with exposure to energy, agriculture, and metals markets. + - **[Bloomberg](../b/bloomberg.md) [Commodity](../c/commodity.md) [Index](../i/index_instrument.md) (BCOM)**: A diversified [commodity](../c/commodity.md) [index](../i/index_instrument.md) with exposure to energy, agriculture, and metals markets. -4. **[Index](../i/index.md) Methodology**: Indices can be classified by the methodology used to compute them: - - **[Price-Weighted Index](../p/price-weighted_index.md)**: The [index](../i/index.md)'s [value](../v/value.md) is based on the price of its component [stocks](../s/stock.md). - - **[Market](../m/market.md) Cap-[Weighted](../w/weighted.md) [Index](../i/index.md)**: The [index](../i/index.md) is [weighted](../w/weighted.md) according to the [market value](../m/market_value.md) of its component companies. - - **Equal-[Weighted](../w/weighted.md) [Index](../i/index.md)**: Each stock has the same weight within the [index](../i/index.md). +4. **[Index](../i/index_instrument.md) Methodology**: Indices can be classified by the methodology used to compute them: + - **[Price-Weighted Index](../p/price-weighted_index.md)**: The [index](../i/index_instrument.md)'s [value](../v/value.md) is based on the price of its component [stocks](../s/stock.md). + - **[Market](../m/market.md) Cap-[Weighted](../w/weighted.md) [Index](../i/index_instrument.md)**: The [index](../i/index_instrument.md) is [weighted](../w/weighted.md) according to the [market value](../m/market_value.md) of its component companies. + - **Equal-[Weighted](../w/weighted.md) [Index](../i/index_instrument.md)**: Each stock has the same weight within the [index](../i/index_instrument.md). ## Importance of Market Indices 1. **Benchmarking**: Investors use indices to measure the performance of their portfolios. -2. **[Passive Investing](../p/passive_investing.md)**: [Index](../i/index.md) funds and ETFs mimic the performance of a [market](../m/market.md) [index](../i/index.md). +2. **[Passive Investing](../p/passive_investing.md)**: [Index](../i/index_instrument.md) funds and ETFs mimic the performance of a [market](../m/market.md) [index](../i/index_instrument.md). 3. **[Market Sentiment](../m/market_sentiment.md)**: Indices provide a snapshot of [market sentiment](../m/market_sentiment.md) and economic health. 4. **Stability**: Indices stabilize over individual [security](../s/security.md) fluctuations, providing a broader [market](../m/market.md) view. @@ -41,13 +41,13 @@ A [market](../m/market.md) [index](../i/index.md) is a statistical measure that 3. **Asian Indices**: - **[Nikkei](../n/nikkei.md) 225**: List of Japan's top 225 blue-chip companies [listed](../l/listed.md) on the Tokyo Stock [Exchange](../e/exchange.md). - - **Hang Seng [Index](../i/index.md)**: Represents the biggest companies [listed](../l/listed.md) on the Hong Kong Stock [Exchange](../e/exchange.md). + - **Hang Seng [Index](../i/index_instrument.md)**: Represents the biggest companies [listed](../l/listed.md) on the Hong Kong Stock [Exchange](../e/exchange.md). ## Market Index Creation -1. **Selection Criteria**: Companies or entities included in the [index](../i/index.md) are selected based on specific criteria. -2. **Weighting Method**: Determines the impact each component [will](../w/will.md) have on the overall [index](../i/index.md) [value](../v/value.md). -3. **[Rebalancing](../r/rebalancing.md)**: Regular adjustment of the component weights to ensure the [index](../i/index.md) matches the [underlying](../u/underlying.md) [market](../m/market.md) or sector. +1. **Selection Criteria**: Companies or entities included in the [index](../i/index_instrument.md) are selected based on specific criteria. +2. **Weighting Method**: Determines the impact each component [will](../w/will.md) have on the overall [index](../i/index_instrument.md) [value](../v/value.md). +3. **[Rebalancing](../r/rebalancing.md)**: Regular adjustment of the component weights to ensure the [index](../i/index_instrument.md) matches the [underlying](../u/underlying.md) [market](../m/market.md) or sector. 4. **[Transparency](../t/transparency.md)**: Methodologies are often publicly disclosed to maintain [investor](../i/investor.md) confidence. ## Benefits of Market Indexing @@ -55,7 +55,7 @@ A [market](../m/market.md) [index](../i/index.md) is a statistical measure that 1. **[Diversification](../d/diversification.md)**: Reduced [risk](../r/risk.md) by spreading investments across a [range](../r/range.md) of securities. 2. **Low Cost**: Lower management fees compared to actively managed funds. 3. **Performance**: Historically, many indices have outperformed actively managed funds. -4. **Simplicity**: [Index](../i/index.md) funds are easy to understand and require minimal management. +4. **Simplicity**: [Index](../i/index_instrument.md) funds are easy to understand and require minimal management. ### Conclusion [Market](../m/market.md) indices function as essential tools for various stakeholders in the [financial markets](../f/financial_market.md). They provide essential information on [market](../m/market.md) trends, enabling investors to make informed decisions. [Market](../m/market.md) indices [will](../w/will.md) continue to evolve, adapting to changes in global economies and [financial markets](../f/financial_market.md). diff --git a/en/pedia/m/market_internals.md b/en/pedia/m/market_internals.md index 6bb4c586..e799fe00 100644 --- a/en/pedia/m/market_internals.md +++ b/en/pedia/m/market_internals.md @@ -38,7 +38,7 @@ The Put/Call Ratio compares the [volume](../v/volume.md) of [put options](../p/p ### VIX (Volatility Index) -The VIX, often referred to as the "fear [index](../i/index.md)," measures [market](../m/market.md) expectations of near-term [volatility](../v/volatility.md) as implied by S&P 500 [index options](../i/index_options.md). +The VIX, often referred to as the "fear [index](../i/index_instrument.md)," measures [market](../m/market.md) expectations of near-term [volatility](../v/volatility.md) as implied by S&P 500 [index options](../i/index_options.md). **Why It Matters:** - High VIX values indicate high [market](../m/market.md) [volatility](../v/volatility.md) and fear among investors, often preceding [market](../m/market.md) bottoms. @@ -46,7 +46,7 @@ The VIX, often referred to as the "fear [index](../i/index.md)," measures [marke ### TRIN (Trader’s Index) -The [Trader](../t/trader.md)’s [Index](../i/index.md) (TRIN), also known as the Arms [Index](../i/index.md), measures the ratio of advancing to declining [stocks](../s/stock.md) and the [volume](../v/volume.md) of advancing to declining [stocks](../s/stock.md). +The [Trader](../t/trader.md)’s [Index](../i/index_instrument.md) (TRIN), also known as the Arms [Index](../i/index_instrument.md), measures the ratio of advancing to declining [stocks](../s/stock.md) and the [volume](../v/volume.md) of advancing to declining [stocks](../s/stock.md). **Why It Matters:** - A TRIN [value](../v/value.md) below 1 indicates that more [volume](../v/volume.md) is associated with advancing [stocks](../s/stock.md), suggesting bullish sentiment. diff --git a/en/pedia/m/market_mapping.md b/en/pedia/m/market_mapping.md index 1fc62dcb..8e792e68 100644 --- a/en/pedia/m/market_mapping.md +++ b/en/pedia/m/market_mapping.md @@ -11,7 +11,7 @@ Data is the cornerstone of [Market](../m/market.md) Mapping. Traders and analyst - **[Market](../m/market.md) Data**: Includes historical prices, volumes, [order book](../o/order_book.md) data, and [trade](../t/trade.md) [tick](../t/tick.md) data. - **Fundamental Data**: [Financial statements](../f/financial_statements.md), [earnings](../e/earnings.md) reports, [economic indicators](../e/economic_indicators.md), and macroeconomic data. - **[Alternative Data](../a/alternative_data.md)**: [Social media sentiment](../s/social_media_sentiment.md), news feeds, web scraping data, satellite imagery, and [transaction](../t/transaction.md) data. -- **[Technical Indicators](../t/technical_indicators.md)**: Moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), [Bollinger Bands](../b/bollinger_bands.md), and other technical tools. +- **[Technical Indicators](../t/technical_indicators.md)**: Moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), [Bollinger Bands](../b/bollinger_bands.md), and other technical tools. ### Data Organization diff --git a/en/pedia/m/market_performance_analysis.md b/en/pedia/m/market_performance_analysis.md index 191f87e8..fe2b324a 100644 --- a/en/pedia/m/market_performance_analysis.md +++ b/en/pedia/m/market_performance_analysis.md @@ -25,11 +25,11 @@ The [Sortino Ratio](../s/sortino_ratio.md) is a variation of the [Sharpe Ratio]( \[ \text{Sortino Ratio} = \frac{\text{Strategy Return} - \text{Risk-Free Rate}}{\text{[Downside Deviation](../d/downside_deviation.md)}} \] ### 5. Alpha and Beta -- **[Alpha](../a/alpha.md)** measures the strategy’s performance relative to a [benchmark](../b/benchmark.md) [index](../i/index.md), indicating how much better or worse the strategy performed. +- **[Alpha](../a/alpha.md)** measures the strategy’s performance relative to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), indicating how much better or worse the strategy performed. \[ \text{Alpha} = \text{Strategy Return} - (\text{Beta} \times \text{[Benchmark](../b/benchmark.md) [Return](../r/return.md)}) \] -- **[Beta](../b/beta.md)** measures the [volatility](../v/volatility.md) or [systemic risk](../s/systemic_risk.md) relative to the [market](../m/market.md) ([benchmark](../b/benchmark.md) [index](../i/index.md)). +- **[Beta](../b/beta.md)** measures the [volatility](../v/volatility.md) or [systemic risk](../s/systemic_risk.md) relative to the [market](../m/market.md) ([benchmark](../b/benchmark.md) [index](../i/index_instrument.md)). \[ \text{Beta} = \frac{\text{[Covariance](../c/covariance.md)(Strategy, [Market](../m/market.md))}}{\text{Variance([Market](../m/market.md))}} \] diff --git a/en/pedia/m/market_portfolio.md b/en/pedia/m/market_portfolio.md index ca87b788..2e9298d6 100644 --- a/en/pedia/m/market_portfolio.md +++ b/en/pedia/m/market_portfolio.md @@ -28,7 +28,7 @@ Where: ## Real-World Application -In practice, while the true [market](../m/market.md) portfolio is undefinable due to the vast array of global assets and their constant evolution, proxies like broad [stock market](../s/stock_market.md) indices (e.g., S&P 500, MSCI World [Index](../i/index.md)) are often used. These indices are [weighted](../w/weighted.md) by [market capitalization](../m/market_capitalization.md) and serve as close approximations. +In practice, while the true [market](../m/market.md) portfolio is undefinable due to the vast array of global assets and their constant evolution, proxies like broad [stock market](../s/stock_market.md) indices (e.g., S&P 500, MSCI World [Index](../i/index_instrument.md)) are often used. These indices are [weighted](../w/weighted.md) by [market capitalization](../m/market_capitalization.md) and serve as close approximations. For example: - **S&P Dow Jones Indices**: [www.spglobal.com/spdji/en/](https://www.spglobal.com/spdji/en/) @@ -42,7 +42,7 @@ The [market](../m/market.md) portfolio exemplifies perfect [diversification](../ For portfolio managers, the [market](../m/market.md) portfolio serves as: 1. **Benchmarking Tool**: Helps in measuring the performance of actively managed funds. -2. **Guide for Passive Management**: Strategies like [index](../i/index.md) funds aim to replicate the performance of the [market](../m/market.md) portfolio. +2. **Guide for Passive Management**: Strategies like [index](../i/index_instrument.md) funds aim to replicate the performance of the [market](../m/market.md) portfolio. ## Efficient Frontier and Market Portfolio diff --git a/en/pedia/m/market_power.md b/en/pedia/m/market_power.md index 708ed02a..04819c33 100644 --- a/en/pedia/m/market_power.md +++ b/en/pedia/m/market_power.md @@ -16,10 +16,10 @@ An [oligopoly](../o/oligopoly.md) exists when a few firms dominate the [market]( ## Measurement of Market Power ### Lerner Index -The Lerner [Index](../i/index.md) measures a [firm](../f/firm.md)'s price-setting power, calculated as (P - MC) / P, where P is the price of the good and MC is the marginal cost. An [index](../i/index.md) close to 1 implies a high degree of [market](../m/market.md) power, as the [firm](../f/firm.md) can set prices significantly above marginal cost. +The Lerner [Index](../i/index_instrument.md) measures a [firm](../f/firm.md)'s price-setting power, calculated as (P - MC) / P, where P is the price of the good and MC is the marginal cost. An [index](../i/index_instrument.md) close to 1 implies a high degree of [market](../m/market.md) power, as the [firm](../f/firm.md) can set prices significantly above marginal cost. ### Herfindahl-Hirschman Index (HHI) -The Herfindahl-Hirschman [Index](../i/index.md) measures [market](../m/market.md) concentration by summing the squares of the [market](../m/market.md) [shares](../s/shares.md) of all firms within the [industry](../i/industry.md). An HHI below 1,500 indicates a competitive [market](../m/market.md), while above 2,500 suggests high concentration and possible [market](../m/market.md) power abuse. +The Herfindahl-Hirschman [Index](../i/index_instrument.md) measures [market](../m/market.md) concentration by summing the squares of the [market](../m/market.md) [shares](../s/shares.md) of all firms within the [industry](../i/industry.md). An HHI below 1,500 indicates a competitive [market](../m/market.md), while above 2,500 suggests high concentration and possible [market](../m/market.md) power abuse. ### Market Share A simple measure of [market](../m/market.md) power, [market share](../m/market_share.md) indicates the proportion of total sales in the [market](../m/market.md) attributed to a particular [firm](../f/firm.md). While not the most comprehensive measure, it serves as an initial [indicator](../i/indicator.md) of competitive influence. diff --git a/en/pedia/m/market_rotation_strategies.md b/en/pedia/m/market_rotation_strategies.md index 00a2b312..d398dd01 100644 --- a/en/pedia/m/market_rotation_strategies.md +++ b/en/pedia/m/market_rotation_strategies.md @@ -29,7 +29,7 @@ #### Quantitative Analysis [Quantitative analysis](../q/quantitative_analysis.md) involves using [mathematical models](../m/mathematical_models_in_trading.md), historical data, and algorithms to identify patterns and forecast future [market](../m/market.md) trends. Some common methods include: -1. **[Momentum Indicators](../m/momentum_indicators.md)**: Tools like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) help gauge the strength and direction of [market](../m/market.md) movements. +1. **[Momentum Indicators](../m/momentum_indicators.md)**: Tools like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) help gauge the strength and direction of [market](../m/market.md) movements. 2. **Statistical Measures**: Analysis of [historical volatility](../h/historical_volatility.md), [mean reversion](../m/mean_reversion.md), and [correlation](../c/correlation.md) across sectors to predict future performance. 3. **Machine Learning**: Use of advanced algorithms and [artificial intelligence](../a/artificial_intelligence_in_trading.md) to detect hidden patterns in vast datasets that may be indicative of future [sector performance](../s/sector_performance.md). diff --git a/en/pedia/m/market_sentiment.md b/en/pedia/m/market_sentiment.md index c7710161..c46ad601 100644 --- a/en/pedia/m/market_sentiment.md +++ b/en/pedia/m/market_sentiment.md @@ -16,7 +16,7 @@ Conversely, bearish sentiment occurs when investors are pessimistic about future ### Market Indexes -[Market](../m/market.md) indexes, such as the S&P 500, Dow Jones Industrial Average, or [Nasdaq](../n/nasdaq.md) Composite, often serve as broad indicators of [market](../m/market.md) sentiment. A rising [index](../i/index.md) generally indicates bullish sentiment, while a falling [index](../i/index.md) suggests bearish sentiment. +[Market](../m/market.md) indexes, such as the S&P 500, Dow Jones Industrial Average, or [Nasdaq](../n/nasdaq.md) Composite, often serve as broad indicators of [market](../m/market.md) sentiment. A rising [index](../i/index_instrument.md) generally indicates bullish sentiment, while a falling [index](../i/index_instrument.md) suggests bearish sentiment. ### Sentiment Surveys diff --git a/en/pedia/m/market_sentiment_indicators.md b/en/pedia/m/market_sentiment_indicators.md index e22ca615..4dc3d3df 100644 --- a/en/pedia/m/market_sentiment_indicators.md +++ b/en/pedia/m/market_sentiment_indicators.md @@ -14,9 +14,9 @@ - **Put/Call Ratio**: The put/call ratio is derived from the [options](../o/options.md) [market](../m/market.md) and indicates the trading [volume](../v/volume.md) of [put options](../p/put_options.md) relative to call [options](../o/options.md). A higher put/call ratio suggests that more traders are purchasing [put options](../p/put_options.md), which generally indicates bearish sentiment. Conversely, a lower ratio indicates bullish sentiment. -- **VIX ([Volatility](../v/volatility.md) [Index](../i/index.md))**: Often referred to as the "fear gauge," the VIX measures the [market](../m/market.md)'s expectation of future [volatility](../v/volatility.md) based on the prices of [options](../o/options.md) on the S&P 500 [index](../i/index.md). Higher VIX values indicate increased [investor](../i/investor.md) fear and pessimism, while lower values suggest complacency and optimism. More information can be found on the [CBOE (Chicago Board Options Exchange)](http://www.cboe.com/vix). +- **VIX ([Volatility](../v/volatility.md) [Index](../i/index_instrument.md))**: Often referred to as the "fear gauge," the VIX measures the [market](../m/market.md)'s expectation of future [volatility](../v/volatility.md) based on the prices of [options](../o/options.md) on the S&P 500 [index](../i/index_instrument.md). Higher VIX values indicate increased [investor](../i/investor.md) fear and pessimism, while lower values suggest complacency and optimism. More information can be found on the [CBOE (Chicago Board Options Exchange)](http://www.cboe.com/vix). -- **[High-Low Index](../h/high-low_index.md)**: This [index](../i/index.md) compares the number of [stocks](../s/stock.md) making new 52-week highs to those making new 52-week lows. A high [index](../i/index.md) [value](../v/value.md) suggests optimistic [market sentiment](../m/market_sentiment.md), as more [stocks](../s/stock.md) are achieving new highs, whereas a low [value](../v/value.md) indicates pessimism. +- **[High-Low Index](../h/high-low_index.md)**: This [index](../i/index_instrument.md) compares the number of [stocks](../s/stock.md) making new 52-week highs to those making new 52-week lows. A high [index](../i/index_instrument.md) [value](../v/value.md) suggests optimistic [market sentiment](../m/market_sentiment.md), as more [stocks](../s/stock.md) are achieving new highs, whereas a low [value](../v/value.md) indicates pessimism. ### Social Media and News Sentiment @@ -42,7 +42,7 @@ Understanding [market sentiment](../m/market_sentiment.md) allows traders to gau ### The Bullish Percent Index (BPI) -The Bullish Percent [Index](../i/index.md) tracks the percentage of [stocks](../s/stock.md) within a particular [market](../m/market.md) that are trading with bullish [chart patterns](../c/chart_patterns.md) according to point-and-figure charting. It helps traders understand the percentage of [stocks](../s/stock.md) with upward trajectories within an [index](../i/index.md). +The Bullish Percent [Index](../i/index_instrument.md) tracks the percentage of [stocks](../s/stock.md) within a particular [market](../m/market.md) that are trading with bullish [chart patterns](../c/chart_patterns.md) according to point-and-figure charting. It helps traders understand the percentage of [stocks](../s/stock.md) with upward trajectories within an [index](../i/index_instrument.md). ### The Commitment of Traders (COT) Report diff --git a/en/pedia/m/market_timing.md b/en/pedia/m/market_timing.md index 9566ba10..afcb736b 100644 --- a/en/pedia/m/market_timing.md +++ b/en/pedia/m/market_timing.md @@ -9,7 +9,7 @@ - **Charts and Patterns:** These are graphical representations of price movements over time. Common patterns include head and shoulders, double tops/bottoms, and triangles. -- **Indicators and Oscillators:** Quantitative tools like moving averages, [Bollinger Bands](../b/bollinger_bands.md), [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)) help in identifying potential [market](../m/market.md) entry and exit points. +- **Indicators and Oscillators:** Quantitative tools like moving averages, [Bollinger Bands](../b/bollinger_bands.md), [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)) help in identifying potential [market](../m/market.md) entry and exit points. - **[Support and Resistance](../s/support_and_resistance.md) Levels:** These are price points where a [security](../s/security.md) tends to find support as it is going down or resistance as it is going up. diff --git a/en/pedia/m/market_trend_analysis.md b/en/pedia/m/market_trend_analysis.md index 2a2c28f4..d6ecff54 100644 --- a/en/pedia/m/market_trend_analysis.md +++ b/en/pedia/m/market_trend_analysis.md @@ -31,7 +31,7 @@ A [market](../m/market.md) [trend](../t/trend.md) refers to the perceived tenden ### Relative Strength Index (RSI) -The **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)** is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It's typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). +The **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)** is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It's typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). ### Moving Average Convergence Divergence (MACD) diff --git a/en/pedia/m/market_value_of_equity.md b/en/pedia/m/market_value_of_equity.md index 7d88e999..d0ef68b7 100644 --- a/en/pedia/m/market_value_of_equity.md +++ b/en/pedia/m/market_value_of_equity.md @@ -37,7 +37,7 @@ Generally, companies with larger [market](../m/market.md) caps are considered to ### 3. **Index Composition** -Many [stock market](../s/stock_market.md) indices, such as the S&P 500, are [weighted](../w/weighted.md) by [market](../m/market.md) cap, meaning the larger the company, the bigger the impact it has on the [index](../i/index.md)'s performance. +Many [stock market](../s/stock_market.md) indices, such as the S&P 500, are [weighted](../w/weighted.md) by [market](../m/market.md) cap, meaning the larger the company, the bigger the impact it has on the [index](../i/index_instrument.md)'s performance. ### 4. **Corporate Actions and Valuation** diff --git a/en/pedia/m/market_volatility_analysis.md b/en/pedia/m/market_volatility_analysis.md index f403a9b7..b8983817 100644 --- a/en/pedia/m/market_volatility_analysis.md +++ b/en/pedia/m/market_volatility_analysis.md @@ -10,7 +10,7 @@ 3. **Implied [Volatility](../v/volatility.md) (IV)**: Implied [volatility](../v/volatility.md), derived from option prices, is a forward-looking metric reflecting the [market](../m/market.md)'s expectations of future [volatility](../v/volatility.md). Unlike [historical volatility](../h/historical_volatility.md), it doesn't rely on past price movements but on the premiums paid to [trade](../t/trade.md) [options](../o/options.md). It is crucial for [options](../o/options.md) traders, as high implied [volatility](../v/volatility.md) often results in higher option premiums. -4. **[Volatility](../v/volatility.md) [Index](../i/index.md) (VIX)**: Known as the "fear gauge," the VIX is a popular measure of the implied [volatility](../v/volatility.md) of S&P 500 [index options](../i/index_options.md). Calculated by the Chicago Board [Options](../o/options.md) [Exchange](../e/exchange.md) (CBOE), the VIX provides insights into [market sentiment](../m/market_sentiment.md) and potential [market](../m/market.md) turbulence. A higher VIX indicates increased [market](../m/market.md) [uncertainty](../u/uncertainty_in_trading.md). +4. **[Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX)**: Known as the "fear gauge," the VIX is a popular measure of the implied [volatility](../v/volatility.md) of S&P 500 [index options](../i/index_options.md). Calculated by the Chicago Board [Options](../o/options.md) [Exchange](../e/exchange.md) (CBOE), the VIX provides insights into [market sentiment](../m/market_sentiment.md) and potential [market](../m/market.md) turbulence. A higher VIX indicates increased [market](../m/market.md) [uncertainty](../u/uncertainty_in_trading.md). 5. **[Volatility Clustering](../v/volatility_clustering.md)**: [Volatility clustering](../v/volatility_clustering.md) refers to the phenomenon where high or low [volatility](../v/volatility.md) periods tend to cluster together. This implies that markets often experience bursts of [volatility](../v/volatility.md) followed by periods of tranquility. Understanding [volatility clustering](../v/volatility_clustering.md) helps traders predict potential periods of high [volatility](../v/volatility.md). diff --git a/en/pedia/m/market_volatility_forecasting.md b/en/pedia/m/market_volatility_forecasting.md index 72326ed1..d62b260b 100644 --- a/en/pedia/m/market_volatility_forecasting.md +++ b/en/pedia/m/market_volatility_forecasting.md @@ -48,7 +48,7 @@ Bollerslev extended the ARCH model to GARCH, which incorporates lagged condition ### Implied Volatility Models -Implied [volatility models](../v/volatility_models.md) use information embedded in [options](../o/options.md) prices to forecast future [volatility](../v/volatility.md). The VIX [index](../i/index.md), often called the “fear gauge”, is a popular example that uses S&P 500 [index options](../i/index_options.md) to measure [market](../m/market.md) expectations of near-term [volatility](../v/volatility.md). +Implied [volatility models](../v/volatility_models.md) use information embedded in [options](../o/options.md) prices to forecast future [volatility](../v/volatility.md). The VIX [index](../i/index_instrument.md), often called the “fear gauge”, is a popular example that uses S&P 500 [index options](../i/index_options.md) to measure [market](../m/market.md) expectations of near-term [volatility](../v/volatility.md). ### Machine Learning and AI Techniques diff --git a/en/pedia/m/master_limited_partnerships_(mlps).md b/en/pedia/m/master_limited_partnerships_(mlps).md index d6331436..f336e5c8 100644 --- a/en/pedia/m/master_limited_partnerships_(mlps).md +++ b/en/pedia/m/master_limited_partnerships_(mlps).md @@ -94,7 +94,7 @@ For investors looking to avoid the complexities of direct MLP investment, there ### Alerian MLP ETF (AMLP) -The Alerian MLP ETF is one of the largest and most well-known MLP ETFs. It seeks to track the performance of the Alerian MLP [Infrastructure](../i/infrastructure.md) [Index](../i/index.md) and provides a diversified portfolio of midstream energy [infrastructure](../i/infrastructure.md) MLPs. +The Alerian MLP ETF is one of the largest and most well-known MLP ETFs. It seeks to track the performance of the Alerian MLP [Infrastructure](../i/infrastructure.md) [Index](../i/index_instrument.md) and provides a diversified portfolio of midstream energy [infrastructure](../i/infrastructure.md) MLPs. [Alerian MLP ETF](https://www.alerianmlp.com) ### Tortoise Energy Infrastructure Fund (TYG) diff --git a/en/pedia/m/mauritius_stock_exchange_(sem).md b/en/pedia/m/mauritius_stock_exchange_(sem).md index ec640b1c..97e93e60 100644 --- a/en/pedia/m/mauritius_stock_exchange_(sem).md +++ b/en/pedia/m/mauritius_stock_exchange_(sem).md @@ -24,7 +24,7 @@ The SEM supports the trading of various financial instruments: - **Bonds**: Government and corporate bonds, providing a fixed-[income](../i/income.md) investment option. -- **[Exchange](../e/exchange.md)-Traded Funds (ETFs)**: These are [marketable securities](../m/marketable_securities.md) that track an [index](../i/index.md), [commodity](../c/commodity.md), or basket of assets like an [index fund](../i/index_fund.md) but [trade](../t/trade.md) like a stock on the [exchange](../e/exchange.md). +- **[Exchange](../e/exchange.md)-Traded Funds (ETFs)**: These are [marketable securities](../m/marketable_securities.md) that track an [index](../i/index_instrument.md), [commodity](../c/commodity.md), or basket of assets like an [index fund](../i/index_fund.md) but [trade](../t/trade.md) like a stock on the [exchange](../e/exchange.md). - **Structured Products**: These are pre-packaged investment strategies based on [derivatives](../d/derivatives.md). @@ -44,11 +44,11 @@ The Stock [Exchange](../e/exchange.md) of Mauritius operates under the supervisi The performance of the SEM is tracked using various indices: -- **SEMDEX**: The SEMDEX is a [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md) that includes all [listed](../l/listed.md) companies. It serves as a barometer of the overall [market](../m/market.md) performance. +- **SEMDEX**: The SEMDEX is a [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md) that includes all [listed](../l/listed.md) companies. It serves as a barometer of the overall [market](../m/market.md) performance. -- **SEM-10**: The SEM-10 is a tradable [index](../i/index.md) consisting of the top 10 largest and most [liquid](../l/liquid.md) [stocks](../s/stock.md) on the SEM. +- **SEM-10**: The SEM-10 is a tradable [index](../i/index_instrument.md) consisting of the top 10 largest and most [liquid](../l/liquid.md) [stocks](../s/stock.md) on the SEM. -- **DEMEX**: This [index](../i/index.md) tracks the performance of companies [listed](../l/listed.md) on the Development & Enterprise [Market](../m/market.md). +- **DEMEX**: This [index](../i/index_instrument.md) tracks the performance of companies [listed](../l/listed.md) on the Development & Enterprise [Market](../m/market.md). ## International Recognition diff --git a/en/pedia/m/maximum_return_strategies.md b/en/pedia/m/maximum_return_strategies.md index 35b9bb28..965ae2c8 100644 --- a/en/pedia/m/maximum_return_strategies.md +++ b/en/pedia/m/maximum_return_strategies.md @@ -5,7 +5,7 @@ #### Types of Maximum Return Strategies 1. **[Momentum Trading](../m/momentum_trading.md) Strategies**: - [Momentum trading](../m/momentum_trading.md) is a strategy that aims to [capitalize](../c/capitalize.md) on the continuance of existing trends in the [market](../m/market.md). This can be done using algorithms that detect the beginning of a strong [trend](../t/trend.md) and then [trade](../t/trade.md) in the direction of that [trend](../t/trend.md). Key indicators used in [momentum trading](../m/momentum_trading.md) include the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and various other [momentum oscillators](../m/momentum_oscillators.md). + [Momentum trading](../m/momentum_trading.md) is a strategy that aims to [capitalize](../c/capitalize.md) on the continuance of existing trends in the [market](../m/market.md). This can be done using algorithms that detect the beginning of a strong [trend](../t/trend.md) and then [trade](../t/trade.md) in the direction of that [trend](../t/trend.md). Key indicators used in [momentum trading](../m/momentum_trading.md) include the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and various other [momentum oscillators](../m/momentum_oscillators.md). **Example Algorithm**: ```python @@ -13,7 +13,7 @@ short_window = 40 long_window = 100 - signals = pd.DataFrame([index](../i/index.md)=prices.[index](../i/index.md)) + signals = pd.DataFrame([index](../i/index_instrument.md)=prices.[index](../i/index_instrument.md)) signals['signal'] = 0.0 signals['short_mavg'] = prices['Close'].rolling(window=short_window, min_periods=1, center=False).mean() @@ -37,7 +37,7 @@ z_score = (prices - moving_avg) / moving_std - signals = pd.DataFrame([index](../i/index.md)=prices.[index](../i/index.md)) + signals = pd.DataFrame([index](../i/index_instrument.md)=prices.[index](../i/index_instrument.md)) signals['signal'] = -z_score [return](../r/return.md) signals @@ -52,7 +52,7 @@ spread = exchange1_prices - exchange2_prices z_score = (spread - spread.mean()) / spread.std() - signals = pd.DataFrame([index](../i/index.md)=exchange1_prices.[index](../i/index.md)) + signals = pd.DataFrame([index](../i/index_instrument.md)=exchange1_prices.[index](../i/index_instrument.md)) signals['signal'] = np.where(z_score > 1, 1, np.where(z_score < -1, -1, 0)) signals['positions'] = signals['signal'].diff() @@ -83,7 +83,7 @@ model.fit(X, y) predictions = model.predict(X) - signals = pd.DataFrame([index](../i/index.md)=prices.[index](../i/index.md)) + signals = pd.DataFrame([index](../i/index_instrument.md)=prices.[index](../i/index_instrument.md)) signals['signal'] = np.where(predictions > 0, 1, -1) [return](../r/return.md) signals @@ -98,7 +98,7 @@ buy_threshold = -1 sell_threshold = 1 - signals = pd.DataFrame([index](../i/index.md)=market_data.[index](../i/index.md)) + signals = pd.DataFrame([index](../i/index_instrument.md)=market_data.[index](../i/index_instrument.md)) signals['signal'] = np.where(market_data['price_change'] <= buy_threshold, 1, np.where(market_data['price_change'] >= sell_threshold, -1, 0)) [return](../r/return.md) signals diff --git a/en/pedia/m/mcclellan_oscillator.md b/en/pedia/m/mcclellan_oscillator.md index 94ca567e..533722df 100644 --- a/en/pedia/m/mcclellan_oscillator.md +++ b/en/pedia/m/mcclellan_oscillator.md @@ -56,7 +56,7 @@ The McClellan [Oscillator](../o/oscillator.md) oscillates around a zero line. A 2. **[Overbought](../o/overbought.md) and [Oversold](../o/oversold.md) Conditions**: Extreme positive readings suggest an [overbought](../o/overbought.md) condition, while extreme negative readings point to an [oversold](../o/oversold.md) [market](../m/market.md). Traders may use these extremes to anticipate reversals. -3. **Divergences**: When prices of the [index](../i/index.md) hit new highs or lows, but the [oscillator](../o/oscillator.md) does not follow suit, it signals potential divergences, indicating a possible [reversal](../r/reversal.md). +3. **Divergences**: When prices of the [index](../i/index_instrument.md) hit new highs or lows, but the [oscillator](../o/oscillator.md) does not follow suit, it signals potential divergences, indicating a possible [reversal](../r/reversal.md). - **[Bullish Divergence](../b/bullish_divergence.md)**: Occurs when prices are making new lows, but the [oscillator](../o/oscillator.md) is not. This can indicate the selling pressure is waning, and a [rally](../r/rally.md) might be near. @@ -123,7 +123,7 @@ In [algorithmic trading](../a/accountability.md), automatic [trading algorithms] ```python def generate_signals([oscillator](../o/oscillator.md)): - signals = pd.DataFrame([index](../i/index.md)=[oscillator](../o/oscillator.md).[index](../i/index.md)) + signals = pd.DataFrame([index](../i/index_instrument.md)=[oscillator](../o/oscillator.md).[index](../i/index_instrument.md)) signals['signal'] = 0 # Buy signal diff --git a/en/pedia/m/mean-variance_portfolio.md b/en/pedia/m/mean-variance_portfolio.md index dd815f85..11ab840a 100644 --- a/en/pedia/m/mean-variance_portfolio.md +++ b/en/pedia/m/mean-variance_portfolio.md @@ -44,7 +44,7 @@ Mean-variance portfolio theory, introduced by [Harry Markowitz](../h/harry_marko Where \( R_f \) is the [risk](../r/risk.md)-free rate, \( E(R_m) \) is the [expected return](../e/expected_return.md) of the [market portfolio](../m/market_portfolio.md), and \( \sigma_m \) is the [standard deviation](../s/standard_deviation.md) of the [market](../m/market.md) returns. -6. **[Sharpe Ratio](../s/sharpe_ratio.md)**: An [index](../i/index.md) that measures the [excess return](../e/excess_return.md) per unit of [risk](../r/risk.md) of an investment. It is calculated as: +6. **[Sharpe Ratio](../s/sharpe_ratio.md)**: An [index](../i/index_instrument.md) that measures the [excess return](../e/excess_return.md) per unit of [risk](../r/risk.md) of an investment. It is calculated as: \[ \text{[Sharpe Ratio](../s/sharpe_ratio.md)} = \frac{E(R_p) - R_f}{\sigma_p} @@ -66,7 +66,7 @@ The process of [mean-variance optimization](../m/mean-variance_optimization.md) 2. **[Risk Management](../r/risk_management.md)**: Mean-[variance analysis](../v/variance_analysis.md) helps investors understand the [trade](../t/trade.md)-off between [risk](../r/risk.md) and [return](../r/return.md), allowing them to make better [risk management](../r/risk_management.md) decisions. -3. **Passive vs. [Active Management](../a/active_management.md)**: MVT has implications in the debate between active and passive [portfolio management](../p/portfolio_management.md). It provides a foundation for the development of [index](../i/index.md) funds and [exchange](../e/exchange.md)-traded funds (ETFs). +3. **Passive vs. [Active Management](../a/active_management.md)**: MVT has implications in the debate between active and passive [portfolio management](../p/portfolio_management.md). It provides a foundation for the development of [index](../i/index_instrument.md) funds and [exchange](../e/exchange.md)-traded funds (ETFs). #### Criticisms and Limitations diff --git a/en/pedia/m/median_price_analysis.md b/en/pedia/m/median_price_analysis.md index 69fec880..754b6006 100644 --- a/en/pedia/m/median_price_analysis.md +++ b/en/pedia/m/median_price_analysis.md @@ -55,7 +55,7 @@ print(data) ### Advanced Usage -For more advanced applications, traders can use the [median](../m/median.md) price in conjunction with other indicators such as [Bollinger Bands](../b/bollinger_bands.md), the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and Moving Averages to build sophisticated [trading models](../t/trading_models.md). +For more advanced applications, traders can use the [median](../m/median.md) price in conjunction with other indicators such as [Bollinger Bands](../b/bollinger_bands.md), the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and Moving Averages to build sophisticated [trading models](../t/trading_models.md). ### Example 1: Bollinger Bands with Median Price diff --git a/en/pedia/m/median_price_oscillator.md b/en/pedia/m/median_price_oscillator.md index c371f734..f983f5b1 100644 --- a/en/pedia/m/median_price_oscillator.md +++ b/en/pedia/m/median_price_oscillator.md @@ -79,7 +79,7 @@ While MPO is a powerful tool, it is important to consider certain limitations an - **[False Signals](../f/false_signals_in_trading.md):** Like any technical [indicator](../i/indicator.md), MPO can produce [false signals](../f/false_signals_in_trading.md), especially in choppy or sideways [market](../m/market.md) conditions. Algorithms need [robust](../r/robust.md) filtering mechanisms to minimize such occurrences. - **Parameter Sensitivity:** The choice of the period for the EMA can significantly affect the MPO’s responsiveness. Traders need to optimize these parameters based on historical data and trading goals. -- **Complementary Indicators:** Using additional indicators like [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), or [Volume](../v/volume.md) can provide a more comprehensive analysis, reducing the [risk](../r/risk.md) of reliance on a single [indicator](../i/indicator.md). +- **Complementary Indicators:** Using additional indicators like [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), or [Volume](../v/volume.md) can provide a more comprehensive analysis, reducing the [risk](../r/risk.md) of reliance on a single [indicator](../i/indicator.md). ## Software Tools and Platforms diff --git a/en/pedia/m/melt-up_market_analysis.md b/en/pedia/m/melt-up_market_analysis.md index 303ec1da..2c646108 100644 --- a/en/pedia/m/melt-up_market_analysis.md +++ b/en/pedia/m/melt-up_market_analysis.md @@ -52,7 +52,7 @@ Historically, melt-up markets have been observed at various times and in various #### Identifying a Potential Melt-Up -1. **[Technical Indicators](../t/technical_indicators.md)**: Watch for [parabolic moves](../p/parabolic_moves.md) in price charts and high [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI) levels. +1. **[Technical Indicators](../t/technical_indicators.md)**: Watch for [parabolic moves](../p/parabolic_moves.md) in price charts and high [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI) levels. 2. **[Sentiment Indicators](../s/sentiment_indicators.md)**: [Market](../m/market.md) surveys, [social media](../s/social_media.md) trends, and news coverage can provide insight into public sentiment. diff --git a/en/pedia/m/metrics.md b/en/pedia/m/metrics.md index 9fd24f9f..6ab332ff 100644 --- a/en/pedia/m/metrics.md +++ b/en/pedia/m/metrics.md @@ -39,7 +39,7 @@ The [Sharpe Ratio](../s/sharpe_ratio.md) measures the performance of an investme ### 4. Alpha -[Alpha](../a/alpha.md) represents the [excess return](../e/excess_return.md) of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index.md). It is calculated as: +[Alpha](../a/alpha.md) represents the [excess return](../e/excess_return.md) of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). It is calculated as: \[ \alpha = \text{Actual Return} - \text{[Expected Return](../e/expected_return.md)} \] diff --git a/en/pedia/m/michigan_consumer_sentiment_index_(mcsi).md b/en/pedia/m/michigan_consumer_sentiment_index_(mcsi).md index d1db4a1d..df7214ea 100644 --- a/en/pedia/m/michigan_consumer_sentiment_index_(mcsi).md +++ b/en/pedia/m/michigan_consumer_sentiment_index_(mcsi).md @@ -1,6 +1,6 @@ # Michigan Consumer Sentiment Index (MCSI) -The Michigan Consumer Sentiment [Index](../i/index.md) (MCSI) is a monthly survey of consumer confidence levels in the United States, conducted by the University of Michigan. It serves as a critical [indicator](../i/indicator.md) of the economic health of the country by assessing the attitudes of American consumers about the [economy](../e/economy.md), their personal financial situation, and their expectations for the future. These factors collectively contribute to the overall sentiment and can impact consumer behavior, which in turn affects [business](../b/business.md) and [economic cycles](../e/economic_cycles.md). +The Michigan Consumer Sentiment [Index](../i/index_instrument.md) (MCSI) is a monthly survey of consumer confidence levels in the United States, conducted by the University of Michigan. It serves as a critical [indicator](../i/indicator.md) of the economic health of the country by assessing the attitudes of American consumers about the [economy](../e/economy.md), their personal financial situation, and their expectations for the future. These factors collectively contribute to the overall sentiment and can impact consumer behavior, which in turn affects [business](../b/business.md) and [economic cycles](../e/economic_cycles.md). ## Origin and Development @@ -8,13 +8,13 @@ The MCSI has its roots in the 1940s when Dr. George Katona, a psychologist and [ ## Methodology -The [index](../i/index.md) is derived from a monthly telephone survey of at least 500 households in the U.S., conducted by the University of Michigan's Institute for Social Research. The survey includes questions designed to gauge the respondents' attitudes about current [economic conditions](../e/economic_conditions.md) as well as their expectations for future economic prospects. Specifically, the survey questions cover three main areas: +The [index](../i/index_instrument.md) is derived from a monthly telephone survey of at least 500 households in the U.S., conducted by the University of Michigan's Institute for Social Research. The survey includes questions designed to gauge the respondents' attitudes about current [economic conditions](../e/economic_conditions.md) as well as their expectations for future economic prospects. Specifically, the survey questions cover three main areas: 1. **Opinions on Personal Financial Situation**: Questions related to whether the respondent's financial situation has improved, worsened, or remained the same compared to a year ago. 2. **Economic Prospects**: Questions concerning the respondents' outlook on the U.S. [economy](../e/economy.md) over the next year and over the next five years. 3. **Buying Conditions**: Questions about the respondents' views on whether it is a good or bad time to make significant purchases, such as houses, cars, and other durable goods. -The responses to these questions are then aggregated and scaled to form the [index](../i/index.md). The [baseline](../b/baseline.md) [value](../v/value.md) of 100 was set in 1966; thus, an [index](../i/index.md) [value](../v/value.md) above 100 indicates increased consumer confidence compared to that year, while a [value](../v/value.md) below 100 indicates lower confidence. +The responses to these questions are then aggregated and scaled to form the [index](../i/index_instrument.md). The [baseline](../b/baseline.md) [value](../v/value.md) of 100 was set in 1966; thus, an [index](../i/index_instrument.md) [value](../v/value.md) above 100 indicates increased consumer confidence compared to that year, while a [value](../v/value.md) below 100 indicates lower confidence. ## Significance of the MCSI @@ -28,15 +28,15 @@ For investors, the MCSI is a vital tool in gauging [market sentiment](../m/marke ### Policy Formulation -Government bodies and the Federal Reserve often refer to the MCSI when formulating fiscal and monetary policies. For example, if the [index](../i/index.md) indicates declining consumer confidence, the Fed might consider lowering [interest](../i/interest.md) rates to stimulate economic activity. On the other hand, strong consumer sentiment may lead to tighter monetary policies to prevent the [economy](../e/economy.md) from overheating. +Government bodies and the Federal Reserve often refer to the MCSI when formulating fiscal and monetary policies. For example, if the [index](../i/index_instrument.md) indicates declining consumer confidence, the Fed might consider lowering [interest](../i/interest.md) rates to stimulate economic activity. On the other hand, strong consumer sentiment may lead to tighter monetary policies to prevent the [economy](../e/economy.md) from overheating. ## Historical Trends and Key Observations ### Correlation with Major Economic Events The MCSI has often mirrored significant economic events. For example: -- **The [Great Recession](../g/great_recession.md) (2007-2009)**: During this period, the [index](../i/index.md) plummeted as consumer confidence was severely impacted by financial instability and high [unemployment](../u/unemployment.md) rates. -- **COVID-19 Pandemic**: The [index](../i/index.md) saw a sharp decline in early 2020 as the pandemic triggered economic [uncertainty](../u/uncertainty_in_trading.md) and led to widespread job losses. +- **The [Great Recession](../g/great_recession.md) (2007-2009)**: During this period, the [index](../i/index_instrument.md) plummeted as consumer confidence was severely impacted by financial instability and high [unemployment](../u/unemployment.md) rates. +- **COVID-19 Pandemic**: The [index](../i/index_instrument.md) saw a sharp decline in early 2020 as the pandemic triggered economic [uncertainty](../u/uncertainty_in_trading.md) and led to widespread job losses. ### Seasonal Variations @@ -49,11 +49,11 @@ The MCSI generally exhibits variations that correlate with specific seasons: While the MCSI is a [robust](../r/robust.md) tool, it is not without limitations: 1. **[Sampling](../s/sampling.md) Bias**: The survey may not fully represent all [demographics](../d/demographics.md), especially underrepresented groups, which could skew the results. -2. **[Lagging Indicator](../l/lagging_indicator.md)**: As a survey-based measure, the [index](../i/index.md) might lag behind real-time economic changes. +2. **[Lagging Indicator](../l/lagging_indicator.md)**: As a survey-based measure, the [index](../i/index_instrument.md) might lag behind real-time economic changes. 3. **Subjectivity**: The responses are inherently subjective and influenced by the respondents' personal situations and perceptions, which may not always reflect broader [economic conditions](../e/economic_conditions.md) accurately. ## Conclusion -The Michigan Consumer Sentiment [Index](../i/index.md) is a crucial instrument for understanding the economic health and consumer outlook in the United States. By providing insights into consumer attitudes and expectations, the MCSI helps policymakers, investors, and economists make informed decisions. Despite its limitations, the [index](../i/index.md) remains a valuable tool in anticipating economic trends and shaping monetary and fiscal policies. +The Michigan Consumer Sentiment [Index](../i/index_instrument.md) is a crucial instrument for understanding the economic health and consumer outlook in the United States. By providing insights into consumer attitudes and expectations, the MCSI helps policymakers, investors, and economists make informed decisions. Despite its limitations, the [index](../i/index_instrument.md) remains a valuable tool in anticipating economic trends and shaping monetary and fiscal policies. For more detailed and up-to-date information, visit the University of Michigan's official page for the Surveys of Consumers: [University of Michigan Surveys of Consumers](https://data.sca.isr.umich.edu). \ No newline at end of file diff --git a/en/pedia/m/micro_cap.md b/en/pedia/m/micro_cap.md index 4a33bde9..3b86d217 100644 --- a/en/pedia/m/micro_cap.md +++ b/en/pedia/m/micro_cap.md @@ -36,10 +36,10 @@ Micro cap [stocks](../s/stock.md) can be more sensitive to changes in the broade ## Popular Micro Cap Indices ### Russell Microcap Index -The Russell Microcap [Index](../i/index.md) is a [capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md) that measures the performance of the smallest 1,000 companies in the [Russell 2000 Index](../r/russell_2000_index.md), plus the next 1,000 smallest eligible companies by [market capitalization](../m/market_capitalization.md) in the [Russell 3000 Index](../r/russell_3000_index.md). The [index](../i/index.md) serves as a [benchmark](../b/benchmark.md) for micro cap [stocks](../s/stock.md) and provides insights into the performance of this segment of the [market](../m/market.md). +The Russell Microcap [Index](../i/index_instrument.md) is a [capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md) that measures the performance of the smallest 1,000 companies in the [Russell 2000 Index](../r/russell_2000_index.md), plus the next 1,000 smallest eligible companies by [market capitalization](../m/market_capitalization.md) in the [Russell 3000 Index](../r/russell_3000_index.md). The [index](../i/index_instrument.md) serves as a [benchmark](../b/benchmark.md) for micro cap [stocks](../s/stock.md) and provides insights into the performance of this segment of the [market](../m/market.md). ### S&P MicroCap 600 Index -The S&P MicroCap 600 [Index](../i/index.md) is another widely used [benchmark](../b/benchmark.md) for micro cap [stocks](../s/stock.md). It includes 600 companies, selected based on [market](../m/market.md) cap, [liquidity](../l/liquidity.md), and financial viability. The [index](../i/index.md) aims to provide a comprehensive representation of the micro cap universe in the U.S. [equity market](../e/equity_market.md). +The S&P MicroCap 600 [Index](../i/index_instrument.md) is another widely used [benchmark](../b/benchmark.md) for micro cap [stocks](../s/stock.md). It includes 600 companies, selected based on [market](../m/market.md) cap, [liquidity](../l/liquidity.md), and financial viability. The [index](../i/index_instrument.md) aims to provide a comprehensive representation of the micro cap universe in the U.S. [equity market](../e/equity_market.md). ## Prominent Examples of Micro Cap Companies diff --git a/en/pedia/m/micro_futures_trading.md b/en/pedia/m/micro_futures_trading.md index 8ea28ab4..2bcc35bf 100644 --- a/en/pedia/m/micro_futures_trading.md +++ b/en/pedia/m/micro_futures_trading.md @@ -12,7 +12,7 @@ Micro [futures contracts](../f/futures_contracts.md) have emerged as a popular a ### Equity Index Micro Futures -[Equity](../e/equity.md) [index](../i/index.md) micro [futures](../f/futures.md) are based on [market](../m/market.md) indexes like the S&P 500, Dow Jones Industrial Average, and the [NASDAQ](../n/nasdaq.md)-100. For instance, the CME Group offers Micro [E-mini](../e/e-mini.md) [futures](../f/futures.md) on the S&P 500 (MES), [NASDAQ](../n/nasdaq.md)-100 (MNQ), Dow Jones Industrial Average (MYM), and Russell 2000 (M2K). These contracts allow traders to [hedge](../h/hedge.md) portfolio risks or speculate on the direction of [equity](../e/equity.md) markets with a smaller [capital](../c/capital.md) outlay. +[Equity](../e/equity.md) [index](../i/index_instrument.md) micro [futures](../f/futures.md) are based on [market](../m/market.md) indexes like the S&P 500, Dow Jones Industrial Average, and the [NASDAQ](../n/nasdaq.md)-100. For instance, the CME Group offers Micro [E-mini](../e/e-mini.md) [futures](../f/futures.md) on the S&P 500 (MES), [NASDAQ](../n/nasdaq.md)-100 (MNQ), Dow Jones Industrial Average (MYM), and Russell 2000 (M2K). These contracts allow traders to [hedge](../h/hedge.md) portfolio risks or speculate on the direction of [equity](../e/equity.md) markets with a smaller [capital](../c/capital.md) outlay. ### Commodity Micro Futures @@ -40,7 +40,7 @@ CME Group (https://www.cmegroup.com/) is the leading marketplace for micro [futu ### ICE (Intercontinental Exchange) -ICE (https://www.theice.com/) is another major player [offering](../o/offering.md) micro [futures contracts](../f/futures_contracts.md). They provide trading platforms for a [range](../r/range.md) of commodities, financials, and [equity](../e/equity.md) [index](../i/index.md) contracts. Their micro contracts are designed to [offer](../o/offer.md) institutional-grade access to retail traders. +ICE (https://www.theice.com/) is another major player [offering](../o/offering.md) micro [futures contracts](../f/futures_contracts.md). They provide trading platforms for a [range](../r/range.md) of commodities, financials, and [equity](../e/equity.md) [index](../i/index_instrument.md) contracts. Their micro contracts are designed to [offer](../o/offer.md) institutional-grade access to retail traders. ### Eurex diff --git a/en/pedia/m/mid-cap_fund.md b/en/pedia/m/mid-cap_fund.md index f24f648f..bfea643c 100644 --- a/en/pedia/m/mid-cap_fund.md +++ b/en/pedia/m/mid-cap_fund.md @@ -19,7 +19,7 @@ While [mid-cap](../m/mid-cap.md) funds [offer](../o/offer.md) significant growth [Mid-cap](../m/mid-cap.md) funds achieve [diversification](../d/diversification.md) by [investing](../i/investing.md) in a wide [range](../r/range.md) of [mid-cap](../m/mid-cap.md) companies across various sectors. This helps to mitigate the risks associated with [investing](../i/investing.md) in a single company or [industry](../i/industry.md). ### Active vs. Passive Management -[Mid-cap](../m/mid-cap.md) funds can be actively or passively managed. Actively managed funds have a team of professional [fund](../f/fund.md) managers who select [stocks](../s/stock.md) based on research and analysis to [outperform](../o/outperform.md) the [market](../m/market.md). Passively managed funds, such as [index](../i/index.md) funds or ETFs, aim to replicate the performance of a specific [mid-cap](../m/mid-cap.md) [index](../i/index.md), such as the S&P MidCap 400 [Index](../i/index.md). +[Mid-cap](../m/mid-cap.md) funds can be actively or passively managed. Actively managed funds have a team of professional [fund](../f/fund.md) managers who select [stocks](../s/stock.md) based on research and analysis to [outperform](../o/outperform.md) the [market](../m/market.md). Passively managed funds, such as [index](../i/index_instrument.md) funds or ETFs, aim to replicate the performance of a specific [mid-cap](../m/mid-cap.md) [index](../i/index_instrument.md), such as the S&P MidCap 400 [Index](../i/index_instrument.md). ### Sector Allocation [Fund](../f/fund.md) managers often allocate investments across different sectors, such as technology, healthcare, and [consumer goods](../c/consumer_goods.md), to take advantage of growth opportunities and manage sector-specific risks. @@ -71,13 +71,13 @@ Blend funds invest in a mix of large-cap, [mid-cap](../m/mid-cap.md), and small- ## Popular Mid-Cap Funds ### Vanguard Mid-Cap Index Fund (VIMAX) -The Vanguard [Mid-Cap](../m/mid-cap.md) [Index Fund](../i/index_fund.md) seeks to track the performance of the CRSP US Mid Cap [Index](../i/index.md), [offering](../o/offering.md) broad exposure to [mid-cap stocks](../m/mid-cap_stocks.md) across various sectors. [More Info](https://investor.vanguard.com/mutual-funds/profile/VIMAX) +The Vanguard [Mid-Cap](../m/mid-cap.md) [Index Fund](../i/index_fund.md) seeks to track the performance of the CRSP US Mid Cap [Index](../i/index_instrument.md), [offering](../o/offering.md) broad exposure to [mid-cap stocks](../m/mid-cap_stocks.md) across various sectors. [More Info](https://investor.vanguard.com/mutual-funds/profile/VIMAX) ### T. Rowe Price Mid-Cap Growth Fund (RPMGX) The T. Rowe Price [Mid-Cap](../m/mid-cap.md) [Growth Fund](../g/growth_fund.md) focuses on quality [mid-cap](../m/mid-cap.md) companies with strong growth prospects. The [fund](../f/fund.md) aims to achieve long-term [capital](../c/capital.md) appreciation. [More Info](https://www.troweprice.com/personal-investing/funds/rpgrx) ### Fidelity Mid Cap Enhanced Index Fund (FMEIX) -The Fidelity Mid Cap Enhanced [Index Fund](../i/index_fund.md) seeks a higher [total return](../t/total_return.md) than that of the Russell Midcap [Index](../i/index.md) by [investing](../i/investing.md) in [mid-cap stocks](../m/mid-cap_stocks.md) with enhanced exposure to [value](../v/value.md) and growth factors. [More Info](https://fundresearch.fidelity.com/mutual-funds/summary/316146548) +The Fidelity Mid Cap Enhanced [Index Fund](../i/index_fund.md) seeks a higher [total return](../t/total_return.md) than that of the Russell Midcap [Index](../i/index_instrument.md) by [investing](../i/investing.md) in [mid-cap stocks](../m/mid-cap_stocks.md) with enhanced exposure to [value](../v/value.md) and growth factors. [More Info](https://fundresearch.fidelity.com/mutual-funds/summary/316146548) ## Conclusion diff --git a/en/pedia/m/mid-cap_stocks.md b/en/pedia/m/mid-cap_stocks.md index d7c36c49..9da7efb3 100644 --- a/en/pedia/m/mid-cap_stocks.md +++ b/en/pedia/m/mid-cap_stocks.md @@ -91,14 +91,14 @@ #### Commonly Used Mid-Cap Indexes -1. **S&P MidCap 400 [Index](../i/index.md):** - This [index](../i/index.md) measures the performance of 400 mid-sized companies in the United States, providing a broad representation of the middle segment of the [market](../m/market.md). [S&P MidCap 400 Index](https://www.spglobal.com/spdji/en/indices/equity/sp-400-midcap-index/) +1. **S&P MidCap 400 [Index](../i/index_instrument.md):** + This [index](../i/index_instrument.md) measures the performance of 400 mid-sized companies in the United States, providing a broad representation of the middle segment of the [market](../m/market.md). [S&P MidCap 400 Index](https://www.spglobal.com/spdji/en/indices/equity/sp-400-midcap-index/) -2. **Russell Midcap [Index](../i/index.md):** - Part of the broader [Russell 1000 Index](../r/russell_1000_index.md), the Russell Midcap [Index](../i/index.md) tracks the performance of approximately 800 US-based [mid-cap](../m/mid-cap.md) [stocks](../s/stock.md) and is widely used by investors for benchmarking [mid-cap](../m/mid-cap.md) performance. [Russell Midcap Index](https://www.ftserussell.com/products/indices/russell-us) +2. **Russell Midcap [Index](../i/index_instrument.md):** + Part of the broader [Russell 1000 Index](../r/russell_1000_index.md), the Russell Midcap [Index](../i/index_instrument.md) tracks the performance of approximately 800 US-based [mid-cap](../m/mid-cap.md) [stocks](../s/stock.md) and is widely used by investors for benchmarking [mid-cap](../m/mid-cap.md) performance. [Russell Midcap Index](https://www.ftserussell.com/products/indices/russell-us) -3. **[NASDAQ](../n/nasdaq.md) MidCap [Index](../i/index.md):** - This [index](../i/index.md) comprises [mid-cap](../m/mid-cap.md) companies [listed](../l/listed.md) on the [NASDAQ](../n/nasdaq.md) [exchange](../e/exchange.md), focusing on various industries and providing a balanced view of [mid-cap](../m/mid-cap.md) performance within the technology-heavy [NASDAQ](../n/nasdaq.md) [market](../m/market.md). [NASDAQ MidCap Index](https://indexes.nasdaq.com/) +3. **[NASDAQ](../n/nasdaq.md) MidCap [Index](../i/index_instrument.md):** + This [index](../i/index_instrument.md) comprises [mid-cap](../m/mid-cap.md) companies [listed](../l/listed.md) on the [NASDAQ](../n/nasdaq.md) [exchange](../e/exchange.md), focusing on various industries and providing a balanced view of [mid-cap](../m/mid-cap.md) performance within the technology-heavy [NASDAQ](../n/nasdaq.md) [market](../m/market.md). [NASDAQ MidCap Index](https://indexes.nasdaq.com/) #### Conclusion diff --git a/en/pedia/m/misery_index.md b/en/pedia/m/misery_index.md index b8d0f864..1d5ed3f6 100644 --- a/en/pedia/m/misery_index.md +++ b/en/pedia/m/misery_index.md @@ -1,23 +1,23 @@ # Misery Index -The Misery [Index](../i/index.md) is an [economic indicator](../e/economic_indicator.md) created to provide a snapshot of the economic well-being of a country. This [index](../i/index.md) combines two critical variables: [inflation](../i/inflation.md) and [unemployment](../u/unemployment.md) rates. It operates under the premise that high levels of both [inflation](../i/inflation.md) and [unemployment](../u/unemployment.md) can lead to significant economic hardship for the average citizen. The [index](../i/index.md) is simple in its calculation but profound in its implications, capturing two of the most potent economic stressors faced by households. +The Misery [Index](../i/index_instrument.md) is an [economic indicator](../e/economic_indicator.md) created to provide a snapshot of the economic well-being of a country. This [index](../i/index_instrument.md) combines two critical variables: [inflation](../i/inflation.md) and [unemployment](../u/unemployment.md) rates. It operates under the premise that high levels of both [inflation](../i/inflation.md) and [unemployment](../u/unemployment.md) can lead to significant economic hardship for the average citizen. The [index](../i/index_instrument.md) is simple in its calculation but profound in its implications, capturing two of the most potent economic stressors faced by households. ## Historical Background -The Misery [Index](../i/index.md) was developed by [economist](../e/economist.md) Arthur Okun in the 1970s during his tenure as an economic advisor to President Lyndon B. Johnson. It initially aimed to provide a singular, comprehensive view of the economic discomfort people experience. Over the years, the [index](../i/index.md) has been adapted and modified by various economists to reflect a broader [range](../r/range.md) of [economic conditions](../e/economic_conditions.md). +The Misery [Index](../i/index_instrument.md) was developed by [economist](../e/economist.md) Arthur Okun in the 1970s during his tenure as an economic advisor to President Lyndon B. Johnson. It initially aimed to provide a singular, comprehensive view of the economic discomfort people experience. Over the years, the [index](../i/index_instrument.md) has been adapted and modified by various economists to reflect a broader [range](../r/range.md) of [economic conditions](../e/economic_conditions.md). ## Calculation of the Misery Index -The basic formula to calculate the Misery [Index](../i/index.md) is: +The basic formula to calculate the Misery [Index](../i/index_instrument.md) is: ``` -Misery [Index](../i/index.md) = [Inflation](../i/inflation.md) Rate + [Unemployment Rate](../u/unemployment_rate.md) +Misery [Index](../i/index_instrument.md) = [Inflation](../i/inflation.md) Rate + [Unemployment Rate](../u/unemployment_rate.md) ``` -For instance, if a country has an [inflation](../i/inflation.md) rate of 5% and an [unemployment rate](../u/unemployment_rate.md) of 7%, the Misery [Index](../i/index.md) would be: +For instance, if a country has an [inflation](../i/inflation.md) rate of 5% and an [unemployment rate](../u/unemployment_rate.md) of 7%, the Misery [Index](../i/index_instrument.md) would be: ``` -Misery [Index](../i/index.md) = 5% + 7% = 12% +Misery [Index](../i/index_instrument.md) = 5% + 7% = 12% ``` This [value](../v/value.md) can be interpreted as a high level of economic hardship for citizens, suggesting that both prices are rising, and many people are out of work. @@ -32,54 +32,54 @@ The [unemployment rate](../u/unemployment_rate.md) is the percentage of the labo ## Extended Versions -Over time, various economists have extended the Misery [Index](../i/index.md) to include other factors, such as [interest](../i/interest.md) rates, GDP growth, and even public [debt](../d/debt.md). Some of these extended versions include: +Over time, various economists have extended the Misery [Index](../i/index_instrument.md) to include other factors, such as [interest](../i/interest.md) rates, GDP growth, and even public [debt](../d/debt.md). Some of these extended versions include: ### The Barro Misery Index Developed by [economist](../e/economist.md) Robert J. Barro, this version adds [interest](../i/interest.md) rates to the calculation: ``` -Barro Misery [Index](../i/index.md) = [Inflation](../i/inflation.md) Rate + [Unemployment Rate](../u/unemployment_rate.md) + [Interest Rate](../i/interest_rate.md) +Barro Misery [Index](../i/index_instrument.md) = [Inflation](../i/inflation.md) Rate + [Unemployment Rate](../u/unemployment_rate.md) + [Interest Rate](../i/interest_rate.md) ``` This version attempts to provide a more comprehensive view by including the cost of borrowing. ### Hanke’s Annual Misery Index [Economist](../e/economist.md) Steve H. Hanke developed a variation that includes GDP [per capita](../p/per_capita.md) growth and public [debt](../d/debt.md) as components: ``` -Hanke Misery [Index](../i/index.md) = [Inflation](../i/inflation.md) Rate + [Unemployment Rate](../u/unemployment_rate.md) + Lending Rate - GDP Growth Rate +Hanke Misery [Index](../i/index_instrument.md) = [Inflation](../i/inflation.md) Rate + [Unemployment Rate](../u/unemployment_rate.md) + Lending Rate - GDP Growth Rate ``` Hanke’s approach seeks to incorporate more dynamic elements of the [economy](../e/economy.md) to capture the complexities of modern economic stress. ## Practical Applications ### Policy Analysis -Policymakers use the Misery [Index](../i/index.md) to gauge the effectiveness of economic policies. High Misery [Index](../i/index.md) values often signal the need for corrective measures, such as [monetary policy](../m/monetary_policy.md) adjustments or fiscal interventions. +Policymakers use the Misery [Index](../i/index_instrument.md) to gauge the effectiveness of economic policies. High Misery [Index](../i/index_instrument.md) values often signal the need for corrective measures, such as [monetary policy](../m/monetary_policy.md) adjustments or fiscal interventions. ### Investment Decisions -Investors consider the Misery [Index](../i/index.md) when making investment decisions. A rising Misery [Index](../i/index.md) could signify economic trouble, prompting investors to seek safer assets or [hedge](../h/hedge.md) against potential risks. +Investors consider the Misery [Index](../i/index_instrument.md) when making investment decisions. A rising Misery [Index](../i/index_instrument.md) could signify economic trouble, prompting investors to seek safer assets or [hedge](../h/hedge.md) against potential risks. ### Public Perception -High Misery [Index](../i/index.md) values can have political ramifications, influencing public opinion and voter behavior. Politicians often reference the [index](../i/index.md) during campaigns to criticize current economic policies or to highlight their proposals for mitigating economic hardship. +High Misery [Index](../i/index_instrument.md) values can have political ramifications, influencing public opinion and voter behavior. Politicians often reference the [index](../i/index_instrument.md) during campaigns to criticize current economic policies or to highlight their proposals for mitigating economic hardship. ## Criticisms and Limitations -While the Misery [Index](../i/index.md) is useful, it has several limitations: +While the Misery [Index](../i/index_instrument.md) is useful, it has several limitations: ### Limited Scope -The traditional Misery [Index](../i/index.md) only accounts for [inflation](../i/inflation.md) and [unemployment](../u/unemployment.md), potentially overlooking other economic factors like [income inequality](../i/income_inequality.md), healthcare affordability, and housing costs. +The traditional Misery [Index](../i/index_instrument.md) only accounts for [inflation](../i/inflation.md) and [unemployment](../u/unemployment.md), potentially overlooking other economic factors like [income inequality](../i/income_inequality.md), healthcare affordability, and housing costs. ### Static Nature -The [index](../i/index.md) offers a snapshot at a single point in time but may miss longer-term trends or transient economic disruptions. +The [index](../i/index_instrument.md) offers a snapshot at a single point in time but may miss longer-term trends or transient economic disruptions. ### Subjectivity of Components -Different methods of measuring [inflation](../i/inflation.md) and [unemployment](../u/unemployment.md) can [yield](../y/yield.md) varying results. For instance, "headline" vs. "core" [inflation](../i/inflation.md) and different definitions of "[unemployment](../u/unemployment.md)" can affect the Misery [Index](../i/index.md). +Different methods of measuring [inflation](../i/inflation.md) and [unemployment](../u/unemployment.md) can [yield](../y/yield.md) varying results. For instance, "headline" vs. "core" [inflation](../i/inflation.md) and different definitions of "[unemployment](../u/unemployment.md)" can affect the Misery [Index](../i/index_instrument.md). ## Real-World Examples ### United States -In the U.S., the Misery [Index](../i/index.md) has seen significant fluctuations over decades. In the 1970s, the U.S. faced [stagflation](../s/stagflation.md), a period characterized by high [inflation](../i/inflation.md) and high [unemployment](../u/unemployment.md), leading to a soaring Misery [Index](../i/index.md). Economic policies aimed at tackling [stagflation](../s/stagflation.md) often reference this period as a cautionary tale. +In the U.S., the Misery [Index](../i/index_instrument.md) has seen significant fluctuations over decades. In the 1970s, the U.S. faced [stagflation](../s/stagflation.md), a period characterized by high [inflation](../i/inflation.md) and high [unemployment](../u/unemployment.md), leading to a soaring Misery [Index](../i/index_instrument.md). Economic policies aimed at tackling [stagflation](../s/stagflation.md) often reference this period as a cautionary tale. ### Venezuela -Countries experiencing severe economic crises, such as Venezuela, often exhibit extremely high Misery [Index](../i/index.md) values. In Venezuela, [hyperinflation](../h/hyperinflation.md) and skyrocketing [unemployment](../u/unemployment.md) rates have led to significant economic and social hardship. +Countries experiencing severe economic crises, such as Venezuela, often exhibit extremely high Misery [Index](../i/index_instrument.md) values. In Venezuela, [hyperinflation](../h/hyperinflation.md) and skyrocketing [unemployment](../u/unemployment.md) rates have led to significant economic and social hardship. ## Conclusion -The Misery [Index](../i/index.md) offers a straightforward yet insightful glimpse into the economic health of a nation. By combining [inflation](../i/inflation.md) and [unemployment](../u/unemployment.md), it captures two of the most critical factors contributing to economic discomfort. While the [index](../i/index.md) has its limitations and has been extended in various forms, its core premise remains a valuable tool for policymakers, investors, and the general public in understanding [economic conditions](../e/economic_conditions.md). \ No newline at end of file +The Misery [Index](../i/index_instrument.md) offers a straightforward yet insightful glimpse into the economic health of a nation. By combining [inflation](../i/inflation.md) and [unemployment](../u/unemployment.md), it captures two of the most critical factors contributing to economic discomfort. While the [index](../i/index_instrument.md) has its limitations and has been extended in various forms, its core premise remains a valuable tool for policymakers, investors, and the general public in understanding [economic conditions](../e/economic_conditions.md). \ No newline at end of file diff --git a/en/pedia/m/momentum.md b/en/pedia/m/momentum.md index 62c00ede..b7e39a7a 100644 --- a/en/pedia/m/momentum.md +++ b/en/pedia/m/momentum.md @@ -6,7 +6,7 @@ Momentum is a widely-used concept in both trading and [finance](../f/finance.md) In the [financial markets](../f/financial_market.md), momentum refers to the tendency of securities to continue moving in a given direction. This could mean an upward (bullish) or downward (bearish) direction over a specific period. Momentum is typically measured over periods ranging from a few hours to several months, depending on the [trader](../t/trader.md)'s strategy and the [financial instrument](../f/financial_instrument.md) involved. The basic premise is that securities that have shown strong performance (upward momentum) tend to continue to [outperform](../o/outperform.md), and those that have shown poor performance (downward momentum) tend to continue to [underperform](../u/underperform.md), over short to intermediate time horizons. -Momentum can be quantified through various indicators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and rate of change indicators. Interestingly, momentum can also occur in various [asset](../a/asset.md) classes including [stocks](../s/stock.md), bonds, commodities, and cryptocurrencies. +Momentum can be quantified through various indicators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and rate of change indicators. Interestingly, momentum can also occur in various [asset](../a/asset.md) classes including [stocks](../s/stock.md), bonds, commodities, and cryptocurrencies. ## Historical Perspective @@ -27,7 +27,7 @@ Momentum can be classified into several types, depending on the strategy and par ### Price Momentum -[Price momentum](../p/price_momentum.md) focuses on the changes in the price of the [asset](../a/asset.md). It's usually measured by comparing the current price with the price from a previous period. For example, a [trader](../t/trader.md) might look at a stock's performance over the past six months and buy if it has outperformed a [benchmark](../b/benchmark.md) [index](../i/index.md). +[Price momentum](../p/price_momentum.md) focuses on the changes in the price of the [asset](../a/asset.md). It's usually measured by comparing the current price with the price from a previous period. For example, a [trader](../t/trader.md) might look at a stock's performance over the past six months and buy if it has outperformed a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). ### Volume Momentum diff --git a/en/pedia/m/momentum_analysis.md b/en/pedia/m/momentum_analysis.md index ca0b3ee6..4a893e6a 100644 --- a/en/pedia/m/momentum_analysis.md +++ b/en/pedia/m/momentum_analysis.md @@ -17,7 +17,7 @@ Key Indicators and Measures [Momentum](../m/momentum.md) analysis relies on various indicators and [mathematical models](../m/mathematical_models_in_trading.md) to quantify a [security](../s/security.md)'s [momentum](../m/momentum.md). Some of the most frequently used indicators include: -1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: +1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: The RSI measures the speed and change of price movements. It compares the magnitude of recent gains to recent losses to determine [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. A stock is typically considered [overbought](../o/overbought.md) when RSI exceeds 70 and [oversold](../o/oversold.md) when it falls below 30. 2. **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: diff --git a/en/pedia/m/momentum_factor.md b/en/pedia/m/momentum_factor.md index 7dc1e402..949ef684 100644 --- a/en/pedia/m/momentum_factor.md +++ b/en/pedia/m/momentum_factor.md @@ -10,11 +10,11 @@ The concept of [momentum](../m/momentum.md) is not new; it dates back to at leas ### Relative Strength -[Relative strength](../r/relative_strength.md) is a measure used in [momentum](../m/momentum.md) strategies to compare the performance of an [asset](../a/asset.md) against a [benchmark](../b/benchmark.md) or against other assets. The [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI) is a popular technical [indicator](../i/indicator.md) that gauges the speed and change of price movements. The RSI is often used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [security](../s/security.md). +[Relative strength](../r/relative_strength.md) is a measure used in [momentum](../m/momentum.md) strategies to compare the performance of an [asset](../a/asset.md) against a [benchmark](../b/benchmark.md) or against other assets. The [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI) is a popular technical [indicator](../i/indicator.md) that gauges the speed and change of price movements. The RSI is often used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [security](../s/security.md). ### Alpha and Beta -In the context of [momentum investing](../m/momentum_investing.md), [alpha](../a/alpha.md) represents the excess returns of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index.md). Positive [alpha](../a/alpha.md) indicates that an investment has outperformed the [market](../m/market.md), whereas negative [alpha](../a/alpha.md) indicates underperformance. [Beta](../b/beta.md), on the other hand, measures the [volatility](../v/volatility.md) of an investment relative to the [market](../m/market.md). High-[beta](../b/beta.md) [stocks](../s/stock.md) are more volatile, while low-[beta](../b/beta.md) [stocks](../s/stock.md) are less volatile. [Momentum](../m/momentum.md) strategies often seek to capture [alpha](../a/alpha.md) by focusing on high [momentum](../m/momentum.md) [stocks](../s/stock.md), regardless of their [beta](../b/beta.md). +In the context of [momentum investing](../m/momentum_investing.md), [alpha](../a/alpha.md) represents the excess returns of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). Positive [alpha](../a/alpha.md) indicates that an investment has outperformed the [market](../m/market.md), whereas negative [alpha](../a/alpha.md) indicates underperformance. [Beta](../b/beta.md), on the other hand, measures the [volatility](../v/volatility.md) of an investment relative to the [market](../m/market.md). High-[beta](../b/beta.md) [stocks](../s/stock.md) are more volatile, while low-[beta](../b/beta.md) [stocks](../s/stock.md) are less volatile. [Momentum](../m/momentum.md) strategies often seek to capture [alpha](../a/alpha.md) by focusing on high [momentum](../m/momentum.md) [stocks](../s/stock.md), regardless of their [beta](../b/beta.md). ### Time Horizons diff --git a/en/pedia/m/momentum_ignition_strategies.md b/en/pedia/m/momentum_ignition_strategies.md index aeb2305c..5e807a20 100644 --- a/en/pedia/m/momentum_ignition_strategies.md +++ b/en/pedia/m/momentum_ignition_strategies.md @@ -25,7 +25,7 @@ Once the initial ignition has taken place and other traders start to follow the [Momentum](../m/momentum.md) ignition strategies require extensive data analysis to identify suitable conditions for ignition. Key indicators and tools include: - **[Volume Analysis](../v/volume_analysis.md)**: High trading volumes can signal the potential for price movements. - **[Order Book Dynamics](../o/order_book_dynamics.md)**: The composition of buy and sell orders can help predict short-term price movements. -- **[Technical Indicators](../t/technical_indicators.md)**: Tools such as Moving Averages and [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) help identify [momentum](../m/momentum.md). +- **[Technical Indicators](../t/technical_indicators.md)**: Tools such as Moving Averages and [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) help identify [momentum](../m/momentum.md). ### Algorithm Design The algorithms designed for [momentum](../m/momentum.md) ignition strategies need to be highly sophisticated and often incorporate the following components: diff --git a/en/pedia/m/momentum_indicators.md b/en/pedia/m/momentum_indicators.md index 751a8b01..4521d63c 100644 --- a/en/pedia/m/momentum_indicators.md +++ b/en/pedia/m/momentum_indicators.md @@ -6,7 +6,7 @@ ##### 1. Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is one of the most popular [momentum](../m/momentum.md) indicators. Developed by J. Welles Wilder, the RSI measures the speed and change of price movements. RSI values [range](../r/range.md) from 0 to 100 and are primarily used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is one of the most popular [momentum](../m/momentum.md) indicators. Developed by J. Welles Wilder, the RSI measures the speed and change of price movements. RSI values [range](../r/range.md) from 0 to 100 and are primarily used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **[Overbought](../o/overbought.md):** Typically, an RSI above 70 is considered [overbought](../o/overbought.md). - **[Oversold](../o/oversold.md):** An RSI below 30 is considered [oversold](../o/oversold.md). @@ -59,7 +59,7 @@ Another line, known as \(\%D\), is the 3-day moving average of \(\%K\). ##### 4. Commodity Channel Index (CCI) -The [Commodity](../c/commodity.md) Channel [Index](../i/index.md) (CCI) is another valuable [momentum](../m/momentum.md)-based [oscillator](../o/oscillator.md) used to spot deviations from the average price. It helps in identifying cyclical trends. The CCI calculation: +The [Commodity](../c/commodity.md) Channel [Index](../i/index_instrument.md) (CCI) is another valuable [momentum](../m/momentum.md)-based [oscillator](../o/oscillator.md) used to spot deviations from the average price. It helps in identifying cyclical trends. The CCI calculation: \[ CCI = \frac{(\text{Typical Price} - \text{SMA})}{0.015 \times \text{Mean Deviation}} \] diff --git a/en/pedia/m/momentum_investing.md b/en/pedia/m/momentum_investing.md index ec8144c2..f0cbc185 100644 --- a/en/pedia/m/momentum_investing.md +++ b/en/pedia/m/momentum_investing.md @@ -32,7 +32,7 @@ Investors often overreact to new information, causing prices to move excessively ## Investment Vehicles -[Momentum](../m/momentum.md) [investing](../i/investing.md) can be applied across various [asset](../a/asset.md) classes and investment vehicles, including [stocks](../s/stock.md), ETFs, mutual funds, and bonds. Specialized [momentum](../m/momentum.md) ETFs and [index](../i/index.md) funds facilitate easier access to this strategy for individual investors. +[Momentum](../m/momentum.md) [investing](../i/investing.md) can be applied across various [asset](../a/asset.md) classes and investment vehicles, including [stocks](../s/stock.md), ETFs, mutual funds, and bonds. Specialized [momentum](../m/momentum.md) ETFs and [index](../i/index_instrument.md) funds facilitate easier access to this strategy for individual investors. ### Momentum ETFs [Exchange](../e/exchange.md)-traded funds (ETFs) focused on [momentum](../m/momentum.md) strategies aim to replicate the performance of indexes designed around [momentum](../m/momentum.md) principles. For example, the [iShares](../i/ishares.md) MSCI USA [Momentum Factor](../m/momentum_factor.md) ETF (MTUM) selects [stocks](../s/stock.md) based on their performance-driven [momentum](../m/momentum.md). diff --git a/en/pedia/m/momentum_oscillators.md b/en/pedia/m/momentum_oscillators.md index a6e8a23b..f6453925 100644 --- a/en/pedia/m/momentum_oscillators.md +++ b/en/pedia/m/momentum_oscillators.md @@ -4,7 +4,7 @@ ## Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is one of the most commonly used [momentum](../m/momentum.md) oscillators. Developed by J. Welles Wilder, Jr., the RSI measures the speed and change of price movements. It oscillates between 0 and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [security](../s/security.md). +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is one of the most commonly used [momentum](../m/momentum.md) oscillators. Developed by J. Welles Wilder, Jr., the RSI measures the speed and change of price movements. It oscillates between 0 and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [security](../s/security.md). ### Calculation @@ -63,7 +63,7 @@ Traders use the [Stochastic Oscillator](../s/stochastic_oscillator.md) to identi ## Commodity Channel Index (CCI) -Developed by Donald Lambert, the [Commodity](../c/commodity.md) Channel [Index](../i/index.md) (CCI) is a versatile [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the deviation of a [security](../s/security.md)'s price from its average price over a specified period, typically 20 days. +Developed by Donald Lambert, the [Commodity](../c/commodity.md) Channel [Index](../i/index_instrument.md) (CCI) is a versatile [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the deviation of a [security](../s/security.md)'s price from its average price over a specified period, typically 20 days. ### Calculation diff --git a/en/pedia/m/momentum_trading.md b/en/pedia/m/momentum_trading.md index 887247fd..1c52442e 100644 --- a/en/pedia/m/momentum_trading.md +++ b/en/pedia/m/momentum_trading.md @@ -7,7 +7,7 @@ This approach is based on the assumption that prices [will](../w/will.md) contin #### Key Components of Momentum Trading 1. **[Trend Analysis](../t/trend_analysis.md):** - [Momentum](../m/momentum.md) traders emphasize the importance of identifying trends. There are several methods to analyze trends, including moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and [price action analysis](../p/price_action_analysis.md). + [Momentum](../m/momentum.md) traders emphasize the importance of identifying trends. There are several methods to analyze trends, including moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and [price action analysis](../p/price_action_analysis.md). 2. **[Relative Strength](../r/relative_strength.md):** The concept of [relative strength](../r/relative_strength.md) measures how an [asset](../a/asset.md) is performing in relation to the [market](../m/market.md) or its [peer group](../p/peer_group.md). Traders use this to pinpoint strong-performing securities. @@ -27,7 +27,7 @@ This approach is based on the assumption that prices [will](../w/will.md) contin - **Simple Moving Average (SMA):** The average of a [security](../s/security.md)'s price over a specific time period. - **Exponential Moving Average (EMA):** Gives more weight to recent prices and reacts faster to price changes. -2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** +2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** - Measures the speed and change of price movements. RSI values above 70 indicate that a [security](../s/security.md) may be [overbought](../o/overbought.md), while values below 30 suggest it may be [oversold](../o/oversold.md). 3. **MACD:** diff --git a/en/pedia/m/money_flow.md b/en/pedia/m/money_flow.md index 747cb8bb..ae222c0f 100644 --- a/en/pedia/m/money_flow.md +++ b/en/pedia/m/money_flow.md @@ -36,7 +36,7 @@ Positive CMF values indicate accumulation (buying pressure), while negative valu ### 2. Money Flow Index (MFI) -The [Money](../m/money.md) Flow [Index](../i/index.md) (MFI) is a [momentum](../m/momentum.md) [indicator](../i/indicator.md) that uses price and [volume](../v/volume.md) data to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. It ranges from 0 to 100 and is often referred to as the [volume](../v/volume.md)-[weighted](../w/weighted.md) [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI). +The [Money](../m/money.md) Flow [Index](../i/index_instrument.md) (MFI) is a [momentum](../m/momentum.md) [indicator](../i/indicator.md) that uses price and [volume](../v/volume.md) data to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. It ranges from 0 to 100 and is often referred to as the [volume](../v/volume.md)-[weighted](../w/weighted.md) [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI). #### Calculation of MFI: @@ -123,7 +123,7 @@ Amazon, a global e-[commerce](../c/commerce.md) giant, has been the subject of e #### Example: -In 2020, during the COVID-19 pandemic, Amazon experienced significant positive [money](../m/money.md) flow as investors anticipated increased e-[commerce](../c/commerce.md) activity. This was reflected in the rising Chaikin [Money](../m/money.md) Flow and [Money](../m/money.md) Flow [Index](../i/index.md), leading to a substantial increase in Amazon's stock price. +In 2020, during the COVID-19 pandemic, Amazon experienced significant positive [money](../m/money.md) flow as investors anticipated increased e-[commerce](../c/commerce.md) activity. This was reflected in the rising Chaikin [Money](../m/money.md) Flow and [Money](../m/money.md) Flow [Index](../i/index_instrument.md), leading to a substantial increase in Amazon's stock price. ### Case Study 2: Tesla (TSLA) @@ -131,7 +131,7 @@ Tesla, a leading electric vehicle manufacturer, has a highly volatile stock that #### Example: -In early 2021, Tesla's stock price surged, accompanied by positive [money](../m/money.md) flow as indicated by the On-Balance [Volume](../v/volume.md) and [Money](../m/money.md) Flow [Index](../i/index.md). Traders who identified this positive [money](../m/money.md) flow [trend](../t/trend.md) were able to [capitalize](../c/capitalize.md) on the upward [price momentum](../p/price_momentum.md). +In early 2021, Tesla's stock price surged, accompanied by positive [money](../m/money.md) flow as indicated by the On-Balance [Volume](../v/volume.md) and [Money](../m/money.md) Flow [Index](../i/index_instrument.md). Traders who identified this positive [money](../m/money.md) flow [trend](../t/trend.md) were able to [capitalize](../c/capitalize.md) on the upward [price momentum](../p/price_momentum.md). ## Tools and Platforms for Money Flow Analysis @@ -163,4 +163,4 @@ Visit: [QuantConnect](https://www.quantconnect.com/) ## Conclusion -[Money](../m/money.md) flow is a crucial concept in [finance](../f/finance.md) and trading, [offering](../o/offering.md) valuable insights into [market sentiment](../m/market_sentiment.md), price movements, and [investor](../i/investor.md) behavior. By understanding and utilizing [money](../m/money.md) flow indicators and advanced techniques, traders and investors can make more informed decisions and enhance their [trading strategies](../t/trading_strategies.md). Whether through traditional methods like the Chaikin [Money](../m/money.md) Flow and [Money](../m/money.md) Flow [Index](../i/index.md) or through cutting-edge technologies like machine learning and [blockchain](../b/blockchain_in_trading.md), [money flow analysis](../m/money_flow_analysis.md) remains an indispensable tool in the ever-evolving [financial markets](../f/financial_market.md). \ No newline at end of file +[Money](../m/money.md) flow is a crucial concept in [finance](../f/finance.md) and trading, [offering](../o/offering.md) valuable insights into [market sentiment](../m/market_sentiment.md), price movements, and [investor](../i/investor.md) behavior. By understanding and utilizing [money](../m/money.md) flow indicators and advanced techniques, traders and investors can make more informed decisions and enhance their [trading strategies](../t/trading_strategies.md). Whether through traditional methods like the Chaikin [Money](../m/money.md) Flow and [Money](../m/money.md) Flow [Index](../i/index_instrument.md) or through cutting-edge technologies like machine learning and [blockchain](../b/blockchain_in_trading.md), [money flow analysis](../m/money_flow_analysis.md) remains an indispensable tool in the ever-evolving [financial markets](../f/financial_market.md). \ No newline at end of file diff --git a/en/pedia/m/money_flow_analysis.md b/en/pedia/m/money_flow_analysis.md index 129f8447..38bb1bb9 100644 --- a/en/pedia/m/money_flow_analysis.md +++ b/en/pedia/m/money_flow_analysis.md @@ -25,9 +25,9 @@ The [Money Flow](../m/money_flow.md) Ratio is calculated by dividing the sum of \[ \text{[Money Flow](../m/money_flow.md) Ratio} = \frac{\text{Positive [Money Flow](../m/money_flow.md)}}{\text{Negative [Money Flow](../m/money_flow.md)}} \] ### 4. Money Flow Index (MFI) -The [Money Flow](../m/money_flow.md) [Index](../i/index.md) is a [momentum](../m/momentum.md) [indicator](../i/indicator.md) that uses both price and [volume](../v/volume.md) data to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in an [asset](../a/asset.md). The MFI can be calculated using the [Money Flow](../m/money_flow.md) Ratio as follows: +The [Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md) is a [momentum](../m/momentum.md) [indicator](../i/indicator.md) that uses both price and [volume](../v/volume.md) data to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in an [asset](../a/asset.md). The MFI can be calculated using the [Money Flow](../m/money_flow.md) Ratio as follows: -\[ \text{[Money Flow](../m/money_flow.md) [Index](../i/index.md)} = 100 - \left( \frac{100}{1 + \text{[Money Flow](../m/money_flow.md) Ratio}} \right) \] +\[ \text{[Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md)} = 100 - \left( \frac{100}{1 + \text{[Money Flow](../m/money_flow.md) Ratio}} \right) \] ## Applications of Money Flow Analysis @@ -35,10 +35,10 @@ The [Money Flow](../m/money_flow.md) [Index](../i/index.md) is a [momentum](../m Traders use [Money Flow](../m/money_flow.md) Analysis to identify trends in [market sentiment](../m/market_sentiment.md). A high positive [money flow](../m/money_flow.md) generally indicates that a [security](../s/security.md) is experiencing buying pressure, leading to potential price increases. Conversely, high negative [money flow](../m/money_flow.md) can indicate selling pressure and potential price declines. ### Overbought and Oversold Conditions -The [Money Flow](../m/money_flow.md) [Index](../i/index.md) (MFI) is particularly useful for identifying [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. An MFI [value](../v/value.md) above 80 typically indicates that a [security](../s/security.md) may be [overbought](../o/overbought.md) and due for a price [correction](../c/correction.md). Conversely, an MFI [value](../v/value.md) below 20 may indicate that a [security](../s/security.md) is [oversold](../o/oversold.md) and could be due for a price increase. +The [Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md) (MFI) is particularly useful for identifying [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. An MFI [value](../v/value.md) above 80 typically indicates that a [security](../s/security.md) may be [overbought](../o/overbought.md) and due for a price [correction](../c/correction.md). Conversely, an MFI [value](../v/value.md) below 20 may indicate that a [security](../s/security.md) is [oversold](../o/oversold.md) and could be due for a price increase. ### Divergence Analysis -Analyzing divergences between the [Money Flow](../m/money_flow.md) [Index](../i/index.md) and the price of a [security](../s/security.md) can be a powerful tool. For example, if the price of a [security](../s/security.md) is making new highs while the MFI is making lower highs, this could indicate weakening buying pressure and potentially a nearing price [reversal](../r/reversal.md). +Analyzing divergences between the [Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md) and the price of a [security](../s/security.md) can be a powerful tool. For example, if the price of a [security](../s/security.md) is making new highs while the MFI is making lower highs, this could indicate weakening buying pressure and potentially a nearing price [reversal](../r/reversal.md). ### Volume Analysis Since MFA integrates trading [volume](../v/volume.md) into its calculations, it provides a more nuanced view compared to price-only indicators. [Volume](../v/volume.md) tends to precede price movements, giving traders an early signal of potential [market](../m/market.md) shifts. @@ -50,7 +50,7 @@ Several trading platforms and financial software [offer](../o/offer.md) tools to - **MetaTrader 4/5**: Popular trading platforms that [offer](../o/offer.md) built-in tools for [money flow](../m/money_flow.md) analysis and [technical indicators](../t/technical_indicators.md). - **[ThinkOrSwim](../t/thinkorswim.md) by TD [Ameritrade](../a/ameritrade.md)**: A professional [trading platform](../t/trading_platform.md) with advanced charting tools for [Money Flow](../m/money_flow.md) Analysis. - **[MetaStock](../m/metastock.md)**: Advanced software for traders that include [money flow](../m/money_flow.md) indicators. -- **[TradingView](../t/tradingview.md)**: An online charting platform that offers [Money Flow](../m/money_flow.md) [Index](../i/index.md) and other related indicators. [Visit TradingView](https://www.tradingview.com) +- **[TradingView](../t/tradingview.md)**: An online charting platform that offers [Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md) and other related indicators. [Visit TradingView](https://www.tradingview.com) ## Real-world Examples of Money Flow Analysis diff --git a/en/pedia/m/money_flow_index_(mfi).md b/en/pedia/m/money_flow_index_(mfi).md index 60a4e778..cbb88956 100644 --- a/en/pedia/m/money_flow_index_(mfi).md +++ b/en/pedia/m/money_flow_index_(mfi).md @@ -1,6 +1,6 @@ # Money Flow Index (MFI) -The [Money Flow](../m/money_flow.md) [Index](../i/index.md) (MFI) is a [momentum](../m/momentum.md) [indicator](../i/indicator.md) that uses both price and [volume](../v/volume.md) data to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in an [asset](../a/asset.md). It is similar to the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) but includes [volume](../v/volume.md), whereas the RSI considers only price. The MFI is a useful tool for traders and investors to gauge [market sentiment](../m/market_sentiment.md) and potential [reversal](../r/reversal.md) points in the [market](../m/market.md). +The [Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md) (MFI) is a [momentum](../m/momentum.md) [indicator](../i/indicator.md) that uses both price and [volume](../v/volume.md) data to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in an [asset](../a/asset.md). It is similar to the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) but includes [volume](../v/volume.md), whereas the RSI considers only price. The MFI is a useful tool for traders and investors to gauge [market sentiment](../m/market_sentiment.md) and potential [reversal](../r/reversal.md) points in the [market](../m/market.md). ### Calculation of MFI @@ -25,7 +25,7 @@ The MFI is calculated through a multi-step process that involves the use of typi MFR = \frac{\text{Positive [Money Flow](../m/money_flow.md) (over 14 periods)}}{\text{Negative [Money Flow](../m/money_flow.md) (over 14 periods)}} \] -5. **[Money Flow](../m/money_flow.md) [Index](../i/index.md) (MFI):** +5. **[Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md) (MFI):** \[ MFI = 100 - \frac{100}{1 + MFR} \] @@ -89,7 +89,7 @@ Assume the following data points (for simplicity): MFR = \frac{50000000}{30000000} = 1.67 \] -5. **[Money Flow](../m/money_flow.md) [Index](../i/index.md) (MFI):** +5. **[Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md) (MFI):** \[ MFI = 100 - \frac{100}{1 + 1.67} \approx 62.5 \] @@ -136,4 +136,4 @@ Several trading platforms and tools [offer](../o/offer.md) built-in MFI indicato ### Conclusion -The [Money Flow](../m/money_flow.md) [Index](../i/index.md) (MFI) is a compelling tool that blends price and [volume](../v/volume.md) to give traders insights into the strength of [market](../m/market.md) movements. Its application in identifying [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, along with potential divergences, makes it a valuable addition to any [trader](../t/trader.md)’s toolkit. Be it for manual or [algorithmic trading](../a/algorithmic_trading.md), understanding and utilizing the MFI can help in making more informed and potentially profitable trading decisions. +The [Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md) (MFI) is a compelling tool that blends price and [volume](../v/volume.md) to give traders insights into the strength of [market](../m/market.md) movements. Its application in identifying [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, along with potential divergences, makes it a valuable addition to any [trader](../t/trader.md)’s toolkit. Be it for manual or [algorithmic trading](../a/algorithmic_trading.md), understanding and utilizing the MFI can help in making more informed and potentially profitable trading decisions. diff --git a/en/pedia/m/mongolian_stock_exchange_(mse).md b/en/pedia/m/mongolian_stock_exchange_(mse).md index 251cd782..8da6a54d 100644 --- a/en/pedia/m/mongolian_stock_exchange_(mse).md +++ b/en/pedia/m/mongolian_stock_exchange_(mse).md @@ -18,9 +18,9 @@ The Mongolian Stock [Exchange](../e/exchange.md) operates through a fully electr Several indices are tracked on the MSE. The most prominent are: -1. **MSE Top 20 [Index](../i/index.md)**: It tracks the performance of the top 20 most [liquid](../l/liquid.md) [stocks](../s/stock.md) on the [exchange](../e/exchange.md). -2. **MSE A [Index](../i/index.md)**: It includes companies with strict [corporate governance](../c/corporate_governance.md) and [disclosure](../d/disclosure.md) standards. -3. **MSE B [Index](../i/index.md)**: It comprises companies that have slightly relaxed standards compared to those in the MSE A [Index](../i/index.md). +1. **MSE Top 20 [Index](../i/index_instrument.md)**: It tracks the performance of the top 20 most [liquid](../l/liquid.md) [stocks](../s/stock.md) on the [exchange](../e/exchange.md). +2. **MSE A [Index](../i/index_instrument.md)**: It includes companies with strict [corporate governance](../c/corporate_governance.md) and [disclosure](../d/disclosure.md) standards. +3. **MSE B [Index](../i/index_instrument.md)**: It comprises companies that have slightly relaxed standards compared to those in the MSE A [Index](../i/index_instrument.md). ### Securities diff --git a/en/pedia/m/morning_star.md b/en/pedia/m/morning_star.md index 14db3e6d..17b5818b 100644 --- a/en/pedia/m/morning_star.md +++ b/en/pedia/m/morning_star.md @@ -19,7 +19,7 @@ To accurately interpret the Morning Star pattern, traders should follow these st 1. **[Trend](../t/trend.md) Confirmation:** Prior to the appearance of the Morning Star, ensure that the [market](../m/market.md) is in a [downtrend](../d/downtrend.md). The Morning Star is only relevant when following a bearish [trend](../t/trend.md) as it indicates potential [reversal](../r/reversal.md) to bullishness. 2. **Identify the Pattern:** Look for the three consecutive candlesticks as described above. The second candle should preferably have a small body, and its color can be either bullish or bearish. 3. **[Volume Analysis](../v/volume_analysis.md):** Higher trading [volume](../v/volume.md) on the third candle strengthens the bullish [reversal](../r/reversal.md) signal. In the absence of [volume](../v/volume.md) data, the length and the gap of the third candle might be used as a [proxy](../p/proxy.md) for assessing the strength of the [reversal](../r/reversal.md). -4. **Additional Confirmation:** For more conservative traders, additional confirmation can be sought using other [technical indicators](../t/technical_indicator.md) like [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Averages (MA), or MACD (Moving Average Convergence [Divergence](../d/divergence.md)). +4. **Additional Confirmation:** For more conservative traders, additional confirmation can be sought using other [technical indicators](../t/technical_indicator.md) like [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Averages (MA), or MACD (Moving Average Convergence [Divergence](../d/divergence.md)). ## Application of the Morning Star Pattern in Trading @@ -35,7 +35,7 @@ Once the Morning Star pattern is identified, traders can plan their trades accor While the Morning Star is a reliable pattern, its effectiveness can be enhanced through the use of other technical tools: -- **RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)):** An RSI [value](../v/value.md) below 30 during the formation of the Morning Star indicates that the [market](../m/market.md) is in the [oversold](../o/oversold.md) region, thereby reinforcing the bullish [reversal](../r/reversal.md) indication. +- **RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)):** An RSI [value](../v/value.md) below 30 during the formation of the Morning Star indicates that the [market](../m/market.md) is in the [oversold](../o/oversold.md) region, thereby reinforcing the bullish [reversal](../r/reversal.md) indication. - **Moving Averages:** When the Morning Star pattern appears above long-term moving averages (like the 50-day or 200-day MA), the signal is considered stronger. - **MACD (Moving Average Convergence [Divergence](../d/divergence.md)):** A bullish crossover in MACD (where the MACD line crosses above the signal line) concurrent with the formation of the Morning Star can serve as a confirmation. - **[Volume Indicators](../v/volume_indicators.md):** High trading [volume](../v/volume.md) on the third candle signifies strong bullish sentiment and solidifies the validity of the [reversal](../r/reversal.md) pattern. diff --git a/en/pedia/m/mortgage.md b/en/pedia/m/mortgage.md index a3d9c0a6..1d37d387 100644 --- a/en/pedia/m/mortgage.md +++ b/en/pedia/m/mortgage.md @@ -10,7 +10,7 @@ A mortgage is a type of [loan](../l/loan.md) specifically used to purchase resid - Predictability of monthly payments makes budgeting easier for homeowners. 2. **Adjustable-Rate Mortgages (ARMs)** - - [Interest](../i/interest.md) rates are fixed for an initial period, then adjust periodically based on an [index](../i/index.md) which reflects the cost to the [lender](../l/lender.md) of borrowing on the [credit](../c/credit.md) markets. + - [Interest](../i/interest.md) rates are fixed for an initial period, then adjust periodically based on an [index](../i/index_instrument.md) which reflects the cost to the [lender](../l/lender.md) of borrowing on the [credit](../c/credit.md) markets. - Common initial fixed-rate periods are 3, 5, 7, or 10 years. - Generally, ARMs [offer](../o/offer.md) lower initial [interest](../i/interest.md) rates than fixed-rate mortgages. diff --git a/en/pedia/m/mortgage_rate.md b/en/pedia/m/mortgage_rate.md index 0e941de0..f69be7da 100644 --- a/en/pedia/m/mortgage_rate.md +++ b/en/pedia/m/mortgage_rate.md @@ -18,7 +18,7 @@ A [fixed-rate mortgage](../f/fixed-rate_mortgage.md) is characterized by an [int ### Adjustable-Rate Mortgage (ARM) -An adjustable-rate [mortgage](../m/mortgage.md) has an [interest rate](../i/interest_rate.md) that changes periodically based on [market](../m/market.md) conditions. ARMs typically [offer](../o/offer.md) a lower initial [interest rate](../i/interest_rate.md) compared to fixed-rate mortgages. The rate adjustment is based on a specific [index](../i/index.md) or [benchmark](../b/benchmark.md) plus a set [margin](../m/margin.md). +An adjustable-rate [mortgage](../m/mortgage.md) has an [interest rate](../i/interest_rate.md) that changes periodically based on [market](../m/market.md) conditions. ARMs typically [offer](../o/offer.md) a lower initial [interest rate](../i/interest_rate.md) compared to fixed-rate mortgages. The rate adjustment is based on a specific [index](../i/index_instrument.md) or [benchmark](../b/benchmark.md) plus a set [margin](../m/margin.md). #### Types of ARMs - **Hybrid ARMs**: These have a fixed period followed by an adjustable period (e.g., 5/1 ARM means a fixed rate for five years, then adjusting annually). diff --git a/en/pedia/m/moscow_exchange_(moex).md b/en/pedia/m/moscow_exchange_(moex).md index 511cf97c..2b98d52c 100644 --- a/en/pedia/m/moscow_exchange_(moex).md +++ b/en/pedia/m/moscow_exchange_(moex).md @@ -14,8 +14,8 @@ MOEX operates several markets, including: The equities [market](../m/market.md) on MOEX deals with the trading of [shares](../s/shares.md) of public companies. It provides various indices that serve as benchmarks for the Russian [stock market](../s/stock_market.md), including: -- **MOEX Russia [Index](../i/index.md)**: A [capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md) of the most [liquid](../l/liquid.md) Russian [stocks](../s/stock.md). -- **RTS [Index](../i/index.md)**: Measures the performance of the 50 most [liquid](../l/liquid.md) Russian [stocks](../s/stock.md) that [trade](../t/trade.md) on the [exchange](../e/exchange.md). +- **MOEX Russia [Index](../i/index_instrument.md)**: A [capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md) of the most [liquid](../l/liquid.md) Russian [stocks](../s/stock.md). +- **RTS [Index](../i/index_instrument.md)**: Measures the performance of the 50 most [liquid](../l/liquid.md) Russian [stocks](../s/stock.md) that [trade](../t/trade.md) on the [exchange](../e/exchange.md). ### Bond Market @@ -28,7 +28,7 @@ MOEX offers trading in both corporate and government bonds. The [bond market](.. MOEX's [derivatives](../d/derivatives.md) [market](../m/market.md) allows trading of [futures](../f/futures.md) and [options](../o/options.md) on various [underlying](../u/underlying.md) assets, including: -- **Stock indices**: [Futures](../f/futures.md) on MOEX Russia [Index](../i/index.md) and RTS [Index](../i/index.md). +- **Stock indices**: [Futures](../f/futures.md) on MOEX Russia [Index](../i/index_instrument.md) and RTS [Index](../i/index_instrument.md). - **Individual [stocks](../s/stock.md)**: [Futures](../f/futures.md) and [options](../o/options.md) on [shares](../s/shares.md) of Russian companies. - **FX rates**: [Futures](../f/futures.md) and [options](../o/options.md) on [currency](../c/currency.md) pairs. - **Commodities**: [Futures](../f/futures.md) on [crude oil](../c/crude_oil.md), gold, and other commodities. diff --git a/en/pedia/m/moving_average_(ma).md b/en/pedia/m/moving_average_(ma).md index 9f694f88..3e785666 100644 --- a/en/pedia/m/moving_average_(ma).md +++ b/en/pedia/m/moving_average_(ma).md @@ -102,7 +102,7 @@ Traders can use moving averages from [multiple](../m/multiple.md) time frames to ### Combining with Other Indicators -Moving averages are often used in conjunction with other [technical indicators](../t/technical_indicator.md) such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), or [Bollinger Bands](../b/bollinger_band.md) to validate signals and improve trading accuracy. +Moving averages are often used in conjunction with other [technical indicators](../t/technical_indicator.md) such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), or [Bollinger Bands](../b/bollinger_band.md) to validate signals and improve trading accuracy. ### Custom Moving Averages diff --git a/en/pedia/m/msci_all_country_world_index_(acwi).md b/en/pedia/m/msci_all_country_world_index_(acwi).md index 3fbf9d1d..bc6bfab1 100644 --- a/en/pedia/m/msci_all_country_world_index_(acwi).md +++ b/en/pedia/m/msci_all_country_world_index_(acwi).md @@ -1,10 +1,10 @@ # MSCI All Country World Index (ACWI) -The MSCI All Country World [Index](../i/index.md) (ACWI) is a [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md) designed to provide a broad measure of global [equity market](../e/equity_market.md) performance. The [index](../i/index.md) includes [stocks](../s/stock.md) from both developed and emerging markets. The MSCI ACWI is one of the most widely used benchmarks for global [equity](../e/equity.md) portfolios and offers a comprehensive view of the international [equity](../e/equity.md) markets by covering a broad spectrum of countries and [market](../m/market.md) capitalizations. +The MSCI All Country World [Index](../i/index_instrument.md) (ACWI) is a [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md) designed to provide a broad measure of global [equity market](../e/equity_market.md) performance. The [index](../i/index_instrument.md) includes [stocks](../s/stock.md) from both developed and emerging markets. The MSCI ACWI is one of the most widely used benchmarks for global [equity](../e/equity.md) portfolios and offers a comprehensive view of the international [equity](../e/equity.md) markets by covering a broad spectrum of countries and [market](../m/market.md) capitalizations. ## Index Composition -The MSCI ACWI is comprised of [multiple](../m/multiple.md) countries and sectors, representing a wide array of the global [equity](../e/equity.md) investment landscape. As of the most recent updates, the MSCI ACWI includes approximately 3,000 constituents, which cover around 85% of the global investable [equity](../e/equity.md) opportunity set. The [index](../i/index.md) is broken down as follows: +The MSCI ACWI is comprised of [multiple](../m/multiple.md) countries and sectors, representing a wide array of the global [equity](../e/equity.md) investment landscape. As of the most recent updates, the MSCI ACWI includes approximately 3,000 constituents, which cover around 85% of the global investable [equity](../e/equity.md) opportunity set. The [index](../i/index_instrument.md) is broken down as follows: 1. **Developed Markets**: This portion covers 23 developed [market](../m/market.md) countries including the United States, Japan, United Kingdom, Germany, and others. 2. **Emerging Markets**: This part includes 27 emerging [market](../m/market.md) countries such as China, India, Brazil, Russia, and others. @@ -13,10 +13,10 @@ The MSCI ACWI is comprised of [multiple](../m/multiple.md) countries and sectors The construction and maintenance of the MSCI ACWI follow a rigorous methodology. The key aspects include: -- **[Market Capitalization](../m/market_capitalization.md)**: Constituents are [weighted](../w/weighted.md) based on their [market capitalization](../m/market_capitalization.md), ensuring that larger companies have a more significant impact on the [index](../i/index.md)'s performance. +- **[Market Capitalization](../m/market_capitalization.md)**: Constituents are [weighted](../w/weighted.md) based on their [market capitalization](../m/market_capitalization.md), ensuring that larger companies have a more significant impact on the [index](../i/index_instrument.md)'s performance. - **[Float](../f/float.md) Adjustment**: [Market](../m/market.md) caps are adjusted based on the [float](../f/float.md), excluding closely held [shares](../s/shares.md) to better reflect the investment opportunities available to public investors. -- **[Quarterly Rebalancing](../q/quarterly_rebalancing.md)**: The [index](../i/index.md) is reviewed and rebalanced on a quarterly [basis](../b/basis.md) to ensure that it remains representative of the current [market](../m/market.md) conditions. -- **Review of Constituents**: The inclusion and exclusion of [stocks](../s/stock.md) in the [index](../i/index.md) are based on MSCI's Global Investable [Market](../m/market.md) Indexes Methodology, which analyzes criteria such as [market](../m/market.md) size, [liquidity](../l/liquidity.md), and inclusion in the IMI (Investable [Market Index](../m/market_index.md)). +- **[Quarterly Rebalancing](../q/quarterly_rebalancing.md)**: The [index](../i/index_instrument.md) is reviewed and rebalanced on a quarterly [basis](../b/basis.md) to ensure that it remains representative of the current [market](../m/market.md) conditions. +- **Review of Constituents**: The inclusion and exclusion of [stocks](../s/stock.md) in the [index](../i/index_instrument.md) are based on MSCI's Global Investable [Market](../m/market.md) Indexes Methodology, which analyzes criteria such as [market](../m/market.md) size, [liquidity](../l/liquidity.md), and inclusion in the IMI (Investable [Market Index](../m/market_index.md)). ## Sector Representation @@ -42,51 +42,51 @@ Investors and [fund](../f/fund.md) managers commonly use the MSCI ACWI as a [ben ### Performance Analysis -Financial analysts utilize the MSCI ACWI to perform [performance attribution](../p/performance_attribution.md) analysis. By breaking down the [index](../i/index.md)'s returns by region, sector, and other factors, analysts can better understand the drivers behind its performance and make more informed investment decisions. +Financial analysts utilize the MSCI ACWI to perform [performance attribution](../p/performance_attribution.md) analysis. By breaking down the [index](../i/index_instrument.md)'s returns by region, sector, and other factors, analysts can better understand the drivers behind its performance and make more informed investment decisions. ### Product Development -The MSCI ACWI serves as the [basis](../b/basis.md) for the creation of various financial products, such as mutual funds, [exchange](../e/exchange.md)-traded funds (ETFs), and other investment vehicles. These products aim to replicate the [index](../i/index.md)’s performance and provide broad exposure to [global equities](../g/global_equities.md). Examples include the [iShares](../i/ishares.md) MSCI ACWI ETF. +The MSCI ACWI serves as the [basis](../b/basis.md) for the creation of various financial products, such as mutual funds, [exchange](../e/exchange.md)-traded funds (ETFs), and other investment vehicles. These products aim to replicate the [index](../i/index_instrument.md)’s performance and provide broad exposure to [global equities](../g/global_equities.md). Examples include the [iShares](../i/ishares.md) MSCI ACWI ETF. ### Strategic Asset Allocation -For institutional investors, the MSCI ACWI offers a framework for strategic [asset allocation](../a/asset_allocation.md) across global [equity](../e/equity.md) markets. By understanding the [index](../i/index.md)’s composition and allocations, investors can create diversified portfolios that aim to optimize returns while managing [risk](../r/risk.md). +For institutional investors, the MSCI ACWI offers a framework for strategic [asset allocation](../a/asset_allocation.md) across global [equity](../e/equity.md) markets. By understanding the [index](../i/index_instrument.md)’s composition and allocations, investors can create diversified portfolios that aim to optimize returns while managing [risk](../r/risk.md). ## Advantages and Limitations ### Advantages 1. **Comprehensive Coverage**: Covering both developed and emerging markets, the MSCI ACWI provides broad exposure to the global [equity market](../e/equity_market.md). -2. **[Diversification](../d/diversification.md)**: The [index](../i/index.md) includes a diversified list of companies across various sectors and countries, which helps to mitigate portfolio [risk](../r/risk.md). +2. **[Diversification](../d/diversification.md)**: The [index](../i/index_instrument.md) includes a diversified list of companies across various sectors and countries, which helps to mitigate portfolio [risk](../r/risk.md). 3. **Standardization**: It offers a standardized [benchmark](../b/benchmark.md) that investors worldwide can use for performance comparison. ### Limitations -1. **[Market Capitalization](../m/market_capitalization.md) Weighting**: Larger companies have a disproportionate impact on the [index](../i/index.md)’s performance, which might skew returns in favor of mega-cap [stocks](../s/stock.md). +1. **[Market Capitalization](../m/market_capitalization.md) Weighting**: Larger companies have a disproportionate impact on the [index](../i/index_instrument.md)’s performance, which might skew returns in favor of mega-cap [stocks](../s/stock.md). 2. **Emerging [Market Exposure](../m/market_exposure.md)**: While the inclusion of emerging markets is a strength, it can also introduce additional [volatility](../v/volatility.md) and [risk](../r/risk.md) due to [market](../m/market.md) and geopolitical factors. -3. **[Currency](../c/currency.md) [Risk](../r/risk.md)**: Investors in the MSCI ACWI are exposed to [currency](../c/currency.md) [risk](../r/risk.md) since the [index](../i/index.md) includes [stocks](../s/stock.md) from [multiple](../m/multiple.md) countries with different currencies. +3. **[Currency](../c/currency.md) [Risk](../r/risk.md)**: Investors in the MSCI ACWI are exposed to [currency](../c/currency.md) [risk](../r/risk.md) since the [index](../i/index_instrument.md) includes [stocks](../s/stock.md) from [multiple](../m/multiple.md) countries with different currencies. ## Performance Metrics ### Historical Performance -Analyzing historical performance can provide insights into the behavior of the MSCI ACWI over various [market cycles](../m/market_cycles.md). The [index](../i/index.md) has shown periods of significant growth and downturns, reflecting global economic trends and [market](../m/market.md) conditions. +Analyzing historical performance can provide insights into the behavior of the MSCI ACWI over various [market cycles](../m/market_cycles.md). The [index](../i/index_instrument.md) has shown periods of significant growth and downturns, reflecting global economic trends and [market](../m/market.md) conditions. ### Risk Metrics -1. **[Volatility](../v/volatility.md)**: The [standard deviation](../s/standard_deviation.md) of returns is a common measure of the [index](../i/index.md)’s [volatility](../v/volatility.md). The MSCI ACWI tends to experience [variability](../v/variability.md) due to its exposure to different countries' [economic conditions](../e/economic_conditions.md). -2. **[Sharpe Ratio](../s/sharpe_ratio.md)**: This ratio helps investors understand the [return](../r/return.md) of the [index](../i/index.md) relative to its [risk](../r/risk.md). A higher [Sharpe ratio](../s/sharpe_ratio.md) indicates better [risk](../r/risk.md)-adjusted returns. -3. **[Beta](../b/beta.md)**: By comparing the [index](../i/index.md)’s [volatility](../v/volatility.md) to a specific [benchmark](../b/benchmark.md) like the MSCI World [Index](../i/index.md), investors can gauge its sensitivity to [market](../m/market.md) movements. +1. **[Volatility](../v/volatility.md)**: The [standard deviation](../s/standard_deviation.md) of returns is a common measure of the [index](../i/index_instrument.md)’s [volatility](../v/volatility.md). The MSCI ACWI tends to experience [variability](../v/variability.md) due to its exposure to different countries' [economic conditions](../e/economic_conditions.md). +2. **[Sharpe Ratio](../s/sharpe_ratio.md)**: This ratio helps investors understand the [return](../r/return.md) of the [index](../i/index_instrument.md) relative to its [risk](../r/risk.md). A higher [Sharpe ratio](../s/sharpe_ratio.md) indicates better [risk](../r/risk.md)-adjusted returns. +3. **[Beta](../b/beta.md)**: By comparing the [index](../i/index_instrument.md)’s [volatility](../v/volatility.md) to a specific [benchmark](../b/benchmark.md) like the MSCI World [Index](../i/index_instrument.md), investors can gauge its sensitivity to [market](../m/market.md) movements. ## Alternatives to MSCI ACWI ### MSCI World Index -The MSCI World [Index](../i/index.md) is another global [equity](../e/equity.md) [index](../i/index.md) but includes only developed markets. It excludes emerging markets, providing a different [risk](../r/risk.md)-[return](../r/return.md) profile compared to the MSCI ACWI. +The MSCI World [Index](../i/index_instrument.md) is another global [equity](../e/equity.md) [index](../i/index_instrument.md) but includes only developed markets. It excludes emerging markets, providing a different [risk](../r/risk.md)-[return](../r/return.md) profile compared to the MSCI ACWI. ### FTSE All-World Index -Similar to the MSCI ACWI, the FTSE All-World [Index](../i/index.md) includes both developed and emerging markets. However, it follows different methodology and country classification criteria, which might result in variations in performance and composition. +Similar to the MSCI ACWI, the FTSE All-World [Index](../i/index_instrument.md) includes both developed and emerging markets. However, it follows different methodology and country classification criteria, which might result in variations in performance and composition. ### S&P Global 1200 @@ -108,4 +108,4 @@ Investors looking to learn more about the MSCI ACWI or to track its performance ## Conclusion -The MSCI All Country World [Index](../i/index.md) (ACWI) is a cornerstone [benchmark](../b/benchmark.md) for investors seeking global [equity](../e/equity.md) exposure. Its comprehensive coverage of developed and emerging markets and diverse sector representation make it a valuable tool for portfolio benchmarking, performance analysis, and strategic [asset allocation](../a/asset_allocation.md). Despite its advantages, investors should also consider its limitations and assess their [risk tolerance](../r/risk_tolerance.md) when using the MSCI ACWI as a [benchmark](../b/benchmark.md) or [investment vehicle](../i/investment_vehicle.md). By understanding its structure, methodology, and [performance metrics](../p/performance_metrics.md), investors can better navigate the complexities of global [equity](../e/equity.md) markets. \ No newline at end of file +The MSCI All Country World [Index](../i/index_instrument.md) (ACWI) is a cornerstone [benchmark](../b/benchmark.md) for investors seeking global [equity](../e/equity.md) exposure. Its comprehensive coverage of developed and emerging markets and diverse sector representation make it a valuable tool for portfolio benchmarking, performance analysis, and strategic [asset allocation](../a/asset_allocation.md). Despite its advantages, investors should also consider its limitations and assess their [risk tolerance](../r/risk_tolerance.md) when using the MSCI ACWI as a [benchmark](../b/benchmark.md) or [investment vehicle](../i/investment_vehicle.md). By understanding its structure, methodology, and [performance metrics](../p/performance_metrics.md), investors can better navigate the complexities of global [equity](../e/equity.md) markets. \ No newline at end of file diff --git a/en/pedia/m/msci_inc_.md b/en/pedia/m/msci_inc_.md index da65214f..7925d70b 100644 --- a/en/pedia/m/msci_inc_.md +++ b/en/pedia/m/msci_inc_.md @@ -10,10 +10,10 @@ Founded in 1969, MSCI has grown into a global powerhouse within the financial [i MSCI is perhaps best known for its wide [range](../r/range.md) of indexes, which serve as benchmarks for various [asset](../a/asset.md) classes. These indexes are used by [asset](../a/asset.md) managers, advisors, and banks for portfolio allocation, performance measurement, and [risk management](../r/risk_management.md). Some of the most popular MSCI indexes include: -- **MSCI World [Index](../i/index.md):** A global [index](../i/index.md) that captures large and [mid-cap](../m/mid-cap.md) representation across 23 Developed Markets (DM) countries. -- **MSCI Emerging Markets [Index](../i/index.md):** An [index](../i/index.md) that measures the performance of [equity](../e/equity.md) markets in global emerging economies. +- **MSCI World [Index](../i/index_instrument.md):** A global [index](../i/index_instrument.md) that captures large and [mid-cap](../m/mid-cap.md) representation across 23 Developed Markets (DM) countries. +- **MSCI Emerging Markets [Index](../i/index_instrument.md):** An [index](../i/index_instrument.md) that measures the performance of [equity](../e/equity.md) markets in global emerging economies. - **MSCI [EAFE Index](../e/eafe_index.md):** Covers developed markets around the world, excluding the U.S. and Canada. -- **MSCI ACWI [Index](../i/index.md):** Represents the performance of both Developed and Emerging Markets. +- **MSCI ACWI [Index](../i/index_instrument.md):** Represents the performance of both Developed and Emerging Markets. ## ESG Research diff --git a/en/pedia/m/multi-asset_class.md b/en/pedia/m/multi-asset_class.md index c1b6ad88..5edb3e25 100644 --- a/en/pedia/m/multi-asset_class.md +++ b/en/pedia/m/multi-asset_class.md @@ -40,7 +40,7 @@ Tactical [asset allocation](../a/asset_allocation.md) allows for short-term adju This strategy involves continuously adjusting the [asset allocation](../a/asset_allocation.md) based on [market](../m/market.md) trends, economic changes, and other factors. It’s more flexible and allows for rapid response to changes in the investment landscape. ### Core-Satellite Approach -The core-satellite approach combines a core portfolio of passive investments (like [index](../i/index.md) funds) with satellite portfolios of active investments. This strategy aims to keep costs low while seeking higher returns through [active management](../a/active_management.md) in satellite investments. +The core-satellite approach combines a core portfolio of passive investments (like [index](../i/index_instrument.md) funds) with satellite portfolios of active investments. This strategy aims to keep costs low while seeking higher returns through [active management](../a/active_management.md) in satellite investments. ## Benefits of Multi-Asset Class Investing diff --git a/en/pedia/m/multicollinearity.md b/en/pedia/m/multicollinearity.md index 8d61c8df..a58ab61b 100644 --- a/en/pedia/m/multicollinearity.md +++ b/en/pedia/m/multicollinearity.md @@ -49,9 +49,9 @@ Several methods are used to detect multicollinearity in a regression model: - Tolerance is the reciprocal of VIF and provides an indication of which variables contribute to multicollinearity. - Low tolerance values (below 0.1) suggest high multicollinearity. -4. **Condition [Index](../i/index.md):** +4. **Condition [Index](../i/index_instrument.md):** - This method involves looking at the condition indices calculated from the eigenvalues of the scaled, centered matrix \(X'X\). - - A condition [index](../i/index.md) above 30 indicates strong multicollinearity. + - A condition [index](../i/index_instrument.md) above 30 indicates strong multicollinearity. ### Addressing Multicollinearity diff --git a/en/pedia/m/multicollinearity_in_trading.md b/en/pedia/m/multicollinearity_in_trading.md index 153a1eba..d0707707 100644 --- a/en/pedia/m/multicollinearity_in_trading.md +++ b/en/pedia/m/multicollinearity_in_trading.md @@ -30,7 +30,7 @@ Before attempting to solve multicollinearity, it is crucial to detect its presen 2. **[Variance Inflation Factor](../v/variance_inflation_factor.md) (VIF)**: VIF quantifies how much the variance of a regression coefficient is inflated due to multicollinearity. A VIF [value](../v/value.md) greater than 10 typically indicates significant multicollinearity. -3. **Condition [Index](../i/index.md)**: The condition [index](../i/index.md) measures the sensitivity of the regression coefficients to small changes in the data. A condition [index](../i/index.md) [value](../v/value.md) above 30 suggests potential multicollinearity. +3. **Condition [Index](../i/index_instrument.md)**: The condition [index](../i/index_instrument.md) measures the sensitivity of the regression coefficients to small changes in the data. A condition [index](../i/index_instrument.md) [value](../v/value.md) above 30 suggests potential multicollinearity. 4. **Eigenvalues**: Analyzing the eigenvalues of the [correlation](../c/correlation.md) matrix can help identify multicollinearity. Small eigenvalues (close to zero) indicate that the predictors are highly correlated. diff --git a/en/pedia/m/multiple_linear_regression_(mlr).md b/en/pedia/m/multiple_linear_regression_(mlr).md index 19f50eb3..a8b676ed 100644 --- a/en/pedia/m/multiple_linear_regression_(mlr).md +++ b/en/pedia/m/multiple_linear_regression_(mlr).md @@ -167,7 +167,7 @@ predictions = model.predict(X) data['Predicted_Close'] = predictions # Save the predictions to a new CSV file -data.to_csv('predicted_stock_prices.csv', [index](../i/index.md)=False) +data.to_csv('predicted_stock_prices.csv', [index](../i/index_instrument.md)=False) ``` ## Conclusion diff --git a/en/pedia/m/municipal_bond.md b/en/pedia/m/municipal_bond.md index 8fcf7742..e2477326 100644 --- a/en/pedia/m/municipal_bond.md +++ b/en/pedia/m/municipal_bond.md @@ -52,7 +52,7 @@ The [secondary market](../s/secondary_market.md) is where investors buy and sell Municipal [bond](../b/bond.md) funds pool funds from many investors to purchase a diversified portfolio of [municipal bonds](../m/municipal_bonds.md). They provide [diversification](../d/diversification.md) and professional management. ### Exchange-Traded Funds (ETFs) -Municipal [bond](../b/bond.md) ETFs are a type of [investment fund](../i/investment_fund.md) traded on stock exchanges, much like [stocks](../s/stock.md). They aim to track the performance of an [index](../i/index.md) composed of [municipal bonds](../m/municipal_bonds.md). +Municipal [bond](../b/bond.md) ETFs are a type of [investment fund](../i/investment_fund.md) traded on stock exchanges, much like [stocks](../s/stock.md). They aim to track the performance of an [index](../i/index_instrument.md) composed of [municipal bonds](../m/municipal_bonds.md). ### Electronic Trading Platforms Electronic trading platforms allow for the more accessible trading of [municipal bonds](../m/municipal_bonds.md). These platforms increase [transparency](../t/transparency.md) and provide real-time pricing. Examples include: diff --git a/en/pedia/m/muscat_securities_market_(msm).md b/en/pedia/m/muscat_securities_market_(msm).md index 659c833e..af556b2c 100644 --- a/en/pedia/m/muscat_securities_market_(msm).md +++ b/en/pedia/m/muscat_securities_market_(msm).md @@ -40,14 +40,14 @@ The Muscat Securities [Market](../m/market.md) operates under the regulatory ove ## Market Indices ### MSM 30 Index -The flagship [index](../i/index.md) of MSM, the MSM 30, tracks the performance of the top 30 companies [listed](../l/listed.md) on the [exchange](../e/exchange.md). This [index](../i/index.md) is a vital [indicator](../i/indicator.md) of [market](../m/market.md) health and [investor](../i/investor.md) sentiment, encompassing diverse sectors. +The flagship [index](../i/index_instrument.md) of MSM, the MSM 30, tracks the performance of the top 30 companies [listed](../l/listed.md) on the [exchange](../e/exchange.md). This [index](../i/index_instrument.md) is a vital [indicator](../i/indicator.md) of [market](../m/market.md) health and [investor](../i/investor.md) sentiment, encompassing diverse sectors. ### Sector Indices Sector-specific indices give a segmented view of [market](../m/market.md) performance, aiding investors in analyzing sectoral trends and making informed decisions. Prominent [sector indices](../s/sector_indices.md) include: -- **[Financial Sector](../f/financial_sector.md) [Index](../i/index.md)** -- **Industrial Sector [Index](../i/index.md)** -- **Services Sector [Index](../i/index.md)** +- **[Financial Sector](../f/financial_sector.md) [Index](../i/index_instrument.md)** +- **Industrial Sector [Index](../i/index_instrument.md)** +- **Services Sector [Index](../i/index_instrument.md)** ## Technological Infrastructure @@ -71,7 +71,7 @@ Mutual funds on MSM cater to different investment strategies, [risk](../r/risk.m ## Market Trends and Statistics ### Performance Metrics -Over the recent years, MSM has shown steady growth, reflecting the increasing [investor](../i/investor.md) confidence in Oman's economic prospects. [Performance metrics](../p/performance_metrics.md) such as trading [volume](../v/volume.md), [market capitalization](../m/market_capitalization.md), and [index](../i/index.md) movements are regularly published to keep investors informed. +Over the recent years, MSM has shown steady growth, reflecting the increasing [investor](../i/investor.md) confidence in Oman's economic prospects. [Performance metrics](../p/performance_metrics.md) such as trading [volume](../v/volume.md), [market capitalization](../m/market_capitalization.md), and [index](../i/index_instrument.md) movements are regularly published to keep investors informed. ### Key Data - **Trading [Volume](../v/volume.md):** Reflects the total number of [shares](../s/shares.md) exchanged over a specified period. diff --git a/en/pedia/m/mutual_fund.md b/en/pedia/m/mutual_fund.md index 24564653..75c3c463 100644 --- a/en/pedia/m/mutual_fund.md +++ b/en/pedia/m/mutual_fund.md @@ -12,7 +12,7 @@ Mutual funds cater to a wide array of [investor](../i/investor.md) objectives: - **Growth Funds:** Aim for [capital](../c/capital.md) appreciation by focusing on [stocks](../s/stock.md) with potential for growth. - **Balanced Funds:** Combine both [income](../i/income.md) and growth strategies to provide a balanced approach. - **Sector Funds:** Focus on specific sectors, such as technology or healthcare. -- **[Index](../i/index.md) Funds:** Track specific indices like the S&P 500, providing broad [market exposure](../m/market_exposure.md). +- **[Index](../i/index_instrument.md) Funds:** Track specific indices like the S&P 500, providing broad [market exposure](../m/market_exposure.md). ### Types of Mutual Funds @@ -91,7 +91,7 @@ Mutual [fund](../f/fund.md) performance can be evaluated using various [risk met ## Example of Major Mutual Fund Companies -1. **Vanguard Group:** Known for its [index](../i/index.md) funds and low-cost investment [options](../o/options.md). (https://www.vanguard.com) +1. **Vanguard Group:** Known for its [index](../i/index_instrument.md) funds and low-cost investment [options](../o/options.md). (https://www.vanguard.com) 2. **[Fidelity Investments](../f/fidelity_investments.md):** Offers a wide [range](../r/range.md) of funds and investment services. (https://www.fidelity.com) 3. **T. Rowe Price:** Provides [active management](../a/active_management.md) solutions tailored to specific investment objectives. (https://www.troweprice.com) 4. **BlackRock:** A leading global [asset management](../a/asset_management.md) [firm](../f/firm.md). (https://www.blackrock.com) diff --git a/en/pedia/n/nairobi_securities_exchange_(nse).md b/en/pedia/n/nairobi_securities_exchange_(nse).md index d7d9e8e0..8b3547bb 100644 --- a/en/pedia/n/nairobi_securities_exchange_(nse).md +++ b/en/pedia/n/nairobi_securities_exchange_(nse).md @@ -16,7 +16,7 @@ The NSE supports [multiple](../m/multiple.md) trading platforms, including: - **Automated Trading System (ATS)**: Introduced in 2006, it replaced the former [open outcry](../o/open_outcry.md) system. ATS facilitates real-time trading and enhances [transparency](../t/transparency.md) and [efficiency](../e/efficiency.md). - **Bonds Automated Trading System (BATS)**: Launched in 2009, BATS allows trading of government and corporate bonds electronically. -- **[Derivatives](../d/derivatives.md) [Market](../m/market.md) (NEXT)**: Started in 2019, NEXT offers [futures contracts](../f/futures_contracts.md) on selected NSE 25 [Index](../i/index.md) constituents and single stock [futures](../f/futures.md), allowing investors to [hedge](../h/hedge.md) and [leverage](../l/leverage.md). +- **[Derivatives](../d/derivatives.md) [Market](../m/market.md) (NEXT)**: Started in 2019, NEXT offers [futures contracts](../f/futures_contracts.md) on selected NSE 25 [Index](../i/index_instrument.md) constituents and single stock [futures](../f/futures.md), allowing investors to [hedge](../h/hedge.md) and [leverage](../l/leverage.md). ### Market Segments @@ -33,9 +33,9 @@ To list on the NSE, companies must adhere to specific requirements that vary acr The NSE is [home](../h/home.md) to some of East Africa's most significant companies, like Safaricom, [Equity](../e/equity.md) Group [Holdings](../h/holdings.md), and KCB Group. It tracks performance through various indices, including: -- **NSE 20 Share [Index](../i/index.md)**: Measures the top 20 best performing companies by [market capitalization](../m/market_capitalization.md). -- **NSE All Share [Index](../i/index.md) (NASI)**: Inclusive of all [listed](../l/listed.md) companies, it offers a comprehensive outlook of the [market](../m/market.md). -- **NSE 25 Share [Index](../i/index.md)**: Consists of 25 top [listed](../l/listed.md) companies, providing a more expanded snapshot than the NSE 20. +- **NSE 20 Share [Index](../i/index_instrument.md)**: Measures the top 20 best performing companies by [market capitalization](../m/market_capitalization.md). +- **NSE All Share [Index](../i/index_instrument.md) (NASI)**: Inclusive of all [listed](../l/listed.md) companies, it offers a comprehensive outlook of the [market](../m/market.md). +- **NSE 25 Share [Index](../i/index_instrument.md)**: Consists of 25 top [listed](../l/listed.md) companies, providing a more expanded snapshot than the NSE 20. ## Investment Opportunities and Products diff --git a/en/pedia/n/naked_put_writing.md b/en/pedia/n/naked_put_writing.md index fe5c2ea5..3439860a 100644 --- a/en/pedia/n/naked_put_writing.md +++ b/en/pedia/n/naked_put_writing.md @@ -4,7 +4,7 @@ [Naked put](../n/naked_put.md) writing is a sophisticated [options](../o/options.md) [trading strategy](../t/trading_strategy.md) used by investors who are bullish on a [security](../s/security.md) and expect its price to rise or remain stable. This strategy involves selling [put options](../p/put_options.md) without owning the [underlying asset](../u/underlying_asset.md) or without having sufficient cash to cover the purchase of the [underlying](../u/underlying.md) should the option be exercised. This approach is considered highly risky because the [writer](../w/writer.md) (seller) of the [put option](../p/put.md) is exposed to significant potential losses if the [underlying security](../u/underlying_security.md)'s price falls substantially. ## Explanation of Naked Put Writing -The mechanics of [naked put](../n/naked_put.md) writing are straightforward: the [trader](../t/trader.md) writes (sells) [put options](../p/put_options.md) on a stock, [index](../i/index.md), or other [underlying security](../u/underlying_security.md) they do not own. In [return](../r/return.md), the [trader](../t/trader.md) collects a [premium](../p/premium.md), which is the price paid by the put buyer for the option. +The mechanics of [naked put](../n/naked_put.md) writing are straightforward: the [trader](../t/trader.md) writes (sells) [put options](../p/put_options.md) on a stock, [index](../i/index_instrument.md), or other [underlying security](../u/underlying_security.md) they do not own. In [return](../r/return.md), the [trader](../t/trader.md) collects a [premium](../p/premium.md), which is the price paid by the put buyer for the option. ### Key Terminology - **[Put Option](../p/put.md)**: A financial contract that gives the holder the right, but not the obligation, to sell a specified quantity of the [underlying asset](../u/underlying_asset.md) at a predetermined price ([strike price](../s/strike_price.md)) within a set period. diff --git a/en/pedia/n/namibia_stock_exchange_(nsx).md b/en/pedia/n/namibia_stock_exchange_(nsx).md index eb64e54e..435a2774 100644 --- a/en/pedia/n/namibia_stock_exchange_(nsx).md +++ b/en/pedia/n/namibia_stock_exchange_(nsx).md @@ -66,7 +66,7 @@ As of the latest data, the NSX has been steadily growing with an increasing numb - **[Market Capitalization](../m/market_capitalization.md)**: The total [market capitalization](../m/market_capitalization.md) of the NSX has been on an upward [trend](../t/trend.md), driven by both domestic and cross-[listed](../l/listed.md) companies. - **[Liquidity](../l/liquidity.md)**: Trading volumes have shown significant improvement, reflecting rising [investor](../i/investor.md) [interest](../i/interest.md) and confidence. -- **Indices**: The NSX Overall [Index](../i/index.md) is the [benchmark](../b/benchmark.md) [index](../i/index.md), which tracks the performance of top companies [listed](../l/listed.md) on the [exchange](../e/exchange.md). +- **Indices**: The NSX Overall [Index](../i/index_instrument.md) is the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), which tracks the performance of top companies [listed](../l/listed.md) on the [exchange](../e/exchange.md). ### International Participation diff --git a/en/pedia/n/nasdaq_100_index.md b/en/pedia/n/nasdaq_100_index.md index d9549829..d427f981 100644 --- a/en/pedia/n/nasdaq_100_index.md +++ b/en/pedia/n/nasdaq_100_index.md @@ -1,51 +1,51 @@ # Nasdaq 100 Index -The [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md) is one of the most well-known and closely-followed indices in the global [financial markets](../f/financial_market.md). It serves as a [benchmark](../b/benchmark.md) for the performance of major non-financial companies [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) [Stock Market](../s/stock_market.md). This comprehensive guide delves into various aspects of the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md), including its history, components, methodologies, and significant roles it plays in the financial landscape. +The [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md) is one of the most well-known and closely-followed indices in the global [financial markets](../f/financial_market.md). It serves as a [benchmark](../b/benchmark.md) for the performance of major non-financial companies [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) [Stock Market](../s/stock_market.md). This comprehensive guide delves into various aspects of the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md), including its history, components, methodologies, and significant roles it plays in the financial landscape. ## What is the Nasdaq 100 Index? -The [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md) comprises the 100 largest non-financial companies [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) [Stock Market](../s/stock_market.md) based on [market capitalization](../m/market_capitalization.md). It is distinguished by its inclusion of companies across various sectors, with a prominent emphasis on technology-related firms. This mix offers a unique representation of the broader state of the tech-driven [market economy](../m/market_economy.md). +The [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md) comprises the 100 largest non-financial companies [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) [Stock Market](../s/stock_market.md) based on [market capitalization](../m/market_capitalization.md). It is distinguished by its inclusion of companies across various sectors, with a prominent emphasis on technology-related firms. This mix offers a unique representation of the broader state of the tech-driven [market economy](../m/market_economy.md). ## History of the Nasdaq 100 Index ### Origins -The [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md) was launched on January 31, 1985, as a way to provide a clear and efficient [benchmark](../b/benchmark.md) for the vast array of businesses [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) [Stock Market](../s/stock_market.md), excluding financial institutions. Initially, the [index](../i/index.md) was divided into two separate indices: the [Nasdaq](../n/nasdaq.md) Financial-100 and the [Nasdaq](../n/nasdaq.md) Industrial-100. Over time, the [Nasdaq](../n/nasdaq.md) 100 emerged as the more dominant and widely recognized of the two. +The [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md) was launched on January 31, 1985, as a way to provide a clear and efficient [benchmark](../b/benchmark.md) for the vast array of businesses [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) [Stock Market](../s/stock_market.md), excluding financial institutions. Initially, the [index](../i/index_instrument.md) was divided into two separate indices: the [Nasdaq](../n/nasdaq.md) Financial-100 and the [Nasdaq](../n/nasdaq.md) Industrial-100. Over time, the [Nasdaq](../n/nasdaq.md) 100 emerged as the more dominant and widely recognized of the two. ### Technological Boom -During the late 1990s, the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md) gained significant [visibility](../v/visibility.md) due to the dot-com bubble. Many high-growth tech companies saw their stock prices soar, driving the [index](../i/index.md) to unprecedented heights. Despite the subsequent burst of the bubble, the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md) retained its status as a critical barometer for the [technology sector](../t/technology_sector.md). +During the late 1990s, the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md) gained significant [visibility](../v/visibility.md) due to the dot-com bubble. Many high-growth tech companies saw their stock prices soar, driving the [index](../i/index_instrument.md) to unprecedented heights. Despite the subsequent burst of the bubble, the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md) retained its status as a critical barometer for the [technology sector](../t/technology_sector.md). ### Recent Developments -In recent years, the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md) has continued to thrive, bolstered by the consistent growth of technology giants such as Apple, Amazon, and Google (now Alphabet). Even amid global economic uncertainties, the [index](../i/index.md) has demonstrated resilience and an ability to rebound strongly. +In recent years, the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md) has continued to thrive, bolstered by the consistent growth of technology giants such as Apple, Amazon, and Google (now Alphabet). Even amid global economic uncertainties, the [index](../i/index_instrument.md) has demonstrated resilience and an ability to rebound strongly. ## Methodology ### Selection Criteria -To be considered for inclusion in the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md), a company must meet several criteria: +To be considered for inclusion in the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md), a company must meet several criteria: 1. **[Listing Requirements](../l/listing_requirements.md)**: The company must be [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) [Stock Market](../s/stock_market.md). 2. **[Market Capitalization](../m/market_capitalization.md)**: The company must rank within the top 100 non-financial companies by [market capitalization](../m/market_capitalization.md). 3. **[Liquidity](../l/liquidity.md) Requirements**: The company must meet specific [liquidity](../l/liquidity.md) guidelines, including minimum average daily trading [volume](../v/volume.md). ### Rebalancing and Reconstitution -The [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md) undergoes a comprehensive [rebalancing](../r/rebalancing.md) and reconstitution each year in December. This process ensures that the [index](../i/index.md) accurately reflects the changing landscape of the [market](../m/market.md). Quarterly reviews are also conducted to make any necessary adjustments. +The [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md) undergoes a comprehensive [rebalancing](../r/rebalancing.md) and reconstitution each year in December. This process ensures that the [index](../i/index_instrument.md) accurately reflects the changing landscape of the [market](../m/market.md). Quarterly reviews are also conducted to make any necessary adjustments. ## Components of the Nasdaq 100 Index -The [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md) includes diverse sectors such as technology, consumer services, healthcare, and industrials. However, it is heavily [weighted](../w/weighted.md) towards the [technology sector](../t/technology_sector.md), with companies like Apple, Microsoft, Amazon, and NVIDIA typically holding significant weightings. +The [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md) includes diverse sectors such as technology, consumer services, healthcare, and industrials. However, it is heavily [weighted](../w/weighted.md) towards the [technology sector](../t/technology_sector.md), with companies like Apple, Microsoft, Amazon, and NVIDIA typically holding significant weightings. ## Major Companies in the Nasdaq 100 ### Apple Inc. -Apple Inc. ([Nasdaq](../n/nasdaq.md): AAPL) is one of the largest and most influential companies in the world. Known for its innovative products such as the iPhone, iPad, and MacBook, Apple plays a central role in the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md). [Apple Company Website](https://www.apple.com/) +Apple Inc. ([Nasdaq](../n/nasdaq.md): AAPL) is one of the largest and most influential companies in the world. Known for its innovative products such as the iPhone, iPad, and MacBook, Apple plays a central role in the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md). [Apple Company Website](https://www.apple.com/) ### Microsoft Corp. -Microsoft Corp. ([Nasdaq](../n/nasdaq.md): MSFT) is a global leader in software, services, and solutions. Its wide [range](../r/range.md) of products, including the Windows operating system, Microsoft Office, and Azure cloud services, contribute significantly to the [index](../i/index.md)'s performance. [Microsoft Company Website](https://www.microsoft.com/) +Microsoft Corp. ([Nasdaq](../n/nasdaq.md): MSFT) is a global leader in software, services, and solutions. Its wide [range](../r/range.md) of products, including the Windows operating system, Microsoft Office, and Azure cloud services, contribute significantly to the [index](../i/index_instrument.md)'s performance. [Microsoft Company Website](https://www.microsoft.com/) ### Amazon.com Inc. @@ -59,29 +59,29 @@ Alphabet Inc. ([Nasdaq](../n/nasdaq.md): GOOGL) is the [parent company](../p/par ### Financial Benchmark -The [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md) serves as a key [benchmark](../b/benchmark.md) for investors globally. Mutual funds, ETFs, and other investment vehicles often aim to replicate or [outperform](../o/outperform.md) the [index](../i/index.md), making it critically important for portfolio managers. +The [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md) serves as a key [benchmark](../b/benchmark.md) for investors globally. Mutual funds, ETFs, and other investment vehicles often aim to replicate or [outperform](../o/outperform.md) the [index](../i/index_instrument.md), making it critically important for portfolio managers. ### Economic Indicator -Due to its focus on [industry](../i/industry.md)-leading companies, particularly in the [technology sector](../t/technology_sector.md), the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md) is often seen as a microcosm of economic trends and technological advancements. It provides valuable insights into [market dynamics](../m/market_dynamics.md) and [investor](../i/investor.md) sentiment. +Due to its focus on [industry](../i/industry.md)-leading companies, particularly in the [technology sector](../t/technology_sector.md), the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md) is often seen as a microcosm of economic trends and technological advancements. It provides valuable insights into [market dynamics](../m/market_dynamics.md) and [investor](../i/investor.md) sentiment. ### Derivatives and Investment Products -The [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md) is the [underlying](../u/underlying.md) [benchmark](../b/benchmark.md) for numerous financial products including [options](../o/options.md), [futures](../f/futures.md), and [exchange](../e/exchange.md)-traded funds (ETFs) such as the Invesco QQQ [Trust](../t/trust.md) ([Nasdaq](../n/nasdaq.md): QQQ). These products allow traders and investors to [gain](../g/gain.md) exposure to the [index](../i/index.md)'s performance. +The [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md) is the [underlying](../u/underlying.md) [benchmark](../b/benchmark.md) for numerous financial products including [options](../o/options.md), [futures](../f/futures.md), and [exchange](../e/exchange.md)-traded funds (ETFs) such as the Invesco QQQ [Trust](../t/trust.md) ([Nasdaq](../n/nasdaq.md): QQQ). These products allow traders and investors to [gain](../g/gain.md) exposure to the [index](../i/index_instrument.md)'s performance. ## Calculation and Weighting ### Market Capitalization-Weighted -The [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md) is calculated using a [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) methodology. This means that each company's weight in the [index](../i/index.md) is proportional to its [market value](../m/market_value.md) relative to the total [market value](../m/market_value.md) of all the [index](../i/index.md) components. Larger companies have a more significant impact on the [index](../i/index.md)'s performance. +The [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md) is calculated using a [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) methodology. This means that each company's weight in the [index](../i/index_instrument.md) is proportional to its [market value](../m/market_value.md) relative to the total [market value](../m/market_value.md) of all the [index](../i/index_instrument.md) components. Larger companies have a more significant impact on the [index](../i/index_instrument.md)'s performance. ### Capping Rules -To prevent any single company from having an outsized influence on the [index](../i/index.md), the [Nasdaq](../n/nasdaq.md) 100 employs a capping rule. No single company's weight can exceed 24%, and the aggregate weight of all companies with weights greater than 4.5% cannot exceed 48%. +To prevent any single company from having an outsized influence on the [index](../i/index_instrument.md), the [Nasdaq](../n/nasdaq.md) 100 employs a capping rule. No single company's weight can exceed 24%, and the aggregate weight of all companies with weights greater than 4.5% cannot exceed 48%. ## Tech-Heavy Nature -One of the defining characteristics of the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md) is its tech-heavy composition. Companies in the [technology sector](../t/technology_sector.md) typically account for a substantial portion of the [index](../i/index.md)’s total [market capitalization](../m/market_capitalization.md). This tech-heavy nature can introduce both opportunities and risks for investors: +One of the defining characteristics of the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md) is its tech-heavy composition. Companies in the [technology sector](../t/technology_sector.md) typically account for a substantial portion of the [index](../i/index_instrument.md)’s total [market capitalization](../m/market_capitalization.md). This tech-heavy nature can introduce both opportunities and risks for investors: ### Opportunities @@ -90,7 +90,7 @@ One of the defining characteristics of the [Nasdaq](../n/nasdaq.md) 100 [Index]( ### Risks -1. **[Volatility](../v/volatility.md)**: The tech sector is known for its [volatility](../v/volatility.md), which can impact the [index](../i/index.md)'s performance, particularly during periods of [market](../m/market.md) [uncertainty](../u/uncertainty_in_trading.md) or economic downturns. +1. **[Volatility](../v/volatility.md)**: The tech sector is known for its [volatility](../v/volatility.md), which can impact the [index](../i/index_instrument.md)'s performance, particularly during periods of [market](../m/market.md) [uncertainty](../u/uncertainty_in_trading.md) or economic downturns. 2. **Regulatory Risks**: Tech companies face significant regulatory scrutiny, which can introduce legal and operational risks. ## Comparison with Other Indices @@ -101,7 +101,7 @@ While both indices track companies [listed](../l/listed.md) on the [Nasdaq](../n ### S&P 500 Index -The S&P 500 [Index](../i/index.md) is another key [benchmark](../b/benchmark.md) that includes 500 of the largest publicly traded companies in the United States across all sectors, including financials. While it provides a broader [market](../m/market.md) view, the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md) is more concentrated with a focus on technology and high-growth sectors. +The S&P 500 [Index](../i/index_instrument.md) is another key [benchmark](../b/benchmark.md) that includes 500 of the largest publicly traded companies in the United States across all sectors, including financials. While it provides a broader [market](../m/market.md) view, the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md) is more concentrated with a focus on technology and high-growth sectors. ### Dow Jones Industrial Average @@ -111,19 +111,19 @@ The Dow Jones Industrial Average (DJIA) consists of 30 large companies represent ### ETFs and Mutual Funds -One of the most accessible ways to invest in the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md) is through [exchange](../e/exchange.md)-traded funds (ETFs) such as the Invesco QQQ [Trust](../t/trust.md) ([Nasdaq](../n/nasdaq.md): QQQ). Mutual funds that track the [Nasdaq](../n/nasdaq.md) 100 are also available, providing diversified exposure to the [index](../i/index.md)'s components. +One of the most accessible ways to invest in the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md) is through [exchange](../e/exchange.md)-traded funds (ETFs) such as the Invesco QQQ [Trust](../t/trust.md) ([Nasdaq](../n/nasdaq.md): QQQ). Mutual funds that track the [Nasdaq](../n/nasdaq.md) 100 are also available, providing diversified exposure to the [index](../i/index_instrument.md)'s components. ### Options and Futures -For more sophisticated investors, [options](../o/options.md) and [futures contracts](../f/futures_contracts.md) based on the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md) [offer](../o/offer.md) opportunities for hedging, [speculation](../s/speculation.md), and leveraged exposure. These [derivatives](../d/derivatives.md) require a closer understanding of [market dynamics](../m/market_dynamics.md) and potential risks. +For more sophisticated investors, [options](../o/options.md) and [futures contracts](../f/futures_contracts.md) based on the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md) [offer](../o/offer.md) opportunities for hedging, [speculation](../s/speculation.md), and leveraged exposure. These [derivatives](../d/derivatives.md) require a closer understanding of [market dynamics](../m/market_dynamics.md) and potential risks. ### Direct Stock Investment -Investors can also choose to buy [shares](../s/shares.md) of individual companies within the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md). This approach allows for tailored exposure to specific companies but comes with higher [risk](../r/risk.md) compared to diversified investments through indices or ETFs. +Investors can also choose to buy [shares](../s/shares.md) of individual companies within the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md). This approach allows for tailored exposure to specific companies but comes with higher [risk](../r/risk.md) compared to diversified investments through indices or ETFs. ## Role in Algorithmic Trading -The [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md) plays a pivotal role in [algorithmic trading strategies](../a/algorithmic_trading_strategies.md). Given the high [liquidity](../l/liquidity.md) and [volatility](../v/volatility.md) of its components, the [index](../i/index.md) is suitable for various algorithmic approaches: +The [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md) plays a pivotal role in [algorithmic trading strategies](../a/algorithmic_trading_strategies.md). Given the high [liquidity](../l/liquidity.md) and [volatility](../v/volatility.md) of its components, the [index](../i/index_instrument.md) is suitable for various algorithmic approaches: ### Momentum Trading @@ -135,10 +135,10 @@ Statistical [arbitrage](../a/arbitrage.md) strategies can exploit price discrepa ### Market Making -[Market](../m/market.md)-making algorithms provide [liquidity](../l/liquidity.md) to the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md) components by continuously quoting buy and sell prices, earning profits from the [bid-ask spread](../b/bid-ask_spread.md). +[Market](../m/market.md)-making algorithms provide [liquidity](../l/liquidity.md) to the [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md) components by continuously quoting buy and sell prices, earning profits from the [bid-ask spread](../b/bid-ask_spread.md). ## Conclusion -The [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index.md) stands as a crucial [indicator](../i/indicator.md) and investment [benchmark](../b/benchmark.md) within the [financial markets](../f/financial_market.md). Its emphasis on leading non-financial companies, particularly in the [technology sector](../t/technology_sector.md), offers unique opportunities and challenges for investors. Whether through [direct investment](../d/direct_investment.md) or the use of [algorithmic trading strategies](../a/algorithmic_trading_strategies.md), the [Nasdaq](../n/nasdaq.md) 100 continues to play a substantial role in shaping the financial landscape. +The [Nasdaq](../n/nasdaq.md) 100 [Index](../i/index_instrument.md) stands as a crucial [indicator](../i/indicator.md) and investment [benchmark](../b/benchmark.md) within the [financial markets](../f/financial_market.md). Its emphasis on leading non-financial companies, particularly in the [technology sector](../t/technology_sector.md), offers unique opportunities and challenges for investors. Whether through [direct investment](../d/direct_investment.md) or the use of [algorithmic trading strategies](../a/algorithmic_trading_strategies.md), the [Nasdaq](../n/nasdaq.md) 100 continues to play a substantial role in shaping the financial landscape. For more information, you can visit the official [Nasdaq website](https://www.nasdaq.com/). \ No newline at end of file diff --git a/en/pedia/n/nasdaq_composite_index.md b/en/pedia/n/nasdaq_composite_index.md index 799b1e0d..ad367698 100644 --- a/en/pedia/n/nasdaq_composite_index.md +++ b/en/pedia/n/nasdaq_composite_index.md @@ -1,14 +1,14 @@ # Nasdaq Composite Index -The [Nasdaq](../n/nasdaq.md) Composite [Index](../i/index.md) is one of the most widely followed [stock market](../s/stock_market.md) indices in the United States and globally. It tracks the performance of over 3,000 companies that are [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) [Stock Market](../s/stock_market.md), making it a critical barometer for the performance of technology and [growth stocks](../g/growth_stocks.md). This [index](../i/index.md) includes a broad [range](../r/range.md) of sectors but is heavily [weighted](../w/weighted.md) toward technology and internet-based companies. +The [Nasdaq](../n/nasdaq.md) Composite [Index](../i/index_instrument.md) is one of the most widely followed [stock market](../s/stock_market.md) indices in the United States and globally. It tracks the performance of over 3,000 companies that are [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) [Stock Market](../s/stock_market.md), making it a critical barometer for the performance of technology and [growth stocks](../g/growth_stocks.md). This [index](../i/index_instrument.md) includes a broad [range](../r/range.md) of sectors but is heavily [weighted](../w/weighted.md) toward technology and internet-based companies. ## Overview -Officially launched on February 8, 1971, the [Nasdaq](../n/nasdaq.md) Composite [Index](../i/index.md) was created to measure the performance of all [stocks](../s/stock.md) [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) stock [exchange](../e/exchange.md). Unlike the Dow Jones Industrial Average (DJIA) or the S&P 500, which includes only select companies, the [Nasdaq](../n/nasdaq.md) Composite encompasses nearly every stock on the [Nasdaq](../n/nasdaq.md) [exchange](../e/exchange.md), thereby [offering](../o/offering.md) a more comprehensive picture of the overall [market](../m/market.md). +Officially launched on February 8, 1971, the [Nasdaq](../n/nasdaq.md) Composite [Index](../i/index_instrument.md) was created to measure the performance of all [stocks](../s/stock.md) [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) stock [exchange](../e/exchange.md). Unlike the Dow Jones Industrial Average (DJIA) or the S&P 500, which includes only select companies, the [Nasdaq](../n/nasdaq.md) Composite encompasses nearly every stock on the [Nasdaq](../n/nasdaq.md) [exchange](../e/exchange.md), thereby [offering](../o/offering.md) a more comprehensive picture of the overall [market](../m/market.md). ## Composition -The [Nasdaq](../n/nasdaq.md) Composite [Index](../i/index.md) includes various types of securities: +The [Nasdaq](../n/nasdaq.md) Composite [Index](../i/index_instrument.md) includes various types of securities: 1. **Ordinary [Shares](../s/shares.md)**: These are the common types of [stocks](../s/stock.md) that represent ownership in a company. 2. **American Depositary [Receipts](../r/receipt.md) (ADRs)**: [Stocks](../s/stock.md) of non-U.S. companies that are traded on U.S. exchanges. 3. **[Real Estate](../r/real_estate.md) Investment Trusts (REITs)**: Companies that own, operate, or [finance](../f/finance.md) [income](../i/income.md)-producing [real estate](../r/real_estate.md). @@ -26,14 +26,14 @@ While the [Nasdaq](../n/nasdaq.md) Composite includes companies from a variety o ## Market Capitalization and Weighting -The [Nasdaq](../n/nasdaq.md) Composite is a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md). This means the [value](../v/value.md) of the [index](../i/index.md) is calculated by adding up the [market](../m/market.md) values of the individual companies and dividing by a divisor, which is adjusted for stock splits, dividends, and other corporate actions. Larger companies with higher [market](../m/market.md) caps have a more significant impact on the [index](../i/index.md)'s performance. +The [Nasdaq](../n/nasdaq.md) Composite is a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md). This means the [value](../v/value.md) of the [index](../i/index_instrument.md) is calculated by adding up the [market](../m/market.md) values of the individual companies and dividing by a divisor, which is adjusted for stock splits, dividends, and other corporate actions. Larger companies with higher [market](../m/market.md) caps have a more significant impact on the [index](../i/index_instrument.md)'s performance. ## Calculation -The [index](../i/index.md) level for the [Nasdaq](../n/nasdaq.md) Composite is calculated using a [capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) methodology: +The [index](../i/index_instrument.md) level for the [Nasdaq](../n/nasdaq.md) Composite is calculated using a [capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) methodology: \[ \text{Index Level} = \frac{\sum (\text{[Market](../m/market.md) Cap of Company} \times \text{Stock Price})}{\text{Divisor}} \] -The divisor is subject to periodic adjustments based on corporate actions to maintain the [index](../i/index.md)'s continuity. +The divisor is subject to periodic adjustments based on corporate actions to maintain the [index](../i/index_instrument.md)'s continuity. ## Performance Metrics @@ -47,23 +47,23 @@ Given its heavy tech weighting, the [Nasdaq](../n/nasdaq.md) Composite tends to The influence of the [Nasdaq](../n/nasdaq.md) Composite extends beyond the U.S. due to the [globalization](../g/globalization.md) of [financial markets](../f/financial_market.md): - **Investment Decisions**: Institutional and retail investors worldwide look at the [Nasdaq](../n/nasdaq.md) Composite for cues on [market](../m/market.md) direction, especially in the tech sector. -- **Benchmarking**: Many mutual funds and ETFs use the [Nasdaq](../n/nasdaq.md) Composite as a [benchmark](../b/benchmark.md), allowing investors to compare their portfolio’s performance against this [index](../i/index.md). +- **Benchmarking**: Many mutual funds and ETFs use the [Nasdaq](../n/nasdaq.md) Composite as a [benchmark](../b/benchmark.md), allowing investors to compare their portfolio’s performance against this [index](../i/index_instrument.md). - **[Economic Indicator](../e/economic_indicator.md)**: Movements in the [Nasdaq](../n/nasdaq.md) Composite are often seen as an [indicator](../i/indicator.md) of economic trends, particularly in the innovation-driven sectors. ## Recent Trends - **Tech Dominance**: Companies like Apple, Microsoft, and Amazon have continued to dominate the [Nasdaq](../n/nasdaq.md) Composite, contributing significantly to its performance. -- **Festival of Innovations**: Increasing [interest](../i/interest.md) and investment in emerging tech sectors like [artificial intelligence](../a/artificial_intelligence_in_trading.md), [cloud computing](../c/cloud_computing_in_trading.md), and electric vehicles have propelled the [index](../i/index.md). +- **Festival of Innovations**: Increasing [interest](../i/interest.md) and investment in emerging tech sectors like [artificial intelligence](../a/artificial_intelligence_in_trading.md), [cloud computing](../c/cloud_computing_in_trading.md), and electric vehicles have propelled the [index](../i/index_instrument.md). - **[Market](../m/market.md) Corrections**: Periodic [market](../m/market.md) corrections, often triggered by macroeconomic factors, impact the [Nasdaq](../n/nasdaq.md) significantly due to its high [growth stock](../g/growth_stock.md) exposure. ## Index Tracking ETFs and Funds Several financial products are designed to track the performance of the [Nasdaq](../n/nasdaq.md) Composite: -- **Invesco QQQ**: One of the most popular ETFs, it tracks the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md), which represents the largest non-financial companies [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md). -- **Fidelity [Nasdaq](../n/nasdaq.md) Composite [Index Fund](../i/index_fund.md)**: This [fund](../f/fund.md) aims to mirror the performance of the [Nasdaq](../n/nasdaq.md) Composite [Index](../i/index.md). +- **Invesco QQQ**: One of the most popular ETFs, it tracks the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md), which represents the largest non-financial companies [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md). +- **Fidelity [Nasdaq](../n/nasdaq.md) Composite [Index Fund](../i/index_fund.md)**: This [fund](../f/fund.md) aims to mirror the performance of the [Nasdaq](../n/nasdaq.md) Composite [Index](../i/index_instrument.md). ## Conclusion -The [Nasdaq](../n/nasdaq.md) Composite [Index](../i/index.md) remains one of the most vital indicators of [stock market](../s/stock_market.md) performance, particularly in the [technology sector](../t/technology_sector.md). Its comprehensive inclusion of various securities makes it a [robust](../r/robust.md) measure of [market](../m/market.md) health, [investor](../i/investor.md) sentiment, and economic direction. Its global reach and influence continue to shape investment strategies across the world. +The [Nasdaq](../n/nasdaq.md) Composite [Index](../i/index_instrument.md) remains one of the most vital indicators of [stock market](../s/stock_market.md) performance, particularly in the [technology sector](../t/technology_sector.md). Its comprehensive inclusion of various securities makes it a [robust](../r/robust.md) measure of [market](../m/market.md) health, [investor](../i/investor.md) sentiment, and economic direction. Its global reach and influence continue to shape investment strategies across the world. -For more detailed information about the [Nasdaq](../n/nasdaq.md) Composite [Index](../i/index.md), visit the [Nasdaq](../n/nasdaq.md) official page: [Nasdaq Composite Index](https://www.nasdaq.com/). \ No newline at end of file +For more detailed information about the [Nasdaq](../n/nasdaq.md) Composite [Index](../i/index_instrument.md), visit the [Nasdaq](../n/nasdaq.md) official page: [Nasdaq Composite Index](https://www.nasdaq.com/). \ No newline at end of file diff --git a/en/pedia/n/nasdaq_global_select_market_composite.md b/en/pedia/n/nasdaq_global_select_market_composite.md index 120e4713..2baf653b 100644 --- a/en/pedia/n/nasdaq_global_select_market_composite.md +++ b/en/pedia/n/nasdaq_global_select_market_composite.md @@ -1,6 +1,6 @@ # Nasdaq Global Select Market Composite -The [Nasdaq](../n/nasdaq.md) Global Select [Market](../m/market.md) Composite, often referred to as the [Nasdaq](../n/nasdaq.md) Composite or the [Nasdaq](../n/nasdaq.md) [Index](../i/index.md), is a stock [market index](../m/market_index.md) of the common [stocks](../s/stock.md) and similar securities [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) [stock market](../s/stock_market.md). It includes over 3,000 companies across various sectors and is one of the most widely followed indices in the world. +The [Nasdaq](../n/nasdaq.md) Global Select [Market](../m/market.md) Composite, often referred to as the [Nasdaq](../n/nasdaq.md) Composite or the [Nasdaq](../n/nasdaq.md) [Index](../i/index_instrument.md), is a stock [market index](../m/market_index.md) of the common [stocks](../s/stock.md) and similar securities [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) [stock market](../s/stock_market.md). It includes over 3,000 companies across various sectors and is one of the most widely followed indices in the world. ## Overview of Nasdaq The [Nasdaq](../n/nasdaq.md) [Stock Market](../s/stock_market.md) is an American stock [exchange](../e/exchange.md) located at One Liberty Plaza in New York City. It is ranked second on the list of stock exchanges by [market capitalization](../m/market_capitalization.md) of [shares](../s/shares.md) traded, behind only the New York Stock [Exchange](../e/exchange.md) (NYSE). [Nasdaq](../n/nasdaq.md) was founded by the National Association of Securities Dealers (NASD), now known as the Financial [Industry](../i/industry.md) Regulatory Authority (FINRA), and its operations began on February 8, 1971. It was the world's first electronic [stock market](../s/stock_market.md). @@ -8,12 +8,12 @@ The [Nasdaq](../n/nasdaq.md) [Stock Market](../s/stock_market.md) is an American The name "[Nasdaq](../n/nasdaq.md)" originally stood for the "National Association of Securities Dealers Automated Quotations." The [Nasdaq](../n/nasdaq.md) [Exchange](../e/exchange.md) is owned by [Nasdaq](../n/nasdaq.md), Inc., which also owns several other U.S. stock exchanges, including the Philadelphia Stock [Exchange](../e/exchange.md). ## Nasdaq Composite -The [Nasdaq Composite Index](../n/nasdaq_composite_index.md) is a [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md) of over 3,000 [stocks](../s/stock.md) [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) stock [exchange](../e/exchange.md). It is one of the most followed indices in assessing the performance of [stocks](../s/stock.md) in the United States alongside the S&P 500 and the Dow Jones Industrial Average. +The [Nasdaq Composite Index](../n/nasdaq_composite_index.md) is a [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md) of over 3,000 [stocks](../s/stock.md) [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) stock [exchange](../e/exchange.md). It is one of the most followed indices in assessing the performance of [stocks](../s/stock.md) in the United States alongside the S&P 500 and the Dow Jones Industrial Average. Unlike other major indices, the [Nasdaq](../n/nasdaq.md) Composite is heavily [weighted](../w/weighted.md) towards technology-oriented companies. As such, it is often used as a [proxy](../p/proxy.md) for the performance of the [technology sector](../t/technology_sector.md). This can make it particularly volatile as compared to more diversified indices, as technology [stocks](../s/stock.md) can be more easily influenced by [market sentiment](../m/market_sentiment.md), economic data, and other external factors. ## Companies Listed -The [Nasdaq Composite Index](../n/nasdaq_composite_index.md) includes companies from a wide [range](../r/range.md) of industries beyond just technology, including healthcare, consumer services, [finance](../f/finance.md), and industrial. However, some of the largest and most influential companies within the [index](../i/index.md) are major tech companies like Apple, Microsoft, Amazon, and Alphabet (Google). These companies often have a significant impact on the overall performance of the [index](../i/index.md) due to their substantial [market](../m/market.md) capitalizations. +The [Nasdaq Composite Index](../n/nasdaq_composite_index.md) includes companies from a wide [range](../r/range.md) of industries beyond just technology, including healthcare, consumer services, [finance](../f/finance.md), and industrial. However, some of the largest and most influential companies within the [index](../i/index_instrument.md) are major tech companies like Apple, Microsoft, Amazon, and Alphabet (Google). These companies often have a significant impact on the overall performance of the [index](../i/index_instrument.md) due to their substantial [market](../m/market.md) capitalizations. ## Criteria for Listing A company must meet specific eligibility criteria to be [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) Global Select [Market](../m/market.md). These criteria include financial, [liquidity](../l/liquidity.md), and [corporate governance](../c/corporate_governance.md) requirements. Generally, the selection criteria aim to include companies that have high standards of [financial health](../f/financial_health.md), performance, and [corporate governance](../c/corporate_governance.md). @@ -29,26 +29,26 @@ Trading on [Nasdaq](../n/nasdaq.md) is characterized by an all-electronic [tradi ## Indices Under Nasdaq Besides the [Nasdaq](../n/nasdaq.md) Composite, there are other notable indices managed by [Nasdaq](../n/nasdaq.md): -1. **[Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md)**: This [index](../i/index.md) includes the 100 largest non-financial companies [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) Stock [Exchange](../e/exchange.md). It is also heavily [weighted](../w/weighted.md) towards technology companies but excludes financial companies to provide a different sector exposure. -2. **[Nasdaq](../n/nasdaq.md) Financial-100 [Index](../i/index.md)**: This [index](../i/index.md) includes the 100 largest financial [stocks](../s/stock.md) [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) Stock [Exchange](../e/exchange.md), serving as a counterpart to the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md). -3. **[Nasdaq](../n/nasdaq.md) Transportation [Index](../i/index.md)**: Comprising companies in the [transportation sector](../t/transportation_sector.md) [listed](../l/listed.md) on [Nasdaq](../n/nasdaq.md). +1. **[Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md)**: This [index](../i/index_instrument.md) includes the 100 largest non-financial companies [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) Stock [Exchange](../e/exchange.md). It is also heavily [weighted](../w/weighted.md) towards technology companies but excludes financial companies to provide a different sector exposure. +2. **[Nasdaq](../n/nasdaq.md) Financial-100 [Index](../i/index_instrument.md)**: This [index](../i/index_instrument.md) includes the 100 largest financial [stocks](../s/stock.md) [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) Stock [Exchange](../e/exchange.md), serving as a counterpart to the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md). +3. **[Nasdaq](../n/nasdaq.md) Transportation [Index](../i/index_instrument.md)**: Comprising companies in the [transportation sector](../t/transportation_sector.md) [listed](../l/listed.md) on [Nasdaq](../n/nasdaq.md). ## Historical Performance -Historically, the [Nasdaq](../n/nasdaq.md) Composite has experienced significant growth, particularly during periods of technological innovation and strong economic performance. The dot-com bubble of the late 1990s saw the [index](../i/index.md) reach unprecedented heights before a significant [correction](../c/correction.md) in the early 2000s. Post-2008 [financial crisis](../f/financial_crisis.md), the [index](../i/index.md) has seen a [robust](../r/robust.md) resurgence, particularly driven by the growth of major technology firms. +Historically, the [Nasdaq](../n/nasdaq.md) Composite has experienced significant growth, particularly during periods of technological innovation and strong economic performance. The dot-com bubble of the late 1990s saw the [index](../i/index_instrument.md) reach unprecedented heights before a significant [correction](../c/correction.md) in the early 2000s. Post-2008 [financial crisis](../f/financial_crisis.md), the [index](../i/index_instrument.md) has seen a [robust](../r/robust.md) resurgence, particularly driven by the growth of major technology firms. ### Notable Milestones: - **March 2000**: [Nasdaq](../n/nasdaq.md) Composite reached an all-time high of over 5,000 during the dot-com bubble. -- **April 2015**: The [index](../i/index.md) closed above the 5,000 mark again underlining recovery post-2008 [financial crisis](../f/financial_crisis.md). -- **July 2020**: The [index](../i/index.md) crossed the 10,000 mark fueled by strong performance in technology [stocks](../s/stock.md) amid the COVID-19 pandemic. +- **April 2015**: The [index](../i/index_instrument.md) closed above the 5,000 mark again underlining recovery post-2008 [financial crisis](../f/financial_crisis.md). +- **July 2020**: The [index](../i/index_instrument.md) crossed the 10,000 mark fueled by strong performance in technology [stocks](../s/stock.md) amid the COVID-19 pandemic. ## Financial Products Tied to Nasdaq Numerous financial products are tied to the [Nasdaq](../n/nasdaq.md) indices, [offering](../o/offering.md) investors various ways to [gain](../g/gain.md) exposure to [Nasdaq](../n/nasdaq.md)-[listed](../l/listed.md) companies: -- **[Exchange](../e/exchange.md)-Traded Funds (ETFs)**: For example, the Invesco QQQ [Trust](../t/trust.md), which aims to track the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md). +- **[Exchange](../e/exchange.md)-Traded Funds (ETFs)**: For example, the Invesco QQQ [Trust](../t/trust.md), which aims to track the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md). - **Mutual Funds**: Many mutual funds track the performance of the [Nasdaq](../n/nasdaq.md) Composite or [Nasdaq](../n/nasdaq.md)-100. -- **[Derivatives](../d/derivatives.md)**: [Futures](../f/futures.md) and [options](../o/options.md) on the [Nasdaq](../n/nasdaq.md) [index](../i/index.md) are traded on various platforms, allowing for hedging and speculative opportunities. +- **[Derivatives](../d/derivatives.md)**: [Futures](../f/futures.md) and [options](../o/options.md) on the [Nasdaq](../n/nasdaq.md) [index](../i/index_instrument.md) are traded on various platforms, allowing for hedging and speculative opportunities. ## Impact on Global Markets -The performance of the [Nasdaq](../n/nasdaq.md) Composite often has a profound influence on global [financial markets](../f/financial_market.md). Due to the large proportion of technology-focused companies within the [index](../i/index.md), it can serve as a barometer for [investor](../i/investor.md) sentiment towards the tech sector worldwide. Additionally, given its significant [capitalization](../c/capitalization.md), fluctuations in the [Nasdaq](../n/nasdaq.md) Composite can have [ripple](../r/ripple.md) effects across other markets and indices globally. +The performance of the [Nasdaq](../n/nasdaq.md) Composite often has a profound influence on global [financial markets](../f/financial_market.md). Due to the large proportion of technology-focused companies within the [index](../i/index_instrument.md), it can serve as a barometer for [investor](../i/investor.md) sentiment towards the tech sector worldwide. Additionally, given its significant [capitalization](../c/capitalization.md), fluctuations in the [Nasdaq](../n/nasdaq.md) Composite can have [ripple](../r/ripple.md) effects across other markets and indices globally. ## Algorithms and High-Frequency Trading on Nasdaq [Algorithmic trading](../a/accountability.md) and high-frequency trading (HFT) have grown significantly on the [Nasdaq](../n/nasdaq.md) platform. These trading methods use computer algorithms to execute trades rapidly and efficiently, often capitalizing on minute discrepancies in stock prices. The technological [infrastructure](../i/infrastructure.md) of [Nasdaq](../n/nasdaq.md) supports this type of trading well, [offering](../o/offering.md) low-latency and high-speed trading capabilities. diff --git a/en/pedia/n/nasdaq_trading_strategies.md b/en/pedia/n/nasdaq_trading_strategies.md index a5db2e7a..9c88e75e 100644 --- a/en/pedia/n/nasdaq_trading_strategies.md +++ b/en/pedia/n/nasdaq_trading_strategies.md @@ -27,7 +27,7 @@ Given its focus on technology and innovation, [NASDAQ](../n/nasdaq.md) is [home] #### Tools and Indicators for Day Trading - **Moving Averages:** Used to identify trends and reversals. Common types are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA). -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** Measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** Measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **[Candlestick Patterns](../c/candlestick_patterns.md):** Patterns like [Doji](../d/doji.md), Hammer, and Engulfing help to predict potential reversals. ### 2. Scalping diff --git a/en/pedia/n/nasdaq_volatility_trading.md b/en/pedia/n/nasdaq_volatility_trading.md index f27508f1..0a172532 100644 --- a/en/pedia/n/nasdaq_volatility_trading.md +++ b/en/pedia/n/nasdaq_volatility_trading.md @@ -6,7 +6,7 @@ ## Understanding Volatility -[Volatility](../v/volatility.md) is a statistical measure of the [dispersion](../d/dispersion.md) of returns for a given [security](../s/security.md) or [market index](../m/market_index.md). Typically, the higher the [volatility](../v/volatility.md), the riskier the [security](../s/security.md). In the context of the [NASDAQ](../n/nasdaq.md), [market](../m/market.md) [volatility](../v/volatility.md) indicates how much the [NASDAQ](../n/nasdaq.md)-100 [index](../i/index.md) price is likely to differ from its current [value](../v/value.md) in the [near term](../n/near_term.md). Higher [volatility](../v/volatility.md) suggests prices could rise or fall significantly, presenting greater potential for [profit](../p/profit.md) or loss. +[Volatility](../v/volatility.md) is a statistical measure of the [dispersion](../d/dispersion.md) of returns for a given [security](../s/security.md) or [market index](../m/market_index.md). Typically, the higher the [volatility](../v/volatility.md), the riskier the [security](../s/security.md). In the context of the [NASDAQ](../n/nasdaq.md), [market](../m/market.md) [volatility](../v/volatility.md) indicates how much the [NASDAQ](../n/nasdaq.md)-100 [index](../i/index_instrument.md) price is likely to differ from its current [value](../v/value.md) in the [near term](../n/near_term.md). Higher [volatility](../v/volatility.md) suggests prices could rise or fall significantly, presenting greater potential for [profit](../p/profit.md) or loss. ### Measures of Volatility @@ -14,7 +14,7 @@ Several metrics and methods are used to quantify [volatility](../v/volatility.md - **[Historical Volatility](../h/historical_volatility.md) (HV)**: The [standard deviation](../s/standard_deviation.md) of returns over a specified period, providing an empirical measure based on past price movements. - **Implied [Volatility](../v/volatility.md) (IV)**: Derived from the price of [options](../o/options.md), it reflects the [market](../m/market.md)'s expectation of future [volatility](../v/volatility.md). -- **[Beta](../b/beta.md)**: Measures the sensitivity of a stock's [return](../r/return.md) relative to the overall [market](../m/market.md), often compared against a broad [index](../i/index.md) like the S&P 500 or [NASDAQ](../n/nasdaq.md)-100. +- **[Beta](../b/beta.md)**: Measures the sensitivity of a stock's [return](../r/return.md) relative to the overall [market](../m/market.md), often compared against a broad [index](../i/index_instrument.md) like the S&P 500 or [NASDAQ](../n/nasdaq.md)-100. ## Instruments for NASDAQ Volatility Trading @@ -28,7 +28,7 @@ Several metrics and methods are used to quantify [volatility](../v/volatility.md ### Futures and ETFs -- **[Volatility](../v/volatility.md) [Futures](../f/futures.md)**: These are [futures contracts](../f/futures_contracts.md) on [volatility](../v/volatility.md) indices like the CBOE [Volatility](../v/volatility.md) [Index](../i/index.md) (VIX). Though the VIX tracks [volatility](../v/volatility.md) for the S&P 500, there are ETFs and ETPs pegged to this [index](../i/index.md) that traders might use to [gain](../g/gain.md) exposure to [NASDAQ](../n/nasdaq.md) [volatility](../v/volatility.md). +- **[Volatility](../v/volatility.md) [Futures](../f/futures.md)**: These are [futures contracts](../f/futures_contracts.md) on [volatility](../v/volatility.md) indices like the CBOE [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX). Though the VIX tracks [volatility](../v/volatility.md) for the S&P 500, there are ETFs and ETPs pegged to this [index](../i/index_instrument.md) that traders might use to [gain](../g/gain.md) exposure to [NASDAQ](../n/nasdaq.md) [volatility](../v/volatility.md). - **[Volatility](../v/volatility.md) ETFs/ETNs**: [Exchange](../e/exchange.md)-Traded Funds (ETFs) and [Exchange](../e/exchange.md)-Traded Notes (ETNs) like ProShares' VIXY and UVXY provide direct access to [trade](../t/trade.md) [volatility](../v/volatility.md)-based products. ## Strategies in NASDAQ Volatility Trading diff --git a/en/pedia/n/national_association_of_realtors_(nar).md b/en/pedia/n/national_association_of_realtors_(nar).md index a81d136d..6a7d3e9a 100644 --- a/en/pedia/n/national_association_of_realtors_(nar).md +++ b/en/pedia/n/national_association_of_realtors_(nar).md @@ -29,7 +29,7 @@ NAR provides extensive [market research](../m/market_research.md) and economic d - Monthly reports such as the Existing-[Home](../h/home.md) Sales report. - Annual surveys like the Profile of [Home](../h/home.md) Buyers and Sellers. -- The REALTORS Confidence [Index](../i/index.md). +- The REALTORS Confidence [Index](../i/index_instrument.md). - [Commercial real estate](../c/commercial_real_estate.md) [market](../m/market.md) reports. These resources help [real estate](../r/real_estate.md) professionals make informed decisions based on current [market](../m/market.md) conditions and trends. diff --git a/en/pedia/n/national_average_wage_index_(nawi).md b/en/pedia/n/national_average_wage_index_(nawi).md index 35150912..a4f94c0e 100644 --- a/en/pedia/n/national_average_wage_index_(nawi).md +++ b/en/pedia/n/national_average_wage_index_(nawi).md @@ -1,6 +1,6 @@ # National Average Wage Index (NAWI) -The National Average Wage [Index](../i/index.md) (NAWI) is a statistical measure used predominantly in the United States to calculate adjustments in [social security](../s/social_security.md) benefits and other related financial figures based on changes in the average wages over time. Managed by the [Social Security](../s/social_security.md) Administration (SSA), this [index](../i/index.md) plays an essential role in reflecting the annual average wage levels of workers covered under [Social Security](../s/social_security.md). It serves as an [indicator](../i/indicator.md) of overall economic health and wage growth, allowing for adjustments that aim to maintain the [purchasing power](../p/purchasing_power.md) of [social security](../s/social_security.md) benefits. +The National Average Wage [Index](../i/index_instrument.md) (NAWI) is a statistical measure used predominantly in the United States to calculate adjustments in [social security](../s/social_security.md) benefits and other related financial figures based on changes in the average wages over time. Managed by the [Social Security](../s/social_security.md) Administration (SSA), this [index](../i/index_instrument.md) plays an essential role in reflecting the annual average wage levels of workers covered under [Social Security](../s/social_security.md). It serves as an [indicator](../i/indicator.md) of overall economic health and wage growth, allowing for adjustments that aim to maintain the [purchasing power](../p/purchasing_power.md) of [social security](../s/social_security.md) benefits. ## Calculation and Methodology @@ -10,7 +10,7 @@ The data for the NAWI is sourced from the wage reports submitted by employers to ### Calculating the Index -The [index](../i/index.md) is calculated by dividing the total wages earned during the year by the number of employees who receive those wages. It's then adjusted to reflect changes year over year. Here’s a simplified version of the formula: +The [index](../i/index_instrument.md) is calculated by dividing the total wages earned during the year by the number of employees who receive those wages. It's then adjusted to reflect changes year over year. Here’s a simplified version of the formula: ``` NAWI_year = (Total [social security](../s/social_security.md)-covered wages for year) / (Number of employees during the year) @@ -44,18 +44,18 @@ The NAWI is not just a tool for adjusting [social security](../s/social_security - **Economic Planning:** Government agencies and policymakers use NAWI data to make informed decisions regarding economic policies, [minimum wage](../m/minimum_wage.md) adjustments, and workforce development programs. - **[Financial Planning](../f/financial_planning.md):** Financial advisors and planners may incorporate NAWI trends in [retirement planning](../r/retirement_planning.md) and advisory services, ensuring that future retirees have a realistic understanding of potential benefits. -- **[Labor Market](../l/labor_market.md) Analysis:** Economists and labor analysts utilize the [index](../i/index.md) to study wage [growth trends](../g/growth_trends_in_trading.md), [income](../i/income.md) [distribution](../d/distribution.md), and to make forecasts regarding [labor market](../l/labor_market.md) conditions. +- **[Labor Market](../l/labor_market.md) Analysis:** Economists and labor analysts utilize the [index](../i/index_instrument.md) to study wage [growth trends](../g/growth_trends_in_trading.md), [income](../i/income.md) [distribution](../d/distribution.md), and to make forecasts regarding [labor market](../l/labor_market.md) conditions. ## Challenges and Limitations While the NAWI is a valuable tool, it also has some limitations and challenges: -- **Lag in Data Availability:** The NAWI data is typically released with a lag, meaning the most recent [economic conditions](../e/economic_conditions.md) might not be immediately reflected in the [index](../i/index.md). +- **Lag in Data Availability:** The NAWI data is typically released with a lag, meaning the most recent [economic conditions](../e/economic_conditions.md) might not be immediately reflected in the [index](../i/index_instrument.md). - **Coverage [Scope](../s/scope.md):** The NAWI only includes [earnings](../e/earnings.md) that are subject to [Social Security](../s/social_security.md) [taxes](../t/taxes.md), omitting [earnings](../e/earnings.md) from non-covered employment sectors. -- **Wage Inequality:** The [index](../i/index.md) reflects average wages, which may mask significant wage disparities within different segments of the workforce. +- **Wage Inequality:** The [index](../i/index_instrument.md) reflects average wages, which may mask significant wage disparities within different segments of the workforce. ## Conclusion -The National Average Wage [Index](../i/index.md) is a cornerstone statistic in the United States financial landscape, [offering](../o/offering.md) critical insights into wage trends and providing a [basis](../b/basis.md) for adjustments in [social security](../s/social_security.md) benefits. By accurately reflecting changes in [earnings](../e/earnings.md) over time, it ensures that [social security](../s/social_security.md) recipients maintain a consistent [purchasing power](../p/purchasing_power.md). However, like any economic measure, it requires careful interpretation and supplementation with other data to provide a comprehensive view of economic health and wage distributions. +The National Average Wage [Index](../i/index_instrument.md) is a cornerstone statistic in the United States financial landscape, [offering](../o/offering.md) critical insights into wage trends and providing a [basis](../b/basis.md) for adjustments in [social security](../s/social_security.md) benefits. By accurately reflecting changes in [earnings](../e/earnings.md) over time, it ensures that [social security](../s/social_security.md) recipients maintain a consistent [purchasing power](../p/purchasing_power.md). However, like any economic measure, it requires careful interpretation and supplementation with other data to provide a comprehensive view of economic health and wage distributions. For further details, you can explore the [Social Security Administration's official page on the NAWI](https://www.ssa.gov/OACT/COLA/AWI.html). \ No newline at end of file diff --git a/en/pedia/n/national_stock_exchange_of_india_(nse).md b/en/pedia/n/national_stock_exchange_of_india_(nse).md index 41a594a1..6ebed015 100644 --- a/en/pedia/n/national_stock_exchange_of_india_(nse).md +++ b/en/pedia/n/national_stock_exchange_of_india_(nse).md @@ -94,7 +94,7 @@ Advanced surveillance systems are in place to monitor trading activities continu ### NIFTY 50 -The [NIFTY 50](../n/nifty_50.md) is NSE’s flagship [index](../i/index.md) representing about 66.8% of the free-[float](../f/float.md) [market capitalization](../m/market_capitalization.md) of [listed](../l/listed.md) [stocks](../s/stock.md) on NSE as of December 2021. It is known for its diversified representation and is widely used as a barometer for Indian [stock market](../s/stock_market.md) performance. +The [NIFTY 50](../n/nifty_50.md) is NSE’s flagship [index](../i/index_instrument.md) representing about 66.8% of the free-[float](../f/float.md) [market capitalization](../m/market_capitalization.md) of [listed](../l/listed.md) [stocks](../s/stock.md) on NSE as of December 2021. It is known for its diversified representation and is widely used as a barometer for Indian [stock market](../s/stock_market.md) performance. ### Sectoral Indices diff --git a/en/pedia/n/natural_gas_etf.md b/en/pedia/n/natural_gas_etf.md index c6ef7564..18b0e01f 100644 --- a/en/pedia/n/natural_gas_etf.md +++ b/en/pedia/n/natural_gas_etf.md @@ -39,7 +39,7 @@ Despite generally low costs, management fees still apply to ETFs. These fees can ETFs are subject to [market](../m/market.md) risks, including [volatility](../v/volatility.md) and fluctuations in [commodity](../c/commodity.md) prices, geopolitical events, and changes in [supply](../s/supply.md) and [demand](../d/demand.md) dynamics. ### 4. Tracking Errors -ETFs may not perfectly track the [underlying](../u/underlying.md) [index](../i/index.md) or [commodity](../c/commodity.md) they aim to replicate. This discrepancy, known as a [tracking error](../t/tracking_error.md), can result in underperformance relative to the targeted [benchmark](../b/benchmark.md). +ETFs may not perfectly track the [underlying](../u/underlying.md) [index](../i/index_instrument.md) or [commodity](../c/commodity.md) they aim to replicate. This discrepancy, known as a [tracking error](../t/tracking_error.md), can result in underperformance relative to the targeted [benchmark](../b/benchmark.md). ## Key Players in the Market @@ -54,7 +54,7 @@ ProShares Ultra [Bloomberg](../b/bloomberg.md) Natural Gas seeks to provide dail **Website:** [ProShares.com](https://www.proshares.com/) ### 3. First Trust Natural Gas ETF (FCG) -The First [Trust](../t/trust.md) Natural Gas ETF seeks investment results that correspond generally to the price and [yield](../y/yield.md) of the ISE-Revere Natural Gas [Index](../i/index.md), which is designed to provide a [benchmark](../b/benchmark.md) for investors interested in tracking companies that derive a substantial portion of their revenues from the exploration and production of natural gas. +The First [Trust](../t/trust.md) Natural Gas ETF seeks investment results that correspond generally to the price and [yield](../y/yield.md) of the ISE-Revere Natural Gas [Index](../i/index_instrument.md), which is designed to provide a [benchmark](../b/benchmark.md) for investors interested in tracking companies that derive a substantial portion of their revenues from the exploration and production of natural gas. **Website:** [FirstTrust.com](https://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=FCG) diff --git a/en/pedia/n/nav_tracking_strategies.md b/en/pedia/n/nav_tracking_strategies.md index b56abb6e..00e04175 100644 --- a/en/pedia/n/nav_tracking_strategies.md +++ b/en/pedia/n/nav_tracking_strategies.md @@ -30,7 +30,7 @@ Intraday NAV proxies are estimates of NAV that [fund](../f/fund.md) managers use ### 2. Basket Trading #### Description -Basket trading involves trading a group (or "basket") of securities to mimic the performance of an [investment fund](../i/investment_fund.md) or [index](../i/index.md). This strategy is prevalent among ETFs that seek to replicate an [index](../i/index.md). +Basket trading involves trading a group (or "basket") of securities to mimic the performance of an [investment fund](../i/investment_fund.md) or [index](../i/index_instrument.md). This strategy is prevalent among ETFs that seek to replicate an [index](../i/index_instrument.md). #### Methodology - **Creation and [Redemption](../r/redemption.md) Mechanism**: Authorized participants (APs) create or redeem ETF [shares](../s/shares.md) by exchanging a basket of [underlying](../u/underlying.md) securities. @@ -40,11 +40,11 @@ Basket trading involves trading a group (or "basket") of securities to mimic the ### 3. Index Replication #### Description -[Index](../i/index.md) replication involves building a portfolio that exactly or approximately matches the components of a [benchmark](../b/benchmark.md) [index](../i/index.md). This strategy is fundamental for [index](../i/index.md) funds and ETFs. +[Index](../i/index_instrument.md) replication involves building a portfolio that exactly or approximately matches the components of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). This strategy is fundamental for [index](../i/index_instrument.md) funds and ETFs. #### Methodology -- **Full Replication**: Holding all the securities in the same proportions as the [index](../i/index.md). -- **[Sampling](../s/sampling.md)**: Holding a [representative sample](../r/representative_sample.md) of securities that match the [index](../i/index.md)’s [risk](../r/risk.md) and [return](../r/return.md) characteristics. +- **Full Replication**: Holding all the securities in the same proportions as the [index](../i/index_instrument.md). +- **[Sampling](../s/sampling.md)**: Holding a [representative sample](../r/representative_sample.md) of securities that match the [index](../i/index_instrument.md)’s [risk](../r/risk.md) and [return](../r/return.md) characteristics. - **[Optimization](../o/optimization.md) Models**: Using [quantitative models](../q/quantitative_models.md) to minimize tracking errors while managing [transaction costs](../t/transaction_costs.md). ### 4. Dynamic Hedging @@ -100,7 +100,7 @@ BlackRock is a leading [investment management](../i/investment_management.md) co ### Vanguard -Vanguard offers a [range](../r/range.md) of [index](../i/index.md) funds and ETFs, utilizing advanced [index](../i/index.md) replication and NAV tracking methodologies. +Vanguard offers a [range](../r/range.md) of [index](../i/index_instrument.md) funds and ETFs, utilizing advanced [index](../i/index_instrument.md) replication and NAV tracking methodologies. [Vanguard](https://investor.vanguard.com/etf/) ### MSCI diff --git a/en/pedia/n/negative_beta_strategies.md b/en/pedia/n/negative_beta_strategies.md index 955ace0d..cd8b00fc 100644 --- a/en/pedia/n/negative_beta_strategies.md +++ b/en/pedia/n/negative_beta_strategies.md @@ -32,7 +32,7 @@ A critical approach in [hedge](../h/hedge.md) funds where managers play on both ### 3. Leveraging Inverse and Beta-Specific ETFs -[Exchange](../e/exchange.md)-Traded Funds (ETFs) [offer](../o/offer.md) a practical way for traders to employ negative [beta](../b/beta.md) strategies. [Inverse ETFs](../i/inverse_etfs.md) are designed to move in the opposite direction of the [underlying](../u/underlying.md) [index](../i/index.md), thus providing negative [beta](../b/beta.md) exposure. Similarly, [beta](../b/beta.md)-specific ETFs can be used strategically within a portfolio to manage [beta](../b/beta.md) exposure actively. +[Exchange](../e/exchange.md)-Traded Funds (ETFs) [offer](../o/offer.md) a practical way for traders to employ negative [beta](../b/beta.md) strategies. [Inverse ETFs](../i/inverse_etfs.md) are designed to move in the opposite direction of the [underlying](../u/underlying.md) [index](../i/index_instrument.md), thus providing negative [beta](../b/beta.md) exposure. Similarly, [beta](../b/beta.md)-specific ETFs can be used strategically within a portfolio to manage [beta](../b/beta.md) exposure actively. ### 4. Algorithmic Trading Models diff --git a/en/pedia/n/negative_directional_indicator_(-di).md b/en/pedia/n/negative_directional_indicator_(-di).md index 9f571079..4729f9dc 100644 --- a/en/pedia/n/negative_directional_indicator_(-di).md +++ b/en/pedia/n/negative_directional_indicator_(-di).md @@ -1,6 +1,6 @@ # Negative Directional Indicator (-DI) -The Negative Directional [Indicator](../i/indicator.md) (-DI) is a component of the Directional Movement [Index](../i/index.md) (DMI), developed by J. Welles Wilder. The -DI line is used in [technical analysis](../t/technical_analysis.md) to help traders identify the strength and direction of a [market](../m/market.md) [trend](../t/trend.md). It specifically measures movements to the downside, helping to determine bearish pressure in the [market](../m/market.md). By comparing +DI (Positive Directional [Indicator](../i/indicator.md)) with -DI, traders can [gain](../g/gain.md) insights into the [momentum](../m/momentum.md) and make informed trading decisions. To fully understand -DI and its applications, we need to explore its calculation, usage, interpretation, and limitations. +The Negative Directional [Indicator](../i/indicator.md) (-DI) is a component of the Directional Movement [Index](../i/index_instrument.md) (DMI), developed by J. Welles Wilder. The -DI line is used in [technical analysis](../t/technical_analysis.md) to help traders identify the strength and direction of a [market](../m/market.md) [trend](../t/trend.md). It specifically measures movements to the downside, helping to determine bearish pressure in the [market](../m/market.md). By comparing +DI (Positive Directional [Indicator](../i/indicator.md)) with -DI, traders can [gain](../g/gain.md) insights into the [momentum](../m/momentum.md) and make informed trading decisions. To fully understand -DI and its applications, we need to explore its calculation, usage, interpretation, and limitations. ## Calculation of Negative Directional Indicator (-DI) @@ -94,7 +94,7 @@ To mitigate some of the limitations, traders often use -DI in combination with o - Implementing moving averages can help smooth out [price action](../p/price_action.md) and validate trends identified by -DI crossovers. 3. **Oscillators:** - - [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can be used to confirm the signals generated by -DI. + - [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can be used to confirm the signals generated by -DI. ## Conclusion diff --git a/en/pedia/n/negative_gap.md b/en/pedia/n/negative_gap.md index 4b3aed7a..fd88687c 100644 --- a/en/pedia/n/negative_gap.md +++ b/en/pedia/n/negative_gap.md @@ -85,7 +85,7 @@ With the rise of [artificial intelligence](../a/artificial_intelligence_in_tradi ## Case Studies ### **1. Tesla (TSLA)** -In September 2020, Tesla's stock experienced a significant negative gap after the company announced a $5 billion [capital](../c/capital.md) raise and inclusion in the S&P 500 [Index](../i/index.md) was delayed. The stock opened significantly lower, reflecting [investor](../i/investor.md) reaction to the news. +In September 2020, Tesla's stock experienced a significant negative gap after the company announced a $5 billion [capital](../c/capital.md) raise and inclusion in the S&P 500 [Index](../i/index_instrument.md) was delayed. The stock opened significantly lower, reflecting [investor](../i/investor.md) reaction to the news. ### **2. Facebook (now Meta Platforms, Inc.)** In July 2018, Facebook's stock gapped down by nearly 20% after the company issued a warning about slower growth and rising costs during an [earnings report](../e/earnings_report.md). This negative gap highlighted the importance of [earnings](../e/earnings.md) forecasts in stock price movements. diff --git a/en/pedia/n/negative_volume_index_(nvi).md b/en/pedia/n/negative_volume_index_(nvi).md index 64c7f0dd..0ff020d6 100644 --- a/en/pedia/n/negative_volume_index_(nvi).md +++ b/en/pedia/n/negative_volume_index_(nvi).md @@ -1,6 +1,6 @@ # Negative Volume Index (NVI) -The Negative [Volume](../v/volume.md) [Index](../i/index.md) (NVI) is a [technical analysis](../t/technical_analysis.md) tool used by traders to identify and evaluate price trends and changes within [financial markets](../f/financial_market.md). It was developed by Paul L. Dysart in the 1930s and later popularized by Norman Fosback in his 1976 book, "[Stock Market](../s/stock_market.md) Logic." +The Negative [Volume](../v/volume.md) [Index](../i/index_instrument.md) (NVI) is a [technical analysis](../t/technical_analysis.md) tool used by traders to identify and evaluate price trends and changes within [financial markets](../f/financial_market.md). It was developed by Paul L. Dysart in the 1930s and later popularized by Norman Fosback in his 1976 book, "[Stock Market](../s/stock_market.md) Logic." ## Understanding NVI @@ -50,7 +50,7 @@ NVI can be applied historically to test its effectiveness in predicting signific ### Integration with Other Indicators -NVI is often used in conjunction with other [technical indicators](../t/technical_indicator.md) to improve trading decisions. Commonly paired indicators include On-Balance [Volume](../v/volume.md) (OBV), Moving Averages, and the Positive [Volume](../v/volume.md) [Index](../i/index.md) (PVI), which focuses on days of increasing [volume](../v/volume.md). Combining NVI with other indicators can provide a more comprehensive analysis and reinforce signals. +NVI is often used in conjunction with other [technical indicators](../t/technical_indicator.md) to improve trading decisions. Commonly paired indicators include On-Balance [Volume](../v/volume.md) (OBV), Moving Averages, and the Positive [Volume](../v/volume.md) [Index](../i/index_instrument.md) (PVI), which focuses on days of increasing [volume](../v/volume.md). Combining NVI with other indicators can provide a more comprehensive analysis and reinforce signals. ### Example: Trading Strategy @@ -60,7 +60,7 @@ A straightforward [trading strategy](../t/trading_strategy.md) using the NVI inv 2. Identify crossovers: - Buy signal: When NVI crosses above its 255-day moving average. - Sell signal: When NVI crosses below its 255-day moving average. -3. Confirm signals with additional indicators (e.g., Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)) to reduce [false signals](../f/false_signals_in_trading.md). +3. Confirm signals with additional indicators (e.g., Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)) to reduce [false signals](../f/false_signals_in_trading.md). ### Risk Management @@ -82,7 +82,7 @@ Like any [trading strategy](../t/trading_strategy.md), using the NVI requires so ## Conclusion -The Negative [Volume](../v/volume.md) [Index](../i/index.md) is a valuable tool for traders and investors looking to identify and analyze price movements driven by lower trading volumes. By focusing on these quieter days, the NVI aims to capture the activities of more informed [market](../m/market.md) participants, potentially providing early indications of significant price trends and reversals. +The Negative [Volume](../v/volume.md) [Index](../i/index_instrument.md) is a valuable tool for traders and investors looking to identify and analyze price movements driven by lower trading volumes. By focusing on these quieter days, the NVI aims to capture the activities of more informed [market](../m/market.md) participants, potentially providing early indications of significant price trends and reversals. While it offers several advantages, including its simplicity and focus on "[smart money](../s/smart_money.md)," it is essential to be aware of its limitations. NVI should not be used in isolation but rather as part of a comprehensive [trading strategy](../t/trading_strategy.md) that incorporates [multiple](../m/multiple.md) indicators and sound [risk management](../r/risk_management.md) practices. diff --git a/en/pedia/n/negotiation.md b/en/pedia/n/negotiation.md index aac32044..1f56ce36 100644 --- a/en/pedia/n/negotiation.md +++ b/en/pedia/n/negotiation.md @@ -29,7 +29,7 @@ Preparation lies at the heart of successful negotiation. This involves understan ### Anchoring -[Anchoring](../a/anchoring.md) involves setting a reference point around which the negotiation [will](../w/will.md) revolve. In [financial markets](../f/financial_market.md), this could mean setting a [price target](../p/price_target.md) or a [benchmark](../b/benchmark.md) [index](../i/index.md). +[Anchoring](../a/anchoring.md) involves setting a reference point around which the negotiation [will](../w/will.md) revolve. In [financial markets](../f/financial_market.md), this could mean setting a [price target](../p/price_target.md) or a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). ### Framing diff --git a/en/pedia/n/net_change.md b/en/pedia/n/net_change.md index dc445f7e..63c63c1c 100644 --- a/en/pedia/n/net_change.md +++ b/en/pedia/n/net_change.md @@ -48,7 +48,7 @@ Net change is an essential metric in trading and investment because it immediate ### Relation to Other Metrics -While net change is a standalone metric, it is often analyzed in conjunction with other indicators, such as the [volume](../v/volume.md) of trades, moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), etc., to provide a more comprehensive view of [market](../m/market.md) conditions and [security](../s/security.md) performance. +While net change is a standalone metric, it is often analyzed in conjunction with other indicators, such as the [volume](../v/volume.md) of trades, moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), etc., to provide a more comprehensive view of [market](../m/market.md) conditions and [security](../s/security.md) performance. ## Use Cases in Financial Technologies diff --git a/en/pedia/n/net_interest_rate_differential_(nird).md b/en/pedia/n/net_interest_rate_differential_(nird).md index c65de696..44ba46d3 100644 --- a/en/pedia/n/net_interest_rate_differential_(nird).md +++ b/en/pedia/n/net_interest_rate_differential_(nird).md @@ -74,7 +74,7 @@ Several financial institutions and [hedge](../h/hedge.md) funds [leverage](../l/ 1. **[Global Macro](../g/global_macro.md) [Hedge](../h/hedge.md) Funds**: Firms like Bridgewater Associates utilize macroeconomic indicators, including NIRD, to make informed decisions about [currency](../c/currency.md) exposures and international investments. (For more information, visit [Bridgewater Associates](https://www.bridgewater.com/)) -2. **Forex Trading Platforms**: Online forex trading platforms such as [OANDA](../o/oanda.md) and IG [Index](../i/index.md) [offer](../o/offer.md) tools and analytics, including [interest rate](../i/interest_rate.md) differentials, to support traders in implementing trades based on NIRD. (For more information, visit [OANDA](https://www.oanda.com/) or [IG](https://www.ig.com/)) +2. **Forex Trading Platforms**: Online forex trading platforms such as [OANDA](../o/oanda.md) and IG [Index](../i/index_instrument.md) [offer](../o/offer.md) tools and analytics, including [interest rate](../i/interest_rate.md) differentials, to support traders in implementing trades based on NIRD. (For more information, visit [OANDA](https://www.oanda.com/) or [IG](https://www.ig.com/)) 3. **Central Banks and Financial Analysts**: Central banks, like the Federal Reserve and the European Central [Bank](../b/bank.md), monitor and analyze NIRD as part of their economic reports and policy decisions. Financial analysts use this data to forecast [currency](../c/currency.md) trends and advise clients. diff --git a/en/pedia/n/net_present_value_(npv).md b/en/pedia/n/net_present_value_(npv).md index 0fa43146..855cf1b5 100644 --- a/en/pedia/n/net_present_value_(npv).md +++ b/en/pedia/n/net_present_value_(npv).md @@ -66,13 +66,13 @@ Several factors can affect the NPV of a project or an investment: ### NPV vs. Other Investment Appraisal Methods -NPV is one of several methods used to evaluate investment opportunities. Others include the Internal [Rate of Return](../r/rate_of_return.md) (IRR), [Payback Period](../p/payback_period.md), and Profitability [Index](../i/index.md) (PI). Each method has its own advantages and limitations: +NPV is one of several methods used to evaluate investment opportunities. Others include the Internal [Rate of Return](../r/rate_of_return.md) (IRR), [Payback Period](../p/payback_period.md), and Profitability [Index](../i/index_instrument.md) (PI). Each method has its own advantages and limitations: 1. **Internal [Rate of Return](../r/rate_of_return.md) (IRR)**: IRR calculates the [discount rate](../d/discount_rate.md) at which the NPV of an investment equals zero. While it provides a clear percentage [return](../r/return.md), it can be misleading with non-conventional cash flows and [multiple](../m/multiple.md) IRRs. 2. **[Payback Period](../p/payback_period.md)**: This method measures how long it takes to recover the initial investment from cash flows. It’s simple but ignores the [time value](../t/time_value.md) of [money](../m/money.md) and cash flows beyond the [payback period](../p/payback_period.md). -3. **Profitability [Index](../i/index.md) (PI)**: PI is the ratio of the [present value](../p/present_value.md) of future cash flows to the initial investment. A PI greater than 1 indicates a favorable investment. PI can be useful for comparing projects of different sizes, but like NPV, it relies on accurate [cash flow](../c/cash_flow.md) projections and [discount](../d/discount.md) rates. +3. **Profitability [Index](../i/index_instrument.md) (PI)**: PI is the ratio of the [present value](../p/present_value.md) of future cash flows to the initial investment. A PI greater than 1 indicates a favorable investment. PI can be useful for comparing projects of different sizes, but like NPV, it relies on accurate [cash flow](../c/cash_flow.md) projections and [discount](../d/discount.md) rates. ### Applications of NPV in Real World diff --git a/en/pedia/n/net_present_value_rule.md b/en/pedia/n/net_present_value_rule.md index 1c0ec0a2..fc16fb11 100644 --- a/en/pedia/n/net_present_value_rule.md +++ b/en/pedia/n/net_present_value_rule.md @@ -81,7 +81,7 @@ While NPV is a powerful tool, it is not without limitations: 1. **[Forecasting](../f/forecasting.md) Accuracy**: The reliability of NPV depends on the accuracy of future [cash flow](../c/cash_flow.md) projections, which can be challenging to predict. 2. **[Discount Rate](../d/discount_rate.md) Selection**: Choosing an inappropriate [discount rate](../d/discount_rate.md) can lead to misleading NPV results. 3. **Ignores Non-Financial Factors**: NPV focuses solely on financial metrics and may overlook qualitative factors such as strategic alignment or [market](../m/market.md) conditions. -4. **[Capital](../c/capital.md) Rationing**: In situations where investment [capital](../c/capital.md) is limited, NPV may not always indicate which combination of projects [will](../w/will.md) maximize [value](../v/value.md). Alternative methods like the profitability [index](../i/index.md) (PI) may be required. +4. **[Capital](../c/capital.md) Rationing**: In situations where investment [capital](../c/capital.md) is limited, NPV may not always indicate which combination of projects [will](../w/will.md) maximize [value](../v/value.md). Alternative methods like the profitability [index](../i/index_instrument.md) (PI) may be required. ## Conclusion diff --git a/en/pedia/n/net_volume.md b/en/pedia/n/net_volume.md index 976f1f69..5a6d13dc 100644 --- a/en/pedia/n/net_volume.md +++ b/en/pedia/n/net_volume.md @@ -64,7 +64,7 @@ Advanced traders may develop custom indicators to measure Net [Volume](../v/volu Charting Net [Volume](../v/volume.md) alongside price helps in understanding the dynamics of buying and selling pressure. Positive and negative bars on a Net [Volume](../v/volume.md) chart make it easy to visualize [market sentiment](../m/market_sentiment.md) shifts. ### Net Volume & Oscillators -Combining Net [Volume](../v/volume.md) with oscillators like [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can improve the accuracy of [trading signals](../t/trading_signals.md). For example, a strong Net [Volume](../v/volume.md) bar along with an RSI [divergence](../d/divergence.md) could indicate a high-probability [trade](../t/trade.md) setup. +Combining Net [Volume](../v/volume.md) with oscillators like [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can improve the accuracy of [trading signals](../t/trading_signals.md). For example, a strong Net [Volume](../v/volume.md) bar along with an RSI [divergence](../d/divergence.md) could indicate a high-probability [trade](../t/trade.md) setup. ### Comparative Analysis Comparing Net [Volume](../v/volume.md) across different timeframes provides a more [robust](../r/robust.md) analysis. For instance, a positive Net [Volume](../v/volume.md) on a daily chart, but negative on an hourly chart, could signal short-term selling within a longer-term buying [trend](../t/trend.md). diff --git a/en/pedia/n/new_fund_offer_(nfo).md b/en/pedia/n/new_fund_offer_(nfo).md index 6e09bee4..5d2e90dd 100644 --- a/en/pedia/n/new_fund_offer_(nfo).md +++ b/en/pedia/n/new_fund_offer_(nfo).md @@ -20,7 +20,7 @@ NFOs can be divided into different categories based on the type of [mutual fund] Balanced or hybrid funds invest in a mix of [equity](../e/equity.md) and [debt](../d/debt.md) instruments, aiming to provide a balance of [capital](../c/capital.md) appreciation and [income](../i/income.md) generation. These funds are designed to reduce the [volatility](../v/volatility.md) typically associated with pure [equity](../e/equity.md) funds. ### 4. Index Funds -[Index](../i/index.md) funds aim to replicate the performance of a specific [index](../i/index.md) such as the S&P 500 or NSE [Nifty 50](../n/nifty_50.md). The [fund](../f/fund.md)'s portfolio consists of the same [stocks](../s/stock.md) and in the same proportions as the target [index](../i/index.md). +[Index](../i/index_instrument.md) funds aim to replicate the performance of a specific [index](../i/index_instrument.md) such as the S&P 500 or NSE [Nifty 50](../n/nifty_50.md). The [fund](../f/fund.md)'s portfolio consists of the same [stocks](../s/stock.md) and in the same proportions as the target [index](../i/index_instrument.md). ### 5. Thematic/Sector Funds Thematic or sector funds invest in specific sectors of the [economy](../e/economy.md) like technology, healthcare, or energy. These funds can be particularly volatile and are prone to sector-specific risks. diff --git a/en/pedia/n/new_zealand_stock_exchange_(nzx).md b/en/pedia/n/new_zealand_stock_exchange_(nzx).md index 8cee9b1d..9cb74455 100644 --- a/en/pedia/n/new_zealand_stock_exchange_(nzx).md +++ b/en/pedia/n/new_zealand_stock_exchange_(nzx).md @@ -10,7 +10,7 @@ The NZX traces its origins back to the Gold Rush era of the 1860s, when informal ### Equities -NZX offers a comprehensive platform for trading [shares](../s/shares.md) of publicly [listed](../l/listed.md) companies. The [exchange](../e/exchange.md) lists a diverse array of firms spanning various sectors, including [finance](../f/finance.md), telecommunications, [real estate](../r/real_estate.md), and agriculture. The main benchmarks for [equity](../e/equity.md) performance on NZX are the NZX 50 [Index](../i/index.md), which includes the top 50 companies by [market capitalization](../m/market_capitalization.md), and the NZX All [Index](../i/index.md). +NZX offers a comprehensive platform for trading [shares](../s/shares.md) of publicly [listed](../l/listed.md) companies. The [exchange](../e/exchange.md) lists a diverse array of firms spanning various sectors, including [finance](../f/finance.md), telecommunications, [real estate](../r/real_estate.md), and agriculture. The main benchmarks for [equity](../e/equity.md) performance on NZX are the NZX 50 [Index](../i/index_instrument.md), which includes the top 50 companies by [market capitalization](../m/market_capitalization.md), and the NZX All [Index](../i/index_instrument.md). ### Debt Securities diff --git a/en/pedia/n/nifty_50.md b/en/pedia/n/nifty_50.md index 8ac7a050..f7414533 100644 --- a/en/pedia/n/nifty_50.md +++ b/en/pedia/n/nifty_50.md @@ -1,42 +1,42 @@ # Nifty 50 -The Nifty 50 is a stock [market index](../m/market_index.md) comprising 50 of the largest and most [liquid](../l/liquid.md) [stocks](../s/stock.md) [listed](../l/listed.md) on the National Stock [Exchange](../e/exchange.md) (NSE) of India. Introduced in 1996, it is also known as CNX Nifty or simply Nifty. This [benchmark](../b/benchmark.md) [index](../i/index.md) serves as a barometer for the Indian equities [market](../m/market.md), [offering](../o/offering.md) investors a comprehensive insight into the performance of the top companies across various sectors. +The Nifty 50 is a stock [market index](../m/market_index.md) comprising 50 of the largest and most [liquid](../l/liquid.md) [stocks](../s/stock.md) [listed](../l/listed.md) on the National Stock [Exchange](../e/exchange.md) (NSE) of India. Introduced in 1996, it is also known as CNX Nifty or simply Nifty. This [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) serves as a barometer for the Indian equities [market](../m/market.md), [offering](../o/offering.md) investors a comprehensive insight into the performance of the top companies across various sectors. -The Nifty 50 is maintained and monitored by the India [Index](../i/index.md) Services & Products Limited (IISL), a subsidiary of the NSE. The selection of companies included in the Nifty 50 is based on specific criteria including free-[float](../f/float.md) [market capitalization](../m/market_capitalization.md), [liquidity](../l/liquidity.md), trading frequency, and other critical factors. +The Nifty 50 is maintained and monitored by the India [Index](../i/index_instrument.md) Services & Products Limited (IISL), a subsidiary of the NSE. The selection of companies included in the Nifty 50 is based on specific criteria including free-[float](../f/float.md) [market capitalization](../m/market_capitalization.md), [liquidity](../l/liquidity.md), trading frequency, and other critical factors. ## Composition and Weighting -The Nifty 50 [index](../i/index.md) covers a diverse [range](../r/range.md) of sectors including financial services, IT, [consumer goods](../c/consumer_goods.md), energy, healthcare, and many more, thus providing a well-rounded perspective of the Indian [market](../m/market.md). The [index](../i/index.md) follows a free-[float](../f/float.md) [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) methodology. Under this system, companies with higher [market capitalization](../m/market_capitalization.md) and [liquidity](../l/liquidity.md) [hold](../h/hold.md) greater weight in the [index](../i/index.md). +The Nifty 50 [index](../i/index_instrument.md) covers a diverse [range](../r/range.md) of sectors including financial services, IT, [consumer goods](../c/consumer_goods.md), energy, healthcare, and many more, thus providing a well-rounded perspective of the Indian [market](../m/market.md). The [index](../i/index_instrument.md) follows a free-[float](../f/float.md) [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) methodology. Under this system, companies with higher [market capitalization](../m/market_capitalization.md) and [liquidity](../l/liquidity.md) [hold](../h/hold.md) greater weight in the [index](../i/index_instrument.md). -The constituents are reviewed semi-annually, and any changes to the [index](../i/index.md) are implemented to ensure that it continues to represent the leading segments of the [economy](../e/economy.md) comprehensively. It's important to [note](../n/note.md) that the [index](../i/index.md) is designed to reflect the overall [market](../m/market.md) trends rather than focusing on one specific [industry](../i/industry.md). +The constituents are reviewed semi-annually, and any changes to the [index](../i/index_instrument.md) are implemented to ensure that it continues to represent the leading segments of the [economy](../e/economy.md) comprehensively. It's important to [note](../n/note.md) that the [index](../i/index_instrument.md) is designed to reflect the overall [market](../m/market.md) trends rather than focusing on one specific [industry](../i/industry.md). ## Criteria for Inclusion -To be included in the Nifty 50 [index](../i/index.md), [stocks](../s/stock.md) must meet the following eligibility criteria: +To be included in the Nifty 50 [index](../i/index_instrument.md), [stocks](../s/stock.md) must meet the following eligibility criteria: - **[Liquidity](../l/liquidity.md)**: The stock must have traded at an average impact cost of 0.50% or less over the last six months for 90% of the observations, on a portfolio of Rs. 10 Crores. -- **[Market Capitalization](../m/market_capitalization.md)**: [Stocks](../s/stock.md) should have a six-month average free-[float](../f/float.md) [market capitalization](../m/market_capitalization.md) of at least 1.5 times the average free-[float](../f/float.md) [market capitalization](../m/market_capitalization.md) of the smallest constituent in the [index](../i/index.md). +- **[Market Capitalization](../m/market_capitalization.md)**: [Stocks](../s/stock.md) should have a six-month average free-[float](../f/float.md) [market capitalization](../m/market_capitalization.md) of at least 1.5 times the average free-[float](../f/float.md) [market capitalization](../m/market_capitalization.md) of the smallest constituent in the [index](../i/index_instrument.md). - **[Domicile](../d/domicile.md)**: The company must be domiciled in India and [listed](../l/listed.md) on the NSE. - **Trading Frequency**: [Stocks](../s/stock.md) must have traded on 90% or more of the days they were available for trading during the last six months. ## Importance in Indian Financial Markets -The Nifty 50 [index](../i/index.md) holds significant importance in the Indian financial [market](../m/market.md) for several reasons: -1. **[Benchmark](../b/benchmark.md) for [Fund](../f/fund.md) Managers**: The [index](../i/index.md) serves as a [benchmark](../b/benchmark.md) against which the performance of various mutual funds, ETFs, and portfolio managers is measured. [Fund](../f/fund.md) managers aiming to mimic [market](../m/market.md) performance often track the Nifty 50. -2. **[Index](../i/index.md)-Based Products**: Several financial products like [index](../i/index.md) funds, ETFs, and [derivatives](../d/derivatives.md) are based on the Nifty 50, providing investors with diverse investment opportunities. -3. **[Market Sentiment](../m/market_sentiment.md)**: Movements in the Nifty 50 [index](../i/index.md) are followed closely by [market](../m/market.md) participants as an [indicator](../i/indicator.md) of overall [market sentiment](../m/market_sentiment.md). A rising [index](../i/index.md) is generally perceived as a sign of a bullish [market](../m/market.md), while a falling [index](../i/index.md) indicates bearish trends. -4. **[Economic Indicator](../e/economic_indicator.md)**: The performance of the Nifty 50 reflects the economic health and growth prospects of India. Policymakers, economists, and analysts use the [index](../i/index.md) to gauge the [economic conditions](../e/economic_conditions.md) and make informed decisions. +The Nifty 50 [index](../i/index_instrument.md) holds significant importance in the Indian financial [market](../m/market.md) for several reasons: +1. **[Benchmark](../b/benchmark.md) for [Fund](../f/fund.md) Managers**: The [index](../i/index_instrument.md) serves as a [benchmark](../b/benchmark.md) against which the performance of various mutual funds, ETFs, and portfolio managers is measured. [Fund](../f/fund.md) managers aiming to mimic [market](../m/market.md) performance often track the Nifty 50. +2. **[Index](../i/index_instrument.md)-Based Products**: Several financial products like [index](../i/index_instrument.md) funds, ETFs, and [derivatives](../d/derivatives.md) are based on the Nifty 50, providing investors with diverse investment opportunities. +3. **[Market Sentiment](../m/market_sentiment.md)**: Movements in the Nifty 50 [index](../i/index_instrument.md) are followed closely by [market](../m/market.md) participants as an [indicator](../i/indicator.md) of overall [market sentiment](../m/market_sentiment.md). A rising [index](../i/index_instrument.md) is generally perceived as a sign of a bullish [market](../m/market.md), while a falling [index](../i/index_instrument.md) indicates bearish trends. +4. **[Economic Indicator](../e/economic_indicator.md)**: The performance of the Nifty 50 reflects the economic health and growth prospects of India. Policymakers, economists, and analysts use the [index](../i/index_instrument.md) to gauge the [economic conditions](../e/economic_conditions.md) and make informed decisions. ## Historical Performance -Since its inception, the Nifty 50 has undergone several phases of growth, [consolidation](../c/consolidation.md), and [correction](../c/correction.md), reflecting the dynamic nature of the Indian [economy](../e/economy.md). Despite periodic downturns, the [index](../i/index.md) has shown a general upward [trend](../t/trend.md), driven by economic reforms, corporate growth, and increasing [investor](../i/investor.md) participation. +Since its inception, the Nifty 50 has undergone several phases of growth, [consolidation](../c/consolidation.md), and [correction](../c/correction.md), reflecting the dynamic nature of the Indian [economy](../e/economy.md). Despite periodic downturns, the [index](../i/index_instrument.md) has shown a general upward [trend](../t/trend.md), driven by economic reforms, corporate growth, and increasing [investor](../i/investor.md) participation. -Significant events such as economic liberalization in the 1990s, the dot-com bubble, the global [financial crisis](../f/financial_crisis.md) of 2008, and policy changes such as GST implementation have all impacted the [index](../i/index.md)'s performance. However, the resilience and diverse composition of the [index](../i/index.md) have enabled it to recover and continue its growth trajectory. +Significant events such as economic liberalization in the 1990s, the dot-com bubble, the global [financial crisis](../f/financial_crisis.md) of 2008, and policy changes such as GST implementation have all impacted the [index](../i/index_instrument.md)'s performance. However, the resilience and diverse composition of the [index](../i/index_instrument.md) have enabled it to recover and continue its growth trajectory. ## Nifty 50 and Algorithmic Trading In modern [finance](../f/finance.md), [algorithmic trading](../a/accountability.md), or algo-trading, has seen a meteoric rise due to its [efficiency](../e/efficiency.md) and speed. The Nifty 50, given its [liquidity](../l/liquidity.md) and significance, is a prominent target for [algorithmic trading strategies](../a/algorithmic_trading_strategies.md). Here’s how: -1. **[Liquidity](../l/liquidity.md) and [Volume](../v/volume.md)**: Due to its high [liquidity](../l/liquidity.md) and trading [volume](../v/volume.md), the Nifty 50 is an attractive [index](../i/index.md) for high-frequency trading (HFT) algorithms. HFT strategies, which [capitalize](../c/capitalize.md) on minute price discrepancies, thrive in such environments. +1. **[Liquidity](../l/liquidity.md) and [Volume](../v/volume.md)**: Due to its high [liquidity](../l/liquidity.md) and trading [volume](../v/volume.md), the Nifty 50 is an attractive [index](../i/index_instrument.md) for high-frequency trading (HFT) algorithms. HFT strategies, which [capitalize](../c/capitalize.md) on minute price discrepancies, thrive in such environments. 2. **[Arbitrage Opportunities](../a/arbitrage_opportunities.md)**: Algo-traders often look for [arbitrage opportunities](../a/arbitrage_opportunities.md) between Nifty 50 [futures](../f/futures.md) and cash markets. Given the popularity of the Nifty 50 [futures contracts](../f/futures_contracts.md), there are frequent opportunities for such trades. 3. **[Technical Analysis](../t/technical_analysis.md)**: The Nifty 50’s extensive historical data is a goldmine for developing and [backtesting](../b/backtesting.md) [technical analysis](../t/technical_analysis.md) strategies. Algorithmic traders use moving averages, RSI, MACD, and other indicators to make informed trading decisions. 4. **Machine Learning Integration**: Advanced algo-trading often incorporates machine learning models that predict [market](../m/market.md) movements based on historical and real-time data. The Nifty 50, with its [robust](../r/robust.md) set of data, is ideal for training such models. @@ -62,18 +62,18 @@ The [derivatives](../d/derivatives.md) [market](../m/market.md) centered around ### Nifty 50 Futures -Nifty 50 [futures](../f/futures.md) are contracts to buy or sell the [index](../i/index.md) at a predetermined price on a specified future date. These contracts are essential tools for hedging, [speculation](../s/speculation.md), and [arbitrage](../a/arbitrage.md). +Nifty 50 [futures](../f/futures.md) are contracts to buy or sell the [index](../i/index_instrument.md) at a predetermined price on a specified future date. These contracts are essential tools for hedging, [speculation](../s/speculation.md), and [arbitrage](../a/arbitrage.md). - **Hedging**: Investors and portfolio managers use Nifty 50 [futures](../f/futures.md) to [hedge](../h/hedge.md) their positions against adverse [market](../m/market.md) movements. -- **[Speculation](../s/speculation.md)**: Traders speculate on the future movement of the [index](../i/index.md) to [profit](../p/profit.md) from price changes. +- **[Speculation](../s/speculation.md)**: Traders speculate on the future movement of the [index](../i/index_instrument.md) to [profit](../p/profit.md) from price changes. - **[Arbitrage](../a/arbitrage.md)**: Exploiting price differences between the cash and [derivatives](../d/derivatives.md) markets, traders can carry out [arbitrage](../a/arbitrage.md) strategies to lock in [risk](../r/risk.md)-free profits. ### Nifty 50 Options -Nifty 50 [options](../o/options.md) provide the buyer the right, but not the obligation, to buy or sell the [index](../i/index.md) at a specific price before a specified date. +Nifty 50 [options](../o/options.md) provide the buyer the right, but not the obligation, to buy or sell the [index](../i/index_instrument.md) at a specific price before a specified date. -- **Call [Options](../o/options.md)**: Give the holder the right to buy the [index](../i/index.md). -- **[Put Options](../p/put_options.md)**: Give the holder the right to sell the [index](../i/index.md). +- **Call [Options](../o/options.md)**: Give the holder the right to buy the [index](../i/index_instrument.md). +- **[Put Options](../p/put_options.md)**: Give the holder the right to sell the [index](../i/index_instrument.md). [Options](../o/options.md) strategies are employed for: - **[Income](../i/income.md) Generation**: Writing (selling) [options](../o/options.md) to pocket premiums. @@ -82,7 +82,7 @@ Nifty 50 [options](../o/options.md) provide the buyer the right, but not the obl ## Key Companies in the Nifty 50 -Here are a few examples of prominent companies that are part of the Nifty 50 [index](../i/index.md): +Here are a few examples of prominent companies that are part of the Nifty 50 [index](../i/index_instrument.md): 1. **Reliance Industries**: A diversified [conglomerate](../c/conglomerate.md) with interests in petrochemicals, refining, oil & gas exploration, retail, and telecommunications. [Reliance Industries](https://www.ril.com/) 2. **Tata Consultancy Services (TCS)**: One of the largest IT services companies in the world, [offering](../o/offering.md) IT and [business](../b/business.md) solutions. [TCS](https://www.tcs.com/) @@ -92,6 +92,6 @@ Here are a few examples of prominent companies that are part of the Nifty 50 [in ## Conclusion -The Nifty 50 [index](../i/index.md) is not just a set of 50 [stocks](../s/stock.md) but an essential component of the Indian financial [market](../m/market.md). It serves [multiple](../m/multiple.md) roles, from being a barometer of economic health to providing avenues for sophisticated [trading strategies](../t/trading_strategies.md) like [algorithmic trading](../a/accountability.md). Its diverse composition and rigorous selection ensure that it represents the best of the Indian corporate sector, making it an indispensable tool for investors, traders, and policymakers alike. +The Nifty 50 [index](../i/index_instrument.md) is not just a set of 50 [stocks](../s/stock.md) but an essential component of the Indian financial [market](../m/market.md). It serves [multiple](../m/multiple.md) roles, from being a barometer of economic health to providing avenues for sophisticated [trading strategies](../t/trading_strategies.md) like [algorithmic trading](../a/accountability.md). Its diverse composition and rigorous selection ensure that it represents the best of the Indian corporate sector, making it an indispensable tool for investors, traders, and policymakers alike. Whether you’re a long-term [investor](../i/investor.md), a [market](../m/market.md) analyst, or an algorithmic [trader](../t/trader.md), understanding the Nifty 50 and its intricacies is fundamental to navigating the Indian equities [market](../m/market.md) successfully. \ No newline at end of file diff --git a/en/pedia/n/nikkei.md b/en/pedia/n/nikkei.md index 43940807..13c283dc 100644 --- a/en/pedia/n/nikkei.md +++ b/en/pedia/n/nikkei.md @@ -4,7 +4,7 @@ The Nikkei 225, commonly referred to as the Nikkei, is a stock [market index](.. ## History and Origin -The Nikkei 225 was established on May 16, 1949, by Nihon Keizai Shimbun (Japan Economic Newspaper), which is also known as The Nikkei and is the largest financial newspaper in Japan. The [index](../i/index.md) was aimed at providing a comprehensive [indicator](../i/indicator.md) of the performance of the Japanese [market](../m/market.md) and has since become a key barometer for assessing economic and financial conditions in Japan. +The Nikkei 225 was established on May 16, 1949, by Nihon Keizai Shimbun (Japan Economic Newspaper), which is also known as The Nikkei and is the largest financial newspaper in Japan. The [index](../i/index_instrument.md) was aimed at providing a comprehensive [indicator](../i/indicator.md) of the performance of the Japanese [market](../m/market.md) and has since become a key barometer for assessing economic and financial conditions in Japan. ## Calculation Method @@ -12,11 +12,11 @@ Unlike [market](../m/market.md)-cap [weighted](../w/weighted.md) indexes such as \[ \text{Nikkei 225 Level} = \frac{\sum \text{Prices of 225 Constituents}}{\text{Divisor}} \] -The divisor is adjusted periodically to reflect stock splits, dividends, and other corporate actions, ensuring the continuity and accuracy of the [index](../i/index.md) over time. +The divisor is adjusted periodically to reflect stock splits, dividends, and other corporate actions, ensuring the continuity and accuracy of the [index](../i/index_instrument.md) over time. ## Constituents and Composition -The Nikkei 225 comprises 225 companies selected from the TSE's First Section, which includes the largest and most stable companies traded on the [exchange](../e/exchange.md). The selection process involves considerations of sector balance and other qualitative factors. The [index](../i/index.md) covers a broad [range](../r/range.md) of industries including technology, [finance](../f/finance.md), [consumer goods](../c/consumer_goods.md), and healthcare. Notable companies in the Nikkei 225 include: +The Nikkei 225 comprises 225 companies selected from the TSE's First Section, which includes the largest and most stable companies traded on the [exchange](../e/exchange.md). The selection process involves considerations of sector balance and other qualitative factors. The [index](../i/index_instrument.md) covers a broad [range](../r/range.md) of industries including technology, [finance](../f/finance.md), [consumer goods](../c/consumer_goods.md), and healthcare. Notable companies in the Nikkei 225 include: - **Toyota Motor [Corporation](../c/corporation.md) (7203.T)** - **SoftBank Group Corp. (9984.T)** @@ -91,7 +91,7 @@ Setting [stop-loss orders](../s/stop-loss_orders.md) can help protect against si ## Conclusion -The Nikkei 225 remains one of the most important and widely-followed [stock market](../s/stock_market.md) indexes globally. Its extensive history, diverse composition, and importance as an [economic indicator](../e/economic_indicator.md) make it essential for investors and economists. With advancements in [algorithmic trading](../a/accountability.md) and FinTech, the ways in which [market](../m/market.md) participants [trade](../t/trade.md) and interact with the Nikkei 225 continue to evolve. Understanding the intricacies of this [index](../i/index.md) is crucial for anyone involved in global [financial markets](../f/financial_market.md). +The Nikkei 225 remains one of the most important and widely-followed [stock market](../s/stock_market.md) indexes globally. Its extensive history, diverse composition, and importance as an [economic indicator](../e/economic_indicator.md) make it essential for investors and economists. With advancements in [algorithmic trading](../a/accountability.md) and FinTech, the ways in which [market](../m/market.md) participants [trade](../t/trade.md) and interact with the Nikkei 225 continue to evolve. Understanding the intricacies of this [index](../i/index_instrument.md) is crucial for anyone involved in global [financial markets](../f/financial_market.md). For more information, you can visit the official Nikkei website: [Nikkei Asia](https://asia.nikkei.com/) diff --git a/en/pedia/n/nikkei_futures_trading.md b/en/pedia/n/nikkei_futures_trading.md index 169bdba5..76e0dd9b 100644 --- a/en/pedia/n/nikkei_futures_trading.md +++ b/en/pedia/n/nikkei_futures_trading.md @@ -4,7 +4,7 @@ ## What are Nikkei Futures? -[Nikkei](../n/nikkei.md) [futures](../f/futures.md) are financial contracts that obligate the buyer to purchase, or the seller to sell, the [Nikkei](../n/nikkei.md) 225 [index](../i/index.md) at a predetermined future date and price. The [Nikkei](../n/nikkei.md) 225, often referred to simply as the [Nikkei](../n/nikkei.md), is Japan's premier stock [market index](../m/market_index.md). It comprises 225 large, publicly traded companies [listed](../l/listed.md) on the Tokyo Stock [Exchange](../e/exchange.md), spanning various sectors from technology to [finance](../f/finance.md) and retail. +[Nikkei](../n/nikkei.md) [futures](../f/futures.md) are financial contracts that obligate the buyer to purchase, or the seller to sell, the [Nikkei](../n/nikkei.md) 225 [index](../i/index_instrument.md) at a predetermined future date and price. The [Nikkei](../n/nikkei.md) 225, often referred to simply as the [Nikkei](../n/nikkei.md), is Japan's premier stock [market index](../m/market_index.md). It comprises 225 large, publicly traded companies [listed](../l/listed.md) on the Tokyo Stock [Exchange](../e/exchange.md), spanning various sectors from technology to [finance](../f/finance.md) and retail. The primary reason for trading [futures](../f/futures.md) is to [hedge](../h/hedge.md) against [risk](../r/risk.md) or to speculate on the future direction of the [market](../m/market.md). @@ -39,7 +39,7 @@ Each [Nikkei](../n/nikkei.md) [futures contract](../f/futures_contract.md) speci 1. **Hedging**: Corporations and institutional investors use [Nikkei](../n/nikkei.md) [futures](../f/futures.md) to [hedge](../h/hedge.md) their portfolios against potential declines in the Japanese [stock market](../s/stock_market.md). -2. **[Speculation](../s/speculation.md)**: Traders take positions in [Nikkei](../n/nikkei.md) [futures](../f/futures.md) to [profit](../p/profit.md) from expected price movements in the [underlying](../u/underlying.md) [index](../i/index.md). This can be based on [technical analysis](../t/technical_analysis.md), fundamental research, or a combination of both. +2. **[Speculation](../s/speculation.md)**: Traders take positions in [Nikkei](../n/nikkei.md) [futures](../f/futures.md) to [profit](../p/profit.md) from expected price movements in the [underlying](../u/underlying.md) [index](../i/index_instrument.md). This can be based on [technical analysis](../t/technical_analysis.md), fundamental research, or a combination of both. 3. **[Arbitrage](../a/arbitrage.md)**: Traders may exploit price discrepancies between the [Nikkei](../n/nikkei.md) [futures](../f/futures.md) on different exchanges or between [futures](../f/futures.md) and the [underlying](../u/underlying.md) cash [market](../m/market.md). @@ -59,7 +59,7 @@ Trading [futures](../f/futures.md) involves the following risks: 2. **[Liquidity](../l/liquidity.md)**: [Nikkei](../n/nikkei.md) [futures](../f/futures.md) are highly [liquid](../l/liquid.md), which means that traders can enter and exit positions with ease. -3. **Hedging Potential**: Investors can [hedge](../h/hedge.md) against adverse movements in the [underlying](../u/underlying.md) [index](../i/index.md), protecting their portfolios from significant losses. +3. **Hedging Potential**: Investors can [hedge](../h/hedge.md) against adverse movements in the [underlying](../u/underlying.md) [index](../i/index_instrument.md), protecting their portfolios from significant losses. 4. **[Market](../m/market.md) Access**: Provides international investors with direct access to the Japanese [stock market](../s/stock_market.md). @@ -67,7 +67,7 @@ Trading [futures](../f/futures.md) involves the following risks: 1. **Institutional Investors**: Banks, mutual funds, pension funds, and [insurance](../i/insurance.md) companies use [futures](../f/futures.md) to [hedge](../h/hedge.md) investments and speculative purposes. -2. **Retail Traders**: Individual traders who speculate on the [index](../i/index.md)'s price movements or use [futures](../f/futures.md) for hedging purposes. +2. **Retail Traders**: Individual traders who speculate on the [index](../i/index_instrument.md)'s price movements or use [futures](../f/futures.md) for hedging purposes. 3. **[Market](../m/market.md) Makers**: Firms that provide [liquidity](../l/liquidity.md) by buying and selling [futures contracts](../f/futures_contracts.md), ensuring smooth [market](../m/market.md) operations. diff --git a/en/pedia/n/nikkei_index_trading.md b/en/pedia/n/nikkei_index_trading.md index bcb35aaf..1480efc8 100644 --- a/en/pedia/n/nikkei_index_trading.md +++ b/en/pedia/n/nikkei_index_trading.md @@ -1,14 +1,14 @@ # Nikkei Index Trading -The [Nikkei](../n/nikkei.md) 225, commonly known as the [Nikkei](../n/nikkei.md), is a stock [market index](../m/market_index.md) for the Tokyo Stock [Exchange](../e/exchange.md) (TSE). It has been calculated daily by the Nihon Keizai Shimbun (The [Nikkei](../n/nikkei.md)) newspaper since 1950 and is the oldest stock [index](../i/index.md) in Asia. It includes 225 blue-chip companies [listed](../l/listed.md) on the TSE and provides a snapshot of Japan's [financial health](../f/financial_health.md), making it a key [indicator](../i/indicator.md) used by traders worldwide. This detailed exploration [will](../w/will.md) delve into the various aspects of trading the [Nikkei](../n/nikkei.md) [Index](../i/index.md), including its composition, [trading strategies](../t/trading_strategies.md), [market](../m/market.md) hours, and the impact of [economic indicators](../e/economic_indicators.md). +The [Nikkei](../n/nikkei.md) 225, commonly known as the [Nikkei](../n/nikkei.md), is a stock [market index](../m/market_index.md) for the Tokyo Stock [Exchange](../e/exchange.md) (TSE). It has been calculated daily by the Nihon Keizai Shimbun (The [Nikkei](../n/nikkei.md)) newspaper since 1950 and is the oldest stock [index](../i/index_instrument.md) in Asia. It includes 225 blue-chip companies [listed](../l/listed.md) on the TSE and provides a snapshot of Japan's [financial health](../f/financial_health.md), making it a key [indicator](../i/indicator.md) used by traders worldwide. This detailed exploration [will](../w/will.md) delve into the various aspects of trading the [Nikkei](../n/nikkei.md) [Index](../i/index_instrument.md), including its composition, [trading strategies](../t/trading_strategies.md), [market](../m/market.md) hours, and the impact of [economic indicators](../e/economic_indicators.md). ## Composition and Calculation -The [Nikkei](../n/nikkei.md) 225 is a [price-weighted index](../p/price-weighted_index.md), which means that it considers the price of each stock rather than the [market capitalization](../m/market_capitalization.md). This contrasts with [market](../m/market.md)-cap-[weighted](../w/weighted.md) indices like the S&P 500. A higher-priced stock [will](../w/will.md) have more weight in the [Nikkei](../n/nikkei.md) 225, influencing the [index](../i/index.md) movement more significantly compared to lower-priced [stocks](../s/stock.md). +The [Nikkei](../n/nikkei.md) 225 is a [price-weighted index](../p/price-weighted_index.md), which means that it considers the price of each stock rather than the [market capitalization](../m/market_capitalization.md). This contrasts with [market](../m/market.md)-cap-[weighted](../w/weighted.md) indices like the S&P 500. A higher-priced stock [will](../w/will.md) have more weight in the [Nikkei](../n/nikkei.md) 225, influencing the [index](../i/index_instrument.md) movement more significantly compared to lower-priced [stocks](../s/stock.md). ### Top Constituents -The [index](../i/index.md) includes a wide [range](../r/range.md) of sectors such as technology, [consumer goods](../c/consumer_goods.md), and financial services. Some notable companies included in the [Nikkei](../n/nikkei.md) 225 [index](../i/index.md) are: +The [index](../i/index_instrument.md) includes a wide [range](../r/range.md) of sectors such as technology, [consumer goods](../c/consumer_goods.md), and financial services. Some notable companies included in the [Nikkei](../n/nikkei.md) 225 [index](../i/index_instrument.md) are: - Toyota Motor [Corporation](../c/corporation.md) - Sony [Corporation](../c/corporation.md) @@ -19,7 +19,7 @@ A complete list of the companies and their respective sectors can be found on th ## Trading Strategies -Trading the [Nikkei](../n/nikkei.md) 225 requires a solid understanding of various strategies that traders employ. Here, we [will](../w/will.md) discuss a few key strategies suited for the [index](../i/index.md). +Trading the [Nikkei](../n/nikkei.md) 225 requires a solid understanding of various strategies that traders employ. Here, we [will](../w/will.md) discuss a few key strategies suited for the [index](../i/index_instrument.md). ### Momentum Trading @@ -31,7 +31,7 @@ Trading the [Nikkei](../n/nikkei.md) 225 requires a solid understanding of vario ### Hedging -Investors use the [Nikkei](../n/nikkei.md) 225 to [hedge](../h/hedge.md) against potential losses in their Japanese stock portfolios. By shorting the [index](../i/index.md) or buying [put options](../p/put_options.md), investors can mitigate [risk](../r/risk.md). +Investors use the [Nikkei](../n/nikkei.md) 225 to [hedge](../h/hedge.md) against potential losses in their Japanese stock portfolios. By shorting the [index](../i/index_instrument.md) or buying [put options](../p/put_options.md), investors can mitigate [risk](../r/risk.md). ### Statistical Arbitrage @@ -56,15 +56,15 @@ Several [economic indicators](../e/economic_indicators.md) can significantly imp ### GDP Growth -Japan's Gross Domestic Product (GDP) can influence the [Nikkei](../n/nikkei.md) 225 [index](../i/index.md). Rapid [economic growth](../e/economic_growth.md) may lead to higher corporate [earnings](../e/earnings.md), propelling the [index](../i/index.md) upwards, while a shrinking GDP might exert downward pressure on the [index](../i/index.md). +Japan's Gross Domestic Product (GDP) can influence the [Nikkei](../n/nikkei.md) 225 [index](../i/index_instrument.md). Rapid [economic growth](../e/economic_growth.md) may lead to higher corporate [earnings](../e/earnings.md), propelling the [index](../i/index_instrument.md) upwards, while a shrinking GDP might exert downward pressure on the [index](../i/index_instrument.md). ### Unemployment Rate -The [unemployment rate](../u/unemployment_rate.md) is another critical [indicator](../i/indicator.md). Lower [unemployment](../u/unemployment.md) rates generally point to a [robust](../r/robust.md) [economy](../e/economy.md), potentially driving the [Nikkei](../n/nikkei.md) 225 higher. Conversely, increasing [unemployment](../u/unemployment.md) can indicate economic distress, which might lead to a decline in the [index](../i/index.md). +The [unemployment rate](../u/unemployment_rate.md) is another critical [indicator](../i/indicator.md). Lower [unemployment](../u/unemployment.md) rates generally point to a [robust](../r/robust.md) [economy](../e/economy.md), potentially driving the [Nikkei](../n/nikkei.md) 225 higher. Conversely, increasing [unemployment](../u/unemployment.md) can indicate economic distress, which might lead to a decline in the [index](../i/index_instrument.md). ### Inflation and Interest Rates -[Inflation](../i/inflation.md) rates and central [bank](../b/bank.md) policies regarding [interest](../i/interest.md) rates also play a crucial role. High [inflation](../i/inflation.md) can erode [purchasing power](../p/purchasing_power.md), while [interest rate](../i/interest_rate.md) hikes can decrease consumer spending and corporate profits, influencing [market](../m/market.md) sentiments and the [index](../i/index.md). +[Inflation](../i/inflation.md) rates and central [bank](../b/bank.md) policies regarding [interest](../i/interest.md) rates also play a crucial role. High [inflation](../i/inflation.md) can erode [purchasing power](../p/purchasing_power.md), while [interest rate](../i/interest_rate.md) hikes can decrease consumer spending and corporate profits, influencing [market](../m/market.md) sentiments and the [index](../i/index_instrument.md). ### Industrial Production @@ -84,7 +84,7 @@ The US markets, particularly indices like the Dow Jones Industrial Average (DJIA ### Currency Exchange Rates -The yen's [exchange rate](../e/exchange_rate.md) against other major currencies, especially the US dollar, can impact the [Nikkei](../n/nikkei.md) 225. A weaker yen generally makes Japanese exports more competitive, benefiting [export](../e/export.md)-oriented companies in the [index](../i/index.md). +The yen's [exchange rate](../e/exchange_rate.md) against other major currencies, especially the US dollar, can impact the [Nikkei](../n/nikkei.md) 225. A weaker yen generally makes Japanese exports more competitive, benefiting [export](../e/export.md)-oriented companies in the [index](../i/index_instrument.md). ### Geopolitical Events @@ -97,12 +97,12 @@ Successful trading of the [Nikkei](../n/nikkei.md) 225 often involves a combinat ### Technical Analysis - **[Candlestick](../c/candlestick.md) Charts**: Provide visual representation of price movements within specific time frames, helping to identify patterns and trends. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measures the speed and change of price movements to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measures the speed and change of price movements to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **Moving Averages**: Simplify price data to help identify the direction and strength of a [trend](../t/trend.md). ### Fundamental Analysis -- **Company Financials**: Analyzing balance sheets, [income](../i/income.md) statements, and [cash flow](../c/cash_flow.md) statements of companies in the [index](../i/index.md). +- **Company Financials**: Analyzing balance sheets, [income](../i/income.md) statements, and [cash flow](../c/cash_flow.md) statements of companies in the [index](../i/index_instrument.md). - **Economic Reports**: Keeping track of [economic indicators](../e/economic_indicators.md) such as GDP, [inflation](../i/inflation.md), and employment rates. - **News and Events**: Monitoring news for any announcements or events that could impact the [market](../m/market.md). diff --git a/en/pedia/n/no-load_fund.md b/en/pedia/n/no-load_fund.md index cb07784b..342e300b 100644 --- a/en/pedia/n/no-load_fund.md +++ b/en/pedia/n/no-load_fund.md @@ -22,7 +22,7 @@ No-[load](../l/load.md) funds provide a cost-efficient investment option as they Given that no-[load](../l/load.md) funds are most often purchased directly from the issuing company at the net [asset](../a/asset.md) [value](../v/value.md) (NAV), they [offer](../o/offer.md) a high level of [transparency](../t/transparency.md) and ease of access for investors. This direct relationship can be beneficial for managing the investment portfolio. ### Flexibility and Diverse Options -No-[load](../l/load.md) funds come in various types, including [equity](../e/equity.md) funds, [bond](../b/bond.md) funds, [index](../i/index.md) funds, and sector funds. This diversity allows investors to tailor their portfolios according to their [risk tolerance](../r/risk_tolerance.md) and investment objectives. +No-[load](../l/load.md) funds come in various types, including [equity](../e/equity.md) funds, [bond](../b/bond.md) funds, [index](../i/index_instrument.md) funds, and sector funds. This diversity allows investors to tailor their portfolios according to their [risk tolerance](../r/risk_tolerance.md) and investment objectives. ## Drawbacks of No-Load Funds @@ -38,7 +38,7 @@ Some critics argue that the performance incentives for [fund](../f/fund.md) mana ## Types of No-Load Funds ### Index Funds -[Index](../i/index.md) funds are a popular type of no-[load fund](../l/load_fund.md) that aims to replicate the performance of a specific [market index](../m/market_index.md), like the S&P 500. These funds typically have lower [expense](../e/expense.md) ratios, as they follow a passive management strategy. **Example:** [Vanguard 500 Index Fund](https://investor.vanguard.com/mutual-funds/profile/overview/vfiax). +[Index](../i/index_instrument.md) funds are a popular type of no-[load fund](../l/load_fund.md) that aims to replicate the performance of a specific [market index](../m/market_index.md), like the S&P 500. These funds typically have lower [expense](../e/expense.md) ratios, as they follow a passive management strategy. **Example:** [Vanguard 500 Index Fund](https://investor.vanguard.com/mutual-funds/profile/overview/vfiax). ### Money Market Funds [Money market](../m/money_market.md) no-[load](../l/load.md) funds invest in short-term, high-quality [debt](../d/debt.md) instruments. They [offer](../o/offer.md) [liquidity](../l/liquidity.md) and a higher level of safety, suitable for conservative investors. **Example:** [Fidelity Government Cash Reserves](https://fundresearch.fidelity.com/mutual-funds/summary/31617H102). @@ -63,7 +63,7 @@ These funds focus on specific sectors such as technology, healthcare, or energy. ## Case Studies and Examples ### Case Study 1: Growth of Index No-Load Funds -One of the most successful stories in the no-[load fund](../l/load_fund.md) category is the growth of [index](../i/index.md) funds, particularly those managed by Vanguard. Vanguard’s [index](../i/index.md) funds, such as the Vanguard 500 [Index Fund](../i/index_fund.md), have attracted a significant following due to their low costs, [transparency](../t/transparency.md), and alignment of incentives between investors and managers. These [index](../i/index.md) funds have demonstrated the ability to [outperform](../o/outperform.md) a significant portion of actively managed funds over long periods. +One of the most successful stories in the no-[load fund](../l/load_fund.md) category is the growth of [index](../i/index_instrument.md) funds, particularly those managed by Vanguard. Vanguard’s [index](../i/index_instrument.md) funds, such as the Vanguard 500 [Index Fund](../i/index_fund.md), have attracted a significant following due to their low costs, [transparency](../t/transparency.md), and alignment of incentives between investors and managers. These [index](../i/index_instrument.md) funds have demonstrated the ability to [outperform](../o/outperform.md) a significant portion of actively managed funds over long periods. ### Case Study 2: No-Load Capital Appreciation Fund Fidelity Magellan [Fund](../f/fund.md) is a well-known example in this category. Managed by famous investors like Peter Lynch, Magellan provided superior returns in the 70s and 80s without charging [load](../l/load.md) fees. Investors who bought into this no-[load fund](../l/load_fund.md) benefited from exceptional [capital](../c/capital.md) appreciation without the added cost of sales charges. @@ -82,7 +82,7 @@ The Financial [Industry](../i/industry.md) Regulatory Authority (FINRA) establis Financial advisors employing Modern Portfolio Theory (MPT) might favor no-[load](../l/load.md) funds to maximize the [capital](../c/capital.md) availability for investment [diversification](../d/diversification.md). By reducing [fee](../f/fee.md) drag, advisors can allocate more resources to [stocks](../s/stock.md) and bonds that align with their clients' [risk profiles](../r/risk_profiles.md) and [return](../r/return.md) expectations. ### Optimization Using Financial Technologies -With the advent of fintech, tools like automated portfolio construction and robo-advisors have popularized no-[load](../l/load.md) funds. Many robo-advisors, such as Betterment and Wealthfront, use no-[load](../l/load.md) funds, particularly [index](../i/index.md) funds, to achieve low-cost, diversified portfolios. +With the advent of fintech, tools like automated portfolio construction and robo-advisors have popularized no-[load](../l/load.md) funds. Many robo-advisors, such as Betterment and Wealthfront, use no-[load](../l/load.md) funds, particularly [index](../i/index_instrument.md) funds, to achieve low-cost, diversified portfolios. ### Algorithmic Trading and No-Load Funds [Algorithmic trading](../a/accountability.md) generally focuses on securities and may not be directly applicable to mutual funds. However, the [underlying](../u/underlying.md) assets within these funds could be impacted by algorithmic strategies. Traders using algorithmic methods might indirectly influence the performance of the no-[load](../l/load.md) funds by affecting the prices of the [stocks](../s/stock.md) and bonds within these funds. @@ -91,7 +91,7 @@ With the advent of fintech, tools like automated portfolio construction and robo 1. **Cost [Efficiency](../e/efficiency.md):** No-[load](../l/load.md) funds eliminate sales charges, [offering](../o/offering.md) a cost-efficient investment solution that ensures more [capital](../c/capital.md) is allocated to investment rather than fees. 2. **[Transparency](../t/transparency.md):** By purchasing directly from [fund](../f/fund.md) companies, investors enjoy higher [transparency](../t/transparency.md) and potentially better [customer service](../c/customer_service.md). -3. **Diverse [Options](../o/options.md):** Available in various forms such as [index](../i/index.md), stock, [bond](../b/bond.md), and sector funds, no-[load](../l/load.md) funds provide flexible investment avenues. +3. **Diverse [Options](../o/options.md):** Available in various forms such as [index](../i/index_instrument.md), stock, [bond](../b/bond.md), and sector funds, no-[load](../l/load.md) funds provide flexible investment avenues. 4. **Reduced Advice:** While eliminating commissions, investors may miss out on professional financial advice, posing a challenge for those less experienced. 5. **Regulatory Oversight:** SEC and FINRA regulations ensure that no-[load](../l/load.md) funds adhere to [transparency](../t/transparency.md) and fair practice standards, providing an added layer of [security](../s/security.md) for investors. diff --git a/en/pedia/n/noise_reduction_techniques.md b/en/pedia/n/noise_reduction_techniques.md index 57da383f..a32d1eba 100644 --- a/en/pedia/n/noise_reduction_techniques.md +++ b/en/pedia/n/noise_reduction_techniques.md @@ -62,7 +62,7 @@ def kalman_filter(data): state_estimate[t] = state_estimate[t] + kalman_gain * (data[t] - state_estimate[t]) estimation_error[t] = (1 - kalman_gain) * estimation_error[t] - [return](../r/return.md) pd.Series(state_estimate, [index](../i/index.md)=data.[index](../i/index.md)) + [return](../r/return.md) pd.Series(state_estimate, [index](../i/index_instrument.md)=data.[index](../i/index_instrument.md)) ``` ### 3. Fourier Transform @@ -84,7 +84,7 @@ def fourier_transform(data): # Apply Inverse Fourier Transform filtered_data = np.fft.ifft(ft) - [return](../r/return.md) pd.Series(filtered_data, [index](../i/index.md)=data.[index](../i/index.md)) + [return](../r/return.md) pd.Series(filtered_data, [index](../i/index_instrument.md)=data.[index](../i/index_instrument.md)) ``` ### 4. Savitzky-Golay Filter @@ -96,7 +96,7 @@ from scipy.signal [import](../i/import.md) savgol_filter def savitzky_golay_filter(data, window_size, polyorder): filtered_data = savgol_filter(data, window_size, polyorder) - [return](../r/return.md) pd.Series(filtered_data, [index](../i/index.md)=data.[index](../i/index.md)) + [return](../r/return.md) pd.Series(filtered_data, [index](../i/index_instrument.md)=data.[index](../i/index_instrument.md)) ``` ### 5. Wavelet Transform @@ -111,7 +111,7 @@ def wavelet_transform(data, wavelet='db4', level=1): coeffs = pywt.wavedec(data, wavelet, level=level) coeffs[1:] = [np.zeros_like(i) for i in coeffs[1:]] reconstructed_data = pywt.waverec(coeffs, wavelet) - [return](../r/return.md) pd.Series(reconstructed_data, [index](../i/index.md)=data.[index](../i/index.md)) + [return](../r/return.md) pd.Series(reconstructed_data, [index](../i/index_instrument.md)=data.[index](../i/index_instrument.md)) ``` ### 6. Hodrick-Prescott Filter @@ -141,7 +141,7 @@ def bayesian_estimator(data): trace = pm.sample(1000, return_inferencedata=False) mu_estimated = np.mean(trace['mu']) - [return](../r/return.md) pd.Series([mu_estimated]*len(data), [index](../i/index.md)=data.[index](../i/index.md)) + [return](../r/return.md) pd.Series([mu_estimated]*len(data), [index](../i/index_instrument.md)=data.[index](../i/index_instrument.md)) ``` ### 8. Robust Statistics diff --git a/en/pedia/n/noise_trading.md b/en/pedia/n/noise_trading.md index 8f3e60a5..f313e4de 100644 --- a/en/pedia/n/noise_trading.md +++ b/en/pedia/n/noise_trading.md @@ -11,7 +11,7 @@ [Market sentiment](../m/market_sentiment.md) refers to the overall attitude of investors toward a particular [security](../s/security.md) or [market](../m/market.md). It is driven by emotions and perceptions rather than [quantitative analysis](../q/quantitative_analysis.md). Bullish sentiment occurs when investors are optimistic and expect prices to rise, whereas bearish sentiment happens when they expect a decline. [Noise](../n/noise.md) traders often act on these sentiments, contributing to price [volatility](../v/volatility.md). ### Technical Indicators -[Noise](../n/noise.md) traders often rely heavily on [technical analysis](../t/technical_analysis.md) using indicators like moving averages, [Bollinger Bands](../b/bollinger_bands.md), or [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI). These tools can create signals based on past price data and [volume](../v/volume.md), making traders act on perceived patterns rather than [underlying](../u/underlying.md) fundamentals. +[Noise](../n/noise.md) traders often rely heavily on [technical analysis](../t/technical_analysis.md) using indicators like moving averages, [Bollinger Bands](../b/bollinger_bands.md), or [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI). These tools can create signals based on past price data and [volume](../v/volume.md), making traders act on perceived patterns rather than [underlying](../u/underlying.md) fundamentals. ### News and Rumors In the age of information, news cycles and rumors can heavily influence [noise](../n/noise.md) traders. A sudden news article, tweet, or rumor can result in significant buying or selling activity, moving prices sharply even if the [underlying](../u/underlying.md) fundamentals of the [asset](../a/asset.md) haven’t changed. diff --git a/en/pedia/n/nominal_effective_exchange_rate_(neer).md b/en/pedia/n/nominal_effective_exchange_rate_(neer).md index 6d912615..85289831 100644 --- a/en/pedia/n/nominal_effective_exchange_rate_(neer).md +++ b/en/pedia/n/nominal_effective_exchange_rate_(neer).md @@ -1,6 +1,6 @@ # Nominal Effective Exchange Rate (NEER) -The [Nominal](../n/nominal.md) Effective [Exchange Rate](../e/exchange_rate.md) (NEER) is an [index](../i/index.md) that provides a summary measure of the [value](../v/value.md) of a [currency](../c/currency.md) against a basket of other currencies. Unlike a bilateral [exchange rate](../e/exchange_rate.md), which compares the [value](../v/value.md) of one [currency](../c/currency.md) to another, NEER assesses a country's [currency](../c/currency.md) [value](../v/value.md) in a generalized, multilateral context. This is particularly valuable for understanding the overall competitiveness of a country's goods and services. +The [Nominal](../n/nominal.md) Effective [Exchange Rate](../e/exchange_rate.md) (NEER) is an [index](../i/index_instrument.md) that provides a summary measure of the [value](../v/value.md) of a [currency](../c/currency.md) against a basket of other currencies. Unlike a bilateral [exchange rate](../e/exchange_rate.md), which compares the [value](../v/value.md) of one [currency](../c/currency.md) to another, NEER assesses a country's [currency](../c/currency.md) [value](../v/value.md) in a generalized, multilateral context. This is particularly valuable for understanding the overall competitiveness of a country's goods and services. ## Definition and Calculation @@ -49,7 +49,7 @@ Several institutions provide NEER data: ### Calculation Methodologies -Different institutions may use different basket compositions, weightings, and methodologies to calculate NEER. Generally, weights are derived from [trade](../t/trade.md) [shares](../s/shares.md), often adjusted for factors like [trade](../t/trade.md) policies and sectoral differences. The choice of [base year](../b/base_year.md) ([benchmark](../b/benchmark.md) year for [index](../i/index.md) values) can also vary, impacting the interpretation of NEER trends. +Different institutions may use different basket compositions, weightings, and methodologies to calculate NEER. Generally, weights are derived from [trade](../t/trade.md) [shares](../s/shares.md), often adjusted for factors like [trade](../t/trade.md) policies and sectoral differences. The choice of [base year](../b/base_year.md) ([benchmark](../b/benchmark.md) year for [index](../i/index_instrument.md) values) can also vary, impacting the interpretation of NEER trends. ## Limitations and Considerations diff --git a/en/pedia/n/non-correlation_strategies.md b/en/pedia/n/non-correlation_strategies.md index 05d3e8c1..86cb8176 100644 --- a/en/pedia/n/non-correlation_strategies.md +++ b/en/pedia/n/non-correlation_strategies.md @@ -4,7 +4,7 @@ ### Understanding Non-Correlation Strategies -Non-[correlation](../c/correlation.md) strategies seek to develop a portfolio of assets whose returns do not move in tandem with each other or with a primary [index](../i/index.md) or [benchmark](../b/benchmark.md). By focusing on relationships that exhibit low or negative correlations, these strategies aim to reduce overall portfolio [volatility](../v/volatility.md) and improve [risk](../r/risk.md)-adjusted returns, [offering](../o/offering.md) a buffer against systemic [market](../m/market.md) risks. +Non-[correlation](../c/correlation.md) strategies seek to develop a portfolio of assets whose returns do not move in tandem with each other or with a primary [index](../i/index_instrument.md) or [benchmark](../b/benchmark.md). By focusing on relationships that exhibit low or negative correlations, these strategies aim to reduce overall portfolio [volatility](../v/volatility.md) and improve [risk](../r/risk.md)-adjusted returns, [offering](../o/offering.md) a buffer against systemic [market](../m/market.md) risks. To grasp the concept, consider two assets. If [Asset](../a/asset.md) A tends to go up when [Asset](../a/asset.md) B goes down, and vice versa, their [correlation](../c/correlation.md) is negative, implying they respond differently to [market](../m/market.md) signals. By combining such assets, traders can create portfolios less susceptible to individual [market](../m/market.md) events. diff --git a/en/pedia/n/non-financial_market_data.md b/en/pedia/n/non-financial_market_data.md index a03e0aaf..58a8ce27 100644 --- a/en/pedia/n/non-financial_market_data.md +++ b/en/pedia/n/non-financial_market_data.md @@ -68,7 +68,7 @@ Integrating non-financial data into existing [trading systems](../t/trading_syst ## Case Studies and Applications ### Predicting Stock Movements with Social Media -A well-known application of [social media](../s/social_media.md) data in [trade](../t/trade.md) involves analyzing Twitter sentiment to predict stock price movements. Academic studies and firms like T3 [index](../i/index.md) have demonstrated that sentiment data from Twitter can serve as a [proxy](../p/proxy.md) for public opinion and [market sentiment](../m/market_sentiment.md). +A well-known application of [social media](../s/social_media.md) data in [trade](../t/trade.md) involves analyzing Twitter sentiment to predict stock price movements. Academic studies and firms like T3 [index](../i/index_instrument.md) have demonstrated that sentiment data from Twitter can serve as a [proxy](../p/proxy.md) for public opinion and [market sentiment](../m/market_sentiment.md). ### Commodity Trading with Weather Data Weather [derivatives](../d/derivatives.md) are financial instruments that firms use to [hedge](../h/hedge.md) against weather-related risks. [Algorithmic trading](../a/algorithmic_trading.md) strategies utilizing weather data have been developed to [trade](../t/trade.md) these [derivatives](../d/derivatives.md) and related commodities like oil and agricultural products. diff --git a/en/pedia/n/non-gaussian_models.md b/en/pedia/n/non-gaussian_models.md index 6d1b2dc4..e5fba637 100644 --- a/en/pedia/n/non-gaussian_models.md +++ b/en/pedia/n/non-gaussian_models.md @@ -16,12 +16,12 @@ ### 1. Stable Distributions -Stable distributions, particularly Lévy stable distributions, generalize the [Gaussian distribution](../g/gaussian_distribution.md) and allow for [skewness](../s/skewness.md) and heavier tails. The most common type is the α-stable [distribution](../d/distribution.md), defined by four parameters: location, scale, [skewness](../s/skewness.md), and stability [index](../i/index.md) (α). +Stable distributions, particularly Lévy stable distributions, generalize the [Gaussian distribution](../g/gaussian_distribution.md) and allow for [skewness](../s/skewness.md) and heavier tails. The most common type is the α-stable [distribution](../d/distribution.md), defined by four parameters: location, scale, [skewness](../s/skewness.md), and stability [index](../i/index_instrument.md) (α). - **Location Parameter**: Specifies the central tendency of the [distribution](../d/distribution.md). - **Scale Parameter**: Dictates the width or [dispersion](../d/dispersion.md). - **[Skewness](../s/skewness.md) Parameter**: Controls the asymmetry. -- **Stability [Index](../i/index.md) (α)**: Ranges from 0 to 2, where α = 2 corresponds to a [Gaussian distribution](../g/gaussian_distribution.md). α < 2 allows for heavy tails. +- **Stability [Index](../i/index_instrument.md) (α)**: Ranges from 0 to 2, where α = 2 corresponds to a [Gaussian distribution](../g/gaussian_distribution.md). α < 2 allows for heavy tails. **Advantages**: More accurately models the observed properties of financial returns including heavy tails and [skewness](../s/skewness.md). diff --git a/en/pedia/n/normal_inverse_gaussian_distribution.md b/en/pedia/n/normal_inverse_gaussian_distribution.md index 8be8d649..7b2f1ece 100644 --- a/en/pedia/n/normal_inverse_gaussian_distribution.md +++ b/en/pedia/n/normal_inverse_gaussian_distribution.md @@ -8,7 +8,7 @@ A random variable \(X\) is said to follow a Normal Inverse [Gaussian distributio \[ f(x; \[alpha](../a/alpha.md), \[beta](../b/beta.md), \[delta](../d/delta.md), \mu) = \frac{\[alpha](../a/alpha.md) \[delta](../d/delta.md) K_1(\[alpha](../a/alpha.md) \sqrt{\[delta](../d/delta.md)^2 + (x - \mu)^2})}{\pi \sqrt{\[delta](../d/delta.md)^2 + (x - \mu)^2}} \exp(\[delta](../d/delta.md) \sqrt{\[alpha](../a/alpha.md)^2 - \[beta](../b/beta.md)^2} + \[beta](../b/beta.md) (x - \mu)), \] -where \( K_1 \) is the modified Bessel function of the second kind with an [index](../i/index.md) of 1, and the parameters \(\[alpha](../a/alpha.md), \[beta](../b/beta.md), \[delta](../d/delta.md), \mu \) must satisfy the condition \( \[alpha](../a/alpha.md) > |\[beta](../b/beta.md)| \). +where \( K_1 \) is the modified Bessel function of the second kind with an [index](../i/index_instrument.md) of 1, and the parameters \(\[alpha](../a/alpha.md), \[beta](../b/beta.md), \[delta](../d/delta.md), \mu \) must satisfy the condition \( \[alpha](../a/alpha.md) > |\[beta](../b/beta.md)| \). - \( \[alpha](../a/alpha.md) \): Shape parameter that determines the steepness and [kurtosis](../k/kurtosis.md) of the [distribution](../d/distribution.md). - \( \[beta](../b/beta.md) \): Asymmetry parameter; when \( \[beta](../b/beta.md) = 0 \), the [distribution](../d/distribution.md) is symmetric. diff --git a/en/pedia/n/normalized_returns.md b/en/pedia/n/normalized_returns.md index d1a8084b..6730ad7b 100644 --- a/en/pedia/n/normalized_returns.md +++ b/en/pedia/n/normalized_returns.md @@ -34,7 +34,7 @@ There are [multiple](../m/multiple.md) ways to normalize returns, depending on t \] where \( R \) is the [return](../r/return.md) of the [asset](../a/asset.md), \( R_f \) is the [risk](../r/risk.md)-free rate, and \( \sigma \) is the [standard deviation](../s/standard_deviation.md) of the [asset](../a/asset.md)'s [excess return](../e/excess_return.md). -4. **[Benchmark](../b/benchmark.md) Normalization**: This method involves comparing returns to an [index](../i/index.md) or [benchmark](../b/benchmark.md). The [return](../r/return.md) is divided by the [benchmark](../b/benchmark.md) [return](../r/return.md) to [yield](../y/yield.md) a normalized figure. +4. **[Benchmark](../b/benchmark.md) Normalization**: This method involves comparing returns to an [index](../i/index_instrument.md) or [benchmark](../b/benchmark.md). The [return](../r/return.md) is divided by the [benchmark](../b/benchmark.md) [return](../r/return.md) to [yield](../y/yield.md) a normalized figure. #### Application in Algorithmic Trading diff --git a/en/pedia/n/north_american_industry_classification_system_(naics).md b/en/pedia/n/north_american_industry_classification_system_(naics).md index 5e3f954e..bd89b696 100644 --- a/en/pedia/n/north_american_industry_classification_system_(naics).md +++ b/en/pedia/n/north_american_industry_classification_system_(naics).md @@ -92,7 +92,7 @@ NAICS is designed to be compatible with international [industry](../i/industry.m NAICS information is publicly accessible through various governmental websites. For instance: - The U.S. Census Bureau (https://www.census.gov/naics/) provides comprehensive NAICS resources, including current codes, proposed changes, and historical data. -- [Statistics](../s/statistics.md) Canada (https://www.statcan.gc.ca/eng/subjects/standard/naics/2017/[index](../i/index.md)) offers Canadian [industry](../i/industry.md) classifications based on NAICS. +- [Statistics](../s/statistics.md) Canada (https://www.statcan.gc.ca/eng/subjects/standard/naics/2017/[index](../i/index_instrument.md)) offers Canadian [industry](../i/industry.md) classifications based on NAICS. - INEGI (http://www.inegi.org.mx/) details the Mexican implementation and utilization of NAICS. These resources ensure that businesses, researchers, policymakers, and the general public can easily access and employ NAICS data for their respective needs. diff --git a/en/pedia/n/notional_principal_amount.md b/en/pedia/n/notional_principal_amount.md index 4a21af4b..3a4ea845 100644 --- a/en/pedia/n/notional_principal_amount.md +++ b/en/pedia/n/notional_principal_amount.md @@ -14,7 +14,7 @@ For example, in an [interest rate swap](../i/interest_rate_swap.md), two parties In an [interest rate swap](../i/interest_rate_swap.md), two parties [exchange](../e/exchange.md) [interest](../i/interest.md) payments based on a notional [principal](../p/principal.md) amount. The idea is to [hedge](../h/hedge.md) against [interest rate risk](../i/interest_rate_risk.md) or to speculate on changes in [interest](../i/interest.md) rates. Typically, one party [will](../w/will.md) pay a [fixed interest rate](../f/fixed_interest_rate.md) while the other pays a [floating interest rate](../f/floating_interest_rate.md). -- **Fixed-for-floating swaps**: One party pays a fixed rate while the other pays a floating rate tied to an [index](../i/index.md) such as LIBOR (London Interbank Offered Rate). +- **Fixed-for-floating swaps**: One party pays a fixed rate while the other pays a floating rate tied to an [index](../i/index_instrument.md) such as LIBOR (London Interbank Offered Rate). - **Floating-for-floating swaps**: Both parties pay floating rates, but based on different reference indices. These [interest](../i/interest.md) payments are determined by applying the respective [interest](../i/interest.md) rates to the notional [principal](../p/principal.md) amount. diff --git a/en/pedia/n/notional_value.md b/en/pedia/n/notional_value.md index e03872ff..6142c3a6 100644 --- a/en/pedia/n/notional_value.md +++ b/en/pedia/n/notional_value.md @@ -60,7 +60,7 @@ Institutional traders and [hedge](../h/hedge.md) funds often use [derivatives](. ### Retail Investors -Retail investors might encounter the concept of notional [value](../v/value.md) while trading [options](../o/options.md) and [futures](../f/futures.md). For example, a retail [trader](../t/trader.md) who buys 5 S&P 500 [futures contracts](../f/futures_contracts.md) at an [index](../i/index.md) price of 3,000 points (each point worth $50) would have a notional [value](../v/value.md) exposure of: +Retail investors might encounter the concept of notional [value](../v/value.md) while trading [options](../o/options.md) and [futures](../f/futures.md). For example, a retail [trader](../t/trader.md) who buys 5 S&P 500 [futures contracts](../f/futures_contracts.md) at an [index](../i/index_instrument.md) price of 3,000 points (each point worth $50) would have a notional [value](../v/value.md) exposure of: \[ 5 \text{ contracts} \times 3,000 \text{ points} \times \$50/\text{point} = \$750,000 \] diff --git a/en/pedia/n/nyse_composite_index.md b/en/pedia/n/nyse_composite_index.md index 22195d47..2778b1b7 100644 --- a/en/pedia/n/nyse_composite_index.md +++ b/en/pedia/n/nyse_composite_index.md @@ -1,24 +1,24 @@ # NYSE Composite Index -The NYSE Composite [Index](../i/index.md) is a stock [market index](../m/market_index.md) that tracks the performance of all common [stocks](../s/stock.md) [listed](../l/listed.md) on the New York Stock [Exchange](../e/exchange.md) (NYSE). It is considered one of the broadest and most inclusive indexes in the U.S. [equity](../e/equity.md) markets, representing the performance of a diverse array of industries and sectors that make up the NYSE. The [index](../i/index.md) is calculated using a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) methodology, meaning larger companies have a greater influence on the [index](../i/index.md)'s performance than smaller ones. +The NYSE Composite [Index](../i/index_instrument.md) is a stock [market index](../m/market_index.md) that tracks the performance of all common [stocks](../s/stock.md) [listed](../l/listed.md) on the New York Stock [Exchange](../e/exchange.md) (NYSE). It is considered one of the broadest and most inclusive indexes in the U.S. [equity](../e/equity.md) markets, representing the performance of a diverse array of industries and sectors that make up the NYSE. The [index](../i/index_instrument.md) is calculated using a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) methodology, meaning larger companies have a greater influence on the [index](../i/index_instrument.md)'s performance than smaller ones. ## Introduction -The NYSE Composite [Index](../i/index.md) includes over 1,900 [stocks](../s/stock.md), including both U.S. and international companies. It is a vital [indicator](../i/indicator.md) for gauging the overall health of the equities traded on the NYSE. With its creation dating back to the early 1960s, this [index](../i/index.md) offers a long-term perspective on [market](../m/market.md) trends and serves as a comprehensive [benchmark](../b/benchmark.md) for investors and analysts. +The NYSE Composite [Index](../i/index_instrument.md) includes over 1,900 [stocks](../s/stock.md), including both U.S. and international companies. It is a vital [indicator](../i/indicator.md) for gauging the overall health of the equities traded on the NYSE. With its creation dating back to the early 1960s, this [index](../i/index_instrument.md) offers a long-term perspective on [market](../m/market.md) trends and serves as a comprehensive [benchmark](../b/benchmark.md) for investors and analysts. ## Calculation Methodology -The NYSE Composite [Index](../i/index.md) uses a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) calculation, making it sensitive to the fluctuations in the [market](../m/market.md) values of the larger companies [listed](../l/listed.md) on the NYSE. Unlike price-[weighted](../w/weighted.md) indexes like the Dow Jones Industrial Average, a [market](../m/market.md)-cap-[weighted](../w/weighted.md) [index](../i/index.md) gives proportionately more weight to companies with larger [market](../m/market.md) capitalizations. +The NYSE Composite [Index](../i/index_instrument.md) uses a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) calculation, making it sensitive to the fluctuations in the [market](../m/market.md) values of the larger companies [listed](../l/listed.md) on the NYSE. Unlike price-[weighted](../w/weighted.md) indexes like the Dow Jones Industrial Average, a [market](../m/market.md)-cap-[weighted](../w/weighted.md) [index](../i/index_instrument.md) gives proportionately more weight to companies with larger [market](../m/market.md) capitalizations. ### Formula -The formula for the NYSE Composite [Index](../i/index.md) is as follows: +The formula for the NYSE Composite [Index](../i/index_instrument.md) is as follows: \[ \text{Index Level} = \left( \frac{\sum(\text{[Market](../m/market.md) Cap of All Components})}{\text{Divisor}} \right) \] ### Market Cap Calculation - **[Market Capitalization](../m/market_capitalization.md)**: It is calculated as the share price multiplied by the number of outstanding [shares](../s/shares.md) for each company. -- **Divisor**: A proprietary figure that adjusts for stock splits, spinoffs, and other corporate actions to maintain [index](../i/index.md) continuity. +- **Divisor**: A proprietary figure that adjusts for stock splits, spinoffs, and other corporate actions to maintain [index](../i/index_instrument.md) continuity. ## Components -The NYSE Composite [Index](../i/index.md) encompasses a comprehensive [range](../r/range.md) of sectors, including but not limited to: +The NYSE Composite [Index](../i/index_instrument.md) encompasses a comprehensive [range](../r/range.md) of sectors, including but not limited to: - Financials - Healthcare - Information Technology @@ -29,35 +29,35 @@ The NYSE Composite [Index](../i/index.md) encompasses a comprehensive [range](.. The components are reviewed periodically to ensure they remain representative of the broader [market](../m/market.md). ## Historical Performance -Over its long history, the NYSE Composite [Index](../i/index.md) has experienced several [bull](../b/bull.md) and bear [market cycles](../m/market_cycles.md), reflecting broader [economic conditions](../e/economic_conditions.md). Notably, it provides historical data that is invaluable for [trend analysis](../t/trend_analysis.md) and investment strategies. +Over its long history, the NYSE Composite [Index](../i/index_instrument.md) has experienced several [bull](../b/bull.md) and bear [market cycles](../m/market_cycles.md), reflecting broader [economic conditions](../e/economic_conditions.md). Notably, it provides historical data that is invaluable for [trend analysis](../t/trend_analysis.md) and investment strategies. ## Importance for Investors ### Diversification -By including a [wide variety](../w/wide_variety.md) of industries and companies of different sizes, the NYSE Composite [Index](../i/index.md) offers a diversified portfolio that mitigates risks associated with individual sectors or [stocks](../s/stock.md). +By including a [wide variety](../w/wide_variety.md) of industries and companies of different sizes, the NYSE Composite [Index](../i/index_instrument.md) offers a diversified portfolio that mitigates risks associated with individual sectors or [stocks](../s/stock.md). ### Benchmarking -Investors and [fund](../f/fund.md) managers often use the NYSE Composite [Index](../i/index.md) as a [benchmark](../b/benchmark.md) to compare the performance of their own portfolios. This helps in assessing whether specific investments are outperforming or underperforming the broader [market](../m/market.md). +Investors and [fund](../f/fund.md) managers often use the NYSE Composite [Index](../i/index_instrument.md) as a [benchmark](../b/benchmark.md) to compare the performance of their own portfolios. This helps in assessing whether specific investments are outperforming or underperforming the broader [market](../m/market.md). ### Market Sentiment -The [index](../i/index.md) serves as a barometer for [market sentiment](../m/market_sentiment.md). Because it includes a large number of [stocks](../s/stock.md), its performance can provide insights into general [investor](../i/investor.md) confidence and economic health. +The [index](../i/index_instrument.md) serves as a barometer for [market sentiment](../m/market_sentiment.md). Because it includes a large number of [stocks](../s/stock.md), its performance can provide insights into general [investor](../i/investor.md) confidence and economic health. ## ETFs and Mutual Funds -Several [Exchange](../e/exchange.md)-Traded Funds (ETFs) and mutual funds aim to replicate the performance of the NYSE Composite [Index](../i/index.md). These financial products [offer](../o/offer.md) investors an easy way to [gain](../g/gain.md) exposure to the broad [market](../m/market.md) without needing to invest in each component individually. +Several [Exchange](../e/exchange.md)-Traded Funds (ETFs) and mutual funds aim to replicate the performance of the NYSE Composite [Index](../i/index_instrument.md). These financial products [offer](../o/offer.md) investors an easy way to [gain](../g/gain.md) exposure to the broad [market](../m/market.md) without needing to invest in each component individually. ## Key Differences from Other Indexes ### NYSE Composite vs. S&P 500 -- **[Scope](../s/scope.md)**: The NYSE Composite [Index](../i/index.md) includes over 1,900 [stocks](../s/stock.md), while the S&P 500 includes 500 large-cap U.S. [stocks](../s/stock.md). -- **International Exposure**: The NYSE Composite [Index](../i/index.md) includes international companies [listed](../l/listed.md) on the NYSE, whereas the S&P 500 primarily focuses on U.S. companies. -- **[Market](../m/market.md) Cap**: The weighting and composition can differ significantly due to the larger and more diverse set of companies in the NYSE Composite [Index](../i/index.md). +- **[Scope](../s/scope.md)**: The NYSE Composite [Index](../i/index_instrument.md) includes over 1,900 [stocks](../s/stock.md), while the S&P 500 includes 500 large-cap U.S. [stocks](../s/stock.md). +- **International Exposure**: The NYSE Composite [Index](../i/index_instrument.md) includes international companies [listed](../l/listed.md) on the NYSE, whereas the S&P 500 primarily focuses on U.S. companies. +- **[Market](../m/market.md) Cap**: The weighting and composition can differ significantly due to the larger and more diverse set of companies in the NYSE Composite [Index](../i/index_instrument.md). ### NYSE Composite vs. Dow Jones Industrial Average -- **Number of Components**: The NYSE Composite [Index](../i/index.md) includes around 1,900 [stocks](../s/stock.md), compared to just 30 in the Dow Jones Industrial Average. +- **Number of Components**: The NYSE Composite [Index](../i/index_instrument.md) includes around 1,900 [stocks](../s/stock.md), compared to just 30 in the Dow Jones Industrial Average. - **Weighting Methodology**: The NYSE Composite is [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md), while the Dow is price-[weighted](../w/weighted.md). ## Future Outlook -As [stock market](../s/stock_market.md) conditions evolve, the NYSE Composite [Index](../i/index.md) [will](../w/will.md) continue to adapt through periodic [rebalancing](../r/rebalancing.md) and component adjustments. This makes it a dynamic tool for investors seeking to understand long-term [market](../m/market.md) trends and immediate [market](../m/market.md) movements. +As [stock market](../s/stock_market.md) conditions evolve, the NYSE Composite [Index](../i/index_instrument.md) [will](../w/will.md) continue to adapt through periodic [rebalancing](../r/rebalancing.md) and component adjustments. This makes it a dynamic tool for investors seeking to understand long-term [market](../m/market.md) trends and immediate [market](../m/market.md) movements. ## Conclusion -The NYSE Composite [Index](../i/index.md) is one of the most comprehensive and inclusive measures of [market](../m/market.md) performance available today. Its [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) methodology ensures that larger, more economically significant companies have a proportionate impact on the [index](../i/index.md). For investors, analysts, and [fund](../f/fund.md) managers, it serves as an indispensable [benchmark](../b/benchmark.md) and a valuable tool for understanding [market dynamics](../m/market_dynamics.md) and trends. +The NYSE Composite [Index](../i/index_instrument.md) is one of the most comprehensive and inclusive measures of [market](../m/market.md) performance available today. Its [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) methodology ensures that larger, more economically significant companies have a proportionate impact on the [index](../i/index_instrument.md). For investors, analysts, and [fund](../f/fund.md) managers, it serves as an indispensable [benchmark](../b/benchmark.md) and a valuable tool for understanding [market dynamics](../m/market_dynamics.md) and trends. -For more information on the NYSE Composite [Index](../i/index.md), you can visit the official NYSE website: [NYSE Composite Index](https://www.nyse.com/quote/index/NYA) \ No newline at end of file +For more information on the NYSE Composite [Index](../i/index_instrument.md), you can visit the official NYSE website: [NYSE Composite Index](https://www.nyse.com/quote/index/NYA) \ No newline at end of file diff --git a/en/pedia/n/nyse_trading_strategies.md b/en/pedia/n/nyse_trading_strategies.md index 688e5eae..f99786ad 100644 --- a/en/pedia/n/nyse_trading_strategies.md +++ b/en/pedia/n/nyse_trading_strategies.md @@ -23,7 +23,7 @@ In contrast to [value investing](../v/value_investing.md), [growth investing](.. [Mean reversion](../m/mean_reversion.md) strategies are based on the idea that stock prices [will](../w/will.md) tend to revert to their historical average over time. Traders using [mean reversion](../m/mean_reversion.md) techniques buy [stocks](../s/stock.md) that have significantly dropped, betting that prices [will](../w/will.md) bounce back, and sell [stocks](../s/stock.md) that have surged, expecting prices to decline to their mean levels. ### Momentum Trading -[Momentum trading](../m/momentum_trading.md) involves capitalizing on existing [market](../m/market.md) [momentum](../m/momentum.md). Traders identify [stocks](../s/stock.md) that have shown a strong recent performance and anticipate that the [trend](../t/trend.md) [will](../w/will.md) continue for some time. They use technical tools like [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) and [moving average crossovers](../m/moving_average_crossovers.md) to determine entry and exit points. +[Momentum trading](../m/momentum_trading.md) involves capitalizing on existing [market](../m/market.md) [momentum](../m/momentum.md). Traders identify [stocks](../s/stock.md) that have shown a strong recent performance and anticipate that the [trend](../t/trend.md) [will](../w/will.md) continue for some time. They use technical tools like [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) and [moving average crossovers](../m/moving_average_crossovers.md) to determine entry and exit points. ## Quantitative Strategies diff --git a/en/pedia/o/oex.md b/en/pedia/o/oex.md index df4cd8fa..9c95d58c 100644 --- a/en/pedia/o/oex.md +++ b/en/pedia/o/oex.md @@ -1,26 +1,26 @@ # OEX -The OEX, or Standard & Poor's 100 [Index](../i/index.md) (S&P 100), is a stock [market index](../m/market_index.md) created by Standard & Poor's (S&P), which measures the stock performance of 100 large companies [listed](../l/listed.md) on the US stock exchanges. The OEX, also known as the S&P 100, is a subset of the S&P 500, including the largest and most established US companies with [exchange](../e/exchange.md)-[listed](../l/listed.md) [options](../o/options.md), making it one of the key indices in the [financial markets](../f/financial_market.md). +The OEX, or Standard & Poor's 100 [Index](../i/index_instrument.md) (S&P 100), is a stock [market index](../m/market_index.md) created by Standard & Poor's (S&P), which measures the stock performance of 100 large companies [listed](../l/listed.md) on the US stock exchanges. The OEX, also known as the S&P 100, is a subset of the S&P 500, including the largest and most established US companies with [exchange](../e/exchange.md)-[listed](../l/listed.md) [options](../o/options.md), making it one of the key indices in the [financial markets](../f/financial_market.md). ## Overview ### Index Composition -The S&P 100 [index](../i/index.md) comprises 100 major blue-chip companies selected from the S&P 500. The selection is based on various criteria such as [market capitalization](../m/market_capitalization.md), [liquidity](../l/liquidity.md), and [industry](../i/industry.md) representation. The [index](../i/index.md) provides a broad snapshot of the performance of leading US companies, covering diverse sectors such as technology, [finance](../f/finance.md), healthcare, consumer services, and energy. +The S&P 100 [index](../i/index_instrument.md) comprises 100 major blue-chip companies selected from the S&P 500. The selection is based on various criteria such as [market capitalization](../m/market_capitalization.md), [liquidity](../l/liquidity.md), and [industry](../i/industry.md) representation. The [index](../i/index_instrument.md) provides a broad snapshot of the performance of leading US companies, covering diverse sectors such as technology, [finance](../f/finance.md), healthcare, consumer services, and energy. #### Characteristics: -- **[Market Capitalization](../m/market_capitalization.md):** The constituents are among the largest firms by [market capitalization](../m/market_capitalization.md), ensuring that the [index](../i/index.md) captures a significant portion of the [market](../m/market.md)'s total [value](../v/value.md). +- **[Market Capitalization](../m/market_capitalization.md):** The constituents are among the largest firms by [market capitalization](../m/market_capitalization.md), ensuring that the [index](../i/index_instrument.md) captures a significant portion of the [market](../m/market.md)'s total [value](../v/value.md). - **[Liquidity](../l/liquidity.md):** Selected [stocks](../s/stock.md) are required to have high [liquidity](../l/liquidity.md), which facilitates active trading and reliable [price discovery](../p/price_discovery.md). -- **[diversification](../d/diversification.md):** The [index](../i/index.md) covers a wide array of sectors, which helps in diversifying the [risk](../r/risk.md) for investors looking at the performance of the US [stock market](../s/stock_market.md). +- **[diversification](../d/diversification.md):** The [index](../i/index_instrument.md) covers a wide array of sectors, which helps in diversifying the [risk](../r/risk.md) for investors looking at the performance of the US [stock market](../s/stock_market.md). ### Calculation -The S&P 100 is calculated using the [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) method. Each stock in the [index](../i/index.md) is [weighted](../w/weighted.md) according to its total [market value](../m/market_value.md) relative to the total [market value](../m/market_value.md) of the other [stocks](../s/stock.md) in the [index](../i/index.md). This weighting mechanism ensures that larger companies have a more significant impact on the [index](../i/index.md)'s performance. +The S&P 100 is calculated using the [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) method. Each stock in the [index](../i/index_instrument.md) is [weighted](../w/weighted.md) according to its total [market value](../m/market_value.md) relative to the total [market value](../m/market_value.md) of the other [stocks](../s/stock.md) in the [index](../i/index_instrument.md). This weighting mechanism ensures that larger companies have a more significant impact on the [index](../i/index_instrument.md)'s performance. #### Formula: -The price of the S&P 100 [index](../i/index.md) is calculated using the following formula: +The price of the S&P 100 [index](../i/index_instrument.md) is calculated using the following formula: -\[ \text{[Index](../i/index.md) Level} = \frac{\sum_{i=1}^{100} (P_i \times Q_i)}{D} \] +\[ \text{[Index](../i/index_instrument.md) Level} = \frac{\sum_{i=1}^{100} (P_i \times Q_i)}{D} \] Where: - \(P_i\) is the price of stock \(i\) @@ -34,34 +34,34 @@ A notable feature of the OEX is that it is one of the most widely traded [option #### Types of OEX Options: - **American-Style [Options](../o/options.md):** Allow the holder to [exercise](../e/exercise.md) the option at any time before the [expiration date](../e/expiration_date.md). - **European-Style [Options](../o/options.md):** Can only be exercised on the [expiration date](../e/expiration_date.md). -- **[Index Options](../i/index_options.md):** Provide a way to [trade](../t/trade.md) based on the overall movement of the 100 [stocks](../s/stock.md) in the [index](../i/index.md) rather than individual [stocks](../s/stock.md). +- **[Index Options](../i/index_options.md):** Provide a way to [trade](../t/trade.md) based on the overall movement of the 100 [stocks](../s/stock.md) in the [index](../i/index_instrument.md) rather than individual [stocks](../s/stock.md). ## Historical Performance -The S&P 100 has historically been a [robust](../r/robust.md) [indicator](../i/indicator.md) of major movements in the US [economy](../e/economy.md) and has generally mirrored the performance of the broader S&P 500. Given its focus on [large-cap stocks](../l/large_cap_stocks.md), the [index](../i/index.md) tends to be less volatile than smaller-cap or sector-specific indices. +The S&P 100 has historically been a [robust](../r/robust.md) [indicator](../i/indicator.md) of major movements in the US [economy](../e/economy.md) and has generally mirrored the performance of the broader S&P 500. Given its focus on [large-cap stocks](../l/large_cap_stocks.md), the [index](../i/index_instrument.md) tends to be less volatile than smaller-cap or sector-specific indices. ### Major Milestones: - **1983:** The CBOE introduced [options](../o/options.md) on the OEX, which became an instrumental tool for [market](../m/market.md) participants. -- **2000s:** The [index](../i/index.md) saw significant changes as technology companies grew in [valuation](../v/valuation.md), leading to a heavier weight in tech firms. -- **2008-2009:** The [financial crisis](../f/financial_crisis.md) led to large swings in [index](../i/index.md) values, reflecting the economic turmoil. -- **2020-Present:** The COVID-19 pandemic brought unprecedented [volatility](../v/volatility.md), but the [index](../i/index.md) has largely recovered, supported by technology and healthcare sectors. +- **2000s:** The [index](../i/index_instrument.md) saw significant changes as technology companies grew in [valuation](../v/valuation.md), leading to a heavier weight in tech firms. +- **2008-2009:** The [financial crisis](../f/financial_crisis.md) led to large swings in [index](../i/index_instrument.md) values, reflecting the economic turmoil. +- **2020-Present:** The COVID-19 pandemic brought unprecedented [volatility](../v/volatility.md), but the [index](../i/index_instrument.md) has largely recovered, supported by technology and healthcare sectors. ## Role in Portfolio Management ### Benchmarking -The S&P 100 serves as an important [benchmark](../b/benchmark.md) for [fund](../f/fund.md) managers and investors. It is often compared against other indices like the S&P 500 or the Dow Jones Industrial Average to evaluate performance. Because the S&P 100 represents the leading companies, many investment funds [benchmark](../b/benchmark.md) their performance against this [index](../i/index.md). +The S&P 100 serves as an important [benchmark](../b/benchmark.md) for [fund](../f/fund.md) managers and investors. It is often compared against other indices like the S&P 500 or the Dow Jones Industrial Average to evaluate performance. Because the S&P 100 represents the leading companies, many investment funds [benchmark](../b/benchmark.md) their performance against this [index](../i/index_instrument.md). ### Hedging and Diversification -Investors use [options](../o/options.md) on the S&P 100 to [hedge](../h/hedge.md) their portfolios against [market](../m/market.md) risks. By buying [put options](../p/put_options.md), for example, they can protect against declines in the [market](../m/market.md). Conversely, call [options](../o/options.md) allow investors to benefit from upward movements in the [market](../m/market.md). Additionally, the [index](../i/index.md)'s broad [industry](../i/industry.md) coverage provides built-in [diversification](../d/diversification.md), which is crucial for managing [risk](../r/risk.md). +Investors use [options](../o/options.md) on the S&P 100 to [hedge](../h/hedge.md) their portfolios against [market](../m/market.md) risks. By buying [put options](../p/put_options.md), for example, they can protect against declines in the [market](../m/market.md). Conversely, call [options](../o/options.md) allow investors to benefit from upward movements in the [market](../m/market.md). Additionally, the [index](../i/index_instrument.md)'s broad [industry](../i/industry.md) coverage provides built-in [diversification](../d/diversification.md), which is crucial for managing [risk](../r/risk.md). ### Strategies Several trading and [investing](../i/investing.md) strategies revolve around the OEX, including: -- **[Index Arbitrage](../i/index_arbitrage.md):** This involves exploiting price differences between the [index](../i/index.md) and its [futures contracts](../f/futures_contracts.md). +- **[Index Arbitrage](../i/index_arbitrage.md):** This involves exploiting price differences between the [index](../i/index_instrument.md) and its [futures contracts](../f/futures_contracts.md). - **[Covered Call Writing](../c/covered_call_writing.md):** Selling call [options](../o/options.md) on [stocks](../s/stock.md) held within the S&P 100 to generate [income](../i/income.md). -- **Protective Puts:** Buying puts on the [index](../i/index.md) to [hedge](../h/hedge.md) against potential downturns in the [market](../m/market.md). +- **Protective Puts:** Buying puts on the [index](../i/index_instrument.md) to [hedge](../h/hedge.md) against potential downturns in the [market](../m/market.md). ## Comparisons with Other Indices @@ -77,7 +77,7 @@ The [NASDAQ](../n/nasdaq.md)-100 includes 100 largest non-financial companies [l ### Algo Trading -[Algorithmic trading](../a/accountability.md) has seen increased use in trading S&P 100 [options](../o/options.md) due to the [index](../i/index.md)'s [liquidity](../l/liquidity.md) and the [technical analysis](../t/technical_analysis.md) opportunities provided. Algorithms can be designed to exploit small price discrepancies, execute trades at optimal times, and manage [risk](../r/risk.md) more effectively. +[Algorithmic trading](../a/accountability.md) has seen increased use in trading S&P 100 [options](../o/options.md) due to the [index](../i/index_instrument.md)'s [liquidity](../l/liquidity.md) and the [technical analysis](../t/technical_analysis.md) opportunities provided. Algorithms can be designed to exploit small price discrepancies, execute trades at optimal times, and manage [risk](../r/risk.md) more effectively. #### Key Tools: - **[Quantitative Models](../q/quantitative_models.md):** Used for predicting price movements based on historical data. @@ -94,4 +94,4 @@ Financial technology (FinTech) has revolutionized trading of the S&P 100, making ## Conclusion -The OEX or S&P 100 [Index](../i/index.md) stands as a critical measure of the US [market](../m/market.md)'s health, showcasing its largest and most influential companies. Its role in [options](../o/options.md) trading further amplifies its significance, [offering](../o/offering.md) investors various tools for hedging, leveraging, and speculating. With the advent of [algorithmic trading](../a/accountability.md) and FinTech, the landscape of trading on the S&P 100 has become increasingly sophisticated, providing more opportunities and greater [efficiency](../e/efficiency.md). As markets evolve, the OEX remains a key barometer of economic vitality and a pivotal component in the world of [finance](../f/finance.md) and trading. \ No newline at end of file +The OEX or S&P 100 [Index](../i/index_instrument.md) stands as a critical measure of the US [market](../m/market.md)'s health, showcasing its largest and most influential companies. Its role in [options](../o/options.md) trading further amplifies its significance, [offering](../o/offering.md) investors various tools for hedging, leveraging, and speculating. With the advent of [algorithmic trading](../a/accountability.md) and FinTech, the landscape of trading on the S&P 100 has become increasingly sophisticated, providing more opportunities and greater [efficiency](../e/efficiency.md). As markets evolve, the OEX remains a key barometer of economic vitality and a pivotal component in the world of [finance](../f/finance.md) and trading. \ No newline at end of file diff --git a/en/pedia/o/off-balance-sheet_trading.md b/en/pedia/o/off-balance-sheet_trading.md index 2954a5be..bc21ea21 100644 --- a/en/pedia/o/off-balance-sheet_trading.md +++ b/en/pedia/o/off-balance-sheet_trading.md @@ -12,7 +12,7 @@ In the domain of [algorithmic trading](../a/algorithmic_trading.md), OBS items a ### 1. Derivatives -[Derivatives](../d/derivatives.md) are financial contracts whose [value](../v/value.md) is derived from an [underlying asset](../u/underlying_asset.md), [index](../i/index.md), or [interest rate](../i/interest_rate.md). Common types include [futures](../f/futures.md), [options](../o/options.md), and swaps. Given the speculative nature and high leveraged positions, they often stay off the [balance sheet](../b/balance_sheet.md) to limit the perception of [risk](../r/risk.md). +[Derivatives](../d/derivatives.md) are financial contracts whose [value](../v/value.md) is derived from an [underlying asset](../u/underlying_asset.md), [index](../i/index_instrument.md), or [interest rate](../i/interest_rate.md). Common types include [futures](../f/futures.md), [options](../o/options.md), and swaps. Given the speculative nature and high leveraged positions, they often stay off the [balance sheet](../b/balance_sheet.md) to limit the perception of [risk](../r/risk.md). #### Example: J.P. Morgan Chase & Co. Visit: [J.P. Morgan](https://www.jpmorganchase.com/) diff --git a/en/pedia/o/oil_etf.md b/en/pedia/o/oil_etf.md index 5514ec74..58713253 100644 --- a/en/pedia/o/oil_etf.md +++ b/en/pedia/o/oil_etf.md @@ -4,7 +4,7 @@ An Oil [Exchange](../e/exchange.md)-Traded [Fund](../f/fund.md) (ETF) is a type ## What is an Oil ETF? -An Oil ETF is an [investment vehicle](../i/investment_vehicle.md) that pools [money](../m/money.md) from [multiple](../m/multiple.md) investors to purchase oil assets. The objective is to mimic the [return](../r/return.md) of a particular oil-related [index](../i/index.md) or the price movements of [crude oil](../c/crude_oil.md). These ETFs [trade](../t/trade.md) on stock exchanges just like any regular stock, providing individual investors an easy avenue to [gain](../g/gain.md) exposure to the oil [market](../m/market.md). +An Oil ETF is an [investment vehicle](../i/investment_vehicle.md) that pools [money](../m/money.md) from [multiple](../m/multiple.md) investors to purchase oil assets. The objective is to mimic the [return](../r/return.md) of a particular oil-related [index](../i/index_instrument.md) or the price movements of [crude oil](../c/crude_oil.md). These ETFs [trade](../t/trade.md) on stock exchanges just like any regular stock, providing individual investors an easy avenue to [gain](../g/gain.md) exposure to the oil [market](../m/market.md). ## Types of Oil ETFs @@ -24,7 +24,7 @@ Equities-Based Oil ETFs invest in [stocks](../s/stock.md) of companies involved ### Leveraged and Inverse Oil ETFs -Leveraged Oil ETFs seek to deliver [multiple](../m/multiple.md) times the [return](../r/return.md) of the [underlying](../u/underlying.md) oil price or [index](../i/index.md). Inverse Oil ETFs aim to provide the opposite [return](../r/return.md). These types of ETFs are primarily used by traders looking to [capitalize](../c/capitalize.md) on short-term movements and are not suitable for long-term investment due to high [volatility](../v/volatility.md) and decay factors. Examples include ProShares Ultra [Bloomberg](../b/bloomberg.md) [Crude Oil](../c/crude_oil.md) (UCO) and ProShares UltraShort [Bloomberg](../b/bloomberg.md) [Crude Oil](../c/crude_oil.md) (SCO). +Leveraged Oil ETFs seek to deliver [multiple](../m/multiple.md) times the [return](../r/return.md) of the [underlying](../u/underlying.md) oil price or [index](../i/index_instrument.md). Inverse Oil ETFs aim to provide the opposite [return](../r/return.md). These types of ETFs are primarily used by traders looking to [capitalize](../c/capitalize.md) on short-term movements and are not suitable for long-term investment due to high [volatility](../v/volatility.md) and decay factors. Examples include ProShares Ultra [Bloomberg](../b/bloomberg.md) [Crude Oil](../c/crude_oil.md) (UCO) and ProShares UltraShort [Bloomberg](../b/bloomberg.md) [Crude Oil](../c/crude_oil.md) (SCO). ## How to Invest in Oil ETFs @@ -64,7 +64,7 @@ Oil [futures](../f/futures.md) ETFs are susceptible to [contango](../c/contango. ### Tracking Error -ETFs may not perfectly track their [underlying](../u/underlying.md) [index](../i/index.md) or [commodity](../c/commodity.md) due to management fees, [transaction costs](../t/transaction_costs.md), and other factors, resulting in tracking errors. +ETFs may not perfectly track their [underlying](../u/underlying.md) [index](../i/index_instrument.md) or [commodity](../c/commodity.md) due to management fees, [transaction costs](../t/transaction_costs.md), and other factors, resulting in tracking errors. ### Leverage Risks @@ -86,13 +86,13 @@ More information can be found on their [official website](https://www.ssga.com/u ### ProShares Ultra Bloomberg Crude Oil (UCO) -UCO seeks to provide daily returns that correspond to twice the daily performance of the [Bloomberg](../b/bloomberg.md) [Commodity](../c/commodity.md) Balanced WTI [Crude Oil](../c/crude_oil.md) [Index](../i/index.md). It’s a [leveraged ETF](../l/leveraged_etf.md) and is more suitable for [short-term trading](../s/short-term_trading.md). +UCO seeks to provide daily returns that correspond to twice the daily performance of the [Bloomberg](../b/bloomberg.md) [Commodity](../c/commodity.md) Balanced WTI [Crude Oil](../c/crude_oil.md) [Index](../i/index_instrument.md). It’s a [leveraged ETF](../l/leveraged_etf.md) and is more suitable for [short-term trading](../s/short-term_trading.md). More information can be found on their [official website](https://www.proshares.com/etf/uco). ### Invesco DB Oil Fund (DBO) -DBO tracks the DBIQ Optimum [Yield](../y/yield.md) [Crude Oil](../c/crude_oil.md) [Index](../i/index.md) [Excess Return](../e/excess_return.md)™, which is composed of [futures contracts](../f/futures_contracts.md) on light sweet [crude oil](../c/crude_oil.md) (WTI). It aims to provide exposure to [crude oil](../c/crude_oil.md) while minimizing the negative impact of [contango](../c/contango.md) conditions. +DBO tracks the DBIQ Optimum [Yield](../y/yield.md) [Crude Oil](../c/crude_oil.md) [Index](../i/index_instrument.md) [Excess Return](../e/excess_return.md)™, which is composed of [futures contracts](../f/futures_contracts.md) on light sweet [crude oil](../c/crude_oil.md) (WTI). It aims to provide exposure to [crude oil](../c/crude_oil.md) while minimizing the negative impact of [contango](../c/contango.md) conditions. More information can be found on their [official website](https://www.invesco.com/portal/site/us/etfs/). diff --git a/en/pedia/o/oil_price_forecasting.md b/en/pedia/o/oil_price_forecasting.md index 16b9a0d3..1ea77af7 100644 --- a/en/pedia/o/oil_price_forecasting.md +++ b/en/pedia/o/oil_price_forecasting.md @@ -54,7 +54,7 @@ Improvements in [efficiency](../e/efficiency.md) and alternative energy sources [Technical analysis](../t/technical_analysis.md) uses historical price data and trading volumes to predict future price movements. [Chart patterns](../c/chart_patterns.md), indicators, and other tools are utilized. - **Moving Averages:** Simple Moving Average (SMA) and Exponential Moving Average (EMA) are commonly used to identify trends. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** Used to assess whether a [commodity](../c/commodity.md) is [overbought](../o/overbought.md) or [oversold](../o/oversold.md). +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** Used to assess whether a [commodity](../c/commodity.md) is [overbought](../o/overbought.md) or [oversold](../o/oversold.md). ### Quantitative Models diff --git a/en/pedia/o/oil_price_to_natural_gas_ratio.md b/en/pedia/o/oil_price_to_natural_gas_ratio.md index 1e8996f4..388c147f 100644 --- a/en/pedia/o/oil_price_to_natural_gas_ratio.md +++ b/en/pedia/o/oil_price_to_natural_gas_ratio.md @@ -67,7 +67,7 @@ Oil-to-Natural-Gas Ratio = Price of Oil per Barrel (USD) / Price of Natural Gas ### Graphical Representation -Analysts often represent this ratio graphically over time to identify trends, anomalies, and potential investment opportunities. Tools like Moving Averages, [Bollinger Bands](../b/bollinger_band.md), and [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) can be applied to the ratio for in-depth [technical analysis](../t/technical_analysis.md). +Analysts often represent this ratio graphically over time to identify trends, anomalies, and potential investment opportunities. Tools like Moving Averages, [Bollinger Bands](../b/bollinger_band.md), and [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) can be applied to the ratio for in-depth [technical analysis](../t/technical_analysis.md). ### Case Studies diff --git a/en/pedia/o/oil_trading_strategies.md b/en/pedia/o/oil_trading_strategies.md index 93c6d800..dcaf8106 100644 --- a/en/pedia/o/oil_trading_strategies.md +++ b/en/pedia/o/oil_trading_strategies.md @@ -27,7 +27,7 @@ Oil trading is a complex and multifaceted endeavor that involves the buying and - **Price Charts**: Line, bar, and [candlestick](../c/candlestick.md) charts visualize oil price movements over different timeframes. - **Moving Averages**: These smooth out price data to help identify the direction of the [trend](../t/trend.md). Common types include Simple Moving Average (SMA) and Exponential Moving Average (EMA). -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: A [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements, indicating whether an [asset](../a/asset.md) is [overbought](../o/overbought.md) or [oversold](../o/oversold.md). +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: A [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements, indicating whether an [asset](../a/asset.md) is [overbought](../o/overbought.md) or [oversold](../o/oversold.md). - **[Bollinger Bands](../b/bollinger_bands.md)**: These consist of a middle band (SMA) and two outer bands, which can indicate [volatility](../v/volatility.md) and potential price reversals. - **[Fibonacci Retracement](../f/fibonacci_retracement.md) Levels**: Used to identify potential [support and resistance](../s/support_and_resistance.md) levels based on the Fibonacci sequence. diff --git a/en/pedia/o/old-age_survivors_disability_insurance_(oasdi)_program.md b/en/pedia/o/old-age_survivors_disability_insurance_(oasdi)_program.md index dbf68ae4..e46e857a 100644 --- a/en/pedia/o/old-age_survivors_disability_insurance_(oasdi)_program.md +++ b/en/pedia/o/old-age_survivors_disability_insurance_(oasdi)_program.md @@ -41,7 +41,7 @@ For example, in 2023: ### Cost-of-Living Adjustments (COLA) -OASDI benefits are adjusted annually based on changes in the Consumer Price [Index](../i/index.md) for Urban Wage Earners and Clerical Workers (CPI-W) to ensure that the [purchasing power](../p/purchasing_power.md) of benefits is maintained over time. +OASDI benefits are adjusted annually based on changes in the Consumer Price [Index](../i/index_instrument.md) for Urban Wage Earners and Clerical Workers (CPI-W) to ensure that the [purchasing power](../p/purchasing_power.md) of benefits is maintained over time. ## Claiming Strategies diff --git a/en/pedia/o/oligopoly.md b/en/pedia/o/oligopoly.md index 2500814a..41a3ca4f 100644 --- a/en/pedia/o/oligopoly.md +++ b/en/pedia/o/oligopoly.md @@ -75,6 +75,6 @@ Understanding oligopolistic [market](../m/market.md) structures is critical for - **[Market](../m/market.md) Analysis**: Financial analysts often study the strategic behavior and [market](../m/market.md) positioning of firms in oligopolies to forecast future performance and [market](../m/market.md) trends. - **Investment Strategies**: Investment decisions in such markets often consider the impact of potential regulatory changes, competitive dynamics, and [market share](../m/market_share.md) stability. -Investors can use tools such as [market](../m/market.md) concentration ratios and the Herfindahl-Hirschman [Index](../i/index.md) (HHI) to gauge the level of competition within a [market](../m/market.md). +Investors can use tools such as [market](../m/market.md) concentration ratios and the Herfindahl-Hirschman [Index](../i/index_instrument.md) (HHI) to gauge the level of competition within a [market](../m/market.md). Understanding and analyzing oligopolies are fundamental for making informed decisions, whether one is engaging in algot trading, [financial analysis](../f/financial_analysis.md), or broader [financial planning](../f/financial_planning.md). These [market](../m/market.md) structures, with their unique characteristics and behaviors, [offer](../o/offer.md) both opportunities and challenges to those involved in [financial markets](../f/financial_market.md) and trading. \ No newline at end of file diff --git a/en/pedia/o/one_night_stand_investment.md b/en/pedia/o/one_night_stand_investment.md index ab5cad55..faec55aa 100644 --- a/en/pedia/o/one_night_stand_investment.md +++ b/en/pedia/o/one_night_stand_investment.md @@ -52,7 +52,7 @@ The [volatility](../v/volatility.md) and quick decision-making required for ONS ### Technical Analysis -[Technical analysis](../t/technical_analysis.md) is the backbone of ONS Investment strategies. Traders utilize various [technical indicators](../t/technical_indicator.md) such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), MACD, [Bollinger Bands](../b/bollinger_band.md), and [Fibonacci retracement](../f/fibonacci_retracement.md) levels to make informed decisions about entry and exit points. +[Technical analysis](../t/technical_analysis.md) is the backbone of ONS Investment strategies. Traders utilize various [technical indicators](../t/technical_indicator.md) such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), MACD, [Bollinger Bands](../b/bollinger_band.md), and [Fibonacci retracement](../f/fibonacci_retracement.md) levels to make informed decisions about entry and exit points. ### Algorithmic Trading diff --git a/en/pedia/o/open-end_fund.md b/en/pedia/o/open-end_fund.md index 3907d46d..8353df79 100644 --- a/en/pedia/o/open-end_fund.md +++ b/en/pedia/o/open-end_fund.md @@ -33,7 +33,7 @@ The total assets of an [open](../o/open.md)-end [fund](../f/fund.md) include all Balanced funds invest in a diversified portfolio of equities and fixed-[income](../i/income.md) securities. Their objective is to provide a balanced mix of [income](../i/income.md) and [capital](../c/capital.md) growth. ### 5. Index Funds -[Index](../i/index.md) funds aim to replicate the performance of a particular [market index](../m/market_index.md), such as the S&P 500. These funds generally have lower [expense](../e/expense.md) ratios since they follow a passive [investment strategy](../i/investment_strategy.md). +[Index](../i/index_instrument.md) funds aim to replicate the performance of a particular [market index](../m/market_index.md), such as the S&P 500. These funds generally have lower [expense](../e/expense.md) ratios since they follow a passive [investment strategy](../i/investment_strategy.md). ## Advantages and Disadvantages ### Advantages: @@ -52,7 +52,7 @@ Balanced funds invest in a diversified portfolio of equities and fixed-[income]( ## Prominent Global Examples ### Vanguard Group -The Vanguard Group is one of the largest providers of mutual funds and is known for its low-cost [index](../i/index.md) funds. They [offer](../o/offer.md) a wide [range](../r/range.md) of [open](../o/open.md)-end funds catering to different investment strategies. Visit their website for more information: [Vanguard](https://www.vanguard.com/) +The Vanguard Group is one of the largest providers of mutual funds and is known for its low-cost [index](../i/index_instrument.md) funds. They [offer](../o/offer.md) a wide [range](../r/range.md) of [open](../o/open.md)-end funds catering to different investment strategies. Visit their website for more information: [Vanguard](https://www.vanguard.com/) ### Fidelity Investments [Fidelity Investments](../f/fidelity_investments.md) is renowned for its [mutual fund](../m/mutual_fund.md) offerings and professional management services. They [offer](../o/offer.md) a variety of [open](../o/open.md)-end funds in different [asset](../a/asset.md) categories. More details can be found here: [Fidelity](https://www.fidelity.com/) diff --git a/en/pedia/o/open-end_management_company.md b/en/pedia/o/open-end_management_company.md index e3add648..a75e9f90 100644 --- a/en/pedia/o/open-end_management_company.md +++ b/en/pedia/o/open-end_management_company.md @@ -18,7 +18,7 @@ An [open](../o/open.md)-end management company, commonly referred to as a [mutua 2. **[Bond](../b/bond.md) Funds**: Focus on fixed-[income](../i/income.md) securities, seeking regular [interest](../i/interest.md) [income](../i/income.md). 3. **[Money Market](../m/money_market.md) Funds**: Invest in short-term, high-quality investments and aim to maintain a stable NAV of $1 per share. 4. **Balanced Funds**: Combine [stocks](../s/stock.md) and bonds to balance [risk](../r/risk.md) and [return](../r/return.md). -5. **[Index](../i/index.md) Funds**: Track a specific [market index](../m/market_index.md), such as the S&P 500. +5. **[Index](../i/index_instrument.md) Funds**: Track a specific [market index](../m/market_index.md), such as the S&P 500. 6. **Sector Funds**: Focus on a specific [industry](../i/industry.md) or sector, such as technology or healthcare. ### Investment Process @@ -53,7 +53,7 @@ In the United States, [open](../o/open.md)-end management companies are regulate ### Leading Companies Some of the largest and most well-known [open](../o/open.md)-end management companies include: -- **Vanguard Group**: Known for its low-cost [index](../i/index.md) funds [Vanguard](https://www.vanguard.com/) +- **Vanguard Group**: Known for its low-cost [index](../i/index_instrument.md) funds [Vanguard](https://www.vanguard.com/) - **[Fidelity Investments](../f/fidelity_investments.md)**: Offers a wide [range](../r/range.md) of funds and investment services [Fidelity Investments](https://www.fidelity.com/) - **BlackRock**: Manages a variety of mutual funds and ETFs under its [iShares](../i/ishares.md) brand [BlackRock](https://www.blackrock.com/) - **T. Rowe Price**: Offers a selection of actively managed funds [T. Rowe Price](https://www.troweprice.com/) diff --git a/en/pedia/o/option_chain.md b/en/pedia/o/option_chain.md index 505b12f1..4cf21a9e 100644 --- a/en/pedia/o/option_chain.md +++ b/en/pedia/o/option_chain.md @@ -5,7 +5,7 @@ An Option Chain, also known as an Option Matrix, is a structured listing of all ## Components of an Option Chain ### Underlying Asset -The [underlying asset](../u/underlying_asset.md) is the [financial instrument](../f/financial_instrument.md), such as a stock, [index](../i/index.md), [commodity](../c/commodity.md), or [currency](../c/currency.md), on which the [options](../o/options.md) are based. For instance, if you are looking at an option chain for Apple Inc. (AAPL), then the [underlying asset](../u/underlying_asset.md) is Apple’s stock. +The [underlying asset](../u/underlying_asset.md) is the [financial instrument](../f/financial_instrument.md), such as a stock, [index](../i/index_instrument.md), [commodity](../c/commodity.md), or [currency](../c/currency.md), on which the [options](../o/options.md) are based. For instance, if you are looking at an option chain for Apple Inc. (AAPL), then the [underlying asset](../u/underlying_asset.md) is Apple’s stock. ### Expiration Dates The [expiration date](../e/expiration_date.md) is the last date on which the option can be exercised. [Options](../o/options.md) can have various expiration intervals, such as daily, weekly, monthly, or even quarterly. The option chain typically lists different expiration dates, each containing [multiple](../m/multiple.md) contracts with different strike prices. diff --git a/en/pedia/o/option_class.md b/en/pedia/o/option_class.md index 238e58f4..8e4601ba 100644 --- a/en/pedia/o/option_class.md +++ b/en/pedia/o/option_class.md @@ -57,7 +57,7 @@ Understanding these factors allows traders to predict and react to price movemen ### Index Options -[Index options](../i/index_options.md) are based on [stock market](../s/stock_market.md) indices rather than individual [stocks](../s/stock.md). Examples include [options](../o/options.md) on the S&P 500 [Index](../i/index.md) (SPX) and the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md) (NDX). +[Index options](../i/index_options.md) are based on [stock market](../s/stock_market.md) indices rather than individual [stocks](../s/stock.md). Examples include [options](../o/options.md) on the S&P 500 [Index](../i/index_instrument.md) (SPX) and the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md) (NDX). ### Commodity Options diff --git a/en/pedia/o/option_cycle.md b/en/pedia/o/option_cycle.md index e1ed7e8d..43085b89 100644 --- a/en/pedia/o/option_cycle.md +++ b/en/pedia/o/option_cycle.md @@ -1,6 +1,6 @@ # Option Cycle -[Options](../o/options.md) are financial instruments that give the buyer the right, but not the obligation, to buy or sell an [underlying asset](../u/underlying_asset.md) at a predetermined price within a specified time period. An essential concept within the realm of [options](../o/options.md) trading is the "Option Cycle," which refers to the standardized set of expiration dates available for [options](../o/options.md) on a given stock or [index](../i/index.md). Understanding the option cycle is crucial for traders and investors as it significantly affects the strategy selection, [premium](../p/premium.md) calculation, and [risk management](../r/risk_management.md). +[Options](../o/options.md) are financial instruments that give the buyer the right, but not the obligation, to buy or sell an [underlying asset](../u/underlying_asset.md) at a predetermined price within a specified time period. An essential concept within the realm of [options](../o/options.md) trading is the "Option Cycle," which refers to the standardized set of expiration dates available for [options](../o/options.md) on a given stock or [index](../i/index_instrument.md). Understanding the option cycle is crucial for traders and investors as it significantly affects the strategy selection, [premium](../p/premium.md) calculation, and [risk management](../r/risk_management.md). ## Types of Option Cycles diff --git a/en/pedia/o/options_implied_volatility.md b/en/pedia/o/options_implied_volatility.md index 21dda394..1616cd74 100644 --- a/en/pedia/o/options_implied_volatility.md +++ b/en/pedia/o/options_implied_volatility.md @@ -45,9 +45,9 @@ By inputting these values into the [Black-Scholes model](../b/black-scholes_mode ## Implied Volatility Indexes (VIX) -The VIX, or [Volatility](../v/volatility.md) [Index](../i/index.md), often referred to as the "Fear [Index](../i/index.md)," is a measure of the [stock market](../s/stock_market.md)'s expected [volatility](../v/volatility.md) over the next 30 days, derived from S&P 500 [index options](../i/index_options.md). Introduced by the Chicago Board [Options](../o/options.md) [Exchange](../e/exchange.md) (CBOE) in 1993, it is a key measure of [market sentiment](../m/market_sentiment.md). +The VIX, or [Volatility](../v/volatility.md) [Index](../i/index_instrument.md), often referred to as the "Fear [Index](../i/index_instrument.md)," is a measure of the [stock market](../s/stock_market.md)'s expected [volatility](../v/volatility.md) over the next 30 days, derived from S&P 500 [index options](../i/index_options.md). Introduced by the Chicago Board [Options](../o/options.md) [Exchange](../e/exchange.md) (CBOE) in 1993, it is a key measure of [market sentiment](../m/market_sentiment.md). -The VIX is calculated using the implied volatilities of a wide [range](../r/range.md) of S&P 500 [index options](../i/index_options.md). Rather than relying on a single option or a single [strike price](../s/strike_price.md), it uses the IV of many puts and calls near the current [index](../i/index.md) level. +The VIX is calculated using the implied volatilities of a wide [range](../r/range.md) of S&P 500 [index options](../i/index_options.md). Rather than relying on a single option or a single [strike price](../s/strike_price.md), it uses the IV of many puts and calls near the current [index](../i/index_instrument.md) level. Understanding the VIX can help traders: diff --git a/en/pedia/o/options_market_sentiment.md b/en/pedia/o/options_market_sentiment.md index 4bcc76ad..9e939079 100644 --- a/en/pedia/o/options_market_sentiment.md +++ b/en/pedia/o/options_market_sentiment.md @@ -18,7 +18,7 @@ The [put-call ratio](../p/put-call_ratio.md) is a widely-used [indicator](../i/i Implied [volatility](../v/volatility.md) (IV) is a metric that reflects the [market](../m/market.md)'s expectation of the future [volatility](../v/volatility.md) of an [asset](../a/asset.md)'s price. Higher implied [volatility](../v/volatility.md) suggests that the [market](../m/market.md) expects significant price movements (often associated with [uncertainty](../u/uncertainty_in_trading.md) or upcoming events), whereas lower implied [volatility](../v/volatility.md) suggests a more stable outlook. - **Sources:** - - **CBOE [Volatility](../v/volatility.md) [Index](../i/index.md) (VIX):** Often referred to as the "fear gauge," the VIX measures the implied [volatility](../v/volatility.md) of S&P 500 [index options](../i/index_options.md) and is a popular [indicator](../i/indicator.md) of [market sentiment](../m/market_sentiment.md). + - **CBOE [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX):** Often referred to as the "fear gauge," the VIX measures the implied [volatility](../v/volatility.md) of S&P 500 [index options](../i/index_options.md) and is a popular [indicator](../i/indicator.md) of [market sentiment](../m/market_sentiment.md). - [CBOE VIX Information](https://www.cboe.com/tradable_products/vix/) ### 3. Open Interest @@ -33,7 +33,7 @@ Implied [volatility](../v/volatility.md) (IV) is a metric that reflects the [mar The skew, or [volatility skew](../v/volatility_skew.md), refers to the difference in implied [volatility](../v/volatility.md) between out-of-the-[money](../m/money.md) (OTM) puts, at-the-[money](../m/money.md) (ATM) [options](../o/options.md), and OTM calls. The skew provides insights into the relative [demand](../d/demand.md) for protection against downside risks ([put options](../p/put_options.md)) compared to [upside potential](../u/upside_potential_in_trading.md) (call [options](../o/options.md)). -- **Skew [Index](../i/index.md):** +- **Skew [Index](../i/index_instrument.md):** - Measures the implied [volatility](../v/volatility.md) of OTM puts relative to OTM calls. - A higher skew indicates higher [demand](../d/demand.md) for downside protection, often seen in bearish markets. @@ -54,7 +54,7 @@ A [volatility smile](../v/volatility_smile.md) is a graphical representation of Certain financial firms and institutions develop sentiment indices that aggregate various data points to provide a comprehensive view of [market sentiment](../m/market_sentiment.md). -- **CNN Fear & Greed [Index](../i/index.md):** +- **CNN Fear & Greed [Index](../i/index_instrument.md):** - Combines seven different indicators, including [market](../m/market.md) [momentum](../m/momentum.md), stock price strength, stock price breadth, put and call [options](../o/options.md), [market](../m/market.md) [volatility](../v/volatility.md), [junk bond](../j/junk_bond.md) [demand](../d/demand.md), and [safe haven](../s/safe_haven.md) [demand](../d/demand.md). - [CNN Fear & Greed Index](https://money.cnn.com/data/fear-and-greed/) diff --git a/en/pedia/o/options_market_volatility.md b/en/pedia/o/options_market_volatility.md index 44a16c79..35b183e4 100644 --- a/en/pedia/o/options_market_volatility.md +++ b/en/pedia/o/options_market_volatility.md @@ -40,7 +40,7 @@ An extension of the ARCH model, GARCH incorporates more past periods (lags) in t ### 2.5 Implied Volatility Index (VIX) -Often termed the "fear [index](../i/index.md)," the VIX measures implied [volatility](../v/volatility.md) on the S&P 500 [index options](../i/index_options.md). It provides a gauge of [market sentiment](../m/market_sentiment.md) and expected price fluctuations for the [index](../i/index.md). +Often termed the "fear [index](../i/index_instrument.md)," the VIX measures implied [volatility](../v/volatility.md) on the S&P 500 [index options](../i/index_options.md). It provides a gauge of [market sentiment](../m/market_sentiment.md) and expected price fluctuations for the [index](../i/index_instrument.md). ## 3. Practical Implications in Options Trading diff --git a/en/pedia/o/order_type_strategies.md b/en/pedia/o/order_type_strategies.md index d9395eeb..ecd1475a 100644 --- a/en/pedia/o/order_type_strategies.md +++ b/en/pedia/o/order_type_strategies.md @@ -95,10 +95,10 @@ An All or None [order](../o/order.md) stipulates that the [order](../o/order.md) #### 12. Pegged Orders -Pegged orders automatically adjust to track an [index](../i/index.md), [benchmark](../b/benchmark.md), or specific [market price](../m/market_price.md). There are various types of pegged orders, such as primary peg orders and midpoint peg orders, each with distinct mechanisms for aligning prices. +Pegged orders automatically adjust to track an [index](../i/index_instrument.md), [benchmark](../b/benchmark.md), or specific [market price](../m/market_price.md). There are various types of pegged orders, such as primary peg orders and midpoint peg orders, each with distinct mechanisms for aligning prices. **Strategic Use:** -- **[Index](../i/index.md) Tracking:** Ideal for algorithmic strategies aiming to mimic the performance of an [index](../i/index.md) or [benchmark](../b/benchmark.md). +- **[Index](../i/index_instrument.md) Tracking:** Ideal for algorithmic strategies aiming to mimic the performance of an [index](../i/index_instrument.md) or [benchmark](../b/benchmark.md). - **Competitive Pricing:** Ensures that the [order](../o/order.md) price stays competitive in dynamic markets. #### 13. Auction Orders diff --git a/en/pedia/o/orderly_market.md b/en/pedia/o/orderly_market.md index 0ba21c9c..c855ccd1 100644 --- a/en/pedia/o/orderly_market.md +++ b/en/pedia/o/orderly_market.md @@ -32,7 +32,7 @@ An orderly [market](../m/market.md) refers to a financial [market](../m/market.m ## Examples of Regulatory Measures -- **Circuit Breakers**: These are mechanisms that temporarily halt trading on an [exchange](../e/exchange.md) to prevent excessive [volatility](../v/volatility.md). For instance, the New York Stock [Exchange](../e/exchange.md) (NYSE) has set levels at which trading is paused for a cooling-off period once a significant [index](../i/index.md), like the S&P 500, drops by a certain percentage. +- **Circuit Breakers**: These are mechanisms that temporarily halt trading on an [exchange](../e/exchange.md) to prevent excessive [volatility](../v/volatility.md). For instance, the New York Stock [Exchange](../e/exchange.md) (NYSE) has set levels at which trading is paused for a cooling-off period once a significant [index](../i/index_instrument.md), like the S&P 500, drops by a certain percentage. - **[Margin](../m/margin.md) Requirements**: Setting [margin](../m/margin.md) requirements helps prevent excessive [leverage](../l/leverage.md), which can lead to [market](../m/market.md) instability. For example, the Federal Reserve in the U.S. can alter [margin](../m/margin.md) requirements to control borrowing levels. diff --git a/en/pedia/o/oscillator_of_a_moving_average_(osma).md b/en/pedia/o/oscillator_of_a_moving_average_(osma).md index a4443fa5..c8d395f0 100644 --- a/en/pedia/o/oscillator_of_a_moving_average_(osma).md +++ b/en/pedia/o/oscillator_of_a_moving_average_(osma).md @@ -72,7 +72,7 @@ By analyzing the OsMA in conjunction with other indicators, traders can enhance 1. **Simplicity**: The OsMA is straightforward to understand and implement, making it accessible for novice traders. 2. **Adaptability**: It can be applied to various financial instruments, including [stocks](../s/stock.md), forex, and commodities. -3. **Combining Power**: When used with other indicators like [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or [Bollinger Bands](../b/bollinger_band.md), it can provide more comprehensive [market](../m/market.md) insights. +3. **Combining Power**: When used with other indicators like [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or [Bollinger Bands](../b/bollinger_band.md), it can provide more comprehensive [market](../m/market.md) insights. ### Limitations diff --git a/en/pedia/o/oslo_stock_exchange_(ose).md b/en/pedia/o/oslo_stock_exchange_(ose).md index 8a56c7f6..478bcab1 100644 --- a/en/pedia/o/oslo_stock_exchange_(ose).md +++ b/en/pedia/o/oslo_stock_exchange_(ose).md @@ -29,8 +29,8 @@ OSE operates Monday through Friday, with specific trading hours: Several key indices track the performance of securities [listed](../l/listed.md) on OSE: -- **OSEBX**: The Oslo Børs [Benchmark](../b/benchmark.md) [Index](../i/index.md), which includes the most [liquid](../l/liquid.md) [stocks](../s/stock.md). -- **OSEFX**: The Oslo Børs Financial [Index](../i/index.md), focusing on [financial sector](../f/financial_sector.md) [stocks](../s/stock.md). +- **OSEBX**: The Oslo Børs [Benchmark](../b/benchmark.md) [Index](../i/index_instrument.md), which includes the most [liquid](../l/liquid.md) [stocks](../s/stock.md). +- **OSEFX**: The Oslo Børs Financial [Index](../i/index_instrument.md), focusing on [financial sector](../f/financial_sector.md) [stocks](../s/stock.md). - **OBX**: Comprises the 25 most traded [stocks](../s/stock.md) on the [exchange](../e/exchange.md). ### Regulatory Framework diff --git a/en/pedia/o/oslo_stock_exchange_(osl)_.ol.md b/en/pedia/o/oslo_stock_exchange_(osl)_.ol.md index 198c5153..26761cd0 100644 --- a/en/pedia/o/oslo_stock_exchange_(osl)_.ol.md +++ b/en/pedia/o/oslo_stock_exchange_(osl)_.ol.md @@ -37,12 +37,12 @@ For companies to be [listed](../l/listed.md) on the OSL, they must meet specific - **[Credit Rating](../c/credit_rating.md):** Must be investment-grade for certain lists. ## Indices -The Oslo Børs operates several indices to measure the performance of its markets, the most notable being the OBX [Index](../i/index.md). The OBX [Index](../i/index.md) is a free [float](../f/float.md) adjusted and [liquidity](../l/liquidity.md) screened [index](../i/index.md) consisting of the 25 most traded [stocks](../s/stock.md) on the Oslo Stock [Exchange](../e/exchange.md). +The Oslo Børs operates several indices to measure the performance of its markets, the most notable being the OBX [Index](../i/index_instrument.md). The OBX [Index](../i/index_instrument.md) is a free [float](../f/float.md) adjusted and [liquidity](../l/liquidity.md) screened [index](../i/index_instrument.md) consisting of the 25 most traded [stocks](../s/stock.md) on the Oslo Stock [Exchange](../e/exchange.md). ### Key Indices -- **OBX [Index](../i/index.md):** Tracks the top 25 [stocks](../s/stock.md). -- **OSEBX:** Oslo Stock [Exchange](../e/exchange.md) [Benchmark](../b/benchmark.md) [Index](../i/index.md), representing all [listed](../l/listed.md) [shares](../s/shares.md). -- **OSEFX:** Oslo Stock [Exchange](../e/exchange.md) Financial [Index](../i/index.md). +- **OBX [Index](../i/index_instrument.md):** Tracks the top 25 [stocks](../s/stock.md). +- **OSEBX:** Oslo Stock [Exchange](../e/exchange.md) [Benchmark](../b/benchmark.md) [Index](../i/index_instrument.md), representing all [listed](../l/listed.md) [shares](../s/shares.md). +- **OSEFX:** Oslo Stock [Exchange](../e/exchange.md) Financial [Index](../i/index_instrument.md). ## Technology and Innovations The Oslo Stock [Exchange](../e/exchange.md) has continually upgraded its technological [infrastructure](../i/infrastructure.md) to support high-frequency trading (HFT) and other advanced trading activities. The [exchange](../e/exchange.md) uses the Optiq [trading platform](../t/trading_platform.md), which it [shares](../s/shares.md) with other [Euronext](../e/euronext.md) exchanges, to provide high-performance trading services. diff --git a/en/pedia/o/outperform.md b/en/pedia/o/outperform.md index 3176fca8..8bb05b1d 100644 --- a/en/pedia/o/outperform.md +++ b/en/pedia/o/outperform.md @@ -1,6 +1,6 @@ # Outperform -**Outperform** is a term used in [financial markets](../f/financial_market.md) to indicate that a particular [asset](../a/asset.md), investment, or [market segment](../m/market_segment.md) is expected to perform better than a [benchmark](../b/benchmark.md) [index](../i/index.md) or [market](../m/market.md) average. Financial analysts and investment firms often use this term to convey their expectations about a stock, [bond](../b/bond.md), or [mutual fund](../m/mutual_fund.md)'s future performance compared to a broader [market index](../m/market_index.md), such as the S&P 500 or the Russell 2000. +**Outperform** is a term used in [financial markets](../f/financial_market.md) to indicate that a particular [asset](../a/asset.md), investment, or [market segment](../m/market_segment.md) is expected to perform better than a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) or [market](../m/market.md) average. Financial analysts and investment firms often use this term to convey their expectations about a stock, [bond](../b/bond.md), or [mutual fund](../m/mutual_fund.md)'s future performance compared to a broader [market index](../m/market_index.md), such as the S&P 500 or the Russell 2000. Outperform is also one of the several ratings that analysts use to give investment recommendations. Other common ratings include "[Underperform](../u/underperform.md)," "[Neutral](../n/neutral.md)," "Buy," and "Sell." The term is particularly relevant in the context of [equity research](../e/equity_research.md), [portfolio management](../p/par.md), and [financial analysis](../f/financial_analysis.md). @@ -8,11 +8,11 @@ Outperform is also one of the several ratings that analysts use to give investme ### Benchmark Index -A *[benchmark](../b/benchmark.md) [index](../i/index.md)* is a standard against which the performance of a [security](../s/security.md), [mutual fund](../m/mutual_fund.md), or [investment manager](../i/investment_manager.md) can be measured. Common [benchmark](../b/benchmark.md) indices include the S&P 500, Dow Jones Industrial Average, and [NASDAQ](../n/nasdaq.md) Composite for U.S. equities, as well as the MSCI World [Index](../i/index.md) for [global equities](../g/global_equities.md). +A *[benchmark](../b/benchmark.md) [index](../i/index_instrument.md)* is a standard against which the performance of a [security](../s/security.md), [mutual fund](../m/mutual_fund.md), or [investment manager](../i/investment_manager.md) can be measured. Common [benchmark](../b/benchmark.md) indices include the S&P 500, Dow Jones Industrial Average, and [NASDAQ](../n/nasdaq.md) Composite for U.S. equities, as well as the MSCI World [Index](../i/index_instrument.md) for [global equities](../g/global_equities.md). ### Analyst Ratings -Financial analysts provide ratings to help investors make informed decisions. These ratings often include terms like "Outperform," "[Underperform](../u/underperform.md)," and "[Neutral](../n/neutral.md)." An "Outperform" [rating](../r/rating.md) suggests that the analyst expects the stock to do better than the overall [market](../m/market.md) or a specific [index](../i/index.md). +Financial analysts provide ratings to help investors make informed decisions. These ratings often include terms like "Outperform," "[Underperform](../u/underperform.md)," and "[Neutral](../n/neutral.md)." An "Outperform" [rating](../r/rating.md) suggests that the analyst expects the stock to do better than the overall [market](../m/market.md) or a specific [index](../i/index_instrument.md). ### Risk and Return @@ -40,7 +40,7 @@ Tactical [asset allocation](../a/asset_allocation.md) involves adjusting a portf ### Alpha -*[Alpha](../a/alpha.md)* is a measure of an investment's performance relative to a [benchmark](../b/benchmark.md) [index](../i/index.md). A positive [alpha](../a/alpha.md) indicates that the investment has outperformed the [index](../i/index.md), while a negative [alpha](../a/alpha.md) indicates underperformance. [Alpha](../a/alpha.md) is often used by [mutual fund](../m/mutual_fund.md) managers and [hedge](../h/hedge.md) funds to evaluate performance. +*[Alpha](../a/alpha.md)* is a measure of an investment's performance relative to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). A positive [alpha](../a/alpha.md) indicates that the investment has outperformed the [index](../i/index_instrument.md), while a negative [alpha](../a/alpha.md) indicates underperformance. [Alpha](../a/alpha.md) is often used by [mutual fund](../m/mutual_fund.md) managers and [hedge](../h/hedge.md) funds to evaluate performance. ### Sharpe Ratio diff --git a/en/pedia/o/outperformance_analysis.md b/en/pedia/o/outperformance_analysis.md index b08df9ff..0a5cb4ec 100644 --- a/en/pedia/o/outperformance_analysis.md +++ b/en/pedia/o/outperformance_analysis.md @@ -4,7 +4,7 @@ Outperformance Analysis is a critical facet in the domain of [algorithmic tradin ## What is Outperformance? -Outperformance, in financial terminology, refers to an investment or [trading strategy](../t/trading_strategy.md) that yields returns surpassing a particular [benchmark](../b/benchmark.md) [index](../i/index.md) or the average returns in a given [market](../m/market.md). Typically, benchmarks could be indices like the S&P 500, [NASDAQ](../n/nasdaq.md), or any other [market](../m/market.md)-relative [index](../i/index.md). A consistent outperformance indicates a [robust](../r/robust.md) and effective trading approach or algorithm that adds significant [value](../v/value.md) over simply following a passive [investment strategy](../i/investment_strategy.md). +Outperformance, in financial terminology, refers to an investment or [trading strategy](../t/trading_strategy.md) that yields returns surpassing a particular [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) or the average returns in a given [market](../m/market.md). Typically, benchmarks could be indices like the S&P 500, [NASDAQ](../n/nasdaq.md), or any other [market](../m/market.md)-relative [index](../i/index_instrument.md). A consistent outperformance indicates a [robust](../r/robust.md) and effective trading approach or algorithm that adds significant [value](../v/value.md) over simply following a passive [investment strategy](../i/investment_strategy.md). ## Key Metrics in Outperformance Analysis @@ -12,7 +12,7 @@ Several statistical and financial metrics are employed in outperformance analysi ### Alpha -[Alpha](../a/alpha.md) represents the [excess return](../e/excess_return.md) of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index.md). It is a measure of [active return](../a/active_return.md) on an investment, and a positive [alpha](../a/alpha.md) indicates that the [trading strategy](../t/trading_strategy.md) has provided returns that exceed the [benchmark](../b/benchmark.md). +[Alpha](../a/alpha.md) represents the [excess return](../e/excess_return.md) of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). It is a measure of [active return](../a/active_return.md) on an investment, and a positive [alpha](../a/alpha.md) indicates that the [trading strategy](../t/trading_strategy.md) has provided returns that exceed the [benchmark](../b/benchmark.md). ```math \[alpha](../a/alpha.md) = R_i - (R_f + \[beta](../b/beta.md) \times (R_m - R_f)) @@ -21,7 +21,7 @@ Where: - \(R_i\) is the [return](../r/return.md) of the investment. - \(R_f\) is the [risk](../r/risk.md)-free rate. - \(\[beta](../b/beta.md)\) is the investment’s [beta](../b/beta.md), which measures the sensitivity of the investment to movements in the [benchmark](../b/benchmark.md). -- \(R_m\) is the [return](../r/return.md) of the [benchmark](../b/benchmark.md) [index](../i/index.md). +- \(R_m\) is the [return](../r/return.md) of the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). ### Sharpe Ratio diff --git a/en/pedia/o/outperformance_metrics.md b/en/pedia/o/outperformance_metrics.md index fb53e015..6a9b0966 100644 --- a/en/pedia/o/outperformance_metrics.md +++ b/en/pedia/o/outperformance_metrics.md @@ -4,7 +4,7 @@ In the realm of [algorithmic trading](../a/algorithmic_trading.md), the ability ## 1. Alpha -[Alpha](../a/alpha.md) is a measure of an investment's performance compared to a [market index](../m/market_index.md) or [benchmark](../b/benchmark.md) that represents the [market](../m/market.md)'s broad movement. Essentially, [alpha](../a/alpha.md) indicates the [excess return](../e/excess_return.md) of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index.md). +[Alpha](../a/alpha.md) is a measure of an investment's performance compared to a [market index](../m/market_index.md) or [benchmark](../b/benchmark.md) that represents the [market](../m/market.md)'s broad movement. Essentially, [alpha](../a/alpha.md) indicates the [excess return](../e/excess_return.md) of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). ### Calculation [Alpha](../a/alpha.md) can be calculated using the following formula: @@ -126,7 +126,7 @@ where: ## 9. Kappa Index -The [Kappa](../k/kappa.md) [index](../i/index.md) is an extension of the [Sortino Ratio](../s/sortino_ratio.md), where the [Kappa](../k/kappa.md) \(3\) or [Kappa](../k/kappa.md) \(4\) ratios are used to measure [risk](../r/risk.md)-adjusted returns based on higher-[order](../o/order.md) Lower Partial Moment [statistics](../s/statistics.md). +The [Kappa](../k/kappa.md) [index](../i/index_instrument.md) is an extension of the [Sortino Ratio](../s/sortino_ratio.md), where the [Kappa](../k/kappa.md) \(3\) or [Kappa](../k/kappa.md) \(4\) ratios are used to measure [risk](../r/risk.md)-adjusted returns based on higher-[order](../o/order.md) Lower Partial Moment [statistics](../s/statistics.md). ### Calculation \[ \text{Kappa} (\[lambda](../l/lambda.md)) = \frac{R_p - R_f}{LPM_{\[lambda](../l/lambda.md)}} \] diff --git a/en/pedia/o/outperformance_tracking.md b/en/pedia/o/outperformance_tracking.md index 056d58df..9cb72040 100644 --- a/en/pedia/o/outperformance_tracking.md +++ b/en/pedia/o/outperformance_tracking.md @@ -1,6 +1,6 @@ # Outperformance Tracking -Outperformance tracking is an intricate and critical function in [algorithmic trading](../a/algorithmic_trading.md) aimed at gauging the effectiveness of [trading strategies](../t/trading_strategies.md). The primary goal is to exceed a predefined [benchmark](../b/benchmark.md) or [market index](../m/market_index.md). This extensive process involves various methods, technologies, and tools to track and analyze the performance of investments relative to predefined benchmarks. Outperformance tracking hinges on numerous metrics, analytics, and assessment techniques to identify whether a given [trading strategy](../t/trading_strategy.md) surpasses the [market](../m/market.md) or selected [index](../i/index.md). +Outperformance tracking is an intricate and critical function in [algorithmic trading](../a/algorithmic_trading.md) aimed at gauging the effectiveness of [trading strategies](../t/trading_strategies.md). The primary goal is to exceed a predefined [benchmark](../b/benchmark.md) or [market index](../m/market_index.md). This extensive process involves various methods, technologies, and tools to track and analyze the performance of investments relative to predefined benchmarks. Outperformance tracking hinges on numerous metrics, analytics, and assessment techniques to identify whether a given [trading strategy](../t/trading_strategy.md) surpasses the [market](../m/market.md) or selected [index](../i/index_instrument.md). ## Essentials of Outperformance Tracking @@ -31,7 +31,7 @@ At its core, outperformance tracking measures the ability of a [trading strategy 5. **[Tracking Error](../t/tracking_error.md)** This metric indicates the [divergence](../d/divergence.md) between the [trading strategy](../t/trading_strategy.md) and the [benchmark](../b/benchmark.md). Low [tracking error](../t/tracking_error.md) generally signifies that the strategy closely follows the [benchmark](../b/benchmark.md). - **Formula**: [Tracking Error](../t/tracking_error.md) = [Standard Deviation](../s/standard_deviation.md) (Portfolio [Return](../r/return.md) - [Benchmark](../b/benchmark.md) [Return](../r/return.md)) - - Utilized for strategies like [index](../i/index.md) funds that aim to track a [benchmark](../b/benchmark.md) closely. + - Utilized for strategies like [index](../i/index_instrument.md) funds that aim to track a [benchmark](../b/benchmark.md) closely. ### Approaches to Outperformance Tracking diff --git a/en/pedia/o/outperformance_vs._benchmark.md b/en/pedia/o/outperformance_vs._benchmark.md index 695145ec..d7f539ad 100644 --- a/en/pedia/o/outperformance_vs._benchmark.md +++ b/en/pedia/o/outperformance_vs._benchmark.md @@ -6,7 +6,7 @@ In the realm of [algorithmic trading](../a/algorithmic_trading.md), the concept **Outperformance** is the degree to which a [trading strategy](../t/trading_strategy.md) or investment portfolio exceeds the performance of a specified [benchmark](../b/benchmark.md). Essentially, it’s a metric that shows how well an investment has done relative to a particular standard. -**[Benchmark](../b/benchmark.md)** in [financial markets](../f/financial_market.md) refers to a standard or a point of reference against which the performance of a strategy or investment portfolio can be measured. Commonly used benchmarks include indices like the S&P 500, MSCI World [Index](../i/index.md), or sector-specific indices. +**[Benchmark](../b/benchmark.md)** in [financial markets](../f/financial_market.md) refers to a standard or a point of reference against which the performance of a strategy or investment portfolio can be measured. Commonly used benchmarks include indices like the S&P 500, MSCI World [Index](../i/index_instrument.md), or sector-specific indices. ### Importance of Benchmarks diff --git a/en/pedia/o/outside_days.md b/en/pedia/o/outside_days.md index d1e67477..7981ede9 100644 --- a/en/pedia/o/outside_days.md +++ b/en/pedia/o/outside_days.md @@ -61,7 +61,7 @@ Traders might also use outside days to identify potential [reversal](../r/revers ### Confirmation with Other Indicators -To increase the reliability of [trading signals](../t/trading_signals.md) generated by outside days, traders often use additional [technical indicators](../t/technical_indicator.md) for confirmation. Moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and [volume analysis](../v/volume_analysis.md) can provide further context and strengthen the trading decision. +To increase the reliability of [trading signals](../t/trading_signals.md) generated by outside days, traders often use additional [technical indicators](../t/technical_indicator.md) for confirmation. Moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and [volume analysis](../v/volume_analysis.md) can provide further context and strengthen the trading decision. ## Advantages and Limitations of Using Outside Days diff --git a/en/pedia/o/outside_reversal.md b/en/pedia/o/outside_reversal.md index 9e1bad06..a4c60f36 100644 --- a/en/pedia/o/outside_reversal.md +++ b/en/pedia/o/outside_reversal.md @@ -42,7 +42,7 @@ Incorporating outside reversals into advanced [trading strategies](../t/trading_ To improve the reliability of outside [reversal patterns](../r/reversal_patterns.md), traders often combine them with other [technical indicators](../t/technical_indicator.md) such as: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** Measures the speed and change of price movements, helping confirm [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** Measures the speed and change of price movements, helping confirm [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **Moving Averages:** [Offer](../o/offer.md) a smoothed [trend](../t/trend.md)-following approach to identifying [support and resistance](../s/support_and_resistance.md) levels. - **[Volume Analysis](../v/volume_analysis.md):** High volumes accompanying an outside [reversal](../r/reversal.md) can strengthen the reliability of the pattern. diff --git a/en/pedia/o/over-selling.md b/en/pedia/o/over-selling.md index 7001f920..d0a95264 100644 --- a/en/pedia/o/over-selling.md +++ b/en/pedia/o/over-selling.md @@ -24,7 +24,7 @@ In leveraged trading, where investors borrow [money](../m/money.md) to [trade](. ### Technical Indicators -Technical analysts use various indicators to make trading decisions. When these indicators signal bearish trends, traders may collectively act on these signals, leading to over-selling. Common [technical indicators](../t/technical_indicator.md) include [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Averages, and [Bollinger Bands](../b/bollinger_band.md). +Technical analysts use various indicators to make trading decisions. When these indicators signal bearish trends, traders may collectively act on these signals, leading to over-selling. Common [technical indicators](../t/technical_indicator.md) include [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Averages, and [Bollinger Bands](../b/bollinger_band.md). ## Consequences of Over-Selling @@ -56,7 +56,7 @@ Identifying over-sold assets is crucial for traders and investors looking to [ca ### Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. An RSI [value](../v/value.md) below 30 is generally considered to indicate that an [asset](../a/asset.md) is [oversold](../o/oversold.md), making it a potential buy signal. +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. An RSI [value](../v/value.md) below 30 is generally considered to indicate that an [asset](../a/asset.md) is [oversold](../o/oversold.md), making it a potential buy signal. ### Moving Averages diff --git a/en/pedia/o/over-the-counter_derivatives.md b/en/pedia/o/over-the-counter_derivatives.md index e2c9e0ff..33d717f3 100644 --- a/en/pedia/o/over-the-counter_derivatives.md +++ b/en/pedia/o/over-the-counter_derivatives.md @@ -6,7 +6,7 @@ Over-The-Counter (OTC) [derivatives](../d/derivatives.md) represent a segment of ### Definition and Nature -OTC [derivatives](../d/derivatives.md) are contracts that derive their [value](../v/value.md) from an [underlying asset](../u/underlying_asset.md), [index](../i/index.md), or rate, and are negotiated and traded directly between two parties without going through a centralized [exchange](../e/exchange.md). These [derivatives](../d/derivatives.md) include: +OTC [derivatives](../d/derivatives.md) are contracts that derive their [value](../v/value.md) from an [underlying asset](../u/underlying_asset.md), [index](../i/index_instrument.md), or rate, and are negotiated and traded directly between two parties without going through a centralized [exchange](../e/exchange.md). These [derivatives](../d/derivatives.md) include: - **Swaps:** Contracts where two parties [exchange](../e/exchange.md) cash flows or other financial instruments. A common example is [interest rate swaps](../i/interest_rate_swaps.md) where fixed rate payments are exchanged for floating rate payments. - **Forwards:** Agreements to buy or sell an [asset](../a/asset.md) at a future date for a price specified today. Unlike [futures](../f/futures.md), forwards are not standardized and can be customized to the needs of the parties involved. diff --git a/en/pedia/o/overbought_indicators.md b/en/pedia/o/overbought_indicators.md index f7a8732e..22e36fdf 100644 --- a/en/pedia/o/overbought_indicators.md +++ b/en/pedia/o/overbought_indicators.md @@ -14,7 +14,7 @@ Here are some of the common [overbought](../o/overbought.md) indicators used in ### Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is one of the most commonly used indicators to detect [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements on a scale of 0 to 100. A [security](../s/security.md) is typically considered [overbought](../o/overbought.md) if the RSI reaches 70 or above. Conversely, it is considered [oversold](../o/oversold.md) if the RSI drops to 30 or below. +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is one of the most commonly used indicators to detect [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements on a scale of 0 to 100. A [security](../s/security.md) is typically considered [overbought](../o/overbought.md) if the RSI reaches 70 or above. Conversely, it is considered [oversold](../o/oversold.md) if the RSI drops to 30 or below. #### Calculation: @@ -59,7 +59,7 @@ Although primarily used as a [trend](../t/trend.md)-following [indicator](../i/i ### Commodity Channel Index (CCI) -The [Commodity](../c/commodity.md) Channel [Index](../i/index.md) (CCI) is used to identify cyclical trends in a [security](../s/security.md). It measures the current [price level](../p/price_level.md) relative to an average [price level](../p/price_level.md) over a specific period. The CCI primarily indicates [overbought](../o/overbought.md) conditions when it moves above +100 and indicates [oversold](../o/oversold.md) conditions when it moves below -100. +The [Commodity](../c/commodity.md) Channel [Index](../i/index_instrument.md) (CCI) is used to identify cyclical trends in a [security](../s/security.md). It measures the current [price level](../p/price_level.md) relative to an average [price level](../p/price_level.md) over a specific period. The CCI primarily indicates [overbought](../o/overbought.md) conditions when it moves above +100 and indicates [oversold](../o/oversold.md) conditions when it moves below -100. #### Calculation: diff --git a/en/pedia/o/overextension.md b/en/pedia/o/overextension.md index 241eec84..54c509ae 100644 --- a/en/pedia/o/overextension.md +++ b/en/pedia/o/overextension.md @@ -10,7 +10,7 @@ Overextension occurs when the price of an [asset](../a/asset.md) moves significa Several indicators can help identify overextension, including: - **Moving Averages (MA):** When the price moves significantly above or below moving averages such as the 50-day or 200-day moving averages. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** An RSI reading above 70 indicates that the [asset](../a/asset.md) is [overbought](../o/overbought.md), while an RSI below 30 suggests it is [oversold](../o/oversold.md). +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** An RSI reading above 70 indicates that the [asset](../a/asset.md) is [overbought](../o/overbought.md), while an RSI below 30 suggests it is [oversold](../o/oversold.md). - **[Bollinger Bands](../b/bollinger_band.md):** When price consistently touches or crosses the upper or lower bands, it may indicate overextension. - **[Volume](../v/volume.md):** A sharp increase in [volume](../v/volume.md) without corresponding news or events can suggest overextended moves based on speculative trading. @@ -57,7 +57,7 @@ Traders and investors use various strategies to manage overextended conditions: ### Using Contrarian Indicators Contrarian indicators involve taking positions contrary to prevailing [market sentiment](../m/market_sentiment.md), such as: -- **VIX ([Volatility](../v/volatility.md) [Index](../i/index.md)):** High VIX values may indicate a selling climax, suggesting potential buying opportunities. +- **VIX ([Volatility](../v/volatility.md) [Index](../i/index_instrument.md)):** High VIX values may indicate a selling climax, suggesting potential buying opportunities. - **[Sentiment Surveys](../s/sentiment_surveys.md):** Low sentiment readings could signal a [market](../m/market.md) bottom, while overly bullish sentiment might predict a top. ### Risk Management Techniques diff --git a/en/pedia/o/overfitting.md b/en/pedia/o/overfitting.md index e56a4d8b..f91f1314 100644 --- a/en/pedia/o/overfitting.md +++ b/en/pedia/o/overfitting.md @@ -39,7 +39,7 @@ Strategies to combat overfitting include both pre-processing techniques and mode ### Practical Example in Trading Algorithms -Consider an example where a trading algorithm attempts to predict the price of a stock based on various indicators: moving average, [volume](../v/volume.md), [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), etc. If the model overfits, it might memorably use intricate patterns from the training period which do not [hold](../h/hold.md) in the future. +Consider an example where a trading algorithm attempts to predict the price of a stock based on various indicators: moving average, [volume](../v/volume.md), [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), etc. If the model overfits, it might memorably use intricate patterns from the training period which do not [hold](../h/hold.md) in the future. ```python from sklearn.linear_model [import](../i/import.md) Lasso diff --git a/en/pedia/o/overhead_supply.md b/en/pedia/o/overhead_supply.md index 4733e45c..82b0762f 100644 --- a/en/pedia/o/overhead_supply.md +++ b/en/pedia/o/overhead_supply.md @@ -55,7 +55,7 @@ Rather than buying near resistance levels, traders may wait for confirmation of Analyzing trading volumes can provide insights into how [robust](../r/robust.md) the overhead [supply](../s/supply.md) is. High trading volumes during a [breakout](../b/breakout.md) often indicate strong buying [interest](../i/interest.md) capable of overcoming overhead [supply](../s/supply.md). ### 3. Using Indicators -[Technical indicators](../t/technical_indicators.md) such as Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can help traders gauge the strength of resistance and potential for a [breakout](../b/breakout.md). +[Technical indicators](../t/technical_indicators.md) such as Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can help traders gauge the strength of resistance and potential for a [breakout](../b/breakout.md). ### 4. Diversifying Positions To mitigate the [risk](../r/risk.md) associated with overhead [supply](../s/supply.md), traders may diversify their positions across different assets or sectors. diff --git a/en/pedia/o/overheated_economy.md b/en/pedia/o/overheated_economy.md index 11d29d14..481117ee 100644 --- a/en/pedia/o/overheated_economy.md +++ b/en/pedia/o/overheated_economy.md @@ -35,7 +35,7 @@ Specific sectors like housing can experience booms that drive overall [economic ### CPI and Inflation Rates -The Consumer Price [Index](../i/index.md) (CPI) is a key [indicator](../i/indicator.md) used to measure [inflation](../i/inflation.md). When the CPI rises rapidly, it is a sign of increasing prices, often observed in an overheated [economy](../e/economy.md). High [inflation](../i/inflation.md) can have various adverse effects, including reduced consumer spending and increased costs for businesses. +The Consumer Price [Index](../i/index_instrument.md) (CPI) is a key [indicator](../i/indicator.md) used to measure [inflation](../i/inflation.md). When the CPI rises rapidly, it is a sign of increasing prices, often observed in an overheated [economy](../e/economy.md). High [inflation](../i/inflation.md) can have various adverse effects, including reduced consumer spending and increased costs for businesses. ### GDP Growth Rate diff --git a/en/pedia/o/overlay.md b/en/pedia/o/overlay.md index 2d53786b..2390b2ce 100644 --- a/en/pedia/o/overlay.md +++ b/en/pedia/o/overlay.md @@ -37,7 +37,7 @@ An overlay in financial trading refers to a set of strategies or tools that "ove ### 4. Alpha Overlay -[Alpha](../a/alpha.md) overlays are designed to enhance the overall returns of a portfolio by adding [alpha](../a/alpha.md), which represents the [excess return](../e/excess_return.md) generated by an active [investment strategy](../i/investment_strategy.md) above a [benchmark](../b/benchmark.md) [index](../i/index.md). [Alpha](../a/alpha.md) overlays can be implemented through: +[Alpha](../a/alpha.md) overlays are designed to enhance the overall returns of a portfolio by adding [alpha](../a/alpha.md), which represents the [excess return](../e/excess_return.md) generated by an active [investment strategy](../i/investment_strategy.md) above a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). [Alpha](../a/alpha.md) overlays can be implemented through: - **Manager Selection:** Allocating assets to skilled active managers who have a track record of generating [alpha](../a/alpha.md). - **Portable [Alpha](../a/alpha.md):** Combining an [alpha](../a/alpha.md)-generating strategy with a [beta](../b/beta.md) exposure to achieve the desired [risk](../r/risk.md)-[return](../r/return.md) profile. diff --git a/en/pedia/o/overlay_strategies.md b/en/pedia/o/overlay_strategies.md index b46e1fae..04073fb0 100644 --- a/en/pedia/o/overlay_strategies.md +++ b/en/pedia/o/overlay_strategies.md @@ -25,7 +25,7 @@ ### Alpha Generation Overlays -[Alpha generation](../a/alpha_generation.md) overlays are supplementary strategies aimed at identifying additional sources of [alpha](../a/alpha.md), or [excess return](../e/excess_return.md) relative to a [benchmark](../b/benchmark.md) [index](../i/index.md). +[Alpha generation](../a/alpha_generation.md) overlays are supplementary strategies aimed at identifying additional sources of [alpha](../a/alpha.md), or [excess return](../e/excess_return.md) relative to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). #### Style Tilting diff --git a/en/pedia/o/overnight_index_swaps_(ois).md b/en/pedia/o/overnight_index_swaps_(ois).md index c8a8c7db..08b90459 100644 --- a/en/pedia/o/overnight_index_swaps_(ois).md +++ b/en/pedia/o/overnight_index_swaps_(ois).md @@ -1,6 +1,6 @@ # Overnight Index Swap -An Overnight [Index](../i/index.md) [Swap](../s/swap.md) (OIS) is a type of [interest rate swap](../i/interest_rate_swap.md) where the periodic floating [payment](../p/payment.md) is based on a [return](../r/return.md) calculated from a daily [compound interest](../c/compound_interest_in_trading.md) investment. This investment typically uses an [overnight rate](../o/overnight_rate.md), which is a measure of the cost of borrowing in the short-term [interbank market](../i/interbank_market.md). OIS are widely used in the [financial markets](../f/financial_market.md) for hedging and as a [benchmark](../b/benchmark.md) for weights and [spreads](../s/spreads.md) between different types of financial instruments. +An Overnight [Index](../i/index_instrument.md) [Swap](../s/swap.md) (OIS) is a type of [interest rate swap](../i/interest_rate_swap.md) where the periodic floating [payment](../p/payment.md) is based on a [return](../r/return.md) calculated from a daily [compound interest](../c/compound_interest_in_trading.md) investment. This investment typically uses an [overnight rate](../o/overnight_rate.md), which is a measure of the cost of borrowing in the short-term [interbank market](../i/interbank_market.md). OIS are widely used in the [financial markets](../f/financial_market.md) for hedging and as a [benchmark](../b/benchmark.md) for weights and [spreads](../s/spreads.md) between different types of financial instruments. ### Key Concepts and Terminology @@ -11,7 +11,7 @@ An Overnight [Index](../i/index.md) [Swap](../s/swap.md) (OIS) is a type of [int In an OIS, the floating rate is tied to the [overnight rate](../o/overnight_rate.md), meaning it changes with fluctuations in the central [bank](../b/bank.md)'s [benchmark](../b/benchmark.md) rate. This is distinct from the fixed rate, which remains constant throughout the [swap](../s/swap.md)'s term. 3. **Fixed Rate**: - The fixed rate in an OIS is agreed upon at the inception of the [swap](../s/swap.md) contract. One party [will](../w/will.md) pay this fixed rate while receiving the floating rate linked to the overnight [index](../i/index.md). + The fixed rate in an OIS is agreed upon at the inception of the [swap](../s/swap.md) contract. One party [will](../w/will.md) pay this fixed rate while receiving the floating rate linked to the overnight [index](../i/index_instrument.md). 4. **Notional [Principal](../p/principal.md)**: The notional [principal](../p/principal.md) is the total amount upon which the [exchange](../e/exchange.md) of [interest](../i/interest.md) payments in the OIS is based. It's called 'notional' because this [principal](../p/principal.md) amount is not actually exchanged between counterparties. @@ -94,6 +94,6 @@ Several major financial institutions, exchanges, and clearinghouses play pivotal ### Conclusion -Overnight [Index](../i/index.md) Swaps are crucial financial instruments used for hedging, benchmarking, and [risk management](../r/risk_management.md) in the [interest rate](../i/interest_rate.md) markets. With their floating rate typically linked to a central [bank](../b/bank.md)'s [overnight rate](../o/overnight_rate.md), OIS provide a relatively straightforward mechanism for managing short-term [interest rate](../i/interest_rate.md) exposure. Despite the various risks associated with OIS, the widespread use of central [clearing](../c/clearing.md) and [robust](../r/robust.md) financial infrastructures helps mitigate many of these concerns. Financial institutions, corporate treasuries, and investors rely on OIS not only for direct financial management but also as a key component in the broader landscape of financial [derivatives](../d/derivatives.md) and [interest rate](../i/interest_rate.md) markets. +Overnight [Index](../i/index_instrument.md) Swaps are crucial financial instruments used for hedging, benchmarking, and [risk management](../r/risk_management.md) in the [interest rate](../i/interest_rate.md) markets. With their floating rate typically linked to a central [bank](../b/bank.md)'s [overnight rate](../o/overnight_rate.md), OIS provide a relatively straightforward mechanism for managing short-term [interest rate](../i/interest_rate.md) exposure. Despite the various risks associated with OIS, the widespread use of central [clearing](../c/clearing.md) and [robust](../r/robust.md) financial infrastructures helps mitigate many of these concerns. Financial institutions, corporate treasuries, and investors rely on OIS not only for direct financial management but also as a key component in the broader landscape of financial [derivatives](../d/derivatives.md) and [interest rate](../i/interest_rate.md) markets. Given the complexity and technical aspects of OIS, ongoing education, sophisticated modeling, and [robust](../r/robust.md) [risk management](../r/risk_management.md) practices are essential for anyone looking to effectively utilize these instruments. Through platforms provided by entities like [Bloomberg](../b/bloomberg.md), ICE, LCH, and CME Group, participants can engage in OIS trading with confidence and accuracy. diff --git a/en/pedia/o/overnight_rate.md b/en/pedia/o/overnight_rate.md index 3ede35b7..bd960aff 100644 --- a/en/pedia/o/overnight_rate.md +++ b/en/pedia/o/overnight_rate.md @@ -27,7 +27,7 @@ The [Federal Funds Rate](../f/federal_funds_rate.md) is the overnight rate at wh - More information: [Federal Reserve](https://www.federalreserve.gov/) ### 2. **EONIA (Eurozone)** -The [Euro](../e/euro.md) Overnight [Index](../i/index.md) Average (EONIA) was traditionally the [benchmark](../b/benchmark.md) for overnight rates in the [Eurozone](../e/eurozone.md). However, since October 2019, EONIA has been replaced by the [Euro](../e/euro.md) Short-Term Rate (€STR). +The [Euro](../e/euro.md) Overnight [Index](../i/index_instrument.md) Average (EONIA) was traditionally the [benchmark](../b/benchmark.md) for overnight rates in the [Eurozone](../e/eurozone.md). However, since October 2019, EONIA has been replaced by the [Euro](../e/euro.md) Short-Term Rate (€STR). - More information: [European Central Bank](https://www.ecb.europa.eu/) ### 3. **SONIA (United Kingdom)** diff --git a/en/pedia/o/oversold.md b/en/pedia/o/oversold.md index 9f17e5d8..f7ff08df 100644 --- a/en/pedia/o/oversold.md +++ b/en/pedia/o/oversold.md @@ -8,11 +8,11 @@ The concept of being oversold is crucial in both [technical analysis](../t/techn ## Technical Indicators -Two widely used [technical indicators](../t/technical_indicator.md) for identifying oversold conditions are the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) and the Moving Average Convergence [Divergence](../d/divergence.md) (MACD). +Two widely used [technical indicators](../t/technical_indicator.md) for identifying oversold conditions are the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) and the Moving Average Convergence [Divergence](../d/divergence.md) (MACD). ### Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is one of the most popular tools for spotting oversold conditions. Developed by J. Welles Wilder, the RSI measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or oversold conditions in the price of a [security](../s/security.md). The RSI is calculated using the following formula: +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is one of the most popular tools for spotting oversold conditions. Developed by J. Welles Wilder, the RSI measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or oversold conditions in the price of a [security](../s/security.md). The RSI is calculated using the following formula: ``` RSI = 100 - (100 / (1 + RS)) diff --git a/en/pedia/o/oversold_and_overbought_conditions.md b/en/pedia/o/oversold_and_overbought_conditions.md index 45ae215a..7dd93cfb 100644 --- a/en/pedia/o/oversold_and_overbought_conditions.md +++ b/en/pedia/o/oversold_and_overbought_conditions.md @@ -10,7 +10,7 @@ In the context of [financial markets](../f/financial_market.md), the terms "[ove ### Indicators to Identify Oversold and Overbought Conditions #### Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is one of the most commonly used [momentum oscillators](../m/momentum_oscillators.md) for identifying [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions. Developed by J. Welles Wilder Jr., RSI ranges from 0 to 100, with levels generally interpreted as follows: +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is one of the most commonly used [momentum oscillators](../m/momentum_oscillators.md) for identifying [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions. Developed by J. Welles Wilder Jr., RSI ranges from 0 to 100, with levels generally interpreted as follows: - RSI above 70: [Overbought](../o/overbought.md) - RSI below 30: [Oversold](../o/oversold.md) diff --git a/en/pedia/o/overweight.md b/en/pedia/o/overweight.md index d913caff..5bff19c2 100644 --- a/en/pedia/o/overweight.md +++ b/en/pedia/o/overweight.md @@ -1,12 +1,12 @@ # Overweight -In the context of [finance](../f/finance.md) and [investing](../i/investing.md), "overweight" is a term used to describe a condition in which an investment portfolio holds a larger proportion of a particular [security](../s/security.md) or [asset class](../a/asset_class.md) than is typically recommended or than is present in a [benchmark](../b/benchmark.md) [index](../i/index.md). This is usually indicative of a positive outlook for the [asset](../a/asset.md), suggesting that the [investor](../i/investor.md) expects it to perform better than other securities. +In the context of [finance](../f/finance.md) and [investing](../i/investing.md), "overweight" is a term used to describe a condition in which an investment portfolio holds a larger proportion of a particular [security](../s/security.md) or [asset class](../a/asset_class.md) than is typically recommended or than is present in a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). This is usually indicative of a positive outlook for the [asset](../a/asset.md), suggesting that the [investor](../i/investor.md) expects it to perform better than other securities. ## Definition and Background -"Overweight" can be applied to various contexts, including individual securities, sectors, and [asset](../a/asset.md) classes. It is used by portfolio managers and analysts to signify that they have allocated more resources or funds to a particular investment than its percentage within a relevant [index](../i/index.md) or [benchmark](../b/benchmark.md). +"Overweight" can be applied to various contexts, including individual securities, sectors, and [asset](../a/asset.md) classes. It is used by portfolio managers and analysts to signify that they have allocated more resources or funds to a particular investment than its percentage within a relevant [index](../i/index_instrument.md) or [benchmark](../b/benchmark.md). -For example, if Technology [stocks](../s/stock.md) constitute 25% of the S&P 500 [index](../i/index.md), a portfolio that allocates 35% to Technology [stocks](../s/stock.md) would be considered overweight in that sector. +For example, if Technology [stocks](../s/stock.md) constitute 25% of the S&P 500 [index](../i/index_instrument.md), a portfolio that allocates 35% to Technology [stocks](../s/stock.md) would be considered overweight in that sector. ## Factors Influencing Overweight Positions @@ -30,7 +30,7 @@ While an overweight strategy could potentially [yield](../y/yield.md) higher ret To determine if an [asset](../a/asset.md) is overweight, calculate its percentage in your portfolio and compare it to its percentage in a relevant [benchmark](../b/benchmark.md). Here's a simplified example: - **[Asset Allocation](../a/asset_allocation.md) in Portfolio**: Technology [stocks](../s/stock.md) constitute $35,000 of a $100,000 portfolio, i.e., 35%. -- **[Benchmark](../b/benchmark.md) Allocation**: Technology [stocks](../s/stock.md) constitute 25% of the S&P 500 [index](../i/index.md). +- **[Benchmark](../b/benchmark.md) Allocation**: Technology [stocks](../s/stock.md) constitute 25% of the S&P 500 [index](../i/index_instrument.md). The portfolio is 10% overweight in Technology [stocks](../s/stock.md). diff --git a/en/pedia/o/owners'_equivalent_rent_(oer).md b/en/pedia/o/owners'_equivalent_rent_(oer).md index 77ebf1ab..c180a896 100644 --- a/en/pedia/o/owners'_equivalent_rent_(oer).md +++ b/en/pedia/o/owners'_equivalent_rent_(oer).md @@ -4,7 +4,7 @@ Owners' Equivalent Rent (OER) is a critical measure within the realm of [economi ## Definition and Importance -**Owners' Equivalent Rent** is part of the Consumer Price [Index](../i/index.md) (CPI) and represents about 24% of the overall CPI and roughly one-third of the core CPI, which excludes volatile food and energy prices. The OER is designed to measure the implicit rent that a homeowner would have to pay if they were renting their [home](../h/home.md). Essentially, it estimates the rental [value](../v/value.md) of a property that is currently being used as a primary residence by its owner. +**Owners' Equivalent Rent** is part of the Consumer Price [Index](../i/index_instrument.md) (CPI) and represents about 24% of the overall CPI and roughly one-third of the core CPI, which excludes volatile food and energy prices. The OER is designed to measure the implicit rent that a homeowner would have to pay if they were renting their [home](../h/home.md). Essentially, it estimates the rental [value](../v/value.md) of a property that is currently being used as a primary residence by its owner. Understanding OER is crucial for several reasons: diff --git a/en/pedia/p/p_e_10_ratio.md b/en/pedia/p/p_e_10_ratio.md index a55b4615..4478033a 100644 --- a/en/pedia/p/p_e_10_ratio.md +++ b/en/pedia/p/p_e_10_ratio.md @@ -17,7 +17,7 @@ The formula for the P/E 10 ratio is fairly straightforward: To calculate the P/E 10 ratio, follow these steps: 1. **Collect Historical [Earnings](../e/earnings.md) Data**: Obtain the company's [earnings](../e/earnings.md) data for the past ten years. -2. **Adjust for [Inflation](../i/inflation.md)**: Adjust these [earnings](../e/earnings.md) figures for [inflation](../i/inflation.md) to ensure consistency. This is usually done using a measure like the Consumer Price [Index](../i/index.md) (CPI). +2. **Adjust for [Inflation](../i/inflation.md)**: Adjust these [earnings](../e/earnings.md) figures for [inflation](../i/inflation.md) to ensure consistency. This is usually done using a measure like the Consumer Price [Index](../i/index_instrument.md) (CPI). 3. **Calculate the Average**: Compute the average of the [inflation](../i/inflation.md)-adjusted [earnings](../e/earnings.md). 4. **Determine Current Share Price**: Find the current share price of the company. 5. **Divide Current Price by Average [Earnings](../e/earnings.md)**: Finally, divide the current share price by the 10-year average of [inflation](../i/inflation.md)-adjusted [earnings](../e/earnings.md). @@ -33,14 +33,14 @@ The P/E 10 ratio is important for several reasons: ### Case Study: The S&P 500 and P/E 10 Ratio -One prominent application of the P/E 10 ratio is its use in evaluating the [valuation](../v/valuation.md) of the S&P 500 [index](../i/index.md). Investors and analysts use the P/E 10 ratio to assess whether the U.S. [equity market](../e/equity_market.md) as a whole is [overvalued](../o/overvalued.md), [undervalued](../u/undervalued.md), or fairly valued. Historic data reveals that during periods of significant overvaluation, as indicated by a high P/E 10 ratio, the [market](../m/market.md) tends to experience corrections. Conversely, low P/E 10 ratios have historically preceded periods of [market](../m/market.md) growth. +One prominent application of the P/E 10 ratio is its use in evaluating the [valuation](../v/valuation.md) of the S&P 500 [index](../i/index_instrument.md). Investors and analysts use the P/E 10 ratio to assess whether the U.S. [equity market](../e/equity_market.md) as a whole is [overvalued](../o/overvalued.md), [undervalued](../u/undervalued.md), or fairly valued. Historic data reveals that during periods of significant overvaluation, as indicated by a high P/E 10 ratio, the [market](../m/market.md) tends to experience corrections. Conversely, low P/E 10 ratios have historically preceded periods of [market](../m/market.md) growth. ### Limitations of the P/E 10 Ratio Despite its advantages, the P/E 10 ratio is not without its limitations: 1. **Historical Data Dependence**: It relies on historical data, which may not fully capture future growth potential or changing [business](../b/business.md) conditions. -2. **[Inflation](../i/inflation.md) Metrics**: The method of [inflation](../i/inflation.md) adjustment (using CPI or another [index](../i/index.md)) can introduce its own biases. +2. **[Inflation](../i/inflation.md) Metrics**: The method of [inflation](../i/inflation.md) adjustment (using CPI or another [index](../i/index_instrument.md)) can introduce its own biases. 3. **Sector Variations**: Different sectors have different average P/E 10 ratios due to variations in [growth rates](../g/growth_rates_in_trading.md), [capital](../c/capital.md) requirements, and other [industry](../i/industry.md)-specific factors. 4. **Regulatory and [Market](../m/market.md) Changes**: Changes in regulations, technological advancements, and macroeconomic shifts can all affect a company's [earnings](../e/earnings.md) in ways not reflected by historical figures. diff --git a/en/pedia/p/pakistan_stock_exchange_(psx).md b/en/pedia/p/pakistan_stock_exchange_(psx).md index 7b585b60..621c1d68 100644 --- a/en/pedia/p/pakistan_stock_exchange_(psx).md +++ b/en/pedia/p/pakistan_stock_exchange_(psx).md @@ -4,7 +4,7 @@ The Pakistan Stock [Exchange](../e/exchange.md) (PSX) is the [principal](../p/pr ## Overview -PSX offers a platform for trading [shares](../s/shares.md), bonds, and other securities, and it is pivotal in mobilizing [capital](../c/capital.md) for fostering [economic growth](../e/economic_growth.md). PSX provides a transparent and efficient [market](../m/market.md), ensuring a secure environment for investors. The major [index](../i/index.md) of PSX is the KSE-100, which benchmarks the performance of the top 100 companies [listed](../l/listed.md) on the [exchange](../e/exchange.md). +PSX offers a platform for trading [shares](../s/shares.md), bonds, and other securities, and it is pivotal in mobilizing [capital](../c/capital.md) for fostering [economic growth](../e/economic_growth.md). PSX provides a transparent and efficient [market](../m/market.md), ensuring a secure environment for investors. The major [index](../i/index_instrument.md) of PSX is the KSE-100, which benchmarks the performance of the top 100 companies [listed](../l/listed.md) on the [exchange](../e/exchange.md). ## History @@ -76,9 +76,9 @@ PSX operates under the jurisdiction of the SECP, which ensures adherence to regu PSX tracks several indexes, with KSE-100 being the most prominent: -- **KSE-100 [Index](../i/index.md):** Tracks the performance of the top 100 companies based on [market capitalization](../m/market_capitalization.md). -- **KSE-30 [Index](../i/index.md):** Tracks the performance of the top 30 companies. -- **All [Shares](../s/shares.md) [Index](../i/index.md):** Includes all [listed](../l/listed.md) companies on PSX. +- **KSE-100 [Index](../i/index_instrument.md):** Tracks the performance of the top 100 companies based on [market capitalization](../m/market_capitalization.md). +- **KSE-30 [Index](../i/index_instrument.md):** Tracks the performance of the top 30 companies. +- **All [Shares](../s/shares.md) [Index](../i/index_instrument.md):** Includes all [listed](../l/listed.md) companies on PSX. - **Sectoral Indexes:** Tracks performance by [industry](../i/industry.md) sectors (e.g., Oil & Gas, Banks). ## Performance and Statistics diff --git a/en/pedia/p/papua_new_guinea_stock_exchange_(pngx).md b/en/pedia/p/papua_new_guinea_stock_exchange_(pngx).md index 0fc65446..6f02c463 100644 --- a/en/pedia/p/papua_new_guinea_stock_exchange_(pngx).md +++ b/en/pedia/p/papua_new_guinea_stock_exchange_(pngx).md @@ -63,8 +63,8 @@ Some prominent companies [listed](../l/listed.md) on PNGX include: The [exchange](../e/exchange.md) tracks [market](../m/market.md) performance through [benchmark](../b/benchmark.md) indices. The primary indices include: -1. **PNGX [Index](../i/index.md)**: Measures overall [market](../m/market.md) performance. -2. **PNGX All-Share [Index](../i/index.md)**: Includes all [listed](../l/listed.md) companies. +1. **PNGX [Index](../i/index_instrument.md)**: Measures overall [market](../m/market.md) performance. +2. **PNGX All-Share [Index](../i/index_instrument.md)**: Includes all [listed](../l/listed.md) companies. ## Challenges and Opportunities diff --git a/en/pedia/p/par.md b/en/pedia/p/par.md index 70539fee..ececa8b7 100644 --- a/en/pedia/p/par.md +++ b/en/pedia/p/par.md @@ -8,9 +8,9 @@ Portfolio management refers to the process of selecting, prioritizing, and overs ### Types of Portfolio Management -1. **[Active Portfolio Management](../a/active_portfolio_management.md)**: Active portfolio managers make decisions on buying and selling securities based on research, [market](../m/market.md) forecasts, and their [judgment](../j/judgment.md). They aim to [outperform](../o/outperform.md) a specific [benchmark](../b/benchmark.md) [index](../i/index.md). +1. **[Active Portfolio Management](../a/active_portfolio_management.md)**: Active portfolio managers make decisions on buying and selling securities based on research, [market](../m/market.md) forecasts, and their [judgment](../j/judgment.md). They aim to [outperform](../o/outperform.md) a specific [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). -2. **Passive Portfolio Management**: Passive managers implement a fixed strategy that mirrors a [market index](../m/market_index.md). The goal is to replicate the performance of the [index](../i/index.md) over time, usually resulting in lower [transaction costs](../t/transaction_costs.md) and fees. +2. **Passive Portfolio Management**: Passive managers implement a fixed strategy that mirrors a [market index](../m/market_index.md). The goal is to replicate the performance of the [index](../i/index_instrument.md) over time, usually resulting in lower [transaction costs](../t/transaction_costs.md) and fees. 3. **[Quantitative Portfolio Management](../q/quantitative_portfolio_management.md)**: Uses [mathematical models](../m/mathematical_models_in_trading.md) and [quantitative analysis](../q/quantitative_analysis.md) to identify investment opportunities and manage [risk](../r/risk.md). This is particularly prevalent in [algorithmic trading](../a/accountability.md). diff --git a/en/pedia/p/parabolic_curve_patterns.md b/en/pedia/p/parabolic_curve_patterns.md index 0b9893e3..55679c80 100644 --- a/en/pedia/p/parabolic_curve_patterns.md +++ b/en/pedia/p/parabolic_curve_patterns.md @@ -19,7 +19,7 @@ In mathematics, a parabola is defined by the equation \( y = ax^2 + bx + c \). O Identifying a parabolic curve pattern involves using several [technical analysis](../t/technical_analysis.md) tools and indicators. Here are some of the most common methods: 1. **Price Charts**: Visual inspection of price charts is the most straightforward method. Look for a smooth, accelerating curve that resembles a parabola. -2. **[Technical Indicators](../t/technical_indicators.md)**: Indicators like moving averages, the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) can help confirm the presence of a parabolic [trend](../t/trend.md). +2. **[Technical Indicators](../t/technical_indicators.md)**: Indicators like moving averages, the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) can help confirm the presence of a parabolic [trend](../t/trend.md). 3. **[Volume Analysis](../v/volume_analysis.md)**: Increasing [volume](../v/volume.md) during the formation of the curve confirms the strength of the [trend](../t/trend.md). ## Application in Algorithmic Trading diff --git a/en/pedia/p/parabolic_moves.md b/en/pedia/p/parabolic_moves.md index b6ca70f6..8103d5f0 100644 --- a/en/pedia/p/parabolic_moves.md +++ b/en/pedia/p/parabolic_moves.md @@ -14,7 +14,7 @@ During parabolic moves, trading volumes typically spike significantly. High [vol Assets in parabolic moves exhibit increased [volatility](../v/volatility.md). Intraday price swings become more pronounced, making it challenging to predict short-term movements accurately. ### Overextension -When an [asset](../a/asset.md)'s price moves too far too quickly, it tends to become overextended. Indicators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or [Bollinger Bands](../b/bollinger_bands.md) can highlight [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +When an [asset](../a/asset.md)'s price moves too far too quickly, it tends to become overextended. Indicators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or [Bollinger Bands](../b/bollinger_bands.md) can highlight [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. ### Reversals Parabolic moves often end abruptly. Once the price reaches an unsustainable level, a sharp [reversal](../r/reversal.md) is likely, leading to a rapid [correction](../c/correction.md). This sudden change often traps late entrants who entered the [market](../m/market.md) during the final stages of the parabolic move. @@ -77,7 +77,7 @@ The late 1990s tech boom is a historical example of parabolic moves, where stock [Bitcoin](../b/bitcoin.md) has experienced several parabolic moves, notably in 2017 and again in 2020-2021. Each move saw rapid price increases followed by significant corrections. ### Nasdaq 2020-2021 -The [Nasdaq](../n/nasdaq.md) [index](../i/index.md) exhibited a parabolic move during the COVID-19 pandemic recovery phase, driven by [investor](../i/investor.md) optimism around technology and [growth stocks](../g/growth_stocks.md). +The [Nasdaq](../n/nasdaq.md) [index](../i/index_instrument.md) exhibited a parabolic move during the COVID-19 pandemic recovery phase, driven by [investor](../i/investor.md) optimism around technology and [growth stocks](../g/growth_stocks.md). ## Risks and Challenges diff --git a/en/pedia/p/parabolic_sar.md b/en/pedia/p/parabolic_sar.md index 04e62440..1d9491aa 100644 --- a/en/pedia/p/parabolic_sar.md +++ b/en/pedia/p/parabolic_sar.md @@ -46,7 +46,7 @@ Traders also use the Parabolic SAR as a [trailing stop](../t/trailing_stop.md)-l In [algorithmic trading](../a/algorithmic_trading.md), the Parabolic SAR can be incorporated into [trading strategies](../t/trading_strategies.md) to automate the identification of trends and [execution](../e/execution.md) of trades. Here are some common approaches: #### Combination with Other Indicators -Algorithmic traders often combine the Parabolic SAR with other [technical indicators](../t/technical_indicators.md), such as moving averages or the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), to filter out [false signals](../f/false_signals_in_trading.md) and enhance the reliability of the [trading strategy](../t/trading_strategy.md). +Algorithmic traders often combine the Parabolic SAR with other [technical indicators](../t/technical_indicators.md), such as moving averages or the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), to filter out [false signals](../f/false_signals_in_trading.md) and enhance the reliability of the [trading strategy](../t/trading_strategy.md). #### Automated Trend Following Algorithmic systems can use the Parabolic SAR to implement automated [trend](../t/trend.md)-following strategies. By coding the SAR calculation and signal generation into [trading algorithms](../t/trading_algorithms.md), traders can execute trades based on predefined rules and [market](../m/market.md) conditions. diff --git a/en/pedia/p/parabolic_sar_(stop_and_reverse)_indicator.md b/en/pedia/p/parabolic_sar_(stop_and_reverse)_indicator.md index aecb4aca..5d402e07 100644 --- a/en/pedia/p/parabolic_sar_(stop_and_reverse)_indicator.md +++ b/en/pedia/p/parabolic_sar_(stop_and_reverse)_indicator.md @@ -42,7 +42,7 @@ The primary use of the [Parabolic SAR](../p/parabolic_sar.md) is identifying the ### Combination with Other Indicators -The [Parabolic SAR](../p/parabolic_sar.md) is often used in combination with other [technical indicators](../t/technical_indicator.md) to improve the reliability of [trading signals](../t/trading_signals.md). For example, combining the SAR with moving averages or the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) can provide additional layers of confirmation. +The [Parabolic SAR](../p/parabolic_sar.md) is often used in combination with other [technical indicators](../t/technical_indicator.md) to improve the reliability of [trading signals](../t/trading_signals.md). For example, combining the SAR with moving averages or the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) can provide additional layers of confirmation. ## Advantages and Limitations diff --git a/en/pedia/p/passive_index_funds.md b/en/pedia/p/passive_index_funds.md index d6dad154..c5794bc2 100644 --- a/en/pedia/p/passive_index_funds.md +++ b/en/pedia/p/passive_index_funds.md @@ -1,14 +1,14 @@ # Passive Index Funds -Passive [index](../i/index.md) funds have become a popular [investment vehicle](../i/investment_vehicle.md) for both retail and institutional investors. These funds aim to replicate the performance of a specific [index](../i/index.md), such as the S&P 500, by holding the same proportion of [stocks](../s/stock.md) in the [index](../i/index.md). This approach offers a broad [market exposure](../m/market_exposure.md), low operating expenses, and lower [portfolio turnover](../p/portfolio_turnover.md), resulting in potentially better returns over the long term. This document delves into the specifics of passive [index](../i/index.md) funds, their advantages, disadvantages, and their role in modern portfolio theory. +Passive [index](../i/index_instrument.md) funds have become a popular [investment vehicle](../i/investment_vehicle.md) for both retail and institutional investors. These funds aim to replicate the performance of a specific [index](../i/index_instrument.md), such as the S&P 500, by holding the same proportion of [stocks](../s/stock.md) in the [index](../i/index_instrument.md). This approach offers a broad [market exposure](../m/market_exposure.md), low operating expenses, and lower [portfolio turnover](../p/portfolio_turnover.md), resulting in potentially better returns over the long term. This document delves into the specifics of passive [index](../i/index_instrument.md) funds, their advantages, disadvantages, and their role in modern portfolio theory. ## What are Passive Index Funds? -Passive [index](../i/index.md) funds are collective investment vehicles designed to track the performance of a specific [index](../i/index.md) of [stocks](../s/stock.md) or bonds. Unlike active funds, which aim to [outperform](../o/outperform.md) the [market](../m/market.md) through selection and timing, passive [index](../i/index.md) funds mirror the [index](../i/index.md) composition. They achieve this by constructing a portfolio that holds the same [stocks](../s/stock.md) (and in the same proportions) as the [benchmark](../b/benchmark.md) [index](../i/index.md). +Passive [index](../i/index_instrument.md) funds are collective investment vehicles designed to track the performance of a specific [index](../i/index_instrument.md) of [stocks](../s/stock.md) or bonds. Unlike active funds, which aim to [outperform](../o/outperform.md) the [market](../m/market.md) through selection and timing, passive [index](../i/index_instrument.md) funds mirror the [index](../i/index_instrument.md) composition. They achieve this by constructing a portfolio that holds the same [stocks](../s/stock.md) (and in the same proportions) as the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). ## Structure of Passive Index Funds -Passive [index](../i/index.md) funds can take the form of mutual funds or [exchange](../e/exchange.md)-traded funds (ETFs). While both structures aim to replicate an [index](../i/index.md), they differ in terms of trading, fees, and accessibility. +Passive [index](../i/index_instrument.md) funds can take the form of mutual funds or [exchange](../e/exchange.md)-traded funds (ETFs). While both structures aim to replicate an [index](../i/index_instrument.md), they differ in terms of trading, fees, and accessibility. ### Mutual Funds @@ -22,15 +22,15 @@ ETFs, on the other hand, [trade](../t/trade.md) on stock exchanges and can be bo ### Lower Management Fees -One of the most significant advantages of passive [index](../i/index.md) funds is their lower management fees. Because these funds do not require [active management](../a/active_management.md), the costs associated with research, stock picking, and frequent trading are minimized. This cost [efficiency](../e/efficiency.md) directly benefits investors by preserving more of their returns. +One of the most significant advantages of passive [index](../i/index_instrument.md) funds is their lower management fees. Because these funds do not require [active management](../a/active_management.md), the costs associated with research, stock picking, and frequent trading are minimized. This cost [efficiency](../e/efficiency.md) directly benefits investors by preserving more of their returns. ### Reduced Risk of Underperformance -Passive [index](../i/index.md) funds aim to match, not beat, the [market](../m/market.md). This approach reduces the [risk](../r/risk.md) of underperformance often associated with [active management](../a/active_management.md). Historically, a significant number of active funds [fail](../f/fail.md) to [outperform](../o/outperform.md) their benchmarks, especially after [accounting](../a/accounting.md) for fees and expenses. +Passive [index](../i/index_instrument.md) funds aim to match, not beat, the [market](../m/market.md). This approach reduces the [risk](../r/risk.md) of underperformance often associated with [active management](../a/active_management.md). Historically, a significant number of active funds [fail](../f/fail.md) to [outperform](../o/outperform.md) their benchmarks, especially after [accounting](../a/accounting.md) for fees and expenses. ### Tax Efficiency -Passive [index](../i/index.md) funds tend to be more tax-efficient than active funds. Due to their buy-and-[hold](../h/hold.md) strategy, passive funds generate fewer [capital](../c/capital.md) gains distributions. This is particularly advantageous for investors holding funds in taxable accounts. +Passive [index](../i/index_instrument.md) funds tend to be more tax-efficient than active funds. Due to their buy-and-[hold](../h/hold.md) strategy, passive funds generate fewer [capital](../c/capital.md) gains distributions. This is particularly advantageous for investors holding funds in taxable accounts. ### Diversification @@ -40,15 +40,15 @@ By [investing](../i/investing.md) in a passive [index fund](../i/index_fund.md), ### Lack of Flexibility -Passive [index](../i/index.md) funds do not allow for flexibility in investments. They are tied to the [index](../i/index.md)'s performance and cannot make strategic decisions based on [market](../m/market.md) conditions or economic outlook. +Passive [index](../i/index_instrument.md) funds do not allow for flexibility in investments. They are tied to the [index](../i/index_instrument.md)'s performance and cannot make strategic decisions based on [market](../m/market.md) conditions or economic outlook. ### Limited Upside Potential -While passive [index](../i/index.md) funds can avoid underperformance [risk](../r/risk.md), they also limit the potential for outperformance. Active managers have the ability to [capitalize](../c/capitalize.md) on [market](../m/market.md) inefficiencies, whereas passive funds do not. +While passive [index](../i/index_instrument.md) funds can avoid underperformance [risk](../r/risk.md), they also limit the potential for outperformance. Active managers have the ability to [capitalize](../c/capitalize.md) on [market](../m/market.md) inefficiencies, whereas passive funds do not. ## Role in Modern Portfolio Theory -Modern Portfolio Theory (MPT), developed by [Harry Markowitz](../h/harry_markowitz.md), emphasizes the importance of [diversification](../d/diversification.md) and the [efficient frontier](../e/efficient_frontier.md). Passive [index](../i/index.md) funds fit well within MPT, as they provide diversified exposure to broad [market](../m/market.md) indices with minimal costs. +Modern Portfolio Theory (MPT), developed by [Harry Markowitz](../h/harry_markowitz.md), emphasizes the importance of [diversification](../d/diversification.md) and the [efficient frontier](../e/efficient_frontier.md). Passive [index](../i/index_instrument.md) funds fit well within MPT, as they provide diversified exposure to broad [market](../m/market.md) indices with minimal costs. ### Efficient Market Hypothesis (EMH) @@ -56,19 +56,19 @@ The [Efficient Market Hypothesis](../e/efficient_market_hypothesis.md) (EMH) sta ### Asset Allocation -[Asset allocation](../a/asset_allocation.md) is the process of determining the proportion of each [asset class](../a/asset_class.md) in an investment portfolio. Passive [index](../i/index.md) funds play a crucial role in [asset allocation](../a/asset_allocation.md) by providing broad [market exposure](../m/market_exposure.md) to various [asset](../a/asset.md) classes, including domestic and international equities, bonds, and commodities. +[Asset allocation](../a/asset_allocation.md) is the process of determining the proportion of each [asset class](../a/asset_class.md) in an investment portfolio. Passive [index](../i/index_instrument.md) funds play a crucial role in [asset allocation](../a/asset_allocation.md) by providing broad [market exposure](../m/market_exposure.md) to various [asset](../a/asset.md) classes, including domestic and international equities, bonds, and commodities. ## Popular Index Funds ### Vanguard 500 Index Fund -The Vanguard 500 [Index Fund](../i/index_fund.md) is one of the oldest and most well-known passive [index](../i/index.md) funds, designed to track the performance of the S&P 500. +The Vanguard 500 [Index Fund](../i/index_fund.md) is one of the oldest and most well-known passive [index](../i/index_instrument.md) funds, designed to track the performance of the S&P 500. - **Website:** [Vanguard](https://www.vanguard.com) ### SPDR S&P 500 ETF Trust (SPY) -The SPDR S&P 500 ETF [Trust](../t/trust.md) is one of the largest and most [liquid](../l/liquid.md) ETFs in the world. It aims to provide investment results that correspond to the performance of the S&P 500 [Index](../i/index.md). +The SPDR S&P 500 ETF [Trust](../t/trust.md) is one of the largest and most [liquid](../l/liquid.md) ETFs in the world. It aims to provide investment results that correspond to the performance of the S&P 500 [Index](../i/index_instrument.md). - **Website:** [SPDR](https://www.ssga.com) @@ -80,8 +80,8 @@ The Fidelity ZERO Total [Market Index](../m/market_index.md) [Fund](../f/fund.md ## Historical Performance -Comparing the historical performance of passive [index](../i/index.md) funds to active funds shows that passive funds often [outperform](../o/outperform.md) their active counterparts over the long term. This is especially true after [accounting](../a/accounting.md) for management fees and other expenses. +Comparing the historical performance of passive [index](../i/index_instrument.md) funds to active funds shows that passive funds often [outperform](../o/outperform.md) their active counterparts over the long term. This is especially true after [accounting](../a/accounting.md) for management fees and other expenses. ## Conclusion -Passive [index](../i/index.md) funds are a valuable tool for investors seeking broad [market exposure](../m/market_exposure.md) with low costs and minimal effort. They [offer](../o/offer.md) a reliable way to achieve [diversification](../d/diversification.md) and reduce the risks associated with [active management](../a/active_management.md). As part of a well-rounded [investment strategy](../i/investment_strategy.md), passive [index](../i/index.md) funds can play an integral role in achieving long-term financial goals. \ No newline at end of file +Passive [index](../i/index_instrument.md) funds are a valuable tool for investors seeking broad [market exposure](../m/market_exposure.md) with low costs and minimal effort. They [offer](../o/offer.md) a reliable way to achieve [diversification](../d/diversification.md) and reduce the risks associated with [active management](../a/active_management.md). As part of a well-rounded [investment strategy](../i/investment_strategy.md), passive [index](../i/index_instrument.md) funds can play an integral role in achieving long-term financial goals. \ No newline at end of file diff --git a/en/pedia/p/passive_investing.md b/en/pedia/p/passive_investing.md index 0b72df9e..5c24ae2a 100644 --- a/en/pedia/p/passive_investing.md +++ b/en/pedia/p/passive_investing.md @@ -4,9 +4,9 @@ ### Key Principles of Passive Investing -1. **Low Costs**: Passive [investing](../i/investing.md) typically involves low [transaction costs](../t/transaction_costs.md) because it minimizes buying and selling. Management fees for passive investment vehicles, such as [index](../i/index.md) funds and ETFs ([Exchange](../e/exchange.md)-Traded Funds), are usually lower compared to those for actively managed funds. +1. **Low Costs**: Passive [investing](../i/investing.md) typically involves low [transaction costs](../t/transaction_costs.md) because it minimizes buying and selling. Management fees for passive investment vehicles, such as [index](../i/index_instrument.md) funds and ETFs ([Exchange](../e/exchange.md)-Traded Funds), are usually lower compared to those for actively managed funds. -2. **[Diversification](../d/diversification.md)**: By [investing](../i/investing.md) in a diverse array of assets, passive investors can spread [risk](../r/risk.md) and reduce the impact of any single investment's poor performance. Typically, this involves [investing](../i/investing.md) in [index](../i/index.md) funds that replicate major [market](../m/market.md) indices like the S&P 500, FTSE 100, or MSCI World [Index](../i/index.md). +2. **[Diversification](../d/diversification.md)**: By [investing](../i/investing.md) in a diverse array of assets, passive investors can spread [risk](../r/risk.md) and reduce the impact of any single investment's poor performance. Typically, this involves [investing](../i/investing.md) in [index](../i/index_instrument.md) funds that replicate major [market](../m/market.md) indices like the S&P 500, FTSE 100, or MSCI World [Index](../i/index_instrument.md). 3. **[Market Efficiency](../m/market_efficiency.md)**: Passive investors often subscribe to the [Efficient Market Hypothesis](../e/efficient_market_hypothesis.md) (EMH), which suggests that markets efficiently reflect all available information. As a result, it is difficult to consistently achieve higher returns than the overall [market](../m/market.md). @@ -16,21 +16,21 @@ #### Index Funds -**[Index](../i/index.md) funds** are mutual funds designed to track the performance of a specific [index](../i/index.md). For example, an [index fund](../i/index_fund.md) might track the S&P 500, mirroring the performance of that [index](../i/index.md) by holding all (or a [representative sample](../r/representative_sample.md)) of the [stocks](../s/stock.md) in that [index](../i/index.md). +**[Index](../i/index_instrument.md) funds** are mutual funds designed to track the performance of a specific [index](../i/index_instrument.md). For example, an [index fund](../i/index_fund.md) might track the S&P 500, mirroring the performance of that [index](../i/index_instrument.md) by holding all (or a [representative sample](../r/representative_sample.md)) of the [stocks](../s/stock.md) in that [index](../i/index_instrument.md). **Advantages**: -- **Low Fees**: [Index](../i/index.md) funds generally have lower management fees compared to actively managed funds. -- **[Diversification](../d/diversification.md)**: By [default](../d/default.md), [index](../i/index.md) funds [offer](../o/offer.md) [diversification](../d/diversification.md) across many different securities. +- **Low Fees**: [Index](../i/index_instrument.md) funds generally have lower management fees compared to actively managed funds. +- **[Diversification](../d/diversification.md)**: By [default](../d/default.md), [index](../i/index_instrument.md) funds [offer](../o/offer.md) [diversification](../d/diversification.md) across many different securities. - **Simplicity**: Simple to understand and easy to manage for investors. #### Exchange-Traded Funds (ETFs) -**ETFs** are similar to [index](../i/index.md) funds but [trade](../t/trade.md) like individual [stocks](../s/stock.md) on an [exchange](../e/exchange.md). They can be bought and sold throughout the trading day at [market](../m/market.md) prices, which can differ from their net [asset](../a/asset.md) [value](../v/value.md) (NAV). +**ETFs** are similar to [index](../i/index_instrument.md) funds but [trade](../t/trade.md) like individual [stocks](../s/stock.md) on an [exchange](../e/exchange.md). They can be bought and sold throughout the trading day at [market](../m/market.md) prices, which can differ from their net [asset](../a/asset.md) [value](../v/value.md) (NAV). **Advantages**: - **Flexibility**: Investors can buy and sell ETFs throughout the trading day. - **Tax [Efficiency](../e/efficiency.md)**: ETFs typically incur fewer [capital](../c/capital.md) gains [taxes](../t/taxes.md) than mutual funds. -- **Low Fees**: Often lower fees compared to mutual funds, similar to [index](../i/index.md) funds. +- **Low Fees**: Often lower fees compared to mutual funds, similar to [index](../i/index_instrument.md) funds. ### Comparing Passive and Active Investing @@ -56,7 +56,7 @@ Passive [investing](../i/investing.md) is generally more cost-effective: 1. **Limited [Upside](../u/upside.md)**: Unable to [outperform](../o/outperform.md) the [market](../m/market.md); returns are limited to [market](../m/market.md) performance. 2. **Lack of Flexibility**: Less responsive to [market anomalies](../m/market_anomalies.md) or opportunities. -3. ** [Tracking Error](../t/tracking_error.md)**: Sometimes, the [fund](../f/fund.md)’s performance may not perfectly align with the [index](../i/index.md) due to fees or slightly different [holdings](../h/holdings.md). +3. ** [Tracking Error](../t/tracking_error.md)**: Sometimes, the [fund](../f/fund.md)’s performance may not perfectly align with the [index](../i/index_instrument.md) due to fees or slightly different [holdings](../h/holdings.md). ### Modern Developments in Passive Investing diff --git a/en/pedia/p/passive_investment_strategies.md b/en/pedia/p/passive_investment_strategies.md index cff2c091..2206c5fc 100644 --- a/en/pedia/p/passive_investment_strategies.md +++ b/en/pedia/p/passive_investment_strategies.md @@ -1,16 +1,16 @@ # Passive Investment Strategies -Passive investment strategies have garnered significant attention among both institutional and retail investors due to their simplicity, cost-effectiveness, and successful performance through various [market cycles](../m/market_cycles.md). These strategies focus on long-term gains by replicating the performance of [market](../m/market.md) indices rather than attempting to [outperform](../o/outperform.md) them through frequent trading or [active management](../a/active_management.md). This document provides a comprehensive overview of passive investment strategies, covering various types of [passive investing](../p/passive_investing.md), benefits and limitations, popular [index](../i/index.md) funds and ETFs, and the role of technology and [algorithmic trading](../a/algorithmic_trading.md) in enhancing these investment approaches. +Passive investment strategies have garnered significant attention among both institutional and retail investors due to their simplicity, cost-effectiveness, and successful performance through various [market cycles](../m/market_cycles.md). These strategies focus on long-term gains by replicating the performance of [market](../m/market.md) indices rather than attempting to [outperform](../o/outperform.md) them through frequent trading or [active management](../a/active_management.md). This document provides a comprehensive overview of passive investment strategies, covering various types of [passive investing](../p/passive_investing.md), benefits and limitations, popular [index](../i/index_instrument.md) funds and ETFs, and the role of technology and [algorithmic trading](../a/algorithmic_trading.md) in enhancing these investment approaches. ## Types of Passive Investment Strategies ### Index Fund Investing -**[Index](../i/index.md) funds** are mutual funds designed to track the performance of a specific [market index](../m/market_index.md), such as the S&P 500, the FTSE 100, or the [Nikkei](../n/nikkei.md) 225. These funds achieve this by [investing](../i/investing.md) in the same securities that constitute the [index](../i/index.md), in the same proportions. The primary advantage of [index](../i/index.md) funds is their low cost, as they require minimal management and trading. +**[Index](../i/index_instrument.md) funds** are mutual funds designed to track the performance of a specific [market index](../m/market_index.md), such as the S&P 500, the FTSE 100, or the [Nikkei](../n/nikkei.md) 225. These funds achieve this by [investing](../i/investing.md) in the same securities that constitute the [index](../i/index_instrument.md), in the same proportions. The primary advantage of [index](../i/index_instrument.md) funds is their low cost, as they require minimal management and trading. ### Exchange-Traded Funds (ETFs) -**[Exchange](../e/exchange.md)-Traded Funds (ETFs)** are similar to [index](../i/index.md) funds in that they aim to replicate the performance of a particular [index](../i/index.md). However, unlike [index](../i/index.md) funds, ETFs are traded on stock exchanges, allowing investors to buy and sell [shares](../s/shares.md) throughout the trading day. This [liquidity](../l/liquidity.md) and flexibility make ETFs a popular choice for passive investors. +**[Exchange](../e/exchange.md)-Traded Funds (ETFs)** are similar to [index](../i/index_instrument.md) funds in that they aim to replicate the performance of a particular [index](../i/index_instrument.md). However, unlike [index](../i/index_instrument.md) funds, ETFs are traded on stock exchanges, allowing investors to buy and sell [shares](../s/shares.md) throughout the trading day. This [liquidity](../l/liquidity.md) and flexibility make ETFs a popular choice for passive investors. ### Buy and Hold Strategy @@ -36,7 +36,7 @@ Also known as **robo-advisors**, automated investment services use algorithms to ### Lower Costs -Passive investment strategies generally incur fewer costs compared to active strategies. [Index](../i/index.md) funds and ETFs have lower [expense](../e/expense.md) ratios due to minimal trading and management. Additionally, avoiding frequent trading reduces [transaction costs](../t/transaction_costs.md) and [capital](../c/capital.md) gains [taxes](../t/taxes.md). +Passive investment strategies generally incur fewer costs compared to active strategies. [Index](../i/index_instrument.md) funds and ETFs have lower [expense](../e/expense.md) ratios due to minimal trading and management. Additionally, avoiding frequent trading reduces [transaction costs](../t/transaction_costs.md) and [capital](../c/capital.md) gains [taxes](../t/taxes.md). ### Reduced Risk @@ -52,13 +52,13 @@ Historically, passive investment strategies have outperformed many actively mana ### Transparency -[Index](../i/index.md) funds and ETFs are transparent in their [holdings](../h/holdings.md) and methodology. Investors can easily monitor what assets they own and understand how their investments are allocated, providing clarity and confidence in their investment choices. +[Index](../i/index_instrument.md) funds and ETFs are transparent in their [holdings](../h/holdings.md) and methodology. Investors can easily monitor what assets they own and understand how their investments are allocated, providing clarity and confidence in their investment choices. ## Limitations of Passive Investment Strategies ### Limited Market Outperformance -One of the main criticisms of [passive investing](../p/passive_investing.md) is its inability to [outperform](../o/outperform.md) the [market](../m/market.md). Since passive strategies aim to match the performance of an [index](../i/index.md), they cannot [capitalize](../c/capitalize.md) on [market](../m/market.md) inefficiencies or exploit [undervalued](../u/undervalued.md) securities. +One of the main criticisms of [passive investing](../p/passive_investing.md) is its inability to [outperform](../o/outperform.md) the [market](../m/market.md). Since passive strategies aim to match the performance of an [index](../i/index_instrument.md), they cannot [capitalize](../c/capitalize.md) on [market](../m/market.md) inefficiencies or exploit [undervalued](../u/undervalued.md) securities. ### Dependence on Market Trends @@ -76,19 +76,19 @@ Unlike active managers who can quickly adjust portfolios in response to [market] ### Vanguard 500 Index Fund (VFIAX) -The Vanguard 500 [Index Fund](../i/index_fund.md) seeks to track the performance of the S&P 500 [Index](../i/index.md). It is one of the most well-known and widely used [index](../i/index.md) funds, [offering](../o/offering.md) broad exposure to U.S. [large-cap stocks](../l/large_cap_stocks.md). +The Vanguard 500 [Index Fund](../i/index_fund.md) seeks to track the performance of the S&P 500 [Index](../i/index_instrument.md). It is one of the most well-known and widely used [index](../i/index_instrument.md) funds, [offering](../o/offering.md) broad exposure to U.S. [large-cap stocks](../l/large_cap_stocks.md). **Website**: [https://investor.vanguard.com/mutual-funds/profile/VFIAX](https://investor.vanguard.com/mutual-funds/profile/VFIAX) ### SPDR S&P 500 ETF Trust (SPY) -SPY is one of the first ETFs introduced and remains one of the most popular. It aims to replicate the performance of the S&P 500 [Index](../i/index.md), providing investors with a convenient way to invest in U.S. [large-cap stocks](../l/large_cap_stocks.md). +SPY is one of the first ETFs introduced and remains one of the most popular. It aims to replicate the performance of the S&P 500 [Index](../i/index_instrument.md), providing investors with a convenient way to invest in U.S. [large-cap stocks](../l/large_cap_stocks.md). **Website**: [https://www.ssga.com/us/en/individual/etfs/funds/spdr-sp-500-etf-trust-spy](https://www.ssga.com/us/en/individual/etfs/funds/spdr-sp-500-etf-trust-spy) ### iShares MSCI Emerging Markets ETF (EEM) -EEM tracks the performance of the MSCI Emerging Markets [Index](../i/index.md), [offering](../o/offering.md) exposure to a broad [range](../r/range.md) of companies in emerging and developing economies. This ETF provides [diversification](../d/diversification.md) across various sectors and countries outside the developed markets. +EEM tracks the performance of the MSCI Emerging Markets [Index](../i/index_instrument.md), [offering](../o/offering.md) exposure to a broad [range](../r/range.md) of companies in emerging and developing economies. This ETF provides [diversification](../d/diversification.md) across various sectors and countries outside the developed markets. **Website**: [https://www.ishares.com/us/products/239637/](https://www.ishares.com/us/products/239637/) @@ -108,7 +108,7 @@ SCHB seeks to track the performance of the Dow Jones U.S. Broad Stock [Market In ### Algorithmic Index Tracking -[Algorithmic trading](../a/algorithmic_trading.md) has revolutionized [passive investing](../p/passive_investing.md) by enhancing the [efficiency](../e/efficiency.md) and accuracy of [index](../i/index.md) tracking. Algorithms can automatically rebalance portfolios to align with their respective indices, minimizing tracking errors and ensuring accurate replication. +[Algorithmic trading](../a/algorithmic_trading.md) has revolutionized [passive investing](../p/passive_investing.md) by enhancing the [efficiency](../e/efficiency.md) and accuracy of [index](../i/index_instrument.md) tracking. Algorithms can automatically rebalance portfolios to align with their respective indices, minimizing tracking errors and ensuring accurate replication. ### Robo-Advisors @@ -116,7 +116,7 @@ Robo-advisors have made [passive investing](../p/passive_investing.md) accessibl ### High-Frequency Trading (HFT) -High-frequency trading is used by some ETFs and [index](../i/index.md) funds to improve [liquidity](../l/liquidity.md) and reduce [trading costs](../t/trading_costs.md). By executing a large number of trades in milliseconds, HFT can narrow [bid](../b/bid.md)-ask [spreads](../s/spreads.md) and enhance [price discovery](../p/price_discovery.md), benefiting passive investors with lower [transaction costs](../t/transaction_costs.md). +High-frequency trading is used by some ETFs and [index](../i/index_instrument.md) funds to improve [liquidity](../l/liquidity.md) and reduce [trading costs](../t/trading_costs.md). By executing a large number of trades in milliseconds, HFT can narrow [bid](../b/bid.md)-ask [spreads](../s/spreads.md) and enhance [price discovery](../p/price_discovery.md), benefiting passive investors with lower [transaction costs](../t/transaction_costs.md). ### Big Data and Machine Learning @@ -124,7 +124,7 @@ High-frequency trading is used by some ETFs and [index](../i/index.md) funds to ### Blockchain and Tokenization -[Blockchain](../b/blockchain_in_trading.md) technology and the tokenization of assets have the potential to further streamline and democratize [passive investing](../p/passive_investing.md). Tokenized [index](../i/index.md) funds or ETFs could [offer](../o/offer.md) fractional ownership, increased [transparency](../t/transparency.md), and reduced administrative costs. +[Blockchain](../b/blockchain_in_trading.md) technology and the tokenization of assets have the potential to further streamline and democratize [passive investing](../p/passive_investing.md). Tokenized [index](../i/index_instrument.md) funds or ETFs could [offer](../o/offer.md) fractional ownership, increased [transparency](../t/transparency.md), and reduced administrative costs. ## Conclusion diff --git a/en/pedia/p/passive_vs._active_investing.md b/en/pedia/p/passive_vs._active_investing.md index fb2ebd95..417c1d50 100644 --- a/en/pedia/p/passive_vs._active_investing.md +++ b/en/pedia/p/passive_vs._active_investing.md @@ -14,9 +14,9 @@ In the realm of [finance](../f/finance.md), [investing](../i/investing.md) takes 1. **Low Costs**: Passive investments typically have lower fees and expenses since they require minimal [transaction](../t/transaction.md) activity. There are fewer management fees and [trading costs](../t/trading_costs.md), making it cost-effective over time. -2. **[Diversification](../d/diversification.md)**: Passive investors often use [index](../i/index.md) funds or ETFs, which inherently diversify [risk](../r/risk.md) across a wide array of assets. [Diversification](../d/diversification.md) reduces the impact of any single [security](../s/security.md)'s poor performance on the overall portfolio. +2. **[Diversification](../d/diversification.md)**: Passive investors often use [index](../i/index_instrument.md) funds or ETFs, which inherently diversify [risk](../r/risk.md) across a wide array of assets. [Diversification](../d/diversification.md) reduces the impact of any single [security](../s/security.md)'s poor performance on the overall portfolio. -3. **Predictable Returns**: Since [passive investing](../p/passive_investing.md) aims to mirror the performance of an [index](../i/index.md), investors can expect returns that are relatively predictable and in line with the [market](../m/market.md). +3. **Predictable Returns**: Since [passive investing](../p/passive_investing.md) aims to mirror the performance of an [index](../i/index_instrument.md), investors can expect returns that are relatively predictable and in line with the [market](../m/market.md). 4. **Long-Term Focus**: This strategy is designed for long-term growth, capitalizing on the general upward [trend](../t/trend.md) of markets over time, despite short-term fluctuations. @@ -26,15 +26,15 @@ In the realm of [finance](../f/finance.md), [investing](../i/investing.md) takes #### Index Funds -[Index](../i/index.md) funds are mutual funds or ETFs designed to track the performance of a specific [index](../i/index.md). They are managed passively by purchasing the same securities in the same proportions as the [index](../i/index.md) they follow. +[Index](../i/index_instrument.md) funds are mutual funds or ETFs designed to track the performance of a specific [index](../i/index_instrument.md). They are managed passively by purchasing the same securities in the same proportions as the [index](../i/index_instrument.md) they follow. -- **Vanguard 500 [Index Fund](../i/index_fund.md) (https://[investor](../i/investor.md).vanguard.com/mutual-funds/profile/VFINX)**: It tracks the S&P 500 [index](../i/index.md) and is one of the most popular [options](../o/options.md) among passive investors. +- **Vanguard 500 [Index Fund](../i/index_fund.md) (https://[investor](../i/investor.md).vanguard.com/mutual-funds/profile/VFINX)**: It tracks the S&P 500 [index](../i/index_instrument.md) and is one of the most popular [options](../o/options.md) among passive investors. #### Exchange-Traded Funds (ETFs) -ETFs operate similarly to [index](../i/index.md) funds but [trade](../t/trade.md) on an [exchange](../e/exchange.md) like a stock. They [offer](../o/offer.md) flexibility, [liquidity](../l/liquidity.md), and lower [expense](../e/expense.md) ratios. +ETFs operate similarly to [index](../i/index_instrument.md) funds but [trade](../t/trade.md) on an [exchange](../e/exchange.md) like a stock. They [offer](../o/offer.md) flexibility, [liquidity](../l/liquidity.md), and lower [expense](../e/expense.md) ratios. -- **SPDR S&P 500 ETF [Trust](../t/trust.md) (SPY) (https://www.ssga.com/us/en/institutional/etfs/funds/spdr-sp-500-etf-[trust](../t/trust.md)-spy)**: It is designed to provide investment results that correspond to the price and [yield](../y/yield.md) performance of the S&P 500 [Index](../i/index.md). +- **SPDR S&P 500 ETF [Trust](../t/trust.md) (SPY) (https://www.ssga.com/us/en/institutional/etfs/funds/spdr-sp-500-etf-[trust](../t/trust.md)-spy)**: It is designed to provide investment results that correspond to the price and [yield](../y/yield.md) performance of the S&P 500 [Index](../i/index_instrument.md). ### Advantages @@ -101,7 +101,7 @@ While active [investing](../i/investing.md) has the potential for higher returns ### Risk Management -[Passive investing](../p/passive_investing.md) distributes [risk](../r/risk.md) across a broad [index](../i/index.md), reducing exposure to individual [security](../s/security.md) performance. Active [investing](../i/investing.md), while having the potential for high returns, can also concentrate [risk](../r/risk.md) in particular assets or strategies. +[Passive investing](../p/passive_investing.md) distributes [risk](../r/risk.md) across a broad [index](../i/index_instrument.md), reducing exposure to individual [security](../s/security.md) performance. Active [investing](../i/investing.md), while having the potential for high returns, can also concentrate [risk](../r/risk.md) in particular assets or strategies. ### Investor Suitability diff --git a/en/pedia/p/path-dependent_derivatives.md b/en/pedia/p/path-dependent_derivatives.md index 0b5f6943..d2aae36f 100644 --- a/en/pedia/p/path-dependent_derivatives.md +++ b/en/pedia/p/path-dependent_derivatives.md @@ -128,11 +128,11 @@ Consider an [investor](../i/investor.md) looking to [hedge](../h/hedge.md) again ### Example 2: Barrier Option Pricing -A [bank](../b/bank.md) wants to [offer](../o/offer.md) a structured product linked to the performance of the S&P 500 [index](../i/index.md), with the condition that the option is voided if the [index](../i/index.md) rises above a certain level within the next six months: +A [bank](../b/bank.md) wants to [offer](../o/offer.md) a structured product linked to the performance of the S&P 500 [index](../i/index_instrument.md), with the condition that the option is voided if the [index](../i/index_instrument.md) rises above a certain level within the next six months: 1. **Pricing Using Binomial Tree** - - Construct an appropriate binomial tree for the S&P 500 [index](../i/index.md). - - Incorporate the barrier condition by setting payoffs to zero if the [index](../i/index.md) exceeds the barrier at any node. + - Construct an appropriate binomial tree for the S&P 500 [index](../i/index_instrument.md). + - Incorporate the barrier condition by setting payoffs to zero if the [index](../i/index_instrument.md) exceeds the barrier at any node. - Use backward induction to derive the option price. ## Companies Specialized in Path-Dependent Derivatives diff --git a/en/pedia/p/payback_period.md b/en/pedia/p/payback_period.md index 9ee08971..ae7a03cc 100644 --- a/en/pedia/p/payback_period.md +++ b/en/pedia/p/payback_period.md @@ -89,7 +89,7 @@ Due to its limitations, the Payback Period is often used alongside other financi - **Net [Present Value](../p/present_value.md) (NPV)**: Considers the [time value](../t/time_value.md) of [money](../m/money.md) by [discounting](../d/discounting.md) future cash flows and provides a direct measure of the investment's added [value](../v/value.md). - **Internal [Rate of Return](../r/rate_of_return.md) (IRR)**: Estimates the investment's [return](../r/return.md) rate, equating the [present value](../p/present_value.md) of cash inflows and outflows. -- **Profitability [Index](../i/index.md) (PI)**: Measures the ratio of the [present value](../p/present_value.md) of future cash flows to the initial investment, indicating the [value](../v/value.md) generated per dollar invested. +- **Profitability [Index](../i/index_instrument.md) (PI)**: Measures the ratio of the [present value](../p/present_value.md) of future cash flows to the initial investment, indicating the [value](../v/value.md) generated per dollar invested. ## Conclusion diff --git a/en/pedia/p/penny_stock_strategies.md b/en/pedia/p/penny_stock_strategies.md index 5c911b22..5dad535b 100644 --- a/en/pedia/p/penny_stock_strategies.md +++ b/en/pedia/p/penny_stock_strategies.md @@ -94,7 +94,7 @@ Statistical [arbitrage](../a/arbitrage.md) involves using [mathematical models]( Machine learning models can be trained to identify patterns and predict price movements in [penny stocks](../p/penny_stocks.md): - **Supervised Learning**: Train models on historical price data, [volume](../v/volume.md), news sentiment, and other features to predict future price movements. -- **Feature Engineering**: Develop features that could be predictive of price movements, such as moving averages, [Bollinger Bands](../b/bollinger_bands.md), or RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)). +- **Feature Engineering**: Develop features that could be predictive of price movements, such as moving averages, [Bollinger Bands](../b/bollinger_bands.md), or RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)). - **[Backtesting](../b/backtesting.md)**: Utilize [backtesting](../b/backtesting.md) frameworks to evaluate the performance of machine learning models on historical data. This helps in refining algorithms before deploying them in live trading environments. ### 4. **High-Frequency Trading (HFT)** diff --git a/en/pedia/p/penny_stocks.md b/en/pedia/p/penny_stocks.md index 387cac22..0b0f42d6 100644 --- a/en/pedia/p/penny_stocks.md +++ b/en/pedia/p/penny_stocks.md @@ -39,7 +39,7 @@ Penny [stocks](../s/stock.md) generally refer to the [shares](../s/shares.md) of 1. **[Market](../m/market.md) Data**: [Tick](../t/tick.md)-by-[tick](../t/tick.md) data from exchanges and OTC markets. 2. **Financial Reports**: Quarterly [earnings](../e/earnings.md), SEC filings, etc. 3. **News and [Social Media](../s/social_media.md)**: Sources like Twitter, Reddit (r/WallStreetBets), and financial news portals. -4. **[Technical Indicators](../t/technical_indicators.md)**: Moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), etc. +4. **[Technical Indicators](../t/technical_indicators.md)**: Moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), etc. ### Backtesting and Simulations 1. **Historical Data**: Ensuring algorithms are tested across various [market](../m/market.md) conditions. diff --git a/en/pedia/p/per_capita_gdp.md b/en/pedia/p/per_capita_gdp.md index 63376175..d70a2284 100644 --- a/en/pedia/p/per_capita_gdp.md +++ b/en/pedia/p/per_capita_gdp.md @@ -56,7 +56,7 @@ Economic activities that increase GDP can also have negative environmental impac ### Quality of Life -While higher [per capita](../p/per_capita.md) GDP is often associated with better living standards, it does not directly measure factors that contribute to [quality of life](../q/quality_of_life.md), such as health, education, [security](../s/security.md), and leisure. Other indices, like the Human Development [Index](../i/index.md) (HDI), may provide a more comprehensive assessment of well-being. +While higher [per capita](../p/per_capita.md) GDP is often associated with better living standards, it does not directly measure factors that contribute to [quality of life](../q/quality_of_life.md), such as health, education, [security](../s/security.md), and leisure. Other indices, like the Human Development [Index](../i/index_instrument.md) (HDI), may provide a more comprehensive assessment of well-being. ## Alternative Measures @@ -64,7 +64,7 @@ Given the limitations of [per capita](../p/per_capita.md) GDP, alternative measu ### Human Development Index (HDI) -The Human Development [Index](../i/index.md) (HDI), developed by the United Nations Development Programme (UNDP), combines [per capita](../p/per_capita.md) [income](../i/income.md) with indicators of health ([life expectancy](../l/life_expectancy.md)) and education (mean years of schooling and expected years of schooling) to provide a more comprehensive measure of well-being. +The Human Development [Index](../i/index_instrument.md) (HDI), developed by the United Nations Development Programme (UNDP), combines [per capita](../p/per_capita.md) [income](../i/income.md) with indicators of health ([life expectancy](../l/life_expectancy.md)) and education (mean years of schooling and expected years of schooling) to provide a more comprehensive measure of well-being. ### Gross National Happiness (GNH) diff --git a/en/pedia/p/performance_analytics.md b/en/pedia/p/performance_analytics.md index 7ca8e522..24111847 100644 --- a/en/pedia/p/performance_analytics.md +++ b/en/pedia/p/performance_analytics.md @@ -36,7 +36,7 @@ Where: - \( \sigma_d \) = [standard deviation](../s/standard_deviation.md) of the [downside risk](../d/downside_risk.md) ### 6. Information Ratio -The [Information Ratio](../i/information_ratio.md) evaluates the performance of a [trading strategy](../t/trading_strategy.md) relative to a [benchmark](../b/benchmark.md) [index](../i/index.md), focusing on [excess return](../e/excess_return.md) per unit of [risk](../r/risk.md). +The [Information Ratio](../i/information_ratio.md) evaluates the performance of a [trading strategy](../t/trading_strategy.md) relative to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), focusing on [excess return](../e/excess_return.md) per unit of [risk](../r/risk.md). ## Evaluation Methodologies diff --git a/en/pedia/p/performance_benchmark_analysis.md b/en/pedia/p/performance_benchmark_analysis.md index 2d272e3b..7c8dad33 100644 --- a/en/pedia/p/performance_benchmark_analysis.md +++ b/en/pedia/p/performance_benchmark_analysis.md @@ -18,12 +18,12 @@ In [algorithmic trading](../a/algorithmic_trading.md), benchmarks serve as a sta For traders focusing on specific sectors, sector-specific indexes provide a more relevant [benchmark](../b/benchmark.md). Examples are: -- **[Technology Sector](../t/technology_sector.md) (XLK)**: An [index](../i/index.md) that measures the performance of technology companies. -- **[Healthcare Sector](../h/healthcare_sector.md) (XLV)**: An [index](../i/index.md) tracking the performance of companies in the healthcare [industry](../i/industry.md). +- **[Technology Sector](../t/technology_sector.md) (XLK)**: An [index](../i/index_instrument.md) that measures the performance of technology companies. +- **[Healthcare Sector](../h/healthcare_sector.md) (XLV)**: An [index](../i/index_instrument.md) tracking the performance of companies in the healthcare [industry](../i/industry.md). ### Fixed-Income Benchmarks -For strategies involving bonds and other fixed-[income](../i/income.md) securities, benchmarks like the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index.md) are commonly used. This [index](../i/index.md) measures investment-grade, U.S. dollar-denominated, fixed-rate taxable bonds. +For strategies involving bonds and other fixed-[income](../i/income.md) securities, benchmarks like the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) are commonly used. This [index](../i/index_instrument.md) measures investment-grade, U.S. dollar-denominated, fixed-rate taxable bonds. ### Custom Benchmarks diff --git a/en/pedia/p/performance_budget.md b/en/pedia/p/performance_budget.md index f951a1e9..21268f11 100644 --- a/en/pedia/p/performance_budget.md +++ b/en/pedia/p/performance_budget.md @@ -48,7 +48,7 @@ When setting a performance [budget](../b/budget.md), it is essential to focus on ### Step 1: Identify Key Metrics -Determine which [performance metrics](../p/performance_metrics.md) are most crucial for your website or application. This should be based on your specific needs, target audience, and [business](../b/business.md) goals. Common metrics include [Load](../l/load.md) Time, TTFB, TTI, FCP, Speed [Index](../i/index.md), and Total Page Size. +Determine which [performance metrics](../p/performance_metrics.md) are most crucial for your website or application. This should be based on your specific needs, target audience, and [business](../b/business.md) goals. Common metrics include [Load](../l/load.md) Time, TTFB, TTI, FCP, Speed [Index](../i/index_instrument.md), and Total Page Size. ### Step 2: Gather Baseline Data diff --git a/en/pedia/p/performance_indicators.md b/en/pedia/p/performance_indicators.md index 4a2ff16e..ad61c214 100644 --- a/en/pedia/p/performance_indicators.md +++ b/en/pedia/p/performance_indicators.md @@ -47,7 +47,7 @@ Calmar Ratio = Average [Annual Return](../a/annual_return.md) / Maximum [Drawdow **Importance**: Provides a comprehensive measure by incorporating both [return](../r/return.md) and [risk](../r/risk.md). ## 6. **Alpha** -[Alpha](../a/alpha.md) indicates the algorithm's performance relative to a [benchmark](../b/benchmark.md) [index](../i/index.md). A positive [alpha](../a/alpha.md) indicates outperformance, while a negative [alpha](../a/alpha.md) indicates underperformance. +[Alpha](../a/alpha.md) indicates the algorithm's performance relative to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). A positive [alpha](../a/alpha.md) indicates outperformance, while a negative [alpha](../a/alpha.md) indicates underperformance. **Formula**: ``` diff --git a/en/pedia/p/performance_metrics_in_trading.md b/en/pedia/p/performance_metrics_in_trading.md index f3fa3a33..68ab0327 100644 --- a/en/pedia/p/performance_metrics_in_trading.md +++ b/en/pedia/p/performance_metrics_in_trading.md @@ -80,18 +80,18 @@ In the domain of [algorithmic trading](../a/algorithmic_trading.md), [quantitati ### 7. R-squared (R²) -**Definition**: [R-squared](../r/r-squared_in_trading.md) measures the percentage of an investment's movements that can be explained by movements in a [benchmark](../b/benchmark.md) [index](../i/index.md). +**Definition**: [R-squared](../r/r-squared_in_trading.md) measures the percentage of an investment's movements that can be explained by movements in a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). **Calculation**: -[R-squared](../r/r-squared_in_trading.md) values [range](../r/range.md) between 0 to 1, often expressed as percentages. An [R-squared](../r/r-squared_in_trading.md) of 100% means that all movements of a portfolio are completely explained by movements in the [index](../i/index.md). +[R-squared](../r/r-squared_in_trading.md) values [range](../r/range.md) between 0 to 1, often expressed as percentages. An [R-squared](../r/r-squared_in_trading.md) of 100% means that all movements of a portfolio are completely explained by movements in the [index](../i/index_instrument.md). **Importance**: - Higher [R-squared](../r/r-squared_in_trading.md) values indicate better conformity to the [benchmark](../b/benchmark.md). -- Useful for identifying how closely a strategy follows an [index](../i/index.md). +- Useful for identifying how closely a strategy follows an [index](../i/index_instrument.md). ### 8. Alpha -**Definition**: [Alpha](../a/alpha.md) indicates the [excess return](../e/excess_return.md) of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index.md). +**Definition**: [Alpha](../a/alpha.md) indicates the [excess return](../e/excess_return.md) of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). **Calculation**: \[ \text{[Alpha](../a/alpha.md)} = R - R_B \] @@ -121,7 +121,7 @@ In the domain of [algorithmic trading](../a/algorithmic_trading.md), [quantitati ### 10. Information Ratio -**Definition**: The [Information Ratio](../i/information_ratio.md) measures portfolio returns above the returns of a [benchmark](../b/benchmark.md), usually an [index](../i/index.md), relative to the [volatility](../v/volatility.md) of those returns. +**Definition**: The [Information Ratio](../i/information_ratio.md) measures portfolio returns above the returns of a [benchmark](../b/benchmark.md), usually an [index](../i/index_instrument.md), relative to the [volatility](../v/volatility.md) of those returns. **Calculation**: \[ \text{[Information Ratio](../i/information_ratio.md)} = \frac{R_p - R_b}{\text{[Tracking Error](../t/tracking_error.md)}} \] diff --git a/en/pedia/p/performance_ratio_analysis.md b/en/pedia/p/performance_ratio_analysis.md index b48124b9..befa9c75 100644 --- a/en/pedia/p/performance_ratio_analysis.md +++ b/en/pedia/p/performance_ratio_analysis.md @@ -34,7 +34,7 @@ Performance [ratio analysis](../r/ratio_analysis.md) is an essential aspect of [ \text{[Treynor Ratio](../t/treynor_ratio.md)} = \frac{\text{Portfolio [Return](../r/return.md)} - \text{[Risk](../r/risk.md)-Free Rate}}{\text{Portfolio [Beta](../b/beta.md)}} \] - **Significance**: Focuses on [systematic risk](../s/systematic_risk.md), assuming that the [investor](../i/investor.md) has a diversified portfolio. - - **Application**: Particularly useful for comparing the performance of diversified portfolios or [index](../i/index.md) funds with a similar level of [market risk](../m/market_risk.md). + - **Application**: Particularly useful for comparing the performance of diversified portfolios or [index](../i/index_instrument.md) funds with a similar level of [market risk](../m/market_risk.md). 5. **[Information Ratio](../i/information_ratio.md)** The [Information Ratio](../i/information_ratio.md) measures a [portfolio manager](../p/portfolio_manager.md)'s ability to generate excess returns relative to a [benchmark](../b/benchmark.md), adjusted for the [volatility](../v/volatility.md) of those returns. It is calculated as: diff --git a/en/pedia/p/performance_ratios.md b/en/pedia/p/performance_ratios.md index 111692cf..a2e3acd5 100644 --- a/en/pedia/p/performance_ratios.md +++ b/en/pedia/p/performance_ratios.md @@ -73,11 +73,11 @@ Where: A higher [Omega](../o/omega.md) Ratio signifies that the [trading strategy](../t/trading_strategy.md) offers more favorable returns compared to losses. ## Ulcer Index -The Ulcer [Index](../i/index.md) measures the depth and [duration](../d/duration.md) of drawdowns in a [trading strategy](../t/trading_strategy.md). It's useful for understanding the level of stress or "ulcer" a [trader](../t/trader.md) may experience. +The Ulcer [Index](../i/index_instrument.md) measures the depth and [duration](../d/duration.md) of drawdowns in a [trading strategy](../t/trading_strategy.md). It's useful for understanding the level of stress or "ulcer" a [trader](../t/trader.md) may experience. \[ \text{Ulcer Index} = \sqrt{ \frac{1}{N} \sum_{t=1}^{N} \left( \frac{\text{[Drawdown](../d/drawdown.md)}_t}{\text{Max Price}} \right)^2 } \] -The lower the Ulcer [Index](../i/index.md), the less severe and frequent the drawdowns, indicating a more stable [trading strategy](../t/trading_strategy.md). +The lower the Ulcer [Index](../i/index_instrument.md), the less severe and frequent the drawdowns, indicating a more stable [trading strategy](../t/trading_strategy.md). ## Maximum Drawdown Maximum [Drawdown](../d/drawdown.md) (MDD) quantifies the largest peak-to-[trough](../t/trough.md) decline in the [value](../v/value.md) of a [trading strategy](../t/trading_strategy.md) or portfolio. It provides an indication of historical [risk](../r/risk.md). diff --git a/en/pedia/p/permanent_life_insurance.md b/en/pedia/p/permanent_life_insurance.md index 0a443d77..2765e101 100644 --- a/en/pedia/p/permanent_life_insurance.md +++ b/en/pedia/p/permanent_life_insurance.md @@ -12,7 +12,7 @@ There are several types of permanent [life insurance](../l/life_insurance.md), e ### Universal Life Insurance -[Universal life insurance](../u/universal_life_insurance.md) adds flexibility to the traditional [whole life insurance](../w/whole_life_insurance.md) model. It allows policyholders to adjust their [premium](../p/premium.md) payments and [death benefit](../d/death_benefit.md) amounts, given that there are sufficient funds in the policy's cash [value](../v/value.md) account. [Universal life insurance](../u/universal_life_insurance.md) policies also [accrue](../a/accrue.md) cash [value](../v/value.md), but the [interest rate](../i/interest_rate.md) is often variable, based on prevailing [market](../m/market.md) rates or an [index](../i/index.md). +[Universal life insurance](../u/universal_life_insurance.md) adds flexibility to the traditional [whole life insurance](../w/whole_life_insurance.md) model. It allows policyholders to adjust their [premium](../p/premium.md) payments and [death benefit](../d/death_benefit.md) amounts, given that there are sufficient funds in the policy's cash [value](../v/value.md) account. [Universal life insurance](../u/universal_life_insurance.md) policies also [accrue](../a/accrue.md) cash [value](../v/value.md), but the [interest rate](../i/interest_rate.md) is often variable, based on prevailing [market](../m/market.md) rates or an [index](../i/index_instrument.md). ### Variable Life Insurance diff --git a/en/pedia/p/perpetual_swaps.md b/en/pedia/p/perpetual_swaps.md index a661e3ae..87d97dda 100644 --- a/en/pedia/p/perpetual_swaps.md +++ b/en/pedia/p/perpetual_swaps.md @@ -15,7 +15,7 @@ To keep the price of the perpetual [swap](../s/swap.md) close to the [underlying Perpetual swaps often come with the option to [trade](../t/trade.md) on [margin](../m/margin.md), [offering](../o/offering.md) significant [leverage](../l/leverage.md). On platforms like [BitMEX](../b/bitmex.md), traders can [leverage](../l/leverage.md) up to 100x. High [leverage](../l/leverage.md) allows traders to amplify their potential profits, but it also increases the [risk](../r/risk.md) of significant losses, especially in a highly volatile [market](../m/market.md) like cryptocurrencies. ### Mark Price -To prevent unnecessary liquidations caused by [market manipulation](../m/market_manipulation.md) or temporary [illiquidity](../i/illiquid.md), exchanges use a "mark price" to determine the [value](../v/value.md) of positions for [margin](../m/margin.md) requirements and [liquidation](../l/liquidation.md) purposes. The mark price is usually derived from a combination of the [index](../i/index.md) price of the [underlying asset](../u/underlying_asset.md) and the funding rate, providing a fairer and more stable measure of the perpetual [swap](../s/swap.md)'s [value](../v/value.md). +To prevent unnecessary liquidations caused by [market manipulation](../m/market_manipulation.md) or temporary [illiquidity](../i/illiquid.md), exchanges use a "mark price" to determine the [value](../v/value.md) of positions for [margin](../m/margin.md) requirements and [liquidation](../l/liquidation.md) purposes. The mark price is usually derived from a combination of the [index](../i/index_instrument.md) price of the [underlying asset](../u/underlying_asset.md) and the funding rate, providing a fairer and more stable measure of the perpetual [swap](../s/swap.md)'s [value](../v/value.md). ## Algorithmic Trading Strategies with Perpetual Swaps diff --git a/en/pedia/p/personal_consumption_expenditures_(pce).md b/en/pedia/p/personal_consumption_expenditures_(pce).md index 686b5953..d2b4083e 100644 --- a/en/pedia/p/personal_consumption_expenditures_(pce).md +++ b/en/pedia/p/personal_consumption_expenditures_(pce).md @@ -4,7 +4,7 @@ ## Introduction -Personal Consumption Expenditures (PCE) data presents insights into the economic well-being and spending patterns of individuals. The PCE [index](../i/index.md) is maintained and published by the Bureau of Economic Analysis (BEA), part of the U.S. Department of [Commerce](../c/commerce.md). This measure is instrumental for policymakers, economists, and financial analysts in understanding macroeconomic trends and [forecasting](../f/forecasting.md) future economic performance. +Personal Consumption Expenditures (PCE) data presents insights into the economic well-being and spending patterns of individuals. The PCE [index](../i/index_instrument.md) is maintained and published by the Bureau of Economic Analysis (BEA), part of the U.S. Department of [Commerce](../c/commerce.md). This measure is instrumental for policymakers, economists, and financial analysts in understanding macroeconomic trends and [forecasting](../f/forecasting.md) future economic performance. ## Components of PCE @@ -33,11 +33,11 @@ Services represent a significant portion of the PCE and cover a wide [range](../ ## PCE Price Index -The PCE Price [Index](../i/index.md) is a vital measure of [inflation](../i/inflation.md). It reflects the changes in the prices of goods and services included in the PCE. This [index](../i/index.md) is preferred by the Federal Reserve for setting [monetary policy](../m/monetary_policy.md) due to its broader coverage and ability to reflect consumer behavior changes. +The PCE Price [Index](../i/index_instrument.md) is a vital measure of [inflation](../i/inflation.md). It reflects the changes in the prices of goods and services included in the PCE. This [index](../i/index_instrument.md) is preferred by the Federal Reserve for setting [monetary policy](../m/monetary_policy.md) due to its broader coverage and ability to reflect consumer behavior changes. ### Core PCE Price Index -The Core PCE Price [Index](../i/index.md) excludes the volatile categories of food and energy to provide a clearer view of the [underlying](../u/underlying.md) [inflation](../i/inflation.md) trends. It's a critical [indicator](../i/indicator.md) for economic policymakers, particularly the Federal Reserve, in making decisions regarding [interest](../i/interest.md) rates and other [monetary policy](../m/monetary_policy.md) tools. +The Core PCE Price [Index](../i/index_instrument.md) excludes the volatile categories of food and energy to provide a clearer view of the [underlying](../u/underlying.md) [inflation](../i/inflation.md) trends. It's a critical [indicator](../i/indicator.md) for economic policymakers, particularly the Federal Reserve, in making decisions regarding [interest](../i/interest.md) rates and other [monetary policy](../m/monetary_policy.md) tools. ## Importance of PCE diff --git a/en/pedia/p/peruvian_stock_exchange_(bvl).md b/en/pedia/p/peruvian_stock_exchange_(bvl).md index 2fdc17f1..c032a59b 100644 --- a/en/pedia/p/peruvian_stock_exchange_(bvl).md +++ b/en/pedia/p/peruvian_stock_exchange_(bvl).md @@ -18,7 +18,7 @@ The Lima Stock [Exchange](../e/exchange.md) was founded on December 31, 1860. It ### Indices -The BVL offers several indices to gauge [market](../m/market.md) performance, the most prominent of which is the S&P/BVL Peru General [Index](../i/index.md) (SPBLPGPT). This [index](../i/index.md) includes the largest and most [liquid](../l/liquid.md) [stocks](../s/stock.md) on the [exchange](../e/exchange.md). Other indices include the S&P/BVL Lima 25 and various sectoral indices. +The BVL offers several indices to gauge [market](../m/market.md) performance, the most prominent of which is the S&P/BVL Peru General [Index](../i/index_instrument.md) (SPBLPGPT). This [index](../i/index_instrument.md) includes the largest and most [liquid](../l/liquid.md) [stocks](../s/stock.md) on the [exchange](../e/exchange.md). Other indices include the S&P/BVL Lima 25 and various sectoral indices. ## Trading Mechanism @@ -88,7 +88,7 @@ The BVL has invested in modern technology to enhance trading [efficiency](../e/e ### Historical Performance -The BVL has shown significant growth over the years, driven largely by the [mining](../m/mining.md) sector and economic reforms. The S&P/BVL Peru General [Index](../i/index.md) has historically performed well during periods of high [commodity](../c/commodity.md) prices, reflecting the [exchange](../e/exchange.md)’s sensitivity to global [economic conditions](../e/economic_conditions.md). +The BVL has shown significant growth over the years, driven largely by the [mining](../m/mining.md) sector and economic reforms. The S&P/BVL Peru General [Index](../i/index_instrument.md) has historically performed well during periods of high [commodity](../c/commodity.md) prices, reflecting the [exchange](../e/exchange.md)’s sensitivity to global [economic conditions](../e/economic_conditions.md). ### Recent Trends diff --git a/en/pedia/p/philippine_stock_exchange_(pse).md b/en/pedia/p/philippine_stock_exchange_(pse).md index 7aec0012..bcc2e957 100644 --- a/en/pedia/p/philippine_stock_exchange_(pse).md +++ b/en/pedia/p/philippine_stock_exchange_(pse).md @@ -8,15 +8,15 @@ The Philippine Stock [Exchange](../e/exchange.md) (PSE) is the primary stock [ex The roots of the PSE can be traced back to the Manila Stock [Exchange](../e/exchange.md), which was established on August 8, 1927. The Makati Stock [Exchange](../e/exchange.md) was established later on May 27, 1963. Both exchanges operated independently for many years, leading to inefficiencies and operational redundancies. To streamline operations and foster a more [robust](../r/robust.md) [capital](../c/capital.md) [market](../m/market.md), these two entities were merged to create the Philippine Stock [Exchange](../e/exchange.md) in 1992. ### Evolution -In the years following its establishment, the PSE has undergone significant developments, including the introduction of automated trading in 1993, the launch of the PSE Composite [Index](../i/index.md) (PSEi), and its subsequent modernization efforts. Notably, the PSE made its own public [offering](../o/offering.md) in December 2003, further aligning its operations with international standards and [best practices](../b/best_practices.md). +In the years following its establishment, the PSE has undergone significant developments, including the introduction of automated trading in 1993, the launch of the PSE Composite [Index](../i/index_instrument.md) (PSEi), and its subsequent modernization efforts. Notably, the PSE made its own public [offering](../o/offering.md) in December 2003, further aligning its operations with international standards and [best practices](../b/best_practices.md). ## Market Structure ### Indices The Philippine Stock [Exchange](../e/exchange.md) operates several indices to track the performance of the [market](../m/market.md): -- **PSEi (PSE Composite [Index](../i/index.md))**: The premier stock [market index](../m/market_index.md) that tracks the performance of 30 of the largest and most actively traded [stocks](../s/stock.md) [listed](../l/listed.md) on the [exchange](../e/exchange.md). -- **All [Shares](../s/shares.md) [Index](../i/index.md)**: A broader [index](../i/index.md) that includes all the companies [listed](../l/listed.md) on the PSE. +- **PSEi (PSE Composite [Index](../i/index_instrument.md))**: The premier stock [market index](../m/market_index.md) that tracks the performance of 30 of the largest and most actively traded [stocks](../s/stock.md) [listed](../l/listed.md) on the [exchange](../e/exchange.md). +- **All [Shares](../s/shares.md) [Index](../i/index_instrument.md)**: A broader [index](../i/index_instrument.md) that includes all the companies [listed](../l/listed.md) on the PSE. - **Sectoral Indices**: These include indices that focus on specific sectors such as Financials, Industrial, Holding Firms, Property, Services, and [Mining](../m/mining.md) and Oil. ### Trading Mechanism diff --git a/en/pedia/p/physical_vs._cash_settlement.md b/en/pedia/p/physical_vs._cash_settlement.md index 337d93f2..1e46aa5b 100644 --- a/en/pedia/p/physical_vs._cash_settlement.md +++ b/en/pedia/p/physical_vs._cash_settlement.md @@ -38,11 +38,11 @@ Cash settlement, on the other hand, does not involve the delivery of the [underl ### Examples of Cash Settlement -- **Stock [Index Futures](../i/index_futures.md)**: [Futures contracts](../f/futures_contracts.md) based on stock indices like the S&P 500 or the Dow Jones Industrial Average typically use cash settlement. Traders receive or pay the difference between the contract price and the [index](../i/index.md) closing price on the settlement date. +- **Stock [Index Futures](../i/index_futures.md)**: [Futures contracts](../f/futures_contracts.md) based on stock indices like the S&P 500 or the Dow Jones Industrial Average typically use cash settlement. Traders receive or pay the difference between the contract price and the [index](../i/index_instrument.md) closing price on the settlement date. - **[Currency](../c/currency.md) [Futures](../f/futures.md)**: Certain [currency](../c/currency.md) [futures](../f/futures.md) can also be cash-settled. An example is the [Euro](../e/euro.md) FX [Futures](../f/futures.md) traded on the CME, where settlement is in cash rather than actual [currency](../c/currency.md) delivery. [CME Group](https://www.cmegroup.com/) -- **[Commodity](../c/commodity.md) Indices**: [Futures contracts](../f/futures_contracts.md) based on [commodity](../c/commodity.md) indices, such as the [Bloomberg](../b/bloomberg.md) [Commodity](../c/commodity.md) [Index](../i/index.md), are usually settled in cash. +- **[Commodity](../c/commodity.md) Indices**: [Futures contracts](../f/futures_contracts.md) based on [commodity](../c/commodity.md) indices, such as the [Bloomberg](../b/bloomberg.md) [Commodity](../c/commodity.md) [Index](../i/index_instrument.md), are usually settled in cash. ## Comparison: Physical vs. Cash Settlement diff --git a/en/pedia/p/pivot_point_strategies.md b/en/pedia/p/pivot_point_strategies.md index 2d4b4a0c..7c8917ff 100644 --- a/en/pedia/p/pivot_point_strategies.md +++ b/en/pedia/p/pivot_point_strategies.md @@ -132,7 +132,7 @@ For markets that tend to [trade](../t/trade.md) within tight ranges, the [Range] Combining [Pivot Points](../p/pivot_points.md) with other [technical indicators](../t/technical_indicators.md) can enhance the effectiveness of [trading strategies](../t/trading_strategies.md). Commonly combined indicators include: - **Moving Averages**: To confirm the [trend](../t/trend.md) direction when a [Pivot Point](../p/pivot_point.md) level is reached. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: To identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions at [Pivot Point](../p/pivot_point.md) levels. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: To identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions at [Pivot Point](../p/pivot_point.md) levels. - **MACD (Moving Average Convergence [Divergence](../d/divergence.md))**: To validate [momentum](../m/momentum.md) at [Pivot Point](../p/pivot_point.md) levels. ## Example of an Algorithm Using Pivot Points diff --git a/en/pedia/p/pivot_points.md b/en/pedia/p/pivot_points.md index f7af1aed..77c0fbbb 100644 --- a/en/pedia/p/pivot_points.md +++ b/en/pedia/p/pivot_points.md @@ -41,7 +41,7 @@ A [mean reversion](../m/mean_reversion.md) strategy might use pivot points by pl ## Advanced Concepts and Tools ### Incorporating Other Indicators -Combining pivot points with other [technical indicators](../t/technical_indicators.md) such as Moving Averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and [Bollinger Bands](../b/bollinger_bands.md) can enhance the accuracy of [trading signals](../t/trading_signals.md) generated by algorithms. This multifaceted approach aims to filter out [false signals](../f/false_signals_in_trading.md) by confirming trades with [multiple](../m/multiple.md) indicators. +Combining pivot points with other [technical indicators](../t/technical_indicators.md) such as Moving Averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and [Bollinger Bands](../b/bollinger_bands.md) can enhance the accuracy of [trading signals](../t/trading_signals.md) generated by algorithms. This multifaceted approach aims to filter out [false signals](../f/false_signals_in_trading.md) by confirming trades with [multiple](../m/multiple.md) indicators. ### Machine Learning and Artificial Intelligence Machine learning and AI are revolutionizing the use of pivot points in trading. Algorithms can be trained to recognize patterns and relationships between pivot points and various [market](../m/market.md) conditions. These advanced systems can adapt and improve over time, enhancing their predictive accuracy. diff --git a/en/pedia/p/pooled_funds.md b/en/pedia/p/pooled_funds.md index 1d3a2da9..11ba571f 100644 --- a/en/pedia/p/pooled_funds.md +++ b/en/pedia/p/pooled_funds.md @@ -47,7 +47,7 @@ ETFs are publicly traded funds that [hold](../h/hold.md) a basket of assets. The #### Characteristics: - **Trading**: Can be bought and sold throughout the trading day at [market](../m/market.md) prices. - **[Transparency](../t/transparency.md)**: [Holdings](../h/holdings.md) are typically disclosed on a daily [basis](../b/basis.md). -- **[Index](../i/index.md) Tracking**: Many ETFs aim to replicate the performance of an [index](../i/index.md). +- **[Index](../i/index_instrument.md) Tracking**: Many ETFs aim to replicate the performance of an [index](../i/index_instrument.md). #### Pros: - **Flexibility**: [Trade](../t/trade.md) throughout the day at [market](../m/market.md) prices. diff --git a/en/pedia/p/portfolio_alpha.md b/en/pedia/p/portfolio_alpha.md index 046a01f5..ee5aa7b2 100644 --- a/en/pedia/p/portfolio_alpha.md +++ b/en/pedia/p/portfolio_alpha.md @@ -1,14 +1,14 @@ # Portfolio Alpha -Portfolio [Alpha](../a/alpha.md) is a critical concept in the domain of [algorithmic trading](../a/algorithmic_trading.md). It represents the excess returns generated by a portfolio over its [benchmark](../b/benchmark.md) [index](../i/index.md) or [expected return](../e/expected_return.md). Achieving positive [Alpha](../a/alpha.md) is the primary goal of most portfolio managers, traders, and investment firms. This extensive examination [will](../w/will.md) cover the definition, importance, calculation methods, strategies to achieve [Alpha](../a/alpha.md), [risk management](../r/risk_management.md), technological advancements, and case studies of firms that have consistently generated [Alpha](../a/alpha.md) in their trading portfolios. +Portfolio [Alpha](../a/alpha.md) is a critical concept in the domain of [algorithmic trading](../a/algorithmic_trading.md). It represents the excess returns generated by a portfolio over its [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) or [expected return](../e/expected_return.md). Achieving positive [Alpha](../a/alpha.md) is the primary goal of most portfolio managers, traders, and investment firms. This extensive examination [will](../w/will.md) cover the definition, importance, calculation methods, strategies to achieve [Alpha](../a/alpha.md), [risk management](../r/risk_management.md), technological advancements, and case studies of firms that have consistently generated [Alpha](../a/alpha.md) in their trading portfolios. ## Definition and Importance ### Definition of Alpha -In the realm of [finance](../f/finance.md), [Alpha](../a/alpha.md) (α) is a measure of the [active return](../a/active_return.md) on an investment, the performance of that investment compared to a suitable [market index](../m/market_index.md). It is a critical gauge of the skill of an [investment manager](../i/investment_manager.md). Mathematically, [Alpha](../a/alpha.md) is the intercept in the regression equation of the [excess return](../e/excess_return.md) of the investment over the [risk](../r/risk.md)-free rate versus the [excess return](../e/excess_return.md) of the [benchmark](../b/benchmark.md) [index](../i/index.md). +In the realm of [finance](../f/finance.md), [Alpha](../a/alpha.md) (α) is a measure of the [active return](../a/active_return.md) on an investment, the performance of that investment compared to a suitable [market index](../m/market_index.md). It is a critical gauge of the skill of an [investment manager](../i/investment_manager.md). Mathematically, [Alpha](../a/alpha.md) is the intercept in the regression equation of the [excess return](../e/excess_return.md) of the investment over the [risk](../r/risk.md)-free rate versus the [excess return](../e/excess_return.md) of the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). ### Importance of Alpha -Generating positive [Alpha](../a/alpha.md) indicates that the investment or [portfolio manager](../p/portfolio_manager.md) has effectively outperformed the [market](../m/market.md) through skillful selection of securities, superior [trading strategies](../t/trading_strategies.md), or timely [market](../m/market.md) insights. Conversely, a negative [Alpha](../a/alpha.md) indicates underperformance relative to the [benchmark](../b/benchmark.md) [index](../i/index.md). Investors actively seek managers who can generate positive [Alpha](../a/alpha.md) as it suggests higher potential returns for the same level of [risk](../r/risk.md) compared to the overall [market](../m/market.md). +Generating positive [Alpha](../a/alpha.md) indicates that the investment or [portfolio manager](../p/portfolio_manager.md) has effectively outperformed the [market](../m/market.md) through skillful selection of securities, superior [trading strategies](../t/trading_strategies.md), or timely [market](../m/market.md) insights. Conversely, a negative [Alpha](../a/alpha.md) indicates underperformance relative to the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). Investors actively seek managers who can generate positive [Alpha](../a/alpha.md) as it suggests higher potential returns for the same level of [risk](../r/risk.md) compared to the overall [market](../m/market.md). ## Calculation Methods @@ -24,7 +24,7 @@ Where: - \( R_m \) is the [market](../m/market.md) [return](../r/return.md) ### Regression Analysis -In more [quantitative approaches](../q/quantitative_approaches.md), [Alpha](../a/alpha.md) can be determined using [regression analysis](../r/regression_analysis.md) of the portfolio returns against the returns of the [benchmark](../b/benchmark.md) [index](../i/index.md). The regression model is: +In more [quantitative approaches](../q/quantitative_approaches.md), [Alpha](../a/alpha.md) can be determined using [regression analysis](../r/regression_analysis.md) of the portfolio returns against the returns of the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). The regression model is: \[ R_i - R_f = \[alpha](../a/alpha.md) + \[beta](../b/beta.md) (R_m - R_f) + \epsilon \] diff --git a/en/pedia/p/portfolio_duration.md b/en/pedia/p/portfolio_duration.md index 52442530..64790a48 100644 --- a/en/pedia/p/portfolio_duration.md +++ b/en/pedia/p/portfolio_duration.md @@ -63,7 +63,7 @@ Investors can use [duration](../d/duration.md) to position their portfolios alon ### Performance Measurement -Portfolio [duration](../d/duration.md) is also a key [factor](../f/factor.md) in performance measurement and [attribution analysis](../a/attribution_analysis.md). By comparing the [duration](../d/duration.md) of the portfolio to the [duration](../d/duration.md) of a [benchmark](../b/benchmark.md) [index](../i/index.md), investors can assess how much of the performance is attributed to [interest rate](../i/interest_rate.md) movements versus other factors such as [credit](../c/credit.md) selection or sector allocation. +Portfolio [duration](../d/duration.md) is also a key [factor](../f/factor.md) in performance measurement and [attribution analysis](../a/attribution_analysis.md). By comparing the [duration](../d/duration.md) of the portfolio to the [duration](../d/duration.md) of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), investors can assess how much of the performance is attributed to [interest rate](../i/interest_rate.md) movements versus other factors such as [credit](../c/credit.md) selection or sector allocation. ## Practical Considerations diff --git a/en/pedia/p/portfolio_hedging.md b/en/pedia/p/portfolio_hedging.md index b2e720a7..75f5a4f5 100644 --- a/en/pedia/p/portfolio_hedging.md +++ b/en/pedia/p/portfolio_hedging.md @@ -9,7 +9,7 @@ Hedging entails taking a position in one [market](../m/market.md) to [offset](../o/offset.md) and balance the [risk](../r/risk.md) related to an opposite position in a different [market](../m/market.md). Essentially, it’s similar to taking out an [insurance](../i/insurance.md) policy to minimize the exposure from adverse price movements. The position taken to [hedge](../h/hedge.md) the portfolio could be in various forms, such as: 1. **[Derivative](../d/derivative.md) Instruments**: [Options](../o/options.md), [futures](../f/futures.md), forwards, and swaps. -2. **[Inverse ETFs](../i/inverse_etfs.md)**: [Exchange](../e/exchange.md)-traded funds that increase in [value](../v/value.md) as the [underlying](../u/underlying.md) [index](../i/index.md) declines. +2. **[Inverse ETFs](../i/inverse_etfs.md)**: [Exchange](../e/exchange.md)-traded funds that increase in [value](../v/value.md) as the [underlying](../u/underlying.md) [index](../i/index_instrument.md) declines. 3. **[Short Selling](../s/short_selling.md)**: Borrowing and selling assets with the aim to repurchase them later at a lower price. 4. **[Diversification](../d/diversification.md)**: Holding various assets with low or [negative correlation](../n/negative_correlation.md). @@ -35,7 +35,7 @@ Hedging plays a vital role in [portfolio management](../p/portfolio_management.m - **[Put Options](../p/put_options.md)**: Provide the right to sell an [asset](../a/asset.md). **Use Case Example:** -To [hedge](../h/hedge.md) a stock portfolio, an [investor](../i/investor.md) can purchase [put options](../p/put_options.md) on individual [stocks](../s/stock.md) or a stock [index](../i/index.md). If the [market](../m/market.md) declines, the [value](../v/value.md) of the puts increases, offsetting the portfolio's loss. +To [hedge](../h/hedge.md) a stock portfolio, an [investor](../i/investor.md) can purchase [put options](../p/put_options.md) on individual [stocks](../s/stock.md) or a stock [index](../i/index_instrument.md). If the [market](../m/market.md) declines, the [value](../v/value.md) of the puts increases, offsetting the portfolio's loss. #### Futures and Forwards @@ -46,7 +46,7 @@ A [portfolio manager](../p/portfolio_manager.md) expecting a decline in the [val ### Inverse ETFs -[Inverse ETFs](../i/inverse_etfs.md) are designed to move in the opposite direction of a specified [index](../i/index.md) or [benchmark](../b/benchmark.md). They are used to [profit](../p/profit.md) from a decline in the [value](../v/value.md) of the [underlying](../u/underlying.md) [index](../i/index.md) without the need for [short selling](../s/short_selling.md). +[Inverse ETFs](../i/inverse_etfs.md) are designed to move in the opposite direction of a specified [index](../i/index_instrument.md) or [benchmark](../b/benchmark.md). They are used to [profit](../p/profit.md) from a decline in the [value](../v/value.md) of the [underlying](../u/underlying.md) [index](../i/index_instrument.md) without the need for [short selling](../s/short_selling.md). **Use Case Example:** An [investor](../i/investor.md) could purchase an [inverse ETF](../i/inverse_etf.md) corresponding to the S&P 500 to [hedge](../h/hedge.md) against a potential downturn in the broader [stock market](../s/stock_market.md). @@ -99,7 +99,7 @@ Hedging is not a one-time activity. Continuous monitoring and adjustments are ne An [equity](../e/equity.md) portfolio worth $10 million, heavily invested in technology [stocks](../s/stock.md), is at [risk](../r/risk.md) due to anticipated [market](../m/market.md) downturns. **Solution:** -- Purchase [put options](../p/put_options.md) on the [NASDAQ](../n/nasdaq.md) [index](../i/index.md). +- Purchase [put options](../p/put_options.md) on the [NASDAQ](../n/nasdaq.md) [index](../i/index_instrument.md). - [Options](../o/options.md) [premium](../p/premium.md) costs $200,000 for protection until the next quarter. - If the [NASDAQ](../n/nasdaq.md) falls by 10%, the portfolio [value](../v/value.md) declines to $9 million. - The [put options](../p/put_options.md), however, increase in [value](../v/value.md) by $1 million, offsetting the loss. diff --git a/en/pedia/p/portfolio_investment.md b/en/pedia/p/portfolio_investment.md index 3288e799..8e1a282e 100644 --- a/en/pedia/p/portfolio_investment.md +++ b/en/pedia/p/portfolio_investment.md @@ -14,7 +14,7 @@ Bonds are [debt](../d/debt.md) instruments issued by corporations, municipalitie Mutual funds pool [money](../m/money.md) from many investors to purchase a diversified portfolio of [stocks](../s/stock.md), bonds, or other securities. Professional [fund](../f/fund.md) managers [handle](../h/handle.md) the investment decisions, making mutual funds attractive to individuals who prefer not to manage investments themselves. [Diversification](../d/diversification.md) and professional management are significant advantages of mutual funds. ### 4. **Exchange-Traded Funds (ETFs)** -ETFs operate similarly to mutual funds but [trade](../t/trade.md) like [stocks](../s/stock.md) on an [exchange](../e/exchange.md). They are designed to track the performance of a specific [index](../i/index.md), sector, [commodity](../c/commodity.md), or other assets. ETFs [offer](../o/offer.md) the benefits of [diversification](../d/diversification.md) and [liquidity](../l/liquidity.md) and usually have lower fees compared to mutual funds. +ETFs operate similarly to mutual funds but [trade](../t/trade.md) like [stocks](../s/stock.md) on an [exchange](../e/exchange.md). They are designed to track the performance of a specific [index](../i/index_instrument.md), sector, [commodity](../c/commodity.md), or other assets. ETFs [offer](../o/offer.md) the benefits of [diversification](../d/diversification.md) and [liquidity](../l/liquidity.md) and usually have lower fees compared to mutual funds. ### 5. **Real Estate Investment Trusts (REITs)** REITs allow individuals to invest in large-scale [real estate](../r/real_estate.md) properties without owning the properties themselves. REITs pool funds from many investors to purchase and manage [income](../i/income.md)-generating [real estate](../r/real_estate.md). They are traded on major exchanges, providing [liquidity](../l/liquidity.md), and typically [offer](../o/offer.md) high [dividend](../d/dividend.md) yields. @@ -28,10 +28,10 @@ Alternative investments encompass a wide [range](../r/range.md) of assets outsid ## Portfolio Management Strategies ### 1. **Active Management** -[Active portfolio management](../a/active_portfolio_management.md) involves frequent buying and selling of assets to [outperform](../o/outperform.md) a specific [benchmark](../b/benchmark.md) or [index](../i/index.md). Managers rely on [market research](../m/market_research.md), analysis, and individual [security selection](../s/security_selection.md) to achieve superior returns. This approach can [yield](../y/yield.md) high returns but also has the potential for higher costs due to [transaction fees](../t/transaction_fees.md) and management expenses. +[Active portfolio management](../a/active_portfolio_management.md) involves frequent buying and selling of assets to [outperform](../o/outperform.md) a specific [benchmark](../b/benchmark.md) or [index](../i/index_instrument.md). Managers rely on [market research](../m/market_research.md), analysis, and individual [security selection](../s/security_selection.md) to achieve superior returns. This approach can [yield](../y/yield.md) high returns but also has the potential for higher costs due to [transaction fees](../t/transaction_fees.md) and management expenses. ### 2. **Passive Management** -Passive management aims to match the performance of a specific [market index](../m/market_index.md) by replicating its [holdings](../h/holdings.md). This strategy requires little buying and selling, resulting in lower fees and expenses. [Index](../i/index.md) funds and ETFs are common vehicles for passive investment. The primary advantage is lower costs and reduced [risk](../r/risk.md) through broad [diversification](../d/diversification.md). +Passive management aims to match the performance of a specific [market index](../m/market_index.md) by replicating its [holdings](../h/holdings.md). This strategy requires little buying and selling, resulting in lower fees and expenses. [Index](../i/index_instrument.md) funds and ETFs are common vehicles for passive investment. The primary advantage is lower costs and reduced [risk](../r/risk.md) through broad [diversification](../d/diversification.md). ### 3. **Growth Investing** [Growth investing](../g/growth_investing.md) focuses on [investing](../i/investing.md) in companies with above-average growth potential, typically reflected in increasing revenues, [earnings](../e/earnings.md), and [market share](../m/market_share.md). Growth investors seek [capital](../c/capital.md) appreciation rather than dividends. This strategy can be higher [risk](../r/risk.md), as [growth stocks](../g/growth_stocks.md) often [trade](../t/trade.md) at higher valuations. diff --git a/en/pedia/p/portfolio_manager.md b/en/pedia/p/portfolio_manager.md index 9dc3ee37..d1cffffe 100644 --- a/en/pedia/p/portfolio_manager.md +++ b/en/pedia/p/portfolio_manager.md @@ -45,7 +45,7 @@ Managing [risk](../r/risk.md) is a key aspect of [portfolio management](../p/par ### Passive Portfolio Management Passive [portfolio management](../p/par.md), also known as [index investing](../i/index_investing.md), involves creating a portfolio designed to match the returns of a specific [market index](../m/market_index.md). -- **[Index](../i/index.md) Funds**: [Investing](../i/investing.md) in mutual funds or ETFs that replicate the performance of a [market index](../m/market_index.md). +- **[Index](../i/index_instrument.md) Funds**: [Investing](../i/investing.md) in mutual funds or ETFs that replicate the performance of a [market index](../m/market_index.md). - **[Buy and Hold](../b/buy_and_hold.md)**: Adopting a long-term [investment strategy](../i/investment_strategy.md) with minimal buying and selling activities. - **Low Costs**: Maintaining lower management fees as there is less active trading and research involved. diff --git a/en/pedia/p/portfolio_of_financial_assets.md b/en/pedia/p/portfolio_of_financial_assets.md index f48cbd60..f8f9fab3 100644 --- a/en/pedia/p/portfolio_of_financial_assets.md +++ b/en/pedia/p/portfolio_of_financial_assets.md @@ -11,7 +11,7 @@ A portfolio of financial assets refers to a collection of investments held by an Bonds are [debt](../d/debt.md) securities issued by corporations, municipalities, and governments to raise [capital](../c/capital.md). When an [investor](../i/investor.md) buys a [bond](../b/bond.md), they are essentially lending [money](../m/money.md) to the [issuer](../i/issuer.md) in [exchange](../e/exchange.md) for periodic [interest](../i/interest.md) payments and the [return](../r/return.md) of the [bond](../b/bond.md)'s [face value](../f/face_value.md) at [maturity](../m/maturity.md). Bonds are generally considered lower-[risk](../r/risk.md) investments compared to [stocks](../s/stock.md) and can provide a steady [income](../i/income.md) stream. ### 3. **Mutual Funds** -Mutual funds pool [money](../m/money.md) from [multiple](../m/multiple.md) investors to purchase a diversified portfolio of [stocks](../s/stock.md), bonds, or other securities. Managed by professional [fund](../f/fund.md) managers, mutual funds [offer](../o/offer.md) individual investors access to [diversification](../d/diversification.md) and professional management. They come in various types, such as [index](../i/index.md) funds, [bond](../b/bond.md) funds, [money market](../m/money_market.md) funds, and sector-specific funds. +Mutual funds pool [money](../m/money.md) from [multiple](../m/multiple.md) investors to purchase a diversified portfolio of [stocks](../s/stock.md), bonds, or other securities. Managed by professional [fund](../f/fund.md) managers, mutual funds [offer](../o/offer.md) individual investors access to [diversification](../d/diversification.md) and professional management. They come in various types, such as [index](../i/index_instrument.md) funds, [bond](../b/bond.md) funds, [money market](../m/money_market.md) funds, and sector-specific funds. ### 4. **Exchange-Traded Funds (ETFs)** ETFs are similar to mutual funds in that they pool [investor](../i/investor.md) funds to buy a diversified [range](../r/range.md) of assets. However, ETFs [trade](../t/trade.md) on stock exchanges like individual [stocks](../s/stock.md), [offering](../o/offering.md) greater flexibility and [liquidity](../l/liquidity.md). They often have lower expenses than mutual funds and can track specific indexes, sectors, or [asset](../a/asset.md) classes. @@ -40,12 +40,12 @@ Effective [risk management](../r/risk_management.md) involves identifying, asses [Rebalancing](../r/rebalancing.md) is the practice of periodically adjusting the portfolio to maintain the desired [asset allocation](../a/asset_allocation.md). This may involve selling overperforming assets and buying underperforming ones. [Rebalancing](../r/rebalancing.md) helps manage [risk](../r/risk.md) and ensures the portfolio remains aligned with the [investor](../i/investor.md)'s [investment strategy](../i/investment_strategy.md). ### 5. **Active vs. Passive Management** -[Active management](../a/active_management.md) involves a hands-on approach where [fund](../f/fund.md) managers make investment decisions based on [market research](../m/market_research.md) and analysis. The goal is to [outperform](../o/outperform.md) [market](../m/market.md) benchmarks. Passive management, on the other hand, aims to replicate the performance of a specific [index](../i/index.md) by tracking it. Passive strategies typically have lower costs and are based on the belief that it is difficult to consistently [outperform](../o/outperform.md) the [market](../m/market.md). +[Active management](../a/active_management.md) involves a hands-on approach where [fund](../f/fund.md) managers make investment decisions based on [market research](../m/market_research.md) and analysis. The goal is to [outperform](../o/outperform.md) [market](../m/market.md) benchmarks. Passive management, on the other hand, aims to replicate the performance of a specific [index](../i/index_instrument.md) by tracking it. Passive strategies typically have lower costs and are based on the belief that it is difficult to consistently [outperform](../o/outperform.md) the [market](../m/market.md). ## Performance Measurement and Evaluation ### 1. **Benchmarking** -Benchmarking involves comparing the portfolio's performance against a relevant [market index](../m/market_index.md) or [benchmark](../b/benchmark.md). Common benchmarks include the S&P 500 for US equities, the FTSE 100 for UK equities, and the [Bloomberg](../b/bloomberg.md) Barclays US Aggregate [Bond](../b/bond.md) [Index](../i/index.md) for US bonds. Benchmarking helps assess the effectiveness of the [investment strategy](../i/investment_strategy.md). +Benchmarking involves comparing the portfolio's performance against a relevant [market index](../m/market_index.md) or [benchmark](../b/benchmark.md). Common benchmarks include the S&P 500 for US equities, the FTSE 100 for UK equities, and the [Bloomberg](../b/bloomberg.md) Barclays US Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) for US bonds. Benchmarking helps assess the effectiveness of the [investment strategy](../i/investment_strategy.md). ### 2. **Risk-Adjusted Returns** [Risk-adjusted return](../r/risk-adjusted_return.md) measures the [return](../r/return.md) of an investment relative to its [risk](../r/risk.md). Common metrics include the [Sharpe Ratio](../s/sharpe_ratio.md), which measures [excess return](../e/excess_return.md) per unit of [risk](../r/risk.md), and the [Sortino Ratio](../s/sortino_ratio.md), which focuses on [downside risk](../d/downside_risk.md). These metrics help evaluate whether an investment's returns are sufficient to justify its [risk](../r/risk.md). diff --git a/en/pedia/p/portfolio_performance.md b/en/pedia/p/portfolio_performance.md index 8f8a5cd0..37ede6de 100644 --- a/en/pedia/p/portfolio_performance.md +++ b/en/pedia/p/portfolio_performance.md @@ -31,7 +31,7 @@ Similar to the [Sharpe Ratio](../s/sharpe_ratio.md), the [Sortino Ratio](../s/so where \( \sigma_d \) is the [downside deviation](../d/downside_deviation.md). #### 5. **Alpha** -[Alpha](../a/alpha.md) measures the [excess return](../e/excess_return.md) of a portfolio relative to a [benchmark](../b/benchmark.md) [index](../i/index.md), indicating the portfolio’s ability to beat the [market](../m/market.md). +[Alpha](../a/alpha.md) measures the [excess return](../e/excess_return.md) of a portfolio relative to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), indicating the portfolio’s ability to beat the [market](../m/market.md). \[ \[alpha](../a/alpha.md) = R_p - (R_f + \[beta](../b/beta.md) (R_m - R_f)) \] diff --git a/en/pedia/p/portfolio_performance_metrics.md b/en/pedia/p/portfolio_performance_metrics.md index 9bca822d..ad007e9c 100644 --- a/en/pedia/p/portfolio_performance_metrics.md +++ b/en/pedia/p/portfolio_performance_metrics.md @@ -76,7 +76,7 @@ The [Sortino Ratio](../s/sortino_ratio.md) provides a clearer picture of the por ## 6. Beta -[Beta](../b/beta.md) measures the sensitivity of the portfolio's [return](../r/return.md) to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index.md) (often the [market](../m/market.md)). +[Beta](../b/beta.md) measures the sensitivity of the portfolio's [return](../r/return.md) to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) (often the [market](../m/market.md)). **Formula:** @@ -92,7 +92,7 @@ A [Beta](../b/beta.md) greater than 1 indicates higher sensitivity to [market](. ## 7. Alpha -[Alpha](../a/alpha.md) represents the portfolio's performance relative to a [benchmark](../b/benchmark.md) [index](../i/index.md), adjusted for [market](../m/market.md)-related [risk](../r/risk.md) ([Beta](../b/beta.md)). +[Alpha](../a/alpha.md) represents the portfolio's performance relative to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), adjusted for [market](../m/market.md)-related [risk](../r/risk.md) ([Beta](../b/beta.md)). **Formula:** @@ -157,7 +157,7 @@ The [Treynor Ratio](../t/treynor_ratio.md), like the [Sharpe Ratio](../s/sharpe_ ## 12. R-Squared -[R-Squared](../r/r-squared_in_trading.md) measures the proportion of the portfolio's movement that can be explained by movements in a [benchmark](../b/benchmark.md) [index](../i/index.md). +[R-Squared](../r/r-squared_in_trading.md) measures the proportion of the portfolio's movement that can be explained by movements in a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). **Formula:** diff --git a/en/pedia/p/portfolio_turnover.md b/en/pedia/p/portfolio_turnover.md index 091dd870..5c90c6c6 100644 --- a/en/pedia/p/portfolio_turnover.md +++ b/en/pedia/p/portfolio_turnover.md @@ -47,7 +47,7 @@ Examining portfolio [turnover](../t/turnover.md) can also be a performance metri ### Real-World Examples -1. **Vanguard Group**: Known for its passive management strategy, most of Vanguard's [index](../i/index.md) funds have low portfolio [turnover](../t/turnover.md), often below 10%. This makes them cost-efficient and tax-efficient. [Vanguard](https://www.vanguard.com) +1. **Vanguard Group**: Known for its passive management strategy, most of Vanguard's [index](../i/index_instrument.md) funds have low portfolio [turnover](../t/turnover.md), often below 10%. This makes them cost-efficient and tax-efficient. [Vanguard](https://www.vanguard.com) 2. **[Fidelity Investments](../f/fidelity_investments.md)**: Often exhibiting higher [turnover ratios](../t/turnover_ratios.md), as some of their actively-managed funds aim to [outperform](../o/outperform.md) the [market](../m/market.md) with frequent buying and selling. [Fidelity Investments](https://www.fidelity.com) diff --git a/en/pedia/p/position_management.md b/en/pedia/p/position_management.md index 385b98ae..c6771d7b 100644 --- a/en/pedia/p/position_management.md +++ b/en/pedia/p/position_management.md @@ -62,7 +62,7 @@ Advanced [portfolio management](../p/portfolio_management.md) systems are essent ### Arbitrage -[Arbitrage](../a/arbitrage.md) strategies exploit price differences between related instruments or markets. These can include statistical [arbitrage](../a/arbitrage.md), [pairs trading](../p/pairs_trading.md), or [index](../i/index.md) [arbitrage](../a/arbitrage.md). Effective position management in [arbitrage](../a/arbitrage.md) requires precise synchronization and calibration of positions to minimize [risk](../r/risk.md) and maximize profits. +[Arbitrage](../a/arbitrage.md) strategies exploit price differences between related instruments or markets. These can include statistical [arbitrage](../a/arbitrage.md), [pairs trading](../p/pairs_trading.md), or [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md). Effective position management in [arbitrage](../a/arbitrage.md) requires precise synchronization and calibration of positions to minimize [risk](../r/risk.md) and maximize profits. ## Tools and Software for Position Management diff --git a/en/pedia/p/positive_correlation.md b/en/pedia/p/positive_correlation.md index 005d6a9a..a7604351 100644 --- a/en/pedia/p/positive_correlation.md +++ b/en/pedia/p/positive_correlation.md @@ -27,7 +27,7 @@ A common example of positive [correlation](../c/correlation.md) in [finance](../ ### Index Funds -Another example is the relationship between [index](../i/index.md) funds and the specific [index](../i/index.md) they track. For example, the SPDR S&P 500 ETF (SPY) exhibits a strong positive [correlation](../c/correlation.md) with the S&P 500 [index](../i/index.md) because the ETF is designed to replicate the performance of that [index](../i/index.md). +Another example is the relationship between [index](../i/index_instrument.md) funds and the specific [index](../i/index_instrument.md) they track. For example, the SPDR S&P 500 ETF (SPY) exhibits a strong positive [correlation](../c/correlation.md) with the S&P 500 [index](../i/index_instrument.md) because the ETF is designed to replicate the performance of that [index](../i/index_instrument.md). ## Importance in Portfolio Management diff --git a/en/pedia/p/positive_momentum.md b/en/pedia/p/positive_momentum.md index caacbef0..79cfb5f4 100644 --- a/en/pedia/p/positive_momentum.md +++ b/en/pedia/p/positive_momentum.md @@ -10,7 +10,7 @@ The measurement of positive [momentum](../m/momentum.md) often involves a look-b Several [technical indicators](../t/technical_indicators.md) are used to measure [momentum](../m/momentum.md) in trading, including: -1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** +1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** - RSI measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. An RSI [value](../v/value.md) above 70 is typically considered [overbought](../o/overbought.md), while below 30 is considered [oversold](../o/oversold.md). - More on RSI: [Investopedia on RSI](https://www.investopedia.com/terms/r/rsi.asp). diff --git a/en/pedia/p/poverty.md b/en/pedia/p/poverty.md index 6f1b02de..0db02b08 100644 --- a/en/pedia/p/poverty.md +++ b/en/pedia/p/poverty.md @@ -52,8 +52,8 @@ Measuring poverty is complex due to its multifaceted nature. Several methods are ### Multidimensional Measures -1. **Multidimensional Poverty [Index](../i/index.md) (MPI)**: Developed by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations, MPI takes into account various factors such as health, education, and living standards to provide a more comprehensive measure of poverty. -2. **Human Development [Index](../i/index.md) (HDI)**: This [index](../i/index.md) combines data on [life expectancy](../l/life_expectancy.md), education, and [per capita](../p/per_capita.md) [income](../i/income.md) to measure the overall development and well-being of a population. Though not a direct measure of poverty, it provides valuable insights into the [quality of life](../q/quality_of_life.md). +1. **Multidimensional Poverty [Index](../i/index_instrument.md) (MPI)**: Developed by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations, MPI takes into account various factors such as health, education, and living standards to provide a more comprehensive measure of poverty. +2. **Human Development [Index](../i/index_instrument.md) (HDI)**: This [index](../i/index_instrument.md) combines data on [life expectancy](../l/life_expectancy.md), education, and [per capita](../p/per_capita.md) [income](../i/income.md) to measure the overall development and well-being of a population. Though not a direct measure of poverty, it provides valuable insights into the [quality of life](../q/quality_of_life.md). ### Social and Economic Indicators diff --git a/en/pedia/p/power_distance_index_(pdi).md b/en/pedia/p/power_distance_index_(pdi).md index b2325908..48cf38e6 100644 --- a/en/pedia/p/power_distance_index_(pdi).md +++ b/en/pedia/p/power_distance_index_(pdi).md @@ -1,14 +1,14 @@ # Power Distance Index (PDI) -Power Distance [Index](../i/index.md) (PDI) is a measure that expresses the degree to which less powerful members of a society accept and expect that power is distributed unequally. This concept was introduced by Dutch social psychologist Geert Hofstede, and it plays a significant role in understanding cultural dimensions and their impacts on organizational behavior, decision-making processes, and [leadership](../l/leadership.md) styles. +Power Distance [Index](../i/index_instrument.md) (PDI) is a measure that expresses the degree to which less powerful members of a society accept and expect that power is distributed unequally. This concept was introduced by Dutch social psychologist Geert Hofstede, and it plays a significant role in understanding cultural dimensions and their impacts on organizational behavior, decision-making processes, and [leadership](../l/leadership.md) styles. ## Origin and Definition -Geert Hofstede first introduced the concept of Power Distance [Index](../i/index.md) in his seminal work "Culture's Consequences: International Differences in Work-Related Values" published in 1980. PDI is one of the six dimensions of Hofstede's cultural dimensions theory, which also includes: +Geert Hofstede first introduced the concept of Power Distance [Index](../i/index_instrument.md) in his seminal work "Culture's Consequences: International Differences in Work-Related Values" published in 1980. PDI is one of the six dimensions of Hofstede's cultural dimensions theory, which also includes: 1. **Individualism versus Collectivism (IDV)**: The extent to which people feel independent, as opposed to being interdependent as members of larger wholes. 2. **Masculinity versus Femininity (MAS)**: The [distribution](../d/distribution.md) of emotional roles between the genders. -3. **[Uncertainty](../u/uncertainty_in_trading.md) Avoidance [Index](../i/index.md) (UAI)**: The extent to which members of a culture feel threatened by ambiguous situations. +3. **[Uncertainty](../u/uncertainty_in_trading.md) Avoidance [Index](../i/index_instrument.md) (UAI)**: The extent to which members of a culture feel threatened by ambiguous situations. 4. **Long-Term Orientation versus Short-Term Normative Orientation (LTO)**: The focus on future rewards rather than immediate gratification. 5. **Indulgence versus Restraint (IVR)**: The extent to which people try to control their desires and impulses. @@ -108,4 +108,4 @@ While PDI provides valuable insights into national and organizational cultures, ## Conclusion -The Power Distance [Index](../i/index.md) (PDI) is a critical tool for understanding the impact of hierarchical structures on national cultures and organizations. By examining PDI, businesses can better navigate cross-cultural interactions, tailor management strategies, and enhance organizational effectiveness. However, it is essential to approach PDI with a nuanced understanding, recognizing its limitations and the dynamic nature of cultural contexts. \ No newline at end of file +The Power Distance [Index](../i/index_instrument.md) (PDI) is a critical tool for understanding the impact of hierarchical structures on national cultures and organizations. By examining PDI, businesses can better navigate cross-cultural interactions, tailor management strategies, and enhance organizational effectiveness. However, it is essential to approach PDI with a nuanced understanding, recognizing its limitations and the dynamic nature of cultural contexts. \ No newline at end of file diff --git a/en/pedia/p/predictive_modeling.md b/en/pedia/p/predictive_modeling.md index a22a37a9..6562f100 100644 --- a/en/pedia/p/predictive_modeling.md +++ b/en/pedia/p/predictive_modeling.md @@ -38,7 +38,7 @@ Predictive modeling encompasses several core concepts that are critical for deve 1. **Price Prediction**: - **Time-Series Analysis**: Using historical price data to predict future price movements. Common techniques include ARIMA (AutoRegressive Integrated Moving Average), LSTM networks, and Prophet (a [forecasting](../f/forecasting.md) tool by Facebook). - - **[Technical Indicators](../t/technical_indicators.md)**: Leveraging [technical analysis](../t/technical_analysis.md) indicators such as Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) to enhance [predictive models](../p/predictive_models_in_trading.md). + - **[Technical Indicators](../t/technical_indicators.md)**: Leveraging [technical analysis](../t/technical_analysis.md) indicators such as Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) to enhance [predictive models](../p/predictive_models_in_trading.md). 2. **[Sentiment Analysis](../s/sentiment_analysis.md)**: - **[Natural Language Processing](../n/natural_language_processing_(nlp)_in_trading.md) (NLP)**: Analyzing news articles, [social media](../s/social_media.md) posts, and other text data to gauge [market sentiment](../m/market_sentiment.md) and predict how news might impact stock prices. diff --git a/en/pedia/p/price-volume_trends.md b/en/pedia/p/price-volume_trends.md index 7d8d663f..a30101a0 100644 --- a/en/pedia/p/price-volume_trends.md +++ b/en/pedia/p/price-volume_trends.md @@ -60,7 +60,7 @@ Algorithms can be designed to enter long positions when both the price and the P Automated systems can be set up to detect bullish or bearish divergences between the price and PVT values, generating buy or sell signals accordingly. ### Integration with Other Indicators -PVT can be combined with other [technical indicators](../t/technical_indicators.md), such as Moving Averages or the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), to develop more [robust](../r/robust.md) [trading strategies](../t/trading_strategies.md). +PVT can be combined with other [technical indicators](../t/technical_indicators.md), such as Moving Averages or the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), to develop more [robust](../r/robust.md) [trading strategies](../t/trading_strategies.md). ### Example Implementation in Python diff --git a/en/pedia/p/price-weighted_index.md b/en/pedia/p/price-weighted_index.md index d2b7ff41..b9e6e618 100644 --- a/en/pedia/p/price-weighted_index.md +++ b/en/pedia/p/price-weighted_index.md @@ -1,49 +1,49 @@ # Price-Weighted Index -A price-[weighted](../w/weighted.md) [index](../i/index.md) is a type of stock [market index](../m/market_index.md) in which each stock influences the [index](../i/index.md) in proportion to its price per share. Unlike other types of indexes, such as [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) indexes, a price-[weighted](../w/weighted.md) [index](../i/index.md) computes the average of the prices of all the [stocks](../s/stock.md) included in it, and this average is then adjusted by a divisor to generate the [index](../i/index.md)'s [value](../v/value.md). This means that [stocks](../s/stock.md) with higher prices have a more significant impact on the [index](../i/index.md) movement than those with lower prices, regardless of the company's actual [market](../m/market.md) size. +A price-[weighted](../w/weighted.md) [index](../i/index_instrument.md) is a type of stock [market index](../m/market_index.md) in which each stock influences the [index](../i/index_instrument.md) in proportion to its price per share. Unlike other types of indexes, such as [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) indexes, a price-[weighted](../w/weighted.md) [index](../i/index_instrument.md) computes the average of the prices of all the [stocks](../s/stock.md) included in it, and this average is then adjusted by a divisor to generate the [index](../i/index_instrument.md)'s [value](../v/value.md). This means that [stocks](../s/stock.md) with higher prices have a more significant impact on the [index](../i/index_instrument.md) movement than those with lower prices, regardless of the company's actual [market](../m/market.md) size. ## History and Examples -The concept of a price-[weighted](../w/weighted.md) [index](../i/index.md) dates back to the late 19th and early 20th centuries. One of the oldest and most well-known examples of a price-[weighted](../w/weighted.md) [index](../i/index.md) is the Dow Jones Industrial Average (DJIA), which was created by Charles Dow and Edward Jones in 1896. Initially, the DJIA included 12 industrial companies, and it aimed to provide a clear snapshot of the industrial sector's performance. Today, the DJIA comprises 30 blue-chip companies and is still one of the most widely followed indices in the world. +The concept of a price-[weighted](../w/weighted.md) [index](../i/index_instrument.md) dates back to the late 19th and early 20th centuries. One of the oldest and most well-known examples of a price-[weighted](../w/weighted.md) [index](../i/index_instrument.md) is the Dow Jones Industrial Average (DJIA), which was created by Charles Dow and Edward Jones in 1896. Initially, the DJIA included 12 industrial companies, and it aimed to provide a clear snapshot of the industrial sector's performance. Today, the DJIA comprises 30 blue-chip companies and is still one of the most widely followed indices in the world. ## Calculating a Price-Weighted Index -To calculate a price-[weighted](../w/weighted.md) [index](../i/index.md), follow these steps: +To calculate a price-[weighted](../w/weighted.md) [index](../i/index_instrument.md), follow these steps: -1. **List all the stock prices:** Gather the current price per share for each stock in the [index](../i/index.md). +1. **List all the stock prices:** Gather the current price per share for each stock in the [index](../i/index_instrument.md). 2. **Sum the stock prices:** Add together the prices of all the [stocks](../s/stock.md). -3. **Determine the divisor:** The initial divisor is typically the number of [stocks](../s/stock.md) in the [index](../i/index.md). However, this divisor is adjusted for stock splits, dividends, and additions or deletions of [stocks](../s/stock.md) from the [index](../i/index.md) to ensure continuity. -4. **Calculate the [index](../i/index.md) [value](../v/value.md):** Divide the sum of the stock prices by the divisor to get the [index](../i/index.md) [value](../v/value.md). +3. **Determine the divisor:** The initial divisor is typically the number of [stocks](../s/stock.md) in the [index](../i/index_instrument.md). However, this divisor is adjusted for stock splits, dividends, and additions or deletions of [stocks](../s/stock.md) from the [index](../i/index_instrument.md) to ensure continuity. +4. **Calculate the [index](../i/index_instrument.md) [value](../v/value.md):** Divide the sum of the stock prices by the divisor to get the [index](../i/index_instrument.md) [value](../v/value.md). ### Example: -Suppose an [index](../i/index.md) consists of three [stocks](../s/stock.md) with the following prices: Stock A: $10, Stock B: $50, Stock C: $100. +Suppose an [index](../i/index_instrument.md) consists of three [stocks](../s/stock.md) with the following prices: Stock A: $10, Stock B: $50, Stock C: $100. 1. Sum of stock prices: $10 + $50 + $100 = $160 2. Initial divisor: 3 (since there are three [stocks](../s/stock.md)) -3. [Index](../i/index.md) [Value](../v/value.md): $160 / 3 ≈ 53.33 +3. [Index](../i/index_instrument.md) [Value](../v/value.md): $160 / 3 ≈ 53.33 -If Stock A undergoes a two-for-one split, its price [will](../w/will.md) reduce to $5. To ensure the [index](../i/index.md) remains consistent: +If Stock A undergoes a two-for-one split, its price [will](../w/will.md) reduce to $5. To ensure the [index](../i/index_instrument.md) remains consistent: 1. New Sum of stock prices: $5 + $50 + $100 = $155 2. New Divisor must be adjusted: 155 / 53.33 ≈ 2.91 -3. Recalculated [Index](../i/index.md) [Value](../v/value.md) with new divisor: 155 / 2.91 ≈ 53.33 +3. Recalculated [Index](../i/index_instrument.md) [Value](../v/value.md) with new divisor: 155 / 2.91 ≈ 53.33 -This adjustment ensures the historical performance of the [index](../i/index.md) remains continuous even after stock splits or other corporate actions. +This adjustment ensures the historical performance of the [index](../i/index_instrument.md) remains continuous even after stock splits or other corporate actions. ## Characteristics and Implications ### Performance Dependency on Stock Prices -A significant characteristic of price-[weighted](../w/weighted.md) indices is that [stocks](../s/stock.md) with higher prices can disproportionately impact the [index](../i/index.md)'s performance, regardless of the companies' total [market value](../m/market_value.md). For example, if Stock X is trading at $500 while Stock Y is at $50, despite having significantly different [market](../m/market.md) capitalizations, Stock X [will](../w/will.md) have a ten times greater impact on the [index](../i/index.md)'s performance. +A significant characteristic of price-[weighted](../w/weighted.md) indices is that [stocks](../s/stock.md) with higher prices can disproportionately impact the [index](../i/index_instrument.md)'s performance, regardless of the companies' total [market value](../m/market_value.md). For example, if Stock X is trading at $500 while Stock Y is at $50, despite having significantly different [market](../m/market.md) capitalizations, Stock X [will](../w/will.md) have a ten times greater impact on the [index](../i/index_instrument.md)'s performance. ### Volatility -Due to the reliance on individual stock prices, a price-[weighted](../w/weighted.md) [index](../i/index.md) can exhibit heightened [volatility](../v/volatility.md) based on the price movements of high-priced [stocks](../s/stock.md). A substantial price fluctuation in a high-priced constituent can significantly sway the [index](../i/index.md), unlike in [market](../m/market.md)-cap-[weighted](../w/weighted.md) indexes where the impact would be moderated by the company's overall size. +Due to the reliance on individual stock prices, a price-[weighted](../w/weighted.md) [index](../i/index_instrument.md) can exhibit heightened [volatility](../v/volatility.md) based on the price movements of high-priced [stocks](../s/stock.md). A substantial price fluctuation in a high-priced constituent can significantly sway the [index](../i/index_instrument.md), unlike in [market](../m/market.md)-cap-[weighted](../w/weighted.md) indexes where the impact would be moderated by the company's overall size. ### Frequency of Adjustments -Price-[weighted](../w/weighted.md) indices may require frequent adjustments. Changes due to stock splits, dividends, or changes in the list of constituent [stocks](../s/stock.md) necessitate recalculating the divisor to maintain consistent [index](../i/index.md) [value](../v/value.md). This can lead to a more complex maintenance routine compared to other [index](../i/index.md) types. +Price-[weighted](../w/weighted.md) indices may require frequent adjustments. Changes due to stock splits, dividends, or changes in the list of constituent [stocks](../s/stock.md) necessitate recalculating the divisor to maintain consistent [index](../i/index_instrument.md) [value](../v/value.md). This can lead to a more complex maintenance routine compared to other [index](../i/index_instrument.md) types. ### Historical Context @@ -53,9 +53,9 @@ The creation of price-[weighted](../w/weighted.md) indices like the DJIA made se ### Definition -- **Price-[Weighted](../w/weighted.md) [Index](../i/index.md):** [Index](../i/index.md) [value](../v/value.md) derived from the price per share of its constituent [stocks](../s/stock.md). Each stock affects the [index](../i/index.md) proportionally to its price. +- **Price-[Weighted](../w/weighted.md) [Index](../i/index_instrument.md):** [Index](../i/index_instrument.md) [value](../v/value.md) derived from the price per share of its constituent [stocks](../s/stock.md). Each stock affects the [index](../i/index_instrument.md) proportionally to its price. -- **[Market](../m/market.md)-Cap-[Weighted](../w/weighted.md) [Index](../i/index.md):** [Index](../i/index.md) [value](../v/value.md) derived from the [market capitalization](../m/market_capitalization.md) of its constituent [stocks](../s/stock.md). Each stock affects the [index](../i/index.md) proportionally to its total [market capitalization](../m/market_capitalization.md) (price per share * number of [shares](../s/shares.md) outstanding). +- **[Market](../m/market.md)-Cap-[Weighted](../w/weighted.md) [Index](../i/index_instrument.md):** [Index](../i/index_instrument.md) [value](../v/value.md) derived from the [market capitalization](../m/market_capitalization.md) of its constituent [stocks](../s/stock.md). Each stock affects the [index](../i/index_instrument.md) proportionally to its total [market capitalization](../m/market_capitalization.md) (price per share * number of [shares](../s/shares.md) outstanding). ### Example Indices @@ -64,7 +64,7 @@ The creation of price-[weighted](../w/weighted.md) indices like the DJIA made se ### Impact on Performance -- In a price-[weighted](../w/weighted.md) [index](../i/index.md), a high-priced but smaller-cap stock can have a more substantial effect than a lower-priced but larger-cap stock. Conversely, in a [market](../m/market.md)-cap-[weighted](../w/weighted.md) [index](../i/index.md), [large-cap stocks](../l/large_cap_stocks.md) dominate the [index](../i/index.md) performance, providing a more comprehensive reflection of the overall [market](../m/market.md)'s performance. +- In a price-[weighted](../w/weighted.md) [index](../i/index_instrument.md), a high-priced but smaller-cap stock can have a more substantial effect than a lower-priced but larger-cap stock. Conversely, in a [market](../m/market.md)-cap-[weighted](../w/weighted.md) [index](../i/index_instrument.md), [large-cap stocks](../l/large_cap_stocks.md) dominate the [index](../i/index_instrument.md) performance, providing a more comprehensive reflection of the overall [market](../m/market.md)'s performance. ### Adjustments Required @@ -80,17 +80,17 @@ The creation of price-[weighted](../w/weighted.md) indices like the DJIA made se ### Dow Jones Industrial Average (DJIA) -The DJIA is the iconic example of a price-[weighted](../w/weighted.md) [index](../i/index.md). Comprising 30 large publicly-traded companies, the [index](../i/index.md) is often seen as a barometer of the U.S. [economy](../e/economy.md). Companies within the DJIA are selected by the editors of The [Wall Street](../w/wall_street.md) [Journal](../j/journal.md) and represent a [range](../r/range.md) of sectors, except for transportation and utilities, which have their own specialized indices (e.g., Dow Jones Transportation Average). +The DJIA is the iconic example of a price-[weighted](../w/weighted.md) [index](../i/index_instrument.md). Comprising 30 large publicly-traded companies, the [index](../i/index_instrument.md) is often seen as a barometer of the U.S. [economy](../e/economy.md). Companies within the DJIA are selected by the editors of The [Wall Street](../w/wall_street.md) [Journal](../j/journal.md) and represent a [range](../r/range.md) of sectors, except for transportation and utilities, which have their own specialized indices (e.g., Dow Jones Transportation Average). ### Nikkei 225 -Another well-known price-[weighted](../w/weighted.md) [index](../i/index.md) is the [Nikkei](../n/nikkei.md) 225, which tracks the performance of 225 large, publicly owned companies in Japan. Established in 1950 by the Nihon Keizai Shimbun (The [Nikkei](../n/nikkei.md)), it is one of Asia's most widely recognized stock indices. +Another well-known price-[weighted](../w/weighted.md) [index](../i/index_instrument.md) is the [Nikkei](../n/nikkei.md) 225, which tracks the performance of 225 large, publicly owned companies in Japan. Established in 1950 by the Nihon Keizai Shimbun (The [Nikkei](../n/nikkei.md)), it is one of Asia's most widely recognized stock indices. ### Criticisms and Alternatives Despite their historical significance, price-[weighted](../w/weighted.md) indices have faced criticisms: -1. **Disproportionate Influence:** [Stocks](../s/stock.md) with high prices can dominate [index](../i/index.md) movements, introducing bias. +1. **Disproportionate Influence:** [Stocks](../s/stock.md) with high prices can dominate [index](../i/index_instrument.md) movements, introducing bias. 2. **Not Reflective of Economic Reality:** They do not accurately reflect the economic size of companies because they ignore the number of [shares](../s/shares.md) outstanding. 3. **Frequent Adjustments:** Requires more frequent [rebalancing](../r/rebalancing.md) and recalculation of the divisor. diff --git a/en/pedia/p/price_action_analysis.md b/en/pedia/p/price_action_analysis.md index 42663d7b..22bc15ae 100644 --- a/en/pedia/p/price_action_analysis.md +++ b/en/pedia/p/price_action_analysis.md @@ -22,7 +22,7 @@ Different tools and strategies are employed by [price action](../p/price_action. 1. **[Chart Patterns](../c/chart_patterns.md)**: Patterns like Head and Shoulders, [Double Top](../d/double_top.md) and Bottom, and Triangles are used to predict future price movements. -2. **[Price Action](../p/price_action.md) Indicators**: While [price action trading](../p/price_action_trading.md) primarily avoids traditional indicators, some traders use them for confirmation, such as Moving Averages and the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI). +2. **[Price Action](../p/price_action.md) Indicators**: While [price action trading](../p/price_action_trading.md) primarily avoids traditional indicators, some traders use them for confirmation, such as Moving Averages and the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI). 3. **Breakouts and Fakeouts**: Traders watch for breakouts from [support and resistance](../s/support_and_resistance.md) levels, and fakeouts (false breakouts) to identify potential trades. diff --git a/en/pedia/p/price_level.md b/en/pedia/p/price_level.md index 2428311c..2417e859 100644 --- a/en/pedia/p/price_level.md +++ b/en/pedia/p/price_level.md @@ -14,7 +14,7 @@ Price level typically refers to a specific [value](../v/value.md) or [range](../ 3. **[Commodity](../c/commodity.md) [Market](../m/market.md)**: In the [commodity](../c/commodity.md) [market](../m/market.md), price levels apply to [raw materials](../r/raw_materials.md) and primary agricultural products like oil, gold, wheat, and coffee. Understanding price levels here involves studying [supply](../s/supply.md) and [demand](../d/demand.md), geopolitical events, and seasonal variations. -4. **Economic Context**: In [macroeconomics](../m/macroeconomics.md), the general price level refers to the average of current prices across the entire spectrum of goods and services produced in the [economy](../e/economy.md). It reflects [inflation](../i/inflation.md) or [deflation](../d/deflation.md) trends and is usually measured by indices like the Consumer Price [Index](../i/index.md) (CPI) or the Producer Price [Index](../i/index.md) (PPI). +4. **Economic Context**: In [macroeconomics](../m/macroeconomics.md), the general price level refers to the average of current prices across the entire spectrum of goods and services produced in the [economy](../e/economy.md). It reflects [inflation](../i/inflation.md) or [deflation](../d/deflation.md) trends and is usually measured by indices like the Consumer Price [Index](../i/index_instrument.md) (CPI) or the Producer Price [Index](../i/index_instrument.md) (PPI). ## Technical Analysis of Price Levels diff --git a/en/pedia/p/price_momentum.md b/en/pedia/p/price_momentum.md index e4b1ef2a..7fa00755 100644 --- a/en/pedia/p/price_momentum.md +++ b/en/pedia/p/price_momentum.md @@ -25,7 +25,7 @@ The principle of price [momentum](../m/momentum.md) can be traced back to the ea - **Moving Averages**: Simple and exponential moving averages (SMA and EMA) are used to smooth out price data and generate [trading signals](../t/trading_signals.md). - *Example*: A typical crossover strategy might buy [stocks](../s/stock.md) when the short-term moving average crosses above the long-term moving average and sell when the opposite occurs. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Developed by J. Welles Wilder, RSI measures the speed and change of price movements. A stock is considered [overbought](../o/overbought.md) when the RSI is above 70 and [oversold](../o/oversold.md) when below 30. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Developed by J. Welles Wilder, RSI measures the speed and change of price movements. A stock is considered [overbought](../o/overbought.md) when the RSI is above 70 and [oversold](../o/oversold.md) when below 30. - *Application*: Traders might look for [divergence](../d/divergence.md) between the RSI and price to anticipate reversals. - **[Momentum Indicators](../m/momentum_indicators.md)**: These include rate of change (ROC), MOM ([momentum](../m/momentum.md)), and others that measure the velocity of price changes. diff --git a/en/pedia/p/price_oscillators.md b/en/pedia/p/price_oscillators.md index a00e9423..a01ad53c 100644 --- a/en/pedia/p/price_oscillators.md +++ b/en/pedia/p/price_oscillators.md @@ -35,7 +35,7 @@ The 9-day EMA of the MACD, known as the "signal line," is then plotted over the #### Commodity Channel Index (CCI) -The [Commodity](../c/commodity.md) Channel [Index](../i/index.md) was introduced by Donald Lambert. The CCI is a versatile [indicator](../i/indicator.md) that can be used to identify a new [trend](../t/trend.md) or warn of extreme [market](../m/market.md) conditions. Unlike most oscillators, CCI is not bounded by any limits, hence can provide insight into the strength of a given [trend](../t/trend.md). +The [Commodity](../c/commodity.md) Channel [Index](../i/index_instrument.md) was introduced by Donald Lambert. The CCI is a versatile [indicator](../i/indicator.md) that can be used to identify a new [trend](../t/trend.md) or warn of extreme [market](../m/market.md) conditions. Unlike most oscillators, CCI is not bounded by any limits, hence can provide insight into the strength of a given [trend](../t/trend.md). *CCI Formula*: \[ CCI = \frac{\text{Typical Price} - \text{SMA}(Typical \text{ Price})}{0.015 \times \text{Mean Deviation}} \] diff --git a/en/pedia/p/price_rate_of_change_indicator_(roc).md b/en/pedia/p/price_rate_of_change_indicator_(roc).md index a84ceab1..fb7e0a0c 100644 --- a/en/pedia/p/price_rate_of_change_indicator_(roc).md +++ b/en/pedia/p/price_rate_of_change_indicator_(roc).md @@ -45,7 +45,7 @@ The ROC can be used to confirm the strength of a prevailing [trend](../t/trend.m ### Combination with Other Indicators -The ROC is often used in conjunction with other [technical indicators](../t/technical_indicator.md) to improve its reliability. For example, combining the ROC with moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), or MACD can provide more [robust](../r/robust.md) [trading signals](../t/trading_signals.md). When [multiple](../m/multiple.md) indicators provide a confluence of signals, it increases the likelihood of a successful [trade](../t/trade.md). +The ROC is often used in conjunction with other [technical indicators](../t/technical_indicator.md) to improve its reliability. For example, combining the ROC with moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), or MACD can provide more [robust](../r/robust.md) [trading signals](../t/trading_signals.md). When [multiple](../m/multiple.md) indicators provide a confluence of signals, it increases the likelihood of a successful [trade](../t/trade.md). ## Advantages and Disadvantages diff --git a/en/pedia/p/price_target.md b/en/pedia/p/price_target.md index 6fe79be3..898699e0 100644 --- a/en/pedia/p/price_target.md +++ b/en/pedia/p/price_target.md @@ -25,7 +25,7 @@ Some common techniques used in [fundamental analysis](../f/fundamental_analysis. 1. **Moving Averages**: These are used to smooth out price data to identify the direction of the [trend](../t/trend.md). Common moving averages include the 50-day and 200-day moving averages. -2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: This [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) measures the speed and change of price movements. RSI values [range](../r/range.md) from 0 to 100 and are used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: This [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) measures the speed and change of price movements. RSI values [range](../r/range.md) from 0 to 100 and are used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. 3. **[Support and Resistance](../s/support_and_resistance.md) Levels**: These are price levels at which a [security](../s/security.md) tends to stop and reverse. [Support levels](../s/support_levels.md) are where a [downtrend](../d/downtrend.md) can be expected to pause, while resistance levels are where an [uptrend](../u/uptrend.md) can pause. diff --git a/en/pedia/p/price_target_analysis.md b/en/pedia/p/price_target_analysis.md index c404e393..bebb1fd5 100644 --- a/en/pedia/p/price_target_analysis.md +++ b/en/pedia/p/price_target_analysis.md @@ -52,7 +52,7 @@ Advanced machine learning models like [regression analysis](../r/regression_anal [Sentiment analysis](../s/sentiment_analysis.md), also known as opinion [mining](../m/mining.md), utilizes [natural language processing](../n/natural_language_processing_(nlp)_in_trading.md) (NLP) techniques to analyze public sentiment regarding a particular [security](../s/security.md). This analysis is based on [social media](../s/social_media.md), news articles, blogs, and other textual data sources. The sentiment score is then used to anticipate price movements. ### Sentiment Indicators -[Sentiment indicators](../s/sentiment_indicators.md), such as the [Put-Call Ratio](../p/put-call_ratio.md) and Bullish Consensus [Index](../i/index.md), help in gauging [investor](../i/investor.md) sentiment and can be pivotal in [price target](../p/price_target.md) analysis. +[Sentiment indicators](../s/sentiment_indicators.md), such as the [Put-Call Ratio](../p/put-call_ratio.md) and Bullish Consensus [Index](../i/index_instrument.md), help in gauging [investor](../i/investor.md) sentiment and can be pivotal in [price target](../p/price_target.md) analysis. ## Companies Specializing in Price Target Analysis diff --git a/en/pedia/p/price_target_setting.md b/en/pedia/p/price_target_setting.md index 4178969a..61542277 100644 --- a/en/pedia/p/price_target_setting.md +++ b/en/pedia/p/price_target_setting.md @@ -24,7 +24,7 @@ Setting price targets is also useful in validating [trading strategies](../t/tra - **[Trend](../t/trend.md) Lines**: Lines drawn to connect significant highs or lows to identify the direction of the [trend](../t/trend.md). - **[Support and Resistance](../s/support_and_resistance.md) Levels**: Horizontal lines indicating levels where the price has historically struggled to fall below (support) or rise above (resistance). - **Moving Averages**: Average price calculations over specified periods, used to smooth out price data and identify trends. -- **Indicators and Oscillators**: Tools like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_bands.md) help traders analyze [market](../m/market.md) [momentum](../m/momentum.md) and [volatility](../v/volatility.md) to set precise price targets. +- **Indicators and Oscillators**: Tools like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_bands.md) help traders analyze [market](../m/market.md) [momentum](../m/momentum.md) and [volatility](../v/volatility.md) to set precise price targets. ### Machine Learning Models With advancements in computing power, machine learning models have become increasingly popular for [price target](../p/price_target.md) setting in [algorithmic trading](../a/algorithmic_trading.md). These models can process vast amounts of data and identify complex patterns that traditional methods might miss. Common techniques include: diff --git a/en/pedia/p/principal_interest_taxes_insurance_(piti).md b/en/pedia/p/principal_interest_taxes_insurance_(piti).md index 82f19316..b666bc11 100644 --- a/en/pedia/p/principal_interest_taxes_insurance_(piti).md +++ b/en/pedia/p/principal_interest_taxes_insurance_(piti).md @@ -21,7 +21,7 @@ Early in the life of a [loan](../l/loan.md), a smaller portion of the monthly [p ### Types of Interest Rates - **Fixed-rate mortgages**: The [interest rate](../i/interest_rate.md) remains constant throughout the life of the [loan](../l/loan.md). -- **Adjustable-rate mortgages (ARMs)**: The [interest rate](../i/interest_rate.md) can change periodically based on an [index](../i/index.md) that reflects the cost to the [lender](../l/lender.md) of borrowing on the [credit](../c/credit.md) markets. +- **Adjustable-rate mortgages (ARMs)**: The [interest rate](../i/interest_rate.md) can change periodically based on an [index](../i/index_instrument.md) that reflects the cost to the [lender](../l/lender.md) of borrowing on the [credit](../c/credit.md) markets. ### Impact on Monthly Payments The [interest](../i/interest.md) portion of the [mortgage](../m/mortgage.md) [payment](../p/payment.md) is higher during the initial years of the [loan](../l/loan.md) and decreases over time as the [principal](../p/principal.md) is paid down. This is because [interest](../i/interest.md) is calculated on the remaining [principal](../p/principal.md) balance. diff --git a/en/pedia/p/producer_price_index_(ppi).md b/en/pedia/p/producer_price_index_(ppi).md index eeb78f35..81df3c18 100644 --- a/en/pedia/p/producer_price_index_(ppi).md +++ b/en/pedia/p/producer_price_index_(ppi).md @@ -1,10 +1,10 @@ # Producer Price Index (PPI) -The Producer Price [Index](../i/index.md) (PPI) is a critical [economic indicator](../e/economic_indicator.md) that measures the average changes in the selling prices received by domestic producers for their output over time. It is a key metric used by economists, policymakers, and financial analysts to gauge [inflation](../i/inflation.md) at the wholesale level, predict consumer price [inflation](../i/inflation.md), and make informed decisions about [monetary policy](../m/monetary_policy.md), investment strategies, and economic forecasts. +The Producer Price [Index](../i/index_instrument.md) (PPI) is a critical [economic indicator](../e/economic_indicator.md) that measures the average changes in the selling prices received by domestic producers for their output over time. It is a key metric used by economists, policymakers, and financial analysts to gauge [inflation](../i/inflation.md) at the wholesale level, predict consumer price [inflation](../i/inflation.md), and make informed decisions about [monetary policy](../m/monetary_policy.md), investment strategies, and economic forecasts. ## Understanding the Producer Price Index -The PPI represents the prices of goods and services sold by producers during the production process. Unlike the Consumer Price [Index](../i/index.md) (CPI), which measures retail-level price changes, the PPI tracks changes at the wholesale or producer level. It encompasses several indexes that measure price changes at different stages of production, including [raw materials](../r/raw_materials.md), intermediate goods, and finished products. +The PPI represents the prices of goods and services sold by producers during the production process. Unlike the Consumer Price [Index](../i/index_instrument.md) (CPI), which measures retail-level price changes, the PPI tracks changes at the wholesale or producer level. It encompasses several indexes that measure price changes at different stages of production, including [raw materials](../r/raw_materials.md), intermediate goods, and finished products. ### Components of PPI @@ -20,11 +20,11 @@ The PPI is composed of three main components, which collectively provide a compr The PPI is calculated using a [weighted average](../w/weighted_average.md) of price changes for a representative [basket of goods](../b/basket_of_goods.md) and services produced in the [economy](../e/economy.md). The calculation involves three primary steps: -1. **Selection of Goods and Services**: A representative set of goods and services is chosen based on their significance in the production process. This selection ensures that the [index](../i/index.md) accurately reflects overall price changes in the [economy](../e/economy.md). +1. **Selection of Goods and Services**: A representative set of goods and services is chosen based on their significance in the production process. This selection ensures that the [index](../i/index_instrument.md) accurately reflects overall price changes in the [economy](../e/economy.md). 2. **Price Collection**: Prices for the selected goods and services are collected from a wide [range](../r/range.md) of sources, including surveys, [trade](../t/trade.md) publications, and [industry](../i/industry.md) reports. These prices are typically collected on a monthly [basis](../b/basis.md) to capture real-time changes. -3. **[Index](../i/index.md) Calculation**: The collected prices are [weighted](../w/weighted.md) according to their importance in the production process. The [index](../i/index.md) is then calculated as a [weighted average](../w/weighted_average.md) of the price changes, providing a single figure that represents the overall change in producer prices. +3. **[Index](../i/index_instrument.md) Calculation**: The collected prices are [weighted](../w/weighted.md) according to their importance in the production process. The [index](../i/index_instrument.md) is then calculated as a [weighted average](../w/weighted_average.md) of the price changes, providing a single figure that represents the overall change in producer prices. ### Uses of PPI @@ -44,7 +44,7 @@ The PPI is published by national statistical agencies, such as the Bureau of Lab ### BLS PPI Program -The BLS PPI program is one of the most comprehensive and widely used sources of producer price data. It covers a broad [range](../r/range.md) of industries and commodities, providing granular insights into price trends across the [economy](../e/economy.md). The program includes a variety of indexes, such as the All Commodities [Index](../i/index.md), the Finished Goods [Index](../i/index.md), and the Intermediate Goods [Index](../i/index.md). +The BLS PPI program is one of the most comprehensive and widely used sources of producer price data. It covers a broad [range](../r/range.md) of industries and commodities, providing granular insights into price trends across the [economy](../e/economy.md). The program includes a variety of indexes, such as the All Commodities [Index](../i/index_instrument.md), the Finished Goods [Index](../i/index_instrument.md), and the Intermediate Goods [Index](../i/index_instrument.md). For more information about the BLS PPI program, visit their official website: [BLS PPI Program](https://www.bls.gov/ppi/). @@ -80,4 +80,4 @@ Despite these limitations, the PPI remains a crucial tool for understanding [inf ## Conclusion -The Producer Price [Index](../i/index.md) (PPI) is a vital [economic indicator](../e/economic_indicator.md) that measures changes in the selling prices received by producers for their goods and services. By tracking price changes at various stages of production, the PPI provides valuable insights into inflationary pressures, cost dynamics, and [economic conditions](../e/economic_conditions.md). It is extensively used by policymakers, businesses, and financial [market](../m/market.md) participants to monitor [inflation](../i/inflation.md), manage costs, adjust contracts, and forecast economic trends. While it has its limitations, the PPI's importance in the realm of economic analysis and decision-making cannot be overstated. \ No newline at end of file +The Producer Price [Index](../i/index_instrument.md) (PPI) is a vital [economic indicator](../e/economic_indicator.md) that measures changes in the selling prices received by producers for their goods and services. By tracking price changes at various stages of production, the PPI provides valuable insights into inflationary pressures, cost dynamics, and [economic conditions](../e/economic_conditions.md). It is extensively used by policymakers, businesses, and financial [market](../m/market.md) participants to monitor [inflation](../i/inflation.md), manage costs, adjust contracts, and forecast economic trends. While it has its limitations, the PPI's importance in the realm of economic analysis and decision-making cannot be overstated. \ No newline at end of file diff --git a/en/pedia/p/profit_maximization_strategies.md b/en/pedia/p/profit_maximization_strategies.md index 43171d25..5bee5582 100644 --- a/en/pedia/p/profit_maximization_strategies.md +++ b/en/pedia/p/profit_maximization_strategies.md @@ -49,7 +49,7 @@ Machine learning (ML) and [artificial intelligence](../a/artificial_intelligence ### Common Indicators: - **Moving Averages:** Smooth out price data to identify the [trend](../t/trend.md) direction. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** Measures the speed and change of price movements. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** Measures the speed and change of price movements. - **MACD (Moving Average Convergence [Divergence](../d/divergence.md)):** Shows the relationship between two moving averages of prices. ## 6. Risk Management diff --git a/en/pedia/p/profit_taking_strategies.md b/en/pedia/p/profit_taking_strategies.md index 5670f815..cdb0a73f 100644 --- a/en/pedia/p/profit_taking_strategies.md +++ b/en/pedia/p/profit_taking_strategies.md @@ -22,7 +22,7 @@ Scale-out strategy involves selling portions of a position at different price le ### 5. Using Technical Indicators -Certain [technical indicators](../t/technical_indicators.md) can guide [profit](../p/profit.md)-taking decisions. Indicators such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_bands.md) can signal [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, suggesting optimal points to exit a [trade](../t/trade.md). +Certain [technical indicators](../t/technical_indicators.md) can guide [profit](../p/profit.md)-taking decisions. Indicators such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_bands.md) can signal [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, suggesting optimal points to exit a [trade](../t/trade.md). ### 6. Volatility-Based Exit diff --git a/en/pedia/p/profitability_index_(pi).md b/en/pedia/p/profitability_index_(pi).md index 3a49bd9f..d0728c9c 100644 --- a/en/pedia/p/profitability_index_(pi).md +++ b/en/pedia/p/profitability_index_(pi).md @@ -1,10 +1,10 @@ # Profitability Index (PI) -The Profitability [Index](../i/index.md) (PI), also referred to as the [Profit](../p/profit.md) Investment Ratio (PIR) or the [Value](../v/value.md) Investment Ratio (VIR), is a financial metric used to assess the attractiveness of an investment or project. PI is calculated by dividing the [present value](../p/present_value.md) of future expected cash flows by the initial investment cost. It is a useful tool in [capital budgeting](../c/capital_budgeting.md) that helps in comparing and ranking projects for decision-making. +The Profitability [Index](../i/index_instrument.md) (PI), also referred to as the [Profit](../p/profit.md) Investment Ratio (PIR) or the [Value](../v/value.md) Investment Ratio (VIR), is a financial metric used to assess the attractiveness of an investment or project. PI is calculated by dividing the [present value](../p/present_value.md) of future expected cash flows by the initial investment cost. It is a useful tool in [capital budgeting](../c/capital_budgeting.md) that helps in comparing and ranking projects for decision-making. ## Definition -The Profitability [Index](../i/index.md) is a ratio that measures the profitability of a potential investment by comparing the [present value](../p/present_value.md) of its future expected cash flows to the initial amount of investment needed. This ratio helps investors and company decision-makers identify which projects [will](../w/will.md) [yield](../y/yield.md) the highest returns relative to their costs. A PI greater than 1 indicates that the project's net [present value](../p/present_value.md) (NPV) is positive, meaning it is expected to generate more cash than what it costs. Conversely, a PI less than 1 suggests that the project's NPV is negative, indicating that it is likely to be unprofitable. +The Profitability [Index](../i/index_instrument.md) is a ratio that measures the profitability of a potential investment by comparing the [present value](../p/present_value.md) of its future expected cash flows to the initial amount of investment needed. This ratio helps investors and company decision-makers identify which projects [will](../w/will.md) [yield](../y/yield.md) the highest returns relative to their costs. A PI greater than 1 indicates that the project's net [present value](../p/present_value.md) (NPV) is positive, meaning it is expected to generate more cash than what it costs. Conversely, a PI less than 1 suggests that the project's NPV is negative, indicating that it is likely to be unprofitable. ## Components @@ -21,12 +21,12 @@ The Profitability [Index](../i/index.md) is a ratio that measures the profitabil ## Formula -The Profitability [Index](../i/index.md) is calculated using the following formula: +The Profitability [Index](../i/index_instrument.md) is calculated using the following formula: \[ PI = \frac{PVCF}{IIC} \] Where: -- \( PI \) = Profitability [Index](../i/index.md) +- \( PI \) = Profitability [Index](../i/index_instrument.md) - \( PVCF \) = [Present Value](../p/present_value.md) of Cash Flows - \( IIC \) = Initial Investment Cost @@ -51,7 +51,7 @@ Since the PI is greater than 1, this project is considered profitable and worthw ## Application in Capital Budgeting -In [capital budgeting](../c/capital_budgeting.md), the Profitability [Index](../i/index.md) is often used to evaluate [multiple](../m/multiple.md) investment opportunities. It helps in ranking projects based on their relative profitability. The PI is particularly useful when the available [capital](../c/capital.md) is limited, and there is a need to choose between several competing projects. +In [capital budgeting](../c/capital_budgeting.md), the Profitability [Index](../i/index_instrument.md) is often used to evaluate [multiple](../m/multiple.md) investment opportunities. It helps in ranking projects based on their relative profitability. The PI is particularly useful when the available [capital](../c/capital.md) is limited, and there is a need to choose between several competing projects. 1. **Ranking Projects:** - Projects with a PI greater than 1 are considered for investment. @@ -64,7 +64,7 @@ In [capital budgeting](../c/capital_budgeting.md), the Profitability [Index](../ 3. **Decision-Making Under [Capital](../c/capital.md) Rationing:** - When a [firm](../f/firm.md) has limited funds, PI helps in allocating resources to projects that maximize the overall [value](../v/value.md). - - Decision-makers can identify the combination of projects that together [yield](../y/yield.md) the highest total profitability [index](../i/index.md) while staying within [budget](../b/budget.md) constraints. + - Decision-makers can identify the combination of projects that together [yield](../y/yield.md) the highest total profitability [index](../i/index_instrument.md) while staying within [budget](../b/budget.md) constraints. ## Advantages and Disadvantages @@ -92,4 +92,4 @@ In [capital budgeting](../c/capital_budgeting.md), the Profitability [Index](../ ## Conclusion -The Profitability [Index](../i/index.md) is a valuable tool in the arsenal of financial analysts and decision-makers. It helps in assessing the feasibility and profitability of investments and projects, ensuring that [capital](../c/capital.md) is allocated to the most worthwhile endeavors. By understanding and applying the PI metric, organizations can make informed decisions that maximize their returns and enhance their [financial performance](../f/financial_performance.md). Whether used alone or in conjunction with other financial metrics, the PI remains a cornerstone of sound [financial planning](../f/financial_planning.md) and [investment analysis](../i/investment_analysis.md). \ No newline at end of file +The Profitability [Index](../i/index_instrument.md) is a valuable tool in the arsenal of financial analysts and decision-makers. It helps in assessing the feasibility and profitability of investments and projects, ensuring that [capital](../c/capital.md) is allocated to the most worthwhile endeavors. By understanding and applying the PI metric, organizations can make informed decisions that maximize their returns and enhance their [financial performance](../f/financial_performance.md). Whether used alone or in conjunction with other financial metrics, the PI remains a cornerstone of sound [financial planning](../f/financial_planning.md) and [investment analysis](../i/investment_analysis.md). \ No newline at end of file diff --git a/en/pedia/p/proxy.md b/en/pedia/p/proxy.md index a2ce2f43..b1126753 100644 --- a/en/pedia/p/proxy.md +++ b/en/pedia/p/proxy.md @@ -42,7 +42,7 @@ Proxy statements are vital for maintaining [corporate governance](../c/corporate In the context of [algorithmic trading](../a/accountability.md), proxies can refer to various elements such as proxy indicators or proxy servers used to improve [trading strategies](../t/trading_strategies.md) or maintain anonymity. -- **Proxy Indicators:** These are variables or indicators used as substitutes for direct measurement of trading conditions. For example, the VIX ([Volatility](../v/volatility.md) [Index](../i/index.md)) can serve as a proxy for [market](../m/market.md) [uncertainty](../u/uncertainty_in_trading.md). +- **Proxy Indicators:** These are variables or indicators used as substitutes for direct measurement of trading conditions. For example, the VIX ([Volatility](../v/volatility.md) [Index](../i/index_instrument.md)) can serve as a proxy for [market](../m/market.md) [uncertainty](../u/uncertainty_in_trading.md). - **Proxy Servers:** Proxy servers can be used to anonymize trading activities or to route orders through specific servers to reduce latency. ### Applications and Benefits diff --git a/en/pedia/p/purchase_annual_percentage_rate_(apr).md b/en/pedia/p/purchase_annual_percentage_rate_(apr).md index f19e1f2c..5b818732 100644 --- a/en/pedia/p/purchase_annual_percentage_rate_(apr).md +++ b/en/pedia/p/purchase_annual_percentage_rate_(apr).md @@ -6,8 +6,8 @@ The Purchase Annual Percentage Rate (APR) is a critical concept in the realm of The Purchase APR is the [interest rate](../i/interest_rate.md) applied to the purchases you make with a [credit card](../c/credit_card.md). It is expressed as an annual percentage and is one of the primary costs associated with borrowing [money](../m/money.md) through a [credit card](../c/credit_card.md). The APR can be fixed or variable: -- **Fixed APR:** A fixed APR does not change in response to [index](../i/index.md) rate fluctuations. However, issuers might still alter the rate under specific conditions, such as not adhering to the [credit card](../c/credit_card.md)'s terms and conditions. -- **Variable APR:** A variable APR fluctuates based on an [index](../i/index.md), such as the [prime rate](../p/prime_rate.md). The [issuer](../i/issuer.md) calculates the variable rate using the [index](../i/index.md) and adds a predetermined [margin](../m/margin.md). +- **Fixed APR:** A fixed APR does not change in response to [index](../i/index_instrument.md) rate fluctuations. However, issuers might still alter the rate under specific conditions, such as not adhering to the [credit card](../c/credit_card.md)'s terms and conditions. +- **Variable APR:** A variable APR fluctuates based on an [index](../i/index_instrument.md), such as the [prime rate](../p/prime_rate.md). The [issuer](../i/issuer.md) calculates the variable rate using the [index](../i/index_instrument.md) and adds a predetermined [margin](../m/margin.md). ## Calculation of APR diff --git a/en/pedia/p/purchasing_managers'_index_(pmi).md b/en/pedia/p/purchasing_managers'_index_(pmi).md index 7d559eb7..02836c9f 100644 --- a/en/pedia/p/purchasing_managers'_index_(pmi).md +++ b/en/pedia/p/purchasing_managers'_index_(pmi).md @@ -1,6 +1,6 @@ # Purchasing Managers' Index (PMI) -The Purchasing Managers' [Index](../i/index.md) (PMI) is an [economic indicator](../e/economic_indicator.md) derived from monthly surveys of [private sector](../p/private_sector.md) companies. The PMI aims to provide a snapshot of the health of the [manufacturing](../m/manufacturing.md) and service sectors, [offering](../o/offering.md) insights into economic trends and potential future changes in [business](../b/business.md) conditions. It is widely used by financial [market](../m/market.md) participants, policymakers, and economic analysts. +The Purchasing Managers' [Index](../i/index_instrument.md) (PMI) is an [economic indicator](../e/economic_indicator.md) derived from monthly surveys of [private sector](../p/private_sector.md) companies. The PMI aims to provide a snapshot of the health of the [manufacturing](../m/manufacturing.md) and service sectors, [offering](../o/offering.md) insights into economic trends and potential future changes in [business](../b/business.md) conditions. It is widely used by financial [market](../m/market.md) participants, policymakers, and economic analysts. ### Understanding the PMI @@ -12,7 +12,7 @@ The PMI is primarily based on five major indicators: 4. **Supplier Deliveries**: This evaluates the speed and timeliness of suppliers in delivering ordered goods or services. 5. **Employment Levels**: This assesses the current level of employment within companies, indicating hiring or [layoff](../l/layoff.md) trends. -Each of these components has a specific weight in the PMI calculation, and they contribute to the overall [index](../i/index.md) in varying degrees. The PMI ranges from 0 to 100, where: +Each of these components has a specific weight in the PMI calculation, and they contribute to the overall [index](../i/index_instrument.md) in varying degrees. The PMI ranges from 0 to 100, where: - A PMI above 50 indicates an [expansion](../e/expansion.md) compared to the previous month. - A PMI below 50 indicates a contraction compared to the previous month. @@ -85,4 +85,4 @@ While PMI is a valuable tool, it has limitations: ### Conclusion -The Purchasing Managers' [Index](../i/index.md) (PMI) provides crucial insights into the health of the [economy](../e/economy.md) by capturing the sentiments of those on the front lines of [business](../b/business.md) operations. Despite some limitations, its role in [economic forecasting](../e/economic_forecasting.md), investment decision-making, policy formulation, and [business](../b/business.md) planning is invaluable. By [offering](../o/offering.md) a real-time snapshot of [business](../b/business.md) conditions, the PMI helps stakeholders navigate the complexities of economic trends and [business](../b/business.md) cycles. \ No newline at end of file +The Purchasing Managers' [Index](../i/index_instrument.md) (PMI) provides crucial insights into the health of the [economy](../e/economy.md) by capturing the sentiments of those on the front lines of [business](../b/business.md) operations. Despite some limitations, its role in [economic forecasting](../e/economic_forecasting.md), investment decision-making, policy formulation, and [business](../b/business.md) planning is invaluable. By [offering](../o/offering.md) a real-time snapshot of [business](../b/business.md) conditions, the PMI helps stakeholders navigate the complexities of economic trends and [business](../b/business.md) cycles. \ No newline at end of file diff --git a/en/pedia/p/purchasing_power.md b/en/pedia/p/purchasing_power.md index 2485d6c5..48eeadec 100644 --- a/en/pedia/p/purchasing_power.md +++ b/en/pedia/p/purchasing_power.md @@ -27,7 +27,7 @@ Venezuela has faced [hyperinflation](../h/hyperinflation.md) since the mid-2010s ## 4. Measurement of Purchasing Power ### 4.1. Consumer Price Index (CPI) -The Consumer Price [Index](../i/index.md) (CPI) measures changes in the [price level](../p/price_level.md) of a [market](../m/market.md) basket of [consumer goods](../c/consumer_goods.md) and services purchased by households. It is a key [indicator](../i/indicator.md) used to evaluate purchasing power. +The Consumer Price [Index](../i/index_instrument.md) (CPI) measures changes in the [price level](../p/price_level.md) of a [market](../m/market.md) basket of [consumer goods](../c/consumer_goods.md) and services purchased by households. It is a key [indicator](../i/indicator.md) used to evaluate purchasing power. ### 4.2. Purchasing Power Parity (PPP) Purchasing Power [Parity](../p/parity.md) (PPP) is an economic theory that allows the comparison of the purchasing power of various world currencies to one another. PPP suggests that [exchange](../e/exchange.md) rates between currencies should adjust so that a [basket of goods](../b/basket_of_goods.md) costs the same in both currencies, [accounting](../a/accounting.md) for their respective purchasing power. diff --git a/en/pedia/p/put-call_ratio.md b/en/pedia/p/put-call_ratio.md index a5c7c3d7..a426382c 100644 --- a/en/pedia/p/put-call_ratio.md +++ b/en/pedia/p/put-call_ratio.md @@ -61,7 +61,7 @@ The Put-Call Ratio is a powerful tool for [sentiment analysis](../s/sentiment_an Some traders use the PCR to time their entry and exit points. For example, when the PCR hits an extreme level (either high or low), it may indicate a potential [inflection point](../i/inflection_point.md) where the [market sentiment](../m/market_sentiment.md) could reverse. ### Combining with Other Indicators -The Put-Call Ratio is often used in conjunction with other [technical analysis](../t/technical_analysis.md) indicators, such as moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_band.md), to confirm signals and improve the accuracy of trading decisions. +The Put-Call Ratio is often used in conjunction with other [technical analysis](../t/technical_analysis.md) indicators, such as moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_band.md), to confirm signals and improve the accuracy of trading decisions. ### Hedging Strategies For institutional investors and large funds, the PCR can help inform [hedging strategies](../h/hedging_strategies.md). By understanding the prevailing [market sentiment](../m/market_sentiment.md), these investors can better align their hedging activities to protect against adverse [market](../m/market.md) movements. diff --git a/en/pedia/p/put.md b/en/pedia/p/put.md index 80e26f21..da1cf878 100644 --- a/en/pedia/p/put.md +++ b/en/pedia/p/put.md @@ -8,7 +8,7 @@ The put option is one of the two primary types of [options](../o/options.md) con ### Key Terminology -1. **[Underlying Asset](../u/underlying_asset.md)**: The [security](../s/security.md) or [commodity](../c/commodity.md) on which the option is based, such as a stock, [bond](../b/bond.md), [commodity](../c/commodity.md), or [index](../i/index.md). +1. **[Underlying Asset](../u/underlying_asset.md)**: The [security](../s/security.md) or [commodity](../c/commodity.md) on which the option is based, such as a stock, [bond](../b/bond.md), [commodity](../c/commodity.md), or [index](../i/index_instrument.md). 2. **[Strike Price](../s/strike_price.md) ([Exercise Price](../e/excersise_price.md))**: The price at which the [underlying asset](../u/underlying_asset.md) can be sold by the holder of the put option. 3. **[Expiration Date](../e/expiration_date.md)**: The date on which the option contract expires and becomes void. 4. **[Premium](../p/premium.md)**: The price paid by the buyer to the seller for the put option. @@ -101,7 +101,7 @@ Where: ### Hedging -[Put options](../p/put_options.md) are foundational tools for [risk management](../r/risk_management.md) in investment portfolios. Investors use puts to [hedge](../h/hedge.md) against potential losses in the [value](../v/value.md) of their assets. For example, a [fund manager](../f/fund_manager.md) might buy [put options](../p/put_options.md) on a stock [index](../i/index.md) to protect a portfolio during [market](../m/market.md) downturns. +[Put options](../p/put_options.md) are foundational tools for [risk management](../r/risk_management.md) in investment portfolios. Investors use puts to [hedge](../h/hedge.md) against potential losses in the [value](../v/value.md) of their assets. For example, a [fund manager](../f/fund_manager.md) might buy [put options](../p/put_options.md) on a stock [index](../i/index_instrument.md) to protect a portfolio during [market](../m/market.md) downturns. ### Speculation diff --git a/en/pedia/p/put_option.md b/en/pedia/p/put_option.md index 3de8df2f..07ae13de 100644 --- a/en/pedia/p/put_option.md +++ b/en/pedia/p/put_option.md @@ -102,7 +102,7 @@ In some cases, especially with Over-The-Counter (OTC) [options](../o/options.md) ### Portfolio Management -A [hedge fund](../h/hedge_fund.md) that has a significant exposure to tech [stocks](../s/stock.md) might purchase [put options](../p/put_options.md) on a tech-heavy [index](../i/index.md) like the [NASDAQ](../n/nasdaq.md). This way, if the tech sector experiences a downturn, the losses in the portfolio would be [offset](../o/offset.md) by gains from the [put options](../p/put_options.md). +A [hedge fund](../h/hedge_fund.md) that has a significant exposure to tech [stocks](../s/stock.md) might purchase [put options](../p/put_options.md) on a tech-heavy [index](../i/index_instrument.md) like the [NASDAQ](../n/nasdaq.md). This way, if the tech sector experiences a downturn, the losses in the portfolio would be [offset](../o/offset.md) by gains from the [put options](../p/put_options.md). ### Corporate Finance diff --git a/en/pedia/q/qatar_stock_exchange_(qse).md b/en/pedia/q/qatar_stock_exchange_(qse).md index 8565252e..2b546be1 100644 --- a/en/pedia/q/qatar_stock_exchange_(qse).md +++ b/en/pedia/q/qatar_stock_exchange_(qse).md @@ -27,7 +27,7 @@ As of 2023, the QSE hosts around 50 [listed](../l/listed.md) companies, spanning - Mesaieed Petrochemical [Holding Company](../h/holding_company.md) (MPHC) - Barwa [Real Estate](../r/real_estate.md) -The QSE is [home](../h/home.md) to several indices, with the Qatar [Exchange](../e/exchange.md) [Index](../i/index.md) (QE [Index](../i/index.md)) being the primary [benchmark](../b/benchmark.md). The QE [Index](../i/index.md) comprises the top 20 most [liquid](../l/liquid.md) and significant [stocks](../s/stock.md) [listed](../l/listed.md) on the [market](../m/market.md). Additional indices include the QE Al Rayan Islamic [Index](../i/index.md), QE All Share [Index](../i/index.md), and several sector-specific indices. +The QSE is [home](../h/home.md) to several indices, with the Qatar [Exchange](../e/exchange.md) [Index](../i/index_instrument.md) (QE [Index](../i/index_instrument.md)) being the primary [benchmark](../b/benchmark.md). The QE [Index](../i/index_instrument.md) comprises the top 20 most [liquid](../l/liquid.md) and significant [stocks](../s/stock.md) [listed](../l/listed.md) on the [market](../m/market.md). Additional indices include the QE Al Rayan Islamic [Index](../i/index_instrument.md), QE All Share [Index](../i/index_instrument.md), and several sector-specific indices. ## Trading Mechanism diff --git a/en/pedia/q/qqqq.md b/en/pedia/q/qqqq.md index 1b5cda34..fe5782ae 100644 --- a/en/pedia/q/qqqq.md +++ b/en/pedia/q/qqqq.md @@ -1,16 +1,16 @@ # QQQQ -The stock ticker QQQQ originally referred to the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md) [Tracking Stock](../t/tracking_stock.md), an [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF) that tracks the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md). This ETF is managed by Invesco and is now known under the [ticker symbol](../t/ticker_symbol.md) QQQ. QQQQ was a commonly used ticker prior to a rebranding effort that phased it out in favor of the simpler QQQ. Here is an in-depth look at the QQQ ETF, its composition, historical performance, and relevance in the modern [financial markets](../f/financial_market.md). +The stock ticker QQQQ originally referred to the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md) [Tracking Stock](../t/tracking_stock.md), an [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF) that tracks the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md). This ETF is managed by Invesco and is now known under the [ticker symbol](../t/ticker_symbol.md) QQQ. QQQQ was a commonly used ticker prior to a rebranding effort that phased it out in favor of the simpler QQQ. Here is an in-depth look at the QQQ ETF, its composition, historical performance, and relevance in the modern [financial markets](../f/financial_market.md). ## Overview -QQQ, formerly known under the [ticker symbol](../t/ticker_symbol.md) QQQQ, represents the Invesco QQQ [Trust](../t/trust.md) ETF ([NASDAQ](../n/nasdaq.md): QQQ), which tracks the performance of the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md). This [index](../i/index.md) includes 100 of the largest non-financial companies [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) [Stock Market](../s/stock_market.md) based on [market capitalization](../m/market_capitalization.md). It is a highly influential [index](../i/index.md) that offers a snapshot of the leading companies in technology, biotechnology, telecommunications, and other growth sectors. +QQQ, formerly known under the [ticker symbol](../t/ticker_symbol.md) QQQQ, represents the Invesco QQQ [Trust](../t/trust.md) ETF ([NASDAQ](../n/nasdaq.md): QQQ), which tracks the performance of the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md). This [index](../i/index_instrument.md) includes 100 of the largest non-financial companies [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md) [Stock Market](../s/stock_market.md) based on [market capitalization](../m/market_capitalization.md). It is a highly influential [index](../i/index_instrument.md) that offers a snapshot of the leading companies in technology, biotechnology, telecommunications, and other growth sectors. The Invesco QQQ [Trust](../t/trust.md) has gained significant popularity due to its composition, attractive growth profile, and its status as a bellwether for [Nasdaq](../n/nasdaq.md)-[listed](../l/listed.md) [stocks](../s/stock.md). It's an important tool for both individual and institutional investors seeking exposure to top-tier [Nasdaq](../n/nasdaq.md) companies without having to undertake individual stock picking. ## Major Holdings and Sector Composition -The [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md), tracked by QQQ, represents a diverse [range](../r/range.md) of industries with a strong bias towards innovative technology and growth-oriented companies. Below are some of the major [holdings](../h/holdings.md) and their respective sectors: +The [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md), tracked by QQQ, represents a diverse [range](../r/range.md) of industries with a strong bias towards innovative technology and growth-oriented companies. Below are some of the major [holdings](../h/holdings.md) and their respective sectors: - **Apple Inc. (AAPL)** - Technology - **Microsoft [Corporation](../c/corporation.md) (MSFT)** - Technology @@ -23,7 +23,7 @@ The [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md), tracked by QQQ, represe - **Intel [Corporation](../c/corporation.md) (INTC)** - Technology - **Comcast [Corporation](../c/corporation.md) (CMCSA)** - Communication Services -The weighting of these [holdings](../h/holdings.md) can change due to factors such as [market](../m/market.md) performance and periodic [rebalancing](../r/rebalancing.md) of the [index](../i/index.md). +The weighting of these [holdings](../h/holdings.md) can change due to factors such as [market](../m/market.md) performance and periodic [rebalancing](../r/rebalancing.md) of the [index](../i/index_instrument.md). ### Sector Breakdown @@ -48,7 +48,7 @@ QQQ has demonstrated [robust](../r/robust.md) performance since its inception, l Given its high-tech and [growth stock](../g/growth_stock.md) concentration, QQQ is not immune to periods of [volatility](../v/volatility.md), especially during [market](../m/market.md) corrections that disproportionately impact high-valued [growth stocks](../g/growth_stocks.md). For example: -- The Dot-com Bubble (2000-2002) had a severe impact on QQQ and the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md), both experiencing significant declines. +- The Dot-com Bubble (2000-2002) had a severe impact on QQQ and the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md), both experiencing significant declines. - The [Financial Crisis](../f/financial_crisis.md) of 2008 also led to substantial drawdowns. Despite this, the ETF has consistently recovered and continued to deliver strong long-term performance, bolstered by the dominant [market](../m/market.md) positions and innovation pipelines of its constituent companies. @@ -80,7 +80,7 @@ Invesco QQQ [Trust](../t/trust.md) is structured as a unit investment [trust](.. ### Regulatory Updates -As with all financial instruments, QQQ is subject to regulatory scrutiny and changes. Investors must stay updated with the latest regulatory changes that could impact the ETF’s operation or the broader [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md). +As with all financial instruments, QQQ is subject to regulatory scrutiny and changes. Investors must stay updated with the latest regulatory changes that could impact the ETF’s operation or the broader [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md). ## Financial Instruments and Derivatives @@ -90,11 +90,11 @@ Due to its [liquidity](../l/liquidity.md) and popularity, QQQ is also a popular ### Leveraged and Inverse ETFs -Several leveraged and [inverse ETFs](../i/inverse_etfs.md) track the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md), designed to amplify returns or provide inverse exposure. Examples include: +Several leveraged and [inverse ETFs](../i/inverse_etfs.md) track the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md), designed to amplify returns or provide inverse exposure. Examples include: -- **ProShares Ultra QQQ (QLD)**: Seeks daily investment results that correspond to twice (2x) the daily performance of the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md). -- **ProShares UltraPro QQQ (TQQQ)**: Seeks daily investment results that correspond to three times (3x) the daily performance of the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md). -- **ProShares Short QQQ (PSQ)**: Provides inverse exposure to the daily performance of the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md). +- **ProShares Ultra QQQ (QLD)**: Seeks daily investment results that correspond to twice (2x) the daily performance of the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md). +- **ProShares UltraPro QQQ (TQQQ)**: Seeks daily investment results that correspond to three times (3x) the daily performance of the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md). +- **ProShares Short QQQ (PSQ)**: Provides inverse exposure to the daily performance of the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md). ### Risk Consideration @@ -102,8 +102,8 @@ While leveraged and [inverse ETFs](../i/inverse_etfs.md) [offer](../o/offer.md) ## Conclusion -The Invesco QQQ [Trust](../t/trust.md) (previously known as QQQQ) remains one of the most widely recognized and traded ETFs globally. Its focus on the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md) makes it particularly appealing to investors interested in gaining exposure to leading technology and growth companies. Whether used as a core portfolio holding or as a tactical [asset](../a/asset.md), QQQ provides diversified exposure to sectors that are at the forefront of innovation and growth. +The Invesco QQQ [Trust](../t/trust.md) (previously known as QQQQ) remains one of the most widely recognized and traded ETFs globally. Its focus on the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md) makes it particularly appealing to investors interested in gaining exposure to leading technology and growth companies. Whether used as a core portfolio holding or as a tactical [asset](../a/asset.md), QQQ provides diversified exposure to sectors that are at the forefront of innovation and growth. For more details on the Invesco QQQ ETF, please visit the official [Invesco QQQ Trust website](https://www.invesco.com/qqq-etf). -Understanding the nuances of QQQ, its [underlying](../u/underlying.md) [index](../i/index.md), and its role in portfolio construction can help investors make more informed decisions and potentially capture the growth opportunities presented by the leading companies [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md). \ No newline at end of file +Understanding the nuances of QQQ, its [underlying](../u/underlying.md) [index](../i/index_instrument.md), and its role in portfolio construction can help investors make more informed decisions and potentially capture the growth opportunities presented by the leading companies [listed](../l/listed.md) on the [Nasdaq](../n/nasdaq.md). \ No newline at end of file diff --git a/en/pedia/q/quadruple_witching.md b/en/pedia/q/quadruple_witching.md index 95290080..96a27b73 100644 --- a/en/pedia/q/quadruple_witching.md +++ b/en/pedia/q/quadruple_witching.md @@ -5,10 +5,10 @@ Quadruple Witching is a term in the [finance](../f/finance.md) and trading secto ## Types of Contracts ### Stock Index Futures -Stock [index futures](../i/index_futures.md) are financial contracts obligating the buyer to purchase an [index](../i/index.md) at a predetermined future date and price. These [futures](../f/futures.md) allow investors to speculate on the future [value](../v/value.md) of the [index](../i/index.md), [hedge](../h/hedge.md) against potential losses in the [stock market](../s/stock_market.md) or execute complex [trading strategies](../t/trading_strategies.md). Common examples include [futures](../f/futures.md) on indices like the S&P 500, [NASDAQ](../n/nasdaq.md), and Dow Jones Industrial Average. +Stock [index futures](../i/index_futures.md) are financial contracts obligating the buyer to purchase an [index](../i/index_instrument.md) at a predetermined future date and price. These [futures](../f/futures.md) allow investors to speculate on the future [value](../v/value.md) of the [index](../i/index_instrument.md), [hedge](../h/hedge.md) against potential losses in the [stock market](../s/stock_market.md) or execute complex [trading strategies](../t/trading_strategies.md). Common examples include [futures](../f/futures.md) on indices like the S&P 500, [NASDAQ](../n/nasdaq.md), and Dow Jones Industrial Average. ### Stock Index Options -Stock [index options](../i/index_options.md) are [options](../o/options.md) whose payoff is linked to the performance of a stock [market index](../m/market_index.md). These instruments provide investors the right, but not the obligation, to buy or sell an [index](../i/index.md) at a set price before the contract expires. These [options](../o/options.md) are vital for managing portfolio [risk](../r/risk.md) and leveraging positions in the [market](../m/market.md). +Stock [index options](../i/index_options.md) are [options](../o/options.md) whose payoff is linked to the performance of a stock [market index](../m/market_index.md). These instruments provide investors the right, but not the obligation, to buy or sell an [index](../i/index_instrument.md) at a set price before the contract expires. These [options](../o/options.md) are vital for managing portfolio [risk](../r/risk.md) and leveraging positions in the [market](../m/market.md). ### Single Stock Futures Single stock [futures](../f/futures.md) are contracts obligating the owner to buy or sell a specific quantity of a particular stock at a future date for a price agreed upon today. These [futures](../f/futures.md) are utilized for hedging purposes or to speculate on the expected movements of individual [stocks](../s/stock.md) without needing to own the actual [stocks](../s/stock.md). diff --git a/en/pedia/q/qualifying_annuity.md b/en/pedia/q/qualifying_annuity.md index e157f03d..86e72a14 100644 --- a/en/pedia/q/qualifying_annuity.md +++ b/en/pedia/q/qualifying_annuity.md @@ -33,7 +33,7 @@ Several types of qualifying annuities cater to different retirement goals and [r 2. **Variable Annuities**: Allow investment in a [range](../r/range.md) of securities, enabling the potential for higher returns, but also introducing [market risk](../m/market_risk.md). Returns vary based on the performance of the [underlying](../u/underlying.md) investments. -3. **Indexed Annuities**: Tied to a specific financial [index](../i/index.md), such as the S&P 500, these annuities [offer](../o/offer.md) potential for higher returns than fixed annuities while protecting the [principal](../p/principal.md) against significant losses. +3. **Indexed Annuities**: Tied to a specific financial [index](../i/index_instrument.md), such as the S&P 500, these annuities [offer](../o/offer.md) potential for higher returns than fixed annuities while protecting the [principal](../p/principal.md) against significant losses. 4. **Immediate Annuities**: Begin payouts almost immediately after a [lump-sum payment](../l/lump-sum_payment.md) is made, suitable for those needing current [income](../i/income.md). diff --git a/en/pedia/q/quantitative_approaches.md b/en/pedia/q/quantitative_approaches.md index 08c544c5..c7b0b935 100644 --- a/en/pedia/q/quantitative_approaches.md +++ b/en/pedia/q/quantitative_approaches.md @@ -11,13 +11,13 @@ Statistical [arbitrage](../a/arbitrage.md) (or stat-arb) is a [trading strategy](../t/trading_strategy.md) based on [mean reversion](../m/mean_reversion.md) theory and statistical relationships between different financial instruments. This involves identifying price discrepancies between assets that are believed to have a long-term [equilibrium](../e/equilibrium.md) relationship. If the prices deviate from this [equilibrium](../e/equilibrium.md), traders take long and short positions anticipating a revert to the mean. - **[Pairs Trading](../p/pairs_trading.md)**: One of the most common forms of stat-arb. It involves the identification of two securities with historical price [correlation](../c/correlation.md). When the prices diverge beyond a certain threshold, traders short the overperforming [security](../s/security.md) and buy the underperforming one, betting that prices [will](../w/will.md) converge. -- **[Index](../i/index.md) [Arbitrage](../a/arbitrage.md)**: This strategy involves taking advantage of price differences between the individual components of a stock [index](../i/index.md) and the [index](../i/index.md) itself. +- **[Index](../i/index_instrument.md) [Arbitrage](../a/arbitrage.md)**: This strategy involves taking advantage of price differences between the individual components of a stock [index](../i/index_instrument.md) and the [index](../i/index_instrument.md) itself. ### 2. Momentum Trading [Momentum trading](../m/momentum_trading.md) capitalizes on trends in the [market](../m/market.md). The idea is that assets that have performed well in the past [will](../w/will.md) continue to do so for some time, and those that have performed poorly [will](../w/will.md) continue to decline. [Quantitative momentum](../q/quantitative_momentum.md) strategies involve mathematical analyses of an [asset](../a/asset.md)'s price history to identify such trends. -- **Moments Metrics**: Metrics like Moving Averages (MA), [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)) are often used. +- **Moments Metrics**: Metrics like Moving Averages (MA), [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)) are often used. - **[Risk Management](../r/risk_management.md)**: Utilizing [stop-loss orders](../s/stop-loss_orders.md) to manage the [risk](../r/risk.md) associated with sudden [trend](../t/trend.md) reversals. ### 3. High-Frequency Trading (HFT) diff --git a/en/pedia/q/quantitative_arbitrage.md b/en/pedia/q/quantitative_arbitrage.md index 43d262a8..ded8e313 100644 --- a/en/pedia/q/quantitative_arbitrage.md +++ b/en/pedia/q/quantitative_arbitrage.md @@ -1,6 +1,6 @@ # Quantitative Arbitrage -Quantitative [arbitrage](../a/arbitrage.md), often abbreviated as "quant arb," is a [trading strategy](../t/trading_strategy.md) that applies advanced [mathematical models](../m/mathematical_models_in_trading.md) and computational techniques to exploit [market](../m/market.md) inefficiencies. The primary goal of quantitative [arbitrage](../a/arbitrage.md) is to achieve [risk](../r/risk.md)-adjusted profits through the identification and exploitation of small price discrepancies across different markets or financial instruments. This approach is broad and can be divided into several sub-categories, including statistical [arbitrage](../a/arbitrage.md), [index](../i/index.md) [arbitrage](../a/arbitrage.md), and convertible [arbitrage](../a/arbitrage.md), among others. In this article, we [will](../w/will.md) explore the various dimensions of quantitative [arbitrage](../a/arbitrage.md), detail its methodologies, and examine its role within [financial markets](../f/financial_market.md). +Quantitative [arbitrage](../a/arbitrage.md), often abbreviated as "quant arb," is a [trading strategy](../t/trading_strategy.md) that applies advanced [mathematical models](../m/mathematical_models_in_trading.md) and computational techniques to exploit [market](../m/market.md) inefficiencies. The primary goal of quantitative [arbitrage](../a/arbitrage.md) is to achieve [risk](../r/risk.md)-adjusted profits through the identification and exploitation of small price discrepancies across different markets or financial instruments. This approach is broad and can be divided into several sub-categories, including statistical [arbitrage](../a/arbitrage.md), [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md), and convertible [arbitrage](../a/arbitrage.md), among others. In this article, we [will](../w/will.md) explore the various dimensions of quantitative [arbitrage](../a/arbitrage.md), detail its methodologies, and examine its role within [financial markets](../f/financial_market.md). ## Understanding Quantitative Arbitrage @@ -26,7 +26,7 @@ Statistical [arbitrage](../a/arbitrage.md), often referred to as "stat arb," is ### Index Arbitrage -[Index](../i/index.md) [arbitrage](../a/arbitrage.md) involves exploiting discrepancies between the price of an [index](../i/index.md) and the prices of its constituent securities. For example, if the price of an [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF) deviates from the net [asset](../a/asset.md) [value](../v/value.md) (NAV) of its [underlying](../u/underlying.md) portfolio, arbitrageurs can [profit](../p/profit.md) by buying the cheaper [asset](../a/asset.md) and selling the more expensive one. This strategy helps to ensure that [index](../i/index.md) prices remain in line with the [value](../v/value.md) of their components. +[Index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) involves exploiting discrepancies between the price of an [index](../i/index_instrument.md) and the prices of its constituent securities. For example, if the price of an [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF) deviates from the net [asset](../a/asset.md) [value](../v/value.md) (NAV) of its [underlying](../u/underlying.md) portfolio, arbitrageurs can [profit](../p/profit.md) by buying the cheaper [asset](../a/asset.md) and selling the more expensive one. This strategy helps to ensure that [index](../i/index_instrument.md) prices remain in line with the [value](../v/value.md) of their components. ### Convertible Arbitrage diff --git a/en/pedia/q/quantitative_benchmarking.md b/en/pedia/q/quantitative_benchmarking.md index c7faa197..0ebf996f 100644 --- a/en/pedia/q/quantitative_benchmarking.md +++ b/en/pedia/q/quantitative_benchmarking.md @@ -4,7 +4,7 @@ Quantitative benchmarking is an essential process in the field of [algorithmic t ### Definition and Importance of Quantitative Benchmarking -Quantitative benchmarking refers to the practice of using [quantitative analysis](../q/quantitative_analysis.md) techniques to measure and compare the performance of different [trading algorithms](../t/trading_algorithms.md) or strategies against a [benchmark](../b/benchmark.md). This [benchmark](../b/benchmark.md) could be a traditional stock [index](../i/index.md), a custom [index](../i/index.md) tailored to specific objectives, or any other relevant financial metric. +Quantitative benchmarking refers to the practice of using [quantitative analysis](../q/quantitative_analysis.md) techniques to measure and compare the performance of different [trading algorithms](../t/trading_algorithms.md) or strategies against a [benchmark](../b/benchmark.md). This [benchmark](../b/benchmark.md) could be a traditional stock [index](../i/index_instrument.md), a custom [index](../i/index_instrument.md) tailored to specific objectives, or any other relevant financial metric. The primary goals of quantitative benchmarking are to: - **Evaluate Performance**: It provides a clear measure of how well a [trading strategy](../t/trading_strategy.md) is performing relative to a [benchmark](../b/benchmark.md). @@ -27,7 +27,7 @@ The primary goals of quantitative benchmarking are to: 1. **Absolute Benchmarks**: These benchmarks are absolute performance targets such as a fixed percentage [return](../r/return.md) annually. For example, a [hedge fund](../h/hedge_fund.md) might set an absolute [benchmark](../b/benchmark.md) of achieving a 10% [annual return](../a/annual_return.md). -2. **Relative Benchmarks**: These are more common and involve comparing performance against a [market index](../m/market_index.md) or a [peer group](../p/peer_group.md). For instance, a [portfolio manager](../p/portfolio_manager.md) might be compared against the S&P 500 [index](../i/index.md) to evaluate relative performance. +2. **Relative Benchmarks**: These are more common and involve comparing performance against a [market index](../m/market_index.md) or a [peer group](../p/peer_group.md). For instance, a [portfolio manager](../p/portfolio_manager.md) might be compared against the S&P 500 [index](../i/index_instrument.md) to evaluate relative performance. 3. **[Risk](../r/risk.md)-Adjusted Benchmarks**: These benchmarks take into account not only the [return](../r/return.md) but also the [risk](../r/risk.md) taken to achieve that [return](../r/return.md). Metrics like the [Sharpe ratio](../s/sharpe_ratio.md) are often used in this context. diff --git a/en/pedia/q/quantitative_beta_strategies.md b/en/pedia/q/quantitative_beta_strategies.md index 10b4713c..99c0f60a 100644 --- a/en/pedia/q/quantitative_beta_strategies.md +++ b/en/pedia/q/quantitative_beta_strategies.md @@ -6,11 +6,11 @@ Quantitative [beta](../b/beta.md) strategies aim to optimize the returns generat ### 1. Systematic Beta Capture -Systematic [beta](../b/beta.md) capture involves constructing portfolios that capture the returns of [market](../m/market.md) indices or specific [asset](../a/asset.md) classes systematically. This does not involve active stock picking or [market timing](../m/market_timing.md) but relies on rules-based approaches to track the performance of a [benchmark](../b/benchmark.md) [index](../i/index.md) closely. Examples include [index](../i/index.md) funds and [exchange](../e/exchange.md)-traded funds (ETFs) that replicate the performance of indices like the S&P 500 or MSCI World. +Systematic [beta](../b/beta.md) capture involves constructing portfolios that capture the returns of [market](../m/market.md) indices or specific [asset](../a/asset.md) classes systematically. This does not involve active stock picking or [market timing](../m/market_timing.md) but relies on rules-based approaches to track the performance of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) closely. Examples include [index](../i/index_instrument.md) funds and [exchange](../e/exchange.md)-traded funds (ETFs) that replicate the performance of indices like the S&P 500 or MSCI World. #### Techniques Used -1. **Replication Strategies**: These involve direct replication by holding the same securities as in the [benchmark](../b/benchmark.md) [index](../i/index.md) or synthetic replication using [derivatives](../d/derivatives.md) like [futures](../f/futures.md) and swaps to mimic the [index](../i/index.md) returns. +1. **Replication Strategies**: These involve direct replication by holding the same securities as in the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) or synthetic replication using [derivatives](../d/derivatives.md) like [futures](../f/futures.md) and swaps to mimic the [index](../i/index_instrument.md) returns. 2. **[Optimization](../o/optimization.md) Models**: Techniques like [mean-variance optimization](../m/mean-variance_optimization.md) are used to construct portfolios that achieve the desired [risk](../r/risk.md)-[return](../r/return.md) profile while closely tracking the [benchmark](../b/benchmark.md). @@ -47,7 +47,7 @@ Systematic [beta](../b/beta.md) capture involves constructing portfolios that ca #### Types of Smart Beta Strategies 1. **Fundamental Weighting**: Weighting [stocks](../s/stock.md) based on economic factors like sales, [cash flow](../c/cash_flow.md), [book value](../b/book_value.md), and dividends. -2. **Equal Weighting**: Assigning equal weights to all constituents in an [index](../i/index.md), increasing exposure to smaller companies. +2. **Equal Weighting**: Assigning equal weights to all constituents in an [index](../i/index_instrument.md), increasing exposure to smaller companies. 3. **Minimum [Volatility](../v/volatility.md)**: Creating portfolios with lower overall [volatility](../v/volatility.md) through [covariance](../c/covariance.md) and variance [optimization](../o/optimization.md) techniques. 4. **[Dividend](../d/dividend.md)-[Weighted](../w/weighted.md)**: Focusing on [stocks](../s/stock.md) with high [dividend](../d/dividend.md) yields. diff --git a/en/pedia/q/quantitative_market_timing.md b/en/pedia/q/quantitative_market_timing.md index 10dd1b85..40f7abc7 100644 --- a/en/pedia/q/quantitative_market_timing.md +++ b/en/pedia/q/quantitative_market_timing.md @@ -30,7 +30,7 @@ Moving averages are a simple yet powerful tool used in quantitative [market timi [Mean reversion](../m/mean_reversion.md) strategies are based on the idea that [asset](../a/asset.md) prices [will](../w/will.md) eventually revert to their mean or average level. These strategies typically involve identifying [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions and executing trades to [capitalize](../c/capitalize.md) on the expected reversion. ### Momentum Strategies -[Momentum](../m/momentum.md) strategies focus on assets that have shown a continued upward or downward movement. The core idea is to buy assets that have performed well and sell those that have performed poorly. [Momentum](../m/momentum.md) can be measured through rate-of-change (ROC), [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), or other [technical indicators](../t/technical_indicators.md). +[Momentum](../m/momentum.md) strategies focus on assets that have shown a continued upward or downward movement. The core idea is to buy assets that have performed well and sell those that have performed poorly. [Momentum](../m/momentum.md) can be measured through rate-of-change (ROC), [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), or other [technical indicators](../t/technical_indicators.md). ### Machine Learning Models Machine learning models, such as [neural networks](../n/neural_networks_in_trading.md), [decision trees](../d/decision_trees.md), and [support vector machines](../s/support_vector_machines_in_trading.md) (SVM), can analyze complex patterns in data to generate [market timing](../m/market_timing.md) signals. These models can adapt to new data, improving their predictive abilities over time. diff --git a/en/pedia/q/quantitative_momentum.md b/en/pedia/q/quantitative_momentum.md index afdc2461..844de419 100644 --- a/en/pedia/q/quantitative_momentum.md +++ b/en/pedia/q/quantitative_momentum.md @@ -20,7 +20,7 @@ The core principles of Quantitative [Momentum investing](../m/momentum_investing Quantitative [Momentum](../m/momentum.md) relies on various data types and metrics: -- **Price Data**: Historical price movements are the primary data source, with metrics like [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI) and moving averages being key indicators. +- **Price Data**: Historical price movements are the primary data source, with metrics like [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI) and moving averages being key indicators. - **[Volume](../v/volume.md) Data**: Trading [volume](../v/volume.md) helps validate the strength of a price [trend](../t/trend.md). @@ -34,7 +34,7 @@ Some standard indicators and metrics in Quantitative [Momentum](../m/momentum.md - **Moving Averages**: Particularly the 50-day and 200-day moving averages to assess medium- and long-term trends. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: A [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) measuring the speed and change of price movements. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: A [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) measuring the speed and change of price movements. - **[Volume](../v/volume.md) Strength**: Analyzing [volume](../v/volume.md) trends to confirm price movements. diff --git a/en/pedia/q/quantitative_momentum_strategies.md b/en/pedia/q/quantitative_momentum_strategies.md index 121ba6ac..dc2f54c6 100644 --- a/en/pedia/q/quantitative_momentum_strategies.md +++ b/en/pedia/q/quantitative_momentum_strategies.md @@ -40,7 +40,7 @@ Several investment funds and ETFs incorporate [momentum](../m/momentum.md) strat - **AQR [Capital](../c/capital.md) Management:** AQR offers funds such as the AQR Large Cap [Momentum](../m/momentum.md) Style [Fund](../f/fund.md), focusing on [large-cap stocks](../l/large_cap_stocks.md) exhibiting strong [momentum](../m/momentum.md). More details can be found at [AQR Capital Management](https://www.aqr.com/). -- **[iShares](../i/ishares.md) Edge MSCI USA [Momentum Factor](../m/momentum_factor.md) ETF (MTUM):** This ETF aims to track an [index](../i/index.md) that targets U.S. large- and mid-[capitalization](../c/capitalization.md) [stocks](../s/stock.md) with high [momentum](../m/momentum.md) characteristics. More information can be found on the [iShares website](https://www.ishares.com/us/products/239726/ishares-msci-usa-momentum-factor-etf). +- **[iShares](../i/ishares.md) Edge MSCI USA [Momentum Factor](../m/momentum_factor.md) ETF (MTUM):** This ETF aims to track an [index](../i/index_instrument.md) that targets U.S. large- and mid-[capitalization](../c/capitalization.md) [stocks](../s/stock.md) with high [momentum](../m/momentum.md) characteristics. More information can be found on the [iShares website](https://www.ishares.com/us/products/239726/ishares-msci-usa-momentum-factor-etf). #### Quantitative Models diff --git a/en/pedia/q/quantitative_performance_analysis.md b/en/pedia/q/quantitative_performance_analysis.md index 46686066..45fb2221 100644 --- a/en/pedia/q/quantitative_performance_analysis.md +++ b/en/pedia/q/quantitative_performance_analysis.md @@ -41,7 +41,7 @@ Quantitative performance analysis is a critical aspect of [algorithmic trading]( ### Benchmark Comparison -[Benchmark comparison](../b/benchmark_comparison.md) involves comparing the performance of a [trading strategy](../t/trading_strategy.md) against a standard [benchmark](../b/benchmark.md) [index](../i/index.md) (such as the S&P 500) to evaluate its relative performance. This helps in understanding whether the strategy generates excess returns over the [benchmark](../b/benchmark.md). +[Benchmark comparison](../b/benchmark_comparison.md) involves comparing the performance of a [trading strategy](../t/trading_strategy.md) against a standard [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) (such as the S&P 500) to evaluate its relative performance. This helps in understanding whether the strategy generates excess returns over the [benchmark](../b/benchmark.md). ### Transaction Cost Analysis (TCA) diff --git a/en/pedia/q/quantitative_signal_generation.md b/en/pedia/q/quantitative_signal_generation.md index 31262c3a..859669a4 100644 --- a/en/pedia/q/quantitative_signal_generation.md +++ b/en/pedia/q/quantitative_signal_generation.md @@ -12,7 +12,7 @@ Quantitative signal generation involves various components that work in synergy 2. **Feature Engineering** - Extracting relevant features from raw data that can be used in [predictive models](../p/predictive_models_in_trading.md). - - Creating [technical indicators](../t/technical_indicators.md) like moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), etc. + - Creating [technical indicators](../t/technical_indicators.md) like moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), etc. 3. **Model Selection** - Selecting appropriate models for signal generation, which may include [regression techniques](../r/regression_techniques.md), [time series](../t/time_series.md) models, [neural networks](../n/neural_networks_in_trading.md), or reinforcement [learning algorithms](../l/learning_algorithms_in_trading.md). @@ -68,7 +68,7 @@ Quantitative signals can broadly be classified into several categories based on - Exponential Moving Average (EMA) 2. **[Momentum Indicators](../m/momentum_indicators.md)** - - [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) + - [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) - [Stochastic Oscillator](../s/stochastic_oscillator.md) 3. **[Trend Indicators](../t/trend_indicators.md)** diff --git a/en/pedia/q/quantitative_strategy_development.md b/en/pedia/q/quantitative_strategy_development.md index d45db5dd..063e3282 100644 --- a/en/pedia/q/quantitative_strategy_development.md +++ b/en/pedia/q/quantitative_strategy_development.md @@ -28,7 +28,7 @@ Effective [risk management](../r/risk_management.md) strategies ensure that the ### Technical Analysis -[Technical analysis](../t/technical_analysis.md) involves studying historical price and [volume](../v/volume.md) charts to predict future price movements. [Quantitative strategies](../q/quantitative_strategies_in_trading.md) use [technical indicators](../t/technical_indicators.md) such as moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and [Bollinger Bands](../b/bollinger_bands.md) to generate [trading signals](../t/trading_signals.md). +[Technical analysis](../t/technical_analysis.md) involves studying historical price and [volume](../v/volume.md) charts to predict future price movements. [Quantitative strategies](../q/quantitative_strategies_in_trading.md) use [technical indicators](../t/technical_indicators.md) such as moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and [Bollinger Bands](../b/bollinger_bands.md) to generate [trading signals](../t/trading_signals.md). ### Statistical Arbitrage diff --git a/en/pedia/q/quantitative_strategy_implementation.md b/en/pedia/q/quantitative_strategy_implementation.md index 72a797df..4ec62f75 100644 --- a/en/pedia/q/quantitative_strategy_implementation.md +++ b/en/pedia/q/quantitative_strategy_implementation.md @@ -17,7 +17,7 @@ Statistical [arbitrage](../a/arbitrage.md) involves identifying and exploiting p [Momentum trading](../m/momentum_trading.md) strategies [capitalize](../c/capitalize.md) on the continuation of existing [market](../m/market.md) trends. Traders believe that assets that have performed well in the past [will](../w/will.md) continue to do so in the near future. Key techniques in [momentum trading](../m/momentum_trading.md) include: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** This [indicator](../i/indicator.md) measures the speed and change of price movements. High RSI values indicate [overbought](../o/overbought.md) conditions, while low values suggest [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** This [indicator](../i/indicator.md) measures the speed and change of price movements. High RSI values indicate [overbought](../o/overbought.md) conditions, while low values suggest [oversold](../o/oversold.md) conditions. - **Moving Averages:** Traders use [moving average crossovers](../m/moving_average_crossovers.md) to identify [trend](../t/trend.md) changes. ### Market Making diff --git a/en/pedia/q/quantitative_technical_analysis.md b/en/pedia/q/quantitative_technical_analysis.md index 05b56949..ba043a11 100644 --- a/en/pedia/q/quantitative_technical_analysis.md +++ b/en/pedia/q/quantitative_technical_analysis.md @@ -41,7 +41,7 @@ Machine learning models are increasingly used in QTA due to their ability to ide ## Momentum Strategies [Momentum](../m/momentum.md) strategies involve buying securities that have shown an upward price [trend](../t/trend.md) and selling those that have shown a downward [trend](../t/trend.md). Key concepts include: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measures the speed and change of price movements to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measures the speed and change of price movements to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: Analyzes the relationship between two moving averages to identify [momentum](../m/momentum.md) changes. ## Mean Reversion Strategies diff --git a/en/pedia/q/quantitative_volatility_strategies.md b/en/pedia/q/quantitative_volatility_strategies.md index 6b41ea7f..57e08c86 100644 --- a/en/pedia/q/quantitative_volatility_strategies.md +++ b/en/pedia/q/quantitative_volatility_strategies.md @@ -44,7 +44,7 @@ Straddles and strangles are [options](../o/options.md) strategies that involve b ### Dispersion Trading -In [dispersion](../d/dispersion.md) trading, a [trader](../t/trader.md) aims to exploit the difference in implied [volatility](../v/volatility.md) between an [index](../i/index.md) and its individual components. +In [dispersion](../d/dispersion.md) trading, a [trader](../t/trader.md) aims to exploit the difference in implied [volatility](../v/volatility.md) between an [index](../i/index_instrument.md) and its individual components. ### Gamma Scalping @@ -68,7 +68,7 @@ The [volatility smile](../v/volatility_smile.md) is a graphical representation s ### VIX Index -The VIX ([Volatility](../v/volatility.md) [Index](../i/index.md)) is a popular measure of the [stock market](../s/stock_market.md)'s expectation of [volatility](../v/volatility.md), often referred to as the "fear gauge". +The VIX ([Volatility](../v/volatility.md) [Index](../i/index_instrument.md)) is a popular measure of the [stock market](../s/stock_market.md)'s expectation of [volatility](../v/volatility.md), often referred to as the "fear gauge". ## Risk Management diff --git a/en/pedia/q/quanto_swap.md b/en/pedia/q/quanto_swap.md index 0a44ee86..ed39cb03 100644 --- a/en/pedia/q/quanto_swap.md +++ b/en/pedia/q/quanto_swap.md @@ -6,7 +6,7 @@ A **quanto [swap](../s/swap.md)** is a type of [derivative](../d/derivative.md) At its core, a quanto [swap](../s/swap.md) combines elements of traditional swaps and quantos. Traditional swaps involve the [exchange](../e/exchange.md) of cash flows between two parties, usually to [hedge](../h/hedge.md) [interest rate](../i/interest_rate.md) or [currency](../c/currency.md) risks. For example, in a basic [interest rate swap](../i/interest_rate_swap.md), one party might [exchange](../e/exchange.md) fixed-rate [interest](../i/interest.md) payments for floating-rate payments with another party. Quantos further extend this concept by adjusting for [currency](../c/currency.md) differentials. -In a quanto [swap](../s/swap.md), the two legs of the [swap](../s/swap.md) might involve different currencies, but the settlement amounts are calculated based on the performance of a specific financial metric (like the [interest rate](../i/interest_rate.md) or [equity](../e/equity.md) [index](../i/index.md)) and then converted back to the domestic [currency](../c/currency.md) of one of the [swap](../s/swap.md) participants at a predefined [exchange rate](../e/exchange_rate.md). This essentially offers investors the best of both worlds: exposure to a foreign financial metric with the certainty of domestic [currency](../c/currency.md) settlement. +In a quanto [swap](../s/swap.md), the two legs of the [swap](../s/swap.md) might involve different currencies, but the settlement amounts are calculated based on the performance of a specific financial metric (like the [interest rate](../i/interest_rate.md) or [equity](../e/equity.md) [index](../i/index_instrument.md)) and then converted back to the domestic [currency](../c/currency.md) of one of the [swap](../s/swap.md) participants at a predefined [exchange rate](../e/exchange_rate.md). This essentially offers investors the best of both worlds: exposure to a foreign financial metric with the certainty of domestic [currency](../c/currency.md) settlement. ## Types of Quanto Swaps @@ -14,7 +14,7 @@ There are several specific forms that quanto swaps can take, each designed to ad 1. **Quanto [Interest Rate Swaps](../i/interest_rate_swaps.md)**: Here, the parties agree to [swap](../s/swap.md) [interest](../i/interest.md) payments where at least one [leg](../l/leg.md) of the [swap](../s/swap.md) is based on a foreign [interest rate](../i/interest_rate.md) but the payments themselves are made in a different [currency](../c/currency.md). -2. **Quanto [Equity](../e/equity.md) Swaps**: This type involves swapping cash flows based on the performance of an [equity](../e/equity.md) [index](../i/index.md) in a different country, converted back into the domestic [currency](../c/currency.md) at a pre-determined rate. +2. **Quanto [Equity](../e/equity.md) Swaps**: This type involves swapping cash flows based on the performance of an [equity](../e/equity.md) [index](../i/index_instrument.md) in a different country, converted back into the domestic [currency](../c/currency.md) at a pre-determined rate. 3. **Quanto [Commodity](../c/commodity.md) Swaps**: In this form, [swap](../s/swap.md) payments are based on the changes in the price of a [commodity](../c/commodity.md), with results settled in a different [currency](../c/currency.md), isolated from the [currency](../c/currency.md) fluctuations. @@ -32,7 +32,7 @@ Valuating a quanto [swap](../s/swap.md) involves several factors that must be co - **[Interest Rate](../i/interest_rate.md) Differential**: The comparative [interest](../i/interest.md) rates between the two currencies involved play a significant role. -- **[Volatility](../v/volatility.md)**: The [volatility](../v/volatility.md) of the [underlying asset](../u/underlying_asset.md) whose performance the [swap](../s/swap.md) is based on must be considered. For example, in a quanto [equity swap](../e/equity_swap.md), the [volatility](../v/volatility.md) of the [equity](../e/equity.md) [index](../i/index.md) [will](../w/will.md) be key to the overall [valuation](../v/valuation.md). +- **[Volatility](../v/volatility.md)**: The [volatility](../v/volatility.md) of the [underlying asset](../u/underlying_asset.md) whose performance the [swap](../s/swap.md) is based on must be considered. For example, in a quanto [equity swap](../e/equity_swap.md), the [volatility](../v/volatility.md) of the [equity](../e/equity.md) [index](../i/index_instrument.md) [will](../w/will.md) be key to the overall [valuation](../v/valuation.md). - **[Correlation](../c/correlation.md)**: The level of [correlation](../c/correlation.md) between the [underlying asset](../u/underlying_asset.md) and the [exchange rate](../e/exchange_rate.md) should be analyzed. Lower [correlation](../c/correlation.md) typically implies a greater benefit from isolating [currency](../c/currency.md) [risk](../r/risk.md). @@ -50,9 +50,9 @@ While quanto swaps [offer](../o/offer.md) unique advantages, they are not free f ## Practical Example -Consider an American [investor](../i/investor.md), who expects that the performance of the Japanese [equity](../e/equity.md) [index](../i/index.md) [Nikkei](../n/nikkei.md) [will](../w/will.md) [outperform](../o/outperform.md) the American S&P 500. [Direct investment](../d/direct_investment.md) in [Nikkei](../n/nikkei.md), however, bears the [risk](../r/risk.md) of [depreciation](../d/depreciation.md) of the Japanese Yen relative to the US Dollar. To circumvent this [risk](../r/risk.md), the [investor](../i/investor.md) can enter into a quanto [equity swap](../e/equity_swap.md). +Consider an American [investor](../i/investor.md), who expects that the performance of the Japanese [equity](../e/equity.md) [index](../i/index_instrument.md) [Nikkei](../n/nikkei.md) [will](../w/will.md) [outperform](../o/outperform.md) the American S&P 500. [Direct investment](../d/direct_investment.md) in [Nikkei](../n/nikkei.md), however, bears the [risk](../r/risk.md) of [depreciation](../d/depreciation.md) of the Japanese Yen relative to the US Dollar. To circumvent this [risk](../r/risk.md), the [investor](../i/investor.md) can enter into a quanto [equity swap](../e/equity_swap.md). -In this [swap](../s/swap.md), the [payment](../p/payment.md) [leg](../l/leg.md) tied to the [Nikkei](../n/nikkei.md) [index](../i/index.md) [will](../w/will.md) be settled in US Dollars using a pre-determined [exchange rate](../e/exchange_rate.md). This ensures that any gains made from the [Nikkei](../n/nikkei.md) [index](../i/index.md) are not eaten away by potential [depreciation](../d/depreciation.md) in the Yen. +In this [swap](../s/swap.md), the [payment](../p/payment.md) [leg](../l/leg.md) tied to the [Nikkei](../n/nikkei.md) [index](../i/index_instrument.md) [will](../w/will.md) be settled in US Dollars using a pre-determined [exchange rate](../e/exchange_rate.md). This ensures that any gains made from the [Nikkei](../n/nikkei.md) [index](../i/index_instrument.md) are not eaten away by potential [depreciation](../d/depreciation.md) in the Yen. ## Market Participants diff --git a/en/pedia/q/quick_trading_techniques.md b/en/pedia/q/quick_trading_techniques.md index aa40286f..04cb6dc6 100644 --- a/en/pedia/q/quick_trading_techniques.md +++ b/en/pedia/q/quick_trading_techniques.md @@ -81,7 +81,7 @@ Platforms such as [Bloomberg](../b/bloomberg.md) Terminal and [Reuters](../r/reu [Momentum trading](../m/momentum_trading.md) involves buying or selling an [asset](../a/asset.md) when it's demonstrating strong price movement in a particular direction. ### Methodology -1. **[Technical Indicators](../t/technical_indicators.md)**: Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [volume indicators](../v/volume_indicators.md) are widely used. +1. **[Technical Indicators](../t/technical_indicators.md)**: Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [volume indicators](../v/volume_indicators.md) are widely used. 2. **[Trend](../t/trend.md) Confirmation**: [Momentum](../m/momentum.md) traders look for confirmation of trends before entering trades. 3. **Position Scaling**: Positions may be scaled in and out based on the strength of the [trend](../t/trend.md). diff --git a/en/pedia/r/r-squared_in_trading.md b/en/pedia/r/r-squared_in_trading.md index f36752b2..ace8eb87 100644 --- a/en/pedia/r/r-squared_in_trading.md +++ b/en/pedia/r/r-squared_in_trading.md @@ -7,7 +7,7 @@ R-squared can help traders and investors understand how much of a portfolio's pe - **[Portfolio Management](../p/portfolio_management.md):** Helps portfolio managers determine the level of [diversification](../d/diversification.md) and [systemic risk](../s/systemic_risk.md) relative to [market](../m/market.md) performance. - **[Risk Management](../r/risk_management.md):** Assists in assessing the [risk](../r/risk.md) of different investment strategies and their [correlation](../c/correlation.md) with overall [market](../m/market.md) [volatility](../v/volatility.md). -- **Performance Evaluation:** Enables the comparison of [multiple](../m/multiple.md) funds or [trading strategies](../t/trading_strategies.md) to understand which ones are better at tracking or outperforming a given [index](../i/index.md). +- **Performance Evaluation:** Enables the comparison of [multiple](../m/multiple.md) funds or [trading strategies](../t/trading_strategies.md) to understand which ones are better at tracking or outperforming a given [index](../i/index_instrument.md). - **[Quantitative Analysis](../q/quantitative_analysis.md):** Utilized in various [quantitative models](../q/quantitative_models.md) to enhance predictive capabilities and refine [trading strategies](../t/trading_strategies.md) based on historical [performance metrics](../p/performance_metrics.md). ## Calculation of R-Squared @@ -24,7 +24,7 @@ The higher the R-squared [value](../v/value.md), the more accurately the indepen ## Interpreting R-Squared Values in Trading A higher R-squared [value](../v/value.md) implies a model that closely fits the data, meaning the independent variables ([market](../m/market.md) indices, [economic indicators](../e/economic_indicators.md), etc.) effectively explain the variance in the dependent variable ([portfolio performance](../p/portfolio_performance.md)). For [trading strategies](../t/trading_strategies.md): -- **High R-Squared (closer to 1):** Indicates that a large proportion of the portfolio’s movements can be explained by the [benchmark](../b/benchmark.md) [index](../i/index.md). This suggests less [alpha generation](../a/alpha_generation.md) and higher [systematic risk](../s/systematic_risk.md). +- **High R-Squared (closer to 1):** Indicates that a large proportion of the portfolio’s movements can be explained by the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). This suggests less [alpha generation](../a/alpha_generation.md) and higher [systematic risk](../s/systematic_risk.md). - **Low R-Squared (closer to 0):** Suggests that the portfolio returns are largely independent of the [market](../m/market.md) performance, possibly indicating higher [alpha generation](../a/alpha_generation.md) and higher [idiosyncratic risk](../i/idiosyncratic_risk.md). ### Example: R-Squared in Hedge Funds @@ -58,7 +58,7 @@ Link: [R Project for Statistical Computing](https://www.r-project.org/) ## Incorporating R-Squared in Trading Algorithms [Algorithmic trading](../a/algorithmic_trading.md) strategies often incorporate R-squared to enhance their robustness and predictive accuracy. Here are steps algorithms might follow: -1. **Data Collection:** Gather historical price data for both the portfolio and the [benchmark](../b/benchmark.md) [index](../i/index.md). +1. **Data Collection:** Gather historical price data for both the portfolio and the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). 2. **[Regression Analysis](../r/regression_analysis.md):** Perform [linear regression](../l/linear_regression.md) to model the relationship between the [portfolio performance](../p/portfolio_performance.md) and the [benchmark](../b/benchmark.md). 3. **Calculate R-Squared:** Use the regression output to calculate the R-squared [value](../v/value.md), assessing the goodness of fit. 4. **Strategy Adjustment:** Adjust [trading strategies](../t/trading_strategies.md) based on the R-squared [value](../v/value.md). A low R-squared suggests potential for higher [alpha](../a/alpha.md) whereas a high R-squared indicates better tracking of the [benchmark](../b/benchmark.md). diff --git a/en/pedia/r/rally.md b/en/pedia/r/rally.md index b3f2bc73..7c934f3e 100644 --- a/en/pedia/r/rally.md +++ b/en/pedia/r/rally.md @@ -5,7 +5,7 @@ A rally in [finance](../f/finance.md) refers to a period during which the price ## Types of Rallies ### Market-Wide Rally -A [market](../m/market.md)-wide rally happens when a broad [index](../i/index.md), like the S&P 500, Dow Jones Industrial Average, or [NASDAQ](../n/nasdaq.md), experiences an overall upward trajectory. This type of rally often reflects widespread [investor](../i/investor.md) optimism and can be based on macroeconomic factors such as strong GDP growth, lower [unemployment](../u/unemployment.md) rates, or favorable monetary policies from central banks. +A [market](../m/market.md)-wide rally happens when a broad [index](../i/index_instrument.md), like the S&P 500, Dow Jones Industrial Average, or [NASDAQ](../n/nasdaq.md), experiences an overall upward trajectory. This type of rally often reflects widespread [investor](../i/investor.md) optimism and can be based on macroeconomic factors such as strong GDP growth, lower [unemployment](../u/unemployment.md) rates, or favorable monetary policies from central banks. ### Sector-Specific Rally A sector-specific rally is confined to a particular sector of the [economy](../e/economy.md), such as technology, healthcare, or energy. These rallies are generally driven by sector-specific news, such as technological breakthroughs, regulatory changes, or shifts in consumer behavior. For instance, an announcement of a groundbreaking drug can trigger a rally in the biotechnology sector. @@ -47,7 +47,7 @@ After reaching a peak, the [market](../m/market.md) may undergo a period of [con ## Analyzing Rallies ### Technical Analysis -Technical analysts use charts, patterns, and indicators to identify potential rallies. Tools like moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [volume indicators](../v/volume_indicators.md) can help traders spot signs of an impending rally. +Technical analysts use charts, patterns, and indicators to identify potential rallies. Tools like moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [volume indicators](../v/volume_indicators.md) can help traders spot signs of an impending rally. ### Fundamental Analysis Fundamental analysts look at [economic indicators](../e/economic_indicators.md), corporate [earnings](../e/earnings.md), and [financial statements](../f/financial_statements.md) to predict rallies. Understanding the [intrinsic value](../i/intrinsic_value.md) of an [asset](../a/asset.md) can help investors identify when a [security](../s/security.md) is [undervalued](../u/undervalued.md) and poised for a rally. diff --git a/en/pedia/r/random_walk_theory.md b/en/pedia/r/random_walk_theory.md index ef9e5199..6414d574 100644 --- a/en/pedia/r/random_walk_theory.md +++ b/en/pedia/r/random_walk_theory.md @@ -47,10 +47,10 @@ However, certain empirical studies have also challenged the Random Walk Theory b ### Investment Strategies If the Random Walk Theory holds true, then no amount of analysis, whether it be fundamental or technical, [will](../w/will.md) [yield](../y/yield.md) consistent excess returns over the [market](../m/market.md). This implies that: - **[Active Management](../a/active_management.md)** - [Active management](../a/active_management.md) strategies, which rely on selecting [stocks](../s/stock.md) based on research and predictions, would be less likely to [outperform](../o/outperform.md) passive, [index](../i/index.md)-based strategies. + [Active management](../a/active_management.md) strategies, which rely on selecting [stocks](../s/stock.md) based on research and predictions, would be less likely to [outperform](../o/outperform.md) passive, [index](../i/index_instrument.md)-based strategies. - **Passive Management** - Investors might find more [value](../v/value.md) in passive management strategies like buying and holding a diversified portfolio or utilizing [index](../i/index.md) funds. + Investors might find more [value](../v/value.md) in passive management strategies like buying and holding a diversified portfolio or utilizing [index](../i/index_instrument.md) funds. ### Algorithmic Trading In the realm of [algorithmic trading](../a/accountability.md), the Random Walk Theory presents a significant challenge. Algorithms often rely on historical data and patterns to make trading decisions. If prices follow a truly random walk, algorithms based solely on historical data may not achieve consistent profitability. diff --git a/en/pedia/r/range_trading.md b/en/pedia/r/range_trading.md index 2eb6b2af..84839734 100644 --- a/en/pedia/r/range_trading.md +++ b/en/pedia/r/range_trading.md @@ -16,7 +16,7 @@ Resistance, conversely, is a [price level](../p/price_level.md) where a [securit ### Identifying the Range -The first step in [range](../r/range.md) trading is to identify securities that are trading within a [range](../r/range.md). This can be observed through price charts, where prices fluctuate between [support and resistance](../s/support_and_resistance.md) levels over a period of time. Traders utilize various [technical analysis](../t/technical_analysis.md) tools, such as trendlines, moving averages, [Bollinger Bands](../b/bollinger_bands.md), and the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), to identify these ranges. +The first step in [range](../r/range.md) trading is to identify securities that are trading within a [range](../r/range.md). This can be observed through price charts, where prices fluctuate between [support and resistance](../s/support_and_resistance.md) levels over a period of time. Traders utilize various [technical analysis](../t/technical_analysis.md) tools, such as trendlines, moving averages, [Bollinger Bands](../b/bollinger_bands.md), and the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), to identify these ranges. ### Trading the Range diff --git a/en/pedia/r/rate_of_change_(roc).md b/en/pedia/r/rate_of_change_(roc).md index 901fa22d..9315c4bb 100644 --- a/en/pedia/r/rate_of_change_(roc).md +++ b/en/pedia/r/rate_of_change_(roc).md @@ -78,7 +78,7 @@ As a [lagging indicator](../l/lagging_indicator.md), ROC utilizes historical pri ### Requires Complementary Indicators -To confirm the signals generated by ROC, it's often necessary to utilize it in combination with additional indicators such as Moving Averages, MACD, or [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI). +To confirm the signals generated by ROC, it's often necessary to utilize it in combination with additional indicators such as Moving Averages, MACD, or [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI). ## Examples of ROC Utilization in Trading Platforms diff --git a/en/pedia/r/rate_of_return_forecasting.md b/en/pedia/r/rate_of_return_forecasting.md index 744cccc3..5398fd3f 100644 --- a/en/pedia/r/rate_of_return_forecasting.md +++ b/en/pedia/r/rate_of_return_forecasting.md @@ -50,7 +50,7 @@ This approach involves analyzing [financial statements](../f/financial_statements.md), [economic indicators](../e/economic_indicators.md), and other relevant qualitative and quantitative factors to forecast future returns. Models include the [Dividend](../d/dividend.md) [Discount](../d/discount.md) Model (DDM) and Discounted [Cash Flow](../c/cash_flow.md) (DCF) analysis. 4. **[Technical Analysis](../t/technical_analysis.md):** - [Technical analysis](../t/technical_analysis.md) focuses on historical price and [volume](../v/volume.md) data to predict future price movements. It includes various [chart patterns](../c/chart_patterns.md), [technical indicators](../t/technical_indicators.md) (e.g., Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), and [trading signals](../t/trading_signals.md). + [Technical analysis](../t/technical_analysis.md) focuses on historical price and [volume](../v/volume.md) data to predict future price movements. It includes various [chart patterns](../c/chart_patterns.md), [technical indicators](../t/technical_indicators.md) (e.g., Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), and [trading signals](../t/trading_signals.md). 5. **[Sentiment Analysis](../s/sentiment_analysis.md):** [Sentiment analysis](../s/sentiment_analysis.md) uses [natural language processing](../n/natural_language_processing_(nlp)_in_trading.md) (NLP) and machine learning to gauge [market sentiment](../m/market_sentiment.md) based on news articles, [social media](../s/social_media.md), and other textual data sources. It provides insights into the prevailing [market](../m/market.md) mood, which can influence future returns. diff --git a/en/pedia/r/rate_of_return_metrics.md b/en/pedia/r/rate_of_return_metrics.md index 3f079f47..17fac6f0 100644 --- a/en/pedia/r/rate_of_return_metrics.md +++ b/en/pedia/r/rate_of_return_metrics.md @@ -61,7 +61,7 @@ where: The [Sortino Ratio](../s/sortino_ratio.md) is highly beneficial in [algorithmic trading](../a/algorithmic_trading.md) strategies where minimizing [downside risk](../d/downside_risk.md) is crucial, such as in strategies designed to protect from [market](../m/market.md) downturns. ## Alpha -[Alpha](../a/alpha.md) measures an investment's performance relative to a [benchmark](../b/benchmark.md) [index](../i/index.md). An [alpha](../a/alpha.md) greater than 0 suggests that the investment has outperformed the [market](../m/market.md), while an [alpha](../a/alpha.md) less than 0 indicates underperformance. +[Alpha](../a/alpha.md) measures an investment's performance relative to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). An [alpha](../a/alpha.md) greater than 0 suggests that the investment has outperformed the [market](../m/market.md), while an [alpha](../a/alpha.md) less than 0 indicates underperformance. ### Formula [Alpha](../a/alpha.md) is calculated as: @@ -100,7 +100,7 @@ Maximum [Drawdown](../d/drawdown.md) represents the peak-to-[trough](../t/trough MDD is a critical metric in [algorithmic trading](../a/algorithmic_trading.md), allowing traders to assess the resilience of their strategies during adverse [market](../m/market.md) conditions. ## Information Ratio -[Information Ratio](../i/information_ratio.md) measures the [risk-adjusted return](../r/risk-adjusted_return.md) of an investment portfolio compared to a [benchmark](../b/benchmark.md) [index](../i/index.md), considering the [tracking error](../t/tracking_error.md). +[Information Ratio](../i/information_ratio.md) measures the [risk-adjusted return](../r/risk-adjusted_return.md) of an investment portfolio compared to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), considering the [tracking error](../t/tracking_error.md). ### Formula \[ IR = \frac{R_p - R_b}{\sigma_{R_p - R_b}} \] diff --git a/en/pedia/r/raw_beta_analysis.md b/en/pedia/r/raw_beta_analysis.md index 5efab0e8..49f84a49 100644 --- a/en/pedia/r/raw_beta_analysis.md +++ b/en/pedia/r/raw_beta_analysis.md @@ -15,7 +15,7 @@ Raw [Beta](../b/beta.md) specifically refers to the unadjusted [Beta](../b/beta. ## Calculation -Raw [Beta](../b/beta.md) is typically calculated using [regression analysis](../r/regression_analysis.md), where the returns of an [asset](../a/asset.md) are regressed against the returns of a [benchmark](../b/benchmark.md) [index](../i/index.md) over a certain period. The common mathematical formula for [Beta](../b/beta.md) is: +Raw [Beta](../b/beta.md) is typically calculated using [regression analysis](../r/regression_analysis.md), where the returns of an [asset](../a/asset.md) are regressed against the returns of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) over a certain period. The common mathematical formula for [Beta](../b/beta.md) is: \[ \[beta](../b/beta.md) = \frac{\text{Cov}(R_i, R_m)}{\text{Var}(R_m)} \] @@ -66,7 +66,7 @@ Several companies [offer](../o/offer.md) advanced tools and platforms for Raw [B ## Case Study: A Simple Regression Analysis -Let’s consider a simplified example of Raw [Beta](../b/beta.md) calculation through [regression analysis](../r/regression_analysis.md) using historical data for a hypothetical stock and the S&P 500 [index](../i/index.md). +Let’s consider a simplified example of Raw [Beta](../b/beta.md) calculation through [regression analysis](../r/regression_analysis.md) using historical data for a hypothetical stock and the S&P 500 [index](../i/index_instrument.md). - Extract monthly returns for both the stock and the S&P 500 over a period of 5 years. - Perform a simple ordinary least square (OLS) regression where the dependent variable is the stock's returns and the independent variable is the S&P 500's returns. diff --git a/en/pedia/r/real_effective_exchange_rate_(reer).md b/en/pedia/r/real_effective_exchange_rate_(reer).md index 61122e99..876f39cf 100644 --- a/en/pedia/r/real_effective_exchange_rate_(reer).md +++ b/en/pedia/r/real_effective_exchange_rate_(reer).md @@ -22,15 +22,15 @@ The calculation of REER involves several steps, integrating the components menti 1. **Obtain [Nominal](../n/nominal.md) [Exchange](../e/exchange.md) Rates**: Gather the [nominal](../n/nominal.md) [exchange](../e/exchange.md) rates for the [home](../h/home.md) [currency](../c/currency.md) against each [currency](../c/currency.md) in the basket. 2. **Apply [Trade](../t/trade.md) Weights**: Assign [trade](../t/trade.md) weights to each [currency](../c/currency.md) based on the proportion of [bilateral trade](../b/bilateral_trade.md). -3. **Adjust for [Inflation](../i/inflation.md)**: Adjust the [nominal](../n/nominal.md) [exchange](../e/exchange.md) rates with relative price levels (usually using Consumer Price [Index](../i/index.md) (CPI) or Producer Price [Index](../i/index.md) (PPI)). +3. **Adjust for [Inflation](../i/inflation.md)**: Adjust the [nominal](../n/nominal.md) [exchange](../e/exchange.md) rates with relative price levels (usually using Consumer Price [Index](../i/index_instrument.md) (CPI) or Producer Price [Index](../i/index_instrument.md) (PPI)). 4. **Calculate the [Weighted Average](../w/weighted_average.md)**: Calculate the [weighted average](../w/weighted_average.md) of the adjusted [exchange](../e/exchange.md) rates to derive the REER. ### Formula \[ \text{REER} = \text{NER} \times \left(\frac{\text{CPI}_{\text{domestic}}}{\text{CPI}_{\text{foreign}}}\right) \times \text{[Trade](../t/trade.md) Weight} \] Where: - \( \text{NER} \) is the [nominal](../n/nominal.md) [exchange rate](../e/exchange_rate.md). -- \( \text{CPI}_{\text{domestic}} \) is the Consumer Price [Index](../i/index.md) of the [home](../h/home.md) country. -- \( \text{CPI}_{\text{foreign}} \) is the Consumer Price [Index](../i/index.md) of the foreign country. +- \( \text{CPI}_{\text{domestic}} \) is the Consumer Price [Index](../i/index_instrument.md) of the [home](../h/home.md) country. +- \( \text{CPI}_{\text{foreign}} \) is the Consumer Price [Index](../i/index_instrument.md) of the foreign country. - [Trade](../t/trade.md) Weight reflects the significance of [trade](../t/trade.md) with the foreign country. ## Importance of REER diff --git a/en/pedia/r/real_gross_domestic_product_(gdp).md b/en/pedia/r/real_gross_domestic_product_(gdp).md index b8af9750..f31263b9 100644 --- a/en/pedia/r/real_gross_domestic_product_(gdp).md +++ b/en/pedia/r/real_gross_domestic_product_(gdp).md @@ -24,7 +24,7 @@ The production approach calculates GDP by adding the [value added](../v/value_ad ## Adjusting for Inflation: The GDP Deflator -To convert [nominal](../n/nominal.md) GDP into real GDP, economists use the GDP deflator, a price [index](../i/index.md) that measures the change in prices of all new, domestically produced, final goods and services in an [economy](../e/economy.md). The formula is: +To convert [nominal](../n/nominal.md) GDP into real GDP, economists use the GDP deflator, a price [index](../i/index_instrument.md) that measures the change in prices of all new, domestically produced, final goods and services in an [economy](../e/economy.md). The formula is: \[ \text{Real GDP} = \frac{\text{[Nominal](../n/nominal.md) GDP}}{\text{GDP Deflator}} \times 100 \] ## Importance of Real GDP diff --git a/en/pedia/r/real_income.md b/en/pedia/r/real_income.md index 84cce607..e8e09eff 100644 --- a/en/pedia/r/real_income.md +++ b/en/pedia/r/real_income.md @@ -8,9 +8,9 @@ Most economic discussions distinguish between [nominal](../n/nominal.md) [income The formula to calculate real [income](../i/income.md) is as follows: -\[ \text{Real Income} = \frac{\text{Nominal Income}}{\text{[Price Level](../p/price_level.md) [Index](../i/index.md)}} \times 100 \] +\[ \text{Real Income} = \frac{\text{Nominal Income}}{\text{[Price Level](../p/price_level.md) [Index](../i/index_instrument.md)}} \times 100 \] -Here, the [Price Level](../p/price_level.md) [Index](../i/index.md) is typically derived from price indices like the Consumer Price [Index](../i/index.md) (CPI) or the GDP deflator, which measure the average change in prices over time for a [basket of goods](../b/basket_of_goods.md) and services. +Here, the [Price Level](../p/price_level.md) [Index](../i/index_instrument.md) is typically derived from price indices like the Consumer Price [Index](../i/index_instrument.md) (CPI) or the GDP deflator, which measure the average change in prices over time for a [basket of goods](../b/basket_of_goods.md) and services. ### Example diff --git a/en/pedia/r/real_interest_rate.md b/en/pedia/r/real_interest_rate.md index 73366f06..1e3208cf 100644 --- a/en/pedia/r/real_interest_rate.md +++ b/en/pedia/r/real_interest_rate.md @@ -151,7 +151,7 @@ For fixed-[income](../i/income.md) investments, real [interest](../i/interest.md ### Inflation Measurement -Accurately measuring [inflation](../i/inflation.md) is challenging but essential for calculating real [interest](../i/interest.md) rates. [Variability](../v/variability.md) in [inflation](../i/inflation.md) indexes, such as the Consumer Price [Index](../i/index.md) (CPI), can lead to different real rate estimates. +Accurately measuring [inflation](../i/inflation.md) is challenging but essential for calculating real [interest](../i/interest.md) rates. [Variability](../v/variability.md) in [inflation](../i/inflation.md) indexes, such as the Consumer Price [Index](../i/index_instrument.md) (CPI), can lead to different real rate estimates. ### Expectations versus Actuals diff --git a/en/pedia/r/rebalancing_frequency.md b/en/pedia/r/rebalancing_frequency.md index 0968b6a0..3b048600 100644 --- a/en/pedia/r/rebalancing_frequency.md +++ b/en/pedia/r/rebalancing_frequency.md @@ -12,7 +12,7 @@ #### 1. Investment Strategy -- **Passive vs Active**: Passive strategies, such as [Index](../i/index.md) Funds and ETFs, often rebalance less frequently (e.g., quarterly or annually) as they aim to replicate the performance of indices. Active strategies might rebalance more frequently to [capitalize](../c/capitalize.md) on shorter-term [market](../m/market.md) opportunities. +- **Passive vs Active**: Passive strategies, such as [Index](../i/index_instrument.md) Funds and ETFs, often rebalance less frequently (e.g., quarterly or annually) as they aim to replicate the performance of indices. Active strategies might rebalance more frequently to [capitalize](../c/capitalize.md) on shorter-term [market](../m/market.md) opportunities. - **[Mean Reversion](../m/mean_reversion.md) vs [Momentum](../m/momentum.md)**: Strategies based on [mean reversion](../m/mean_reversion.md) may require more frequent [rebalancing](../r/rebalancing.md) to exploit short-term price corrections, whereas [momentum](../m/momentum.md) strategies might rebalance less frequently to let winners run. #### 2. Market Conditions diff --git a/en/pedia/r/recession-proof_strategies.md b/en/pedia/r/recession-proof_strategies.md index 2156d073..d8946373 100644 --- a/en/pedia/r/recession-proof_strategies.md +++ b/en/pedia/r/recession-proof_strategies.md @@ -47,7 +47,7 @@ A [market](../m/market.md)-[neutral](../n/neutral.md) strategy seeks to exploit #### Process of Implementation: - **[Z-Score Analysis](../z/z-score_analysis.md)**: Identifying [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions based on the [Z-score](../z/z-score.md) of [asset](../a/asset.md) prices. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Employing RSI to detect buy and sell opportunities when prices deviate significantly from their historical average. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Employing RSI to detect buy and sell opportunities when prices deviate significantly from their historical average. ### 6. Defensive Assets and Hedging Utilizing defensive assets like gold, [utility](../u/utility.md) [stocks](../s/stock.md), and government bonds can provide stability during [market](../m/market.md) downturns. Hedging can protect a portfolio from adverse price movements. diff --git a/en/pedia/r/recession.md b/en/pedia/r/recession.md index d67a34a9..c9934ca0 100644 --- a/en/pedia/r/recession.md +++ b/en/pedia/r/recession.md @@ -31,7 +31,7 @@ GDP is the most comprehensive measure of overall economic activity. A consistent An increase in the [unemployment rate](../u/unemployment_rate.md) is a powerful [indicator](../i/indicator.md) of an economic downturn. During a recession, many businesses reduce their workforce to cut costs, resulting in higher [unemployment](../u/unemployment.md) rates. ### Consumer Confidence Index (CCI) -The Consumer Confidence [Index](../i/index.md) measures the overall confidence of consumers in the economic environment. A low CCI indicates that consumers are pessimistic about their financial prospects, leading to decreased spending. +The Consumer Confidence [Index](../i/index_instrument.md) measures the overall confidence of consumers in the economic environment. A low CCI indicates that consumers are pessimistic about their financial prospects, leading to decreased spending. ### Industrial Production Industrial production indexes track the output of the [manufacturing](../m/manufacturing.md), [mining](../m/mining.md), and utilities sectors. A sustained decline in industrial production is a key [indicator](../i/indicator.md) of economic weakness. diff --git a/en/pedia/r/recession_indicators.md b/en/pedia/r/recession_indicators.md index ab1a56ac..9cd63726 100644 --- a/en/pedia/r/recession_indicators.md +++ b/en/pedia/r/recession_indicators.md @@ -22,7 +22,7 @@ The [unemployment rate](../u/unemployment_rate.md) is the percentage of the labo ### 3. Manufacturing Index (PMI) -The Purchasing Managers' [Index](../i/index.md) (PMI) is an [indicator](../i/indicator.md) of the economic health of the [manufacturing](../m/manufacturing.md) sector. It is based on surveys of [private sector](../p/private_sector.md) companies, covering metrics such as new orders, [inventory](../i/inventory.md) levels, production, [supply](../s/supply.md) deliveries, and employment. +The Purchasing Managers' [Index](../i/index_instrument.md) (PMI) is an [indicator](../i/indicator.md) of the economic health of the [manufacturing](../m/manufacturing.md) sector. It is based on surveys of [private sector](../p/private_sector.md) companies, covering metrics such as new orders, [inventory](../i/inventory.md) levels, production, [supply](../s/supply.md) deliveries, and employment. - **Significance**: A PMI below 50 generally indicates contraction in the [manufacturing](../m/manufacturing.md) sector, which can signal a broader economic downturn. - **Measurement**: PMI is reported monthly by institutions like the Institute for [Supply](../s/supply.md) Management (ISM) in the United States and IHS Markit for global data. @@ -30,7 +30,7 @@ The Purchasing Managers' [Index](../i/index.md) (PMI) is an [indicator](../i/ind ### 4. Consumer Confidence Index (CCI) -The Consumer Confidence [Index](../i/index.md) (CCI) measures the degree of optimism that consumers feel about the overall state of the [economy](../e/economy.md) and their personal financial situation. A drop in consumer confidence can lead to reduced spending, which in turn can signal an impending [recession](../r/recession.md). +The Consumer Confidence [Index](../i/index_instrument.md) (CCI) measures the degree of optimism that consumers feel about the overall state of the [economy](../e/economy.md) and their personal financial situation. A drop in consumer confidence can lead to reduced spending, which in turn can signal an impending [recession](../r/recession.md). - **Significance**: Since consumer spending drives a substantial portion of economic activity, reduced confidence can dramatically slow [economic growth](../e/economic_growth.md). - **Measurement**: The Conference Board in the United States regularly publishes the CCI, derived from surveys of households. diff --git a/en/pedia/r/regulated_investment_company_(ric).md b/en/pedia/r/regulated_investment_company_(ric).md index 3dffe815..bfdc82f3 100644 --- a/en/pedia/r/regulated_investment_company_(ric).md +++ b/en/pedia/r/regulated_investment_company_(ric).md @@ -30,7 +30,7 @@ RICs enjoy a unique tax advantage known as "pass-through" [taxation](../t/taxati ## Detailed Example: Vanguard 500 Index Fund (VFINX) -The Vanguard 500 [Index Fund](../i/index_fund.md) is a [mutual fund](../m/mutual_fund.md) that seeks to track the performance of the S&P 500 [Index](../i/index.md). It is structured as an RIC, adhering to the rules of Subchapter M to avoid [double taxation](../d/double_taxation.md). Here’s a closer look at how it operates under the RIC framework: +The Vanguard 500 [Index Fund](../i/index_fund.md) is a [mutual fund](../m/mutual_fund.md) that seeks to track the performance of the S&P 500 [Index](../i/index_instrument.md). It is structured as an RIC, adhering to the rules of Subchapter M to avoid [double taxation](../d/double_taxation.md). Here’s a closer look at how it operates under the RIC framework: 1. **Investment [Diversification](../d/diversification.md)**: VFINX invests in a diversified portfolio that includes [stocks](../s/stock.md) from all sectors represented in the S&P 500. This aligns with the [diversification](../d/diversification.md) requirement, ensuring that no single investment constitutes more than 5% of the [fund](../f/fund.md)’s assets. 2. **[Income](../i/income.md) [Distribution](../d/distribution.md)**: The [fund](../f/fund.md) annually distributes [dividend](../d/dividend.md) [income](../i/income.md) and any [capital](../c/capital.md) gains to its shareholders. Under RIC regulation, at least 90% of this [income](../i/income.md) must be distributed to maintain tax-exempt status at the corporate level. diff --git a/en/pedia/r/reinsurance_ceded.md b/en/pedia/r/reinsurance_ceded.md index e2df579c..9013ff12 100644 --- a/en/pedia/r/reinsurance_ceded.md +++ b/en/pedia/r/reinsurance_ceded.md @@ -93,7 +93,7 @@ The [reinsurance](../r/reinsurance.md) [market](../m/market.md) has witnessed in ### Parametric Insurance and Index-Based Reinsurance -Parametric [insurance](../i/insurance.md) and [index](../i/index.md)-based [reinsurance](../r/reinsurance.md) products, which pay out on the occurrence of specific events based on predefined parameters (e.g., earthquake intensity or hurricane wind speed), are gaining traction. These products provide faster claims settlement and eliminate the need for loss adjustment processes. +Parametric [insurance](../i/insurance.md) and [index](../i/index_instrument.md)-based [reinsurance](../r/reinsurance.md) products, which pay out on the occurrence of specific events based on predefined parameters (e.g., earthquake intensity or hurricane wind speed), are gaining traction. These products provide faster claims settlement and eliminate the need for loss adjustment processes. ### Technology and Data Analytics diff --git a/en/pedia/r/relative_performance_analysis.md b/en/pedia/r/relative_performance_analysis.md index 9f2014d7..7af7ed33 100644 --- a/en/pedia/r/relative_performance_analysis.md +++ b/en/pedia/r/relative_performance_analysis.md @@ -41,14 +41,14 @@ RPA also plays a crucial role in investment research. Analysts use relative [per ## Case Studies and Examples ### Case Study 1: Hedge Fund Performance -A [hedge fund manager](../h/hedge_fund_manager.md) compares the [fund](../f/fund.md)'s performance against the S&P 500 [index](../i/index.md) over a five-year period. Through RPA, they discover that: -- The [fund](../f/fund.md) has consistently outperformed the [index](../i/index.md) in terms of [total return](../t/total_return.md). +A [hedge fund manager](../h/hedge_fund_manager.md) compares the [fund](../f/fund.md)'s performance against the S&P 500 [index](../i/index_instrument.md) over a five-year period. Through RPA, they discover that: +- The [fund](../f/fund.md) has consistently outperformed the [index](../i/index_instrument.md) in terms of [total return](../t/total_return.md). - [Alpha generation](../a/alpha_generation.md) has been positive, attributed mainly to superior stock selection strategies. - [Risk](../r/risk.md)-adjusted metrics like [Sharpe Ratio](../s/sharpe_ratio.md) also favor the [fund](../f/fund.md), suggesting effective [risk management](../r/risk_management.md). ### Case Study 2: Algorithmic Trading Strategy A team of quant traders develops a [momentum](../m/momentum.md)-based trading algorithm aimed at exploiting short-term price movements. Utilizing RPA, they compare the algorithm’s returns with a [market index](../m/market_index.md): -- Initial [backtesting](../b/backtesting.md) shows the algorithm outperforming the [benchmark](../b/benchmark.md) [index](../i/index.md) by 15% annually. +- Initial [backtesting](../b/backtesting.md) shows the algorithm outperforming the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) by 15% annually. - Further [simulation](../s/simulation_in_trading.md) reveals higher relative performance during periods of high [market](../m/market.md) [volatility](../v/volatility.md). - Adjustments to the algorithm based on RPA findings result in improved consistency and reduced drawdowns. diff --git a/en/pedia/r/relative_performance_indicators.md b/en/pedia/r/relative_performance_indicators.md index 280b7ff1..b0f5bfca 100644 --- a/en/pedia/r/relative_performance_indicators.md +++ b/en/pedia/r/relative_performance_indicators.md @@ -4,7 +4,7 @@ Relative [performance indicators](../p/performance_indicators.md) (RPIs) are ess ## Importance of RPIs -1. **Benchmarking**: RPIs allow traders to measure the performance of their [trading algorithms](../t/trading_algorithms.md) against a set standard or [index](../i/index.md). This helps in understanding how well or poorly the strategies are performing relative to the [market](../m/market.md). +1. **Benchmarking**: RPIs allow traders to measure the performance of their [trading algorithms](../t/trading_algorithms.md) against a set standard or [index](../i/index_instrument.md). This helps in understanding how well or poorly the strategies are performing relative to the [market](../m/market.md). 2. **[Risk Management](../r/risk_management.md)**: By comparing against benchmarks, traders can assess the [risk](../r/risk.md)-adjusted returns of their strategies, which is crucial for managing and mitigating risks. @@ -16,7 +16,7 @@ Relative [performance indicators](../p/performance_indicators.md) (RPIs) are ess ### 1. **Alpha** -[Alpha](../a/alpha.md) represents the [excess return](../e/excess_return.md) of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index.md). It is a measure of an investment's performance on a [risk](../r/risk.md)-adjusted [basis](../b/basis.md). +[Alpha](../a/alpha.md) represents the [excess return](../e/excess_return.md) of an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). It is a measure of an investment's performance on a [risk](../r/risk.md)-adjusted [basis](../b/basis.md). - Formula: α = Rp - (Rf + β * (Rm - Rf)) - Rp = [Return](../r/return.md) of the portfolio - Rf = [Risk](../r/risk.md)-free rate @@ -56,7 +56,7 @@ The [Treynor Ratio](../t/treynor_ratio.md) measures returns earned in excess of ### 6. **Information Ratio** -The [Information Ratio](../i/information_ratio.md) measures portfolio returns above the returns of a [benchmark](../b/benchmark.md), usually an [index](../i/index.md), and adjusts this [excess return](../e/excess_return.md) by the [volatility](../v/volatility.md) of those returns. +The [Information Ratio](../i/information_ratio.md) measures portfolio returns above the returns of a [benchmark](../b/benchmark.md), usually an [index](../i/index_instrument.md), and adjusts this [excess return](../e/excess_return.md) by the [volatility](../v/volatility.md) of those returns. - Formula: IR = (Rp - Rb) / σα - Rp = [Return](../r/return.md) of the portfolio - Rb = [Return](../r/return.md) of the [benchmark](../b/benchmark.md) @@ -73,7 +73,7 @@ The [Information Ratio](../i/information_ratio.md) measures portfolio returns ab ### 8. **Tracking Error** -[Tracking Error](../t/tracking_error.md) measures how closely a portfolio follows the [index](../i/index.md) to which it is benchmarked. It is the [standard deviation](../s/standard_deviation.md) of the difference between the portfolio [return](../r/return.md) and the [benchmark](../b/benchmark.md) [return](../r/return.md). +[Tracking Error](../t/tracking_error.md) measures how closely a portfolio follows the [index](../i/index_instrument.md) to which it is benchmarked. It is the [standard deviation](../s/standard_deviation.md) of the difference between the portfolio [return](../r/return.md) and the [benchmark](../b/benchmark.md) [return](../r/return.md). - Formula: TE = σ(Rp - Rb) - Rp = [Return](../r/return.md) of the portfolio - Rb = [Return](../r/return.md) of the [benchmark](../b/benchmark.md) diff --git a/en/pedia/r/relative_performance_metrics.md b/en/pedia/r/relative_performance_metrics.md index 2b10d929..6d5f971c 100644 --- a/en/pedia/r/relative_performance_metrics.md +++ b/en/pedia/r/relative_performance_metrics.md @@ -3,7 +3,7 @@ In the realm of [algorithmic trading](../a/algorithmic_trading.md), evaluating the performance of [trading algorithms](../t/trading_algorithms.md) is crucial. Relative [performance metrics](../p/performance_metrics.md) are a set of measures designed to assess how well a [trading strategy](../t/trading_strategy.md) performs compared to a [benchmark](../b/benchmark.md) or other strategies. These metrics are particularly useful for [fund](../f/fund.md) managers, individual investors, and traders to ensure that their [trading models](../t/trading_models.md) generate maximum returns while managing [risk](../r/risk.md) effectively. Below are some of the most widely used relative [performance metrics](../p/performance_metrics.md) in [algorithmic trading](../a/algorithmic_trading.md), their calculation methodologies, and their implications. #### 1. **Alpha** -[Alpha](../a/alpha.md) measures the excess returns of a strategy relative to the returns of a [benchmark](../b/benchmark.md) [index](../i/index.md). It shows how much better or worse a [trading strategy](../t/trading_strategy.md) has performed compared to a standard [index](../i/index.md). +[Alpha](../a/alpha.md) measures the excess returns of a strategy relative to the returns of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). It shows how much better or worse a [trading strategy](../t/trading_strategy.md) has performed compared to a standard [index](../i/index_instrument.md). **Formula:** \[ \[alpha](../a/alpha.md) = R_a - (R_f + \[beta](../b/beta.md) (R_m - R_f)) \] @@ -68,7 +68,7 @@ Where: A higher [Treynor Ratio](../t/treynor_ratio.md) indicates a more favorable [risk-adjusted return](../r/risk-adjusted_return.md) given the [market risk](../m/market_risk.md) taken on. #### 6. **Information Ratio** -The [Information Ratio](../i/information_ratio.md) compares the returns of a strategy to its [benchmark](../b/benchmark.md) [index](../i/index.md) by considering the relative performance per unit of [tracking error](../t/tracking_error.md). +The [Information Ratio](../i/information_ratio.md) compares the returns of a strategy to its [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) by considering the relative performance per unit of [tracking error](../t/tracking_error.md). **Formula:** \[ \text{[Information Ratio](../i/information_ratio.md)} = \frac{R_a - R_b}{\sigma_{a-b}} \] diff --git a/en/pedia/r/relative_strength.md b/en/pedia/r/relative_strength.md index 7a60c5ba..9482a742 100644 --- a/en/pedia/r/relative_strength.md +++ b/en/pedia/r/relative_strength.md @@ -12,7 +12,7 @@ In this formula: - **Price of [Asset](../a/asset.md):** The current price of the [asset](../a/asset.md) you are analyzing. - **[Benchmark](../b/benchmark.md) Price:** The current price of the [benchmark](../b/benchmark.md) or another [asset](../a/asset.md) against which you are measuring the performance. -For instance, if you want to measure the relative strength of a stock compared to a [market index](../m/market_index.md) like the S&P 500, you would divide the stock's price by the [index](../i/index.md)'s price. This ratio provides a clear comparison of the [asset](../a/asset.md)'s performance relative to the [benchmark](../b/benchmark.md). +For instance, if you want to measure the relative strength of a stock compared to a [market index](../m/market_index.md) like the S&P 500, you would divide the stock's price by the [index](../i/index_instrument.md)'s price. This ratio provides a clear comparison of the [asset](../a/asset.md)'s performance relative to the [benchmark](../b/benchmark.md). ## Applications in Trading @@ -39,7 +39,7 @@ Relative Strength can also guide [sector rotation strategies](../s/sector_rotati ### Relative Strength Index (RSI) -Not to be confused with Relative Strength, the Relative Strength [Index](../i/index.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. The RSI is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in an [asset](../a/asset.md). Calculated based on the average of upward and downward price changes, RSI is bounded between 0 and 100: +Not to be confused with Relative Strength, the Relative Strength [Index](../i/index_instrument.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. The RSI is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in an [asset](../a/asset.md). Calculated based on the average of upward and downward price changes, RSI is bounded between 0 and 100: - **[Overbought](../o/overbought.md):** RSI above 70 typically indicates [overbought](../o/overbought.md) conditions. - **[Oversold](../o/oversold.md):** RSI below 30 often suggests [oversold](../o/oversold.md) conditions. diff --git a/en/pedia/r/relative_strength_analysis.md b/en/pedia/r/relative_strength_analysis.md index 351077f6..8758f3a0 100644 --- a/en/pedia/r/relative_strength_analysis.md +++ b/en/pedia/r/relative_strength_analysis.md @@ -6,7 +6,7 @@ RSA can be divided into two primary types: -1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: A [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. +1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: A [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. 2. **Relative Comparative Strength (RCS)**: This compares the performance of one [asset](../a/asset.md) against a group of similar assets. ### Relative Strength Index (RSI) @@ -27,7 +27,7 @@ The RSI [value](../v/value.md) ranges from 0 to 100. Generally, an [asset](../a/ ### Relative Comparative Strength (RCS) -RCS, on the other hand, compares the price performance of an individual stock against the price performance of another stock or [benchmark](../b/benchmark.md) [index](../i/index.md). It is formulated by dividing the price performance of the stock by the performance of the [benchmark](../b/benchmark.md). The formula for RCS is: +RCS, on the other hand, compares the price performance of an individual stock against the price performance of another stock or [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). It is formulated by dividing the price performance of the stock by the performance of the [benchmark](../b/benchmark.md). The formula for RCS is: \[ RCS = \frac{Price\ of\ Stock}{Price\ of\ [Benchmark](../b/benchmark.md)} \] diff --git a/en/pedia/r/relative_strength_index_(rsi).md b/en/pedia/r/relative_strength_index_(rsi).md index f11052ac..927d102d 100644 --- a/en/pedia/r/relative_strength_index_(rsi).md +++ b/en/pedia/r/relative_strength_index_(rsi).md @@ -1,6 +1,6 @@ # Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is one of the most widely used [momentum oscillators](../m/momentum_oscillators.md) in [technical analysis](../t/technical_analysis.md). It was developed by J. Welles Wilder Jr. and introduced in his seminal book "New Concepts in Technical [Trading Systems](../t/trading_systems.md)" published in 1978. The RSI measures the speed and change of price movements and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is one of the most widely used [momentum oscillators](../m/momentum_oscillators.md) in [technical analysis](../t/technical_analysis.md). It was developed by J. Welles Wilder Jr. and introduced in his seminal book "New Concepts in Technical [Trading Systems](../t/trading_systems.md)" published in 1978. The RSI measures the speed and change of price movements and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). ## Calculation of RSI @@ -108,7 +108,7 @@ While RSI is a powerful tool, it is not without limitations: ## Conclusion -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) remains an essential tool in the arsenal of both novice and experienced traders. By measuring the [momentum](../m/momentum.md) of price movements, it offers valuable insights into potential [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, [trend](../t/trend.md) reversals, and [market](../m/market.md) divergences. However, it is crucial to combine RSI with other [technical indicators](../t/technical_indicators.md) and [robust](../r/robust.md) [risk management](../r/risk_management.md) strategies to maximize its effectiveness and minimize potential drawbacks. +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) remains an essential tool in the arsenal of both novice and experienced traders. By measuring the [momentum](../m/momentum.md) of price movements, it offers valuable insights into potential [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, [trend](../t/trend.md) reversals, and [market](../m/market.md) divergences. However, it is crucial to combine RSI with other [technical indicators](../t/technical_indicators.md) and [robust](../r/robust.md) [risk management](../r/risk_management.md) strategies to maximize its effectiveness and minimize potential drawbacks. For further detailed analysis and application, many trading education resources and platforms provide comprehensive tutorials and examples of using RSI in real-world trading scenarios: diff --git a/en/pedia/r/relative_strength_ranking.md b/en/pedia/r/relative_strength_ranking.md index cffb5901..16836860 100644 --- a/en/pedia/r/relative_strength_ranking.md +++ b/en/pedia/r/relative_strength_ranking.md @@ -8,7 +8,7 @@ The calculation of [Relative Strength](../r/relative_strength.md) Ranking can be 1. **Selecting the Time Frame:** The first step is to decide on the time frame over which the [relative strength](../r/relative_strength.md) [will](../w/will.md) be evaluated. Common time frames include 3 months, 6 months, 12 months, and 52 weeks. -2. **Calculating [Relative Strength](../r/relative_strength.md):** For each stock, the [relative strength](../r/relative_strength.md) (RS) is calculated by dividing the stock's performance over the chosen time frame by the performance of a [benchmark](../b/benchmark.md) [index](../i/index.md) (like the S&P 500). Mathematically, this can be represented as: +2. **Calculating [Relative Strength](../r/relative_strength.md):** For each stock, the [relative strength](../r/relative_strength.md) (RS) is calculated by dividing the stock's performance over the chosen time frame by the performance of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) (like the S&P 500). Mathematically, this can be represented as: \[ \text{RS} = \frac{\text{Stock's Price Change}}{\text{[Benchmark](../b/benchmark.md)'s Price Change}} @@ -73,8 +73,8 @@ def calculate_relative_strength(prices, [benchmark](../b/benchmark.md)): Calculate the [relative strength](../r/relative_strength.md) of [stocks](../s/stock.md) against a [benchmark](../b/benchmark.md). Parameters: - prices (pd.DataFrame): DataFrame containing stock prices with [stocks](../s/stock.md) as columns and dates as [index](../i/index.md). - [benchmark](../b/benchmark.md) (pd.Series): Series containing [benchmark](../b/benchmark.md) [index](../i/index.md) prices. + prices (pd.DataFrame): DataFrame containing stock prices with [stocks](../s/stock.md) as columns and dates as [index](../i/index_instrument.md). + [benchmark](../b/benchmark.md) (pd.Series): Series containing [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) prices. Returns: pd.Series: Series containing the [relative strength](../r/relative_strength.md) of each stock. @@ -114,7 +114,7 @@ ranked_stocks = rs_rank.sort_values() print(ranked_stocks) ``` -In the above example, we [load](../l/load.md) stock prices and [benchmark](../b/benchmark.md) [index](../i/index.md) prices from CSV files, calculate the [relative strength](../r/relative_strength.md) over the previous 12 months, and then rank the [stocks](../s/stock.md) based on their [relative strength](../r/relative_strength.md). This script serves as a foundation for more sophisticated RSR-based [trading algorithms](../t/trading_algorithms.md). +In the above example, we [load](../l/load.md) stock prices and [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) prices from CSV files, calculate the [relative strength](../r/relative_strength.md) over the previous 12 months, and then rank the [stocks](../s/stock.md) based on their [relative strength](../r/relative_strength.md). This script serves as a foundation for more sophisticated RSR-based [trading algorithms](../t/trading_algorithms.md). ## Real-World Examples diff --git a/en/pedia/r/relative_value.md b/en/pedia/r/relative_value.md index e7b02dda..0ff4a22d 100644 --- a/en/pedia/r/relative_value.md +++ b/en/pedia/r/relative_value.md @@ -52,7 +52,7 @@ Data analysis is critical in implementing relative [value](../v/value.md) strate ### Equity Markets -In [equity](../e/equity.md) markets, relative [value](../v/value.md) strategies can involve [pairs trading](../p/pairs_trading.md), sector [arbitrage](../a/arbitrage.md), and [dispersion](../d/dispersion.md) trading. [Pairs trading](../p/pairs_trading.md), as mentioned earlier, involves taking long and short positions in two correlated [stocks](../s/stock.md). Sector [arbitrage](../a/arbitrage.md) focuses on exploiting price discrepancies within a sector, while [dispersion](../d/dispersion.md) trading involves taking positions based on the differences in [volatility](../v/volatility.md) among [stocks](../s/stock.md) in an [index](../i/index.md). +In [equity](../e/equity.md) markets, relative [value](../v/value.md) strategies can involve [pairs trading](../p/pairs_trading.md), sector [arbitrage](../a/arbitrage.md), and [dispersion](../d/dispersion.md) trading. [Pairs trading](../p/pairs_trading.md), as mentioned earlier, involves taking long and short positions in two correlated [stocks](../s/stock.md). Sector [arbitrage](../a/arbitrage.md) focuses on exploiting price discrepancies within a sector, while [dispersion](../d/dispersion.md) trading involves taking positions based on the differences in [volatility](../v/volatility.md) among [stocks](../s/stock.md) in an [index](../i/index_instrument.md). ### Fixed Income diff --git a/en/pedia/r/relative_vigor_index_(rvi).md b/en/pedia/r/relative_vigor_index_(rvi).md index 5279bfc7..59676614 100644 --- a/en/pedia/r/relative_vigor_index_(rvi).md +++ b/en/pedia/r/relative_vigor_index_(rvi).md @@ -1,10 +1,10 @@ # Relative Vigor Index (RVI) -The Relative Vigor [Index](../i/index.md) (RVI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the conviction of a recent price move and the likelihood that it [will](../w/will.md) continue. The RVI is predicated on the premise that prices tend to close higher during an [uptrend](../u/uptrend.md) and lower during a [downtrend](../d/downtrend.md). Similar in construction to the [Stochastic Oscillator](../s/stochastic_oscillator.md) and [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), the RVI is a more complex calculation that emphasizes "vigor" or enthusiasm and uses a smoothed normalized method. By comparing the closing price of a [security](../s/security.md) to its trading [range](../r/range.md), it offers insights into the [underlying](../u/underlying.md) strength or weakness of a [trend](../t/trend.md). +The Relative Vigor [Index](../i/index_instrument.md) (RVI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the conviction of a recent price move and the likelihood that it [will](../w/will.md) continue. The RVI is predicated on the premise that prices tend to close higher during an [uptrend](../u/uptrend.md) and lower during a [downtrend](../d/downtrend.md). Similar in construction to the [Stochastic Oscillator](../s/stochastic_oscillator.md) and [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), the RVI is a more complex calculation that emphasizes "vigor" or enthusiasm and uses a smoothed normalized method. By comparing the closing price of a [security](../s/security.md) to its trading [range](../r/range.md), it offers insights into the [underlying](../u/underlying.md) strength or weakness of a [trend](../t/trend.md). ## Calculation -The Relative Vigor [Index](../i/index.md) primarily uses the closing price relative to the [open](../o/open.md), high, and low prices of each period to calculate the [value](../v/value.md). The exact formula for RVI involves [multiple](../m/multiple.md) steps: +The Relative Vigor [Index](../i/index_instrument.md) primarily uses the closing price relative to the [open](../o/open.md), high, and low prices of each period to calculate the [value](../v/value.md). The exact formula for RVI involves [multiple](../m/multiple.md) steps: 1. **Calculate the Close-[Open](../o/open.md) Differences:** \( RVI\_numerator = (Close - [Open](../o/open.md)) \) @@ -29,7 +29,7 @@ The RVI oscillates around a zero line and typically ranges between -1 and +1. Th ## Interpretation -The main interpretation principle of the Relative Vigor [Index](../i/index.md) is to look for crossovers between the RVI line and the signal line: +The main interpretation principle of the Relative Vigor [Index](../i/index_instrument.md) is to look for crossovers between the RVI line and the signal line: - **Bullish Signal:** An RVI cross above the signal line can indicate a buy signal, suggesting the potential for an upward [trend](../t/trend.md). - **Bearish Signal:** Conversely, an RVI cross below the signal line can signal selling opportunities, hinting at potential downward movement. @@ -39,7 +39,7 @@ Additionally, when the RVI crosses above zero, it implies bullish [momentum](../ ## Practical Uses 1. **[Trend](../t/trend.md) Confirmation:** - Traders often use the Relative Vigor [Index](../i/index.md) to confirm the direction of the [market](../m/market.md) [trend](../t/trend.md). When the RVI aligns with the price [trend](../t/trend.md), it adds credence to the ongoing [market](../m/market.md) movement. + Traders often use the Relative Vigor [Index](../i/index_instrument.md) to confirm the direction of the [market](../m/market.md) [trend](../t/trend.md). When the RVI aligns with the price [trend](../t/trend.md), it adds credence to the ongoing [market](../m/market.md) movement. 2. **[Divergence](../d/divergence.md) Analysis:** [Divergence](../d/divergence.md) occurs when the price moves in one direction while the RVI moves in another. [Bullish divergence](../b/bullish_divergence.md) happens when prices make lower lows, but the RVI makes higher lows. Conversely, [bearish divergence](../b/bearish_divergence.md) occurs when prices make higher highs, but the RVI makes lower highs. @@ -48,7 +48,7 @@ Additionally, when the RVI crosses above zero, it implies bullish [momentum](../ The RVI can help pinpoint optimal entry and exit points by signaling potential shifts in [market](../m/market.md) direction based on the crossings above or below the zero line and signal line. 4. **Filter for Other Indicators:** - The Relative Vigor [Index](../i/index.md) can be used alongside other [technical analysis](../t/technical_analysis.md) indicators to filter out [false signals](../f/false_signals_in_trading.md) and enhance trading accuracy. + The Relative Vigor [Index](../i/index_instrument.md) can be used alongside other [technical analysis](../t/technical_analysis.md) indicators to filter out [false signals](../f/false_signals_in_trading.md) and enhance trading accuracy. ## Limitations @@ -97,10 +97,10 @@ print(rvi_df.tail()) ## Application in Algorithmic Trading -In [algorithmic trading](../a/accountability.md), the implementation of the Relative Vigor [Index](../i/index.md) can be automated to create [trading strategies](../t/trading_strategies.md) and signals. For instance, using `Zipline`, a Pythonic [algorithmic trading](../a/accountability.md) library, you could create a strategy that buys or sells assets based on RVI signals. +In [algorithmic trading](../a/accountability.md), the implementation of the Relative Vigor [Index](../i/index_instrument.md) can be automated to create [trading strategies](../t/trading_strategies.md) and signals. For instance, using `Zipline`, a Pythonic [algorithmic trading](../a/accountability.md) library, you could create a strategy that buys or sells assets based on RVI signals. Given the complex nature of RVI, its integration within an [algorithmic trading](../a/accountability.md) strategy often includes [backtesting](../b/backtesting.md) to validate its efficacy under different [market](../m/market.md) conditions. This can help in adjusting the parameters for optimal performance. ## Conclusion -The Relative Vigor [Index](../i/index.md) (RVI) is a valuable addition to the toolkit of both manual and algorithmic traders. By emphasizing the closing price relative to the trading [range](../r/range.md), it provides unique insights into [market](../m/market.md) [momentum](../m/momentum.md) and potential future price movements. However, as with all [technical indicators](../t/technical_indicator.md), it's crucial to use RVI in conjunction with other tools and analyses to enhance decision-making accuracy. \ No newline at end of file +The Relative Vigor [Index](../i/index_instrument.md) (RVI) is a valuable addition to the toolkit of both manual and algorithmic traders. By emphasizing the closing price relative to the trading [range](../r/range.md), it provides unique insights into [market](../m/market.md) [momentum](../m/momentum.md) and potential future price movements. However, as with all [technical indicators](../t/technical_indicator.md), it's crucial to use RVI in conjunction with other tools and analyses to enhance decision-making accuracy. \ No newline at end of file diff --git a/en/pedia/r/relief_rally.md b/en/pedia/r/relief_rally.md index ceeb5976..a1d385ff 100644 --- a/en/pedia/r/relief_rally.md +++ b/en/pedia/r/relief_rally.md @@ -10,7 +10,7 @@ A "relief [rally](../r/rally.md)" is a term used in the [financial markets](../f 3. **Low [Volume](../v/volume.md)**: Often accompanied by low trading volumes compared to a sustained [market](../m/market.md) [uptrend](../u/uptrend.md), indicating that not all [market](../m/market.md) participants are convinced of a lasting recovery. -4. **[Technical Indicators](../t/technical_indicator.md)**: [Technical analysis](../t/technical_analysis.md) can play a significant role in identifying relief rallies. Traders often look at [oversold](../o/oversold.md) conditions indicated by metrics like RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)) or [support levels](../s/support_levels.md) to gauge potential relief [rally](../r/rally.md) points. +4. **[Technical Indicators](../t/technical_indicator.md)**: [Technical analysis](../t/technical_analysis.md) can play a significant role in identifying relief rallies. Traders often look at [oversold](../o/oversold.md) conditions indicated by metrics like RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)) or [support levels](../s/support_levels.md) to gauge potential relief [rally](../r/rally.md) points. ## Causes of a Relief Rally @@ -34,7 +34,7 @@ A "relief [rally](../r/rally.md)" is a term used in the [financial markets](../f ### Technical Analysis -- **RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md))**: An RSI below 30 is typically considered [oversold](../o/oversold.md), which might indicate a potential for a relief [rally](../r/rally.md). +- **RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md))**: An RSI below 30 is typically considered [oversold](../o/oversold.md), which might indicate a potential for a relief [rally](../r/rally.md). - **[Support and Resistance](../s/support_and_resistance.md) Levels**: Identifying these levels can help traders predict points at which a relief [rally](../r/rally.md) might occur. - **[Volume Analysis](../v/volume_analysis.md)**: Low [volume](../v/volume.md) rallies may indicate a lack of strong conviction behind the price movement, signaling that it might be a temporary relief [rally](../r/rally.md) rather than a sustained [uptrend](../u/uptrend.md). diff --git a/en/pedia/r/rent_control.md b/en/pedia/r/rent_control.md index af196d51..79fc4de6 100644 --- a/en/pedia/r/rent_control.md +++ b/en/pedia/r/rent_control.md @@ -10,7 +10,7 @@ Rent control can be broadly classified into two primary types: - This involves strict regulations that limit the rent amount at all times. An example could be a cap on rent increases or setting a maximum price that can never be exceeded. 2. **Soft Rent Control**: - - These systems are more flexible, allowing for periodic rent increases but typically capping the amount by which rents can be raised annually. Often, these caps are tied to [inflation](../i/inflation.md) measures such as the Consumer Price [Index](../i/index.md) (CPI). + - These systems are more flexible, allowing for periodic rent increases but typically capping the amount by which rents can be raised annually. Often, these caps are tied to [inflation](../i/inflation.md) measures such as the Consumer Price [Index](../i/index_instrument.md) (CPI). ### Vacancy Decontrol diff --git a/en/pedia/r/representative_sample.md b/en/pedia/r/representative_sample.md index 30c52829..6e08b1cf 100644 --- a/en/pedia/r/representative_sample.md +++ b/en/pedia/r/representative_sample.md @@ -6,7 +6,7 @@ In the world of [finance](../f/finance.md) and trading, making decisions based o A representative sample is a subset of a population that accurately reflects the members of the entire population. A sample is considered representative if it exhibits the same characteristics and proportions as the population from which it is drawn. This is crucial because any analysis conducted on the sample can be generalized to the population as a whole. -In trading and [finance](../f/finance.md), this means that if you are analyzing the behavior of a particular stock, [index](../i/index.md), or [asset class](../a/asset_class.md), the sample data you use should accurately reflect the behavior of the entire dataset or the real-world [market](../m/market.md) conditions. +In trading and [finance](../f/finance.md), this means that if you are analyzing the behavior of a particular stock, [index](../i/index_instrument.md), or [asset class](../a/asset_class.md), the sample data you use should accurately reflect the behavior of the entire dataset or the real-world [market](../m/market.md) conditions. ## Importance in Trading and Finance diff --git a/en/pedia/r/resampling_techniques_in_trading.md b/en/pedia/r/resampling_techniques_in_trading.md index 926b4262..a244314e 100644 --- a/en/pedia/r/resampling_techniques_in_trading.md +++ b/en/pedia/r/resampling_techniques_in_trading.md @@ -118,7 +118,7 @@ stock_data = pd.DataFrame({'Date': dates, 'Price': prices}) # Function to compute moving average crossover strategy returns def moving_average_crossover(data, short_window, long_window): - signals = pd.DataFrame([index](../i/index.md)=data.[index](../i/index.md)) + signals = pd.DataFrame([index](../i/index_instrument.md)=data.[index](../i/index_instrument.md)) signals['signal'] = 0.0 signals['short_mavg'] = data['Price'].rolling(window=short_window, min_periods=1, center=False).mean() @@ -140,7 +140,7 @@ for train_index, test_index in tscv.split(stock_data): returns = moving_average_crossover(train, short_window=5, long_window=20) test_returns = moving_average_crossover(test, short_window=5, long_window=20) - score = mean_squared_error(test_returns.dropna(), train['Price'].iloc[test_returns.dropna().[index](../i/index.md)]) + score = mean_squared_error(test_returns.dropna(), train['Price'].iloc[test_returns.dropna().[index](../i/index_instrument.md)]) scores.append(score) print(f"Cross-validated scores: {scores}") diff --git a/en/pedia/r/residual_volatility.md b/en/pedia/r/residual_volatility.md index 74d3f93f..f1134de6 100644 --- a/en/pedia/r/residual_volatility.md +++ b/en/pedia/r/residual_volatility.md @@ -11,7 +11,7 @@ Residual [volatility](../v/volatility.md) is a critical concept within the realm 1. **[Historical Volatility](../h/historical_volatility.md) (HV)**: This measures the past price fluctuations of a [security](../s/security.md) over a specific time frame. It is calculated using [standard deviation](../s/standard_deviation.md) of past returns. 2. **Implied [Volatility](../v/volatility.md) (IV)**: IV represents the [market](../m/market.md)'s forecast of a likely movement in a [security](../s/security.md)'s price, often derived from option prices. 3. **[Realized Volatility](../r/realized_volatility.md) (RV)**: This is the actual [volatility](../v/volatility.md) of a [security](../s/security.md) over a given period, calculated using historical data. -4. **Systematic [Volatility](../v/volatility.md)**: This is the portion of a [security](../s/security.md)'s total [volatility](../v/volatility.md) that is attributable to [market](../m/market.md)-wide factors, captured by the performance of a [benchmark](../b/benchmark.md) [index](../i/index.md). +4. **Systematic [Volatility](../v/volatility.md)**: This is the portion of a [security](../s/security.md)'s total [volatility](../v/volatility.md) that is attributable to [market](../m/market.md)-wide factors, captured by the performance of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). 5. **Idiosyncratic [Volatility](../v/volatility.md)**: This is the portion of a [security](../s/security.md)'s total [volatility](../v/volatility.md) that is unexplained by [market](../m/market.md)-wide factors and is unique to the individual [security](../s/security.md) itself. ### Defining Residual Volatility diff --git a/en/pedia/r/resistance_(resistance_level).md b/en/pedia/r/resistance_(resistance_level).md index fe81f43d..17b35db1 100644 --- a/en/pedia/r/resistance_(resistance_level).md +++ b/en/pedia/r/resistance_(resistance_level).md @@ -38,7 +38,7 @@ Moving averages, such as the 50-day or [200-day moving average](../1/200-day_mov ## Breakout and Resistance ### Confirming a Breakout -A [breakout](../b/breakout.md) occurs when the price moves above a resistance level, often accompanied by increased [volume](../v/volume.md). To confirm a [breakout](../b/breakout.md), traders look for sustained movement above the resistance level and may also use [technical indicators](../t/technical_indicator.md) such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD). +A [breakout](../b/breakout.md) occurs when the price moves above a resistance level, often accompanied by increased [volume](../v/volume.md). To confirm a [breakout](../b/breakout.md), traders look for sustained movement above the resistance level and may also use [technical indicators](../t/technical_indicator.md) such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD). ### False Breakouts False breakouts happen when the price briefly moves above a resistance level but then falls back below it. These can trap traders who acted on the [breakout](../b/breakout.md) signal, leading to potential losses. It's important to use other indicators or wait for [multiple](../m/multiple.md) confirmations before acting on a [breakout](../b/breakout.md). diff --git a/en/pedia/r/retail_investor.md b/en/pedia/r/retail_investor.md index a4d9e31e..6a7c2782 100644 --- a/en/pedia/r/retail_investor.md +++ b/en/pedia/r/retail_investor.md @@ -9,7 +9,7 @@ Retail investors exhibit a [range](../r/range.md) of characteristics that distin 1. **Small [Capital](../c/capital.md) Base**: Retail investors generally have smaller amounts of [capital](../c/capital.md) to invest compared to institutional investors. 2. **Individual Financial Goals**: Investments are often aligned with personal objectives, such as saving for retirement, education expenses, or major purchases. 3. **[Market](../m/market.md) Access**: Retail investors access [financial markets](../f/financial_market.md) through brokerage accounts, including online platforms that [offer](../o/offer.md) varying degrees of service, from [discount](../d/discount.md) brokers to full-service brokers. -4. **Investment Strategies**: Typically utilize simpler investment strategies, often focusing on buy-and-[hold](../h/hold.md) techniques, [index](../i/index.md) funds, or mutual funds. +4. **Investment Strategies**: Typically utilize simpler investment strategies, often focusing on buy-and-[hold](../h/hold.md) techniques, [index](../i/index_instrument.md) funds, or mutual funds. 5. **Information Sources**: Rely on publicly available information, financial news, investment literature, and retail brokerage resources for making investment decisions. ## Advantages and Disadvantages diff --git a/en/pedia/r/retail_price_index_(rpi).md b/en/pedia/r/retail_price_index_(rpi).md index d97e68af..43a59bbc 100644 --- a/en/pedia/r/retail_price_index_(rpi).md +++ b/en/pedia/r/retail_price_index_(rpi).md @@ -1,6 +1,6 @@ # Retail Price Index (RPI) -The Retail Price [Index](../i/index.md) (RPI) is a measure of [inflation](../i/inflation.md) that tracks the change in the cost of a fixed basket of retail goods and services over time. It is used to adjust various [income](../i/income.md) payments (e.g., pensions and salaries) and to measure the changes in the [cost of living](../c/cost_of_living.md). The RPI is a significant [economic indicator](../e/economic_indicator.md) and is utilized in various financial and economic analyses. +The Retail Price [Index](../i/index_instrument.md) (RPI) is a measure of [inflation](../i/inflation.md) that tracks the change in the cost of a fixed basket of retail goods and services over time. It is used to adjust various [income](../i/income.md) payments (e.g., pensions and salaries) and to measure the changes in the [cost of living](../c/cost_of_living.md). The RPI is a significant [economic indicator](../e/economic_indicator.md) and is utilized in various financial and economic analyses. ## Components of the Retail Price Index @@ -16,7 +16,7 @@ The RPI is composed of several components, each representing a different categor - **Communication**: Costs related to postal services, telephone, internet services. - **Miscellaneous Goods and Services**: Includes [insurance](../i/insurance.md), personal care, and other expenses. -Each of these categories is assigned a weight based on their average proportion of a consumer's expenditure, ensuring the [index](../i/index.md) accurately reflects changes in the [cost of living](../c/cost_of_living.md). +Each of these categories is assigned a weight based on their average proportion of a consumer's expenditure, ensuring the [index](../i/index_instrument.md) accurately reflects changes in the [cost of living](../c/cost_of_living.md). ## Calculation Methodology @@ -25,7 +25,7 @@ The RPI is calculated through the following steps: 1. **Collection of Prices**: A large sample of prices for a diverse [range](../r/range.md) of goods and services is collected from different retail outlets. 2. **Basket Composition**: The [basket of goods](../b/basket_of_goods.md) and services remains fixed over the specific period for comparison purposes. 3. **Weight Assignation**: Each item in the basket is assigned a weight based on its relative importance or proportion of total consumer expenditure. -4. **Price [Index](../i/index.md) Calculation**: Using a [base year](../b/base_year.md) for comparison, price indices for each category are calculated. +4. **Price [Index](../i/index_instrument.md) Calculation**: Using a [base year](../b/base_year.md) for comparison, price indices for each category are calculated. 5. **[Aggregation](../a/aggregation.md)**: The price indices are aggregated, taking the assigned weights into account, to produce the overall RPI. The formula for the RPI calculation is as follows: @@ -41,7 +41,7 @@ The RPI has a long history, having been first introduced in the United Kingdom i ## RPI vs. CPI -The RPI is often compared with the Consumer Price [Index](../i/index.md) (CPI), another measure of [inflation](../i/inflation.md). Although both indices aim to track changes in prices over time, they differ in several key aspects: +The RPI is often compared with the Consumer Price [Index](../i/index_instrument.md) (CPI), another measure of [inflation](../i/inflation.md). Although both indices aim to track changes in prices over time, they differ in several key aspects: - **Coverage**: The RPI includes housing costs such as [mortgage](../m/mortgage.md) [interest](../i/interest.md) payments, whereas the CPI does not. - **Population Base**: The RPI covers private households only, while the CPI encompasses all households including institutionalized population and foreign visitors. @@ -70,7 +70,7 @@ In response to these criticisms, several reforms have been suggested, including ## Conclusion -The Retail Price [Index](../i/index.md) (RPI) remains a cornerstone in understanding [inflation](../i/inflation.md) and economic shifts. Despite its drawbacks and criticisms, it continues to be an essential tool for economic analysis, policy-making, and personal [financial planning](../f/financial_planning.md). Continuous updates and methodological improvements ensure that it remains relevant in capturing the changing economic landscape. +The Retail Price [Index](../i/index_instrument.md) (RPI) remains a cornerstone in understanding [inflation](../i/inflation.md) and economic shifts. Despite its drawbacks and criticisms, it continues to be an essential tool for economic analysis, policy-making, and personal [financial planning](../f/financial_planning.md). Continuous updates and methodological improvements ensure that it remains relevant in capturing the changing economic landscape. -For more information on the Retail Price [Index](../i/index.md) or related data, visit the [Office for National Statistics](https://www.ons.gov.uk). +For more information on the Retail Price [Index](../i/index_instrument.md) or related data, visit the [Office for National Statistics](https://www.ons.gov.uk). diff --git a/en/pedia/r/retail_sales.md b/en/pedia/r/retail_sales.md index 9fc24145..baf3f741 100644 --- a/en/pedia/r/retail_sales.md +++ b/en/pedia/r/retail_sales.md @@ -26,7 +26,7 @@ Retail sales encompass a broad [range](../r/range.md) of categories, such as: Each category can provide insights into specific economic sectors and consumer preferences. ## Economic Indicators and Analysis -Retail sales are a key component of [economic indicators](../e/economic_indicators.md) including Gross Domestic Product (GDP), Consumer Confidence [Index](../i/index.md), and the Consumer Price [Index](../i/index.md) (CPI). Analysts and economists use retail sales data in various models to predict economic performance and potential [market](../m/market.md) trends. +Retail sales are a key component of [economic indicators](../e/economic_indicators.md) including Gross Domestic Product (GDP), Consumer Confidence [Index](../i/index_instrument.md), and the Consumer Price [Index](../i/index_instrument.md) (CPI). Analysts and economists use retail sales data in various models to predict economic performance and potential [market](../m/market.md) trends. 1. **GDP Contribution:** Consumer spending, as reflected in retail sales, contributes significantly to GDP. An increase in retail sales generally leads to GDP growth. diff --git a/en/pedia/r/retirement_planning.md b/en/pedia/r/retirement_planning.md index 62a7be44..5facdbd6 100644 --- a/en/pedia/r/retirement_planning.md +++ b/en/pedia/r/retirement_planning.md @@ -80,7 +80,7 @@ Annuities are financial products that provide a stream of [income](../i/income.m - **Fixed Annuities**: Provide guaranteed payments that do not change. - **Variable Annuities**: Payments fluctuate based on the performance of [underlying](../u/underlying.md) investments. -- **Indexed Annuities**: Payments are linked to a specific [index](../i/index.md), such as the S&P 500. +- **Indexed Annuities**: Payments are linked to a specific [index](../i/index_instrument.md), such as the S&P 500. ## Healthcare in Retirement diff --git a/en/pedia/r/return.md b/en/pedia/r/return.md index 6dc03868..5f6205c3 100644 --- a/en/pedia/r/return.md +++ b/en/pedia/r/return.md @@ -12,7 +12,7 @@ Understanding the different types of returns is essential for investors and trad ### Relative Return -Relative return measures the performance of an investment compared to a [benchmark](../b/benchmark.md) or [index](../i/index.md). For example, if an investment returns 10% while a [benchmark](../b/benchmark.md) [index](../i/index.md) returns 8%, the relative return is 2%. This type of return helps investors understand whether their investment outperformed or underperformed the [market](../m/market.md). +Relative return measures the performance of an investment compared to a [benchmark](../b/benchmark.md) or [index](../i/index_instrument.md). For example, if an investment returns 10% while a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) returns 8%, the relative return is 2%. This type of return helps investors understand whether their investment outperformed or underperformed the [market](../m/market.md). ### Annualized Return diff --git a/en/pedia/r/return_analysis_frameworks.md b/en/pedia/r/return_analysis_frameworks.md index 48a2e5b4..a93fe8f7 100644 --- a/en/pedia/r/return_analysis_frameworks.md +++ b/en/pedia/r/return_analysis_frameworks.md @@ -41,8 +41,8 @@ Evaluating returns in isolation can be misleading if risks are not taken into ac Comparing a strategy's performance against relevant benchmarks helps traders understand the relative performance. Common benchmarks include: - **S&P 500 or DJIA** for U.S. [equity](../e/equity.md) portfolios. -- **MSCI World [Index](../i/index.md)** for global [equity](../e/equity.md) portfolios. -- **Barclays Aggregate [Bond](../b/bond.md) [Index](../i/index.md)** for [bond](../b/bond.md) portfolios. +- **MSCI World [Index](../i/index_instrument.md)** for global [equity](../e/equity.md) portfolios. +- **Barclays Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md)** for [bond](../b/bond.md) portfolios. Ensuring that a chosen [benchmark](../b/benchmark.md) accurately represents the [trading strategy](../t/trading_strategy.md)’s [scope](../s/scope.md) and [asset allocation](../a/asset_allocation.md) is crucial. diff --git a/en/pedia/r/return_dispersion_analysis.md b/en/pedia/r/return_dispersion_analysis.md index 0e934cc9..af085af4 100644 --- a/en/pedia/r/return_dispersion_analysis.md +++ b/en/pedia/r/return_dispersion_analysis.md @@ -35,7 +35,7 @@ ### 4. Applications in Algorithmic Trading - **[Risk Management](../r/risk_management.md):** [Algorithmic trading](../a/algorithmic_trading.md) systems use [return](../r/return.md) [dispersion](../d/dispersion.md) to gauge the riskiness of portfolios and adjust positions to maintain desired [risk](../r/risk.md) levels. -- **[Performance Benchmarking](../p/performance_benchmarking.md):** [Dispersion](../d/dispersion.md) analysis helps in benchmarking performance against an [index](../i/index.md) or another portfolio. +- **[Performance Benchmarking](../p/performance_benchmarking.md):** [Dispersion](../d/dispersion.md) analysis helps in benchmarking performance against an [index](../i/index_instrument.md) or another portfolio. - **[Portfolio Optimization](../p/portfolio_optimization.md):** Algorithms can optimize portfolio allocations by minimizing [return](../r/return.md) [dispersion](../d/dispersion.md) to achieve a more stable [return](../r/return.md) profile. ## Practical Example diff --git a/en/pedia/r/return_forecasting_models.md b/en/pedia/r/return_forecasting_models.md index cd9549b6..87fdee19 100644 --- a/en/pedia/r/return_forecasting_models.md +++ b/en/pedia/r/return_forecasting_models.md @@ -49,7 +49,7 @@ Econometric models apply statistical methods to financial and economic data to f - **Moving Averages**: Simple Moving Average (SMA) and Exponential Moving Average (EMA) are fundamental tools in [technical analysis](../t/technical_analysis.md), smoothing price data to identify trends. - **Reference**: [Investopedia: Moving Averages](https://www.investopedia.com/articles/active-trading/052014/how-use-moving-average-buy-stocks.asp) -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: RSI measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in an [asset](../a/asset.md)'s price. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: RSI measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in an [asset](../a/asset.md)'s price. - **Reference**: [RSI, Forbes](https://www.forbes.com/advisor/investing/rsi-indicator/) #### 6. Sentiment Analysis Models diff --git a/en/pedia/r/return_forecasting_techniques.md b/en/pedia/r/return_forecasting_techniques.md index 73db64d2..d5b7d34e 100644 --- a/en/pedia/r/return_forecasting_techniques.md +++ b/en/pedia/r/return_forecasting_techniques.md @@ -44,7 +44,7 @@ - **Moving Averages**: Techniques like Simple Moving Averages (SMA) and Exponential Moving Averages (EMA) are used to smooth out price data to identify trends. - - **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: RSI measures the speed and change of price movements to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. + - **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: RSI measures the speed and change of price movements to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. 7. **Hybrid Models** Hybrid models combine [multiple](../m/multiple.md) [forecasting](../f/forecasting.md) techniques to enhance prediction accuracy. diff --git a/en/pedia/r/revaluation.md b/en/pedia/r/revaluation.md index ba431e0e..c0c0660f 100644 --- a/en/pedia/r/revaluation.md +++ b/en/pedia/r/revaluation.md @@ -33,7 +33,7 @@ This method evaluates how much it would cost to replace the [asset](../a/asset.m Sometimes, assets are unique or require specialized knowledge for [valuation](../v/valuation.md). In such cases, professional appraisers are employed to estimate the current [value](../v/value.md) of the assets. ### Indexation -[Indexation](../i/indexation.md) involves adjusting the [asset](../a/asset.md) [value](../v/value.md) based on a specific [index](../i/index.md), such as an [inflation](../i/inflation.md) [index](../i/index.md). This can be more straightforward and is used primarily when wider [economic conditions](../e/economic_conditions.md), such as [inflation](../i/inflation.md), are the primary [factor](../f/factor.md) for revaluation. +[Indexation](../i/indexation.md) involves adjusting the [asset](../a/asset.md) [value](../v/value.md) based on a specific [index](../i/index_instrument.md), such as an [inflation](../i/inflation.md) [index](../i/index_instrument.md). This can be more straightforward and is used primarily when wider [economic conditions](../e/economic_conditions.md), such as [inflation](../i/inflation.md), are the primary [factor](../f/factor.md) for revaluation. ## Implications of Revaluation diff --git a/en/pedia/r/reversal_indicators.md b/en/pedia/r/reversal_indicators.md index 6edfdc65..81638b8c 100644 --- a/en/pedia/r/reversal_indicators.md +++ b/en/pedia/r/reversal_indicators.md @@ -9,7 +9,7 @@ In the intricate world of trading, particularly [algorithmic trading](../a/algor - The 9-day EMA of the MACD, called the "signal line," is then plotted on top of the MACD line, which can function as a trigger for buy or sell signals. - The MACD is primarily used to spot changes in the strength, direction, [momentum](../m/momentum.md), and [duration](../d/duration.md) of a [trend](../t/trend.md). -2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)** +2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)** - The RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. RSI oscillates between zero and 100. Traditionally, the RSI is considered [overbought](../o/overbought.md) when above 70 and [oversold](../o/oversold.md) when below 30. - The RSI can be used to identify general [market](../m/market.md) conditions as well as potential turning points. This [oscillator](../o/oscillator.md) can show [divergence](../d/divergence.md), [failure swings](../f/failure_swings.md), and centerline crossovers which can signal reversals and provide important [trading signals](../t/trading_signals.md). diff --git a/en/pedia/r/reversal_trading_strategies.md b/en/pedia/r/reversal_trading_strategies.md index 7d876175..3660a81a 100644 --- a/en/pedia/r/reversal_trading_strategies.md +++ b/en/pedia/r/reversal_trading_strategies.md @@ -24,7 +24,7 @@ There are primarily two types of [market](../m/market.md) reversals: [Technical indicators](../t/technical_indicators.md) are essential tools in identifying potential reversals. Some commonly used indicators include: - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD):** This [indicator](../i/indicator.md) helps identify changes in the strength, direction, and [momentum](../m/momentum.md) of a [trend](../t/trend.md). -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** RSI measures the speed and change of price movements and identifies [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** RSI measures the speed and change of price movements and identifies [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **[Bollinger Bands](../b/bollinger_bands.md):** These bands measure [volatility](../v/volatility.md) and identify extreme price levels, signaling potential [reversal](../r/reversal.md) points. - **[Stochastic Oscillator](../s/stochastic_oscillator.md):** This [indicator](../i/indicator.md) compares a [security](../s/security.md)'s closing price to its price [range](../r/range.md) over a specific period, helping to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. diff --git a/en/pedia/r/reverse_calendar_spread.md b/en/pedia/r/reverse_calendar_spread.md index 9d41ce7b..a2710eec 100644 --- a/en/pedia/r/reverse_calendar_spread.md +++ b/en/pedia/r/reverse_calendar_spread.md @@ -14,7 +14,7 @@ Here’s a step-by-step breakdown of how one can set up a reverse calendar sprea ### Key Components -- **[Underlying Asset](../u/underlying_asset.md)**: The [security](../s/security.md) or [index](../i/index.md) that the [options](../o/options.md) are based on. +- **[Underlying Asset](../u/underlying_asset.md)**: The [security](../s/security.md) or [index](../i/index_instrument.md) that the [options](../o/options.md) are based on. - **Expiration Dates**: The short-term option [will](../w/will.md) have a closer [expiration date](../e/expiration_date.md), whereas the long-term option [will](../w/will.md) have a farther [expiration date](../e/expiration_date.md). - **[Strike Price](../s/strike_price.md)**: Both [options](../o/options.md) [will](../w/will.md) share the same [strike price](../s/strike_price.md). diff --git a/en/pedia/r/risk-weighted_return.md b/en/pedia/r/risk-weighted_return.md index 5bee278a..f3758b14 100644 --- a/en/pedia/r/risk-weighted_return.md +++ b/en/pedia/r/risk-weighted_return.md @@ -71,7 +71,7 @@ A higher [Treynor Ratio](../t/treynor_ratio.md) indicates that the investment ha ## Information Ratio -The [Information Ratio](../i/information_ratio.md) measures portfolio returns beyond the returns of a [benchmark](../b/benchmark.md), usually an [index](../i/index.md), compared to the [volatility](../v/volatility.md) of those returns. +The [Information Ratio](../i/information_ratio.md) measures portfolio returns beyond the returns of a [benchmark](../b/benchmark.md), usually an [index](../i/index_instrument.md), compared to the [volatility](../v/volatility.md) of those returns. ### Calculation diff --git a/en/pedia/r/risk_and_return_analysis.md b/en/pedia/r/risk_and_return_analysis.md index bffb41c5..1a3341ab 100644 --- a/en/pedia/r/risk_and_return_analysis.md +++ b/en/pedia/r/risk_and_return_analysis.md @@ -10,7 +10,7 @@ In the realm of [finance](../f/finance.md) and investments, the concepts of [ris **Types of Returns:** 1. **[Absolute Return](../a/absolute_return.md):** The total [gain](../g/gain.md) or loss from an investment without considering the [risk](../r/risk.md) taken. -2. **Relative [Return](../r/return.md):** The [gain](../g/gain.md) or loss in comparison to a [benchmark](../b/benchmark.md) or [index](../i/index.md). +2. **Relative [Return](../r/return.md):** The [gain](../g/gain.md) or loss in comparison to a [benchmark](../b/benchmark.md) or [index](../i/index_instrument.md). 3. **[Risk-adjusted Return](../r/risk-adjusted_return.md):** [Return](../r/return.md) measures that account for the [risk](../r/risk.md) involved in the investment. ### Definition of Risk @@ -52,7 +52,7 @@ Expected returns are the anticipated returns on an investment based on its histo **Metrics Related to [Volatility](../v/volatility.md):** - **[Standard Deviation](../s/standard_deviation.md):** Measures the amount of variation or [dispersion](../d/dispersion.md) of a set of values. -- **[Beta](../b/beta.md):** Measures an [asset](../a/asset.md)'s [risk](../r/risk.md) in relation to the [market](../m/market.md) or a [benchmark](../b/benchmark.md) [index](../i/index.md). +- **[Beta](../b/beta.md):** Measures an [asset](../a/asset.md)'s [risk](../r/risk.md) in relation to the [market](../m/market.md) or a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). - **[Alpha](../a/alpha.md):** Measures an investment's performance on a [risk](../r/risk.md)-adjusted [basis](../b/basis.md). ### Value at Risk (VaR) diff --git a/en/pedia/r/risk_control_strategies.md b/en/pedia/r/risk_control_strategies.md index d5f321fb..1668daf2 100644 --- a/en/pedia/r/risk_control_strategies.md +++ b/en/pedia/r/risk_control_strategies.md @@ -49,7 +49,7 @@ Hedging involves taking positions in financial instruments that are expected to 2. **[Futures Contracts](../f/futures_contracts.md)**: Entering into [futures contracts](../f/futures_contracts.md) to lock in prices and [hedge](../h/hedge.md) against adverse price movements. 3. **[Pairs Trading](../p/pairs_trading.md)**: Simultaneously buying and selling two correlated securities to reduce [market risk](../m/market_risk.md). -Example: An [investor](../i/investor.md) holds a portfolio of technology [stocks](../s/stock.md) may buy [put options](../p/put_options.md) on the [technology sector](../t/technology_sector.md) [index](../i/index.md) to [hedge](../h/hedge.md) against sector-wide declines. +Example: An [investor](../i/investor.md) holds a portfolio of technology [stocks](../s/stock.md) may buy [put options](../p/put_options.md) on the [technology sector](../t/technology_sector.md) [index](../i/index_instrument.md) to [hedge](../h/hedge.md) against sector-wide declines. ## 6. Stress Testing diff --git a/en/pedia/r/risk_metrics.md b/en/pedia/r/risk_metrics.md index 76ed6105..26b2c667 100644 --- a/en/pedia/r/risk_metrics.md +++ b/en/pedia/r/risk_metrics.md @@ -20,7 +20,7 @@ Conditional [Value](../v/value.md) at [Risk](../r/risk.md) (CVaR), also known as - **[Unsystematic Risk](../u/unsystematic_risk.md)**: [Risk](../r/risk.md) that is unique to a particular stock or [industry](../i/industry.md). ### 4. Alpha (α) -[Alpha](../a/alpha.md) is a metric that quantifies the [excess return](../e/excess_return.md) of a portfolio relative to its [risk](../r/risk.md)-adjusted [benchmark](../b/benchmark.md) [index](../i/index.md). Positive [alpha](../a/alpha.md) indicates that the portfolio has outperformed its [benchmark](../b/benchmark.md), while negative [alpha](../a/alpha.md) signifies underperformance. +[Alpha](../a/alpha.md) is a metric that quantifies the [excess return](../e/excess_return.md) of a portfolio relative to its [risk](../r/risk.md)-adjusted [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). Positive [alpha](../a/alpha.md) indicates that the portfolio has outperformed its [benchmark](../b/benchmark.md), while negative [alpha](../a/alpha.md) signifies underperformance. ### 5. Sharpe Ratio The [Sharpe Ratio](../s/sharpe_ratio.md) measures the [risk-adjusted return](../r/risk-adjusted_return.md) of a portfolio. It is calculated by subtracting the [risk](../r/risk.md)-free rate from the portfolio’s [return](../r/return.md) and then dividing this amount by the portfolio’s [standard deviation](../s/standard_deviation.md). A higher [Sharpe Ratio](../s/sharpe_ratio.md) indicates better [risk](../r/risk.md)-adjusted returns. diff --git a/en/pedia/r/risk_premium.md b/en/pedia/r/risk_premium.md index 1a139919..b1be9958 100644 --- a/en/pedia/r/risk_premium.md +++ b/en/pedia/r/risk_premium.md @@ -30,7 +30,7 @@ The calculation of [risk](../r/risk.md) premiums can differ based on the context ### Historical Approach -The historical approach involves calculating the [average return](../a/average_return.md) difference between risky assets and [risk](../r/risk.md)-free assets over a specific period. For example, if the average historical [return](../r/return.md) of the S&P 500 [index](../i/index.md) is 10% and the [average return](../a/average_return.md) on 10-year U.S. Treasuries is 3%, the historical [equity risk premium](../e/equity_risk_premium.md) is 7%. +The historical approach involves calculating the [average return](../a/average_return.md) difference between risky assets and [risk](../r/risk.md)-free assets over a specific period. For example, if the average historical [return](../r/return.md) of the S&P 500 [index](../i/index_instrument.md) is 10% and the [average return](../a/average_return.md) on 10-year U.S. Treasuries is 3%, the historical [equity risk premium](../e/equity_risk_premium.md) is 7%. ### Forward-Looking Approach @@ -79,7 +79,7 @@ Several [economic indicators](../e/economic_indicators.md) influence the percept ### Market Volatility -Higher [market](../m/market.md) [volatility](../v/volatility.md) usually corresponds with higher [risk](../r/risk.md) premiums, as investors [demand](../d/demand.md) greater compensation for increased [uncertainty](../u/uncertainty_in_trading.md). Indices like the CBOE [Volatility](../v/volatility.md) [Index](../i/index.md) (VIX) serve as proxies for [market sentiment](../m/market_sentiment.md). +Higher [market](../m/market.md) [volatility](../v/volatility.md) usually corresponds with higher [risk](../r/risk.md) premiums, as investors [demand](../d/demand.md) greater compensation for increased [uncertainty](../u/uncertainty_in_trading.md). Indices like the CBOE [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX) serve as proxies for [market sentiment](../m/market_sentiment.md). ### Interest Rates diff --git a/en/pedia/r/risk_reversal.md b/en/pedia/r/risk_reversal.md index e66afc49..0053ae1f 100644 --- a/en/pedia/r/risk_reversal.md +++ b/en/pedia/r/risk_reversal.md @@ -8,7 +8,7 @@ 1. **[Call Option](../c/call_option.md)**: A financial contract that gives the holder the right, but not the obligation, to buy a specified quantity of an [underlying asset](../u/underlying_asset.md) at a predetermined price ([strike price](../s/strike_price.md)) within a specified timeframe. 2. **[Put Option](../p/put.md)**: A financial contract that gives the holder the right, but not the obligation, to sell a specified quantity of an [underlying asset](../u/underlying_asset.md) at a predetermined price ([strike price](../s/strike_price.md)) within a specified timeframe. -3. **[Underlying Asset](../u/underlying_asset.md)**: The [financial instrument](../f/financial_instrument.md) (e.g., stock, [commodity](../c/commodity.md), [index](../i/index.md)) on which the [options](../o/options.md) are based. +3. **[Underlying Asset](../u/underlying_asset.md)**: The [financial instrument](../f/financial_instrument.md) (e.g., stock, [commodity](../c/commodity.md), [index](../i/index_instrument.md)) on which the [options](../o/options.md) are based. In a [risk](../r/risk.md) [reversal](../r/reversal.md) strategy, the [options](../o/options.md) involved generally have the same [expiration date](../e/expiration_date.md), and the objective is to [hedge](../h/hedge.md) or speculate on the price movement of the [underlying asset](../u/underlying_asset.md). diff --git a/en/pedia/r/robust.md b/en/pedia/r/robust.md index 8d2a6980..3eb8a5fc 100644 --- a/en/pedia/r/robust.md +++ b/en/pedia/r/robust.md @@ -122,7 +122,7 @@ Apart from [trading systems](../t/trading_systems.md) and financial models, the ### Financial Modeling - MSCI -MSCI Inc. (https://www.msci.com/) offers robust financial models and [index](../i/index.md) calculations that are widely used for [risk management](../r/risk_management.md) and investment decision-making. Their models incorporate vast amounts of data and stress-testing techniques to ensure their accuracy and reliability across different [market](../m/market.md) conditions. +MSCI Inc. (https://www.msci.com/) offers robust financial models and [index](../i/index_instrument.md) calculations that are widely used for [risk management](../r/risk_management.md) and investment decision-making. Their models incorporate vast amounts of data and stress-testing techniques to ensure their accuracy and reliability across different [market](../m/market.md) conditions. ## Conclusion diff --git a/en/pedia/r/roll_forward.md b/en/pedia/r/roll_forward.md index d31bf80e..9c28d3b6 100644 --- a/en/pedia/r/roll_forward.md +++ b/en/pedia/r/roll_forward.md @@ -9,7 +9,7 @@ Roll forward involves closing an existing contract that is near expiration and o ### Key Terms 1. **[Expiration Date](../e/expiration_date.md)**: The date on which a contract expires and settlement is due. -2. **[Underlying Asset](../u/underlying_asset.md)**: The [financial instrument](../f/financial_instrument.md) on which a [derivatives](../d/derivatives.md) contract is based, such as a stock, [commodity](../c/commodity.md), or [index](../i/index.md). +2. **[Underlying Asset](../u/underlying_asset.md)**: The [financial instrument](../f/financial_instrument.md) on which a [derivatives](../d/derivatives.md) contract is based, such as a stock, [commodity](../c/commodity.md), or [index](../i/index_instrument.md). 3. **Contract**: The formal agreement in [futures](../f/futures.md) and [options](../o/options.md) trading that specifies the [asset](../a/asset.md), the quantity, the price, and the [expiration date](../e/expiration_date.md). ### Applications @@ -62,7 +62,7 @@ Financial [market](../m/market.md) regulations and [margin](../m/margin.md) requ ### Roll Forward in S&P 500 Futures -A [trader](../t/trader.md) is holding a long position in an S&P 500 [futures contract](../f/futures_contract.md) that is due to expire in September. As the [expiration date](../e/expiration_date.md) approaches, the [trader](../t/trader.md) decides to roll forward to maintain exposure to the S&P 500 [index](../i/index.md). The [trader](../t/trader.md) sells the September [futures contract](../f/futures_contract.md) and simultaneously buys a December [futures contract](../f/futures_contract.md), extending the position by three months. +A [trader](../t/trader.md) is holding a long position in an S&P 500 [futures contract](../f/futures_contract.md) that is due to expire in September. As the [expiration date](../e/expiration_date.md) approaches, the [trader](../t/trader.md) decides to roll forward to maintain exposure to the S&P 500 [index](../i/index_instrument.md). The [trader](../t/trader.md) sells the September [futures contract](../f/futures_contract.md) and simultaneously buys a December [futures contract](../f/futures_contract.md), extending the position by three months. ### Roll Forward in Options Trading diff --git a/en/pedia/r/rolling_beta_analysis.md b/en/pedia/r/rolling_beta_analysis.md index 5bed62f5..7c8e2c47 100644 --- a/en/pedia/r/rolling_beta_analysis.md +++ b/en/pedia/r/rolling_beta_analysis.md @@ -17,7 +17,7 @@ Rolling [Beta](../b/beta.md) involves recalculating the [beta](../b/beta.md) of ### Steps to Calculate Rolling Beta 1. **Data Collection**: - - Obtain historical price data for the [asset](../a/asset.md) and the [benchmark](../b/benchmark.md) [index](../i/index.md). + - Obtain historical price data for the [asset](../a/asset.md) and the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). - Ensure the price data is synchronized and contains enough points for the rolling windows. 2. **[Return](../r/return.md) Calculation**: diff --git a/en/pedia/r/rolling_correlation.md b/en/pedia/r/rolling_correlation.md index b88e3abf..8a804fac 100644 --- a/en/pedia/r/rolling_correlation.md +++ b/en/pedia/r/rolling_correlation.md @@ -83,7 +83,7 @@ returns_b = np.random.randn(100) data = pd.DataFrame({ 'Stock_A': returns_a, 'Stock_B': returns_b -}, [index](../i/index.md)=dates) +}, [index](../i/index_instrument.md)=dates) # Calculate rolling correlation with a 30-day window rolling_corr = data['Stock_A'].rolling(window=30).corr(data['Stock_B']) diff --git a/en/pedia/r/rolling_z-score_analysis.md b/en/pedia/r/rolling_z-score_analysis.md index 2f4577d5..ccf1ebbd 100644 --- a/en/pedia/r/rolling_z-score_analysis.md +++ b/en/pedia/r/rolling_z-score_analysis.md @@ -173,7 +173,7 @@ account = api.get_account() print(account) # Execute trades based on signals -for [index](../i/index.md), row in data.iterrows(): +for [index](../i/index_instrument.md), row in data.iterrows(): if row['signal'] == 1: api.submit_order( symbol=symbol, diff --git a/en/pedia/r/rule-based_algorithm_design.md b/en/pedia/r/rule-based_algorithm_design.md index a07ea0a4..f0ad7a1f 100644 --- a/en/pedia/r/rule-based_algorithm_design.md +++ b/en/pedia/r/rule-based_algorithm_design.md @@ -19,7 +19,7 @@ Example: ### Source of Rules Rules can be derived from: -- [Technical Analysis](../t/technical_analysis.md): Utilizing indicators like Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), MACD. +- [Technical Analysis](../t/technical_analysis.md): Utilizing indicators like Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), MACD. - [Fundamental Analysis](../f/fundamental_analysis.md): Based on [financial health](../f/financial_health.md) indicators such as [earnings](../e/earnings.md) reports, P/E ratios. - [Quantitative Models](../q/quantitative_models.md): Using statistical measures and machine [learning algorithms](../l/learning_algorithms_in_trading.md) to identify patterns. diff --git a/en/pedia/r/rule-based_trading.md b/en/pedia/r/rule-based_trading.md index 48d034d0..7e335dc9 100644 --- a/en/pedia/r/rule-based_trading.md +++ b/en/pedia/r/rule-based_trading.md @@ -23,13 +23,13 @@ Rule-based systems can include stringent [risk management](../r/risk_management. ## Algorithm Types in Rule-Based Trading ### Trend-Following Algorithms -[Trend](../t/trend.md)-following strategies aim to [capitalize](../c/capitalize.md) on the direction of [market](../m/market.md) trends. These algorithms use indicators like moving averages (MA), moving average convergence [divergence](../d/divergence.md) (MACD), and [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI) to determine the [trend](../t/trend.md)'s direction and strength. +[Trend](../t/trend.md)-following strategies aim to [capitalize](../c/capitalize.md) on the direction of [market](../m/market.md) trends. These algorithms use indicators like moving averages (MA), moving average convergence [divergence](../d/divergence.md) (MACD), and [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI) to determine the [trend](../t/trend.md)'s direction and strength. ### Mean Reversion Algorithms [Mean reversion](../m/mean_reversion.md) strategies are based on the statistical assumption that prices [will](../w/will.md) revert to their mean over time. Algorithms might use [Bollinger Bands](../b/bollinger_bands.md) or [z-scores](../z/z-scores_in_trading.md) to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, signaling when to enter or exit trades. ### Arbitrage Algorithms -[Arbitrage](../a/arbitrage.md) strategies exploit price discrepancies of the same or related financial instruments across different markets or platforms. Types of [arbitrage](../a/arbitrage.md) include statistical [arbitrage](../a/arbitrage.md), [index](../i/index.md) [arbitrage](../a/arbitrage.md), and [currency](../c/currency.md) [arbitrage](../a/arbitrage.md). +[Arbitrage](../a/arbitrage.md) strategies exploit price discrepancies of the same or related financial instruments across different markets or platforms. Types of [arbitrage](../a/arbitrage.md) include statistical [arbitrage](../a/arbitrage.md), [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md), and [currency](../c/currency.md) [arbitrage](../a/arbitrage.md). ### High-Frequency Trading (HFT) High-Frequency Trading is a sub-category of [algorithmic trading](../a/algorithmic_trading.md) where algorithms execute a large number of orders at extremely high speeds. HFT strategies can involve [multiple](../m/multiple.md) algorithms to [capitalize](../c/capitalize.md) on micro-[market](../m/market.md) movements. diff --git a/en/pedia/r/rule_mining_in_trading.md b/en/pedia/r/rule_mining_in_trading.md index 427c0bda..84cbbc65 100644 --- a/en/pedia/r/rule_mining_in_trading.md +++ b/en/pedia/r/rule_mining_in_trading.md @@ -54,7 +54,7 @@ Rule [mining](../m/mining.md) in trading has several practical applications, inc ### Technical Analysis -Technical analysts use rule [mining](../m/mining.md) to discover patterns and signals from historical price and [volume](../v/volume.md) data. These rules help in identifying trading opportunities based on [technical indicators](../t/technical_indicators.md) such as moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md). +Technical analysts use rule [mining](../m/mining.md) to discover patterns and signals from historical price and [volume](../v/volume.md) data. These rules help in identifying trading opportunities based on [technical indicators](../t/technical_indicators.md) such as moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md). ### Algorithmic Trading diff --git a/en/pedia/r/rule_of_thumb.md b/en/pedia/r/rule_of_thumb.md index da46c954..d31e51ab 100644 --- a/en/pedia/r/rule_of_thumb.md +++ b/en/pedia/r/rule_of_thumb.md @@ -35,7 +35,7 @@ In [real estate](../r/real_estate.md) investment, the 1% rule states that the mo When considering refinancing your [mortgage](../m/mortgage.md), a common rule of thumb is to ensure you have at least 20% [equity](../e/equity.md) in your [home](../h/home.md). This rule helps avoid the costs and complications associated with private [mortgage insurance](../m/mortgage_insurance.md) (PMI). ### 10. The Coffeehouse Portfolio Rule -The coffeehouse portfolio rule, popularized by Bill Schultheis's book "The Coffeehouse [Investor](../i/investor.md)," suggests a simple, diversified mix of seven [index](../i/index.md) funds: +The coffeehouse portfolio rule, popularized by Bill Schultheis's book "The Coffeehouse [Investor](../i/investor.md)," suggests a simple, diversified mix of seven [index](../i/index_instrument.md) funds: - 40% in the total [bond](../b/bond.md) [market index](../m/market_index.md) [fund](../f/fund.md) - 10% in the S&P 500 [index fund](../i/index_fund.md) - 10% in large-cap [value](../v/value.md) [index fund](../i/index_fund.md) diff --git a/en/pedia/r/run-pullback_strategies.md b/en/pedia/r/run-pullback_strategies.md index 1c388ccb..872e9dfa 100644 --- a/en/pedia/r/run-pullback_strategies.md +++ b/en/pedia/r/run-pullback_strategies.md @@ -36,7 +36,7 @@ Run-[Pullback](../p/pullback.md) Strategies, also known as [Trend](../t/trend.md 3. **[Trend](../t/trend.md) Lines:** Drawing [trend](../t/trend.md) lines helps identify the overall direction of the [trend](../t/trend.md) and potential entry points during a [pullback](../p/pullback.md). -4. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** +4. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It can indicate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions during a [pullback](../p/pullback.md). 5. **Moving Average Convergence [Divergence](../d/divergence.md) (MACD):** diff --git a/en/pedia/r/runaway_gaps.md b/en/pedia/r/runaway_gaps.md index 4e08dffd..26a9d60e 100644 --- a/en/pedia/r/runaway_gaps.md +++ b/en/pedia/r/runaway_gaps.md @@ -27,7 +27,7 @@ For algorithmic traders, identifying a runaway gap involves a combination of [te Algorithms can utilize various [technical indicators](../t/technical_indicators.md) to identify and confirm runaway [gaps](../g/gap.md): - **Moving Averages**: A moving average crossover (e.g., the 50-day crossing above the [200-day moving average](../1/200-day_moving_average.md)) can strengthen the continuation signal. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: An RSI can help determine [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. A runaway gap in an [uptrend](../u/uptrend.md) with an RSI that is not [overbought](../o/overbought.md) could be a strong continuation signal. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: An RSI can help determine [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. A runaway gap in an [uptrend](../u/uptrend.md) with an RSI that is not [overbought](../o/overbought.md) could be a strong continuation signal. - **[Volume Indicators](../v/volume_indicators.md)**: High trading [volume](../v/volume.md) confirms the validity of the gap. Indicators like On-Balance [Volume](../v/volume.md) (OBV) or the [Volume](../v/volume.md)-[Weighted Average](../w/weighted_average.md) Price (VWAP) are helpful. #### Algorithmic Trading Strategies diff --git a/en/pedia/r/russell_1000_index.md b/en/pedia/r/russell_1000_index.md index 178f9e07..7f099a48 100644 --- a/en/pedia/r/russell_1000_index.md +++ b/en/pedia/r/russell_1000_index.md @@ -1,16 +1,16 @@ # Russell 1000 Index -The Russell 1000 [Index](../i/index.md) is a stock [market index](../m/market_index.md) that tracks the performance of the largest 1,000 publicly traded companies in the United States. It is one of the most widely used benchmarks for [large-cap stocks](../l/large_cap_stocks.md), and it provides a valuable data set for investors, analysts, and financial professionals in their assessments of the [market](../m/market.md) and individual company performances. This comprehensive overview [will](../w/will.md) cover various aspects of the Russell 1000 [Index](../i/index.md), including its history, methodology, composition, significance, and usage in the world of [finance](../f/finance.md) and trading. +The Russell 1000 [Index](../i/index_instrument.md) is a stock [market index](../m/market_index.md) that tracks the performance of the largest 1,000 publicly traded companies in the United States. It is one of the most widely used benchmarks for [large-cap stocks](../l/large_cap_stocks.md), and it provides a valuable data set for investors, analysts, and financial professionals in their assessments of the [market](../m/market.md) and individual company performances. This comprehensive overview [will](../w/will.md) cover various aspects of the Russell 1000 [Index](../i/index_instrument.md), including its history, methodology, composition, significance, and usage in the world of [finance](../f/finance.md) and trading. ## History of the Russell 1000 Index -The Russell 1000 [Index](../i/index.md) was created by the Frank Russell Company in 1984. The Frank Russell Company, now part of [FTSE Russell](../f/ftse_russell.md), designed the [index](../i/index.md) to provide a clearer and more representational gauge of large-cap stock performance in the American [equity market](../e/equity_market.md). [FTSE Russell](../f/ftse_russell.md) is a global provider of benchmarks, analytics, and data solutions for investors worldwide. +The Russell 1000 [Index](../i/index_instrument.md) was created by the Frank Russell Company in 1984. The Frank Russell Company, now part of [FTSE Russell](../f/ftse_russell.md), designed the [index](../i/index_instrument.md) to provide a clearer and more representational gauge of large-cap stock performance in the American [equity market](../e/equity_market.md). [FTSE Russell](../f/ftse_russell.md) is a global provider of benchmarks, analytics, and data solutions for investors worldwide. ## Methodology ### Selection Criteria -The Russell 1000 [Index](../i/index.md) includes the 1,000 largest companies in the U.S. [equity](../e/equity.md) markets, which are selected based on their [market capitalization](../m/market_capitalization.md). The selection and weighting process occurs annually, usually in May and June, during what's known as the "Russell Reconstitution." +The Russell 1000 [Index](../i/index_instrument.md) includes the 1,000 largest companies in the U.S. [equity](../e/equity.md) markets, which are selected based on their [market capitalization](../m/market_capitalization.md). The selection and weighting process occurs annually, usually in May and June, during what's known as the "Russell Reconstitution." ### Market Capitalization @@ -18,7 +18,7 @@ The Russell 1000 [Index](../i/index.md) includes the 1,000 largest companies in ### Weighting -The Russell 1000 [Index](../i/index.md) is a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md), meaning each company's weight in the [index](../i/index.md) is proportional to its [market capitalization](../m/market_capitalization.md). Larger companies have a more significant impact on the [index](../i/index.md)'s performance compared to smaller ones. +The Russell 1000 [Index](../i/index_instrument.md) is a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md), meaning each company's weight in the [index](../i/index_instrument.md) is proportional to its [market capitalization](../m/market_capitalization.md). Larger companies have a more significant impact on the [index](../i/index_instrument.md)'s performance compared to smaller ones. ### Adjustments and Reconstitution @@ -26,11 +26,11 @@ The Russell 1000 [Index](../i/index.md) is a [market](../m/market.md)-[capitaliz ## Composition -Given that the Russell 1000 [Index](../i/index.md) includes 1,000 of the largest U.S. companies, it spans a diverse array of industries and sectors. The companies represented in the [index](../i/index.md) often include many of the most well-known and influential corporations in the U.S. [economy](../e/economy.md), such as technology giants, industrial firms, financial institutions, healthcare providers, and [consumer goods](../c/consumer_goods.md) companies. +Given that the Russell 1000 [Index](../i/index_instrument.md) includes 1,000 of the largest U.S. companies, it spans a diverse array of industries and sectors. The companies represented in the [index](../i/index_instrument.md) often include many of the most well-known and influential corporations in the U.S. [economy](../e/economy.md), such as technology giants, industrial firms, financial institutions, healthcare providers, and [consumer goods](../c/consumer_goods.md) companies. ### Sector Distribution -The sector [distribution](../d/distribution.md) within the Russell 1000 [Index](../i/index.md) can vary, but it typically includes the following sectors: +The sector [distribution](../d/distribution.md) within the Russell 1000 [Index](../i/index_instrument.md) can vary, but it typically includes the following sectors: - Technology - Healthcare @@ -46,61 +46,61 @@ The sector [distribution](../d/distribution.md) within the Russell 1000 [Index]( ### Examples of Notable Companies -The [index](../i/index.md) includes major companies such as: +The [index](../i/index_instrument.md) includes major companies such as: - Apple Inc. (https://www.apple.com/) - Microsoft [Corporation](../c/corporation.md) (https://www.microsoft.com/) - Amazon.com Inc. (https://www.amazon.com/) - Alphabet Inc. (Google) (https://www.alphabet.com/) - Facebook Inc. (Meta Platforms) (https://about.fb.com/meta/) -These companies represent a significant portion of the [index](../i/index.md)'s [market value](../m/market_value.md) due to their substantial [market](../m/market.md) capitalizations. +These companies represent a significant portion of the [index](../i/index_instrument.md)'s [market value](../m/market_value.md) due to their substantial [market](../m/market.md) capitalizations. ## Significance ### Investment Benchmark -The Russell 1000 [Index](../i/index.md) serves as a crucial [benchmark](../b/benchmark.md) for investors looking to measure the performance of large-cap U.S. [stocks](../s/stock.md). [Fund](../f/fund.md) managers, individual investors, and financial professionals use the [index](../i/index.md) to compare [return](../r/return.md) performance, assess [risk](../r/risk.md), and make informed investment decisions. +The Russell 1000 [Index](../i/index_instrument.md) serves as a crucial [benchmark](../b/benchmark.md) for investors looking to measure the performance of large-cap U.S. [stocks](../s/stock.md). [Fund](../f/fund.md) managers, individual investors, and financial professionals use the [index](../i/index_instrument.md) to compare [return](../r/return.md) performance, assess [risk](../r/risk.md), and make informed investment decisions. ### ETFs and Mutual Funds -The [index](../i/index.md) is the [basis](../b/basis.md) for several [exchange](../e/exchange.md)-traded funds (ETFs) and mutual funds, allowing investors to [gain](../g/gain.md) exposure to a broad spectrum of large-cap U.S. companies. Examples include: +The [index](../i/index_instrument.md) is the [basis](../b/basis.md) for several [exchange](../e/exchange.md)-traded funds (ETFs) and mutual funds, allowing investors to [gain](../g/gain.md) exposure to a broad spectrum of large-cap U.S. companies. Examples include: - [iShares](../i/ishares.md) Russell 1000 ETF (IWB) (https://www.[ishares](../i/ishares.md).com/us/products/239726/) - Vanguard Russell 1000 ETF (VONE) (https://[investor](../i/investor.md).vanguard.com/etf/profile/VONE) ### Performance Analysis -By tracking the Russell 1000 [Index](../i/index.md), investors can [gain](../g/gain.md) insights into the overall health of the large-cap segment of the U.S. [stock market](../s/stock_market.md). Analysts use the [index](../i/index.md) to evaluate [market](../m/market.md) trends, [sector performance](../s/sector_performance.md), and [economic conditions](../e/economic_conditions.md). +By tracking the Russell 1000 [Index](../i/index_instrument.md), investors can [gain](../g/gain.md) insights into the overall health of the large-cap segment of the U.S. [stock market](../s/stock_market.md). Analysts use the [index](../i/index_instrument.md) to evaluate [market](../m/market.md) trends, [sector performance](../s/sector_performance.md), and [economic conditions](../e/economic_conditions.md). ### Market Representation -The Russell 1000 [Index](../i/index.md) covers a substantial portion of the U.S. [stock market](../s/stock_market.md)'s total [market capitalization](../m/market_capitalization.md), providing a comprehensive overview of the large-cap segment. This broad coverage makes it an essential tool for understanding [market dynamics](../m/market_dynamics.md) and [investor](../i/investor.md) sentiment. +The Russell 1000 [Index](../i/index_instrument.md) covers a substantial portion of the U.S. [stock market](../s/stock_market.md)'s total [market capitalization](../m/market_capitalization.md), providing a comprehensive overview of the large-cap segment. This broad coverage makes it an essential tool for understanding [market dynamics](../m/market_dynamics.md) and [investor](../i/investor.md) sentiment. ## Usage in Finance and Trading ### Trading Strategies -The [index](../i/index.md) is a valuable resource for traders implementing various strategies, such as: +The [index](../i/index_instrument.md) is a valuable resource for traders implementing various strategies, such as: -- **[Index Arbitrage](../i/index_arbitrage.md)**: Traders exploit price differences between the [index](../i/index.md) components and the [index](../i/index.md) itself. +- **[Index Arbitrage](../i/index_arbitrage.md)**: Traders exploit price differences between the [index](../i/index_instrument.md) components and the [index](../i/index_instrument.md) itself. - **[Sector Rotation](../s/sector_rotation.md)**: Investors switch investments among sectors based on anticipated performance. -- **[Pairs Trading](../p/pairs_trading.md)**: Traders simultaneously buy and sell correlated securities in the [index](../i/index.md) to [hedge](../h/hedge.md) risks. +- **[Pairs Trading](../p/pairs_trading.md)**: Traders simultaneously buy and sell correlated securities in the [index](../i/index_instrument.md) to [hedge](../h/hedge.md) risks. ### Algorithmic Trading -In the world of [algorithmic trading](../a/accountability.md), the Russell 1000 [Index](../i/index.md) provides a [robust](../r/robust.md) data set for developing and [backtesting](../b/backtesting.md) [trading algorithms](../t/trading_algorithms.md). Quantitative analysts utilize historical data from the [index](../i/index.md) to design algorithms that can predict [market](../m/market.md) movements, optimize portfolio allocation, and manage [risk](../r/risk.md). +In the world of [algorithmic trading](../a/accountability.md), the Russell 1000 [Index](../i/index_instrument.md) provides a [robust](../r/robust.md) data set for developing and [backtesting](../b/backtesting.md) [trading algorithms](../t/trading_algorithms.md). Quantitative analysts utilize historical data from the [index](../i/index_instrument.md) to design algorithms that can predict [market](../m/market.md) movements, optimize portfolio allocation, and manage [risk](../r/risk.md). ### Financial Products -Various financial products, including [futures](../f/futures.md), [options](../o/options.md), and [index](../i/index.md) funds, are based on the Russell 1000 [Index](../i/index.md). These products [offer](../o/offer.md) both institutional and retail investors mechanisms to invest in or [hedge](../h/hedge.md) against the performance of large-cap U.S. equities. +Various financial products, including [futures](../f/futures.md), [options](../o/options.md), and [index](../i/index_instrument.md) funds, are based on the Russell 1000 [Index](../i/index_instrument.md). These products [offer](../o/offer.md) both institutional and retail investors mechanisms to invest in or [hedge](../h/hedge.md) against the performance of large-cap U.S. equities. ### Risk Management -Portfolio managers rely on the Russell 1000 [Index](../i/index.md) for [risk management](../r/risk_management.md) purposes. By understanding the [index](../i/index.md)'s composition and [volatility](../v/volatility.md), managers can better diversify portfolios, mitigate exposure to specific sectors, and optimize [asset allocation](../a/asset_allocation.md) strategies. +Portfolio managers rely on the Russell 1000 [Index](../i/index_instrument.md) for [risk management](../r/risk_management.md) purposes. By understanding the [index](../i/index_instrument.md)'s composition and [volatility](../v/volatility.md), managers can better diversify portfolios, mitigate exposure to specific sectors, and optimize [asset allocation](../a/asset_allocation.md) strategies. ### Performance Attribution -Institutional investors and [fund](../f/fund.md) managers use the Russell 1000 [Index](../i/index.md) for [performance attribution](../p/performance_attribution.md) analysis. This process involves breaking down portfolio returns to understand the sources of outperformance or underperformance relative to the [index](../i/index.md). Factors such as sector allocation, stock selection, and timing can be analyzed to attribute performance. +Institutional investors and [fund](../f/fund.md) managers use the Russell 1000 [Index](../i/index_instrument.md) for [performance attribution](../p/performance_attribution.md) analysis. This process involves breaking down portfolio returns to understand the sources of outperformance or underperformance relative to the [index](../i/index_instrument.md). Factors such as sector allocation, stock selection, and timing can be analyzed to attribute performance. ## Conclusion -The Russell 1000 [Index](../i/index.md) is a cornerstone of the U.S. [equity market](../e/equity_market.md), representing the largest 1,000 publicly traded companies. Its broad coverage, rigorous methodology, and significance as a performance [benchmark](../b/benchmark.md) make it an essential tool for investors, analysts, portfolio managers, and traders alike. From providing insights into [market](../m/market.md) trends to serving as the [basis](../b/basis.md) for various financial products and algorithms, the Russell 1000 [Index](../i/index.md) plays a multifaceted role in the world of [finance](../f/finance.md). \ No newline at end of file +The Russell 1000 [Index](../i/index_instrument.md) is a cornerstone of the U.S. [equity market](../e/equity_market.md), representing the largest 1,000 publicly traded companies. Its broad coverage, rigorous methodology, and significance as a performance [benchmark](../b/benchmark.md) make it an essential tool for investors, analysts, portfolio managers, and traders alike. From providing insights into [market](../m/market.md) trends to serving as the [basis](../b/basis.md) for various financial products and algorithms, the Russell 1000 [Index](../i/index_instrument.md) plays a multifaceted role in the world of [finance](../f/finance.md). \ No newline at end of file diff --git a/en/pedia/r/russell_2000_index.md b/en/pedia/r/russell_2000_index.md index ce86d06c..f3532df9 100644 --- a/en/pedia/r/russell_2000_index.md +++ b/en/pedia/r/russell_2000_index.md @@ -1,10 +1,10 @@ # Russell 2000 Index -The Russell 2000 [Index](../i/index.md) is a widely recognized small-cap stock [index](../i/index.md) representing the smallest 2,000 [stocks](../s/stock.md) in the [Russell 3000 Index](../r/russell_3000_index.md). It was first introduced by the Frank Russell Company in 1984 and is a key [benchmark](../b/benchmark.md) for small-cap U.S. equities. This [index](../i/index.md) includes the bottom 2,000 [stocks](../s/stock.md) by [market capitalization](../m/market_capitalization.md) and provides comprehensive coverage of the investable small-cap segment of the American [equity market](../e/equity_market.md). Over the years, the Russell 2000 has become one of the most commonly quoted and referenced stock indices in the financial world, particularly for investment strategies focusing on small-cap companies. +The Russell 2000 [Index](../i/index_instrument.md) is a widely recognized small-cap stock [index](../i/index_instrument.md) representing the smallest 2,000 [stocks](../s/stock.md) in the [Russell 3000 Index](../r/russell_3000_index.md). It was first introduced by the Frank Russell Company in 1984 and is a key [benchmark](../b/benchmark.md) for small-cap U.S. equities. This [index](../i/index_instrument.md) includes the bottom 2,000 [stocks](../s/stock.md) by [market capitalization](../m/market_capitalization.md) and provides comprehensive coverage of the investable small-cap segment of the American [equity market](../e/equity_market.md). Over the years, the Russell 2000 has become one of the most commonly quoted and referenced stock indices in the financial world, particularly for investment strategies focusing on small-cap companies. ## Components and Methodology -The Russell 2000 [Index](../i/index.md) is constructed using a rules-based methodology that includes the following steps: +The Russell 2000 [Index](../i/index_instrument.md) is constructed using a rules-based methodology that includes the following steps: ### Selection of Universe @@ -12,7 +12,7 @@ The entire [Russell 3000 Index](../r/russell_3000_index.md) is used as the [unde ### Market Capitalization -[Stocks](../s/stock.md) are ranked and sorted by their total [market capitalization](../m/market_capitalization.md). The smallest 2,000 [stocks](../s/stock.md) in the [Russell 3000 index](../r/russell_3000_index.md) are then selected to form the Russell 2000 [Index](../i/index.md). This [market](../m/market.md) cap allocation ensures that the [index](../i/index.md) reflects the small-cap segment of the [market](../m/market.md). +[Stocks](../s/stock.md) are ranked and sorted by their total [market capitalization](../m/market_capitalization.md). The smallest 2,000 [stocks](../s/stock.md) in the [Russell 3000 index](../r/russell_3000_index.md) are then selected to form the Russell 2000 [Index](../i/index_instrument.md). This [market](../m/market.md) cap allocation ensures that the [index](../i/index_instrument.md) reflects the small-cap segment of the [market](../m/market.md). ### Reconstitution @@ -20,50 +20,50 @@ One of the key features of the Russell indices is their annual reconstitution. E ### Weighting -The Russell 2000 is a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md), meaning that each stock's weight in the [index](../i/index.md) is proportional to its [market](../m/market.md) cap. [Stocks](../s/stock.md) with larger [market](../m/market.md) caps have a larger influence on the [index](../i/index.md)’s performance. +The Russell 2000 is a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md), meaning that each stock's weight in the [index](../i/index_instrument.md) is proportional to its [market](../m/market.md) cap. [Stocks](../s/stock.md) with larger [market](../m/market.md) caps have a larger influence on the [index](../i/index_instrument.md)’s performance. ## Performance Metrics -Investors use several [performance metrics](../p/performance_metrics.md) to evaluate the Russell 2000 [Index](../i/index.md): +Investors use several [performance metrics](../p/performance_metrics.md) to evaluate the Russell 2000 [Index](../i/index_instrument.md): ### Total Return -The [total return](../t/total_return.md) of the Russell 2000 [Index](../i/index.md) includes both price returns and the [reinvestment](../r/reinvestment.md) of dividends. This gives a comprehensive measure of the performance, including [income](../i/income.md) from dividends. +The [total return](../t/total_return.md) of the Russell 2000 [Index](../i/index_instrument.md) includes both price returns and the [reinvestment](../r/reinvestment.md) of dividends. This gives a comprehensive measure of the performance, including [income](../i/income.md) from dividends. ### Price Return -Price [return](../r/return.md) measures just the change in the [market price](../m/market_price.md) of the [index](../i/index.md) components without [accounting](../a/accounting.md) for dividends. This is commonly used to gauge [market sentiment](../m/market_sentiment.md) and [capital](../c/capital.md) appreciation. +Price [return](../r/return.md) measures just the change in the [market price](../m/market_price.md) of the [index](../i/index_instrument.md) components without [accounting](../a/accounting.md) for dividends. This is commonly used to gauge [market sentiment](../m/market_sentiment.md) and [capital](../c/capital.md) appreciation. ### Volatility -[Volatility](../v/volatility.md) is a measure of the price fluctuations of the [stocks](../s/stock.md) in the [index](../i/index.md). The Russell 2000 [Index](../i/index.md) tends to be more volatile compared to large-cap indices like the S&P 500, reflecting the higher [risk](../r/risk.md) and reward potential of small-cap [stocks](../s/stock.md). +[Volatility](../v/volatility.md) is a measure of the price fluctuations of the [stocks](../s/stock.md) in the [index](../i/index_instrument.md). The Russell 2000 [Index](../i/index_instrument.md) tends to be more volatile compared to large-cap indices like the S&P 500, reflecting the higher [risk](../r/risk.md) and reward potential of small-cap [stocks](../s/stock.md). ### Tracking Error -[Tracking error](../t/tracking_error.md) evaluates how closely an [index fund](../i/index_fund.md) or ETF mimics the performance of the Russell 2000 [Index](../i/index.md). Lower [tracking error](../t/tracking_error.md) indicates a more accurate replication of the [index](../i/index.md). +[Tracking error](../t/tracking_error.md) evaluates how closely an [index fund](../i/index_fund.md) or ETF mimics the performance of the Russell 2000 [Index](../i/index_instrument.md). Lower [tracking error](../t/tracking_error.md) indicates a more accurate replication of the [index](../i/index_instrument.md). ## Investment Vehicles -There are several ways for investors to [gain](../g/gain.md) exposure to the Russell 2000 [Index](../i/index.md): +There are several ways for investors to [gain](../g/gain.md) exposure to the Russell 2000 [Index](../i/index_instrument.md): ### ETFs -[Exchange](../e/exchange.md)-Traded Funds (ETFs) replicating the Russell 2000 [Index](../i/index.md) are a popular [investment vehicle](../i/investment_vehicle.md). Some of the most well-known ETFs are: +[Exchange](../e/exchange.md)-Traded Funds (ETFs) replicating the Russell 2000 [Index](../i/index_instrument.md) are a popular [investment vehicle](../i/investment_vehicle.md). Some of the most well-known ETFs are: - **[iShares](../i/ishares.md) Russell 2000 ETF (IWM)**: One of the largest and most [liquid](../l/liquid.md) ETFs tracking the Russell 2000. - **Vanguard Russell 2000 ETF (VTWO)**: A cost-effective option for gaining exposure to small-cap [stocks](../s/stock.md). ### Mutual Funds -Several mutual funds aim to replicate or [outperform](../o/outperform.md) the Russell 2000 [Index](../i/index.md). These funds often employ [active management](../a/active_management.md) strategies to potentially deliver higher returns. +Several mutual funds aim to replicate or [outperform](../o/outperform.md) the Russell 2000 [Index](../i/index_instrument.md). These funds often employ [active management](../a/active_management.md) strategies to potentially deliver higher returns. ### Futures and Options -The Russell 2000 is also available through [futures contracts](../f/futures_contracts.md) and [options](../o/options.md) trading. These financial instruments provide more sophisticated traders with the ability to [hedge](../h/hedge.md) or speculate on the [index](../i/index.md)'s performance. +The Russell 2000 is also available through [futures contracts](../f/futures_contracts.md) and [options](../o/options.md) trading. These financial instruments provide more sophisticated traders with the ability to [hedge](../h/hedge.md) or speculate on the [index](../i/index_instrument.md)'s performance. ### Stock Picking -Individual investors may choose to construct their own portfolios by picking [stocks](../s/stock.md) that are part of the Russell 2000 [Index](../i/index.md). +Individual investors may choose to construct their own portfolios by picking [stocks](../s/stock.md) that are part of the Russell 2000 [Index](../i/index_instrument.md). ## Economic Significance @@ -77,13 +77,13 @@ Since small-cap [stocks](../s/stock.md) are more volatile and sensitive to econo ### Portfolio Diversification -Investors use the Russell 2000 [Index](../i/index.md) to diversify their portfolios. Small-cap [stocks](../s/stock.md) often have performance cycles that are different from [large-cap stocks](../l/large_cap_stocks.md), providing a [diversification](../d/diversification.md) benefit. +Investors use the Russell 2000 [Index](../i/index_instrument.md) to diversify their portfolios. Small-cap [stocks](../s/stock.md) often have performance cycles that are different from [large-cap stocks](../l/large_cap_stocks.md), providing a [diversification](../d/diversification.md) benefit. ## Comparisons with Other Indices ### S&P 500 -The S&P 500 [Index](../i/index.md) includes the 500 largest U.S. companies and is often used as a [benchmark](../b/benchmark.md) for the overall [market](../m/market.md). The Russell 2000, on the other hand, focuses exclusively on small-cap [stocks](../s/stock.md). While the S&P 500 tends to be less volatile, the Russell 2000 offers potentially higher returns due to its exposure to smaller, growing companies. +The S&P 500 [Index](../i/index_instrument.md) includes the 500 largest U.S. companies and is often used as a [benchmark](../b/benchmark.md) for the overall [market](../m/market.md). The Russell 2000, on the other hand, focuses exclusively on small-cap [stocks](../s/stock.md). While the S&P 500 tends to be less volatile, the Russell 2000 offers potentially higher returns due to its exposure to smaller, growing companies. ### Russell 1000 @@ -97,24 +97,24 @@ The [NASDAQ](../n/nasdaq.md) Composite includes over 2,500 [stocks](../s/stock.m ### Long-Term Trends -Historically, the Russell 2000 [Index](../i/index.md) has shown considerable growth, alongside periods of significant [volatility](../v/volatility.md). Over the long term, small-cap [stocks](../s/stock.md) have tended to [outperform](../o/outperform.md) [large-cap stocks](../l/large_cap_stocks.md), although they come with higher [risk](../r/risk.md). +Historically, the Russell 2000 [Index](../i/index_instrument.md) has shown considerable growth, alongside periods of significant [volatility](../v/volatility.md). Over the long term, small-cap [stocks](../s/stock.md) have tended to [outperform](../o/outperform.md) [large-cap stocks](../l/large_cap_stocks.md), although they come with higher [risk](../r/risk.md). ### Economic Cycles -The performance of the Russell 2000 [Index](../i/index.md) is closely tied to [economic cycles](../e/economic_cycles.md). [Small caps](../s/small_caps.md) typically [outperform](../o/outperform.md) during economic recoveries and expansions but may [underperform](../u/underperform.md) during economic downturns. +The performance of the Russell 2000 [Index](../i/index_instrument.md) is closely tied to [economic cycles](../e/economic_cycles.md). [Small caps](../s/small_caps.md) typically [outperform](../o/outperform.md) during economic recoveries and expansions but may [underperform](../u/underperform.md) during economic downturns. ### Key Milestones - **1984**: Introduction of the Russell 2000. - **1990s**: The tech boom saw significant gains in small-cap [stocks](../s/stock.md). - **2008**: The [financial crisis](../f/financial_crisis.md) led to a sharp decline, but a strong recovery followed. -- **2020**: COVID-19 pandemic caused [volatility](../v/volatility.md), yet the [index](../i/index.md) quickly rebounded. +- **2020**: COVID-19 pandemic caused [volatility](../v/volatility.md), yet the [index](../i/index_instrument.md) quickly rebounded. ## Russell 2000 in Algorithmic Trading ### Data Sources -Algorithmic traders often use real-time data feeds and historical data for back-testing strategies involving the Russell 2000 [Index](../i/index.md). Providers like [Bloomberg](../b/bloomberg.md), [Reuters](../r/reuters.md), and [interactive brokers](../i/interactive_brokers.md) [offer](../o/offer.md) comprehensive data solutions. +Algorithmic traders often use real-time data feeds and historical data for back-testing strategies involving the Russell 2000 [Index](../i/index_instrument.md). Providers like [Bloomberg](../b/bloomberg.md), [Reuters](../r/reuters.md), and [interactive brokers](../i/interactive_brokers.md) [offer](../o/offer.md) comprehensive data solutions. ### Trading Strategies @@ -136,4 +136,4 @@ Algorithmic traders often use real-time data feeds and historical data for back- ## Conclusion -The Russell 2000 [Index](../i/index.md) offers invaluable insights into the performance of small-cap [stocks](../s/stock.md) and serves as a crucial [benchmark](../b/benchmark.md) for investors seeking exposure to this segment of the [market](../m/market.md). With a wide [range](../r/range.md) of investment vehicles, including ETFs, mutual funds, and [derivatives](../d/derivatives.md), it provides [multiple](../m/multiple.md) avenues for both individual and institutional investors. Additionally, the [index](../i/index.md) plays a significant role in [economic forecasting](../e/economic_forecasting.md) and [portfolio diversification](../p/portfolio_diversification.md), making it an essential tool for traders and investors alike. \ No newline at end of file +The Russell 2000 [Index](../i/index_instrument.md) offers invaluable insights into the performance of small-cap [stocks](../s/stock.md) and serves as a crucial [benchmark](../b/benchmark.md) for investors seeking exposure to this segment of the [market](../m/market.md). With a wide [range](../r/range.md) of investment vehicles, including ETFs, mutual funds, and [derivatives](../d/derivatives.md), it provides [multiple](../m/multiple.md) avenues for both individual and institutional investors. Additionally, the [index](../i/index_instrument.md) plays a significant role in [economic forecasting](../e/economic_forecasting.md) and [portfolio diversification](../p/portfolio_diversification.md), making it an essential tool for traders and investors alike. \ No newline at end of file diff --git a/en/pedia/r/russell_2000_index_strategies.md b/en/pedia/r/russell_2000_index_strategies.md index 96476c49..202fc49f 100644 --- a/en/pedia/r/russell_2000_index_strategies.md +++ b/en/pedia/r/russell_2000_index_strategies.md @@ -4,12 +4,12 @@ The [Russell 2000 Index](../r/russell_2000_index.md) is a [benchmark](../b/benchmark.md) for small-cap [stocks](../s/stock.md) in the United States. It represents the bottom 2,000 [stocks](../s/stock.md) in the [Russell 3000 Index](../r/russell_3000_index.md). The Russell 2000 is widely used as a barometer for the performance of smaller, less-capitalized companies in contrast to the larger companies included in S&P 500. Trading and investment strategies based on the [Russell 2000 Index](../r/russell_2000_index.md) require a deep understanding of the specific behaviors and characteristics of small-cap [stocks](../s/stock.md), [market dynamics](../m/market_dynamics.md), and economic influences. ### Understanding the Russell 2000 Index -The [Russell 2000 Index](../r/russell_2000_index.md) is maintained by [FTSE Russell](../f/ftse_russell.md), a subsidiary of the London Stock [Exchange](../e/exchange.md) Group (LSEG). The [index](../i/index.md) is known for its large, diversified [holdings](../h/holdings.md) across a wide array of industries, [offering](../o/offering.md) a comprehensive picture of the small-cap sector. Importantly, the [stocks](../s/stock.md) included in the Russell 2000 are typically more volatile and have higher growth potential compared to their large-cap counterparts. +The [Russell 2000 Index](../r/russell_2000_index.md) is maintained by [FTSE Russell](../f/ftse_russell.md), a subsidiary of the London Stock [Exchange](../e/exchange.md) Group (LSEG). The [index](../i/index_instrument.md) is known for its large, diversified [holdings](../h/holdings.md) across a wide array of industries, [offering](../o/offering.md) a comprehensive picture of the small-cap sector. Importantly, the [stocks](../s/stock.md) included in the Russell 2000 are typically more volatile and have higher growth potential compared to their large-cap counterparts. For more detailed information and current listings, the [Russell 2000 Index](../r/russell_2000_index.md) details can be found [here](https://www.ftserussell.com/products/indices/russell-us). ### Characteristics of the Russell 2000 Index -1. **Sector [Diversification](../d/diversification.md):** The [index](../i/index.md) includes a balanced representation of various sectors such as healthcare, financial services, technology, and consumer discretionary. +1. **Sector [Diversification](../d/diversification.md):** The [index](../i/index_instrument.md) includes a balanced representation of various sectors such as healthcare, financial services, technology, and consumer discretionary. 2. **[Volatility](../v/volatility.md):** Small-cap [stocks](../s/stock.md) are generally more volatile. This [volatility](../v/volatility.md) can lead to higher risks but can also [offer](../o/offer.md) substantial rewards. 3. **[Liquidity](../l/liquidity.md):** [Stocks](../s/stock.md) in the Russell 2000 tend to have lower [liquidity](../l/liquidity.md) compared to larger-cap [stocks](../s/stock.md), which can influence [trading strategies](../t/trading_strategies.md). 4. **Growth Potential:** Many of the companies in the Russell 2000 are on growth trajectories, making them attractive for growth-focused investors. @@ -18,18 +18,18 @@ For more detailed information and current listings, the [Russell 2000 Index](../ [Algorithmic trading](../a/algorithmic_trading.md), or “algotrading,” involves using complex algorithms to [trade](../t/trade.md) financial instruments. Here are some strategies used specifically for trading the [Russell 2000 Index](../r/russell_2000_index.md): #### 1. Mean Reversion Strategy -This strategy is based on the idea that [asset](../a/asset.md) prices [will](../w/will.md) revert to their historical mean over time. When an [asset](../a/asset.md) moves significantly away from its historical average price, it can be expected to revert back. For the Russell 2000, this might involve monitoring the overall [index](../i/index.md) level or specific constituent [stocks](../s/stock.md). +This strategy is based on the idea that [asset](../a/asset.md) prices [will](../w/will.md) revert to their historical mean over time. When an [asset](../a/asset.md) moves significantly away from its historical average price, it can be expected to revert back. For the Russell 2000, this might involve monitoring the overall [index](../i/index_instrument.md) level or specific constituent [stocks](../s/stock.md). **Steps:** - Identify historical average prices. -- Use statistical analysis to determine when a stock or the [index](../i/index.md) is significantly above or below its mean level. +- Use statistical analysis to determine when a stock or the [index](../i/index_instrument.md) is significantly above or below its mean level. - Develop algorithms to buy [stocks](../s/stock.md) or [derivatives](../d/derivatives.md) when they are below the mean and sell when they are above the mean. #### 2. Momentum Trading [Momentum trading](../m/momentum_trading.md) strategies focus on [stocks](../s/stock.md) or indices that are trending sharply in one direction. This involves buying [stocks](../s/stock.md) that have shown upward [price momentum](../p/price_momentum.md) and selling those with downward [momentum](../m/momentum.md). **Steps:** -- Identify [momentum](../m/momentum.md) signals using [technical indicators](../t/technical_indicators.md) like Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), or simple moving averages. +- Identify [momentum](../m/momentum.md) signals using [technical indicators](../t/technical_indicators.md) like Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), or simple moving averages. - Develop algorithms to execute trades when [momentum indicators](../m/momentum_indicators.md) show strong buy or sell signals. - Apply [risk management](../r/risk_management.md) techniques to limit exposure to sudden reversals. @@ -42,7 +42,7 @@ This strategy is based on the idea that [asset](../a/asset.md) prices [will](../ - Execute trades when the price spread between the two [stocks](../s/stock.md) diverges from the historical norm, betting that the prices [will](../w/will.md) converge again. #### 4. Statistical Arbitrage -This strategy involves using statistical models to identify mispricings between a stock and its [underlying](../u/underlying.md) [index](../i/index.md) or other related assets. +This strategy involves using statistical models to identify mispricings between a stock and its [underlying](../u/underlying.md) [index](../i/index_instrument.md) or other related assets. **Steps:** - Develop complex statistical models to identify [arbitrage](../a/arbitrage.md) opportunities. diff --git a/en/pedia/r/russell_3000_index.md b/en/pedia/r/russell_3000_index.md index 69df3b42..8c64312e 100644 --- a/en/pedia/r/russell_3000_index.md +++ b/en/pedia/r/russell_3000_index.md @@ -1,65 +1,65 @@ # Russell 3000 Index -The Russell 3000 [Index](../i/index.md) is a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [equity](../e/equity.md) [index](../i/index.md) that provides a comprehensive representation of the entire United States [stock market](../s/stock_market.md). The [index](../i/index.md) measures the performance of the 3,000 largest publicly traded companies in the United States, which together represent approximately 98% of the investable U.S. [equity market](../e/equity_market.md). Given its broad [scope](../s/scope.md), the Russell 3000 [Index](../i/index.md) serves as a foundational [benchmark](../b/benchmark.md) for investors wishing to gauge the general [market](../m/market.md) performance of U.S. [stocks](../s/stock.md). +The Russell 3000 [Index](../i/index_instrument.md) is a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [equity](../e/equity.md) [index](../i/index_instrument.md) that provides a comprehensive representation of the entire United States [stock market](../s/stock_market.md). The [index](../i/index_instrument.md) measures the performance of the 3,000 largest publicly traded companies in the United States, which together represent approximately 98% of the investable U.S. [equity market](../e/equity_market.md). Given its broad [scope](../s/scope.md), the Russell 3000 [Index](../i/index_instrument.md) serves as a foundational [benchmark](../b/benchmark.md) for investors wishing to gauge the general [market](../m/market.md) performance of U.S. [stocks](../s/stock.md). ## Components and Structure -The Russell 3000 [Index](../i/index.md) is divided into two sub-indices: -1. **[Russell 1000 Index](../r/russell_1000_index.md)**: This subset includes the 1,000 largest companies by [market capitalization](../m/market_capitalization.md), representing approximately 92% of the Russell 3000 [Index](../i/index.md)'s total [market](../m/market.md) cap. -2. **[Russell 2000 Index](../r/russell_2000_index.md)**: Comprising the remaining 2,000 smaller companies, the [Russell 2000 Index](../r/russell_2000_index.md) represents about 8% of the total [market](../m/market.md) cap of the Russell 3000 [Index](../i/index.md). +The Russell 3000 [Index](../i/index_instrument.md) is divided into two sub-indices: +1. **[Russell 1000 Index](../r/russell_1000_index.md)**: This subset includes the 1,000 largest companies by [market capitalization](../m/market_capitalization.md), representing approximately 92% of the Russell 3000 [Index](../i/index_instrument.md)'s total [market](../m/market.md) cap. +2. **[Russell 2000 Index](../r/russell_2000_index.md)**: Comprising the remaining 2,000 smaller companies, the [Russell 2000 Index](../r/russell_2000_index.md) represents about 8% of the total [market](../m/market.md) cap of the Russell 3000 [Index](../i/index_instrument.md). ### Market Capitalization Weighting -The Russell 3000 [Index](../i/index.md) uses [market capitalization](../m/market_capitalization.md) weighting, meaning each company's weight in the [index](../i/index.md) is proportional to its [market](../m/market.md) cap relative to the total [market](../m/market.md) cap of all companies in the [index](../i/index.md). This weighting approach ensures that larger companies have a more significant impact on the [index](../i/index.md)'s performance than smaller companies. +The Russell 3000 [Index](../i/index_instrument.md) uses [market capitalization](../m/market_capitalization.md) weighting, meaning each company's weight in the [index](../i/index_instrument.md) is proportional to its [market](../m/market.md) cap relative to the total [market](../m/market.md) cap of all companies in the [index](../i/index_instrument.md). This weighting approach ensures that larger companies have a more significant impact on the [index](../i/index_instrument.md)'s performance than smaller companies. ## Eligibility Criteria ### Market Capitalization -To be included in the Russell 3000 [Index](../i/index.md), a company's [market capitalization](../m/market_capitalization.md) must fall within the 3,000 largest publicly traded companies in the U.S. [Market](../m/market.md) cap is calculated as the stock price multiplied by the total number of outstanding [shares](../s/shares.md). +To be included in the Russell 3000 [Index](../i/index_instrument.md), a company's [market capitalization](../m/market_capitalization.md) must fall within the 3,000 largest publicly traded companies in the U.S. [Market](../m/market.md) cap is calculated as the stock price multiplied by the total number of outstanding [shares](../s/shares.md). ### Trading Volume -Companies must meet minimum [liquidity](../l/liquidity.md) requirements, typically measured by average daily trading [volume](../v/volume.md). This criterion ensures that the companies included in the [index](../i/index.md) can be easily traded. +Companies must meet minimum [liquidity](../l/liquidity.md) requirements, typically measured by average daily trading [volume](../v/volume.md). This criterion ensures that the companies included in the [index](../i/index_instrument.md) can be easily traded. ### Free Float Adjustment -The [index](../i/index.md) includes only the free-[float](../f/float.md) [market capitalization](../m/market_capitalization.md), which excludes [shares](../s/shares.md) that are closely held by insiders, founders, or the government. This adjustment reflects the portion of [shares](../s/shares.md) readily available for trading. +The [index](../i/index_instrument.md) includes only the free-[float](../f/float.md) [market capitalization](../m/market_capitalization.md), which excludes [shares](../s/shares.md) that are closely held by insiders, founders, or the government. This adjustment reflects the portion of [shares](../s/shares.md) readily available for trading. ## Importance and Uses ### Benchmark for Mutual Funds and ETFs -The Russell 3000 [Index](../i/index.md) serves as a [benchmark](../b/benchmark.md) for a significant number of mutual funds and [exchange](../e/exchange.md)-traded funds (ETFs). Investors frequently use these investment vehicles to [gain](../g/gain.md) diversified exposure to the U.S. [equity market](../e/equity_market.md). +The Russell 3000 [Index](../i/index_instrument.md) serves as a [benchmark](../b/benchmark.md) for a significant number of mutual funds and [exchange](../e/exchange.md)-traded funds (ETFs). Investors frequently use these investment vehicles to [gain](../g/gain.md) diversified exposure to the U.S. [equity market](../e/equity_market.md). ### Performance Measurement -Given its broad representation of the U.S. [equity market](../e/equity_market.md), the Russell 3000 [Index](../i/index.md) is widely used to measure the performance of investment portfolios. Comparing a portfolio's returns against the Russell 3000 [Index](../i/index.md) can provide insights into how well the portfolio is performing relative to the [market](../m/market.md). +Given its broad representation of the U.S. [equity market](../e/equity_market.md), the Russell 3000 [Index](../i/index_instrument.md) is widely used to measure the performance of investment portfolios. Comparing a portfolio's returns against the Russell 3000 [Index](../i/index_instrument.md) can provide insights into how well the portfolio is performing relative to the [market](../m/market.md). ### Market Sentiment Indicator -As a comprehensive gauge of the U.S. [equity market](../e/equity_market.md), the Russell 3000 [Index](../i/index.md) is often used as an [indicator](../i/indicator.md) of overall [market sentiment](../m/market_sentiment.md). A rising [index](../i/index.md) generally suggests a bullish [market sentiment](../m/market_sentiment.md), while a falling [index](../i/index.md) may indicate bearish sentiment. +As a comprehensive gauge of the U.S. [equity market](../e/equity_market.md), the Russell 3000 [Index](../i/index_instrument.md) is often used as an [indicator](../i/indicator.md) of overall [market sentiment](../m/market_sentiment.md). A rising [index](../i/index_instrument.md) generally suggests a bullish [market sentiment](../m/market_sentiment.md), while a falling [index](../i/index_instrument.md) may indicate bearish sentiment. ## Annual Reconstitution -One unique aspect of the Russell 3000 [Index](../i/index.md) is its annual reconstitution. Every June, the [index](../i/index.md) is rebalanced to reflect changes in the [market capitalization](../m/market_capitalization.md) of its constituent companies. This process involves adding new companies that have grown in [market](../m/market.md) cap to be among the top 3,000 and removing those that no longer meet the criteria. +One unique aspect of the Russell 3000 [Index](../i/index_instrument.md) is its annual reconstitution. Every June, the [index](../i/index_instrument.md) is rebalanced to reflect changes in the [market capitalization](../m/market_capitalization.md) of its constituent companies. This process involves adding new companies that have grown in [market](../m/market.md) cap to be among the top 3,000 and removing those that no longer meet the criteria. ### Impact of Reconstitution -The reconstitution event can lead to significant trading activity as [index](../i/index.md) funds and ETFs adjust their [holdings](../h/holdings.md) to reflect the new composition of the [index](../i/index.md). This [rebalancing](../r/rebalancing.md) can also have a noticeable impact on the stock prices of companies being added or removed from the [index](../i/index.md). +The reconstitution event can lead to significant trading activity as [index](../i/index_instrument.md) funds and ETFs adjust their [holdings](../h/holdings.md) to reflect the new composition of the [index](../i/index_instrument.md). This [rebalancing](../r/rebalancing.md) can also have a noticeable impact on the stock prices of companies being added or removed from the [index](../i/index_instrument.md). ## Historical Performance -The Russell 3000 [Index](../i/index.md) has generally shown [robust](../r/robust.md) performance over the long term, reflecting the growth of the U.S. [economy](../e/economy.md). Since its inception in 1984, the [index](../i/index.md) has experienced several periods of both gains and declines, often mirroring [economic cycles](../e/economic_cycles.md), technological advances, and major geopolitical events. +The Russell 3000 [Index](../i/index_instrument.md) has generally shown [robust](../r/robust.md) performance over the long term, reflecting the growth of the U.S. [economy](../e/economy.md). Since its inception in 1984, the [index](../i/index_instrument.md) has experienced several periods of both gains and declines, often mirroring [economic cycles](../e/economic_cycles.md), technological advances, and major geopolitical events. ### Long-Term Trends -Over [multiple](../m/multiple.md) decades, the Russell 3000 [Index](../i/index.md) has trended upward, driven by [economic growth](../e/economic_growth.md), corporate [earnings](../e/earnings.md), and innovation. This long-term growth makes it a valuable tool for investors with a long-term [investment horizon](../i/investment_horizon.md). +Over [multiple](../m/multiple.md) decades, the Russell 3000 [Index](../i/index_instrument.md) has trended upward, driven by [economic growth](../e/economic_growth.md), corporate [earnings](../e/earnings.md), and innovation. This long-term growth makes it a valuable tool for investors with a long-term [investment horizon](../i/investment_horizon.md). ### Short-Term Volatility -Like all [equity](../e/equity.md) indices, the Russell 3000 [Index](../i/index.md) is subject to short-term [volatility](../v/volatility.md). Economic reports, [interest rate](../i/interest_rate.md) changes, and global events can cause fluctuations in the [index](../i/index.md)'s [value](../v/value.md). +Like all [equity](../e/equity.md) indices, the Russell 3000 [Index](../i/index_instrument.md) is subject to short-term [volatility](../v/volatility.md). Economic reports, [interest rate](../i/interest_rate.md) changes, and global events can cause fluctuations in the [index](../i/index_instrument.md)'s [value](../v/value.md). ## Future Outlook -As the U.S. [economy](../e/economy.md) continues to evolve, the composition and performance of the Russell 3000 [Index](../i/index.md) are likely to change. Emerging industries, technological advancements, and demographic shifts [will](../w/will.md) play crucial roles in shaping the future landscape of the [index](../i/index.md). +As the U.S. [economy](../e/economy.md) continues to evolve, the composition and performance of the Russell 3000 [Index](../i/index_instrument.md) are likely to change. Emerging industries, technological advancements, and demographic shifts [will](../w/will.md) play crucial roles in shaping the future landscape of the [index](../i/index_instrument.md). ### Potential Trends -1. **Technology and Innovation**: Sectors such as technology, biotechnology, and renewable energy are likely to become more prominent within the [index](../i/index.md). -2. **Sustainability**: As environmental, social, and governance (ESG) criteria become increasingly important to investors, companies with strong ESG practices may [gain](../g/gain.md) greater representation in the [index](../i/index.md). -3. **Economic Shifts**: Changes in the U.S. [economy](../e/economy.md), such as shifts in consumer behavior and [manufacturing](../m/manufacturing.md) trends, [will](../w/will.md) influence the [market capitalization](../m/market_capitalization.md) of [index](../i/index.md) constituents. +1. **Technology and Innovation**: Sectors such as technology, biotechnology, and renewable energy are likely to become more prominent within the [index](../i/index_instrument.md). +2. **Sustainability**: As environmental, social, and governance (ESG) criteria become increasingly important to investors, companies with strong ESG practices may [gain](../g/gain.md) greater representation in the [index](../i/index_instrument.md). +3. **Economic Shifts**: Changes in the U.S. [economy](../e/economy.md), such as shifts in consumer behavior and [manufacturing](../m/manufacturing.md) trends, [will](../w/will.md) influence the [market capitalization](../m/market_capitalization.md) of [index](../i/index_instrument.md) constituents. ## Conclusion -The Russell 3000 [Index](../i/index.md) is a fundamental tool for investors seeking broad exposure to the U.S. [equity market](../e/equity_market.md). Its comprehensive nature, annual reconstitution, and [market](../m/market.md)-cap-[weighted](../w/weighted.md) methodology make it a reliable [benchmark](../b/benchmark.md) for performance measurement and [market sentiment analysis](../m/market_sentiment_analysis.md). As the investment landscape continues to evolve, the Russell 3000 [Index](../i/index.md) [will](../w/will.md) remain a critical reference point for both individual and institutional investors. \ No newline at end of file +The Russell 3000 [Index](../i/index_instrument.md) is a fundamental tool for investors seeking broad exposure to the U.S. [equity market](../e/equity_market.md). Its comprehensive nature, annual reconstitution, and [market](../m/market.md)-cap-[weighted](../w/weighted.md) methodology make it a reliable [benchmark](../b/benchmark.md) for performance measurement and [market sentiment analysis](../m/market_sentiment_analysis.md). As the investment landscape continues to evolve, the Russell 3000 [Index](../i/index_instrument.md) [will](../w/will.md) remain a critical reference point for both individual and institutional investors. \ No newline at end of file diff --git a/en/pedia/r/russell_3000_index_strategies.md b/en/pedia/r/russell_3000_index_strategies.md index df3e1c62..763951b6 100644 --- a/en/pedia/r/russell_3000_index_strategies.md +++ b/en/pedia/r/russell_3000_index_strategies.md @@ -1,10 +1,10 @@ # Russell 3000 Index Strategies -The [Russell 3000 Index](../r/russell_3000_index.md) is a key [benchmark](../b/benchmark.md) of the performance of the 3,000 largest U.S.-traded [stocks](../s/stock.md), representing approximately 98% of all U.S.-incorporated [equity](../e/equity.md) securities. The [index](../i/index.md) serves as a critical tool for investors and [fund](../f/fund.md) managers, as it provides a broad perspective on the U.S. [stock market](../s/stock_market.md). This document delves into various [algorithmic trading](../a/algorithmic_trading.md) strategies specifically tailored for the [Russell 3000 Index](../r/russell_3000_index.md). +The [Russell 3000 Index](../r/russell_3000_index.md) is a key [benchmark](../b/benchmark.md) of the performance of the 3,000 largest U.S.-traded [stocks](../s/stock.md), representing approximately 98% of all U.S.-incorporated [equity](../e/equity.md) securities. The [index](../i/index_instrument.md) serves as a critical tool for investors and [fund](../f/fund.md) managers, as it provides a broad perspective on the U.S. [stock market](../s/stock_market.md). This document delves into various [algorithmic trading](../a/algorithmic_trading.md) strategies specifically tailored for the [Russell 3000 Index](../r/russell_3000_index.md). ## Understanding the Russell 3000 Index -The [Russell 3000 Index](../r/russell_3000_index.md) includes companies from diverse sectors and [market](../m/market.md) capitalizations. The [range](../r/range.md) covers [large-cap stocks](../l/large_cap_stocks.md), [mid-cap stocks](../m/mid-cap_stocks.md), and small-cap [stocks](../s/stock.md), providing a comprehensive overview of the [market](../m/market.md). These [stocks](../s/stock.md) are also a subset of the Russell 3000E [Index](../i/index.md), the broadest engineering [index](../i/index.md) for U.S. [stocks](../s/stock.md). +The [Russell 3000 Index](../r/russell_3000_index.md) includes companies from diverse sectors and [market](../m/market.md) capitalizations. The [range](../r/range.md) covers [large-cap stocks](../l/large_cap_stocks.md), [mid-cap stocks](../m/mid-cap_stocks.md), and small-cap [stocks](../s/stock.md), providing a comprehensive overview of the [market](../m/market.md). These [stocks](../s/stock.md) are also a subset of the Russell 3000E [Index](../i/index_instrument.md), the broadest engineering [index](../i/index_instrument.md) for U.S. [stocks](../s/stock.md). ## Components of the Russell 3000 Index @@ -14,10 +14,10 @@ The [Russell 3000 Index](../r/russell_3000_index.md) includes companies from div ## Importance for Algorithmic Trading -[Algorithmic trading](../a/algorithmic_trading.md) strategies can be particularly effective when applied to an [index](../i/index.md) like the Russell 3000 due to its diverse components and broad representation of the [market](../m/market.md). Here’s why it’s important: +[Algorithmic trading](../a/algorithmic_trading.md) strategies can be particularly effective when applied to an [index](../i/index_instrument.md) like the Russell 3000 due to its diverse components and broad representation of the [market](../m/market.md). Here’s why it’s important: 1. **[Liquidity](../l/liquidity.md):** [Stocks](../s/stock.md) in the Russell 3000 are generally highly [liquid](../l/liquid.md), allowing for efficient [trade](../t/trade.md) [execution](../e/execution.md). -2. **[Diversification](../d/diversification.md):** The diversity of the [index](../i/index.md) helps in spreading [risk](../r/risk.md) across different sectors and [market](../m/market.md) caps. -3. **[Market](../m/market.md) Representation:** The [index](../i/index.md)’s broad [market](../m/market.md) representation makes it a suitable [proxy](../p/proxy.md) for the U.S. [stock market](../s/stock_market.md). +2. **[Diversification](../d/diversification.md):** The diversity of the [index](../i/index_instrument.md) helps in spreading [risk](../r/risk.md) across different sectors and [market](../m/market.md) caps. +3. **[Market](../m/market.md) Representation:** The [index](../i/index_instrument.md)’s broad [market](../m/market.md) representation makes it a suitable [proxy](../p/proxy.md) for the U.S. [stock market](../s/stock_market.md). Let's explore some [algorithmic trading](../a/algorithmic_trading.md) strategies specifically tailored for the [Russell 3000 Index](../r/russell_3000_index.md). @@ -148,4 +148,4 @@ print(strategy_performance) ## Conclusion -The [Russell 3000 Index](../r/russell_3000_index.md) offers a fertile ground for various [algorithmic trading](../a/algorithmic_trading.md) strategies. From [momentum](../m/momentum.md) and mean-reversion to [arbitrage](../a/arbitrage.md) strategies, numerous approaches can be tailored to benefit from this richly diversified [index](../i/index.md). Combining these strategies with [robust](../r/robust.md) [risk management](../r/risk_management.md) techniques and leveraging advanced computational tools can significantly enhance the [trading performance](../t/trading_performance.md) on this broad [market](../m/market.md) gauge. +The [Russell 3000 Index](../r/russell_3000_index.md) offers a fertile ground for various [algorithmic trading](../a/algorithmic_trading.md) strategies. From [momentum](../m/momentum.md) and mean-reversion to [arbitrage](../a/arbitrage.md) strategies, numerous approaches can be tailored to benefit from this richly diversified [index](../i/index_instrument.md). Combining these strategies with [robust](../r/robust.md) [risk management](../r/risk_management.md) techniques and leveraging advanced computational tools can significantly enhance the [trading performance](../t/trading_performance.md) on this broad [market](../m/market.md) gauge. diff --git a/en/pedia/r/russell_index_analysis.md b/en/pedia/r/russell_index_analysis.md index b56a00a5..a447c176 100644 --- a/en/pedia/r/russell_index_analysis.md +++ b/en/pedia/r/russell_index_analysis.md @@ -7,17 +7,17 @@ The Russell Indexes are a family of U.S. [stock market](../s/stock_market.md) in ## Russell 3000 Index ### Overview -The [Russell 3000 Index](../r/russell_3000_index.md) is a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [equity](../e/equity.md) [index](../i/index.md) that encompasses the 3,000 largest U.S.-traded [stocks](../s/stock.md), representing approximately 98% of the investable U.S. [equity market](../e/equity_market.md). The [index](../i/index.md) aims to provide a comprehensive reflection of the broad [market](../m/market.md). +The [Russell 3000 Index](../r/russell_3000_index.md) is a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [equity](../e/equity.md) [index](../i/index_instrument.md) that encompasses the 3,000 largest U.S.-traded [stocks](../s/stock.md), representing approximately 98% of the investable U.S. [equity market](../e/equity_market.md). The [index](../i/index_instrument.md) aims to provide a comprehensive reflection of the broad [market](../m/market.md). ### Components and Weighting The Russell 3000 is subdivided into several sub-indices: 1. **[Russell 1000 Index](../r/russell_1000_index.md):** Includes the largest 1,000 companies. 2. **[Russell 2000 Index](../r/russell_2000_index.md):** Comprises the 2,000 smallest companies. -Each stock in the [Russell 3000 Index](../r/russell_3000_index.md) is [weighted](../w/weighted.md) by its [market capitalization](../m/market_capitalization.md). Large-cap companies have a more significant impact on the [index](../i/index.md)'s overall [value](../v/value.md) compared to smaller-cap firms. +Each stock in the [Russell 3000 Index](../r/russell_3000_index.md) is [weighted](../w/weighted.md) by its [market capitalization](../m/market_capitalization.md). Large-cap companies have a more significant impact on the [index](../i/index_instrument.md)'s overall [value](../v/value.md) compared to smaller-cap firms. ### Rebalancing -The Russell indexes undergo an annual [rebalancing](../r/rebalancing.md) in June, called the "Russell Reconstitution." This process captures changes in the [market](../m/market.md) capitalizations of its constituents and maintains the relevance of the [index](../i/index.md). +The Russell indexes undergo an annual [rebalancing](../r/rebalancing.md) in June, called the "Russell Reconstitution." This process captures changes in the [market](../m/market.md) capitalizations of its constituents and maintains the relevance of the [index](../i/index_instrument.md). ## Russell 1000 Index @@ -32,12 +32,12 @@ The [Russell 1000 Index](../r/russell_1000_index.md) is diversified across [mult - Consumer Discretionary - Industrials -[Large-cap stocks](../l/large_cap_stocks.md) like Apple, Microsoft, and Amazon are significant constituents of this [index](../i/index.md). +[Large-cap stocks](../l/large_cap_stocks.md) like Apple, Microsoft, and Amazon are significant constituents of this [index](../i/index_instrument.md). ## Russell 2000 Index ### Overview -The [Russell 2000 Index](../r/russell_2000_index.md) serves as a [benchmark](../b/benchmark.md) for small-cap [stocks](../s/stock.md). It includes the 2,000 smallest companies in the [Russell 3000 Index](../r/russell_3000_index.md). Given its composition, the Russell 2000 is a more volatile and growth-oriented [index](../i/index.md) than the Russell 1000. +The [Russell 2000 Index](../r/russell_2000_index.md) serves as a [benchmark](../b/benchmark.md) for small-cap [stocks](../s/stock.md). It includes the 2,000 smallest companies in the [Russell 3000 Index](../r/russell_3000_index.md). Given its composition, the Russell 2000 is a more volatile and growth-oriented [index](../i/index_instrument.md) than the Russell 1000. ### Investment Applications The Russell 2000 is frequently used as a [benchmark](../b/benchmark.md) for small-cap mutual funds and ETFs. Investors often look at the performance of the Russell 2000 to gauge the economic health of smaller U.S. companies. @@ -45,10 +45,10 @@ The Russell 2000 is frequently used as a [benchmark](../b/benchmark.md) for smal ## Russell Midcap Index ### Overview -The Russell Midcap [Index](../i/index.md) includes the smallest 800 companies in the [Russell 1000 Index](../r/russell_1000_index.md). It represents about 26% of the total [market capitalization](../m/market_capitalization.md) of the Russell 1000. The Russell Midcap provides insights into the [mid-cap](../m/mid-cap.md) segment of the U.S. [equity market](../e/equity_market.md). +The Russell Midcap [Index](../i/index_instrument.md) includes the smallest 800 companies in the [Russell 1000 Index](../r/russell_1000_index.md). It represents about 26% of the total [market capitalization](../m/market_capitalization.md) of the Russell 1000. The Russell Midcap provides insights into the [mid-cap](../m/mid-cap.md) segment of the U.S. [equity market](../e/equity_market.md). ### Market Characteristics -[Mid-cap stocks](../m/mid-cap_stocks.md) are often considered to [offer](../o/offer.md) a balance between the stability of [large-cap stocks](../l/large_cap_stocks.md) and the growth potential of small-cap [stocks](../s/stock.md). Companies in this [index](../i/index.md) are usually established and have higher growth prospects than large-cap firms. +[Mid-cap stocks](../m/mid-cap_stocks.md) are often considered to [offer](../o/offer.md) a balance between the stability of [large-cap stocks](../l/large_cap_stocks.md) and the growth potential of small-cap [stocks](../s/stock.md). Companies in this [index](../i/index_instrument.md) are usually established and have higher growth prospects than large-cap firms. ## Calculation Methodology @@ -61,7 +61,7 @@ The [FTSE Russell](../f/ftse_russell.md) team employs strict criteria for inclus ## Investment Strategies ### Passive Investment -Due to their broad [market exposure](../m/market_exposure.md), Russell indexes are frequently used in [passive investment strategies](../p/passive_investment_strategies.md), including [index](../i/index.md) mutual funds and ETFs. Major financial institutions [offer](../o/offer.md) Russell-[index](../i/index.md)-tracking products, allowing investors to [gain](../g/gain.md) diversified exposure to large-cap, [mid-cap](../m/mid-cap.md), and small-cap segments. +Due to their broad [market exposure](../m/market_exposure.md), Russell indexes are frequently used in [passive investment strategies](../p/passive_investment_strategies.md), including [index](../i/index_instrument.md) mutual funds and ETFs. Major financial institutions [offer](../o/offer.md) Russell-[index](../i/index_instrument.md)-tracking products, allowing investors to [gain](../g/gain.md) diversified exposure to large-cap, [mid-cap](../m/mid-cap.md), and small-cap segments. ### Active Management While [passive investment strategies](../p/passive_investment_strategies.md) focus on replicating the performance of the Russell indexes, active managers may select securities based on [fundamental analysis](../f/fundamental_analysis.md) and [market](../m/market.md) conditions. The Russell 2000 is particularly popular among active managers due to its higher [volatility](../v/volatility.md) and potential for growth. diff --git a/en/pedia/r/russell_index_trading.md b/en/pedia/r/russell_index_trading.md index d1e5bda4..f0b574f7 100644 --- a/en/pedia/r/russell_index_trading.md +++ b/en/pedia/r/russell_index_trading.md @@ -1,11 +1,11 @@ # Russell Index Trading -The Russell [Index](../i/index.md) refers to the family of [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) stock indices managed by [FTSE Russell](../f/ftse_russell.md), a subsidiary of the London Stock [Exchange](../e/exchange.md) Group. These indices are designed to provide a comprehensive measure of the U.S. [equity market](../e/equity_market.md) and serve as benchmarks for investment strategies and performance measurement. Among the most well-known indices within the family are the Russell 1000, Russell 2000, and Russell 3000 indices. Each of these indices serves a distinct segment of the [market](../m/market.md), [offering](../o/offering.md) unique opportunities for traders and investors. +The Russell [Index](../i/index_instrument.md) refers to the family of [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) stock indices managed by [FTSE Russell](../f/ftse_russell.md), a subsidiary of the London Stock [Exchange](../e/exchange.md) Group. These indices are designed to provide a comprehensive measure of the U.S. [equity market](../e/equity_market.md) and serve as benchmarks for investment strategies and performance measurement. Among the most well-known indices within the family are the Russell 1000, Russell 2000, and Russell 3000 indices. Each of these indices serves a distinct segment of the [market](../m/market.md), [offering](../o/offering.md) unique opportunities for traders and investors. ## 1. Overview of the Russell Index Family ### Russell 1000 Index -The [Russell 1000 Index](../r/russell_1000_index.md) is a [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md) representing the largest 1,000 U.S. publicly traded companies. It accounts for approximately 92% of the total [market capitalization](../m/market_capitalization.md) of the U.S. [equity market](../e/equity_market.md). This [index](../i/index.md) is often used as a [benchmark](../b/benchmark.md) for [large-cap stocks](../l/large_cap_stocks.md), providing insights into the performance of major [industry](../i/industry.md) leaders. +The [Russell 1000 Index](../r/russell_1000_index.md) is a [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md) representing the largest 1,000 U.S. publicly traded companies. It accounts for approximately 92% of the total [market capitalization](../m/market_capitalization.md) of the U.S. [equity market](../e/equity_market.md). This [index](../i/index_instrument.md) is often used as a [benchmark](../b/benchmark.md) for [large-cap stocks](../l/large_cap_stocks.md), providing insights into the performance of major [industry](../i/industry.md) leaders. ### Russell 2000 Index The [Russell 2000 Index](../r/russell_2000_index.md), on the other hand, focuses on the 2,000 smallest [stocks](../s/stock.md) in the [Russell 3000 Index](../r/russell_3000_index.md). It serves as a [benchmark](../b/benchmark.md) for small-cap [stocks](../s/stock.md) and is widely regarded as a key [indicator](../i/indicator.md) of the performance of smaller U.S. companies. Due to the higher growth potential and [risk](../r/risk.md) associated with small-cap [stocks](../s/stock.md), the [Russell 2000 Index](../r/russell_2000_index.md) is closely watched by traders and investors seeking to capture investment opportunities in this segment of the [market](../m/market.md). @@ -15,10 +15,10 @@ The [Russell 3000 Index](../r/russell_3000_index.md) encompasses the largest 3,0 ## 2. Russell Index Methodology -The [FTSE Russell](../f/ftse_russell.md) [index](../i/index.md) methodology involves a systematic and transparent process for selecting and maintaining the indices. Below are key components of the methodology: +The [FTSE Russell](../f/ftse_russell.md) [index](../i/index_instrument.md) methodology involves a systematic and transparent process for selecting and maintaining the indices. Below are key components of the methodology: ### Market Capitalization -All Russell indices are [weighted](../w/weighted.md) by [market capitalization](../m/market_capitalization.md), meaning each stock's weight in the [index](../i/index.md) is proportional to its total [market value](../m/market_value.md). This method ensures that larger companies have a greater impact on the [index](../i/index.md)'s performance. +All Russell indices are [weighted](../w/weighted.md) by [market capitalization](../m/market_capitalization.md), meaning each stock's weight in the [index](../i/index_instrument.md) is proportional to its total [market value](../m/market_value.md). This method ensures that larger companies have a greater impact on the [index](../i/index_instrument.md)'s performance. ### Reconstitution Russell indices undergo an annual reconstitution process, during which the composition of the indices is reviewed and updated to ensure they accurately reflect the [market](../m/market.md). Reconstitution typically involves adding new companies that have grown in [market value](../m/market_value.md) and removing companies that no longer meet the criteria. @@ -50,7 +50,7 @@ ETFs that track Russell indices, such as the [iShares](../i/ishares.md) Russell ## 5. Strategies for Trading Russell Indices ### Index Arbitrage -[Index](../i/index.md) [arbitrage](../a/arbitrage.md) involves taking advantage of price discrepancies between the stock components of the [index](../i/index.md) and the [index futures](../i/index_futures.md) or ETFs. Traders seek to [profit](../p/profit.md) from the price convergence between these related instruments. +[Index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) involves taking advantage of price discrepancies between the stock components of the [index](../i/index_instrument.md) and the [index futures](../i/index_futures.md) or ETFs. Traders seek to [profit](../p/profit.md) from the price convergence between these related instruments. ### Sector Rotation Given the diverse sector composition of the Russell indices, [sector rotation](../s/sector_rotation.md) strategies can be employed. This involves shifting investments among different sectors based on macroeconomic trends, [sector performance](../s/sector_performance.md), and [market](../m/market.md) conditions. @@ -71,4 +71,4 @@ While the [Russell 1000 Index](../r/russell_1000_index.md) constituents are gene ## 7. Conclusion -Russell [index](../i/index.md) trading offers a [range](../r/range.md) of opportunities for both investors and traders, from gaining broad [market exposure](../m/market_exposure.md) to engaging in sophisticated [trading strategies](../t/trading_strategies.md). The indices' comprehensive coverage of the U.S. [equity market](../e/equity_market.md), combined with the availability of various financial products, make them valuable tools in the [financial markets](../f/financial_market.md). However, it is important to be aware of the risks and challenges associated with trading these indices and to employ appropriate [risk management](../r/risk_management.md) techniques. For more information on Russell indices, visit the [FTSE Russell](../f/ftse_russell.md) [website](https://www.ftserussell.com/). \ No newline at end of file +Russell [index](../i/index_instrument.md) trading offers a [range](../r/range.md) of opportunities for both investors and traders, from gaining broad [market exposure](../m/market_exposure.md) to engaging in sophisticated [trading strategies](../t/trading_strategies.md). The indices' comprehensive coverage of the U.S. [equity market](../e/equity_market.md), combined with the availability of various financial products, make them valuable tools in the [financial markets](../f/financial_market.md). However, it is important to be aware of the risks and challenges associated with trading these indices and to employ appropriate [risk management](../r/risk_management.md) techniques. For more information on Russell indices, visit the [FTSE Russell](../f/ftse_russell.md) [website](https://www.ftserussell.com/). \ No newline at end of file diff --git a/en/pedia/s/s&p_500_dividend_aristocrats_index.md b/en/pedia/s/s&p_500_dividend_aristocrats_index.md index 07deb8ae..cdb58b4e 100644 --- a/en/pedia/s/s&p_500_dividend_aristocrats_index.md +++ b/en/pedia/s/s&p_500_dividend_aristocrats_index.md @@ -1,38 +1,38 @@ # S&P 500 Dividend Aristocrats Index -The S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index.md) is a subset of the broader S&P 500 [index](../i/index.md) that includes companies known for their consistent and growing [dividend](../d/dividend.md) payouts over time. This [index](../i/index.md) is particularly significant for investors seeking reliable [dividend](../d/dividend.md) [income](../i/income.md) and long-term [capital](../c/capital.md) appreciation. The following detailed description covers various aspects of the [index](../i/index.md), from its definition and history to its methodology, components, and investment strategies. +The S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index_instrument.md) is a subset of the broader S&P 500 [index](../i/index_instrument.md) that includes companies known for their consistent and growing [dividend](../d/dividend.md) payouts over time. This [index](../i/index_instrument.md) is particularly significant for investors seeking reliable [dividend](../d/dividend.md) [income](../i/income.md) and long-term [capital](../c/capital.md) appreciation. The following detailed description covers various aspects of the [index](../i/index_instrument.md), from its definition and history to its methodology, components, and investment strategies. ## Definition -The S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index.md) comprises companies in the S&P 500 that have increased their dividends for at least 25 consecutive years. These companies are considered to be high-quality, blue-chip [stocks](../s/stock.md) with a proven track record of financial stability and [shareholder](../s/shareholder.md)-friendly policies. The [index](../i/index.md) aims to measure the performance of these [dividend](../d/dividend.md)-growing companies and is utilized by investors looking to focus on [income](../i/income.md)-generating [stocks](../s/stock.md) with growth potential. +The S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index_instrument.md) comprises companies in the S&P 500 that have increased their dividends for at least 25 consecutive years. These companies are considered to be high-quality, blue-chip [stocks](../s/stock.md) with a proven track record of financial stability and [shareholder](../s/shareholder.md)-friendly policies. The [index](../i/index_instrument.md) aims to measure the performance of these [dividend](../d/dividend.md)-growing companies and is utilized by investors looking to focus on [income](../i/income.md)-generating [stocks](../s/stock.md) with growth potential. ## Historical Background -The concept of the [Dividend](../d/dividend.md) Aristocrats was first introduced by S&P Dow Jones Indices to highlight companies with exemplary [dividend](../d/dividend.md) policies. Over time, the [index](../i/index.md) has gained popularity among [income](../i/income.md)-focused investors and has been used as a [benchmark](../b/benchmark.md) for investment products such as mutual funds and [exchange](../e/exchange.md)-traded funds (ETFs). The [index](../i/index.md)'s inception date is May 2, 2005, reflecting the growing [interest](../i/interest.md) in [dividend](../d/dividend.md) [investing](../i/investing.md). +The concept of the [Dividend](../d/dividend.md) Aristocrats was first introduced by S&P Dow Jones Indices to highlight companies with exemplary [dividend](../d/dividend.md) policies. Over time, the [index](../i/index_instrument.md) has gained popularity among [income](../i/income.md)-focused investors and has been used as a [benchmark](../b/benchmark.md) for investment products such as mutual funds and [exchange](../e/exchange.md)-traded funds (ETFs). The [index](../i/index_instrument.md)'s inception date is May 2, 2005, reflecting the growing [interest](../i/interest.md) in [dividend](../d/dividend.md) [investing](../i/investing.md). ## Index Methodology -The methodology for the S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index.md) involves several critical criteria to ensure that only the highest quality companies are included. Here's an overview of the key components of the methodology: +The methodology for the S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index_instrument.md) involves several critical criteria to ensure that only the highest quality companies are included. Here's an overview of the key components of the methodology: 1. **Eligibility Criteria:** - **[Dividend](../d/dividend.md) Growth:** Companies must have increased their dividends each year for at least 25 consecutive years. - - **S&P 500 Membership:** Companies must be members of the S&P 500 [index](../i/index.md). + - **S&P 500 Membership:** Companies must be members of the S&P 500 [index](../i/index_instrument.md). - **[Market Capitalization](../m/market_capitalization.md):** A minimum unadjusted [market capitalization](../m/market_capitalization.md) of $3 billion. - **[Liquidity](../l/liquidity.md):** An average daily trading [volume](../v/volume.md) of at least $5 million over the past three months. 2. **[Index Construction](../i/index_construction.md):** - - **[Quarterly Rebalancing](../q/quarterly_rebalancing.md):** The [index](../i/index.md) is rebalanced quarterly to ensure that the constituents meet the eligibility criteria. - - **Equal Weighting:** Unlike the [market](../m/market.md)-cap-[weighted](../w/weighted.md) S&P 500, the [Dividend](../d/dividend.md) Aristocrats [Index](../i/index.md) employs an equal-weighting methodology. Each constituent is given an [equal weight](../e/equal_weight.md) to reduce the impact of any single company on the overall [index](../i/index.md) performance. + - **[Quarterly Rebalancing](../q/quarterly_rebalancing.md):** The [index](../i/index_instrument.md) is rebalanced quarterly to ensure that the constituents meet the eligibility criteria. + - **Equal Weighting:** Unlike the [market](../m/market.md)-cap-[weighted](../w/weighted.md) S&P 500, the [Dividend](../d/dividend.md) Aristocrats [Index](../i/index_instrument.md) employs an equal-weighting methodology. Each constituent is given an [equal weight](../e/equal_weight.md) to reduce the impact of any single company on the overall [index](../i/index_instrument.md) performance. 3. **Sector [Diversification](../d/diversification.md):** - - The [index](../i/index.md) seeks to maintain a diversified exposure across various sectors. To prevent any one sector from dominating the [index](../i/index.md), a sector cap is applied, limiting the weight of each sector. + - The [index](../i/index_instrument.md) seeks to maintain a diversified exposure across various sectors. To prevent any one sector from dominating the [index](../i/index_instrument.md), a sector cap is applied, limiting the weight of each sector. 4. **Reconstitution:** - - Annually, the [index](../i/index.md) undergoes reconstitution where new eligible companies are added, and those that no longer meet the criteria are removed. + - Annually, the [index](../i/index_instrument.md) undergoes reconstitution where new eligible companies are added, and those that no longer meet the criteria are removed. ## Components of the Index -The S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index.md) consists of a diverse [range](../r/range.md) of companies from different sectors, including [consumer staples](../c/consumer_staples.md), industrials, healthcare, and financials. Some of the well-known companies in the [index](../i/index.md) as of the latest revision include: +The S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index_instrument.md) consists of a diverse [range](../r/range.md) of companies from different sectors, including [consumer staples](../c/consumer_staples.md), industrials, healthcare, and financials. Some of the well-known companies in the [index](../i/index_instrument.md) as of the latest revision include: - **Procter & Gamble Co. (PG):** A leading [consumer goods](../c/consumer_goods.md) company known for its strong [dividend](../d/dividend.md) track record. - **Coca-Cola Co. (KO):** A global beverage giant with a history of consistent [dividend](../d/dividend.md) increases. @@ -44,9 +44,9 @@ The S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index.md) cons ### Dividend Growth Investing -[Dividend](../d/dividend.md) [Growth Investing](../g/growth_investing.md) (DGI) is a popular strategy that focuses on [investing](../i/investing.md) in companies with a history of increasing dividends. The S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index.md) is often used as a resource for identifying potential candidates for a DGI portfolio. By [investing](../i/investing.md) in [Dividend](../d/dividend.md) Aristocrats, investors aim to benefit from: +[Dividend](../d/dividend.md) [Growth Investing](../g/growth_investing.md) (DGI) is a popular strategy that focuses on [investing](../i/investing.md) in companies with a history of increasing dividends. The S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index_instrument.md) is often used as a resource for identifying potential candidates for a DGI portfolio. By [investing](../i/investing.md) in [Dividend](../d/dividend.md) Aristocrats, investors aim to benefit from: -- **Stable [Income](../i/income.md):** Companies in the [index](../i/index.md) provide a reliable and growing [income](../i/income.md) stream through dividends. +- **Stable [Income](../i/income.md):** Companies in the [index](../i/index_instrument.md) provide a reliable and growing [income](../i/income.md) stream through dividends. - **Lower [Volatility](../v/volatility.md):** [Dividend](../d/dividend.md)-paying [stocks](../s/stock.md) tend to be less volatile than non-[dividend](../d/dividend.md)-paying [stocks](../s/stock.md), [offering](../o/offering.md) a smoother investment experience. - **[Compounding](../c/compounding.md) Returns:** Reinvesting dividends can lead to [compounding](../c/compounding.md) returns over time, enhancing overall portfolio growth. @@ -56,9 +56,9 @@ Many [Dividend](../d/dividend.md) Aristocrats [offer](../o/offer.md) [Dividend R ### Exchange-Traded Funds (ETFs) -Several ETFs track the S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index.md), providing investors with an easy way to [gain](../g/gain.md) exposure to the [index](../i/index.md). Some popular ETFs include: +Several ETFs track the S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index_instrument.md), providing investors with an easy way to [gain](../g/gain.md) exposure to the [index](../i/index_instrument.md). Some popular ETFs include: -- **ProShares S&P 500 [Dividend](../d/dividend.md) Aristocrats ETF (NOBL):** This ETF aims to replicate the performance of the [Dividend](../d/dividend.md) Aristocrats [Index](../i/index.md). [Visit ProShares](https://www.proshares.com/funds/nobl.html) +- **ProShares S&P 500 [Dividend](../d/dividend.md) Aristocrats ETF (NOBL):** This ETF aims to replicate the performance of the [Dividend](../d/dividend.md) Aristocrats [Index](../i/index_instrument.md). [Visit ProShares](https://www.proshares.com/funds/nobl.html) - **SPDR S&P [Dividend](../d/dividend.md) ETF (SDY):** While not exclusively focused on the [Dividend](../d/dividend.md) Aristocrats, SDY invests in high-yielding, [dividend](../d/dividend.md)-paying companies from the S&P 1500. ### Total Return Approach @@ -69,7 +69,7 @@ Investors may also pursue a [total return](../t/total_return.md) approach by com ### Historical Performance -The S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index.md) has historically delivered strong performance, often outperforming the broader S&P 500 [index](../i/index.md), especially during [market](../m/market.md) downturns. The [index](../i/index.md)'s focus on high-quality, stable companies with consistent [dividend](../d/dividend.md) growth has contributed to its resilience. However, performance can vary based on [market](../m/market.md) conditions, [interest](../i/interest.md) rates, and sector-specific factors. +The S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index_instrument.md) has historically delivered strong performance, often outperforming the broader S&P 500 [index](../i/index_instrument.md), especially during [market](../m/market.md) downturns. The [index](../i/index_instrument.md)'s focus on high-quality, stable companies with consistent [dividend](../d/dividend.md) growth has contributed to its resilience. However, performance can vary based on [market](../m/market.md) conditions, [interest](../i/interest.md) rates, and sector-specific factors. ### Risk Profile @@ -79,7 +79,7 @@ The S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index.md) has ### Sector Concentration -While the [index](../i/index.md) aims to maintain sector [diversification](../d/diversification.md), certain sectors like [consumer staples](../c/consumer_staples.md) and industrials may be more heavily represented. This concentration exposes the [index](../i/index.md) to sector-specific risks, such as regulatory changes, [economic cycles](../e/economic_cycles.md), and [industry](../i/industry.md)-specific disruptions. +While the [index](../i/index_instrument.md) aims to maintain sector [diversification](../d/diversification.md), certain sectors like [consumer staples](../c/consumer_staples.md) and industrials may be more heavily represented. This concentration exposes the [index](../i/index_instrument.md) to sector-specific risks, such as regulatory changes, [economic cycles](../e/economic_cycles.md), and [industry](../i/industry.md)-specific disruptions. ### Interest Rate Risk @@ -87,35 +87,35 @@ While the [index](../i/index.md) aims to maintain sector [diversification](../d/ ### Dividend Yield vs. Dividend Growth -Investors should consider the [trade](../t/trade.md)-off between [dividend yield](../d/dividend_yield.md) and [dividend](../d/dividend.md) growth. While the [Dividend](../d/dividend.md) Aristocrats may not [offer](../o/offer.md) the highest [yield](../y/yield.md), their focus on [dividend](../d/dividend.md) growth can result in higher total returns over the long term. It is crucial to align investment objectives with the characteristics of the [index](../i/index.md). +Investors should consider the [trade](../t/trade.md)-off between [dividend yield](../d/dividend_yield.md) and [dividend](../d/dividend.md) growth. While the [Dividend](../d/dividend.md) Aristocrats may not [offer](../o/offer.md) the highest [yield](../y/yield.md), their focus on [dividend](../d/dividend.md) growth can result in higher total returns over the long term. It is crucial to align investment objectives with the characteristics of the [index](../i/index_instrument.md). ## Comparison with Other Dividend Indices ### S&P High Yield Dividend Aristocrats Index -The S&P High [Yield](../y/yield.md) [Dividend](../d/dividend.md) Aristocrats [Index](../i/index.md) includes companies from the S&P Composite 1500 that have increased dividends for at least 20 consecutive years. This [index](../i/index.md) may [offer](../o/offer.md) a higher [yield](../y/yield.md) than the S&P 500 [Dividend](../d/dividend.md) Aristocrats but with a slightly lower emphasis on [dividend](../d/dividend.md) growth consistency. +The S&P High [Yield](../y/yield.md) [Dividend](../d/dividend.md) Aristocrats [Index](../i/index_instrument.md) includes companies from the S&P Composite 1500 that have increased dividends for at least 20 consecutive years. This [index](../i/index_instrument.md) may [offer](../o/offer.md) a higher [yield](../y/yield.md) than the S&P 500 [Dividend](../d/dividend.md) Aristocrats but with a slightly lower emphasis on [dividend](../d/dividend.md) growth consistency. ### Dow Jones U.S. Select Dividend Index -The Dow Jones U.S. Select [Dividend](../d/dividend.md) [Index](../i/index.md) focuses on high-yielding U.S. [stocks](../s/stock.md) with a positive [dividend](../d/dividend.md)-per-share growth rate and [dividend](../d/dividend.md) [coverage ratio](../c/coverage_ratio.md). While this [index](../i/index.md) emphasizes [yield](../y/yield.md), it does not require the same length of [dividend](../d/dividend.md) growth history as the [Dividend](../d/dividend.md) Aristocrats, leading to different [risk](../r/risk.md) and [return](../r/return.md) characteristics. +The Dow Jones U.S. Select [Dividend](../d/dividend.md) [Index](../i/index_instrument.md) focuses on high-yielding U.S. [stocks](../s/stock.md) with a positive [dividend](../d/dividend.md)-per-share growth rate and [dividend](../d/dividend.md) [coverage ratio](../c/coverage_ratio.md). While this [index](../i/index_instrument.md) emphasizes [yield](../y/yield.md), it does not require the same length of [dividend](../d/dividend.md) growth history as the [Dividend](../d/dividend.md) Aristocrats, leading to different [risk](../r/risk.md) and [return](../r/return.md) characteristics. ### MSCI USA Dividend Masters Index -The MSCI USA [Dividend](../d/dividend.md) Masters [Index](../i/index.md) includes companies that have increased dividends for at least 10 consecutive years. This [index](../i/index.md) provides a broader set of [dividend](../d/dividend.md) [growth stocks](../g/growth_stocks.md), potentially including companies on their way to becoming [Dividend](../d/dividend.md) Aristocrats but with a shorter [dividend](../d/dividend.md) growth history. +The MSCI USA [Dividend](../d/dividend.md) Masters [Index](../i/index_instrument.md) includes companies that have increased dividends for at least 10 consecutive years. This [index](../i/index_instrument.md) provides a broader set of [dividend](../d/dividend.md) [growth stocks](../g/growth_stocks.md), potentially including companies on their way to becoming [Dividend](../d/dividend.md) Aristocrats but with a shorter [dividend](../d/dividend.md) growth history. ## How to Use the S&P 500 Dividend Aristocrats Index in an Investment Portfolio ### Core Equity Holding -The S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index.md) can serve as a core [equity](../e/equity.md) holding in a diversified investment portfolio. By focusing on high-quality companies with consistent [dividend](../d/dividend.md) growth, the [index](../i/index.md) provides a reliable [income](../i/income.md) stream and potential for [capital](../c/capital.md) appreciation. +The S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index_instrument.md) can serve as a core [equity](../e/equity.md) holding in a diversified investment portfolio. By focusing on high-quality companies with consistent [dividend](../d/dividend.md) growth, the [index](../i/index_instrument.md) provides a reliable [income](../i/income.md) stream and potential for [capital](../c/capital.md) appreciation. ### Income Focused Strategies -For [income](../i/income.md)-focused investors, the [Dividend](../d/dividend.md) Aristocrats can be a central component of a strategy aimed at generating a stable and growing [income](../i/income.md). These investors may prioritize [dividend yield](../d/dividend_yield.md) and growth potential, using the [index](../i/index.md) to identify [stocks](../s/stock.md) that meet their [income](../i/income.md) needs. +For [income](../i/income.md)-focused investors, the [Dividend](../d/dividend.md) Aristocrats can be a central component of a strategy aimed at generating a stable and growing [income](../i/income.md). These investors may prioritize [dividend yield](../d/dividend_yield.md) and growth potential, using the [index](../i/index_instrument.md) to identify [stocks](../s/stock.md) that meet their [income](../i/income.md) needs. ### Risk Management -Incorporating the S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index.md) can help manage portfolio [risk](../r/risk.md). The companies in the [index](../i/index.md) are typically more financially stable and less volatile than the broader [market](../m/market.md), [offering](../o/offering.md) a defensive strategy during [market](../m/market.md) downturns. +Incorporating the S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index_instrument.md) can help manage portfolio [risk](../r/risk.md). The companies in the [index](../i/index_instrument.md) are typically more financially stable and less volatile than the broader [market](../m/market.md), [offering](../o/offering.md) a defensive strategy during [market](../m/market.md) downturns. ### Complementing Growth Assets @@ -123,4 +123,4 @@ The [Dividend](../d/dividend.md) Aristocrats can [complement](../c/complement.md ## Conclusion -The S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index.md) represents a prestigious group of companies with a long-standing commitment to increasing dividends, reflecting financial stability and a [shareholder](../s/shareholder.md)-friendly approach. For investors seeking consistent [income](../i/income.md) and potential for [capital](../c/capital.md) appreciation, the [Dividend](../d/dividend.md) Aristocrats [offer](../o/offer.md) a compelling investment option. With its rigorous selection criteria, diversified composition, and strong historical performance, the [index](../i/index.md) remains a valuable tool for constructing resilient and [income](../i/income.md)-generating portfolios. Whether utilized as a core holding, for [income](../i/income.md) generation, or as part of a [balanced investment strategy](../b/balanced_investment_strategy.md), the S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index.md) exemplifies the virtues of disciplined [dividend](../d/dividend.md) [growth investing](../g/growth_investing.md). \ No newline at end of file +The S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index_instrument.md) represents a prestigious group of companies with a long-standing commitment to increasing dividends, reflecting financial stability and a [shareholder](../s/shareholder.md)-friendly approach. For investors seeking consistent [income](../i/income.md) and potential for [capital](../c/capital.md) appreciation, the [Dividend](../d/dividend.md) Aristocrats [offer](../o/offer.md) a compelling investment option. With its rigorous selection criteria, diversified composition, and strong historical performance, the [index](../i/index_instrument.md) remains a valuable tool for constructing resilient and [income](../i/income.md)-generating portfolios. Whether utilized as a core holding, for [income](../i/income.md) generation, or as part of a [balanced investment strategy](../b/balanced_investment_strategy.md), the S&P 500 [Dividend](../d/dividend.md) Aristocrats [Index](../i/index_instrument.md) exemplifies the virtues of disciplined [dividend](../d/dividend.md) [growth investing](../g/growth_investing.md). \ No newline at end of file diff --git a/en/pedia/s/s&p_500_index_(standard_&_poor's_500_index).md b/en/pedia/s/s&p_500_index_(standard_&_poor's_500_index).md index d9d5c596..c14c96aa 100644 --- a/en/pedia/s/s&p_500_index_(standard_&_poor's_500_index).md +++ b/en/pedia/s/s&p_500_index_(standard_&_poor's_500_index).md @@ -1,21 +1,21 @@ # S&P 500 Index (Standard & Poor's 500 Index) -The S&P 500 [Index](../i/index.md) (Standard & Poor's 500 [Index](../i/index.md)) is one of the most frequently used benchmarks for the overall performance of the U.S. [stock market](../s/stock_market.md). This choice of [benchmark](../b/benchmark.md) is due to its broad representation of the [market](../m/market.md), given that it includes 500 of the largest companies [listed](../l/listed.md) on stock exchanges in the United States. It is considered to capture approximately 80% of the available [market capitalization](../m/market_capitalization.md). +The S&P 500 [Index](../i/index_instrument.md) (Standard & Poor's 500 [Index](../i/index_instrument.md)) is one of the most frequently used benchmarks for the overall performance of the U.S. [stock market](../s/stock_market.md). This choice of [benchmark](../b/benchmark.md) is due to its broad representation of the [market](../m/market.md), given that it includes 500 of the largest companies [listed](../l/listed.md) on stock exchanges in the United States. It is considered to capture approximately 80% of the available [market capitalization](../m/market_capitalization.md). ## Historical Background ### Formation and Evolution -The S&P 500 [Index](../i/index.md) was introduced in 1957 by Standard & Poor's, which later became a division of McGraw-Hill. Over the years, what began as a simple stock [market index](../m/market_index.md) evolved into a cornerstone for [financial markets](../f/financial_market.md) globally. +The S&P 500 [Index](../i/index_instrument.md) was introduced in 1957 by Standard & Poor's, which later became a division of McGraw-Hill. Over the years, what began as a simple stock [market index](../m/market_index.md) evolved into a cornerstone for [financial markets](../f/financial_market.md) globally. ### Important Milestones The S&P 500 has undergone several changes to keep pace with the evolving [market](../m/market.md). Noteworthy milestones include: - **1982:** Introduction of S&P 500 [futures](../f/futures.md) by the Chicago Mercantile [Exchange](../e/exchange.md). -- **1993:** Introduction of SPDR S&P 500 ETF [Trust](../t/trust.md) (SPY), the first [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF) to track the S&P 500 [index](../i/index.md). +- **1993:** Introduction of SPDR S&P 500 ETF [Trust](../t/trust.md) (SPY), the first [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF) to track the S&P 500 [index](../i/index_instrument.md). - **2000s:** Inclusion of tech giants such as Google (Alphabet), Facebook, and others. ## Constituent Criteria -To be included in the S&P 500 [Index](../i/index.md), a company must meet several criteria. These criteria ensure that the [index](../i/index.md) remains representative of the broad U.S. [economy](../e/economy.md). +To be included in the S&P 500 [Index](../i/index_instrument.md), a company must meet several criteria. These criteria ensure that the [index](../i/index_instrument.md) remains representative of the broad U.S. [economy](../e/economy.md). ### Market Capitalization A company's [market capitalization](../m/market_capitalization.md) must be at least $8.2 billion as of 2021. The number is periodically adjusted for [market](../m/market.md) conditions. @@ -27,7 +27,7 @@ Companies must demonstrate financial viability, typically shown by four consecut A company’s [shares](../s/shares.md) must be highly [liquid](../l/liquid.md). This is generally assessed by examining trading [volume](../v/volume.md). Additionally, at least 50% of a company's [shares](../s/shares.md) must be available to the public (public [float](../f/float.md)). ### Domicile and Sector -The company must be domiciled in the United States. The [index](../i/index.md) aims for balanced representation across sectors, aligning with the Global [Industry](../i/industry.md) Classification Standard (GICS). +The company must be domiciled in the United States. The [index](../i/index_instrument.md) aims for balanced representation across sectors, aligning with the Global [Industry](../i/industry.md) Classification Standard (GICS). ### Corporate Governance Sound [corporate governance](../c/corporate_governance.md) and being [listed](../l/listed.md) on a recognized U.S. stock [exchange](../e/exchange.md) are also crucial factors. @@ -35,17 +35,17 @@ Sound [corporate governance](../c/corporate_governance.md) and being [listed](.. ## Index Calculation and Maintenance ### Calculation Method -The S&P 500 is a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md), meaning companies are [weighted](../w/weighted.md) according to their total [market capitalization](../m/market_capitalization.md). The [index](../i/index.md) [value](../v/value.md) is calculated as follows: +The S&P 500 is a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md), meaning companies are [weighted](../w/weighted.md) according to their total [market capitalization](../m/market_capitalization.md). The [index](../i/index_instrument.md) [value](../v/value.md) is calculated as follows: -\[ \text{[Index](../i/index.md) [Value](../v/value.md)} = \left( \frac{\sum_{i=1}^{N}\left( P_i \times Q_i \right)}{ \text{Divisor} } \right) \] +\[ \text{[Index](../i/index_instrument.md) [Value](../v/value.md)} = \left( \frac{\sum_{i=1}^{N}\left( P_i \times Q_i \right)}{ \text{Divisor} } \right) \] Where: - \( P_i \) is the price of stock \( i \). - \( Q_i \) is the adjusted [float](../f/float.md) of stock \( i \). -- The ``Divisor" is an adjustment [factor](../f/factor.md) tuned to keep the [index](../i/index.md) [value](../v/value.md) consistent despite changes like stock splits. +- The ``Divisor" is an adjustment [factor](../f/factor.md) tuned to keep the [index](../i/index_instrument.md) [value](../v/value.md) consistent despite changes like stock splits. ### Rebalancing and Updates -The [index](../i/index.md) is reviewed quarterly. Adjustments may occur due to corporate actions like mergers, acquisitions, and bankruptcies. Constituents are also replaced if a company's [market](../m/market.md) cap or [liquidity](../l/liquidity.md) falls below the required thresholds. +The [index](../i/index_instrument.md) is reviewed quarterly. Adjustments may occur due to corporate actions like mergers, acquisitions, and bankruptcies. Constituents are also replaced if a company's [market](../m/market.md) cap or [liquidity](../l/liquidity.md) falls below the required thresholds. ## Role in Financial Markets @@ -56,14 +56,14 @@ The S&P 500 serves as a [benchmark](../b/benchmark.md) for a multitude of invest [Futures](../f/futures.md), [options](../o/options.md), and other [financial derivatives](../f/financial_derivatives.md) tied to the S&P 500 are heavily used in [financial markets](../f/financial_market.md) to [hedge](../h/hedge.md) or speculate. Prominent [derivatives](../d/derivatives.md) include S&P 500 [futures](../f/futures.md) and [index options](../i/index_options.md). ### Economic Indicator -Given its diversified composition, the S&P 500 is a reliable [indicator](../i/indicator.md) of general [economic conditions](../e/economic_conditions.md). Rising or falling trends in the [index](../i/index.md) often reflect broader economic performance. +Given its diversified composition, the S&P 500 is a reliable [indicator](../i/indicator.md) of general [economic conditions](../e/economic_conditions.md). Rising or falling trends in the [index](../i/index_instrument.md) often reflect broader economic performance. ## Investment Strategies ### Passive and Active Investing -The S&P 500 [index](../i/index.md) has fostered various investment strategies: -- **[Passive Investing](../p/passive_investing.md):** Defined by funds that simply replicate the [index](../i/index.md). This gives investors broad [market exposure](../m/market_exposure.md) at a low cost. -- **[Active Management](../a/active_management.md):** Some managers attempt to [outperform](../o/outperform.md) the [index](../i/index.md) by selectively picking [stocks](../s/stock.md) they believe [will](../w/will.md) [outperform](../o/outperform.md). +The S&P 500 [index](../i/index_instrument.md) has fostered various investment strategies: +- **[Passive Investing](../p/passive_investing.md):** Defined by funds that simply replicate the [index](../i/index_instrument.md). This gives investors broad [market exposure](../m/market_exposure.md) at a low cost. +- **[Active Management](../a/active_management.md):** Some managers attempt to [outperform](../o/outperform.md) the [index](../i/index_instrument.md) by selectively picking [stocks](../s/stock.md) they believe [will](../w/will.md) [outperform](../o/outperform.md). ### ETFs and Mutual Funds [Multiple](../m/multiple.md) ETFs and mutual funds are designed to replicate or beat the S&P 500. The most famous is the SPDR S&P 500 ETF [Trust](../t/trust.md) (SPY), which is one of the largest and most [liquid](../l/liquid.md) ETFs. @@ -71,15 +71,15 @@ The S&P 500 [index](../i/index.md) has fostered various investment strategies: ## Technological Integration ### Algorithmic Trading -The S&P 500's predictable composition and regular updates make it a favorite for [algorithmic trading](../a/accountability.md). Algorithms may exploit small discrepancies in prices between constituent [stocks](../s/stock.md) and the [index](../i/index.md)’s [derivatives](../d/derivatives.md). +The S&P 500's predictable composition and regular updates make it a favorite for [algorithmic trading](../a/accountability.md). Algorithms may exploit small discrepancies in prices between constituent [stocks](../s/stock.md) and the [index](../i/index_instrument.md)’s [derivatives](../d/derivatives.md). ### FinTech Applications FinTech platforms use the S&P 500 as a reference in robo-advising, [portfolio management](../p/par.md), and even fractional [investing](../i/investing.md), where users can buy portions of an S&P 500 ETF share. ## Online Resources -For more detailed information, the official S&P 500 [Index](../i/index.md) page by S&P Dow Jones Indices is a valuable resource: [S&P 500 Index - S&P Dow Jones Indices](https://www.spglobal.com/spdji/en/indices/equity/sp-500/) +For more detailed information, the official S&P 500 [Index](../i/index_instrument.md) page by S&P Dow Jones Indices is a valuable resource: [S&P 500 Index - S&P Dow Jones Indices](https://www.spglobal.com/spdji/en/indices/equity/sp-500/) --- -The S&P 500 [Index](../i/index.md) is not just a number; it represents the economic heartbeat of the United States and plays a pivotal role in global [financial markets](../f/financial_market.md). Whether you are a [retail investor](../r/retail_investor.md), a financial analyst, or a seasoned [fund manager](../f/fund_manager.md), the S&P 500 [Index](../i/index.md) is invariably a central part of the financial landscape. \ No newline at end of file +The S&P 500 [Index](../i/index_instrument.md) is not just a number; it represents the economic heartbeat of the United States and plays a pivotal role in global [financial markets](../f/financial_market.md). Whether you are a [retail investor](../r/retail_investor.md), a financial analyst, or a seasoned [fund manager](../f/fund_manager.md), the S&P 500 [Index](../i/index_instrument.md) is invariably a central part of the financial landscape. \ No newline at end of file diff --git a/en/pedia/s/saudi_stock_exchange_(tadawul).md b/en/pedia/s/saudi_stock_exchange_(tadawul).md index 00eb59a2..68edbe8f 100644 --- a/en/pedia/s/saudi_stock_exchange_(tadawul).md +++ b/en/pedia/s/saudi_stock_exchange_(tadawul).md @@ -11,7 +11,7 @@ Equities or [stocks](../s/stock.md) represent ownership in companies [listed](.. Tadawul provides a platform for trading Sharia-compliant [sukuk](../s/sukuk.md) and conventional bonds, which [offer](../o/offer.md) investment opportunities with varying [risk](../r/risk.md) and [return](../r/return.md) profiles. ### ETFs -ETFs or [Exchange](../e/exchange.md)-Traded Funds are investment funds traded on the stock [exchange](../e/exchange.md), designed to track the performance of an [index](../i/index.md), [commodity](../c/commodity.md), or a basket of assets. They [offer](../o/offer.md) diversified exposure and are a popular [investment vehicle](../i/investment_vehicle.md). +ETFs or [Exchange](../e/exchange.md)-Traded Funds are investment funds traded on the stock [exchange](../e/exchange.md), designed to track the performance of an [index](../i/index_instrument.md), [commodity](../c/commodity.md), or a basket of assets. They [offer](../o/offer.md) diversified exposure and are a popular [investment vehicle](../i/investment_vehicle.md). ### Mutual Funds Mutual funds are investment programs funded by shareholders that [trade](../t/trade.md) in diversified [holdings](../h/holdings.md) and are professionally managed. Tadawul lists various mutual funds managed by licensed [fund](../f/fund.md) managers. diff --git a/en/pedia/s/scalping.md b/en/pedia/s/scalping.md index 5bc56c70..ba3a2db8 100644 --- a/en/pedia/s/scalping.md +++ b/en/pedia/s/scalping.md @@ -62,7 +62,7 @@ Advanced trading platforms with low latency and high-speed [execution](../e/exec ### Technical Indicators -[Technical indicators](../t/technical_indicator.md) such as moving averages, [Bollinger Bands](../b/bollinger_band.md), and [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) are commonly used to identify entry and exit points. Scalpers often rely on short-term indicators to capture quick price movements. +[Technical indicators](../t/technical_indicator.md) such as moving averages, [Bollinger Bands](../b/bollinger_band.md), and [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) are commonly used to identify entry and exit points. Scalpers often rely on short-term indicators to capture quick price movements. ### Automated Trading Systems diff --git a/en/pedia/s/sector.md b/en/pedia/s/sector.md index 6b228269..ff467cfe 100644 --- a/en/pedia/s/sector.md +++ b/en/pedia/s/sector.md @@ -42,8 +42,8 @@ Understanding sectors is crucial for several reasons: Sector indexes or indices track the performance of specific sectors. Examples include the S&P 500 [sector indices](../s/sector_indices.md), which provide a [benchmark](../b/benchmark.md) for each sector's performance as part of the S&P 500. -- **S&P 500 Energy [Index](../i/index.md)**: Measures the performance of [energy sector](../e/energy_sector.md) companies. -- **Dow Jones U.S. [Consumer Goods](../c/consumer_goods.md) [Index](../i/index.md)**: Tracks companies in the [consumer goods](../c/consumer_goods.md) sector. +- **S&P 500 Energy [Index](../i/index_instrument.md)**: Measures the performance of [energy sector](../e/energy_sector.md) companies. +- **Dow Jones U.S. [Consumer Goods](../c/consumer_goods.md) [Index](../i/index_instrument.md)**: Tracks companies in the [consumer goods](../c/consumer_goods.md) sector. - **[NASDAQ](../n/nasdaq.md)-100 [Technology Sector](../t/technology_sector.md)**: Focuses on the [technology sector](../t/technology_sector.md). These indices serve as benchmarks and tools for creating sector-specific ETFs ([Exchange](../e/exchange.md)-Traded Funds) or mutual funds, providing investors with exposure to particular sectors. diff --git a/en/pedia/s/sector_etfs.md b/en/pedia/s/sector_etfs.md index e88bf743..cb1953b3 100644 --- a/en/pedia/s/sector_etfs.md +++ b/en/pedia/s/sector_etfs.md @@ -3,7 +3,7 @@ ## Introduction to Sector ETFs ### Definition and Purpose -Sector [Exchange](../e/exchange.md)-Traded Funds (ETFs) are investment funds that are traded on stock exchanges, much like individual [stocks](../s/stock.md). These funds focus their investments on [stocks](../s/stock.md) within a particular sector of the [economy](../e/economy.md), such as technology, healthcare, or energy. By concentrating investments in specific sectors, sector ETFs allow investors to [gain](../g/gain.md) targeted exposure to different segments of the [market](../m/market.md), which can be beneficial for both growth and [diversification strategies](../d/diversification_strategies.md). Sector ETFs typically replicate the performance of a specific [index](../i/index.md) that tracks companies within the chosen sector. +Sector [Exchange](../e/exchange.md)-Traded Funds (ETFs) are investment funds that are traded on stock exchanges, much like individual [stocks](../s/stock.md). These funds focus their investments on [stocks](../s/stock.md) within a particular sector of the [economy](../e/economy.md), such as technology, healthcare, or energy. By concentrating investments in specific sectors, sector ETFs allow investors to [gain](../g/gain.md) targeted exposure to different segments of the [market](../m/market.md), which can be beneficial for both growth and [diversification strategies](../d/diversification_strategies.md). Sector ETFs typically replicate the performance of a specific [index](../i/index_instrument.md) that tracks companies within the chosen sector. ### Benefits of Sector ETFs @@ -79,7 +79,7 @@ Materials Sector ETFs focus on companies involved in the production of [raw mate ## Key Players in the Sector ETF Market ### State Street Global Advisors (SPDR ETFs) -State Street Global Advisors (SSGA) is a leading provider of ETFs. The SPDR (Standard & Poor's [Depository](../d/depository.md) [Receipts](../r/receipt.md)) ETFs are among the most well-known and widely traded ETFs. SSGA offers a comprehensive suite of sector ETFs that track the performance of various sectors represented in the S&P 500 [Index](../i/index.md). +State Street Global Advisors (SSGA) is a leading provider of ETFs. The SPDR (Standard & Poor's [Depository](../d/depository.md) [Receipts](../r/receipt.md)) ETFs are among the most well-known and widely traded ETFs. SSGA offers a comprehensive suite of sector ETFs that track the performance of various sectors represented in the S&P 500 [Index](../i/index_instrument.md). - [Website](https://www.ssga.com/) @@ -105,12 +105,12 @@ Investors use sector ETFs for tactical [asset allocation](../a/asset_allocation. Sector ETFs can be used to [hedge](../h/hedge.md) against specific risks in an investment portfolio. For instance, an [investor](../i/investor.md) heavily invested in the [technology sector](../t/technology_sector.md) may use [consumer staples](../c/consumer_staples.md) ETFs to [offset](../o/offset.md) potential [volatility](../v/volatility.md) in the tech sector. ### Core-Satellite Approach -The core-satellite [investment strategy](../i/investment_strategy.md) involves building a core portfolio of broad-[market](../m/market.md) ETFs or [index](../i/index.md) funds and complementing it with satellite investments in sector ETFs to achieve higher returns or additional [diversification](../d/diversification.md). +The core-satellite [investment strategy](../i/investment_strategy.md) involves building a core portfolio of broad-[market](../m/market.md) ETFs or [index](../i/index_instrument.md) funds and complementing it with satellite investments in sector ETFs to achieve higher returns or additional [diversification](../d/diversification.md). ## Performance Metrics and Analysis ### Tracking Error -[Tracking error](../t/tracking_error.md) measures the difference between the performance of the sector ETF and its [underlying](../u/underlying.md) [index](../i/index.md). A low [tracking error](../t/tracking_error.md) indicates that the ETF closely replicates the performance of its [index](../i/index.md). +[Tracking error](../t/tracking_error.md) measures the difference between the performance of the sector ETF and its [underlying](../u/underlying.md) [index](../i/index_instrument.md). A low [tracking error](../t/tracking_error.md) indicates that the ETF closely replicates the performance of its [index](../i/index_instrument.md). ### Expense Ratio The [expense ratio](../e/expense_ratio.md) represents the annual [fee](../f/fee.md) expressed as a percentage of the [fund](../f/fund.md)'s average assets under management (AUM). Lower [expense](../e/expense.md) ratios are generally preferred as they indicate lower costs for investors. diff --git a/en/pedia/s/sector_etfs_analysis.md b/en/pedia/s/sector_etfs_analysis.md index d9acf614..a32f45d5 100644 --- a/en/pedia/s/sector_etfs_analysis.md +++ b/en/pedia/s/sector_etfs_analysis.md @@ -52,7 +52,7 @@ - **[Trend Analysis](../t/trend_analysis.md)**: Identifying upward, downward, or sideways trends in ETF prices. - **[Chart Patterns](../c/chart_patterns.md)**: Recognizing formations such as head-and-shoulders, triangles, and flags. -- **Indicators**: Utilizing tools like moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and MACD. +- **Indicators**: Utilizing tools like moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and MACD. ### Quantitative Analysis @@ -77,14 +77,14 @@ When analyzing [Sector ETFs](../s/sector_etfs.md), several [performance metrics] - **[Total Return](../t/total_return.md)**: Measures the overall [return](../r/return.md), including [capital](../c/capital.md) gains and dividends, over a specific period. - **[Expense Ratio](../e/expense_ratio.md)**: The annual [fee](../f/fee.md) charged by the ETF manager, expressed as a percentage of assets under management. - **[Dividend Yield](../d/dividend_yield.md)**: The annual dividends paid by the ETF as a percentage of its share price. -- **[Tracking Error](../t/tracking_error.md)**: The difference between the ETF’s performance and its [benchmark](../b/benchmark.md) [index](../i/index.md). +- **[Tracking Error](../t/tracking_error.md)**: The difference between the ETF’s performance and its [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). - **[Liquidity](../l/liquidity.md)**: Assessed by trading [volume](../v/volume.md) and [bid](../b/bid.md)-ask [spreads](../s/spreads.md), indicating how easily [shares](../s/shares.md) can be bought or sold. ## Case Studies ### Technology Sector ETF (XLK) -**Overview**: XLK seeks to track the performance of the Technology Select Sector [Index](../i/index.md). It includes [holdings](../h/holdings.md) primarily in software, hardware, and semiconductors. +**Overview**: XLK seeks to track the performance of the Technology Select Sector [Index](../i/index_instrument.md). It includes [holdings](../h/holdings.md) primarily in software, hardware, and semiconductors. - **Top [Holdings](../h/holdings.md)**: Apple Inc., Microsoft Corp., NVIDIA Corp. - **Performance Analysis**: Over the past five years, XLK has shown substantial growth, driven by advancements in [cloud computing](../c/cloud_computing_in_trading.md), [artificial intelligence](../a/artificial_intelligence_in_trading.md), and consumer electronics. @@ -92,7 +92,7 @@ When analyzing [Sector ETFs](../s/sector_etfs.md), several [performance metrics] ### Healthcare Sector ETF (XLV) -**Overview**: XLV aims to replicate the performance of the Health Care Select Sector [Index](../i/index.md). It comprises pharmaceuticals, biotechnology, and medical devices companies. +**Overview**: XLV aims to replicate the performance of the Health Care Select Sector [Index](../i/index_instrument.md). It comprises pharmaceuticals, biotechnology, and medical devices companies. - **Top [Holdings](../h/holdings.md)**: Johnson & Johnson, UnitedHealth Group, Pfizer Inc. - **Performance Analysis**: XLV has benefited from an aging population and increased healthcare spending. However, it faces regulatory uncertainties related to drug pricing and healthcare reforms. @@ -100,7 +100,7 @@ When analyzing [Sector ETFs](../s/sector_etfs.md), several [performance metrics] ### Financial Sector ETF (XLF) -**Overview**: XLF tracks the Financial Select Sector [Index](../i/index.md). It includes banks, [insurance](../i/insurance.md) companies, and other financial services firms. +**Overview**: XLF tracks the Financial Select Sector [Index](../i/index_instrument.md). It includes banks, [insurance](../i/insurance.md) companies, and other financial services firms. - **Top [Holdings](../h/holdings.md)**: [Berkshire Hathaway](../b/berkshire_hathaway.md) Inc., JPMorgan Chase & Co., [Bank](../b/bank.md) of America Corp. - **Performance Analysis**: XLF’s performance is closely tied to [interest rate](../i/interest_rate.md) movements and [economic cycles](../e/economic_cycles.md). Recent [deregulation](../d/deregulation.md) and lower [interest](../i/interest.md) rates have impacted its [valuation](../v/valuation.md). diff --git a/en/pedia/s/sector_indices.md b/en/pedia/s/sector_indices.md index 07602e8d..7fd6d0e6 100644 --- a/en/pedia/s/sector_indices.md +++ b/en/pedia/s/sector_indices.md @@ -10,7 +10,7 @@ Sector indices are subsets of the broader [market](../m/market.md) indices and a Some well-known sector indices include: -- **S&P 500 Sectors**: The S&P 500 is divided into 11 sectors, including information technology, healthcare, financials, consumer discretionaries, and others. Each sector [index](../i/index.md) tracks the performance of companies within that sector. For more information, visit [S&P Dow Jones Indices](https://www.spglobal.com/spdji/en/). +- **S&P 500 Sectors**: The S&P 500 is divided into 11 sectors, including information technology, healthcare, financials, consumer discretionaries, and others. Each sector [index](../i/index_instrument.md) tracks the performance of companies within that sector. For more information, visit [S&P Dow Jones Indices](https://www.spglobal.com/spdji/en/). - **MSCI ACWI Sector Indices**: These indices provide a global overview, tracking the performance of sectors across developed and emerging markets. Details can be found on the [MSCI website](https://www.msci.com/). @@ -18,7 +18,7 @@ Some well-known sector indices include: ### Importance in Algorithmic Trading -In [algorithmic trading](../a/algorithmic_trading.md), sector indices are used to develop strategies that exploit the [relative strength](../r/relative_strength.md) or weakness of particular sectors. Algorithms can be programmed to execute trades based on the [performance metrics](../p/performance_metrics.md) of these indices, such as moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and other [technical indicators](../t/technical_indicators.md). +In [algorithmic trading](../a/algorithmic_trading.md), sector indices are used to develop strategies that exploit the [relative strength](../r/relative_strength.md) or weakness of particular sectors. Algorithms can be programmed to execute trades based on the [performance metrics](../p/performance_metrics.md) of these indices, such as moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and other [technical indicators](../t/technical_indicators.md). ## Construction of Sector Indices @@ -41,14 +41,14 @@ These classification systems ensure consistent and transparent categorization, w The [technology sector](../t/technology_sector.md) is one of the most followed indices due to the rapid growth and innovation within this [industry](../i/industry.md). It includes companies involved in software, hardware, IT services, and electronics. #### Example: NASDAQ-100 Technology Sector Index -This [index](../i/index.md) tracks the performance of the technology companies within the broader [NASDAQ](../n/nasdaq.md)-100 [Index](../i/index.md). +This [index](../i/index_instrument.md) tracks the performance of the technology companies within the broader [NASDAQ](../n/nasdaq.md)-100 [Index](../i/index_instrument.md). ### Healthcare Sector The [healthcare sector](../h/healthcare_sector.md) comprises companies involved in pharmaceuticals, biotechnology, medical devices, and health services. #### Example: S&P 500 Healthcare Sector Index -This [index](../i/index.md) provides exposure to large-cap U.S. companies in the healthcare [industry](../i/industry.md). +This [index](../i/index_instrument.md) provides exposure to large-cap U.S. companies in the healthcare [industry](../i/industry.md). ### Energy Sector @@ -62,7 +62,7 @@ It tracks the performance of energy companies from developed markets across the The [financial sector](../f/financial_sector.md) encompasses a wide [range](../r/range.md) of financial services companies, including banks, investment funds, [insurance](../i/insurance.md) companies, and [real estate](../r/real_estate.md) firms. #### Example: FTSE All-World Financials Index -This [index](../i/index.md) includes financial services companies from both developed and emerging markets globally. +This [index](../i/index_instrument.md) includes financial services companies from both developed and emerging markets globally. ### Consumer Discretionary Sector diff --git a/en/pedia/s/sector_performance.md b/en/pedia/s/sector_performance.md index fa6836d7..43571d17 100644 --- a/en/pedia/s/sector_performance.md +++ b/en/pedia/s/sector_performance.md @@ -15,7 +15,7 @@ Monitoring sector performance is essential for several reasons: Several metrics are instrumental in analyzing sector performance: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: RSI measures the speed and change of price movements. Traders use RSI to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a sector. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: RSI measures the speed and change of price movements. Traders use RSI to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a sector. - **Sector [Beta](../b/beta.md)**: [Beta](../b/beta.md) measures a sector's [volatility](../v/volatility.md) relative to the broader [market](../m/market.md). A [beta](../b/beta.md) greater than 1 indicates higher [volatility](../v/volatility.md), while a [beta](../b/beta.md) less than 1 indicates less [volatility](../v/volatility.md). - **Price-to-[Earnings](../e/earnings.md) (P/E) Ratio**: This ratio measures a sector's current share price relative to its per-share [earnings](../e/earnings.md). It is helpful for comparing [valuation](../v/valuation.md) levels across different sectors. - **[Earnings](../e/earnings.md) Growth Rate**: This metric indicates the pace at which a sector's [earnings](../e/earnings.md) are growing. Higher [growth rates](../g/growth_rates_in_trading.md) can signal strong sectoral performance. diff --git a/en/pedia/s/sector_performance_metrics.md b/en/pedia/s/sector_performance_metrics.md index 5572ed85..97b19459 100644 --- a/en/pedia/s/sector_performance_metrics.md +++ b/en/pedia/s/sector_performance_metrics.md @@ -63,7 +63,7 @@ Sector [performance metrics](../p/performance_metrics.md) provide a structured a Understanding the [performance metrics](../p/performance_metrics.md) of different sectors aids in managing portfolio [risk](../r/risk.md). Metrics such as [Beta](../b/beta.md) and [Drawdown](../d/drawdown.md) inform investors about the [volatility](../v/volatility.md) and potential risks associated with each sector, allowing for more informed [risk management](../r/risk_management.md) strategies. ### Benchmarking and Performance Evaluation -[Alpha](../a/alpha.md) and other relative [performance metrics](../p/performance_metrics.md) enable investors to evaluate how well a sector or [investment manager](../i/investment_manager.md) is performing compared to a [benchmark](../b/benchmark.md) [index](../i/index.md) or other sectors. This comparison helps in assessing the effectiveness of [active management](../a/active_management.md) strategies versus passive investments. +[Alpha](../a/alpha.md) and other relative [performance metrics](../p/performance_metrics.md) enable investors to evaluate how well a sector or [investment manager](../i/investment_manager.md) is performing compared to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) or other sectors. This comparison helps in assessing the effectiveness of [active management](../a/active_management.md) strategies versus passive investments. ### Diversification Strategies By analyzing sector [performance metrics](../p/performance_metrics.md), investors can build diversified portfolios that minimize [risk](../r/risk.md) and maximize returns. For example, combining sectors with different Betas can reduce overall portfolio [volatility](../v/volatility.md). @@ -81,12 +81,12 @@ Once the data is collected, various [quantitative analysis](../q/quantitative_an ### Example Calculation: Total Return To calculate the [Total Return](../t/total_return.md) of a sector, follow these steps: -1. Obtain the sector [index](../i/index.md) [value](../v/value.md) at the beginning and end of the period. +1. Obtain the sector [index](../i/index_instrument.md) [value](../v/value.md) at the beginning and end of the period. 2. Gather any dividends distributed during the period. 3. Apply the [Total Return](../t/total_return.md) formula: ```python -start_value = 1000 # Example starting [index](../i/index.md) [value](../v/value.md) -end_value = 1100 # Example ending [index](../i/index.md) [value](../v/value.md) +start_value = 1000 # Example starting [index](../i/index_instrument.md) [value](../v/value.md) +end_value = 1100 # Example ending [index](../i/index_instrument.md) [value](../v/value.md) dividends = 50 # Example dividends received during the period total_return = (end_value - start_value + dividends) / start_value diff --git a/en/pedia/s/sector_rotation_strategies.md b/en/pedia/s/sector_rotation_strategies.md index 20ad7613..5360e7d5 100644 --- a/en/pedia/s/sector_rotation_strategies.md +++ b/en/pedia/s/sector_rotation_strategies.md @@ -25,8 +25,8 @@ Successful [sector rotation](../s/sector_rotation.md) relies heavily on interpre - **Employment Data**: Provides information on job creation, [unemployment](../u/unemployment.md) rates, and wage growth. - **[Inflation](../i/inflation.md) Rates**: Tracks the rate at which prices for goods and services rise. - **[Interest](../i/interest.md) Rates**: Central banks' [interest rate](../i/interest_rate.md) decisions affect borrowing costs and [economic growth](../e/economic_growth.md). -- **Consumer Confidence [Index](../i/index.md)**: Measures the overall confidence of consumers in the [economy](../e/economy.md). -- **[Business](../b/business.md) Confidence [Index](../i/index.md)**: Reflects the sentiments of [business](../b/business.md) leaders about the economic outlook. +- **Consumer Confidence [Index](../i/index_instrument.md)**: Measures the overall confidence of consumers in the [economy](../e/economy.md). +- **[Business](../b/business.md) Confidence [Index](../i/index_instrument.md)**: Reflects the sentiments of [business](../b/business.md) leaders about the economic outlook. ### Sector Analysis In addition to [economic indicators](../e/economic_indicators.md), [sector analysis](../s/sector_analysis.md) is critical. This involves evaluating factors such as: @@ -82,7 +82,7 @@ Various investment platforms and tools assist in implementing [sector rotation]( - **Overreliance on [Economic Indicators](../e/economic_indicators.md)**: [Economic indicators](../e/economic_indicators.md) are not always accurate, and relying too heavily on them can lead to incorrect predictions and investment decisions. ## Real-World Examples -- **T. Rowe Price**: T. Rowe Price Diversified Sector Strategy focuses on tactical sector allocation, aiming to [outperform](../o/outperform.md) the S&P 500 [Index](../i/index.md) by actively managing sector exposures. +- **T. Rowe Price**: T. Rowe Price Diversified Sector Strategy focuses on tactical sector allocation, aiming to [outperform](../o/outperform.md) the S&P 500 [Index](../i/index_instrument.md) by actively managing sector exposures. [T. Rowe Price](https://www.troweprice.com) - **[Fidelity Investments](../f/fidelity_investments.md)**: Fidelity offers [sector rotation](../s/sector_rotation.md) mutual funds and ETFs that use [top-down analysis](../t/top-down_analysis.md) and fundamental research to rotate between sectors. diff --git a/en/pedia/s/securities_borrowing.md b/en/pedia/s/securities_borrowing.md index 05c73257..882276e5 100644 --- a/en/pedia/s/securities_borrowing.md +++ b/en/pedia/s/securities_borrowing.md @@ -45,7 +45,7 @@ Securities borrowing also facilitates [arbitrage](../a/arbitrage.md) opportuniti - **Convertible [Arbitrage](../a/arbitrage.md)**: Involves buying convertible bonds (which can be converted into [equity](../e/equity.md)) and [short selling](../s/short_selling.md) the [underlying](../u/underlying.md) stock to exploit pricing inefficiencies. - **[Merger](../m/merger.md) [Arbitrage](../a/arbitrage.md)**: Involves buying [shares](../s/shares.md) of a target company and [short selling](../s/short_selling.md) [shares](../s/shares.md) of the acquiring company to [profit](../p/profit.md) from the spread between the current [market price](../m/market_price.md) and the [transaction](../t/transaction.md) price. -- **[Index](../i/index.md) [Arbitrage](../a/arbitrage.md)**: Involves [short selling](../s/short_selling.md) constituent [stocks](../s/stock.md) of an [index](../i/index.md) while simultaneously buying [futures contracts](../f/futures_contracts.md) on the [index](../i/index.md). +- **[Index](../i/index_instrument.md) [Arbitrage](../a/arbitrage.md)**: Involves [short selling](../s/short_selling.md) constituent [stocks](../s/stock.md) of an [index](../i/index_instrument.md) while simultaneously buying [futures contracts](../f/futures_contracts.md) on the [index](../i/index_instrument.md). ## Risks and Mitigation diff --git a/en/pedia/s/securities_market_analysis.md b/en/pedia/s/securities_market_analysis.md index 497d571e..fd53b49f 100644 --- a/en/pedia/s/securities_market_analysis.md +++ b/en/pedia/s/securities_market_analysis.md @@ -31,7 +31,7 @@ The [foreign exchange](../f/foreign_exchange.md) (forex) [market](../m/market.md #### Tools and Indicators in Technical Analysis - **Moving Averages**: A technique that smooths price data to identify trends by averaging a particular number of past data points. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: An [oscillator](../o/oscillator.md) that measures the speed and change of price movements to indicate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: An [oscillator](../o/oscillator.md) that measures the speed and change of price movements to indicate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **[Chart Patterns](../c/chart_patterns.md)**: Visual patterns on price charts that are believed to predict future price movements, such as head and shoulders, triangles, and double tops/bottoms. ### Quantitative Analysis @@ -47,7 +47,7 @@ The [foreign exchange](../f/foreign_exchange.md) (forex) [market](../m/market.md High-Frequency Trading involves executing orders at incredibly high speeds using advanced computer algorithms. These trades can be executed in milliseconds or microseconds. It leverages small price discrepancies across markets to generate profits. ### Arbitrage -[Arbitrage](../a/arbitrage.md) strategies exploit price differences in different markets for the same [asset](../a/asset.md). Common forms of [arbitrage](../a/arbitrage.md) include statistical [arbitrage](../a/arbitrage.md), [index](../i/index.md) [arbitrage](../a/arbitrage.md), and [risk](../r/risk.md) [arbitrage](../a/arbitrage.md). +[Arbitrage](../a/arbitrage.md) strategies exploit price differences in different markets for the same [asset](../a/asset.md). Common forms of [arbitrage](../a/arbitrage.md) include statistical [arbitrage](../a/arbitrage.md), [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md), and [risk](../r/risk.md) [arbitrage](../a/arbitrage.md). ### Momentum Trading [Momentum trading](../m/momentum_trading.md) strategies buy securities that have shown an upward price [trend](../t/trend.md) and sell those with a downward [trend](../t/trend.md). These strategies are based on the premise that trends are likely to continue for some time. diff --git a/en/pedia/s/security_analysis.md b/en/pedia/s/security_analysis.md index 63c96fe1..3a90c7a9 100644 --- a/en/pedia/s/security_analysis.md +++ b/en/pedia/s/security_analysis.md @@ -24,7 +24,7 @@ There are generally two main types of [security](../s/security.md) analysis: [Fu 1. **Price Trends**: Analyzing the direction of price movements over different periods. Trends can be upward, downward, or sideways, and identifying them helps in making buy or sell decisions. 2. **[Chart Patterns](../c/chart_patterns.md)**: Patterns such as head and shoulders, double tops and bottoms, and triangles that tend to repeat and can indicate potential [market](../m/market.md) direction. -3. **[Technical Indicators](../t/technical_indicators.md)**: Tools like moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and moving average convergence [divergence](../d/divergence.md) (MACD) that provide quantitative insights into [market](../m/market.md) conditions. +3. **[Technical Indicators](../t/technical_indicators.md)**: Tools like moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and moving average convergence [divergence](../d/divergence.md) (MACD) that provide quantitative insights into [market](../m/market.md) conditions. ### Integrating Security Analysis in Algorithmic Trading diff --git a/en/pedia/s/security_beta_analysis.md b/en/pedia/s/security_beta_analysis.md index 1da8a122..b5f1796e 100644 --- a/en/pedia/s/security_beta_analysis.md +++ b/en/pedia/s/security_beta_analysis.md @@ -4,7 +4,7 @@ In the realm of [financial markets](../f/financial_market.md), understanding the ## Introduction to Beta -[Beta](../b/beta.md) is a statistical measure that compares the [volatility](../v/volatility.md) of a [security](../s/security.md) or a portfolio to the overall [market](../m/market.md). The [market](../m/market.md), usually represented by a [benchmark](../b/benchmark.md) [index](../i/index.md) such as the S&P 500, is assigned a [Beta coefficient](../b/beta_coefficient.md) of 1. A [security](../s/security.md) with a [Beta](../b/beta.md) greater than 1 indicates that it is more volatile than the [market](../m/market.md), while a [Beta](../b/beta.md) less than 1 suggests it is less volatile. +[Beta](../b/beta.md) is a statistical measure that compares the [volatility](../v/volatility.md) of a [security](../s/security.md) or a portfolio to the overall [market](../m/market.md). The [market](../m/market.md), usually represented by a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) such as the S&P 500, is assigned a [Beta coefficient](../b/beta_coefficient.md) of 1. A [security](../s/security.md) with a [Beta](../b/beta.md) greater than 1 indicates that it is more volatile than the [market](../m/market.md), while a [Beta](../b/beta.md) less than 1 suggests it is less volatile. ### Historical Context @@ -33,7 +33,7 @@ To compute [Beta](../b/beta.md), you need: ### Steps in Calculation -1. **Collect Data**: Obtain historical price or [return](../r/return.md) data for the [security](../s/security.md) and the [benchmark](../b/benchmark.md) [index](../i/index.md). +1. **Collect Data**: Obtain historical price or [return](../r/return.md) data for the [security](../s/security.md) and the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). 2. **Calculate Returns**: Convert price data to returns data by calculating periodic returns. 3. **Compute [Covariance](../c/covariance.md) and Variance**: Using statistical methods, calculate the [covariance](../c/covariance.md) between the [security](../s/security.md)’s returns and the [market](../m/market.md)’s returns, as well as the variance of the [market](../m/market.md)’s returns. 4. **Apply Formula**: Divide the [covariance](../c/covariance.md) by the variance of the [market](../m/market.md) to determine [Beta](../b/beta.md). @@ -46,7 +46,7 @@ A [Beta](../b/beta.md) greater than 1 indicates that the [security](../s/securit ### Beta = 1 -A [Beta](../b/beta.md) of 1 implies that the [security](../s/security.md)’s price moves with the [market](../m/market.md). The [security](../s/security.md) is expected to have the same [volatility](../v/volatility.md) as the [market](../m/market.md). [Index](../i/index.md) funds and ETFs that track the [market](../m/market.md) often have a [Beta](../b/beta.md) close to 1. +A [Beta](../b/beta.md) of 1 implies that the [security](../s/security.md)’s price moves with the [market](../m/market.md). The [security](../s/security.md) is expected to have the same [volatility](../v/volatility.md) as the [market](../m/market.md). [Index](../i/index_instrument.md) funds and ETFs that track the [market](../m/market.md) often have a [Beta](../b/beta.md) close to 1. ### Beta < 1 diff --git a/en/pedia/s/security_selection.md b/en/pedia/s/security_selection.md index 6c8fcd84..f61612ab 100644 --- a/en/pedia/s/security_selection.md +++ b/en/pedia/s/security_selection.md @@ -17,7 +17,7 @@ [Fundamental analysis](../f/fundamental_analysis.md) involves evaluating a [security](../s/security.md) based on financial metrics and [economic indicators](../e/economic_indicators.md) to estimate its [intrinsic value](../i/intrinsic_value.md). Key fundamental factors include [revenue](../r/revenue.md), [earnings](../e/earnings.md), [profit margins](../p/profit_margins_in_trading.md), [return](../r/return.md) on [equity](../e/equity.md), and [balance sheet](../b/balance_sheet.md) health. By analyzing these metrics, traders can identify [undervalued](../u/undervalued.md) or [overvalued](../o/overvalued.md) securities, potentially profiting from future price adjustments. [Fundamental analysis](../f/fundamental_analysis.md) is particularly relevant for longer-term [trading strategies](../t/trading_strategies.md), where the [underlying](../u/underlying.md) [financial health](../f/financial_health.md) of the securities is a critical [factor](../f/factor.md). ### 5. Technical Analysis -[Technical analysis](../t/technical_analysis.md) focuses on statistical trends derived from historical trading activity, such as price movements and [volume](../v/volume.md). Traders use various [technical indicators](../t/technical_indicators.md), including moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), [Bollinger Bands](../b/bollinger_bands.md), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)), to forecast future price direction. Algorithms can process vast amounts of historical data to identify patterns and signals for [security](../s/security.md) selection, making [technical analysis](../t/technical_analysis.md) a valuable tool for short-term and high-frequency [trading strategies](../t/trading_strategies.md). +[Technical analysis](../t/technical_analysis.md) focuses on statistical trends derived from historical trading activity, such as price movements and [volume](../v/volume.md). Traders use various [technical indicators](../t/technical_indicators.md), including moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), [Bollinger Bands](../b/bollinger_bands.md), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)), to forecast future price direction. Algorithms can process vast amounts of historical data to identify patterns and signals for [security](../s/security.md) selection, making [technical analysis](../t/technical_analysis.md) a valuable tool for short-term and high-frequency [trading strategies](../t/trading_strategies.md). ### 6. Sector and Industry Trends Examining trends within specific sectors or industries can help traders identify securities with growth potential or declining prospects. Different sectors may perform better or worse depending on [economic cycles](../e/economic_cycles.md), regulatory changes, or technological advancements. By staying informed about sectoral trends, algorithmic traders can make informed [security](../s/security.md) selections that align with broader [market](../m/market.md) movements. diff --git a/en/pedia/s/sell_discipline.md b/en/pedia/s/sell_discipline.md index c7f135ba..7749d26a 100644 --- a/en/pedia/s/sell_discipline.md +++ b/en/pedia/s/sell_discipline.md @@ -15,7 +15,7 @@ Sell discipline in the context of [algorithmic trading](../a/algorithmic_trading 2. **Trailing Stops**: A more flexible form of [stop order](../s/stop_order.md) that moves with the [market price](../m/market_price.md), allowing traders to [lock in profits](../l/lock_in_profits.md) while maintaining the potential for further gains. 3. **[Profit](../p/profit.md) Targets**: Pre-defined price levels at which a [trader](../t/trader.md) [will](../w/will.md) sell a position to lock in gains, based on [technical analysis](../t/technical_analysis.md), [fundamental analysis](../f/fundamental_analysis.md), or both. 4. **Time-Based Exits**: Criteria based on the elapsed time rather than price movements, such as exiting a position after a certain period to avoid overexposure. -5. **[Technical Indicators](../t/technical_indicators.md)**: Use of [technical analysis](../t/technical_analysis.md) tools like moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), which signal when to exit a [trade](../t/trade.md). +5. **[Technical Indicators](../t/technical_indicators.md)**: Use of [technical analysis](../t/technical_analysis.md) tools like moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), which signal when to exit a [trade](../t/trade.md). 6. **Fundamental Triggers**: Events or changes in the [underlying](../u/underlying.md) fundamentals of an [asset](../a/asset.md), such as [earnings](../e/earnings.md) reports, regulatory changes, or macroeconomic indicators. ### Algorithmic Implementation of Sell Discipline diff --git a/en/pedia/s/sensex.md b/en/pedia/s/sensex.md index 080c82ef..eb251969 100644 --- a/en/pedia/s/sensex.md +++ b/en/pedia/s/sensex.md @@ -1,6 +1,6 @@ # Sensex -The Sensex, also known as the S&P BSE Sensex, is one of the most prominent barometers of the Indian [stock market](../s/stock_market.md). It represents the 30 most traded and financially [robust](../r/robust.md) companies [listed](../l/listed.md) on the Bombay Stock [Exchange](../e/exchange.md) (BSE). This term, often used interchangeably with "BSE 30," merges "sensitive" and "[index](../i/index.md)," reflecting its role in gauging [market sentiment](../m/market_sentiment.md) and trends. To understand its significance in [financial markets](../f/financial_market.md), especially in [algorithmic trading](../a/accountability.md) and fintech sectors, one must delve into its history, composition, calculation methods, and broader impact. +The Sensex, also known as the S&P BSE Sensex, is one of the most prominent barometers of the Indian [stock market](../s/stock_market.md). It represents the 30 most traded and financially [robust](../r/robust.md) companies [listed](../l/listed.md) on the Bombay Stock [Exchange](../e/exchange.md) (BSE). This term, often used interchangeably with "BSE 30," merges "sensitive" and "[index](../i/index_instrument.md)," reflecting its role in gauging [market sentiment](../m/market_sentiment.md) and trends. To understand its significance in [financial markets](../f/financial_market.md), especially in [algorithmic trading](../a/accountability.md) and fintech sectors, one must delve into its history, composition, calculation methods, and broader impact. ## History of Sensex @@ -15,7 +15,7 @@ The Sensex was introduced in 1986, making it the oldest stock [market index](../ ## Composition of Sensex -The Sensex consists of 30 companies across various sectors, including IT, [finance](../f/finance.md), [manufacturing](../m/manufacturing.md), and more. These companies are selected based on [multiple](../m/multiple.md) criteria such as [market capitalization](../m/market_capitalization.md), [liquidity](../l/liquidity.md), [revenue](../r/revenue.md), and continuity of listings. The [index](../i/index.md) aims to provide a well-rounded picture of the overall health of the [market](../m/market.md). +The Sensex consists of 30 companies across various sectors, including IT, [finance](../f/finance.md), [manufacturing](../m/manufacturing.md), and more. These companies are selected based on [multiple](../m/multiple.md) criteria such as [market capitalization](../m/market_capitalization.md), [liquidity](../l/liquidity.md), [revenue](../r/revenue.md), and continuity of listings. The [index](../i/index_instrument.md) aims to provide a well-rounded picture of the overall health of the [market](../m/market.md). ### Sector Representation - **Information Technology**: TCS, Infosys @@ -23,18 +23,18 @@ The Sensex consists of 30 companies across various sectors, including IT, [finan - **Energy**: Reliance Industries, ONGC - **[Manufacturing](../m/manufacturing.md)**: Tata Steel, Mahindra & Mahindra -The list of companies is reviewed periodically to ensure they meet the eligibility criteria, ensuring the [index](../i/index.md) remains relevant. +The list of companies is reviewed periodically to ensure they meet the eligibility criteria, ensuring the [index](../i/index_instrument.md) remains relevant. ## Calculation of Sensex -The Sensex is calculated using a free-[float](../f/float.md) [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) methodology. This means each company's weight in the [index](../i/index.md) is proportional to its [market value](../m/market_value.md), adjusted for the number of [shares](../s/shares.md) available for trading. +The Sensex is calculated using a free-[float](../f/float.md) [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) methodology. This means each company's weight in the [index](../i/index_instrument.md) is proportional to its [market value](../m/market_value.md), adjusted for the number of [shares](../s/shares.md) available for trading. ### Steps Involved 1. **Free-[Float](../f/float.md) [Market Capitalization](../m/market_capitalization.md)**: Total [market](../m/market.md) cap of a company multiplied by its free-[float](../f/float.md) [factor](../f/factor.md). 2. **[Market Capitalization](../m/market_capitalization.md)**: Sum of free-[float](../f/float.md) [market](../m/market.md) cap of all 30 companies. -3. **[Index](../i/index.md) [Value](../v/value.md)**: (Current [Market](../m/market.md) Cap / Base [Market](../m/market.md) Cap) * Base [Index](../i/index.md) [Value](../v/value.md). +3. **[Index](../i/index_instrument.md) [Value](../v/value.md)**: (Current [Market](../m/market.md) Cap / Base [Market](../m/market.md) Cap) * Base [Index](../i/index_instrument.md) [Value](../v/value.md). -The [base year](../b/base_year.md) for calculating the Sensex is 1978–79, and the base [index](../i/index.md) [value](../v/value.md) is set to 100. The formula ensures that the Sensex reflects real [market](../m/market.md) movements and is not overly influenced by individual companies. +The [base year](../b/base_year.md) for calculating the Sensex is 1978–79, and the base [index](../i/index_instrument.md) [value](../v/value.md) is set to 100. The formula ensures that the Sensex reflects real [market](../m/market.md) movements and is not overly influenced by individual companies. ## Significance in Financial Markets @@ -42,7 +42,7 @@ The [base year](../b/base_year.md) for calculating the Sensex is 1978–79, and The Sensex serves as a barometer for [investor](../i/investor.md) sentiment. A rising Sensex usually signifies economic confidence, whereas a falling Sensex could indicate [market](../m/market.md) pessimism. ### Benchmark for Funds -Many mutual funds and [Exchange](../e/exchange.md)-Traded Funds (ETFs) use the Sensex as a [benchmark](../b/benchmark.md). The performance of these funds is often compared against the [index](../i/index.md) to evaluate their effectiveness. +Many mutual funds and [Exchange](../e/exchange.md)-Traded Funds (ETFs) use the Sensex as a [benchmark](../b/benchmark.md). The performance of these funds is often compared against the [index](../i/index_instrument.md) to evaluate their effectiveness. ### Financial Instruments The Sensex is also the [basis](../b/basis.md) for various financial instruments such as [derivatives](../d/derivatives.md)—[futures](../f/futures.md) and [options](../o/options.md) contracts—allowing for hedging and speculative strategies. diff --git a/en/pedia/s/sentiment-driven_trading.md b/en/pedia/s/sentiment-driven_trading.md index 2aa95161..abf21f68 100644 --- a/en/pedia/s/sentiment-driven_trading.md +++ b/en/pedia/s/sentiment-driven_trading.md @@ -32,9 +32,9 @@ Various techniques are employed to analyze sentiment from textual data: Sentiment indexes and indicators are tools that summarize sentiment data into actionable metrics: -1. **[Fear and Greed Index](../f/fear_and_greed_index.md)**: Developed by CNNMoney, this [index](../i/index.md) measures [market sentiment](../m/market_sentiment.md) on a scale from extreme fear to extreme greed, based on factors like [volatility](../v/volatility.md), stock price strength, and trading [volume](../v/volume.md). -2. **VIX ([Volatility](../v/volatility.md) [Index](../i/index.md))**: Also known as the "fear gauge," the VIX measures implied [volatility](../v/volatility.md) and is often used as an [indicator](../i/indicator.md) of [market risk](../m/market_risk.md) and sentiment. -3. **Sentix [Index](../i/index.md)**: This [index](../i/index.md) provides a comprehensive measure of [investor](../i/investor.md) sentiment across various [asset](../a/asset.md) classes like [stocks](../s/stock.md), bonds, and currencies. +1. **[Fear and Greed Index](../f/fear_and_greed_index.md)**: Developed by CNNMoney, this [index](../i/index_instrument.md) measures [market sentiment](../m/market_sentiment.md) on a scale from extreme fear to extreme greed, based on factors like [volatility](../v/volatility.md), stock price strength, and trading [volume](../v/volume.md). +2. **VIX ([Volatility](../v/volatility.md) [Index](../i/index_instrument.md))**: Also known as the "fear gauge," the VIX measures implied [volatility](../v/volatility.md) and is often used as an [indicator](../i/indicator.md) of [market risk](../m/market_risk.md) and sentiment. +3. **Sentix [Index](../i/index_instrument.md)**: This [index](../i/index_instrument.md) provides a comprehensive measure of [investor](../i/investor.md) sentiment across various [asset](../a/asset.md) classes like [stocks](../s/stock.md), bonds, and currencies. ### Challenges in Sentiment-Driven Trading diff --git a/en/pedia/s/sentiment_indicators_in_trading.md b/en/pedia/s/sentiment_indicators_in_trading.md index 934b6873..42dddf56 100644 --- a/en/pedia/s/sentiment_indicators_in_trading.md +++ b/en/pedia/s/sentiment_indicators_in_trading.md @@ -29,7 +29,7 @@ In [financial markets](../f/financial_market.md), [sentiment indicators](../s/se ### Volatility Index (VIX) -1. **VIX:** Known as the "fear gauge," the [Volatility](../v/volatility.md) [Index](../i/index.md) measures [market](../m/market.md) [volatility](../v/volatility.md) and is often inversely correlated with the [market](../m/market.md)'s performance. +1. **VIX:** Known as the "fear gauge," the [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) measures [market](../m/market.md) [volatility](../v/volatility.md) and is often inversely correlated with the [market](../m/market.md)'s performance. ### Social Media Sentiment @@ -67,19 +67,19 @@ Website: [AAII Sentiment Survey](https://www.aaii.com/sentimentsurvey) ### CNN Fear & Greed Index -The Fear & Greed [Index](../i/index.md) by CNN [Business](../b/business.md) is designed to measure the primary emotions driving the [market](../m/market.md). It tracks seven different factors including the stock [price momentum](../p/price_momentum.md), stock price strength, stock price breadth, [market](../m/market.md) [volatility](../v/volatility.md), [safe haven](../s/safe_haven.md) [demand](../d/demand.md), [junk bond](../j/junk_bond.md) [demand](../d/demand.md), and [market](../m/market.md) [momentum](../m/momentum.md). +The Fear & Greed [Index](../i/index_instrument.md) by CNN [Business](../b/business.md) is designed to measure the primary emotions driving the [market](../m/market.md). It tracks seven different factors including the stock [price momentum](../p/price_momentum.md), stock price strength, stock price breadth, [market](../m/market.md) [volatility](../v/volatility.md), [safe haven](../s/safe_haven.md) [demand](../d/demand.md), [junk bond](../j/junk_bond.md) [demand](../d/demand.md), and [market](../m/market.md) [momentum](../m/momentum.md). Website: [CNN Fear & Greed Index](https://money.cnn.com/data/fear-and-greed/) ### Investors Intelligence Sentiment Index -Investors Intelligence analyzes over 100 investment newsletters to produce a sentiment [index](../i/index.md). This report categorizes the newsletters as bullish, bearish, or calling for a [correction](../c/correction.md), [offering](../o/offering.md) a snapshot of the prevailing sentiment among [market](../m/market.md) analysts. +Investors Intelligence analyzes over 100 investment newsletters to produce a sentiment [index](../i/index_instrument.md). This report categorizes the newsletters as bullish, bearish, or calling for a [correction](../c/correction.md), [offering](../o/offering.md) a snapshot of the prevailing sentiment among [market](../m/market.md) analysts. Website: [Investors Intelligence](https://www.investorsintelligence.com/x/us_advisors_sentiment.html) ### NAAIM Exposure Index -The National Association of Active Investment Managers (NAAIM) Exposure [Index](../i/index.md) represents the average exposure to US [equity](../e/equity.md) markets reported by its members. It provides a gauge of the sentiment among professional active [asset](../a/asset.md) managers. +The National Association of Active Investment Managers (NAAIM) Exposure [Index](../i/index_instrument.md) represents the average exposure to US [equity](../e/equity.md) markets reported by its members. It provides a gauge of the sentiment among professional active [asset](../a/asset.md) managers. Website: [NAAIM Exposure Index](https://www.naaim.org/programs/naaim-exposure-index/) diff --git a/en/pedia/s/sentiment_surveys.md b/en/pedia/s/sentiment_surveys.md index 5244ce47..8729f230 100644 --- a/en/pedia/s/sentiment_surveys.md +++ b/en/pedia/s/sentiment_surveys.md @@ -25,17 +25,17 @@ These surveys assess the sentiment among [business](../b/business.md) executives - **ISM [Manufacturing](../m/manufacturing.md) Survey:** Conducted by the Institute for [Supply](../s/supply.md) Management, it measures the sentiment of purchasing managers in the [manufacturing](../m/manufacturing.md) sector. [ISM Manufacturing Survey](https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/pmi/july/) -- **National Federation of Independent [Business](../b/business.md) (NFIB) Small [Business](../b/business.md) Optimism [Index](../i/index.md):** Measures the sentiment of small [business](../b/business.md) owners in the United States. +- **National Federation of Independent [Business](../b/business.md) (NFIB) Small [Business](../b/business.md) Optimism [Index](../i/index_instrument.md):** Measures the sentiment of small [business](../b/business.md) owners in the United States. [NFIB Small Business Optimism Index](https://www.nfib.com/surveys/small-business-economic-trends/) ### 2.3. Consumer Sentiment Surveys These surveys reflect the sentiment of consumers, who are essential drivers of the [economy](../e/economy.md). -- **University of Michigan Consumer Sentiment [Index](../i/index.md) (UMCSI):** Widely followed for its insights into U.S. consumer sentiment, this survey asks about consumers' financial conditions and attitudes about the [economy](../e/economy.md). +- **University of Michigan Consumer Sentiment [Index](../i/index_instrument.md) (UMCSI):** Widely followed for its insights into U.S. consumer sentiment, this survey asks about consumers' financial conditions and attitudes about the [economy](../e/economy.md). [UMCSI](http://www.sca.isr.umich.edu/) -- **Conference Board Consumer Confidence [Index](../i/index.md):** Measures the level of confidence that consumers have in economic activities. +- **Conference Board Consumer Confidence [Index](../i/index_instrument.md):** Measures the level of confidence that consumers have in economic activities. [Conference Board Consumer Confidence Index](https://www.conference-board.org/data/consumerconfidence.cfm) ### 2.4. Financial Market Sentiment Surveys diff --git a/en/pedia/s/sentiment_trading_strategies.md b/en/pedia/s/sentiment_trading_strategies.md index c25b8099..424a2470 100644 --- a/en/pedia/s/sentiment_trading_strategies.md +++ b/en/pedia/s/sentiment_trading_strategies.md @@ -49,7 +49,7 @@ There are various ways to gauge [market sentiment](../m/market_sentiment.md), an ### 3. **Sentiment Indices** - **Description**: These indices aggregate sentiment scores from [multiple](../m/multiple.md) sources to provide a holistic view of [market sentiment](../m/market_sentiment.md). - - **Example**: The VIX [Index](../i/index.md), although not sentiment-based, is often considered a "fear gauge" for the [market](../m/market.md). + - **Example**: The VIX [Index](../i/index_instrument.md), although not sentiment-based, is often considered a "fear gauge" for the [market](../m/market.md). ## Implementation of Sentiment Trading Strategies diff --git a/en/pedia/s/series_i_bond.md b/en/pedia/s/series_i_bond.md index cd20aca6..dea7e1bb 100644 --- a/en/pedia/s/series_i_bond.md +++ b/en/pedia/s/series_i_bond.md @@ -13,7 +13,7 @@ The [U.S. Treasury](../u/u.s._treasury.md) introduced I Bonds to provide America The [interest rate](../i/interest_rate.md) on an I [Bond](../b/bond.md) consists of two parts: a fixed rate and an [inflation](../i/inflation.md) rate. - **Fixed Rate**: The fixed rate remains the same for the life of the [bond](../b/bond.md). It is determined at the time of purchase and is influenced by prevailing [interest](../i/interest.md) rates and [economic conditions](../e/economic_conditions.md). -- **[Inflation](../i/inflation.md) Rate**: The [inflation](../i/inflation.md) rate is adjusted semi-annually (every May and November) based on changes in the Consumer Price [Index](../i/index.md) for All Urban Consumers (CPI-U). This rate helps to ensure the [bond](../b/bond.md)’s [value](../v/value.md) keeps up with [inflation](../i/inflation.md). +- **[Inflation](../i/inflation.md) Rate**: The [inflation](../i/inflation.md) rate is adjusted semi-annually (every May and November) based on changes in the Consumer Price [Index](../i/index_instrument.md) for All Urban Consumers (CPI-U). This rate helps to ensure the [bond](../b/bond.md)’s [value](../v/value.md) keeps up with [inflation](../i/inflation.md). The composite rate combines these two rates and is calculated using the following formula: \[ \text{Composite Rate} = \text{Fixed Rate} + (2 \times \text{[Inflation](../i/inflation.md) Rate}) + (\text{Fixed Rate} \times \text{[Inflation](../i/inflation.md) Rate}) \] diff --git a/en/pedia/s/shanghai_stock_exchange_(sse).md b/en/pedia/s/shanghai_stock_exchange_(sse).md index ccd3a7de..af3b0320 100644 --- a/en/pedia/s/shanghai_stock_exchange_(sse).md +++ b/en/pedia/s/shanghai_stock_exchange_(sse).md @@ -64,15 +64,15 @@ Although still in nascent stages, the SSE is expanding its [derivatives](../d/de ### SSE Composite Index -The SSE Composite [Index](../i/index.md) is the most widely recognized [index](../i/index.md), representing all [listed](../l/listed.md) [stocks](../s/stock.md) on the SSE. It serves as a key [benchmark](../b/benchmark.md) for investors tracking the performance of the Shanghai [stock market](../s/stock_market.md). +The SSE Composite [Index](../i/index_instrument.md) is the most widely recognized [index](../i/index_instrument.md), representing all [listed](../l/listed.md) [stocks](../s/stock.md) on the SSE. It serves as a key [benchmark](../b/benchmark.md) for investors tracking the performance of the Shanghai [stock market](../s/stock_market.md). ### SSE 50 Index -The SSE 50 [Index](../i/index.md) includes the top 50 [stocks](../s/stock.md) by [market capitalization](../m/market_capitalization.md) and [liquidity](../l/liquidity.md), providing a snapshot of the performance of [large-cap stocks](../l/large_cap_stocks.md) on the [exchange](../e/exchange.md). +The SSE 50 [Index](../i/index_instrument.md) includes the top 50 [stocks](../s/stock.md) by [market capitalization](../m/market_capitalization.md) and [liquidity](../l/liquidity.md), providing a snapshot of the performance of [large-cap stocks](../l/large_cap_stocks.md) on the [exchange](../e/exchange.md). ### STAR Market Indices -The STAR [Market](../m/market.md) indices, such as the STAR 50 [Index](../i/index.md), focus on high-growth sectors, primarily technology and innovation-driven companies. +The STAR [Market](../m/market.md) indices, such as the STAR 50 [Index](../i/index_instrument.md), focus on high-growth sectors, primarily technology and innovation-driven companies. ## Technological Infrastructure diff --git a/en/pedia/s/share_price_analysis.md b/en/pedia/s/share_price_analysis.md index 6f067176..6ae4f326 100644 --- a/en/pedia/s/share_price_analysis.md +++ b/en/pedia/s/share_price_analysis.md @@ -36,7 +36,7 @@ Share price analysis is a critical aspect of [financial markets](../f/financial_ 2. **Indicators** - **Moving Averages**: Smooth out price data to identify the direction of the [trend](../t/trend.md). - - **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measures the speed and change of price movements. + - **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measures the speed and change of price movements. - **MACD (Moving Average Convergence [Divergence](../d/divergence.md))**: Shows the relationship between two moving averages. 3. **Patterns** diff --git a/en/pedia/s/shares.md b/en/pedia/s/shares.md index f1064005..02465d15 100644 --- a/en/pedia/s/shares.md +++ b/en/pedia/s/shares.md @@ -112,7 +112,7 @@ Rights issues allow existing shareholders to purchase additional shares at a dis ### Technical Analysis -[Technical analysis](../t/technical_analysis.md) uses historical price and [volume](../v/volume.md) data to predict future price movements. Traders employing this method utilize charts and various indicators like moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and MACD. +[Technical analysis](../t/technical_analysis.md) uses historical price and [volume](../v/volume.md) data to predict future price movements. Traders employing this method utilize charts and various indicators like moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and MACD. ### Quantitative Analysis diff --git a/en/pedia/s/shenzhen_stock_exchange_(szse).md b/en/pedia/s/shenzhen_stock_exchange_(szse).md index ec333169..52512ace 100644 --- a/en/pedia/s/shenzhen_stock_exchange_(szse).md +++ b/en/pedia/s/shenzhen_stock_exchange_(szse).md @@ -41,11 +41,11 @@ As of recent reports, the SZSE hosts more than 2,300 [listed](../l/listed.md) co The Shenzhen Stock [Exchange](../e/exchange.md) offers numerous indices to track the performance of different segments of the [market](../m/market.md): -- **SZSE Component [Index](../i/index.md) (深证成指):** +- **SZSE Component [Index](../i/index_instrument.md) (深证成指):** - Tracks 500 representative [stocks](../s/stock.md) chosen from the Shenzhen Main Board and SME Board. -- **ChiNext [Index](../i/index.md) (创业板指数):** +- **ChiNext [Index](../i/index_instrument.md) (创业板指数):** - Follows the top 100 companies [listed](../l/listed.md) on the ChiNext [Market](../m/market.md). -- **SME [Index](../i/index.md) (中小板指数):** +- **SME [Index](../i/index_instrument.md) (中小板指数):** - Comprises 100 [stocks](../s/stock.md) from the SME Board. - **Sectoral Indices:** - Includes indices focusing on specific sectors like [finance](../f/finance.md), healthcare, technology, etc. diff --git a/en/pedia/s/short-term_trading.md b/en/pedia/s/short-term_trading.md index 344051f9..c3e6a658 100644 --- a/en/pedia/s/short-term_trading.md +++ b/en/pedia/s/short-term_trading.md @@ -29,7 +29,7 @@ Short-term trading refers to the strategies and actions that involve buying and * **Popular Tools:** * Moving Averages - * [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) + * [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) * [Bollinger Bands](../b/bollinger_bands.md) * MACD (Moving Average Convergence [Divergence](../d/divergence.md)) diff --git a/en/pedia/s/short_butterfly_spread.md b/en/pedia/s/short_butterfly_spread.md index 2581d8af..d603c041 100644 --- a/en/pedia/s/short_butterfly_spread.md +++ b/en/pedia/s/short_butterfly_spread.md @@ -8,7 +8,7 @@ A Short [Butterfly Spread](../b/butterfly_spread.md) is an [options](../o/option ### Key Elements: -1. **[Underlying Asset](../u/underlying_asset.md)**: The [financial instrument](../f/financial_instrument.md) on which [options](../o/options.md) are written, such as a stock, [index](../i/index.md), or [commodity](../c/commodity.md). +1. **[Underlying Asset](../u/underlying_asset.md)**: The [financial instrument](../f/financial_instrument.md) on which [options](../o/options.md) are written, such as a stock, [index](../i/index_instrument.md), or [commodity](../c/commodity.md). 2. **[Options](../o/options.md)**: Financial [derivatives](../d/derivatives.md) that provide the buyer with the right, but not the obligation, to buy or sell the [underlying asset](../u/underlying_asset.md) at a predetermined price before or on a specific date. 3. **Strike Prices**: Prices at which [options](../o/options.md) may be exercised. 4. **[Expiration Date](../e/expiration_date.md)**: The date on which the option expires. diff --git a/en/pedia/s/short_call_spread.md b/en/pedia/s/short_call_spread.md index dbc270ff..01fbac28 100644 --- a/en/pedia/s/short_call_spread.md +++ b/en/pedia/s/short_call_spread.md @@ -26,7 +26,7 @@ The [Short Call](../s/short_call.md) Spread, also known as a [Bear Call Spread]( To construct a [Short Call](../s/short_call.md) Spread, you need to follow these steps: -1. **Select the [Underlying Asset](../u/underlying_asset.md):** This could be a stock, [index](../i/index.md), ETF, etc. +1. **Select the [Underlying Asset](../u/underlying_asset.md):** This could be a stock, [index](../i/index_instrument.md), ETF, etc. 2. **Choose the [Expiration Date](../e/expiration_date.md):** Select the [expiration date](../e/expiration_date.md) for the [options](../o/options.md). 3. **Determine the Strike Prices:** Decide on the strike prices for the [short call](../s/short_call.md) (lower strike, K1) and the long call (higher strike, K2). 4. **Sell a [Call Option](../c/call_option.md):** Sell a [call option](../c/call_option.md) with the lower [strike price](../s/strike_price.md) (K1). diff --git a/en/pedia/s/short_hedge_strategies.md b/en/pedia/s/short_hedge_strategies.md index ee4e0429..8bc95027 100644 --- a/en/pedia/s/short_hedge_strategies.md +++ b/en/pedia/s/short_hedge_strategies.md @@ -80,7 +80,7 @@ In the forex [market](../m/market.md), traders can [hedge](../h/hedge.md) agains ### 4.4. Index Futures -Investors holding a diversified portfolio might use [index futures](../i/index_futures.md) to create a macro-[hedge](../h/hedge.md) against [market](../m/market.md)-wide declines. By shorting an [index](../i/index.md) future, they protect the overall [value](../v/value.md) of their diversified investments. +Investors holding a diversified portfolio might use [index futures](../i/index_futures.md) to create a macro-[hedge](../h/hedge.md) against [market](../m/market.md)-wide declines. By shorting an [index](../i/index_instrument.md) future, they protect the overall [value](../v/value.md) of their diversified investments. ## 5. Key Considerations diff --git a/en/pedia/s/short_put.md b/en/pedia/s/short_put.md index e9c5b8f1..fdb594bf 100644 --- a/en/pedia/s/short_put.md +++ b/en/pedia/s/short_put.md @@ -2,7 +2,7 @@ ## Introduction to the Short Put Strategy -In the world of trading and [finance](../f/finance.md), especially within [options](../o/options.md) trading, the "Short Put" is a widely used strategy. This strategy involves selling [put options](../p/put_options.md) on a [security](../s/security.md) or an [index](../i/index.md) with the expectation that the price of the [underlying asset](../u/underlying_asset.md) [will](../w/will.md) remain stable or increase. By doing so, the [trader](../t/trader.md) seeks to generate [income](../i/income.md) from the [premium](../p/premium.md) received from selling the [put options](../p/put_options.md). +In the world of trading and [finance](../f/finance.md), especially within [options](../o/options.md) trading, the "Short Put" is a widely used strategy. This strategy involves selling [put options](../p/put_options.md) on a [security](../s/security.md) or an [index](../i/index_instrument.md) with the expectation that the price of the [underlying asset](../u/underlying_asset.md) [will](../w/will.md) remain stable or increase. By doing so, the [trader](../t/trader.md) seeks to generate [income](../i/income.md) from the [premium](../p/premium.md) received from selling the [put options](../p/put_options.md). ## Understanding Put Options diff --git a/en/pedia/s/short_put_strategies.md b/en/pedia/s/short_put_strategies.md index 612029a0..822537b0 100644 --- a/en/pedia/s/short_put_strategies.md +++ b/en/pedia/s/short_put_strategies.md @@ -15,7 +15,7 @@ When an [investor](../i/investor.md) sells a [put option](../p/put.md), they are 1. **[Strike Price](../s/strike_price.md)**: The price at which the [underlying asset](../u/underlying_asset.md) can be bought if the option is exercised. 2. **[Premium](../p/premium.md)**: The [income](../i/income.md) received from selling the [put option](../p/put.md). 3. **[Expiration Date](../e/expiration_date.md)**: The date on which the option expires, and the obligation ceases if not exercised. -4. **[Underlying Asset](../u/underlying_asset.md)**: The [financial instrument](../f/financial_instrument.md) (e.g., stock, [index](../i/index.md)) on which the [put option](../p/put.md) is written. +4. **[Underlying Asset](../u/underlying_asset.md)**: The [financial instrument](../f/financial_instrument.md) (e.g., stock, [index](../i/index_instrument.md)) on which the [put option](../p/put.md) is written. ### Example Scenario diff --git a/en/pedia/s/short_selling.md b/en/pedia/s/short_selling.md index 428b382c..eaa2c9de 100644 --- a/en/pedia/s/short_selling.md +++ b/en/pedia/s/short_selling.md @@ -40,7 +40,7 @@ However, if the price of XYZ Corp rises to $120 per share, the [investor](../i/i ### Hedging -Short selling is often used as a hedging tool by investors to protect against potential losses in other investments. For example, if an [investor](../i/investor.md) holds a large portfolio of [stocks](../s/stock.md), they might short sell a correlated [index](../i/index.md) to mitigate the impact of [market](../m/market.md) downturns. +Short selling is often used as a hedging tool by investors to protect against potential losses in other investments. For example, if an [investor](../i/investor.md) holds a large portfolio of [stocks](../s/stock.md), they might short sell a correlated [index](../i/index_instrument.md) to mitigate the impact of [market](../m/market.md) downturns. ### Speculation @@ -140,7 +140,7 @@ Successful short selling requires a deep understanding of the [market](../m/mark Short sellers often use [technical analysis](../t/technical_analysis.md) to identify potential shorting opportunities. Key tools include: -- **[Technical Indicators](../t/technical_indicators.md)**: Moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) can signal potential reversals or [overbought](../o/overbought.md) conditions. +- **[Technical Indicators](../t/technical_indicators.md)**: Moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) can signal potential reversals or [overbought](../o/overbought.md) conditions. - **[Chart Patterns](../c/chart_patterns.md)**: Patterns such as head and shoulders, double tops, and bearish flags can indicate a potential price decline. diff --git a/en/pedia/s/short_straddle.md b/en/pedia/s/short_straddle.md index 6d9c4f27..03947efe 100644 --- a/en/pedia/s/short_straddle.md +++ b/en/pedia/s/short_straddle.md @@ -4,7 +4,7 @@ A short [straddle](../s/straddle.md) is an [options](../o/options.md) [trading s ## Components of a Short Straddle -1. **[Underlying Asset](../u/underlying_asset.md)**: The financial [security](../s/security.md) or [commodity](../c/commodity.md) on which the [options](../o/options.md) are based. This could be a stock, an [index](../i/index.md), a [currency](../c/currency.md) pair, or any other tradeable instrument. +1. **[Underlying Asset](../u/underlying_asset.md)**: The financial [security](../s/security.md) or [commodity](../c/commodity.md) on which the [options](../o/options.md) are based. This could be a stock, an [index](../i/index_instrument.md), a [currency](../c/currency.md) pair, or any other tradeable instrument. 2. **[Call Option](../c/call_option.md)**: A financial contract that gives the buyer the right, but not the obligation, to purchase the [underlying asset](../u/underlying_asset.md) at a predefined [strike price](../s/strike_price.md) before or at the [expiration date](../e/expiration_date.md). 3. **[Put Option](../p/put.md)**: A financial contract that gives the buyer the right, but not the obligation, to sell the [underlying asset](../u/underlying_asset.md) at a predefined [strike price](../s/strike_price.md) before or at the [expiration date](../e/expiration_date.md). 4. **[Strike Price](../s/strike_price.md)**: The fixed price at which the call and [put options](../p/put_options.md) can be exercised. diff --git a/en/pedia/s/shutdown_points.md b/en/pedia/s/shutdown_points.md index 8063567c..6840f372 100644 --- a/en/pedia/s/shutdown_points.md +++ b/en/pedia/s/shutdown_points.md @@ -15,7 +15,7 @@ A shutdown point is a pre-determined threshold at which trading is automatically ### 1. Circuit Breakers Circuit breakers are regulatory measures that halt trading temporarily during substantial declines or rises in the broader [market](../m/market.md). They come in various levels, typically categorized as: -- **Level 1 Circuit Breaker**: A 7% decline in the S&P 500 [Index](../i/index.md) [will](../w/will.md) result in a 15-minute [trading halt](../t/trading_halt.md) if it occurs before 3:25 PM Eastern Time. +- **Level 1 Circuit Breaker**: A 7% decline in the S&P 500 [Index](../i/index_instrument.md) [will](../w/will.md) result in a 15-minute [trading halt](../t/trading_halt.md) if it occurs before 3:25 PM Eastern Time. - **Level 2 Circuit Breaker**: A 13% decline [will](../w/will.md) trigger a similar halt under the same time constraints. - **Level 3 Circuit Breaker**: A 20% decline [will](../w/will.md) stop trading for the remainder of the trading day, regardless of the time. diff --git a/en/pedia/s/signal_analysis.md b/en/pedia/s/signal_analysis.md index 80cf77c1..5563be93 100644 --- a/en/pedia/s/signal_analysis.md +++ b/en/pedia/s/signal_analysis.md @@ -13,7 +13,7 @@ Signal analysis is the process of examining and interpreting various data points Technical signals are based on historical price and [volume](../v/volume.md) data. Analysts use charting tools to detect patterns and signals that might suggest where the price of a [security](../s/security.md) is headed. Common technical signals include: - **Moving Averages:** The average price of a [security](../s/security.md) over a specific number of periods, which smoothens out short-term fluctuations and highlights longer-term trends. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** An [oscillator](../o/oscillator.md) that measures the speed and change of price movements, indicating [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** An [oscillator](../o/oscillator.md) that measures the speed and change of price movements, indicating [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **[Bollinger Bands](../b/bollinger_bands.md):** Bands plotted at [standard deviation](../s/standard_deviation.md) levels above and below a moving average, showing [volatility](../v/volatility.md) levels. ### 2.2 Fundamental Signals diff --git a/en/pedia/s/signal_detection_in_trading.md b/en/pedia/s/signal_detection_in_trading.md index 15aabf12..b5a4f100 100644 --- a/en/pedia/s/signal_detection_in_trading.md +++ b/en/pedia/s/signal_detection_in_trading.md @@ -41,7 +41,7 @@ Different methods are used in signal detection, and these [range](../r/range.md) [Technical analysis](../t/technical_analysis.md) involves using historical price and [volume](../v/volume.md) data to identify patterns. Tools used include: - **Moving Averages**: Identifying trends in [market](../m/market.md) data. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Analyzing [momentum](../m/momentum.md). +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Analyzing [momentum](../m/momentum.md). - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: Identifying directional changes. - **[Bollinger Bands](../b/bollinger_bands.md)**: Identifying [volatility](../v/volatility.md). diff --git a/en/pedia/s/signal_processing_in_trading.md b/en/pedia/s/signal_processing_in_trading.md index 860db6f7..d05b51b4 100644 --- a/en/pedia/s/signal_processing_in_trading.md +++ b/en/pedia/s/signal_processing_in_trading.md @@ -6,7 +6,7 @@ Signal processing is a critical component of [algorithmic trading](../a/algorith In the realm of trading, signals can be broadly categorized as: -1. **Technical Signals:** Derived from [technical analysis](../t/technical_analysis.md), these signals are based on historical price data, trading volumes, and other trading indicators. Common technical signals include moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md). +1. **Technical Signals:** Derived from [technical analysis](../t/technical_analysis.md), these signals are based on historical price data, trading volumes, and other trading indicators. Common technical signals include moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md). 2. **Fundamental Signals:** Based on [fundamental analysis](../f/fundamental_analysis.md), these signals consider [economic indicators](../e/economic_indicators.md), [financial statements](../f/financial_statements.md), [interest](../i/interest.md) rates, and other macroeconomic factors. They help in assessing an [asset](../a/asset.md)'s [intrinsic value](../i/intrinsic_value.md). diff --git a/en/pedia/s/simple_moving_average_(sma).md b/en/pedia/s/simple_moving_average_(sma).md index 966da280..6e12bf5e 100644 --- a/en/pedia/s/simple_moving_average_(sma).md +++ b/en/pedia/s/simple_moving_average_(sma).md @@ -54,7 +54,7 @@ SMAs also play a crucial role in [mean reversion](../m/mean_reversion.md) strate ### Filtering Signals -SMAs can be employed to filter signals from other [technical analysis](../t/technical_analysis.md) tools. For example, traders might combine SMA with RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)) to validate signals, improving [trade](../t/trade.md) accuracy. +SMAs can be employed to filter signals from other [technical analysis](../t/technical_analysis.md) tools. For example, traders might combine SMA with RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)) to validate signals, improving [trade](../t/trade.md) accuracy. ## Advantages of SMA diff --git a/en/pedia/s/simple_trend_analysis.md b/en/pedia/s/simple_trend_analysis.md index 65e294f1..c8620744 100644 --- a/en/pedia/s/simple_trend_analysis.md +++ b/en/pedia/s/simple_trend_analysis.md @@ -27,7 +27,7 @@ Moving Averages (MA) are used to smooth out price data and highlight trends over ### 5. Technical Indicators Several [technical indicators](../t/technical_indicators.md) are employed in [trend analysis](../t/trend_analysis.md): -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** Measures the speed and change of price movements, indicating [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** Measures the speed and change of price movements, indicating [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD):** Shows the relationship between two EMAs. When the MACD crosses above its signal line, it generates bullish signals, and vice versa. ## Examples of Simple Trend Analysis Strategies diff --git a/en/pedia/s/simulated_annealing.md b/en/pedia/s/simulated_annealing.md index b5e1e8a6..8a3cc398 100644 --- a/en/pedia/s/simulated_annealing.md +++ b/en/pedia/s/simulated_annealing.md @@ -38,7 +38,7 @@ In [algorithmic trading](../a/algorithmic_trading.md), simulated annealing can o ### 1. Parameter Optimization -[Trading strategies](../t/trading_strategies.md) often involve [multiple](../m/multiple.md) parameters like moving average periods, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI) thresholds, and stop-loss levels. Simulated annealing can find the optimal combination of these parameters to maximize returns or minimize [risk](../r/risk.md). +[Trading strategies](../t/trading_strategies.md) often involve [multiple](../m/multiple.md) parameters like moving average periods, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI) thresholds, and stop-loss levels. Simulated annealing can find the optimal combination of these parameters to maximize returns or minimize [risk](../r/risk.md). ### 2. Portfolio Optimization @@ -71,7 +71,7 @@ def calculate_return(params, data): data['signal'][short_window:] = np.where(data['short_mavg'][short_window:] > data['long_mavg'][short_window:], 1.0, 0.0) data['positions'] = data['signal'].diff() initial_capital = [float](../f/float.md)(100000.0) - positions = pd.DataFrame([index](../i/index.md)=data.[index](../i/index.md)).fillna(0.0) + positions = pd.DataFrame([index](../i/index_instrument.md)=data.[index](../i/index_instrument.md)).fillna(0.0) positions['AAPL'] = data['signal'] portfolio = positions.multiply(data['Close'], axis=0) pos_diff = positions.diff() diff --git a/en/pedia/s/small_caps.md b/en/pedia/s/small_caps.md index defcd4fb..8832126c 100644 --- a/en/pedia/s/small_caps.md +++ b/en/pedia/s/small_caps.md @@ -60,7 +60,7 @@ Adopting a long-term [investment horizon](../i/investment_horizon.md) can help i Given the higher [risk](../r/risk.md) and potential rewards, [active management](../a/active_management.md) can be beneficial for small cap investments. Active managers can respond to [market](../m/market.md) changes and [leverage](../l/leverage.md) their expertise to identify promising opportunities. ### Leveraged ETFs and Index Funds -For investors seeking exposure to small caps without individual stock selection, [leveraged ETFs](../l/leveraged_etfs.md) and [index](../i/index.md) funds focused on small cap [stocks](../s/stock.md) can be an appealing option. These investment vehicles [offer](../o/offer.md) diversified exposure to the sector with varying [risk](../r/risk.md) levels. +For investors seeking exposure to small caps without individual stock selection, [leveraged ETFs](../l/leveraged_etfs.md) and [index](../i/index_instrument.md) funds focused on small cap [stocks](../s/stock.md) can be an appealing option. These investment vehicles [offer](../o/offer.md) diversified exposure to the sector with varying [risk](../r/risk.md) levels. ## Key Indicators for Analyzing Small Cap Stocks @@ -82,10 +82,10 @@ High insider ownership can signal confidence in the company's future prospects. The [Russell 2000 Index](../r/russell_2000_index.md) is one of the most widely recognized small cap benchmarks. It includes the smallest 2,000 securities in the [Russell 3000 Index](../r/russell_3000_index.md), representing a broad spectrum of small cap companies in the United States. ### S&P SmallCap 600 -The S&P SmallCap 600 [Index](../i/index.md) measures the performance of 600 small cap [stocks](../s/stock.md) in the U.S. It is designed to be an accurate representation of the small cap segment and includes [stocks](../s/stock.md) from various sectors. +The S&P SmallCap 600 [Index](../i/index_instrument.md) measures the performance of 600 small cap [stocks](../s/stock.md) in the U.S. It is designed to be an accurate representation of the small cap segment and includes [stocks](../s/stock.md) from various sectors. ### MSCI World Small Cap Index -The MSCI World Small Cap [Index](../i/index.md) provides global exposure, including small cap [stocks](../s/stock.md) from developed markets around the world. This [index](../i/index.md) offers [diversification](../d/diversification.md) beyond domestic small cap investments. +The MSCI World Small Cap [Index](../i/index_instrument.md) provides global exposure, including small cap [stocks](../s/stock.md) from developed markets around the world. This [index](../i/index_instrument.md) offers [diversification](../d/diversification.md) beyond domestic small cap investments. ## Case Studies diff --git a/en/pedia/s/smart_beta.md b/en/pedia/s/smart_beta.md index 76bcb566..14c0ca55 100644 --- a/en/pedia/s/smart_beta.md +++ b/en/pedia/s/smart_beta.md @@ -10,11 +10,11 @@ Smart [Beta](../b/beta.md) is an [investment strategy](../i/investment_strategy. ### Fundamental Indexing -Fundamental [indexing](../i/indexing.md) allocates weights based on fundamental criteria, such as dividends, [earnings](../e/earnings.md), [book value](../b/book_value.md), and sales. This method aims to provide a more rational investment approach compared to traditional [market](../m/market.md) cap-[weighted](../w/weighted.md) indices. For instance, companies with higher [earnings](../e/earnings.md) or more significant dividends receive higher weights in a fundamental [index](../i/index.md). +Fundamental [indexing](../i/indexing.md) allocates weights based on fundamental criteria, such as dividends, [earnings](../e/earnings.md), [book value](../b/book_value.md), and sales. This method aims to provide a more rational investment approach compared to traditional [market](../m/market.md) cap-[weighted](../w/weighted.md) indices. For instance, companies with higher [earnings](../e/earnings.md) or more significant dividends receive higher weights in a fundamental [index](../i/index_instrument.md). ### Equal Weighting -Equal weighting involves assigning equal weights to each of the [index](../i/index.md)'s constituents. This approach helps mitigate the concentration [risk](../r/risk.md) inherent in [market](../m/market.md)-cap [weighted](../w/weighted.md) indices, where a few large companies can dominate the [index](../i/index.md) performance. Equal-[weighted](../w/weighted.md) indices tend to have higher exposure to smaller companies, often overlooked in [market](../m/market.md)-cap [weighted](../w/weighted.md) indices. +Equal weighting involves assigning equal weights to each of the [index](../i/index_instrument.md)'s constituents. This approach helps mitigate the concentration [risk](../r/risk.md) inherent in [market](../m/market.md)-cap [weighted](../w/weighted.md) indices, where a few large companies can dominate the [index](../i/index_instrument.md) performance. Equal-[weighted](../w/weighted.md) indices tend to have higher exposure to smaller companies, often overlooked in [market](../m/market.md)-cap [weighted](../w/weighted.md) indices. ### Low Volatility diff --git a/en/pedia/s/smart_beta_indexes.md b/en/pedia/s/smart_beta_indexes.md index 6bd92b44..c6aec483 100644 --- a/en/pedia/s/smart_beta_indexes.md +++ b/en/pedia/s/smart_beta_indexes.md @@ -20,9 +20,9 @@ - **Selection**: Identify and select securities based on specific factors or criteria. - **Weighting**: Apply alternative weighting schemes (e.g., equal weighting, [factor](../f/factor.md) weighting) rather than traditional [market](../m/market.md)-cap weighting. -- **[Rebalancing](../r/rebalancing.md)**: Periodically rebalance the [index](../i/index.md) to maintain desired [factor](../f/factor.md) exposures and weightings. +- **[Rebalancing](../r/rebalancing.md)**: Periodically rebalance the [index](../i/index_instrument.md) to maintain desired [factor](../f/factor.md) exposures and weightings. -For example, a [smart beta](../s/smart_beta.md) [index](../i/index.md) focusing on the [value factor](../v/value_factor.md) might select [stocks](../s/stock.md) with low price-to-[earnings](../e/earnings.md) ratios and weight them based on their [value](../v/value.md) scores rather than [market](../m/market.md) cap. +For example, a [smart beta](../s/smart_beta.md) [index](../i/index_instrument.md) focusing on the [value factor](../v/value_factor.md) might select [stocks](../s/stock.md) with low price-to-[earnings](../e/earnings.md) ratios and weight them based on their [value](../v/value.md) scores rather than [market](../m/market.md) cap. #### 3. Advantages and Challenges @@ -40,7 +40,7 @@ For example, a [smart beta](../s/smart_beta.md) [index](../i/index.md) focusing ### Prominent Smart Beta Index Providers -Several prominent financial institutions and [index](../i/index.md) providers [offer](../o/offer.md) a [range](../r/range.md) of [smart beta](../s/smart_beta.md) products: +Several prominent financial institutions and [index](../i/index_instrument.md) providers [offer](../o/offer.md) a [range](../r/range.md) of [smart beta](../s/smart_beta.md) products: #### MSCI Inc. @@ -48,7 +48,7 @@ MSCI Inc. (Morgan Stanley [Capital](../c/capital.md) International) is a leading #### FTSE Russell -[FTSE Russell](../f/ftse_russell.md), a subsidiary of the London Stock [Exchange](../e/exchange.md) Group, provides a comprehensive suite of [smart beta](../s/smart_beta.md) indexes through its [FTSE Russell](../f/ftse_russell.md) [Smart Beta](../s/smart_beta.md) [Index](../i/index.md) Series. These indexes track specific factors such as quality, low [volatility](../v/volatility.md), and [yield](../y/yield.md). For more information, visit [FTSE Russell](https://www.ftserussell.com). +[FTSE Russell](../f/ftse_russell.md), a subsidiary of the London Stock [Exchange](../e/exchange.md) Group, provides a comprehensive suite of [smart beta](../s/smart_beta.md) indexes through its [FTSE Russell](../f/ftse_russell.md) [Smart Beta](../s/smart_beta.md) [Index](../i/index_instrument.md) Series. These indexes track specific factors such as quality, low [volatility](../v/volatility.md), and [yield](../y/yield.md). For more information, visit [FTSE Russell](https://www.ftserussell.com). #### S&P Dow Jones Indices diff --git a/en/pedia/s/smart_beta_strategies.md b/en/pedia/s/smart_beta_strategies.md index 16293260..af726638 100644 --- a/en/pedia/s/smart_beta_strategies.md +++ b/en/pedia/s/smart_beta_strategies.md @@ -28,7 +28,7 @@ These strategies use fundamental metrics such as [earnings](../e/earnings.md), d ### Equal-weighted Strategies -In equal-[weighted](../w/weighted.md) strategies, each stock in the [index](../i/index.md) is given an [equal weight](../e/equal_weight.md), regardless of its [market capitalization](../m/market_capitalization.md). This method diversifies the portfolio across a wider [range](../r/range.md) of companies and reduces the concentration [risk](../r/risk.md) associated with [market](../m/market.md)-cap-[weighted](../w/weighted.md) indices. +In equal-[weighted](../w/weighted.md) strategies, each stock in the [index](../i/index_instrument.md) is given an [equal weight](../e/equal_weight.md), regardless of its [market capitalization](../m/market_capitalization.md). This method diversifies the portfolio across a wider [range](../r/range.md) of companies and reduces the concentration [risk](../r/risk.md) associated with [market](../m/market.md)-cap-[weighted](../w/weighted.md) indices. ## Key Players in Smart Beta @@ -103,7 +103,7 @@ This ETF seeks to provide exposure to U.S. [stocks](../s/stock.md) with lower [v ### Vanguard's U.S. Value ETF -Vanguard's U.S. [Value](../v/value.md) ETF seeks to track the performance of the CRSP US Large Cap [Value](../v/value.md) [Index](../i/index.md), which measures the investment [return](../r/return.md) of large-[capitalization](../c/capitalization.md) [value](../v/value.md) [stocks](../s/stock.md). It employs a fundamental-based weighting strategy to focus on [stocks](../s/stock.md) expected to provide higher returns. More information is available at [Vanguard U.S. Value ETF](https://investor.vanguard.com/etf/factors/#/sector). +Vanguard's U.S. [Value](../v/value.md) ETF seeks to track the performance of the CRSP US Large Cap [Value](../v/value.md) [Index](../i/index_instrument.md), which measures the investment [return](../r/return.md) of large-[capitalization](../c/capitalization.md) [value](../v/value.md) [stocks](../s/stock.md). It employs a fundamental-based weighting strategy to focus on [stocks](../s/stock.md) expected to provide higher returns. More information is available at [Vanguard U.S. Value ETF](https://investor.vanguard.com/etf/factors/#/sector). ### Invesco S&P 500 Equal Weight ETF diff --git a/en/pedia/s/social_security.md b/en/pedia/s/social_security.md index 7f299a64..ce925186 100644 --- a/en/pedia/s/social_security.md +++ b/en/pedia/s/social_security.md @@ -49,7 +49,7 @@ The [solvency](../s/solvency.md) of Social [Security](../s/security.md) is a top ## Social Security and Inflation -Social [Security](../s/security.md) benefits are adjusted annually based on the Consumer Price [Index](../i/index.md) for Urban Wage Earners and Clerical Workers (CPI-W). These cost-of-living adjustments (COLAs) aim to preserve the [purchasing power](../p/purchasing_power.md) of beneficiaries in the face of [inflation](../i/inflation.md). +Social [Security](../s/security.md) benefits are adjusted annually based on the Consumer Price [Index](../i/index_instrument.md) for Urban Wage Earners and Clerical Workers (CPI-W). These cost-of-living adjustments (COLAs) aim to preserve the [purchasing power](../p/purchasing_power.md) of beneficiaries in the face of [inflation](../i/inflation.md). ## Social Security and the Economy diff --git a/en/pedia/s/speculation.md b/en/pedia/s/speculation.md index 211c70cf..9f4e990c 100644 --- a/en/pedia/s/speculation.md +++ b/en/pedia/s/speculation.md @@ -42,13 +42,13 @@ Although both speculation and investment aim to [profit](../p/profit.md) from [c Speculators often use various techniques and forms of analysis to make informed decisions: 1. **[Technical Analysis](../t/technical_analysis.md)**: - - Utilizes historical price and [volume](../v/volume.md) data to identify trends, patterns, and signals. Common tools include moving averages, [Bollinger Bands](../b/bollinger_band.md), and [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI). + - Utilizes historical price and [volume](../v/volume.md) data to identify trends, patterns, and signals. Common tools include moving averages, [Bollinger Bands](../b/bollinger_band.md), and [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI). 2. **[Fundamental Analysis](../f/fundamental_analysis.md)**: - Although less common among speculators, some may still look at macroeconomic indicators, [earnings](../e/earnings.md) reports, and other fundamental metrics to make predictions about price movements. 3. **[Sentiment Analysis](../s/sentiment_analysis.md)**: - - Gauges the mood or attitude of the [market](../m/market.md) participants. Speculators may look at indicators like the VIX ([volatility](../v/volatility.md) [index](../i/index.md)) or conduct [social media](../s/social_media.md) analysis. + - Gauges the mood or attitude of the [market](../m/market.md) participants. Speculators may look at indicators like the VIX ([volatility](../v/volatility.md) [index](../i/index_instrument.md)) or conduct [social media](../s/social_media.md) analysis. 4. **[Quantitative Analysis](../q/quantitative_analysis.md)**: - Involves the use of mathematical and statistical models to identify trading opportunities. This is particularly common in algo-trading and fintech applications. diff --git a/en/pedia/s/speculator.md b/en/pedia/s/speculator.md index 6eb0e8e3..7ee583d2 100644 --- a/en/pedia/s/speculator.md +++ b/en/pedia/s/speculator.md @@ -48,7 +48,7 @@ Economic reports, corporate [earnings announcements](../e/earnings_announcements ### Technical Analysis -[Technical analysis](../t/technical_analysis.md) involves studying historical price charts and trading volumes to identify patterns, trends, and potential [market](../m/market.md) reversals. Common tools used in [technical analysis](../t/technical_analysis.md) include moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and [Fibonacci retracement](../f/fibonacci_retracement.md) levels. +[Technical analysis](../t/technical_analysis.md) involves studying historical price charts and trading volumes to identify patterns, trends, and potential [market](../m/market.md) reversals. Common tools used in [technical analysis](../t/technical_analysis.md) include moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and [Fibonacci retracement](../f/fibonacci_retracement.md) levels. ### Fundamental Analysis diff --git a/en/pedia/s/spiders_(spdr).md b/en/pedia/s/spiders_(spdr).md index 239c4766..dce6ad8a 100644 --- a/en/pedia/s/spiders_(spdr).md +++ b/en/pedia/s/spiders_(spdr).md @@ -1,6 +1,6 @@ # SPDRs (Spiders) -SPDRs, also known as "Spiders," stand for Standard & Poor's Depositary [Receipts](../r/receipt.md). They are a type of [Exchange](../e/exchange.md) Traded [Fund](../f/fund.md) (ETF), which has become an indispensable tool for both retail and institutional investors. SPDRs were invented in 1993 by Nathan Most and Steven Bloom at the American Stock [Exchange](../e/exchange.md) as a way to [offer](../o/offer.md) investors a more convenient method of trading the entire S&P 500 [Index](../i/index.md). Let's delve into the various aspects of SPDRs, their importance, structure, benefits, and associated risks. +SPDRs, also known as "Spiders," stand for Standard & Poor's Depositary [Receipts](../r/receipt.md). They are a type of [Exchange](../e/exchange.md) Traded [Fund](../f/fund.md) (ETF), which has become an indispensable tool for both retail and institutional investors. SPDRs were invented in 1993 by Nathan Most and Steven Bloom at the American Stock [Exchange](../e/exchange.md) as a way to [offer](../o/offer.md) investors a more convenient method of trading the entire S&P 500 [Index](../i/index_instrument.md). Let's delve into the various aspects of SPDRs, their importance, structure, benefits, and associated risks. ## Terminology and Definitions @@ -15,16 +15,16 @@ Depositary [receipts](../r/receipt.md) are financial instruments issued by banks ## Structural Composition -The [fund](../f/fund.md)'s structure is designed to mimic the S&P 500 [Index](../i/index.md) by holding all or most of the [stocks](../s/stock.md) that make up the [index](../i/index.md) in the same proportions. Here are some of the key components in understanding the structure of SPDRs: +The [fund](../f/fund.md)'s structure is designed to mimic the S&P 500 [Index](../i/index_instrument.md) by holding all or most of the [stocks](../s/stock.md) that make up the [index](../i/index_instrument.md) in the same proportions. Here are some of the key components in understanding the structure of SPDRs: ### Units of Trade -SPDRs are traded in units, with each unit representing a fraction of the [underlying](../u/underlying.md) [index](../i/index.md). This characteristic allows investors to [gain](../g/gain.md) exposure to a broad [market](../m/market.md) or sector without needing to buy individual [stocks](../s/stock.md). +SPDRs are traded in units, with each unit representing a fraction of the [underlying](../u/underlying.md) [index](../i/index_instrument.md). This characteristic allows investors to [gain](../g/gain.md) exposure to a broad [market](../m/market.md) or sector without needing to buy individual [stocks](../s/stock.md). ### Creation and Redemption Process Authorized participants, usually large institutional entities, create or redeem units of SPDRs by providing the [underlying](../u/underlying.md) basket of [stocks](../s/stock.md) or cash equivalent in [exchange](../e/exchange.md) for units of the ETF. This process helps to maintain ETF prices in line with the [value](../v/value.md) of the [underlying](../u/underlying.md) assets. ### Management -SPDRs are managed passively and typically have lower [expense](../e/expense.md) ratios compared to actively managed mutual funds. They aim to mirror the performance of the [index](../i/index.md) they represent. +SPDRs are managed passively and typically have lower [expense](../e/expense.md) ratios compared to actively managed mutual funds. They aim to mirror the performance of the [index](../i/index_instrument.md) they represent. ### Ticker Symbol The primary SPDR ETF tracking the S&P 500 trades under the [ticker symbol](../t/ticker_symbol.md) SPY. It is one of the oldest and most traded ETFs globally. @@ -52,7 +52,7 @@ Because SPDRs are diversified, they can help in [risk management](../r/risk_mana Like all investments in equities, SPDRs are subject to [market risk](../m/market_risk.md), meaning they can lose [value](../v/value.md) if the [market](../m/market.md) declines. ### Tracking Error -Even though SPDRs aim to replicate the performance of the [underlying](../u/underlying.md) [index](../i/index.md), small discrepancies can arise. These discrepancies, known as tracking errors, can be due to various factors like management fees, timing, and operational inefficiencies. +Even though SPDRs aim to replicate the performance of the [underlying](../u/underlying.md) [index](../i/index_instrument.md), small discrepancies can arise. These discrepancies, known as tracking errors, can be due to various factors like management fees, timing, and operational inefficiencies. ### Liquidity Risk Although generally highly [liquid](../l/liquid.md), there could be situations where the [market](../m/market.md) becomes less [liquid](../l/liquid.md), affecting the ease of trading SPDRs. diff --git a/en/pedia/s/spillover_effect.md b/en/pedia/s/spillover_effect.md index 038496d8..149ce95c 100644 --- a/en/pedia/s/spillover_effect.md +++ b/en/pedia/s/spillover_effect.md @@ -56,7 +56,7 @@ Several econometric methodologies can quantify spillover effects: 1. **Vector Autoregressions (VAR)** 2. **Generalized Autoregressive Conditional [Heteroskedasticity](../h/heteroskedasticity.md) (GARCH) Models** -3. **Diebold and Yilmaz Spillover [Index](../i/index.md)** +3. **Diebold and Yilmaz Spillover [Index](../i/index_instrument.md)** 4. **Co-movement Analysis** ### Vector Autoregressions (VAR) @@ -69,7 +69,7 @@ VAR models capture the linear interdependencies among [multiple](../m/multiple.m ### Diebold and Yilmaz Spillover Index -Developed by Diebold and Yilmaz, this [index](../i/index.md) quantifies total and directional [volatility](../v/volatility.md) spillovers across markets. It is a comprehensive tool for capturing and visualizing the extent and direction of spillover effects. +Developed by Diebold and Yilmaz, this [index](../i/index_instrument.md) quantifies total and directional [volatility](../v/volatility.md) spillovers across markets. It is a comprehensive tool for capturing and visualizing the extent and direction of spillover effects. ### Co-movement Analysis diff --git a/en/pedia/s/spinning_top_candlestick.md b/en/pedia/s/spinning_top_candlestick.md index 324974f6..540b499a 100644 --- a/en/pedia/s/spinning_top_candlestick.md +++ b/en/pedia/s/spinning_top_candlestick.md @@ -84,7 +84,7 @@ As with any [trading strategy](../t/trading_strategy.md), it’s crucial to inco #### Case Study 1: Stock Market -In a historical analysis of a major stock [index](../i/index.md), the S&P 500, the presence of [Spinning Top patterns](../s/spinning_top_patterns.md) was frequently observed at key [market](../m/market.md) turning points. For instance, during the 2007-2008 [financial crisis](../f/financial_crisis.md), several Spinning Top candlesticks appeared before significant [market](../m/market.md) reversals, providing valuable signals for traders. +In a historical analysis of a major stock [index](../i/index_instrument.md), the S&P 500, the presence of [Spinning Top patterns](../s/spinning_top_patterns.md) was frequently observed at key [market](../m/market.md) turning points. For instance, during the 2007-2008 [financial crisis](../f/financial_crisis.md), several Spinning Top candlesticks appeared before significant [market](../m/market.md) reversals, providing valuable signals for traders. #### Case Study 2: Cryptocurrency Market diff --git a/en/pedia/s/spinning_top_patterns.md b/en/pedia/s/spinning_top_patterns.md index 348e093f..cd6a10f4 100644 --- a/en/pedia/s/spinning_top_patterns.md +++ b/en/pedia/s/spinning_top_patterns.md @@ -43,7 +43,7 @@ To maximize the effectiveness of spinning top patterns, traders and developers e #### Confirmatory Signals -Relying on spinning tops exclusively can lead to [false signals](../f/false_signals_in_trading.md). Thus, combining them with other [technical indicators](../t/technical_indicators.md) and patterns, such as moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), or MACD (Moving Average Convergence [Divergence](../d/divergence.md)), can enhance signal accuracy. +Relying on spinning tops exclusively can lead to [false signals](../f/false_signals_in_trading.md). Thus, combining them with other [technical indicators](../t/technical_indicators.md) and patterns, such as moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), or MACD (Moving Average Convergence [Divergence](../d/divergence.md)), can enhance signal accuracy. #### Machine Learning Integration diff --git a/en/pedia/s/spinning_top_reversal.md b/en/pedia/s/spinning_top_reversal.md index f3784366..4985008b 100644 --- a/en/pedia/s/spinning_top_reversal.md +++ b/en/pedia/s/spinning_top_reversal.md @@ -53,7 +53,7 @@ While the Spinning Top is a valuable tool in [technical analysis](../t/technical The Spinning Top can sometimes generate [false signals](../f/false_signals_in_trading.md), especially in volatile or thinly traded markets. Traders should use additional confirmation tools to validate the pattern. ### Complementary Indicators -Using complementary indicators such as Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [Volume analysis](../v/volume_analysis.md) enhances the reliability of the Spinning Top pattern. These indicators provide broader [market](../m/market.md) insights and confirm potential reversals. +Using complementary indicators such as Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [Volume analysis](../v/volume_analysis.md) enhances the reliability of the Spinning Top pattern. These indicators provide broader [market](../m/market.md) insights and confirm potential reversals. ## Conclusion The Spinning Top [Reversal](../r/reversal.md) is a crucial pattern in [technical analysis](../t/technical_analysis.md) and algo trading, helping identify potential [market](../m/market.md) reversals and informing trading decisions. While it offers valuable insights into [market sentiment](../m/market_sentiment.md), traders must use it in conjunction with other indicators and within the broader [market](../m/market.md) context for optimal effectiveness. As technology advances, the integration of the Spinning Top pattern into sophisticated [algorithmic trading](../a/algorithmic_trading.md) systems continues to evolve, providing traders with powerful tools to navigate the complexities of the [financial markets](../f/financial_market.md). diff --git a/en/pedia/s/spread_betting_techniques.md b/en/pedia/s/spread_betting_techniques.md index c1a0cffc..7e6afce0 100644 --- a/en/pedia/s/spread_betting_techniques.md +++ b/en/pedia/s/spread_betting_techniques.md @@ -128,7 +128,7 @@ A leading provider [offering](../o/offering.md) an array of tools for [spread be **[CMC Markets](../c/cmc_markets.md)** ([https://www.cmcmarkets.com](https://www.cmcmarkets.com)) Offers competitive [spreads](../s/spreads.md), an intuitive platform, and useful [risk management](../r/risk_management.md) tools. -**City [Index](../i/index.md)** ([https://www.cityindex.com](https://www.cityindex.com)) +**City [Index](../i/index_instrument.md)** ([https://www.cityindex.com](https://www.cityindex.com)) Provides extensive research tools and a user-friendly platform suitable for both beginners and advanced traders. ### 8. Legal and Ethical Considerations diff --git a/en/pedia/s/standard_&_poor's_(s&p).md b/en/pedia/s/standard_&_poor's_(s&p).md index 93e74e74..26cab4f5 100644 --- a/en/pedia/s/standard_&_poor's_(s&p).md +++ b/en/pedia/s/standard_&_poor's_(s&p).md @@ -26,11 +26,11 @@ S&P is also renowned for its broad array of [market](../m/market.md) indices. On ### S&P 500 -The S&P 500 is a [benchmark](../b/benchmark.md) [index](../i/index.md) widely regarded as one of the best representations of the U.S. [stock market](../s/stock_market.md). It includes companies from [multiple](../m/multiple.md) sectors, which provides a comprehensive snapshot of [market](../m/market.md) trends and economic health. +The S&P 500 is a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) widely regarded as one of the best representations of the U.S. [stock market](../s/stock_market.md). It includes companies from [multiple](../m/multiple.md) sectors, which provides a comprehensive snapshot of [market](../m/market.md) trends and economic health. ### Other Key Indices -- **S&P Global 1200:** A comprehensive, seven-country [index](../i/index.md) that covers major global markets. +- **S&P Global 1200:** A comprehensive, seven-country [index](../i/index_instrument.md) that covers major global markets. - **S&P MidCap 400:** Focuses on mid-sized companies. - **S&P SmallCap 600:** Targets smaller enterprises. diff --git a/en/pedia/s/standard_of_living.md b/en/pedia/s/standard_of_living.md index 88407824..40f8ffc6 100644 --- a/en/pedia/s/standard_of_living.md +++ b/en/pedia/s/standard_of_living.md @@ -60,15 +60,15 @@ Sustainable living practices, including recycling, renewable energy use, and pub ### Human Development Index (HDI) -The Human Development [Index](../i/index.md) (HDI) is a composite statistic of [life expectancy](../l/life_expectancy.md), education, and [per capita](../p/per_capita.md) [income](../i/income.md) indicators, which are used to rank countries into four tiers of human development. A higher HDI signifies a higher standard of living. +The Human Development [Index](../i/index_instrument.md) (HDI) is a composite statistic of [life expectancy](../l/life_expectancy.md), education, and [per capita](../p/per_capita.md) [income](../i/income.md) indicators, which are used to rank countries into four tiers of human development. A higher HDI signifies a higher standard of living. ### Quality of Life Index -The [Quality of Life](../q/quality_of_life.md) [Index](../i/index.md) often includes various indicators such as political stability, job [security](../s/security.md), environmental quality, and [social security](../s/social_security.md). These indices can vary in methodology but generally aim to provide a holistic view of the living standards in different countries. +The [Quality of Life](../q/quality_of_life.md) [Index](../i/index_instrument.md) often includes various indicators such as political stability, job [security](../s/security.md), environmental quality, and [social security](../s/social_security.md). These indices can vary in methodology but generally aim to provide a holistic view of the living standards in different countries. ### Multidimensional Poverty Index (MPI) -The Multidimensional [Poverty](../p/poverty.md) [Index](../i/index.md) (MPI) considers [multiple](../m/multiple.md) deprivations that people face at the same time, including poor health, lack of education, and inadequate living standards. It helps in understanding the depth and nature of [poverty](../p/poverty.md) beyond just [income](../i/income.md) levels. +The Multidimensional [Poverty](../p/poverty.md) [Index](../i/index_instrument.md) (MPI) considers [multiple](../m/multiple.md) deprivations that people face at the same time, including poor health, lack of education, and inadequate living standards. It helps in understanding the depth and nature of [poverty](../p/poverty.md) beyond just [income](../i/income.md) levels. ## Conclusion diff --git a/en/pedia/s/sterling_overnight_interbank_average_rate_(sonia).md b/en/pedia/s/sterling_overnight_interbank_average_rate_(sonia).md index b76e2bd8..9eca7fca 100644 --- a/en/pedia/s/sterling_overnight_interbank_average_rate_(sonia).md +++ b/en/pedia/s/sterling_overnight_interbank_average_rate_(sonia).md @@ -44,7 +44,7 @@ While SONIA and LIBOR are both [benchmark](../b/benchmark.md) [interest](../i/in ## SONIA Compounded Index -To support the use of SONIA in various financial products, the [Bank](../b/bank.md) of England introduced the SONIA Compounded [Index](../i/index.md). This [index](../i/index.md) offers a standardized methodology for calculating compounded [interest](../i/interest.md) rates over a given period using daily SONIA rates. The [index](../i/index.md) is particularly useful for [market](../m/market.md) participants that need a simple and consistent way to calculate compounded [interest](../i/interest.md) for financial instruments like floating-rate notes and syndicated loans. +To support the use of SONIA in various financial products, the [Bank](../b/bank.md) of England introduced the SONIA Compounded [Index](../i/index_instrument.md). This [index](../i/index_instrument.md) offers a standardized methodology for calculating compounded [interest](../i/interest.md) rates over a given period using daily SONIA rates. The [index](../i/index_instrument.md) is particularly useful for [market](../m/market.md) participants that need a simple and consistent way to calculate compounded [interest](../i/interest.md) for financial instruments like floating-rate notes and syndicated loans. ## Implementation and Governance diff --git a/en/pedia/s/stochastic_processes.md b/en/pedia/s/stochastic_processes.md index cf9bfc74..499a2acc 100644 --- a/en/pedia/s/stochastic_processes.md +++ b/en/pedia/s/stochastic_processes.md @@ -12,7 +12,7 @@ A stochastic process is a collection of [random variables](../r/random_variables The two primary types of stochastic processes commonly used in [finance](../f/finance.md) are discrete-time and continuous-time processes. #### Discrete-Time Process -A discrete-time stochastic process is indexed by a discrete set of times, for example, daily stock prices. The process is defined by `{X_n}`, where `n` represents the time [index](../i/index.md). +A discrete-time stochastic process is indexed by a discrete set of times, for example, daily stock prices. The process is defined by `{X_n}`, where `n` represents the time [index](../i/index_instrument.md). #### Continuous-Time Process A continuous-time stochastic process is indexed by a continuous variable, often time. An example is the Wiener process (or Brownian motion) `{W(t)}`, which is used to model the continuous and random movement of stock prices over time. diff --git a/en/pedia/s/stochastic_rsi_(stochrsi).md b/en/pedia/s/stochastic_rsi_(stochrsi).md index a0603ee0..4f5255f2 100644 --- a/en/pedia/s/stochastic_rsi_(stochrsi).md +++ b/en/pedia/s/stochastic_rsi_(stochrsi).md @@ -1,6 +1,6 @@ # Stochastic RSI (StochRSI) -The Stochastic RSI (StochRSI) is a [technical analysis](../t/technical_analysis.md) [indicator](../i/indicator.md) used to determine whether an [asset](../a/asset.md) is [overbought](../o/overbought.md) or [oversold](../o/oversold.md) within a given period. It was developed by Tushar Chande and Stanley Kroll and introduced in their 1994 book, "The New Technical [Trader](../t/trader.md)." The StochRSI is derived from the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) and applies the principles of the [Stochastic Oscillator](../s/stochastic_oscillator.md) to the RSI. This [indicator](../i/indicator.md) enhances traditional RSI by making it more sensitive and reactive to recent [market](../m/market.md) changes, allowing traders to identify potential [trend](../t/trend.md) reversals more swiftly. +The Stochastic RSI (StochRSI) is a [technical analysis](../t/technical_analysis.md) [indicator](../i/indicator.md) used to determine whether an [asset](../a/asset.md) is [overbought](../o/overbought.md) or [oversold](../o/oversold.md) within a given period. It was developed by Tushar Chande and Stanley Kroll and introduced in their 1994 book, "The New Technical [Trader](../t/trader.md)." The StochRSI is derived from the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) and applies the principles of the [Stochastic Oscillator](../s/stochastic_oscillator.md) to the RSI. This [indicator](../i/indicator.md) enhances traditional RSI by making it more sensitive and reactive to recent [market](../m/market.md) changes, allowing traders to identify potential [trend](../t/trend.md) reversals more swiftly. ## Calculation of Stochastic RSI @@ -9,7 +9,7 @@ The StochRSI is calculated using the following formula: \[ \text{StochRSI} = \frac{\text{RSI} - \text{Lowest RSI}}{\text{Highest RSI} - \text{Lowest RSI}} \] Where: -- **RSI** is the current [value](../v/value.md) of the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md). +- **RSI** is the current [value](../v/value.md) of the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md). - **Lowest RSI** is the lowest [value](../v/value.md) of RSI over the look-back period. - **Highest RSI** is the highest [value](../v/value.md) of RSI over the look-back period. diff --git a/en/pedia/s/stock_analysis.md b/en/pedia/s/stock_analysis.md index b879cd04..6d13c0c8 100644 --- a/en/pedia/s/stock_analysis.md +++ b/en/pedia/s/stock_analysis.md @@ -52,7 +52,7 @@ Stock analysis is the process of evaluating and examining the [stock market](../ 1. **Moving Averages:** Smooth out price data to identify trends. Simple Moving Averages (SMA) and Exponential Moving Averages (EMA) are most common. -2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** Measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** Measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. 3. **Moving Average Convergence [Divergence](../d/divergence.md) (MACD):** A [trend](../t/trend.md)-following [momentum](../m/momentum.md) [indicator](../i/indicator.md) that shows the relationship between two moving averages of a stock’s price. diff --git a/en/pedia/s/stock_exchange-traded_fund_(etf).md b/en/pedia/s/stock_exchange-traded_fund_(etf).md index 39032f96..6bc765d2 100644 --- a/en/pedia/s/stock_exchange-traded_fund_(etf).md +++ b/en/pedia/s/stock_exchange-traded_fund_(etf).md @@ -14,7 +14,7 @@ A Stock [Exchange](../e/exchange.md)-Traded [Fund](../f/fund.md) (ETF) is an [in 5. **International ETFs**: These ETFs provide exposure to non-domestic markets, including emerging markets and developed markets outside of the [investor](../i/investor.md)'s [home](../h/home.md) country. -6. **Inverses and [Leveraged ETFs](../l/leveraged_etfs.md)**: These ETFs are designed to provide multiples of the performance or the inverse performance of an [index](../i/index.md). They are often used for [short-term trading](../s/short-term_trading.md) and hedging purposes. +6. **Inverses and [Leveraged ETFs](../l/leveraged_etfs.md)**: These ETFs are designed to provide multiples of the performance or the inverse performance of an [index](../i/index_instrument.md). They are often used for [short-term trading](../s/short-term_trading.md) and hedging purposes. ## Advantages of ETFs @@ -42,15 +42,15 @@ This process helps to maintain the price of the ETF close to the net [asset](../ ## Popular ETFs -1. **SPDR S&P 500 ETF (SPY)**: Tracks the S&P 500 [index](../i/index.md), providing exposure to 500 of the largest companies in the U.S. +1. **SPDR S&P 500 ETF (SPY)**: Tracks the S&P 500 [index](../i/index_instrument.md), providing exposure to 500 of the largest companies in the U.S. [SPDR S&P 500 ETF (SPY)](https://www.ssga.com/us/en/intermediary/etfs/funds/spdr-sp-500-etf-trust-spy) -2. **[iShares](../i/ishares.md) MSCI Emerging Markets ETF (EEM)**: Tracks the MSCI Emerging Markets [index](../i/index.md), providing exposure to emerging [market](../m/market.md) economies. +2. **[iShares](../i/ishares.md) MSCI Emerging Markets ETF (EEM)**: Tracks the MSCI Emerging Markets [index](../i/index_instrument.md), providing exposure to emerging [market](../m/market.md) economies. [iShares MSCI Emerging Markets ETF (EEM)](https://www.ishares.com/us/products/239637/ishares-msci-emerging-markets-etf) -3. **Invesco QQQ ETF (QQQ)**: Tracks the [NASDAQ](../n/nasdaq.md)-100 [Index](../i/index.md), consisting of 100 of the largest non-financial companies [listed](../l/listed.md) on the [NASDAQ](../n/nasdaq.md) [stock market](../s/stock_market.md). +3. **Invesco QQQ ETF (QQQ)**: Tracks the [NASDAQ](../n/nasdaq.md)-100 [Index](../i/index_instrument.md), consisting of 100 of the largest non-financial companies [listed](../l/listed.md) on the [NASDAQ](../n/nasdaq.md) [stock market](../s/stock_market.md). [Invesco QQQ ETF (QQQ)](https://www.invesco.com/qqq-etf/) @@ -58,7 +58,7 @@ This process helps to maintain the price of the ETF close to the net [asset](../ [Vanguard Total Stock Market ETF (VTI)](https://investor.vanguard.com/etf/profile/VTI) -5. **[iShares](../i/ishares.md) [U.S. Treasury](../u/u.s._treasury.md) [Bond ETF](../b/bond_etf.md) (GOVT)**: Tracks an [index](../i/index.md) of [U.S. Treasury](../u/u.s._treasury.md) bonds, providing exposure to the U.S. [government bond](../g/government_bond.md) [market](../m/market.md). +5. **[iShares](../i/ishares.md) [U.S. Treasury](../u/u.s._treasury.md) [Bond ETF](../b/bond_etf.md) (GOVT)**: Tracks an [index](../i/index_instrument.md) of [U.S. Treasury](../u/u.s._treasury.md) bonds, providing exposure to the U.S. [government bond](../g/government_bond.md) [market](../m/market.md). [iShares U.S. Treasury Bond ETF (GOVT)](https://www.ishares.com/us/products/239458/ishares-us-treasury-bond-etf) @@ -66,7 +66,7 @@ This process helps to maintain the price of the ETF close to the net [asset](../ 1. **[Market Risk](../m/market_risk.md)**: ETFs are subject to the same [market](../m/market.md) risks as their [underlying](../u/underlying.md) assets. If the [market](../m/market.md) declines, the [value](../v/value.md) of the ETF may also decline. -2. **[Tracking Error](../t/tracking_error.md)**: Sometimes the ETF does not perfectly match the performance of its [underlying](../u/underlying.md) [index](../i/index.md) due to fees, expenses, and other factors. +2. **[Tracking Error](../t/tracking_error.md)**: Sometimes the ETF does not perfectly match the performance of its [underlying](../u/underlying.md) [index](../i/index_instrument.md) due to fees, expenses, and other factors. 3. **[Liquidity Risk](../l/liquidity_risk.md)**: Although ETFs are generally [liquid](../l/liquid.md), some ETFs that focus on niche markets or thinly traded assets may experience [liquidity](../l/liquidity.md) issues. diff --git a/en/pedia/s/stock_market.md b/en/pedia/s/stock_market.md index cf4f9e9e..f2e728f3 100644 --- a/en/pedia/s/stock_market.md +++ b/en/pedia/s/stock_market.md @@ -39,7 +39,7 @@ Blue-chip [stocks](../s/stock.md) are [stocks](../s/stock.md) of well-establishe ## Stock Market Indices -Stock [market](../m/market.md) indices are statistical measures that show changes occurring in the stock [market](../m/market.md). An [index](../i/index.md) is composed of a selected group of [stocks](../s/stock.md), and the performance of this group is used to represent the [market](../m/market.md) as a whole. Some of the most prominent stock [market](../m/market.md) indices include: +Stock [market](../m/market.md) indices are statistical measures that show changes occurring in the stock [market](../m/market.md). An [index](../i/index_instrument.md) is composed of a selected group of [stocks](../s/stock.md), and the performance of this group is used to represent the [market](../m/market.md) as a whole. Some of the most prominent stock [market](../m/market.md) indices include: - **Dow Jones Industrial Average (DJIA):** Comprises 30 significant companies [listed](../l/listed.md) on stock exchanges in the United States. - **S&P 500:** Tracks the [stocks](../s/stock.md) of 500 large-cap companies. diff --git a/en/pedia/s/stock_screener.md b/en/pedia/s/stock_screener.md index ff838447..cbc18425 100644 --- a/en/pedia/s/stock_screener.md +++ b/en/pedia/s/stock_screener.md @@ -34,7 +34,7 @@ A user-friendly interface makes it easy for investors to set criteria, view resu ### Fundamental Versus Technical Screeners - **Fundamental Screeners**: Focus on company fundamentals such as [revenue](../r/revenue.md), [debt](../d/debt.md), [profit margins](../p/profit_margins_in_trading.md), etc. -- **Technical Screeners**: Utilize [technical analysis](../t/technical_analysis.md) indicators such as moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_band.md). +- **Technical Screeners**: Utilize [technical analysis](../t/technical_analysis.md) indicators such as moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_band.md). ## Algorithmic Trading and Stock Screeners In [algorithmic trading](../a/accountability.md), stock screeners are integrated into [automated trading systems](../a/automated_trading_systems.md) to identify trading opportunities based on predefined criteria. The integration can be done using APIs provided by stock screener platforms or custom-built solutions that directly query financial databases. Important aspects include: diff --git a/en/pedia/s/stock_split.md b/en/pedia/s/stock_split.md index def6cae6..9fe1ae4f 100644 --- a/en/pedia/s/stock_split.md +++ b/en/pedia/s/stock_split.md @@ -12,7 +12,7 @@ Stock splits can also occur in reverse, known as a [reverse stock split](../r/re 3. **Broaden [Shareholder](../s/shareholder.md) Base**: A lower stock price can attract a more diverse [range](../r/range.md) of investors, increasing the [shareholder](../s/shareholder.md) base and providing the company with a more stable stock performance. -4. **Improved [Index](../i/index.md) Placement**: [Stocks](../s/stock.md) with higher [liquidity](../l/liquidity.md) and lower [nominal](../n/nominal.md) prices can make it easier for the stock to be included or retained in [benchmark](../b/benchmark.md) indices. +4. **Improved [Index](../i/index_instrument.md) Placement**: [Stocks](../s/stock.md) with higher [liquidity](../l/liquidity.md) and lower [nominal](../n/nominal.md) prices can make it easier for the stock to be included or retained in [benchmark](../b/benchmark.md) indices. ## Example of Stock Split diff --git a/en/pedia/s/stratified_random_sampling.md b/en/pedia/s/stratified_random_sampling.md index abad9647..4d16c687 100644 --- a/en/pedia/s/stratified_random_sampling.md +++ b/en/pedia/s/stratified_random_sampling.md @@ -52,7 +52,7 @@ Financial institutions often use stratified [sampling](../s/sampling.md) in [mar ## Case Study: Vanguard Group -[Vanguard Group](https://www.vanguard.com) is known for using stratified random [sampling](../s/sampling.md) techniques to manage its [index](../i/index.md) funds. By ensuring that each sector and [market segment](../m/market_segment.md) is appropriately represented, Vanguard can closely track the performance of the [underlying](../u/underlying.md) indexes, providing investors with returns that mirror the [market](../m/market.md). +[Vanguard Group](https://www.vanguard.com) is known for using stratified random [sampling](../s/sampling.md) techniques to manage its [index](../i/index_instrument.md) funds. By ensuring that each sector and [market segment](../m/market_segment.md) is appropriately represented, Vanguard can closely track the performance of the [underlying](../u/underlying.md) indexes, providing investors with returns that mirror the [market](../m/market.md). ## Conclusion diff --git a/en/pedia/s/structural_shifts_in_markets.md b/en/pedia/s/structural_shifts_in_markets.md index 2051ea15..4f50a89b 100644 --- a/en/pedia/s/structural_shifts_in_markets.md +++ b/en/pedia/s/structural_shifts_in_markets.md @@ -50,7 +50,7 @@ Shifts in [investor](../i/investor.md) behavior can also result in significant s **1. Rise of [Passive Investing](../p/passive_investing.md)** -Over the past few decades, there has been a substantial shift from active to [passive investing](../p/passive_investing.md). This [trend](../t/trend.md) is exemplified by the rise of [index](../i/index.md) funds and ETFs, managed by companies like Vanguard (https://www.vanguard.com/). This shift has implications for [market efficiency](../m/market_efficiency.md) and [volatility](../v/volatility.md), as passive funds tend to follow [market](../m/market.md) trends rather than exploit inefficiencies. +Over the past few decades, there has been a substantial shift from active to [passive investing](../p/passive_investing.md). This [trend](../t/trend.md) is exemplified by the rise of [index](../i/index_instrument.md) funds and ETFs, managed by companies like Vanguard (https://www.vanguard.com/). This shift has implications for [market efficiency](../m/market_efficiency.md) and [volatility](../v/volatility.md), as passive funds tend to follow [market](../m/market.md) trends rather than exploit inefficiencies. **2. [ESG Investing](../e/esg_investing.md)** diff --git a/en/pedia/s/structured_note.md b/en/pedia/s/structured_note.md index ec8bfb06..bc0f93af 100644 --- a/en/pedia/s/structured_note.md +++ b/en/pedia/s/structured_note.md @@ -8,7 +8,7 @@ At their core, structured notes typically consist of two components: 1. **[Fixed Income](../f/fixed_income.md) Instrument ([Bond](../b/bond.md) Component):** This part usually involves a [zero-coupon bond](../z/zero-coupon_bond.md) that ensures the [return](../r/return.md) of the [principal](../p/principal.md) at [maturity](../m/maturity.md). 2. **[Derivative](../d/derivative.md) Component:** This part is linked to the performance of the [underlying asset](../u/underlying_asset.md)(s) and determines any additional [return](../r/return.md) beyond the [principal](../p/principal.md) protection. -Imagine a structured [note](../n/note.md) with a maturation period of five years, tied to the performance of the S&P 500. If the [index](../i/index.md) has appreciated after five years, the [investor](../i/investor.md) receives part of the growth. If the [index](../i/index.md) declines, the [investor](../i/investor.md)'s [principal](../p/principal.md) is still protected, but they may not receive any [return](../r/return.md) over the [principal](../p/principal.md). +Imagine a structured [note](../n/note.md) with a maturation period of five years, tied to the performance of the S&P 500. If the [index](../i/index_instrument.md) has appreciated after five years, the [investor](../i/investor.md) receives part of the growth. If the [index](../i/index_instrument.md) declines, the [investor](../i/investor.md)'s [principal](../p/principal.md) is still protected, but they may not receive any [return](../r/return.md) over the [principal](../p/principal.md). ## Types of Structured Notes @@ -43,19 +43,19 @@ Structured notes are typically employed by investors seeking unique solutions to ## Example -Consider an [investor](../i/investor.md) wishing to invest in a structured [note](../n/note.md) issued by JPMorgan Chase linked to the [Euro](../e/euro.md) Stoxx 50 [Index](../i/index.md). The [note](../n/note.md) guarantees the [return](../r/return.md) of the [principal](../p/principal.md) at [maturity](../m/maturity.md) plus a percentage of the [index](../i/index.md)'s [gain](../g/gain.md) over a specified period. +Consider an [investor](../i/investor.md) wishing to invest in a structured [note](../n/note.md) issued by JPMorgan Chase linked to the [Euro](../e/euro.md) Stoxx 50 [Index](../i/index_instrument.md). The [note](../n/note.md) guarantees the [return](../r/return.md) of the [principal](../p/principal.md) at [maturity](../m/maturity.md) plus a percentage of the [index](../i/index_instrument.md)'s [gain](../g/gain.md) over a specified period. - **[Principal](../p/principal.md) Guarantee:** Assume an investment of $1000. - **[Duration](../d/duration.md):** 5 Years. - **[Euro](../e/euro.md) Stoxx 50 Performance:** 30% increase over five years. -- **[Payout](../p/payout.md) Structure:** 80% of the [index](../i/index.md) [gain](../g/gain.md). +- **[Payout](../p/payout.md) Structure:** 80% of the [index](../i/index_instrument.md) [gain](../g/gain.md). Thus, ignoring fees and costs: - **Guaranteed [Principal](../p/principal.md) [Return](../r/return.md):** $1000. - **Additional Returns:** 30% x 80% x $1000 = $240. - **Total [Payout](../p/payout.md) at [Maturity](../m/maturity.md):** $1240. -If the [index](../i/index.md) had instead declined, the [investor](../i/investor.md) would still get their $1000 [principal](../p/principal.md) [return](../r/return.md), provided the [issuer](../i/issuer.md) doesn't [default](../d/default.md). +If the [index](../i/index_instrument.md) had instead declined, the [investor](../i/investor.md) would still get their $1000 [principal](../p/principal.md) [return](../r/return.md), provided the [issuer](../i/issuer.md) doesn't [default](../d/default.md). ## Regulatory Considerations diff --git a/en/pedia/s/subprime_mortgage.md b/en/pedia/s/subprime_mortgage.md index 23821753..f57dde47 100644 --- a/en/pedia/s/subprime_mortgage.md +++ b/en/pedia/s/subprime_mortgage.md @@ -9,7 +9,7 @@ Subprime mortgages emerged as a financial product in the late 20th century, prim ## Structure of Subprime Mortgages Subprime loans can have various structures, but they often come with adjustable [interest](../i/interest.md) rates, balloon payments, or [interest](../i/interest.md)-only [payment](../p/payment.md) [options](../o/options.md). These features initially make the monthly payments more affordable but can lead to significant increases later. -- **Adjustable-Rate Mortgages (ARM)**: The [interest rate](../i/interest_rate.md) is fixed for an initial period and then adjusts periodically based on an [index](../i/index.md). +- **Adjustable-Rate Mortgages (ARM)**: The [interest rate](../i/interest_rate.md) is fixed for an initial period and then adjusts periodically based on an [index](../i/index_instrument.md). - **Balloon Mortgages**: Borrowers pay small monthly installments for a specific period, followed by a large [balloon payment](../b/balloon_payment.md). - **[Interest](../i/interest.md)-Only Mortgages**: Borrowers pay only [interest](../i/interest.md) for a set period, with [principal](../p/principal.md) payments beginning later. diff --git a/en/pedia/s/support_(support_level).md b/en/pedia/s/support_(support_level).md index fc9b3dc9..7afcd8a9 100644 --- a/en/pedia/s/support_(support_level).md +++ b/en/pedia/s/support_(support_level).md @@ -20,7 +20,7 @@ A support level is a predetermined [price level](../p/price_level.md) where a [d Drawing trendlines can help traders visualize areas of support. A [trendline](../t/trendline.md) is drawn by connecting a series of higher lows in an [uptrend](../u/uptrend.md) or lower highs in a [downtrend](../d/downtrend.md). These lines serve as potential support areas. 4. **[Technical Indicators](../t/technical_indicator.md)**: - Indicators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can be used to identify support by signaling [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. + Indicators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can be used to identify support by signaling [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. 5. **[Volume](../v/volume.md)**: High trading [volume](../v/volume.md) at a particular [price level](../p/price_level.md) can indicate strong support. [Volume analysis](../v/volume_analysis.md) helps confirm the strength of a support level. diff --git a/en/pedia/s/support_and_resistance_zones.md b/en/pedia/s/support_and_resistance_zones.md index 7122b49b..d0f84b52 100644 --- a/en/pedia/s/support_and_resistance_zones.md +++ b/en/pedia/s/support_and_resistance_zones.md @@ -38,7 +38,7 @@ Breakouts occur when the price moves beyond a support or resistance level, signa ## Case Studies and Examples ### Example: S&P 500 Index -Let’s consider the S&P 500 [Index](../i/index.md). Historical data shows that the [index](../i/index.md) often finds support at key [psychological levels](../p/psychological_levels_in_trading.md), such as 3000 or 3500. Additionally, moving averages such as the 50-day or [200-day moving average](../1/200-day_moving_average.md) often act as dynamic support or resistance, providing valuable signals for traders. +Let’s consider the S&P 500 [Index](../i/index_instrument.md). Historical data shows that the [index](../i/index_instrument.md) often finds support at key [psychological levels](../p/psychological_levels_in_trading.md), such as 3000 or 3500. Additionally, moving averages such as the 50-day or [200-day moving average](../1/200-day_moving_average.md) often act as dynamic support or resistance, providing valuable signals for traders. ### Example: Forex Market In the forex [market](../m/market.md), major [currency](../c/currency.md) pairs often show respect for [support and resistance](../s/support_and_resistance.md) levels. For instance, the EUR/USD pair may find significant support at levels like 1.1000 or 1.2000, which are round numbers and psychological price points. diff --git a/en/pedia/s/support_levels.md b/en/pedia/s/support_levels.md index 498a1fd5..ac793ecc 100644 --- a/en/pedia/s/support_levels.md +++ b/en/pedia/s/support_levels.md @@ -68,7 +68,7 @@ In a [breakout](../b/breakout.md) strategy, an algorithm looks for scenarios whe ### Combining with Other Indicators -Algorithms often combine support levels with other [technical indicators](../t/technical_indicators.md), such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD), to enhance decision-making. For instance, if the RSI approaches an [oversold](../o/oversold.md) condition near a support level, the algorithm might trigger a buy signal. +Algorithms often combine support levels with other [technical indicators](../t/technical_indicators.md), such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD), to enhance decision-making. For instance, if the RSI approaches an [oversold](../o/oversold.md) condition near a support level, the algorithm might trigger a buy signal. ## Challenges Associated with Support Levels diff --git a/en/pedia/s/support_vector_classifier.md b/en/pedia/s/support_vector_classifier.md index fd1dcd8a..4354e3ef 100644 --- a/en/pedia/s/support_vector_classifier.md +++ b/en/pedia/s/support_vector_classifier.md @@ -75,7 +75,7 @@ The first step is to gather historical data from reliable sources such as financ ### Feature Engineering -Feature engineering involves creating new variables that represent the essential patterns in the data. For trading, these features may include [technical indicators](../t/technical_indicators.md) like [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Bollinger Bands](../b/bollinger_bands.md), and more. +Feature engineering involves creating new variables that represent the essential patterns in the data. For trading, these features may include [technical indicators](../t/technical_indicators.md) like [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Bollinger Bands](../b/bollinger_bands.md), and more. ### Model Training diff --git a/en/pedia/s/support_vector_machines_in_trading.md b/en/pedia/s/support_vector_machines_in_trading.md index d56cd662..184a06d1 100644 --- a/en/pedia/s/support_vector_machines_in_trading.md +++ b/en/pedia/s/support_vector_machines_in_trading.md @@ -52,7 +52,7 @@ Preprocessing involves cleaning the data, handling missing values, normalizing d The choice of features greatly influences the performance of the SVM. Important features include: -- **[Technical Indicators](../t/technical_indicators.md)**: Like Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), etc. +- **[Technical Indicators](../t/technical_indicators.md)**: Like Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), etc. - **[Volume](../v/volume.md) Data**: Trading [volume](../v/volume.md) can often predict future price movements. - **[Market Sentiment Indicators](../m/market_sentiment_indicators.md)**: Textual data from news and [social media](../s/social_media.md). - **Lagged Data**: Past prices and indicators as features to capture trends. diff --git a/en/pedia/s/swap.md b/en/pedia/s/swap.md index 54db65d6..6a9b1949 100644 --- a/en/pedia/s/swap.md +++ b/en/pedia/s/swap.md @@ -29,9 +29,9 @@ Swaps come in various forms, with the most common ones being: ### 4. Equity Swaps -[Equity](../e/equity.md) swaps involve the [exchange](../e/exchange.md) of cash flows based on the performance of an [equity](../e/equity.md) [index](../i/index.md) or individual [stocks](../s/stock.md). They provide a way to [gain](../g/gain.md) exposure to [equity](../e/equity.md) markets without directly owning the [underlying](../u/underlying.md) [stocks](../s/stock.md). +[Equity](../e/equity.md) swaps involve the [exchange](../e/exchange.md) of cash flows based on the performance of an [equity](../e/equity.md) [index](../i/index_instrument.md) or individual [stocks](../s/stock.md). They provide a way to [gain](../g/gain.md) exposure to [equity](../e/equity.md) markets without directly owning the [underlying](../u/underlying.md) [stocks](../s/stock.md). -- **[Total Return](../t/total_return.md) Swaps:** One party receives the [total return](../t/total_return.md) on an [equity](../e/equity.md) [index](../i/index.md) or individual stock, including dividends and [capital](../c/capital.md) gains, while the other party pays a fixed or floating rate. +- **[Total Return](../t/total_return.md) Swaps:** One party receives the [total return](../t/total_return.md) on an [equity](../e/equity.md) [index](../i/index_instrument.md) or individual stock, including dividends and [capital](../c/capital.md) gains, while the other party pays a fixed or floating rate. ### 5. Credit Default Swaps (CDS) @@ -45,7 +45,7 @@ Swaps generally involve the following key components: - **[Payment](../p/payment.md) Dates:** The specific dates on which the cash flows are exchanged. - **[Maturity Date](../m/maturity_date.md):** The final date on which the last [payment](../p/payment.md) is made, and the swap contract concludes. - **Fixed Rate or Price:** In fixed-for-floating swaps, this is the predetermined rate or price agreed upon by the parties. -- **Floating Rate or Price:** In floating-for-floating swaps, this is the rate or price that changes based on an agreed-upon [index](../i/index.md) or [benchmark](../b/benchmark.md). +- **Floating Rate or Price:** In floating-for-floating swaps, this is the rate or price that changes based on an agreed-upon [index](../i/index_instrument.md) or [benchmark](../b/benchmark.md). ## Applications of Swaps diff --git a/en/pedia/s/swing_high_and_low.md b/en/pedia/s/swing_high_and_low.md index 6046b3d8..9da786c0 100644 --- a/en/pedia/s/swing_high_and_low.md +++ b/en/pedia/s/swing_high_and_low.md @@ -15,7 +15,7 @@ Swing highs can be identified using different [charting techniques](../c/chartin 1. **[Candlestick Patterns](../c/candlestick_patterns.md)**: Swing highs can frequently be recognized by specific [candlestick](../c/candlestick.md) formations like bearish engulfing, [evening star](../e/evening_star.md), or [shooting star](../s/shooting_star.md). These patterns often signal a potential high point before a [reversal](../r/reversal.md). 2. **Moving Averages**: Traders use moving averages, such as the 50-day or [200-day moving average](../1/200-day_moving_average.md), to smooth out price movements and identify swing highs. 3. **Trendlines and Channels**: Drawing trendlines along the peaks of price movements can help pinpoint swing highs. -4. **[Technical Indicators](../t/technical_indicators.md)**: Indicators such as [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Stochastic can be used to identify [overbought](../o/overbought.md) conditions, which might precede a swing high. +4. **[Technical Indicators](../t/technical_indicators.md)**: Indicators such as [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Stochastic can be used to identify [overbought](../o/overbought.md) conditions, which might precede a swing high. ## Swing Low @@ -101,8 +101,8 @@ plt.figure(figsize=(14,7)) plt.plot(data['Close'], label='Price') buy_signals = data[data['Signal'] == 1] sell_signals = data[data['Signal'] == -1] -plt.scatter(buy_signals.[index](../i/index.md), buy_signals['Close'], marker='^', color='green', label='Buy Signal', [alpha](../a/alpha.md)=1) -plt.scatter(sell_signals.[index](../i/index.md), sell_signals['Close'], marker='v', color='red', label='Sell Signal', [alpha](../a/alpha.md)=1) +plt.scatter(buy_signals.[index](../i/index_instrument.md), buy_signals['Close'], marker='^', color='green', label='Buy Signal', [alpha](../a/alpha.md)=1) +plt.scatter(sell_signals.[index](../i/index_instrument.md), sell_signals['Close'], marker='v', color='red', label='Sell Signal', [alpha](../a/alpha.md)=1) plt.legend() plt.show() ``` diff --git a/en/pedia/s/swing_trading.md b/en/pedia/s/swing_trading.md index 3765bdee..17554600 100644 --- a/en/pedia/s/swing_trading.md +++ b/en/pedia/s/swing_trading.md @@ -10,7 +10,7 @@ Given the nature of swing trading, it seamlessly fits into the broader category Swing trading heavily relies on the identification of [market](../m/market.md) trends and cycles. These trends can be upward, downward, or sideways. Traders look for these trends to capture the price movements with the highest probability of success. ### Technical Analysis -Swing traders primarily use [technical analysis](../t/technical_analysis.md) to identify trading opportunities. [Technical indicators](../t/technical_indicators.md) like moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), moving average convergence [divergence](../d/divergence.md) (MACD), and [volume](../v/volume.md) are crucial. [Chart patterns](../c/chart_patterns.md) like head and shoulders, triangles, and flags are also significant. +Swing traders primarily use [technical analysis](../t/technical_analysis.md) to identify trading opportunities. [Technical indicators](../t/technical_indicators.md) like moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), moving average convergence [divergence](../d/divergence.md) (MACD), and [volume](../v/volume.md) are crucial. [Chart patterns](../c/chart_patterns.md) like head and shoulders, triangles, and flags are also significant. ### Fundamental Analysis Although less common, some swing traders incorporate [fundamental analysis](../f/fundamental_analysis.md). They might look at [earnings](../e/earnings.md) reports, [economic indicators](../e/economic_indicators.md), and other fundamental metrics to gauge the health of a stock or sector. diff --git a/en/pedia/s/swiss_exchange_(six).md b/en/pedia/s/swiss_exchange_(six).md index fe6efef1..fce7d825 100644 --- a/en/pedia/s/swiss_exchange_(six).md +++ b/en/pedia/s/swiss_exchange_(six).md @@ -32,7 +32,7 @@ The trading day on SIX is divided into several [market](../m/market.md) phases: SIX is renowned for its comprehensive [market](../m/market.md) data services, [offering](../o/offering.md) real-time and historical data to [market](../m/market.md) participants. The [exchange](../e/exchange.md) disseminates information on prices, volumes, and other relevant metrics, ensuring [transparency](../t/transparency.md) and informed decision-making. -The [exchange](../e/exchange.md) also manages a suite of indices that serve as benchmarks for the Swiss financial [market](../m/market.md). The most notable among these is the Swiss [Market Index](../m/market_index.md) (SMI), which comprises the 20 largest and most [liquid](../l/liquid.md) companies [listed](../l/listed.md) on SIX. Other indices include the Swiss Performance [Index](../i/index.md) (SPI), which covers all Swiss [stocks](../s/stock.md), and sector-specific indices that cater to different [industry](../i/industry.md) segments. +The [exchange](../e/exchange.md) also manages a suite of indices that serve as benchmarks for the Swiss financial [market](../m/market.md). The most notable among these is the Swiss [Market Index](../m/market_index.md) (SMI), which comprises the 20 largest and most [liquid](../l/liquid.md) companies [listed](../l/listed.md) on SIX. Other indices include the Swiss Performance [Index](../i/index_instrument.md) (SPI), which covers all Swiss [stocks](../s/stock.md), and sector-specific indices that cater to different [industry](../i/industry.md) segments. ## Listing Criteria diff --git a/en/pedia/s/synthetic.md b/en/pedia/s/synthetic.md index 6201f487..1b70d7c4 100644 --- a/en/pedia/s/synthetic.md +++ b/en/pedia/s/synthetic.md @@ -9,14 +9,14 @@ Synthetic financial instruments, also known as synthetic [derivatives](../d/deri - **Synthetic Short Position**: A synthetic short position mimics [short selling](../s/short_selling.md) an [asset](../a/asset.md). This is often done by buying a [put option](../p/put.md) and selling a [call option](../c/call_option.md) on the same [underlying asset](../u/underlying_asset.md) with the same [expiration date](../e/expiration_date.md) and [strike price](../s/strike_price.md). ### Synthetic Swaps -- **[Equity](../e/equity.md) Swaps**: An [equity swap](../e/equity_swap.md) is an agreement between two parties to [exchange](../e/exchange.md) future cash flows, where one [leg](../l/leg.md) of the [swap](../s/swap.md) is typically linked to the performance of an [equity](../e/equity.md) [index](../i/index.md) or a basket of [stocks](../s/stock.md), and the other [leg](../l/leg.md) earns a pre-determined [interest rate](../i/interest_rate.md). +- **[Equity](../e/equity.md) Swaps**: An [equity swap](../e/equity_swap.md) is an agreement between two parties to [exchange](../e/exchange.md) future cash flows, where one [leg](../l/leg.md) of the [swap](../s/swap.md) is typically linked to the performance of an [equity](../e/equity.md) [index](../i/index_instrument.md) or a basket of [stocks](../s/stock.md), and the other [leg](../l/leg.md) earns a pre-determined [interest rate](../i/interest_rate.md). - **[Interest Rate Swaps](../i/interest_rate_swaps.md)**: These swaps involve exchanging future [interest](../i/interest.md) payments, where one [leg](../l/leg.md) is typically linked to a [floating interest rate](../f/floating_interest_rate.md) (like LIBOR or EURIBOR), and the other [leg](../l/leg.md) to a [fixed interest rate](../f/fixed_interest_rate.md). ### Synthetic Collateralized Debt Obligations (CDOs) Synthetic CDOs are complex financial instruments that involve [credit default swaps](../c/credit_default_swaps.md) (CDS). Unlike traditional CDOs that pool actual loans or [debt](../d/debt.md), synthetic CDOs use CDS contracts to create exposure to the [credit risk](../c/credit_risk.md) of a portfolio of reference entities without owning them directly. ### Synthetic ETFs (Exchange-Traded Funds) -Synthetic ETFs aim to track the performance of an [underlying](../u/underlying.md) [index](../i/index.md) or [asset](../a/asset.md) without directly holding the constituents of that [index](../i/index.md). Instead, synthetic ETFs use [derivative](../d/derivative.md) products, like [swap](../s/swap.md) agreements, to achieve the desired exposure. This can sometimes [offer](../o/offer.md) improved [liquidity](../l/liquidity.md), reduced [tracking error](../t/tracking_error.md), and access to markets or assets that are otherwise challenging to invest in. +Synthetic ETFs aim to track the performance of an [underlying](../u/underlying.md) [index](../i/index_instrument.md) or [asset](../a/asset.md) without directly holding the constituents of that [index](../i/index_instrument.md). Instead, synthetic ETFs use [derivative](../d/derivative.md) products, like [swap](../s/swap.md) agreements, to achieve the desired exposure. This can sometimes [offer](../o/offer.md) improved [liquidity](../l/liquidity.md), reduced [tracking error](../t/tracking_error.md), and access to markets or assets that are otherwise challenging to invest in. ## Applications and Benefits diff --git a/en/pedia/s/systematic_hedge_funds.md b/en/pedia/s/systematic_hedge_funds.md index 03168930..60cb3ba4 100644 --- a/en/pedia/s/systematic_hedge_funds.md +++ b/en/pedia/s/systematic_hedge_funds.md @@ -49,7 +49,7 @@ Systematic [hedge](../h/hedge.md) funds use various strategies differing in comp [Trend following](../t/trend_following.md) strategies aim to [capitalize](../c/capitalize.md) on [market](../m/market.md) trends by entering positions in the direction of the [trend](../t/trend.md). These strategies often use [technical indicators](../t/technical_indicators.md) such as moving averages and breakouts. 1. **[Moving Average Crossovers](../m/moving_average_crossovers.md)**: Entering a [trade](../t/trade.md) when a short-term moving average crosses above a long-term moving average. -2. **[Momentum Indicators](../m/momentum_indicators.md)**: Utilizing indicators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) to identify potential entry points. +2. **[Momentum Indicators](../m/momentum_indicators.md)**: Utilizing indicators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) to identify potential entry points. 3. **Breakouts**: Buying or selling when the price breaks through a predefined level of support or resistance. #### Mean Reversion diff --git a/en/pedia/s/systematic_investment_plan_(sip).md b/en/pedia/s/systematic_investment_plan_(sip).md index 7612da8c..b7c74da8 100644 --- a/en/pedia/s/systematic_investment_plan_(sip).md +++ b/en/pedia/s/systematic_investment_plan_(sip).md @@ -86,7 +86,7 @@ Hybrid mutual funds invest in a mix of [equity](../e/equity.md) and [debt](../d/ ### 4. **Index Funds** -[Index](../i/index.md) funds mimic the composition of a [market index](../m/market_index.md) like the S&P 500. SIPs in [index](../i/index.md) funds [offer](../o/offer.md) diversified exposure to the [market](../m/market.md), reducing the [risk](../r/risk.md) associated with individual stock performance. +[Index](../i/index_instrument.md) funds mimic the composition of a [market index](../m/market_index.md) like the S&P 500. SIPs in [index](../i/index_instrument.md) funds [offer](../o/offer.md) diversified exposure to the [market](../m/market.md), reducing the [risk](../r/risk.md) associated with individual stock performance. ## Tax Implications diff --git a/en/pedia/s/systematic_sampling.md b/en/pedia/s/systematic_sampling.md index c3a1b948..dda51d70 100644 --- a/en/pedia/s/systematic_sampling.md +++ b/en/pedia/s/systematic_sampling.md @@ -40,7 +40,7 @@ You randomly select a number between 1 and 10, say 7. You then select the 7th in ### Portfolio Management -In [finance](../f/finance.md), systematic [sampling](../s/sampling.md) can be used to create representative portfolios. [Fund](../f/fund.md) managers might apply this method to select a subset of [stocks](../s/stock.md) that mirror the performance of a larger stock [index](../i/index.md). +In [finance](../f/finance.md), systematic [sampling](../s/sampling.md) can be used to create representative portfolios. [Fund](../f/fund.md) managers might apply this method to select a subset of [stocks](../s/stock.md) that mirror the performance of a larger stock [index](../i/index_instrument.md). ### Risk Management diff --git a/en/pedia/t/tail_hedge_strategies.md b/en/pedia/t/tail_hedge_strategies.md index 501afc2e..df478371 100644 --- a/en/pedia/t/tail_hedge_strategies.md +++ b/en/pedia/t/tail_hedge_strategies.md @@ -34,7 +34,7 @@ Some investment funds specialize in [tail risk](../t/tail_risk.md) hedging by ac ### Volatility Swaps and VIX Futures -[Volatility](../v/volatility.md) swaps and VIX ([Volatility](../v/volatility.md) [Index](../i/index.md)) [futures](../f/futures.md) are [derivatives](../d/derivatives.md) that allow investors to [trade](../t/trade.md) future [volatility](../v/volatility.md) expectations. +[Volatility](../v/volatility.md) swaps and VIX ([Volatility](../v/volatility.md) [Index](../i/index_instrument.md)) [futures](../f/futures.md) are [derivatives](../d/derivatives.md) that allow investors to [trade](../t/trade.md) future [volatility](../v/volatility.md) expectations. #### Volatility Swaps @@ -43,7 +43,7 @@ Some investment funds specialize in [tail risk](../t/tail_risk.md) hedging by ac #### VIX Futures -- **Mechanism**: VIX [futures](../f/futures.md) are based on the VIX [index](../i/index.md), which measures the [market](../m/market.md)'s expectation of 30-day forward-looking [volatility](../v/volatility.md) derived from S&P 500 [index options](../i/index_options.md). +- **Mechanism**: VIX [futures](../f/futures.md) are based on the VIX [index](../i/index_instrument.md), which measures the [market](../m/market.md)'s expectation of 30-day forward-looking [volatility](../v/volatility.md) derived from S&P 500 [index options](../i/index_options.md). - **Benefit**: VIX [futures](../f/futures.md) typically spike during [market](../m/market.md) downturns, [offering](../o/offering.md) a [hedge](../h/hedge.md) against extreme [market](../m/market.md) movements. ### Credit Default Swaps (CDS) diff --git a/en/pedia/t/targeted_accrual_redemption_note_(tarn).md b/en/pedia/t/targeted_accrual_redemption_note_(tarn).md index dc0a3a7b..6d2bf544 100644 --- a/en/pedia/t/targeted_accrual_redemption_note_(tarn).md +++ b/en/pedia/t/targeted_accrual_redemption_note_(tarn).md @@ -19,7 +19,7 @@ The foundation of any TARN is its [underlying](../u/underlying.md) assets. These ### 2. **Coupon Payments**: -TARNs typically [offer](../o/offer.md) periodic coupon payments to investors. These payments are often linked to the performance of the [underlying](../u/underlying.md) assets. For example, the coupons might be based on the difference between two [interest](../i/interest.md) rates or the performance of an [equity](../e/equity.md) [index](../i/index.md). +TARNs typically [offer](../o/offer.md) periodic coupon payments to investors. These payments are often linked to the performance of the [underlying](../u/underlying.md) assets. For example, the coupons might be based on the difference between two [interest](../i/interest.md) rates or the performance of an [equity](../e/equity.md) [index](../i/index_instrument.md). ### 3. **Accrual Mechanism**: diff --git a/en/pedia/t/tax_loss_harvesting.md b/en/pedia/t/tax_loss_harvesting.md index 4ef4c3aa..76bc9202 100644 --- a/en/pedia/t/tax_loss_harvesting.md +++ b/en/pedia/t/tax_loss_harvesting.md @@ -62,7 +62,7 @@ An [investor](../i/investor.md) experiences a $15,000 loss from selling stock C ### Example 3: Sector Rotation -Assume an [investor](../i/investor.md) holds an [energy sector](../e/energy_sector.md) ETF that has incurred a loss. To harvest the tax loss without leaving the [energy sector](../e/energy_sector.md) exposure, the [investor](../i/investor.md) sells the ETF and purchases another [energy sector](../e/energy_sector.md) ETF that tracks a different [index](../i/index.md), thus avoiding the [wash-sale rule](../w/wash-sale_rule.md). +Assume an [investor](../i/investor.md) holds an [energy sector](../e/energy_sector.md) ETF that has incurred a loss. To harvest the tax loss without leaving the [energy sector](../e/energy_sector.md) exposure, the [investor](../i/investor.md) sells the ETF and purchases another [energy sector](../e/energy_sector.md) ETF that tracks a different [index](../i/index_instrument.md), thus avoiding the [wash-sale rule](../w/wash-sale_rule.md). ## Technology and Tax Loss Harvesting diff --git a/en/pedia/t/tax_selling.md b/en/pedia/t/tax_selling.md index f1257a5f..3a2706bb 100644 --- a/en/pedia/t/tax_selling.md +++ b/en/pedia/t/tax_selling.md @@ -77,7 +77,7 @@ Tax [alpha](../a/alpha.md) refers to the added [value](../v/value.md) achieved b ### Custom Indexing -Fintech advancements have led to the evolution of custom [indexing](../i/indexing.md), where individual securities are selected to mimic an [index](../i/index.md) while optimizing for tax [efficiency](../e/efficiency.md). This approach allows for more precise tax-loss harvesting across a broader array of securities compared to traditional [index](../i/index.md) funds. +Fintech advancements have led to the evolution of custom [indexing](../i/indexing.md), where individual securities are selected to mimic an [index](../i/index_instrument.md) while optimizing for tax [efficiency](../e/efficiency.md). This approach allows for more precise tax-loss harvesting across a broader array of securities compared to traditional [index](../i/index_instrument.md) funds. ### Algorithmic Optimization diff --git a/en/pedia/t/taxable_wage_base.md b/en/pedia/t/taxable_wage_base.md index ed644f5d..3252170b 100644 --- a/en/pedia/t/taxable_wage_base.md +++ b/en/pedia/t/taxable_wage_base.md @@ -12,7 +12,7 @@ In the United States, the [Social Security](../s/social_security.md) taxable wag - **Self-Employed**: Self-employed individuals pay 12.4% of their net [earnings](../e/earnings.md) up to the taxable wage base. ### Adjustments -- The SSA adjusts the taxable wage base each year based on changes in the national average wage [index](../i/index.md). These adjustments occur to ensure the system remains financially sound and capable of paying future benefits. +- The SSA adjusts the taxable wage base each year based on changes in the national average wage [index](../i/index_instrument.md). These adjustments occur to ensure the system remains financially sound and capable of paying future benefits. ## Unemployment Insurance Taxable Wage Base @@ -54,7 +54,7 @@ The [Social Security](../s/social_security.md) taxable wage base has changed sig These changes often reflect broader economic trends, including [inflation](../i/inflation.md) and wage growth. A rising taxable wage base typically indicates increases in overall [income](../i/income.md) levels, which can signal [economic growth](../e/economic_growth.md). ### Legislative Influence -Government decisions, such as the 1983 amendments to the [Social Security](../s/social_security.md) Act, can also impact the taxable wage base. These amendments led to automatic increases tied to the national average wage [index](../i/index.md). +Government decisions, such as the 1983 amendments to the [Social Security](../s/social_security.md) Act, can also impact the taxable wage base. These amendments led to automatic increases tied to the national average wage [index](../i/index_instrument.md). ## Controversies and Discussions diff --git a/en/pedia/t/taylor's_rule.md b/en/pedia/t/taylor's_rule.md index aae01a43..f87f825d 100644 --- a/en/pedia/t/taylor's_rule.md +++ b/en/pedia/t/taylor's_rule.md @@ -28,7 +28,7 @@ The real [equilibrium](../e/equilibrium.md) [interest rate](../i/interest_rate.m ### Actual Inflation Rate (\( \pi_t \)) -The actual [inflation](../i/inflation.md) rate represents the observed increase in the general [price level](../p/price_level.md) of goods and services in an [economy](../e/economy.md) over a period of time. It is usually measured by indexes like the Consumer Price [Index](../i/index.md) (CPI) or the Personal Consumption Expenditures (PCE) Price [Index](../i/index.md). +The actual [inflation](../i/inflation.md) rate represents the observed increase in the general [price level](../p/price_level.md) of goods and services in an [economy](../e/economy.md) over a period of time. It is usually measured by indexes like the Consumer Price [Index](../i/index_instrument.md) (CPI) or the Personal Consumption Expenditures (PCE) Price [Index](../i/index_instrument.md). ### Target Inflation Rate (\( \pi^* \)) diff --git a/en/pedia/t/teachers_insurance_annuity_association_(tiaa).md b/en/pedia/t/teachers_insurance_annuity_association_(tiaa).md index 5f0a0c83..758745a4 100644 --- a/en/pedia/t/teachers_insurance_annuity_association_(tiaa).md +++ b/en/pedia/t/teachers_insurance_annuity_association_(tiaa).md @@ -55,7 +55,7 @@ TIAA employs several strategic approaches to manage and grow its clients' invest TIAA employs both active and passive [investment management](../i/investment_management.md) strategies: - **[Active Management](../a/active_management.md):** This hands-on approach involves [fund](../f/fund.md) managers making informed decisions about which securities to buy and sell in [order](../o/order.md) to [outperform](../o/outperform.md) the [market](../m/market.md). TIAA's active managers use extensive research and [market](../m/market.md) analysis to guide their investment choices. -- **Passive Management:** This approach seeks to replicate the performance of a specific [index](../i/index.md), such as the S&P 500. Passively managed funds typically have lower expenses and are designed to match the returns of the [index](../i/index.md) they track. +- **Passive Management:** This approach seeks to replicate the performance of a specific [index](../i/index_instrument.md), such as the S&P 500. Passively managed funds typically have lower expenses and are designed to match the returns of the [index](../i/index_instrument.md) they track. ### Responsible Investing diff --git a/en/pedia/t/technical_analysis.md b/en/pedia/t/technical_analysis.md index d43da284..2a6bb463 100644 --- a/en/pedia/t/technical_analysis.md +++ b/en/pedia/t/technical_analysis.md @@ -24,7 +24,7 @@ Charts serve as the backbone of technical analysis. Commonly used types include: ### Indicators and Oscillators Indicators are mathematical calculations used to forecast price direction and identify trends. Popular indicators include: - Moving Averages: Show the average price of a [security](../s/security.md) over a set period and help identify trends. -- [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI): Measures the speed and change of price movements to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI): Measures the speed and change of price movements to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - Moving Average Convergence [Divergence](../d/divergence.md) (MACD): Shows the relationship between two moving averages of a [security](../s/security.md)'s price. ### Support and Resistance Levels diff --git a/en/pedia/t/technical_analysis_frameworks.md b/en/pedia/t/technical_analysis_frameworks.md index dfb058df..323f67ff 100644 --- a/en/pedia/t/technical_analysis_frameworks.md +++ b/en/pedia/t/technical_analysis_frameworks.md @@ -26,7 +26,7 @@ MACD is a [trend](../t/trend.md)-following [momentum](../m/momentum.md) [indicat ### Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in [asset](../a/asset.md) prices. +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in [asset](../a/asset.md) prices. **Formula:** \[ RSI = 100 - \frac{100}{1 + RS} \] diff --git a/en/pedia/t/technical_analysis_of_stocks_and_trends.md b/en/pedia/t/technical_analysis_of_stocks_and_trends.md index e468b579..8fb9ff2d 100644 --- a/en/pedia/t/technical_analysis_of_stocks_and_trends.md +++ b/en/pedia/t/technical_analysis_of_stocks_and_trends.md @@ -34,7 +34,7 @@ Technical analysts use various indicators and oscillators to [gain](../g/gain.md - **Moving Averages**: Smooth out price data to help identify trends. - Simple Moving Average (SMA) - Exponential Moving Average (EMA) -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measures the speed and change of price movements to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measures the speed and change of price movements to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: Shows the relationship between two moving averages to indicate [momentum](../m/momentum.md). - **[Bollinger Bands](../b/bollinger_band.md)**: Use [standard deviation](../s/standard_deviation.md) to define upper and lower price [range](../r/range.md) limits. diff --git a/en/pedia/t/technical_analysis_software.md b/en/pedia/t/technical_analysis_software.md index bdb7fbcd..c7112278 100644 --- a/en/pedia/t/technical_analysis_software.md +++ b/en/pedia/t/technical_analysis_software.md @@ -5,7 +5,7 @@ ## Key Features of Technical Analysis Software ### 1. **Technical Indicators** -[Technical analysis](../t/technical_analysis.md) software offers a variety of [technical indicators](../t/technical_indicators.md), which are mathematical calculations based on historical price, [volume](../v/volume.md), or [open interest](../o/open_interest.md) information. Common indicators include Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), [Bollinger Bands](../b/bollinger_bands.md), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)). +[Technical analysis](../t/technical_analysis.md) software offers a variety of [technical indicators](../t/technical_indicators.md), which are mathematical calculations based on historical price, [volume](../v/volume.md), or [open interest](../o/open_interest.md) information. Common indicators include Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), [Bollinger Bands](../b/bollinger_bands.md), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)). ### 2. **Charting Tools** Charting tools provide visual representations of [market](../m/market.md) data through different types of charts such as line, bar, and [candlestick](../c/candlestick.md) charts. These charts help traders to spot trends, reversals, and patterns. diff --git a/en/pedia/t/technical_analysis_tools.md b/en/pedia/t/technical_analysis_tools.md index cb82af21..1d8246ca 100644 --- a/en/pedia/t/technical_analysis_tools.md +++ b/en/pedia/t/technical_analysis_tools.md @@ -19,7 +19,7 @@ Where: ## 2. Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. The RSI oscillates between 0 and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, signaling potential buy or sell opportunities. The RSI is calculated using the formula: +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. The RSI oscillates between 0 and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, signaling potential buy or sell opportunities. The RSI is calculated using the formula: \[ RSI = 100 - \frac{100}{1 + RS} \] Where: - \( RS = \frac{\text{Average [Gain](../g/gain.md)}}{\text{Average Loss}} \) diff --git a/en/pedia/t/technical_analyst.md b/en/pedia/t/technical_analyst.md index 5f9548e6..c6a847c5 100644 --- a/en/pedia/t/technical_analyst.md +++ b/en/pedia/t/technical_analyst.md @@ -29,7 +29,7 @@ Charts are the backbone of [technical analysis](../t/technical_analysis.md). Com Indicators are statistical measurements used to predict future price movements. These fall into two categories: - **[Trend Indicators](../t/trend_indicators.md):** Include moving averages, MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and ADX ([Average Directional Index](../a/average_directional_index_(adx).md)). These help identify the direction and strength of a [trend](../t/trend.md). -- **[Momentum Indicators](../m/momentum_indicators.md):** Such as RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)) and [Stochastic Oscillator](../s/stochastic_oscillator.md), gauge the speed and change of price movements. +- **[Momentum Indicators](../m/momentum_indicators.md):** Such as RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)) and [Stochastic Oscillator](../s/stochastic_oscillator.md), gauge the speed and change of price movements. ### Volume Analysis diff --git a/en/pedia/t/technical_indicator.md b/en/pedia/t/technical_indicator.md index a2c834dc..37bf70aa 100644 --- a/en/pedia/t/technical_indicator.md +++ b/en/pedia/t/technical_indicator.md @@ -35,7 +35,7 @@ Where: #### Relative Strength Index (RSI) -**Description:** The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) measures the speed and change of price movements. It oscillates between 0 and 100. +**Description:** The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) measures the speed and change of price movements. It oscillates between 0 and 100. **Formula:** \[ \text{RSI} = 100 - \frac{100}{1 + RS} \] diff --git a/en/pedia/t/technical_indicator_filters.md b/en/pedia/t/technical_indicator_filters.md index ef88dab6..212c8910 100644 --- a/en/pedia/t/technical_indicator_filters.md +++ b/en/pedia/t/technical_indicator_filters.md @@ -7,7 +7,7 @@ Technical [indicator](../i/indicator.md) filters are crucial tools in the world Technical [indicator](../i/indicator.md) filters are algorithms that analyze historical [market](../m/market.md) data, such as price and [volume](../v/volume.md), to identify patterns and trends. These patterns help traders forecast future [market](../m/market.md) movements. Generally, [technical indicators](../t/technical_indicators.md) can be categorized into three main types: 1. **[Trend Indicators](../t/trend_indicators.md)**: These help identify the direction of the [market](../m/market.md). Examples include Moving Averages (SMA and EMA) and the [Average Directional Index](../a/average_directional_index_(adx).md) (ADX). -2. **[Momentum Indicators](../m/momentum_indicators.md)**: These measure the rate of change in the price of an [asset](../a/asset.md). Examples include the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) and the Moving Average Convergence [Divergence](../d/divergence.md) (MACD). +2. **[Momentum Indicators](../m/momentum_indicators.md)**: These measure the rate of change in the price of an [asset](../a/asset.md). Examples include the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) and the Moving Average Convergence [Divergence](../d/divergence.md) (MACD). 3. **[Volatility](../v/volatility.md) Indicators**: These assess the degree of price variation over a given period. Examples include [Bollinger Bands](../b/bollinger_bands.md) and the [Average True Range](../a/average_true_range_(atr).md) (ATR). By leveraging these [technical indicators](../t/technical_indicators.md) in algo-[trading strategies](../t/trading_strategies.md), a trading system can automatically generate buy or sell signals based on pre-defined criteria, enhancing the effectiveness and [efficiency](../e/efficiency.md) of the trading process. diff --git a/en/pedia/t/technical_indicator_strategies.md b/en/pedia/t/technical_indicator_strategies.md index acd6cb49..70e81305 100644 --- a/en/pedia/t/technical_indicator_strategies.md +++ b/en/pedia/t/technical_indicator_strategies.md @@ -120,7 +120,7 @@ data['Signal'] = np.where(data['SMA_20'] > data['SMA_50'], 1, 0) # Trade Implementation def generate_signals(data): - signals = pd.DataFrame([index](../i/index.md)=data.[index](../i/index.md)) + signals = pd.DataFrame([index](../i/index_instrument.md)=data.[index](../i/index_instrument.md)) signals['Signal'] = 0.0 signals['Signal'] = np.where(data['SMA_20'] > data['SMA_50'], 1.0, 0.0) signals['Positions'] = signals['Signal'].diff() diff --git a/en/pedia/t/technical_indicators_in_trading.md b/en/pedia/t/technical_indicators_in_trading.md index b2ef91f0..d413e2d9 100644 --- a/en/pedia/t/technical_indicators_in_trading.md +++ b/en/pedia/t/technical_indicators_in_trading.md @@ -28,7 +28,7 @@ where: ### Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It oscillates between 0 and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It oscillates between 0 and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. **Formula:** \[ \text{RSI} = 100 - \frac{100}{1 + \frac{\text{Average [Gain](../g/gain.md)}}{\text{Average Loss}}} \] diff --git a/en/pedia/t/tehran_stock_exchange_(tse).md b/en/pedia/t/tehran_stock_exchange_(tse).md index b1b751ce..120523da 100644 --- a/en/pedia/t/tehran_stock_exchange_(tse).md +++ b/en/pedia/t/tehran_stock_exchange_(tse).md @@ -35,8 +35,8 @@ The TSE provides a [range](../r/range.md) of trading and investment [options](.. Several indices are used to measure [market](../m/market.md) performance on the TSE: -- **TSE All-Share [Index](../i/index.md) (TEPIX):** The main [index](../i/index.md) that tracks the overall performance of all [listed](../l/listed.md) companies. -- **Iran Farabourse [Index](../i/index.md) (IFB):** Tracks the performance of companies [listed](../l/listed.md) on the [over-the-counter market](../o/over-the-counter_market.md). +- **TSE All-Share [Index](../i/index_instrument.md) (TEPIX):** The main [index](../i/index_instrument.md) that tracks the overall performance of all [listed](../l/listed.md) companies. +- **Iran Farabourse [Index](../i/index_instrument.md) (IFB):** Tracks the performance of companies [listed](../l/listed.md) on the [over-the-counter market](../o/over-the-counter_market.md). ## Trading Mechanisms diff --git a/en/pedia/t/tel_aviv_stock_exchange_(tase).md b/en/pedia/t/tel_aviv_stock_exchange_(tase).md index ab02f495..a07d9c67 100644 --- a/en/pedia/t/tel_aviv_stock_exchange_(tase).md +++ b/en/pedia/t/tel_aviv_stock_exchange_(tase).md @@ -49,18 +49,18 @@ TASE provides a platform for various ETFs that track indices, sectors, or commod #### Derivatives -The [derivatives](../d/derivatives.md) [market](../m/market.md) at TASE includes [options](../o/options.md) and [futures contracts](../f/futures_contracts.md) based on [equity](../e/equity.md) indices, individual [stocks](../s/stock.md), and foreign currencies. [Options](../o/options.md) on the TA-35 [Index](../i/index.md), for instance, are among the most actively traded [derivatives](../d/derivatives.md). +The [derivatives](../d/derivatives.md) [market](../m/market.md) at TASE includes [options](../o/options.md) and [futures contracts](../f/futures_contracts.md) based on [equity](../e/equity.md) indices, individual [stocks](../s/stock.md), and foreign currencies. [Options](../o/options.md) on the TA-35 [Index](../i/index_instrument.md), for instance, are among the most actively traded [derivatives](../d/derivatives.md). ## Market Indices TASE offers several [market](../m/market.md) indices that reflect the performance of different segments of the [market](../m/market.md). Some of the key indices are: -- **TA-35 [Index](../i/index.md):** Represents the top 35 companies by [market capitalization](../m/market_capitalization.md). -- **TA-90 [Index](../i/index.md):** Represents the next 90 companies by [market capitalization](../m/market_capitalization.md). -- **TA-125 [Index](../i/index.md):** Combines the TA-35 and TA-90 indices. -- **TA-SME60 [Index](../i/index.md):** Covers 60 small and medium-sized enterprises. +- **TA-35 [Index](../i/index_instrument.md):** Represents the top 35 companies by [market capitalization](../m/market_capitalization.md). +- **TA-90 [Index](../i/index_instrument.md):** Represents the next 90 companies by [market capitalization](../m/market_capitalization.md). +- **TA-125 [Index](../i/index_instrument.md):** Combines the TA-35 and TA-90 indices. +- **TA-SME60 [Index](../i/index_instrument.md):** Covers 60 small and medium-sized enterprises. -These indices provide benchmarks for investors and are often the [basis](../b/basis.md) for [index](../i/index.md) funds and ETFs. +These indices provide benchmarks for investors and are often the [basis](../b/basis.md) for [index](../i/index_instrument.md) funds and ETFs. ## Listed Companies diff --git a/en/pedia/t/temporal_aggregation.md b/en/pedia/t/temporal_aggregation.md index 451b17b9..67157e5d 100644 --- a/en/pedia/t/temporal_aggregation.md +++ b/en/pedia/t/temporal_aggregation.md @@ -24,7 +24,7 @@ Temporal [aggregation](../a/aggregation.md) refers to the process of summarizing 1. **[Trend Analysis](../t/trend_analysis.md)**: Aggregated data helps in identifying short-term and long-term trends, which are crucial for making buy or sell decisions. 2. **[Volatility](../v/volatility.md) Measurement**: Aggregated data over longer intervals can be used to measure [market](../m/market.md) [volatility](../v/volatility.md), an essential [factor](../f/factor.md) in [risk management](../r/risk_management.md). -3. **Strategy Development**: [Quantitative strategies](../q/quantitative_strategies_in_trading.md) often rely on aggregated indicators such as moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), and [Bollinger Bands](../b/bollinger_bands.md), which require aggregated data. +3. **Strategy Development**: [Quantitative strategies](../q/quantitative_strategies_in_trading.md) often rely on aggregated indicators such as moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), and [Bollinger Bands](../b/bollinger_bands.md), which require aggregated data. 4. **[Backtesting](../b/backtesting.md)**: Temporal [aggregation](../a/aggregation.md) allows for more efficient [backtesting](../b/backtesting.md) of [trading strategies](../t/trading_strategies.md) by reducing the data [volume](../v/volume.md) while preserving essential characteristics. 5. **[Anomaly Detection](../a/anomaly_detection.md)**: Helps in identifying unusual patterns or outliers in the data, which could indicate significant [market](../m/market.md) events or errors in data collection. diff --git a/en/pedia/t/temporal_patterns.md b/en/pedia/t/temporal_patterns.md index 3986c841..77930280 100644 --- a/en/pedia/t/temporal_patterns.md +++ b/en/pedia/t/temporal_patterns.md @@ -51,7 +51,7 @@ Machine learning provides advanced tools for [pattern recognition](../p/pattern_ ### 3. Technical Indicators [Technical indicators](../t/technical_indicators.md) are mathematical calculations based on historical price and [volume](../v/volume.md) data: - **Moving Averages**: Simple Moving Average (SMA), Exponential Moving Average (EMA) used to smooth out price data. -- **Oscillators**: [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), [Stochastic Oscillator](../s/stochastic_oscillator.md) to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **Oscillators**: [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), [Stochastic Oscillator](../s/stochastic_oscillator.md) to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **[Volume](../v/volume.md)-Based Indicators**: On-Balance [Volume](../v/volume.md) (OBV), Accumulation/[Distribution](../d/distribution.md) Line to confirm price trends through [volume analysis](../v/volume_analysis.md). ## Examples of Application diff --git a/en/pedia/t/tenkan-sen_(conversion_line).md b/en/pedia/t/tenkan-sen_(conversion_line).md index 6836c2b0..9b4bbfa4 100644 --- a/en/pedia/t/tenkan-sen_(conversion_line).md +++ b/en/pedia/t/tenkan-sen_(conversion_line).md @@ -68,7 +68,7 @@ Swing traders can use the Tenkan-Sen to: Given its straightforward calculation, the Tenkan-Sen is often incorporated into [algorithmic trading strategies](../a/algorithmic_trading_strategies.md) to: - Define signal triggers based on its cross with other Ichimoku lines or price levels. - Implement mean-reversion strategies by taking trades when price deviates significantly from the Tenkan-Sen. -- Develop hybrid models combining Ichimoku signals with other popular indicators like [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or MACD. +- Develop hybrid models combining Ichimoku signals with other popular indicators like [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or MACD. ## Real-World Example diff --git a/en/pedia/t/terms_of_trade_(tot).md b/en/pedia/t/terms_of_trade_(tot).md index c0439c11..8de3e74e 100644 --- a/en/pedia/t/terms_of_trade_(tot).md +++ b/en/pedia/t/terms_of_trade_(tot).md @@ -4,15 +4,15 @@ In the world of international [economics](../e/economics.md) and [finance](../f/ ## Definition and Calculation -At its core, the Terms of [Trade](../t/trade.md) [index](../i/index.md) is computed as follows: +At its core, the Terms of [Trade](../t/trade.md) [index](../i/index_instrument.md) is computed as follows: -\[ \text{TOT} = \left( \frac{\text{Index of [Export](../e/export.md) Prices}}{\text{[Index](../i/index.md) of [Import](../i/import.md) Prices}} \right) \times 100 \] +\[ \text{TOT} = \left( \frac{\text{Index of [Export](../e/export.md) Prices}}{\text{[Index](../i/index_instrument.md) of [Import](../i/import.md) Prices}} \right) \times 100 \] Where: -- **[Index](../i/index.md) of [Export](../e/export.md) Prices** reflects the average price received for the goods exported. -- **[Index](../i/index.md) of [Import](../i/import.md) Prices** indicates the average price paid for the goods imported. +- **[Index](../i/index_instrument.md) of [Export](../e/export.md) Prices** reflects the average price received for the goods exported. +- **[Index](../i/index_instrument.md) of [Import](../i/import.md) Prices** indicates the average price paid for the goods imported. -A TOT [index](../i/index.md) greater than 100 implies that the country is benefiting from favorable [trade](../t/trade.md) conditions - it can buy more [import](../i/import.md) goods for a given quantity of exports. Conversely, a TOT [value](../v/value.md) less than 100 suggests unfavorable [trade](../t/trade.md) conditions. +A TOT [index](../i/index_instrument.md) greater than 100 implies that the country is benefiting from favorable [trade](../t/trade.md) conditions - it can buy more [import](../i/import.md) goods for a given quantity of exports. Conversely, a TOT [value](../v/value.md) less than 100 suggests unfavorable [trade](../t/trade.md) conditions. ## Importance diff --git a/en/pedia/t/thailand_stock_exchange_(set).md b/en/pedia/t/thailand_stock_exchange_(set).md index b3fbc926..ef4abc1e 100644 --- a/en/pedia/t/thailand_stock_exchange_(set).md +++ b/en/pedia/t/thailand_stock_exchange_(set).md @@ -26,10 +26,10 @@ Key trading [statistics](../s/statistics.md) like price, [volume](../v/volume.md Several indices provide comprehensive insights into the performance of the overarching [market](../m/market.md), including but not limited to: -1. **SET [Index](../i/index.md)**: The flagship [index](../i/index.md) that measures the price movements of common [stocks](../s/stock.md) [listed](../l/listed.md) on SET. +1. **SET [Index](../i/index_instrument.md)**: The flagship [index](../i/index_instrument.md) that measures the price movements of common [stocks](../s/stock.md) [listed](../l/listed.md) on SET. 2. **SET50**: Represents the 50 largest companies by [market](../m/market.md) cap. 3. **SET100**: Similar to SET50 but includes the top 100 companies. -4. **sSET [Index](../i/index.md)**: Inclusion of smaller [listed](../l/listed.md) companies, complementing the larger indices. +4. **sSET [Index](../i/index_instrument.md)**: Inclusion of smaller [listed](../l/listed.md) companies, complementing the larger indices. 5. **SETCLMV**: Stands for Cambodia, Laos, Myanmar, and Vietnam, focusing on companies with significant [business](../b/business.md) operations in these countries. ## Trading Systems and Technology diff --git a/en/pedia/t/third_world.md b/en/pedia/t/third_world.md index e59b1e84..10761202 100644 --- a/en/pedia/t/third_world.md +++ b/en/pedia/t/third_world.md @@ -1,6 +1,6 @@ # Third World -The term "Third World" was originally coined during the Cold War to describe countries that were neither aligned with NATO (the [First World](../f/first_world.md)) nor the Communist Bloc (the [Second World](../s/second_world.md)). However, its meaning has evolved over time to generally refer to developing countries with lower levels of [industrialization](../i/industrialization.md), lower living standards, and lower Human Development [Index](../i/index.md) (HDI) scores compared to more developed nations. Today, the term is often considered outdated and is gradually being replaced by more precise terms such as "developing countries" or "Global South." +The term "Third World" was originally coined during the Cold War to describe countries that were neither aligned with NATO (the [First World](../f/first_world.md)) nor the Communist Bloc (the [Second World](../s/second_world.md)). However, its meaning has evolved over time to generally refer to developing countries with lower levels of [industrialization](../i/industrialization.md), lower living standards, and lower Human Development [Index](../i/index_instrument.md) (HDI) scores compared to more developed nations. Today, the term is often considered outdated and is gradually being replaced by more precise terms such as "developing countries" or "Global South." ## Historical Context @@ -28,7 +28,7 @@ Over time, the term "Third World" came to be associated less with political alig - **Education**: Lower literacy rates and less access to quality education. - **Healthcare**: Poor healthcare [infrastructure](../i/infrastructure.md), high infant mortality rates, and lower [life expectancy](../l/life_expectancy.md). -- **Living Standards**: Lower Human Development [Index](../i/index.md) (HDI) scores, indicating poorer [quality of life](../q/quality_of_life.md). +- **Living Standards**: Lower Human Development [Index](../i/index_instrument.md) (HDI) scores, indicating poorer [quality of life](../q/quality_of_life.md). ### Political Indicators diff --git a/en/pedia/t/three_black_crows.md b/en/pedia/t/three_black_crows.md index ad19af5c..fe1c52ae 100644 --- a/en/pedia/t/three_black_crows.md +++ b/en/pedia/t/three_black_crows.md @@ -63,7 +63,7 @@ In [algorithmic trading](../a/accountability.md), recognizing the Three Black Cr ### Implementation Algorithmic traders can integrate the Three Black Crows pattern into broader [trading systems](../t/trading_systems.md) by: -- **Combining with [Technical Indicators](../t/technical_indicator.md):** Coupling with indicators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) for enhanced accuracy. +- **Combining with [Technical Indicators](../t/technical_indicator.md):** Coupling with indicators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD) for enhanced accuracy. - **[Automated Trading Systems](../a/automated_trading_systems.md):** Using the pattern as a trigger within [automated trading systems](../a/automated_trading_systems.md) to execute trades based on predefined criteria. ### Example diff --git a/en/pedia/t/thrift_savings_plan_(tsp).md b/en/pedia/t/thrift_savings_plan_(tsp).md index e85a3a7b..b196438f 100644 --- a/en/pedia/t/thrift_savings_plan_(tsp).md +++ b/en/pedia/t/thrift_savings_plan_(tsp).md @@ -17,9 +17,9 @@ The TSP offers five core investment funds, each designed with specific [risk](.. - **G [Fund](../f/fund.md) (Government Securities [Investment Fund](../i/investment_fund.md)):** This [fund](../f/fund.md) invests in short-term [U.S. Treasury](../u/u.s._treasury.md) securities and aims to provide a [rate of return](../r/rate_of_return.md) higher than [inflation](../i/inflation.md) without exposing participants to any [risk](../r/risk.md) of loss. - **F [Fund](../f/fund.md) ([Fixed Income](../f/fixed_income.md) [Investment Fund](../i/investment_fund.md)):** The F [Fund](../f/fund.md) is invested in a broad [range](../r/range.md) of fixed-[income](../i/income.md) securities representing the U.S. [bond market](../b/bond_market.md). -- **C [Fund](../f/fund.md) ([Common Stock](../c/common_stock.md) [Index](../i/index.md) [Investment Fund](../i/investment_fund.md)):** The C [Fund](../f/fund.md) tracks the S&P 500 [Index](../i/index.md), [offering](../o/offering.md) exposure to large-cap U.S. equities. -- **S [Fund](../f/fund.md) (Small [Capitalization](../c/capitalization.md) Stock [Index](../i/index.md) [Investment Fund](../i/investment_fund.md)):** The S [Fund](../f/fund.md) follows the Dow Jones U.S. Completion TSM [Index](../i/index.md), which includes U.S. [stocks](../s/stock.md) not found in the C [Fund](../f/fund.md), mainly small- and [mid-cap stocks](../m/mid-cap_stocks.md). -- **I [Fund](../f/fund.md) (International Stock [Index](../i/index.md) [Investment Fund](../i/investment_fund.md)):** This [fund](../f/fund.md) mirrors the performance of the MSCI [EAFE Index](../e/eafe_index.md), giving participants exposure to international [stocks](../s/stock.md) in developed markets outside of North America. +- **C [Fund](../f/fund.md) ([Common Stock](../c/common_stock.md) [Index](../i/index_instrument.md) [Investment Fund](../i/investment_fund.md)):** The C [Fund](../f/fund.md) tracks the S&P 500 [Index](../i/index_instrument.md), [offering](../o/offering.md) exposure to large-cap U.S. equities. +- **S [Fund](../f/fund.md) (Small [Capitalization](../c/capitalization.md) Stock [Index](../i/index_instrument.md) [Investment Fund](../i/investment_fund.md)):** The S [Fund](../f/fund.md) follows the Dow Jones U.S. Completion TSM [Index](../i/index_instrument.md), which includes U.S. [stocks](../s/stock.md) not found in the C [Fund](../f/fund.md), mainly small- and [mid-cap stocks](../m/mid-cap_stocks.md). +- **I [Fund](../f/fund.md) (International Stock [Index](../i/index_instrument.md) [Investment Fund](../i/investment_fund.md)):** This [fund](../f/fund.md) mirrors the performance of the MSCI [EAFE Index](../e/eafe_index.md), giving participants exposure to international [stocks](../s/stock.md) in developed markets outside of North America. In addition to these five funds, TSP also offers Lifecycle (L) Funds, which are target-date funds designed to automatically adjust the [asset allocation](../a/asset_allocation.md) mix based on the participant's expected retirement date. diff --git a/en/pedia/t/tick.md b/en/pedia/t/tick.md index 7ec0311c..259b0983 100644 --- a/en/pedia/t/tick.md +++ b/en/pedia/t/tick.md @@ -26,7 +26,7 @@ For most [equity](../e/equity.md) securities in the United States, the [tick siz ### Futures Contracts -In [futures](../f/futures.md) markets, the [tick size](../t/tick_size.md) is often predetermined by the [exchange](../e/exchange.md) where the contract is traded. For instance, the [tick size](../t/tick_size.md) for an [E-mini](../e/e-mini.md) S&P 500 [futures contract](../f/futures_contract.md) on the Chicago Mercantile [Exchange](../e/exchange.md) (CME) is 0.25 [index](../i/index.md) points, which translates to $12.50 per contract. Different [futures contracts](../f/futures_contracts.md) [will](../w/will.md) have their unique tick sizes depending on the base [value](../v/value.md) of the [asset](../a/asset.md) being traded. +In [futures](../f/futures.md) markets, the [tick size](../t/tick_size.md) is often predetermined by the [exchange](../e/exchange.md) where the contract is traded. For instance, the [tick size](../t/tick_size.md) for an [E-mini](../e/e-mini.md) S&P 500 [futures contract](../f/futures_contract.md) on the Chicago Mercantile [Exchange](../e/exchange.md) (CME) is 0.25 [index](../i/index_instrument.md) points, which translates to $12.50 per contract. Different [futures contracts](../f/futures_contracts.md) [will](../w/will.md) have their unique tick sizes depending on the base [value](../v/value.md) of the [asset](../a/asset.md) being traded. ### Forex diff --git a/en/pedia/t/tick_size.md b/en/pedia/t/tick_size.md index 271b6ce9..619d12fe 100644 --- a/en/pedia/t/tick_size.md +++ b/en/pedia/t/tick_size.md @@ -27,7 +27,7 @@ For equities, [tick](../t/tick.md) size is typically $0.01 for [stocks](../s/sto #### Futures -[Futures contracts](../f/futures_contracts.md) have [tick](../t/tick.md) sizes defined by the [exchange](../e/exchange.md). For example, the S&P 500 [E-mini](../e/e-mini.md) [futures contracts](../f/futures_contracts.md) traded on the Chicago Mercantile [Exchange](../e/exchange.md) (CME) have a [tick](../t/tick.md) size of 0.25 [index](../i/index.md) points. +[Futures contracts](../f/futures_contracts.md) have [tick](../t/tick.md) sizes defined by the [exchange](../e/exchange.md). For example, the S&P 500 [E-mini](../e/e-mini.md) [futures contracts](../f/futures_contracts.md) traded on the Chicago Mercantile [Exchange](../e/exchange.md) (CME) have a [tick](../t/tick.md) size of 0.25 [index](../i/index_instrument.md) points. #### Options diff --git a/en/pedia/t/tight_monetary_policy.md b/en/pedia/t/tight_monetary_policy.md index 536e9f5e..298d791a 100644 --- a/en/pedia/t/tight_monetary_policy.md +++ b/en/pedia/t/tight_monetary_policy.md @@ -78,7 +78,7 @@ Successfully implementing tight [monetary policy](../m/monetary_policy.md) requi Central banks rely heavily on economic data and indicators to inform their decisions, including: - **[Inflation](../i/inflation.md) Rates**: - Central banks closely monitor Consumer Price [Index](../i/index.md) (CPI) and Producer Price [Index](../i/index.md) (PPI) data to gauge inflationary pressures. + Central banks closely monitor Consumer Price [Index](../i/index_instrument.md) (CPI) and Producer Price [Index](../i/index_instrument.md) (PPI) data to gauge inflationary pressures. - **Gross Domestic Product (GDP)**: GDP [growth rates](../g/growth_rates_in_trading.md) provide insights into the overall economic activity and [momentum](../m/momentum.md), helping to identify overheating. diff --git a/en/pedia/t/time-weighted_return_strategies.md b/en/pedia/t/time-weighted_return_strategies.md index 5ccd68bc..54b888ef 100644 --- a/en/pedia/t/time-weighted_return_strategies.md +++ b/en/pedia/t/time-weighted_return_strategies.md @@ -21,7 +21,7 @@ This method ensures that the focus remains on the investment performance, indepe [Algorithmic trading](../a/algorithmic_trading.md), or algotrading, relies on automated [trading strategies](../t/trading_strategies.md) that execute orders based on pre-defined criteria. The performance of these strategies can be influenced by various [market](../m/market.md) conditions and [execution](../e/execution.md) factors. Using time-[weighted](../w/weighted.md) [return](../r/return.md) to measure the performance of algotrading strategies helps in several ways: 1. **Consistency:** TWR provides a consistent [basis](../b/basis.md) for comparing different strategies, regardless of the [capital](../c/capital.md) inflows and outflows during the evaluation period. -2. **Benchmarking:** By eliminating the [noise](../n/noise.md) created by cash flows, TWR allows for a fair comparison between the actual performance of an algorithmic strategy and a [benchmark](../b/benchmark.md) [index](../i/index.md) or another strategy. +2. **Benchmarking:** By eliminating the [noise](../n/noise.md) created by cash flows, TWR allows for a fair comparison between the actual performance of an algorithmic strategy and a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) or another strategy. 3. **Strategy Evaluation:** Traders and investors can isolate the impact of [market](../m/market.md) conditions and [execution](../e/execution.md) [efficiency](../e/efficiency.md) on the strategy's performance, leading to better insights and potential improvements. ### Implementing Time-Weighted Return Strategies diff --git a/en/pedia/t/time_decay_strategies.md b/en/pedia/t/time_decay_strategies.md index 5d4281c7..84ed46b5 100644 --- a/en/pedia/t/time_decay_strategies.md +++ b/en/pedia/t/time_decay_strategies.md @@ -88,7 +88,7 @@ A [trader](../t/trader.md) devises an [iron condor](../i/iron_condor.md) strateg - Buy a [call option](../c/call_option.md) at a [strike price](../s/strike_price.md) of 4000 - Buy a [put option](../p/put.md) at a [strike price](../s/strike_price.md) of 3800 -Each option has a one-month expiry. The total [premium](../p/premium.md) collected is $1500. As time progresses, the [extrinsic value](../e/extrinsic_value.md) of the [options](../o/options.md) decreases, and if the S&P 500 [index](../i/index.md) remains within the 3850-3950 [range](../r/range.md), all [options](../o/options.md) expire worthless, allowing the [trader](../t/trader.md) to keep the full [premium](../p/premium.md) collected initially. +Each option has a one-month expiry. The total [premium](../p/premium.md) collected is $1500. As time progresses, the [extrinsic value](../e/extrinsic_value.md) of the [options](../o/options.md) decreases, and if the S&P 500 [index](../i/index_instrument.md) remains within the 3850-3950 [range](../r/range.md), all [options](../o/options.md) expire worthless, allowing the [trader](../t/trader.md) to keep the full [premium](../p/premium.md) collected initially. ## Conclusion diff --git a/en/pedia/t/time_series_modeling.md b/en/pedia/t/time_series_modeling.md index 6de36bde..76a4ccc4 100644 --- a/en/pedia/t/time_series_modeling.md +++ b/en/pedia/t/time_series_modeling.md @@ -83,7 +83,7 @@ Statistical [arbitrage](../a/arbitrage.md) involves trading a portfolio of secur ### Momentum Trading -[Momentum trading](../m/momentum_trading.md) strategies [capitalize](../c/capitalize.md) on persistent trends in [time series](../t/time_series.md) data. [Momentum indicators](../m/momentum_indicators.md) like Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and On-Balance [Volume](../v/volume.md) (OBV) rely on [time series analysis](../t/time_series_analysis.md). +[Momentum trading](../m/momentum_trading.md) strategies [capitalize](../c/capitalize.md) on persistent trends in [time series](../t/time_series.md) data. [Momentum indicators](../m/momentum_indicators.md) like Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and On-Balance [Volume](../v/volume.md) (OBV) rely on [time series analysis](../t/time_series_analysis.md). ### Market Microstructure Analysis diff --git a/en/pedia/t/timing_models_in_trading.md b/en/pedia/t/timing_models_in_trading.md index 983478e4..61b931a3 100644 --- a/en/pedia/t/timing_models_in_trading.md +++ b/en/pedia/t/timing_models_in_trading.md @@ -8,7 +8,7 @@ In the world of [finance](../f/finance.md), where fortunes are made and lost in ## Key Components of Timing Models -1. **[Market Indicators](../m/market_indicators.md)**: [Timing models](../t/timing_models.md) often rely on a set of [market indicators](../m/market_indicators.md) that gauge the overall [market sentiment](../m/market_sentiment.md) and [momentum](../m/momentum.md). These indicators include moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md), among others. Each [indicator](../i/indicator.md) provides unique insights into price trends and [volatility](../v/volatility.md). +1. **[Market Indicators](../m/market_indicators.md)**: [Timing models](../t/timing_models.md) often rely on a set of [market indicators](../m/market_indicators.md) that gauge the overall [market sentiment](../m/market_sentiment.md) and [momentum](../m/momentum.md). These indicators include moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md), among others. Each [indicator](../i/indicator.md) provides unique insights into price trends and [volatility](../v/volatility.md). 2. **Signal Generation**: At the heart of [timing models](../t/timing_models.md) is the generation of buy or sell signals based on predefined criteria. These signals are derived from the analysis of [market indicators](../m/market_indicators.md) and other data inputs. Signal generation can be rule-based, where specific thresholds trigger trades, or model-based, involving more complex algorithms. diff --git a/en/pedia/t/timing_the_market.md b/en/pedia/t/timing_the_market.md index 5e78009a..5d6190ef 100644 --- a/en/pedia/t/timing_the_market.md +++ b/en/pedia/t/timing_the_market.md @@ -23,7 +23,7 @@ Timing the [market](../m/market.md) is a [trading strategy](../t/trading_strateg Effective [market timing](../m/market_timing.md) often involves the use of sophisticated tools and techniques, many of which are underpinned by the aforementioned theories. Some common ones include: - **Moving Averages**: Used to smooth out price data to identify trends. Popular moving averages include the 50-day and 200-day moving averages. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: A [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: A [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: A [trend](../t/trend.md)-following [momentum](../m/momentum.md) [indicator](../i/indicator.md) that shows the relationship between two moving averages of a [security](../s/security.md)’s price. - **[Fibonacci Retracement](../f/fibonacci_retracement.md)**: A method of [technical analysis](../t/technical_analysis.md) for determining [support and resistance](../s/support_and_resistance.md) levels. - **[Economic Indicators](../e/economic_indicators.md)**: Macroeconomic data such as GDP [growth rates](../g/growth_rates_in_trading.md), [inflation](../i/inflation.md) rates, and [unemployment](../u/unemployment.md) figures can also provide context for predicting [market](../m/market.md) movements. diff --git a/en/pedia/t/tmx_group_(toronto_stock_exchange).md b/en/pedia/t/tmx_group_(toronto_stock_exchange).md index eb8a21d3..80b614a9 100644 --- a/en/pedia/t/tmx_group_(toronto_stock_exchange).md +++ b/en/pedia/t/tmx_group_(toronto_stock_exchange).md @@ -27,7 +27,7 @@ The TSX Venture [Exchange](../e/exchange.md) serves as a junior [market](../m/ma ## Data and Indices ### S&P/TSX Composite Index -The S&P/TSX Composite [Index](../i/index.md) is the [benchmark](../b/benchmark.md) [index](../i/index.md) for the performance of the Canadian [equity market](../e/equity_market.md). It includes around 250 of the largest companies [listed](../l/listed.md) on the TSX. +The S&P/TSX Composite [Index](../i/index_instrument.md) is the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) for the performance of the Canadian [equity market](../e/equity_market.md). It includes around 250 of the largest companies [listed](../l/listed.md) on the TSX. ### Data Services TMX Group offers comprehensive [market](../m/market.md) data services, providing real-time and historical data that can be used for investment research, [algorithmic trading](../a/accountability.md), and [risk management](../r/risk_management.md). diff --git a/en/pedia/t/tokyo_price_index_(topix).md b/en/pedia/t/tokyo_price_index_(topix).md index 3f194ea3..f00f0508 100644 --- a/en/pedia/t/tokyo_price_index_(topix).md +++ b/en/pedia/t/tokyo_price_index_(topix).md @@ -1,12 +1,12 @@ # Tokyo Price Index (TOPIX) -The Tokyo Price [Index](../i/index.md), commonly referred to as TOPIX, is one of Japan's premier [stock market](../s/stock_market.md) indices. It tracks all domestic companies [listed](../l/listed.md) on the Tokyo Stock [Exchange](../e/exchange.md)'s (TSE) First Section. Introduced in 1968, TOPIX is a free-[float](../f/float.md) adjusted [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md) that serves as a barometer for the Japanese [equity market](../e/equity_market.md) as well as an important gauge for investors and [fund](../f/fund.md) managers both within Japan and internationally. +The Tokyo Price [Index](../i/index_instrument.md), commonly referred to as TOPIX, is one of Japan's premier [stock market](../s/stock_market.md) indices. It tracks all domestic companies [listed](../l/listed.md) on the Tokyo Stock [Exchange](../e/exchange.md)'s (TSE) First Section. Introduced in 1968, TOPIX is a free-[float](../f/float.md) adjusted [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md) that serves as a barometer for the Japanese [equity market](../e/equity_market.md) as well as an important gauge for investors and [fund](../f/fund.md) managers both within Japan and internationally. ## History and Development TOPIX was established on July 1, 1968. While the [Nikkei](../n/nikkei.md) 225, another well-known Japanese stock [market index](../m/market_index.md), is a [price-weighted index](../p/price-weighted_index.md) similar to the Dow Jones Industrial Average, TOPIX offers a broader and arguably more comprehensive overview of the Japanese [stock market](../s/stock_market.md) since it includes all companies [listed](../l/listed.md) in the TSE First Section. ## Index Calculation -TOPIX is a free-[float](../f/float.md) adjusted [capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md). This means that the [index](../i/index.md) calculation takes into account only the readily available [shares](../s/shares.md) in the [market](../m/market.md), excluding those not available for trading such as [shares](../s/shares.md) held by governments, strategic investors, and closely held [shares](../s/shares.md). The formula for calculating TOPIX is as follows: +TOPIX is a free-[float](../f/float.md) adjusted [capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md). This means that the [index](../i/index_instrument.md) calculation takes into account only the readily available [shares](../s/shares.md) in the [market](../m/market.md), excluding those not available for trading such as [shares](../s/shares.md) held by governments, strategic investors, and closely held [shares](../s/shares.md). The formula for calculating TOPIX is as follows: ``` TOPIX = (Current [Market Value](../m/market_value.md) of Constituents / Base [Market Value](../m/market_value.md)) × 100 @@ -27,7 +27,7 @@ TOPIX encompasses all companies in the TSE First Section, typically numbering ar [Sector indices](../s/sector_indices.md) are also available within TOPIX, [offering](../o/offering.md) investors a more granular look at [market](../m/market.md) performance across different industries. ## Index Reviews and Rebalancing -Reviews and [rebalancing](../r/rebalancing.md) of TOPIX constituents occur periodically to ensure that the [index](../i/index.md) remains an accurate reflection of the [market](../m/market.md). The Tokyo Stock [Exchange](../e/exchange.md) conducts a review every April, recalibrating the list of companies to account for mergers, acquisitions, delistings, and other corporate actions. +Reviews and [rebalancing](../r/rebalancing.md) of TOPIX constituents occur periodically to ensure that the [index](../i/index_instrument.md) remains an accurate reflection of the [market](../m/market.md). The Tokyo Stock [Exchange](../e/exchange.md) conducts a review every April, recalibrating the list of companies to account for mergers, acquisitions, delistings, and other corporate actions. ## Importance and Uses TOPIX serves [multiple](../m/multiple.md) purposes within the financial ecosystem: @@ -39,10 +39,10 @@ TOPIX serves [multiple](../m/multiple.md) purposes within the financial ecosyste Given its wide coverage of Japanese companies, TOPIX is a significant [indicator](../i/indicator.md) of the health of Japan’s [economy](../e/economy.md). 3. **Investment Products:** - TOPIX is utilized as a base for various financial products including [index](../i/index.md) funds, ETFs, and [derivatives](../d/derivatives.md) like [futures](../f/futures.md) and [options](../o/options.md). + TOPIX is utilized as a base for various financial products including [index](../i/index_instrument.md) funds, ETFs, and [derivatives](../d/derivatives.md) like [futures](../f/futures.md) and [options](../o/options.md). ## Performance and Volatility -Over the decades, TOPIX has shown significant variance reflective of Japan's [economic conditions](../e/economic_conditions.md). Notably, the [index](../i/index.md) soared during Japan's [asset](../a/asset.md) price bubble in the late 1980s but plunged significantly during the [market](../m/market.md) crash of the early 1990s. It has since experienced [multiple](../m/multiple.md) periods of growth and decline, affected by both domestic and international economic factors. +Over the decades, TOPIX has shown significant variance reflective of Japan's [economic conditions](../e/economic_conditions.md). Notably, the [index](../i/index_instrument.md) soared during Japan's [asset](../a/asset.md) price bubble in the late 1980s but plunged significantly during the [market](../m/market.md) crash of the early 1990s. It has since experienced [multiple](../m/multiple.md) periods of growth and decline, affected by both domestic and international economic factors. ## Comparison to Other Indices ### TOPIX vs. Nikkei 225 @@ -59,7 +59,7 @@ TOPIX often finds itself compared against other global indices, such as: These comparisons highlight TOPIX's role in [global investment strategies](../g/global_investment_strategies.md), [offering](../o/offering.md) exposure to the Japanese [market](../m/market.md). ## TOPIX Sub-Indices -Beyond the headline [index](../i/index.md), TOPIX includes several sub-indices that cater to specific segments: +Beyond the headline [index](../i/index_instrument.md), TOPIX includes several sub-indices that cater to specific segments: - **TOPIX Core30**: The 30 most significant [stocks](../s/stock.md). - **TOPIX 100**: The largest 100 companies. - **TOPIX Small**: Small-cap companies. diff --git a/en/pedia/t/top-down_investing.md b/en/pedia/t/top-down_investing.md index f1bc9abb..6859424d 100644 --- a/en/pedia/t/top-down_investing.md +++ b/en/pedia/t/top-down_investing.md @@ -68,10 +68,10 @@ For further information, visit [Bridgewater Associates](https://www.bridgewater. ### 1. Economic Indicators Tools such as [economic indicators](../e/economic_indicators.md) provide critical insights into the health of an [economy](../e/economy.md). Important indicators include: -- Industrial Production [Index](../i/index.md) -- Consumer Confidence [Index](../i/index.md) +- Industrial Production [Index](../i/index_instrument.md) +- Consumer Confidence [Index](../i/index_instrument.md) - [Unemployment](../u/unemployment.md) Claims -- Purchasing Managers' [Index](../i/index.md) (PMI) +- Purchasing Managers' [Index](../i/index_instrument.md) (PMI) ### 2. Sector ETFs Sector-specific [exchange](../e/exchange.md)-traded funds (ETFs) can also be utilized to [gain](../g/gain.md) exposure to particular sectors without having to pick individual [stocks](../s/stock.md). Funds like the SPDR [Sector ETFs](../s/sector_etfs.md) enable investors to [capitalize](../c/capitalize.md) on sector trends. diff --git a/en/pedia/t/top-down_portfolio_management.md b/en/pedia/t/top-down_portfolio_management.md index 93aeb260..e6cbd78a 100644 --- a/en/pedia/t/top-down_portfolio_management.md +++ b/en/pedia/t/top-down_portfolio_management.md @@ -37,7 +37,7 @@ Once the macroeconomic conditions, sectors, and geographies are determined, inve 1. **[Valuation](../v/valuation.md) Metrics**: Important metrics include Price-to-[Earnings](../e/earnings.md) (P/E) ratios, Price-to-Book (P/B) ratios, and [Dividend Yield](../d/dividend_yield.md). These help assess whether a stock is over- or under-valued. 2. **[Fundamental Analysis](../f/fundamental_analysis.md)**: Analyzing company-specific factors such as [financial health](../f/financial_health.md), management quality, competitive advantages, and growth prospects. -3. **[Technical Analysis](../t/technical_analysis.md)**: Some investors also use [technical indicators](../t/technical_indicators.md) (e.g., moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md)) to time entries and exits. +3. **[Technical Analysis](../t/technical_analysis.md)**: Some investors also use [technical indicators](../t/technical_indicators.md) (e.g., moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)) to time entries and exits. 4. **[Earnings](../e/earnings.md) Reports**: Regular examination of [quarterly earnings reports](../q/quarterly_earnings_reports.md) to track company performance against expectations. ### Risk Management diff --git a/en/pedia/t/toronto_stock_exchange_(tsx).md b/en/pedia/t/toronto_stock_exchange_(tsx).md index 7bfb7214..27594b85 100644 --- a/en/pedia/t/toronto_stock_exchange_(tsx).md +++ b/en/pedia/t/toronto_stock_exchange_(tsx).md @@ -43,9 +43,9 @@ The TSX is recognized for its significant representation of certain sectors, esp Indices are essential for benchmarking and [market](../m/market.md) analysis. The TSX has several critical indices, which investors use to gauge [market](../m/market.md) performance: -- **S&P/TSX Composite [Index](../i/index.md)**: The [principal](../p/principal.md) broad-[market index](../m/market_index.md), representing around 70% of the [market capitalization](../m/market_capitalization.md) on the TSX. -- **S&P/TSX 60**: A subset of the Composite [Index](../i/index.md), featuring 60 of the largest Canadian companies. -- **S&P/TSX Venture Composite [Index](../i/index.md)**: Focuses on the smaller, growth-oriented companies [listed](../l/listed.md) on the TSX Venture [Exchange](../e/exchange.md). +- **S&P/TSX Composite [Index](../i/index_instrument.md)**: The [principal](../p/principal.md) broad-[market index](../m/market_index.md), representing around 70% of the [market capitalization](../m/market_capitalization.md) on the TSX. +- **S&P/TSX 60**: A subset of the Composite [Index](../i/index_instrument.md), featuring 60 of the largest Canadian companies. +- **S&P/TSX Venture Composite [Index](../i/index_instrument.md)**: Focuses on the smaller, growth-oriented companies [listed](../l/listed.md) on the TSX Venture [Exchange](../e/exchange.md). ## Trading Mechanisms on the TSX diff --git a/en/pedia/t/total_bond_fund.md b/en/pedia/t/total_bond_fund.md index d5fd86ff..9401efe5 100644 --- a/en/pedia/t/total_bond_fund.md +++ b/en/pedia/t/total_bond_fund.md @@ -90,15 +90,15 @@ Despite their benefits, Total [Bond](../b/bond.md) Funds are not without [risk]( Several well-known Total [Bond](../b/bond.md) Funds [offer](../o/offer.md) investors [options](../o/options.md) to [gain](../g/gain.md) broad exposure to the [bond market](../b/bond_market.md): ### 1. **Vanguard Total Bond Market Index Fund (VBTLX)** - [Vanguard Total Bond Market Index Fund](https://investor.vanguard.com/mutual-funds/profile/VBTLX) seeks to track the performance of the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Float](../f/float.md) Adjusted [Index](../i/index.md). It provides broad exposure to U.S. investment-grade bonds and has a low [expense ratio](../e/expense_ratio.md). + [Vanguard Total Bond Market Index Fund](https://investor.vanguard.com/mutual-funds/profile/VBTLX) seeks to track the performance of the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Float](../f/float.md) Adjusted [Index](../i/index_instrument.md). It provides broad exposure to U.S. investment-grade bonds and has a low [expense ratio](../e/expense_ratio.md). ### 2. **Fidelity Total Bond Fund (FTBFX)** [Fidelity Total Bond Fund](https://fundresearch.fidelity.com/mutual-funds/summary/31617K881) aims for a high level of current [income](../i/income.md) by [investing](../i/investing.md) in a mix of U.S. investment-grade bonds, high-[yield](../y/yield.md) bonds, and foreign bonds. ### 3. **Schwab U.S. Aggregate Bond ETF (SCHZ)** - [Schwab U.S. Aggregate Bond ETF](https://www.schwabassetmanagement.com/products/schz) is an [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF) that tracks the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index.md). It offers low-cost access to a diversified portfolio of bonds. + [Schwab U.S. Aggregate Bond ETF](https://www.schwabassetmanagement.com/products/schz) is an [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF) that tracks the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md). It offers low-cost access to a diversified portfolio of bonds. ### 4. **iShares Core U.S. Aggregate Bond ETF (AGG)** - [iShares Core U.S. Aggregate Bond ETF](https://www.ishares.com/us/products/239726/) seeks to track the investment results of an [index](../i/index.md) composed of the total U.S. investment-grade [bond market](../b/bond_market.md), providing exposure to a broad array of U.S. bonds. + [iShares Core U.S. Aggregate Bond ETF](https://www.ishares.com/us/products/239726/) seeks to track the investment results of an [index](../i/index_instrument.md) composed of the total U.S. investment-grade [bond market](../b/bond_market.md), providing exposure to a broad array of U.S. bonds. In conclusion, Total [Bond](../b/bond.md) Funds [offer](../o/offer.md) investors a convenient way to [gain](../g/gain.md) diversified exposure to the [bond market](../b/bond_market.md) with professional management, [income](../i/income.md) potential, and the ability to adjust quickly to changing [market](../m/market.md) conditions. However, assessing one's [risk tolerance](../r/risk_tolerance.md), investment objectives, and understanding the various risks involved is crucial for making an informed investment decision. By carefully evaluating factors like the [expense ratio](../e/expense_ratio.md), [duration](../d/duration.md), [credit](../c/credit.md) quality, [yield](../y/yield.md), and historical performance, investors can select a Total [Bond Fund](../b/bond_fund.md) that aligns with their financial goals and provides the appropriate balance of [risk](../r/risk.md) and [return](../r/return.md). \ No newline at end of file diff --git a/en/pedia/t/total_expense_ratio_(ter).md b/en/pedia/t/total_expense_ratio_(ter).md index 55e21e4c..c5aba6c3 100644 --- a/en/pedia/t/total_expense_ratio_(ter).md +++ b/en/pedia/t/total_expense_ratio_(ter).md @@ -62,7 +62,7 @@ These investment vehicles may have even higher TERs due to the complex strategie ### Index Funds -[Index](../i/index.md) funds, which aim to replicate the performance of a specific [index](../i/index.md), generally have low TERs because they require minimal [active management](../a/active_management.md). This makes them a popular choice for investors seeking cost-effective, diversified, and passive investment [options](../o/options.md). +[Index](../i/index_instrument.md) funds, which aim to replicate the performance of a specific [index](../i/index_instrument.md), generally have low TERs because they require minimal [active management](../a/active_management.md). This makes them a popular choice for investors seeking cost-effective, diversified, and passive investment [options](../o/options.md). ## TER vs. Other Cost Metrics diff --git a/en/pedia/t/total_return_analysis_techniques.md b/en/pedia/t/total_return_analysis_techniques.md index 0c3d2146..17aca980 100644 --- a/en/pedia/t/total_return_analysis_techniques.md +++ b/en/pedia/t/total_return_analysis_techniques.md @@ -78,7 +78,7 @@ The [Sharpe Ratio](../s/sharpe_ratio.md) measures the performance of an investme ### c. Alpha and Beta -[Alpha](../a/alpha.md) and [Beta](../b/beta.md) are used to compare the performance of a portfolio against a [benchmark](../b/benchmark.md) [index](../i/index.md). +[Alpha](../a/alpha.md) and [Beta](../b/beta.md) are used to compare the performance of a portfolio against a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). - **[Alpha](../a/alpha.md)**: Measures the [active return](../a/active_return.md) on an investment compared to a [market index](../m/market_index.md). - **Formula**: @@ -136,7 +136,7 @@ Understanding total returns helps traders manage risks better by analyzing how d For [fund](../f/fund.md) managers and investors, benchmarking total returns against [market](../m/market.md) indices can provide valuable insights into performance relative to broader markets. -- **Example**: Using S&P 500 [index](../i/index.md) as a [benchmark](../b/benchmark.md) to compare total returns of a diversified [equity](../e/equity.md) portfolio. +- **Example**: Using S&P 500 [index](../i/index_instrument.md) as a [benchmark](../b/benchmark.md) to compare total returns of a diversified [equity](../e/equity.md) portfolio. ## 7. Advanced Techniques and Models diff --git a/en/pedia/t/total_return_benchmarks.md b/en/pedia/t/total_return_benchmarks.md index d7bd71f9..22d3cae9 100644 --- a/en/pedia/t/total_return_benchmarks.md +++ b/en/pedia/t/total_return_benchmarks.md @@ -24,8 +24,8 @@ The [Total Return](../t/total_return.md) perspective is critical because it prov Several indices are commonly used as [Total Return](../t/total_return.md) Benchmarks. Some of the most notable include: - **S&P 500 [Total Return Index](../t/total_return_index.md) (SPTR)**: This includes 500 of the largest U.S. companies, factoring in [capital](../c/capital.md) gains as well as reinvested dividends. -- **MSCI All Country World [Index](../i/index.md) [Total Return](../t/total_return.md) (MSCI ACWI TR)**: This measures the performance of [stocks](../s/stock.md) across developed and emerging markets, inclusive of dividends. -- **Barclays [Capital](../c/capital.md) U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index.md) (AGG TR)**: A broad-based [index](../i/index.md) measuring the U.S. [bond market](../b/bond_market.md)’s performance, including [interest](../i/interest.md) payments. +- **MSCI All Country World [Index](../i/index_instrument.md) [Total Return](../t/total_return.md) (MSCI ACWI TR)**: This measures the performance of [stocks](../s/stock.md) across developed and emerging markets, inclusive of dividends. +- **Barclays [Capital](../c/capital.md) U.S. Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) (AGG TR)**: A broad-based [index](../i/index_instrument.md) measuring the U.S. [bond market](../b/bond_market.md)’s performance, including [interest](../i/interest.md) payments. ### Utilization in Algorithmic Trading diff --git a/en/pedia/t/total_return_calculation_methods.md b/en/pedia/t/total_return_calculation_methods.md index b30da1d1..68a35794 100644 --- a/en/pedia/t/total_return_calculation_methods.md +++ b/en/pedia/t/total_return_calculation_methods.md @@ -153,7 +153,7 @@ A [Total Return Index](../t/total_return_index.md) (TRI) calculates the [total r - \(\text{[Dividend Yield](../d/dividend_yield.md)}\): [Dividend yield](../d/dividend_yield.md) of [asset](../a/asset.md). **Example:** -If an [index](../i/index.md) starts at 1000, with a price [return](../r/return.md) of 2% and a [dividend yield](../d/dividend_yield.md) of 1%, the TRI at the next period is: +If an [index](../i/index_instrument.md) starts at 1000, with a price [return](../r/return.md) of 2% and a [dividend yield](../d/dividend_yield.md) of 1%, the TRI at the next period is: \[ 1000 \times \left( 1 + \frac{2}{100} + \frac{1}{100} \right) = 1030 \] **Pros:** diff --git a/en/pedia/t/total_return_index.md b/en/pedia/t/total_return_index.md index 2ef9f601..50cc74a8 100644 --- a/en/pedia/t/total_return_index.md +++ b/en/pedia/t/total_return_index.md @@ -1,30 +1,30 @@ # Total Return Index -The [Total Return](../t/total_return.md) [Index](../i/index.md) (TRI) is a financial [index](../i/index.md) that measures the performance of a group of assets, such as [stocks](../s/stock.md), assuming that all dividends and other cash distributions are reinvested. Unlike the more traditional price [index](../i/index.md), which only accounts for [capital](../c/capital.md) gains, the [total return](../t/total_return.md) [index](../i/index.md) provides a more comprehensive view of an investment's performance by incorporating [income](../i/income.md) generated from dividends. This makes the TRI a crucial tool for investors who are looking to gauge the full performance of their portfolio over time. +The [Total Return](../t/total_return.md) [Index](../i/index_instrument.md) (TRI) is a financial [index](../i/index_instrument.md) that measures the performance of a group of assets, such as [stocks](../s/stock.md), assuming that all dividends and other cash distributions are reinvested. Unlike the more traditional price [index](../i/index_instrument.md), which only accounts for [capital](../c/capital.md) gains, the [total return](../t/total_return.md) [index](../i/index_instrument.md) provides a more comprehensive view of an investment's performance by incorporating [income](../i/income.md) generated from dividends. This makes the TRI a crucial tool for investors who are looking to gauge the full performance of their portfolio over time. ## Components of Total Return Index ### 1. **Price Appreciation** - The primary component of any stock [index](../i/index.md) is the change in the price of the constituent assets. Price appreciation is the increase in the price of the assets included in the [index](../i/index.md) over time. + The primary component of any stock [index](../i/index_instrument.md) is the change in the price of the constituent assets. Price appreciation is the increase in the price of the assets included in the [index](../i/index_instrument.md) over time. ### 2. **Dividends and Cash Distributions** [Total Return](../t/total_return.md) Indexes also account for cash distributions such as dividends. When a company pays a [dividend](../d/dividend.md), the [investor](../i/investor.md) has the option to either take the [dividend](../d/dividend.md) as cash or reinvest it in the same [security](../s/security.md). For the purposes of TRI, it is assumed these dividends are always reinvested. ### 3. **Adjustments for Corporate Actions** - Various corporate actions such as stock splits, bonus issuance, and rights offerings can affect the [value](../v/value.md) of the [index](../i/index.md). The TRI takes these into account to give an adjusted, accurate reflection of [asset](../a/asset.md) performance. + Various corporate actions such as stock splits, bonus issuance, and rights offerings can affect the [value](../v/value.md) of the [index](../i/index_instrument.md). The TRI takes these into account to give an adjusted, accurate reflection of [asset](../a/asset.md) performance. ### 4. **Currency Adjustments** For indexes that include assets priced in different currencies, changes in [exchange](../e/exchange.md) rates may also be considered. The TRI would account for the [currency](../c/currency.md) fluctuations to provide a more accurate measure. ## Calculation Methodology -To calculate the [Total Return](../t/total_return.md) [Index](../i/index.md), the following formula is generally used: +To calculate the [Total Return](../t/total_return.md) [Index](../i/index_instrument.md), the following formula is generally used: -\[ \text{TRI} = \text{Price [Index](../i/index.md)} + \frac{\text{Dividends}}{ \text{[Index](../i/index.md) Divisor}} \] +\[ \text{TRI} = \text{Price [Index](../i/index_instrument.md)} + \frac{\text{Dividends}}{ \text{[Index](../i/index_instrument.md) Divisor}} \] -- **Price [Index](../i/index.md)**: The standard price [index](../i/index.md) [value](../v/value.md) for the group of assets. +- **Price [Index](../i/index_instrument.md)**: The standard price [index](../i/index_instrument.md) [value](../v/value.md) for the group of assets. - **Dividends**: The sum of dividends paid by the constituents. -- **[Index](../i/index.md) Divisor**: A scaling [factor](../f/factor.md) used to adjust the [index](../i/index.md) for changes in the constituents or the structure of the [index](../i/index.md). +- **[Index](../i/index_instrument.md) Divisor**: A scaling [factor](../f/factor.md) used to adjust the [index](../i/index_instrument.md) for changes in the constituents or the structure of the [index](../i/index_instrument.md). ## Importance in Investment Strategies @@ -38,21 +38,21 @@ To calculate the [Total Return](../t/total_return.md) [Index](../i/index.md), th Understanding the total returns of an [asset](../a/asset.md) can significantly affect [risk](../r/risk.md) assessment. If two assets have the same price appreciation but different [dividend](../d/dividend.md) yields, their total returns would be different. This difference can be crucial in evaluating the [risk](../r/risk.md) and [return](../r/return.md) characteristics of an investment. ### 4. **Passive vs. Active Management** - [Passive investment strategies](../p/passive_investment_strategies.md) often aim to replicate the performance of a [total return](../t/total_return.md) [index](../i/index.md), thereby minimizing costs and effort. Active managers, on the other hand, try to [outperform](../o/outperform.md) the TRI through various strategies. + [Passive investment strategies](../p/passive_investment_strategies.md) often aim to replicate the performance of a [total return](../t/total_return.md) [index](../i/index_instrument.md), thereby minimizing costs and effort. Active managers, on the other hand, try to [outperform](../o/outperform.md) the TRI through various strategies. ## Types of Total Return Indexes ### 1. **Equity TRI** - These indexes track the total returns of a basket of [stocks](../s/stock.md). Examples include the S&P 500 [Total Return](../t/total_return.md) [Index](../i/index.md) and the MSCI World [Total Return](../t/total_return.md) [Index](../i/index.md). + These indexes track the total returns of a basket of [stocks](../s/stock.md). Examples include the S&P 500 [Total Return](../t/total_return.md) [Index](../i/index_instrument.md) and the MSCI World [Total Return](../t/total_return.md) [Index](../i/index_instrument.md). ### 2. **Bond TRI** - These track the performance of [fixed income](../f/fixed_income.md) instruments. For example, the Barclays Global Aggregate [Bond](../b/bond.md) [Index](../i/index.md) ([Total Return](../t/total_return.md)) is a popular choice among investors. + These track the performance of [fixed income](../f/fixed_income.md) instruments. For example, the Barclays Global Aggregate [Bond](../b/bond.md) [Index](../i/index_instrument.md) ([Total Return](../t/total_return.md)) is a popular choice among investors. ### 3. **Commodity TRI** - Though less common, [commodity](../c/commodity.md) TRI track the performance of [commodity](../c/commodity.md) investments, including the [reinvestment](../r/reinvestment.md) of dividends from [commodity](../c/commodity.md) producers. An example would be the S&P GSCI [Total Return](../t/total_return.md) [Index](../i/index.md). + Though less common, [commodity](../c/commodity.md) TRI track the performance of [commodity](../c/commodity.md) investments, including the [reinvestment](../r/reinvestment.md) of dividends from [commodity](../c/commodity.md) producers. An example would be the S&P GSCI [Total Return](../t/total_return.md) [Index](../i/index_instrument.md). ### 4. **Real Estate TRI** - These indexes track the total returns of [real estate](../r/real_estate.md) assets. Examples include the FTSE NAREIT All [Equity](../e/equity.md) REITs [Total Return](../t/total_return.md) [Index](../i/index.md). + These indexes track the total returns of [real estate](../r/real_estate.md) assets. Examples include the FTSE NAREIT All [Equity](../e/equity.md) REITs [Total Return](../t/total_return.md) [Index](../i/index_instrument.md). ## Factors that Affect the Total Return Index @@ -60,10 +60,10 @@ To calculate the [Total Return](../t/total_return.md) [Index](../i/index.md), th Changes in macroeconomic factors such as [interest](../i/interest.md) rates, GDP growth, and [inflation](../i/inflation.md) can affect the performance of the [underlying](../u/underlying.md) assets, thereby impacting the TRI. ### 2. **Market Sentiment** - [Investor](../i/investor.md) sentiment, often driven by news, geopolitical events, and trends, can drive the prices of [index](../i/index.md) constituents and therefore affect the [total return](../t/total_return.md). + [Investor](../i/investor.md) sentiment, often driven by news, geopolitical events, and trends, can drive the prices of [index](../i/index_instrument.md) constituents and therefore affect the [total return](../t/total_return.md). ### 3. **Company Performance** - The [financial health](../f/financial_health.md) and performance of the companies included in the [index](../i/index.md) play a significant role in determining the [total return](../t/total_return.md). [Earnings](../e/earnings.md), growth prospects, and dividends are critical factors. + The [financial health](../f/financial_health.md) and performance of the companies included in the [index](../i/index_instrument.md) play a significant role in determining the [total return](../t/total_return.md). [Earnings](../e/earnings.md), growth prospects, and dividends are critical factors. ## Real-world Applications @@ -82,23 +82,23 @@ To calculate the [Total Return](../t/total_return.md) [Index](../i/index.md), th ## Examples of Leading Total Return Indexes ### S&P 500 Total Return Index -The S&P 500 [Total Return](../t/total_return.md) [Index](../i/index.md) is one of the most referenced TRIs globally. It reflects the [total return](../t/total_return.md) of the S&P 500 [index](../i/index.md) by factoring in the [reinvestment](../r/reinvestment.md) of dividends. +The S&P 500 [Total Return](../t/total_return.md) [Index](../i/index_instrument.md) is one of the most referenced TRIs globally. It reflects the [total return](../t/total_return.md) of the S&P 500 [index](../i/index_instrument.md) by factoring in the [reinvestment](../r/reinvestment.md) of dividends. For more information, you can visit their official page: [https://us.spindices.com/indices/equity/sp-500](https://us.spindices.com/indices/equity/sp-500) ### MSCI Total Return Indexes -MSCI provides several TRI, including the MSCI World [Total Return](../t/total_return.md) [Index](../i/index.md), which tracks the [total return](../t/total_return.md) of equities across developed markets. +MSCI provides several TRI, including the MSCI World [Total Return](../t/total_return.md) [Index](../i/index_instrument.md), which tracks the [total return](../t/total_return.md) of equities across developed markets. For more information, you can visit their official page: [https://www.msci.com/end-of-day-data-search](https://www.msci.com/end-of-day-data-search) ### FTSE NAREIT All Equity REITs Total Return Index -This [index](../i/index.md) measures the [total return](../t/total_return.md) of all [equity](../e/equity.md) [Real Estate](../r/real_estate.md) Investment Trusts (REITs) [listed](../l/listed.md) on stock exchanges. +This [index](../i/index_instrument.md) measures the [total return](../t/total_return.md) of all [equity](../e/equity.md) [Real Estate](../r/real_estate.md) Investment Trusts (REITs) [listed](../l/listed.md) on stock exchanges. For more information, you can visit their official page: [https://www.reit.com/data-research/reit-indexes](https://www.reit.com/data-research/reit-indexes) ## Conclusion -The [Total Return](../t/total_return.md) [Index](../i/index.md) (TRI) is an invaluable tool for investors seeking to gauge comprehensive [performance metrics](../p/performance_metrics.md). By [accounting](../a/accounting.md) for both price appreciation and the [reinvestment](../r/reinvestment.md) of dividends, the TRI provides a fuller, more accurate picture of an [asset](../a/asset.md)'s [return](../r/return.md). Whether used for benchmarking, performance analysis, or [retirement planning](../r/retirement_planning.md), understanding and utilizing [Total Return](../t/total_return.md) Indexes can significantly impact [investment strategy](../i/investment_strategy.md) and outcomes. \ No newline at end of file +The [Total Return](../t/total_return.md) [Index](../i/index_instrument.md) (TRI) is an invaluable tool for investors seeking to gauge comprehensive [performance metrics](../p/performance_metrics.md). By [accounting](../a/accounting.md) for both price appreciation and the [reinvestment](../r/reinvestment.md) of dividends, the TRI provides a fuller, more accurate picture of an [asset](../a/asset.md)'s [return](../r/return.md). Whether used for benchmarking, performance analysis, or [retirement planning](../r/retirement_planning.md), understanding and utilizing [Total Return](../t/total_return.md) Indexes can significantly impact [investment strategy](../i/investment_strategy.md) and outcomes. \ No newline at end of file diff --git a/en/pedia/t/total_return_indices.md b/en/pedia/t/total_return_indices.md index 9bdaa996..3a375868 100644 --- a/en/pedia/t/total_return_indices.md +++ b/en/pedia/t/total_return_indices.md @@ -5,7 +5,7 @@ ## Components and Calculation ### Price Change -At the core of any financial [index](../i/index.md) is the measurement of price movements of the included assets. This component reflects the appreciation or [depreciation](../d/depreciation.md) in the [value](../v/value.md) of each [asset](../a/asset.md) over time. +At the core of any financial [index](../i/index_instrument.md) is the measurement of price movements of the included assets. This component reflects the appreciation or [depreciation](../d/depreciation.md) in the [value](../v/value.md) of each [asset](../a/asset.md) over time. #### Calculation Formula For an individual [asset](../a/asset.md): @@ -13,9 +13,9 @@ For an individual [asset](../a/asset.md): Price Change = (Price at End of Period - Price at Start of Period) / Price at Start of Period ``` -For an [index](../i/index.md) with [multiple](../m/multiple.md) assets: +For an [index](../i/index_instrument.md) with [multiple](../m/multiple.md) assets: ```math -[Index](../i/index.md) Price Change = Σ (Weight of [Asset](../a/asset.md) * Price Change of [Asset](../a/asset.md)) +[Index](../i/index_instrument.md) Price Change = Σ (Weight of [Asset](../a/asset.md) * Price Change of [Asset](../a/asset.md)) ``` ### Income (Dividends/Interest) @@ -27,7 +27,7 @@ For [bond](../b/bond.md) indices, it is often calculated as: ```math [Income](../i/income.md) = Σ ([Interest](../i/interest.md) Payments or Coupon Payments received) ``` -This [income](../i/income.md) in TRI is assumed to be reinvested into the [index](../i/index.md). +This [income](../i/income.md) in TRI is assumed to be reinvested into the [index](../i/index_instrument.md). ### Total Return Calculation The combination of price changes and [income](../i/income.md) yields the [total return](../t/total_return.md). @@ -38,7 +38,7 @@ The combination of price changes and [income](../i/income.md) yields the [total To track the performance continuously, daily [total return](../t/total_return.md) values can be used. ### Example: S&P 500 Total Return Index (SPXTR) -One of the most cited TRIs is the S&P 500 [Total Return Index](../t/total_return_index.md). It incorporates dividends paid by the constituents of the S&P 500, assuming they are reinvested into the [index](../i/index.md). +One of the most cited TRIs is the S&P 500 [Total Return Index](../t/total_return_index.md). It incorporates dividends paid by the constituents of the S&P 500, assuming they are reinvested into the [index](../i/index_instrument.md). More information: [S&P Dow Jones Indices](https://www.spglobal.com/spdji/en/indices/equity/sp-500/) diff --git a/en/pedia/t/total_return_swap.md b/en/pedia/t/total_return_swap.md index cc646711..34dc1183 100644 --- a/en/pedia/t/total_return_swap.md +++ b/en/pedia/t/total_return_swap.md @@ -22,12 +22,12 @@ In a [Total Return](../t/total_return.md) [Swap](../s/swap.md), one party (the ' ## Example of a Total Return Swap -Imagine a [hedge fund](../h/hedge_fund.md) wants to [gain](../g/gain.md) exposure to the returns of a certain stock [index](../i/index.md) but does not want to actually purchase the [stocks](../s/stock.md) due to regulatory restrictions or other reasons. Instead, they enter into a TRS with an investment [bank](../b/bank.md). +Imagine a [hedge fund](../h/hedge_fund.md) wants to [gain](../g/gain.md) exposure to the returns of a certain stock [index](../i/index_instrument.md) but does not want to actually purchase the [stocks](../s/stock.md) due to regulatory restrictions or other reasons. Instead, they enter into a TRS with an investment [bank](../b/bank.md). -- The [hedge fund](../h/hedge_fund.md) ([total return](../t/total_return.md) receiver) [will](../w/will.md) receive returns from the stock [index](../i/index.md), including both price appreciation and dividends. +- The [hedge fund](../h/hedge_fund.md) ([total return](../t/total_return.md) receiver) [will](../w/will.md) receive returns from the stock [index](../i/index_instrument.md), including both price appreciation and dividends. - The investment [bank](../b/bank.md) ([total return](../t/total_return.md) payer) [will](../w/will.md) receive periodic [interest](../i/interest.md) payments from the [hedge fund](../h/hedge_fund.md), often based on a [LIBOR rate](../l/libor_rate_analysis.md) plus a spread. -At the end of each period, if the [total return](../t/total_return.md) from the stock [index](../i/index.md) is higher than the [interest](../i/interest.md) payments, the investment [bank](../b/bank.md) [will](../w/will.md) pay the [hedge fund](../h/hedge_fund.md) the difference. If the [total return](../t/total_return.md) is lower, the [hedge fund](../h/hedge_fund.md) [will](../w/will.md) pay the investment [bank](../b/bank.md). +At the end of each period, if the [total return](../t/total_return.md) from the stock [index](../i/index_instrument.md) is higher than the [interest](../i/interest.md) payments, the investment [bank](../b/bank.md) [will](../w/will.md) pay the [hedge fund](../h/hedge_fund.md) the difference. If the [total return](../t/total_return.md) is lower, the [hedge fund](../h/hedge_fund.md) [will](../w/will.md) pay the investment [bank](../b/bank.md). ## Advantages and Disadvantages diff --git a/en/pedia/t/tracker_fund.md b/en/pedia/t/tracker_fund.md index 6fd41b3d..eefd2364 100644 --- a/en/pedia/t/tracker_fund.md +++ b/en/pedia/t/tracker_fund.md @@ -1,45 +1,45 @@ # Tracker Fund -A tracker [fund](../f/fund.md), also known as an [index fund](../i/index_fund.md), is a type of [mutual fund](../m/mutual_fund.md) or [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF) designed to replicate the performance of a specific [index](../i/index.md). These funds are constructed to track the components of a [market index](../m/market_index.md), such as the S&P 500, FTSE 100, or other recognized benchmarks, with the objective of matching their returns as closely as possible. +A tracker [fund](../f/fund.md), also known as an [index fund](../i/index_fund.md), is a type of [mutual fund](../m/mutual_fund.md) or [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF) designed to replicate the performance of a specific [index](../i/index_instrument.md). These funds are constructed to track the components of a [market index](../m/market_index.md), such as the S&P 500, FTSE 100, or other recognized benchmarks, with the objective of matching their returns as closely as possible. ## What is a Tracker Fund? -A tracker [fund](../f/fund.md) is a passive [investment vehicle](../i/investment_vehicle.md) that aims to mirror the performance of a particular [index](../i/index.md). This is in contrast to actively managed funds, where [fund](../f/fund.md) managers make decisions on which securities to buy and sell in an attempt to [outperform](../o/outperform.md) the [market](../m/market.md). In a tracker [fund](../f/fund.md), the [fund manager](../f/fund_manager.md)'s role is mostly limited to ensuring that the [fund](../f/fund.md)'s portfolio closely matches the composition of the chosen [index](../i/index.md). +A tracker [fund](../f/fund.md) is a passive [investment vehicle](../i/investment_vehicle.md) that aims to mirror the performance of a particular [index](../i/index_instrument.md). This is in contrast to actively managed funds, where [fund](../f/fund.md) managers make decisions on which securities to buy and sell in an attempt to [outperform](../o/outperform.md) the [market](../m/market.md). In a tracker [fund](../f/fund.md), the [fund manager](../f/fund_manager.md)'s role is mostly limited to ensuring that the [fund](../f/fund.md)'s portfolio closely matches the composition of the chosen [index](../i/index_instrument.md). ### Characteristics of Tracker Funds -- **Passivity**: The primary goal is to replicate the performance of an [index](../i/index.md) rather than [outperform](../o/outperform.md) it. -- **[Diversification](../d/diversification.md)**: By replicating an entire [index](../i/index.md), tracker funds [offer](../o/offer.md) broad [market exposure](../m/market_exposure.md) and diversify [risk](../r/risk.md) across various sectors and securities. +- **Passivity**: The primary goal is to replicate the performance of an [index](../i/index_instrument.md) rather than [outperform](../o/outperform.md) it. +- **[Diversification](../d/diversification.md)**: By replicating an entire [index](../i/index_instrument.md), tracker funds [offer](../o/offer.md) broad [market exposure](../m/market_exposure.md) and diversify [risk](../r/risk.md) across various sectors and securities. - **Lower Costs**: Because they are passively managed, tracker funds generally have lower management fees compared to actively managed funds. -- **[Transparency](../t/transparency.md)**: Since the [holdings](../h/holdings.md) of the [fund](../f/fund.md) reflect the [index](../i/index.md), investors have a clear understanding of what securities are included in the portfolio. +- **[Transparency](../t/transparency.md)**: Since the [holdings](../h/holdings.md) of the [fund](../f/fund.md) reflect the [index](../i/index_instrument.md), investors have a clear understanding of what securities are included in the portfolio. ## How Tracker Funds Work -Tracker funds follow the construction of their target [index](../i/index.md) as closely as possible. Here's how they generally operate: +Tracker funds follow the construction of their target [index](../i/index_instrument.md) as closely as possible. Here's how they generally operate: ### Fund Creation and Management -1. **[Index](../i/index.md) Selection**: The first step is selecting an [index](../i/index.md) that the [fund](../f/fund.md) [will](../w/will.md) track. This could be a broad [market index](../m/market_index.md) like the S&P 500 or a sector-specific [index](../i/index.md). +1. **[Index](../i/index_instrument.md) Selection**: The first step is selecting an [index](../i/index_instrument.md) that the [fund](../f/fund.md) [will](../w/will.md) track. This could be a broad [market index](../m/market_index.md) like the S&P 500 or a sector-specific [index](../i/index_instrument.md). -2. **Duplication of [Holdings](../h/holdings.md)**: The [fund manager](../f/fund_manager.md) purchases the securities that make up the [index](../i/index.md) in the same proportions. If the [index](../i/index.md) undergoes changes, the [fund manager](../f/fund_manager.md) adjusts the [holdings](../h/holdings.md) accordingly. +2. **Duplication of [Holdings](../h/holdings.md)**: The [fund manager](../f/fund_manager.md) purchases the securities that make up the [index](../i/index_instrument.md) in the same proportions. If the [index](../i/index_instrument.md) undergoes changes, the [fund manager](../f/fund_manager.md) adjusts the [holdings](../h/holdings.md) accordingly. 3. **[Rebalancing](../r/rebalancing.md)**: Indices periodically rebalance, meaning they add or remove certain securities or adjust the weightings of existing securities. Tracker funds adjust their portfolios to mirror these changes. ### Trade Execution -1. **[Market](../m/market.md) Orders**: When an [investor](../i/investor.md) buys [shares](../s/shares.md) in a tracker [fund](../f/fund.md), the [fund](../f/fund.md) itself typically buys [shares](../s/shares.md) of the [underlying](../u/underlying.md) [index](../i/index.md) securities to reflect this investment. +1. **[Market](../m/market.md) Orders**: When an [investor](../i/investor.md) buys [shares](../s/shares.md) in a tracker [fund](../f/fund.md), the [fund](../f/fund.md) itself typically buys [shares](../s/shares.md) of the [underlying](../u/underlying.md) [index](../i/index_instrument.md) securities to reflect this investment. 2. **Dividends and [Income](../i/income.md)**: If the [underlying](../u/underlying.md) securities pay dividends, these are usually passed on to the tracker [fund](../f/fund.md)'s investors, either as additional [shares](../s/shares.md) or cash. 3. **[Expense Ratio](../e/expense_ratio.md)**: While tracker funds have lower costs, they still incur some expenses, such as management fees, administrative costs, and trading commissions. These are represented by the [fund](../f/fund.md)'s [expense ratio](../e/expense_ratio.md), which is a percentage of the [fund](../f/fund.md)'s average assets. -4. **[Tracking Error](../t/tracking_error.md)**: This is the difference between the performance of the tracker [fund](../f/fund.md) and the performance of the [index](../i/index.md) it aims to replicate. A lower [tracking error](../t/tracking_error.md) indicates a better-performing tracker [fund](../f/fund.md). +4. **[Tracking Error](../t/tracking_error.md)**: This is the difference between the performance of the tracker [fund](../f/fund.md) and the performance of the [index](../i/index_instrument.md) it aims to replicate. A lower [tracking error](../t/tracking_error.md) indicates a better-performing tracker [fund](../f/fund.md). ## Examples of Tracker Funds ### Vanguard 500 Index Fund (VFINX) -One of the earliest and most well-known tracker funds is the Vanguard 500 [Index Fund](../i/index_fund.md), which aims to replicate the performance of the S&P 500 [index](../i/index.md). Vanguard is renowned for its low-cost [index](../i/index.md) funds and this particular [fund](../f/fund.md) is popular among investors because of its [diversification](../d/diversification.md) and low fees. +One of the earliest and most well-known tracker funds is the Vanguard 500 [Index Fund](../i/index_fund.md), which aims to replicate the performance of the S&P 500 [index](../i/index_instrument.md). Vanguard is renowned for its low-cost [index](../i/index_instrument.md) funds and this particular [fund](../f/fund.md) is popular among investors because of its [diversification](../d/diversification.md) and low fees. ### SPDR S&P 500 ETF Trust (SPY) @@ -49,13 +49,13 @@ Website: [SPDR ETF](https://www.ssga.com/us/en/intermediary/etfs/funds/spdr-sp-5 ### iShares MSCI Emerging Markets ETF (EEM) -This ETF is designed to track the performance of the MSCI Emerging Markets [Index](../i/index.md), which includes companies from emerging economies across the globe. It provides investors with exposure to growth markets that have higher risks but also potentially higher rewards. +This ETF is designed to track the performance of the MSCI Emerging Markets [Index](../i/index_instrument.md), which includes companies from emerging economies across the globe. It provides investors with exposure to growth markets that have higher risks but also potentially higher rewards. Website: [iShares MSCI Emerging Markets ETF](https://www.ishares.com/us/products/239637/ishares-msci-emerging-markets-etf) ### Fidelity ZERO Large Cap Index Fund (FNILX) -A unique [offering](../o/offering.md) from Fidelity, this tracker [fund](../f/fund.md) aims to replicate the Fidelity U.S. Large Cap [Index](../i/index.md). It is noted for having zero management fees, making it an attractive option for cost-conscious investors. +A unique [offering](../o/offering.md) from Fidelity, this tracker [fund](../f/fund.md) aims to replicate the Fidelity U.S. Large Cap [Index](../i/index_instrument.md). It is noted for having zero management fees, making it an attractive option for cost-conscious investors. Website: [Fidelity ZERO Large Cap Index Fund](https://www.fidelity.com/mutual-funds/fidelity-funds/overview) @@ -75,21 +75,21 @@ By holding a diversified set of securities, tracker funds spread [risk](../r/ris ### Consistent Performance -Given that tracker funds aim to replicate an [index](../i/index.md) rather than [outperform](../o/outperform.md) it, investors often find them to have more predictable and consistent performance over time. This can provide a level of stability in an otherwise volatile [market](../m/market.md). +Given that tracker funds aim to replicate an [index](../i/index_instrument.md) rather than [outperform](../o/outperform.md) it, investors often find them to have more predictable and consistent performance over time. This can provide a level of stability in an otherwise volatile [market](../m/market.md). ## Potential Drawbacks ### Lack of Flexibility -Since tracker funds are designed to follow an [index](../i/index.md), there is no flexibility for the [fund manager](../f/fund_manager.md) to make adjustments based on [market](../m/market.md) conditions or insights, which might be seen as a limitation for some investors. +Since tracker funds are designed to follow an [index](../i/index_instrument.md), there is no flexibility for the [fund manager](../f/fund_manager.md) to make adjustments based on [market](../m/market.md) conditions or insights, which might be seen as a limitation for some investors. ### Exposure to Market Downturns -While [diversification](../d/diversification.md) helps mitigate [risk](../r/risk.md), tracker funds are still exposed to overall [market](../m/market.md) downturns. If the [index](../i/index.md) they follow declines, the [fund](../f/fund.md)'s [value](../v/value.md) [will](../w/will.md) also drop. +While [diversification](../d/diversification.md) helps mitigate [risk](../r/risk.md), tracker funds are still exposed to overall [market](../m/market.md) downturns. If the [index](../i/index_instrument.md) they follow declines, the [fund](../f/fund.md)'s [value](../v/value.md) [will](../w/will.md) also drop. ### Tracking Error -Although often minor, [tracking error](../t/tracking_error.md) can occur and may result in performance slightly different from the target [index](../i/index.md). +Although often minor, [tracking error](../t/tracking_error.md) can occur and may result in performance slightly different from the target [index](../i/index_instrument.md). ## Conclusion diff --git a/en/pedia/t/tracking_error.md b/en/pedia/t/tracking_error.md index 2b2917d8..f207e0a5 100644 --- a/en/pedia/t/tracking_error.md +++ b/en/pedia/t/tracking_error.md @@ -1,10 +1,10 @@ # Tracking Error -Tracking error is a key metric in the world of [investment management](../i/investment_management.md), particularly within the [scope](../s/scope.md) of passive and [active portfolio management](../a/active_portfolio_management.md). It measures the deviation of the returns of an investment portfolio from its [benchmark](../b/benchmark.md) [index](../i/index.md). This deviation is crucial for investors seeking to understand how closely a portfolio tracks an [index](../i/index.md), and it has significant implications for the evaluation of [fund](../f/fund.md) performance and [risk management](../r/risk_management.md). This article delves deep into the concept of tracking error, its calculation, its importance, and its applications in [financial markets](../f/financial_market.md), particularly in [exchange](../e/exchange.md)-traded funds (ETFs) and mutual funds. +Tracking error is a key metric in the world of [investment management](../i/investment_management.md), particularly within the [scope](../s/scope.md) of passive and [active portfolio management](../a/active_portfolio_management.md). It measures the deviation of the returns of an investment portfolio from its [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). This deviation is crucial for investors seeking to understand how closely a portfolio tracks an [index](../i/index_instrument.md), and it has significant implications for the evaluation of [fund](../f/fund.md) performance and [risk management](../r/risk_management.md). This article delves deep into the concept of tracking error, its calculation, its importance, and its applications in [financial markets](../f/financial_market.md), particularly in [exchange](../e/exchange.md)-traded funds (ETFs) and mutual funds. ## Definition and Concept -Tracking error, in its simplest form, represents the [standard deviation](../s/standard_deviation.md) of the difference in returns between a portfolio and its [benchmark](../b/benchmark.md). In other words, it quantifies the consistency of a portfolio's returns relative to an [index](../i/index.md). +Tracking error, in its simplest form, represents the [standard deviation](../s/standard_deviation.md) of the difference in returns between a portfolio and its [benchmark](../b/benchmark.md). In other words, it quantifies the consistency of a portfolio's returns relative to an [index](../i/index_instrument.md). Mathematically, tracking error can be defined as: @@ -12,7 +12,7 @@ Mathematically, tracking error can be defined as: Where: - \( R_{p,t} \) = [Return](../r/return.md) of the portfolio at time t -- \( R_{b,t} \) = [Return](../r/return.md) of the [benchmark](../b/benchmark.md) [index](../i/index.md) at time t +- \( R_{b,t} \) = [Return](../r/return.md) of the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) at time t - \( \overline{R_{p} - R_{b}} \) = Average difference between the portfolio [return](../r/return.md) and the [benchmark](../b/benchmark.md) [return](../r/return.md) over the measurement period - n = Number of periods @@ -34,7 +34,7 @@ Tracking error serves [multiple](../m/multiple.md) critical purposes in [portfol 2. **[Risk Management](../r/risk_management.md)**: Tracking error is pivotal in understanding the risks associated with deviation from the [benchmark](../b/benchmark.md). It assists in assessing the [risk](../r/risk.md)-adjusted performance of a portfolio. -3. **Portfolio Construction**: In constructing portfolios, especially [index](../i/index.md) funds, achieving a low tracking error is essential to ensure that the [fund](../f/fund.md) replicates the [benchmark](../b/benchmark.md)'s performance as closely as possible. +3. **Portfolio Construction**: In constructing portfolios, especially [index](../i/index_instrument.md) funds, achieving a low tracking error is essential to ensure that the [fund](../f/fund.md) replicates the [benchmark](../b/benchmark.md)'s performance as closely as possible. 4. **Regulatory Compliance**: In certain jurisdictions, regulatory bodies might stipulate acceptable levels of tracking error for specific types of funds to ensure [investor](../i/investor.md) protection and [transparency](../t/transparency.md). @@ -42,7 +42,7 @@ Tracking error serves [multiple](../m/multiple.md) critical purposes in [portfol ### Exchange-Traded Funds (ETFs) -ETFs are designed to replicate the performance of a specific [index](../i/index.md). The effectiveness of an ETF in achieving this goal is often measured by its tracking error. A higher tracking error in an ETF may indicate issues such as management inefficiencies, high [transaction costs](../t/transaction_costs.md), or [liquidity](../l/liquidity.md) constraints. +ETFs are designed to replicate the performance of a specific [index](../i/index_instrument.md). The effectiveness of an ETF in achieving this goal is often measured by its tracking error. A higher tracking error in an ETF may indicate issues such as management inefficiencies, high [transaction costs](../t/transaction_costs.md), or [liquidity](../l/liquidity.md) constraints. ### Mutual Funds @@ -127,7 +127,7 @@ In certain cases, customized benchmarks are created to better reflect the specif ### Algorithmic Trading and Tracking Error -In the realm of [algorithmic trading](../a/accountability.md), minimizing tracking error is critical for strategies aimed at [index](../i/index.md) replication. Sophisticated algorithms are developed to manage [order](../o/order.md) [execution](../e/execution.md), minimize [market](../m/market.md) impact, and reduce [transaction costs](../t/transaction_costs.md), all contributing to lower tracking error. +In the realm of [algorithmic trading](../a/accountability.md), minimizing tracking error is critical for strategies aimed at [index](../i/index_instrument.md) replication. Sophisticated algorithms are developed to manage [order](../o/order.md) [execution](../e/execution.md), minimize [market](../m/market.md) impact, and reduce [transaction costs](../t/transaction_costs.md), all contributing to lower tracking error. ## Conclusion diff --git a/en/pedia/t/trade_signal.md b/en/pedia/t/trade_signal.md index ad9c0586..98306f59 100644 --- a/en/pedia/t/trade_signal.md +++ b/en/pedia/t/trade_signal.md @@ -11,7 +11,7 @@ A [trade](../t/trade.md) signal is an indication or trigger that prompts traders - **Moving Averages**: Moving averages (MA) smooth out price data to identify the direction of the [trend](../t/trend.md). A common signal occurs when a short-term moving average crosses above a long-term moving average ([Golden Cross](../g/golden_cross.md)) as a buy signal or below it ([Death Cross](../d/death_cross.md)) as a sell signal. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. Values above 70 indicate [overbought](../o/overbought.md) conditions (potential sell signal), while values below 30 signify [oversold](../o/oversold.md) conditions (potential buy signal). +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. Values above 70 indicate [overbought](../o/overbought.md) conditions (potential sell signal), while values below 30 signify [oversold](../o/oversold.md) conditions (potential buy signal). - **MACD (Moving Average Convergence [Divergence](../d/divergence.md))**: The MACD [indicator](../i/indicator.md) consists of the MACD line, signal line, and [histogram](../h/histogram.md). A common signal is when the MACD line crosses the signal line from below (bullish crossover) or above (bearish crossover). diff --git a/en/pedia/t/trading_algorithms.md b/en/pedia/t/trading_algorithms.md index 9d42375a..456bc6e0 100644 --- a/en/pedia/t/trading_algorithms.md +++ b/en/pedia/t/trading_algorithms.md @@ -40,7 +40,7 @@ These algorithms are predicated on the statistical concept of [mean reversion](. ### **3. Arbitrage Strategies** [Arbitrage](../a/arbitrage.md) algorithms exploit price inefficiencies between different markets or [asset](../a/asset.md) classes. Common types include - **Statistical [Arbitrage](../a/arbitrage.md):** Involves simultaneous buying and selling of correlated assets when their price differential departs from statistical norms. -- **[Index](../i/index.md) [Arbitrage](../a/arbitrage.md):** Profiting from discrepancies between the price of an [index](../i/index.md) and its constituent assets. +- **[Index](../i/index_instrument.md) [Arbitrage](../a/arbitrage.md):** Profiting from discrepancies between the price of an [index](../i/index_instrument.md) and its constituent assets. ### **4. Market Making** [Market](../m/market.md)-making algorithms provide [liquidity](../l/liquidity.md) to [financial markets](../f/financial_market.md). They place both buy and sell limit orders for a given [security](../s/security.md), profiting from the [bid-ask spread](../b/bid-ask_spread.md). These algorithms aim to be [market](../m/market.md)-[neutral](../n/neutral.md) by quickly offsetting [inventory](../i/inventory.md) positions. diff --git a/en/pedia/t/trading_halt.md b/en/pedia/t/trading_halt.md index f6109a05..1fb3e1ac 100644 --- a/en/pedia/t/trading_halt.md +++ b/en/pedia/t/trading_halt.md @@ -10,7 +10,7 @@ One of the most common reasons for a trading halt is a significant news announce Regulatory bodies like the Securities and [Exchange](../e/exchange.md) [Commission](../c/commission.md) (SEC) might mandate a trading halt if they detect irregular activity or suspect fraudulent practices. For example, if a company is under investigation for [insider trading](../i/insider.md), the SEC might impose a halt until the investigation is complete. ### Market-Wide Circuit Breakers -[Market](../m/market.md)-wide circuit breakers are mechanisms built into the [trading systems](../t/trading_systems.md) that automatically halt trading if there is a significant drop in the [market](../m/market.md). These are typically triggered by a predefined percentage decline in a major stock [index](../i/index.md). For instance, the NYSE has three levels of circuit breakers, set to halt trading at declines of 7%, 13%, and 20% from the previous day's closing price. +[Market](../m/market.md)-wide circuit breakers are mechanisms built into the [trading systems](../t/trading_systems.md) that automatically halt trading if there is a significant drop in the [market](../m/market.md). These are typically triggered by a predefined percentage decline in a major stock [index](../i/index_instrument.md). For instance, the NYSE has three levels of circuit breakers, set to halt trading at declines of 7%, 13%, and 20% from the previous day's closing price. ### Technical Issues Occasionally, trading can be halted due to technical problems within the [exchange](../e/exchange.md)'s [trading platform](../t/trading_platform.md). These issues can [range](../r/range.md) from software bugs to hardware failures, and the halt remains in place until the problems are resolved. diff --git a/en/pedia/t/trading_models.md b/en/pedia/t/trading_models.md index 3933017a..1839810e 100644 --- a/en/pedia/t/trading_models.md +++ b/en/pedia/t/trading_models.md @@ -15,7 +15,7 @@ Trading models play a crucial role in [algorithmic trading](../a/algorithmic_tra ## 2. Momentum Models **[Momentum trading](../m/momentum_trading.md)** leverages the tendency of prices to continue in the direction of a significant price move. -- **Key Components**: Indicators like [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and rate-of-change (ROC). +- **Key Components**: Indicators like [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and rate-of-change (ROC). - **Mechanics**: Buys securities that are rising and sells securities that are falling. - **Benefits**: Effective during strong trending periods. - **Limitations**: May incur significant losses during [market](../m/market.md) reversals. diff --git a/en/pedia/t/trading_platform.md b/en/pedia/t/trading_platform.md index 9ed98b48..75ba348d 100644 --- a/en/pedia/t/trading_platform.md +++ b/en/pedia/t/trading_platform.md @@ -43,7 +43,7 @@ Most trading platforms [offer](../o/offer.md) a [range](../r/range.md) of charti - [Candlestick](../c/candlestick.md) Charts - Moving Averages (SMA, EMA) -- [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) +- [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) - MACD (Moving Average Convergence [Divergence](../d/divergence.md)) - [Fibonacci Retracement](../f/fibonacci_retracement.md) diff --git a/en/pedia/t/trading_signal_generation.md b/en/pedia/t/trading_signal_generation.md index ef45f08d..ca0f167d 100644 --- a/en/pedia/t/trading_signal_generation.md +++ b/en/pedia/t/trading_signal_generation.md @@ -40,9 +40,9 @@ Trading signal generation is a crucial component of [algorithmic trading](../a/a - **[Bollinger Bands](../b/bollinger_bands.md)**: Consist of a middle band (SMA) and an upper and lower band at a specified number of standard deviations away. 2. **[Momentum Indicators](../m/momentum_indicators.md)**: - - **RSI**: [Relative Strength](../r/relative_strength.md) [Index](../i/index.md). + - **RSI**: [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md). - **[Stochastic Oscillator](../s/stochastic_oscillator.md)**: Compares a particular closing price to a [range](../r/range.md) of prices over a certain period. - - **CCI**: [Commodity](../c/commodity.md) Channel [Index](../i/index.md). + - **CCI**: [Commodity](../c/commodity.md) Channel [Index](../i/index_instrument.md). 3. **[Volatility](../v/volatility.md) Indicators**: - **ATR**: [Average True Range](../a/average_true_range_(atr).md). diff --git a/en/pedia/t/trading_signals.md b/en/pedia/t/trading_signals.md index af36f33b..136abde9 100644 --- a/en/pedia/t/trading_signals.md +++ b/en/pedia/t/trading_signals.md @@ -10,7 +10,7 @@ Trading signals are indicators that suggest a good time to buy or sell a [securi ### Technical Analysis -[Technical analysis](../t/technical_analysis.md) focuses on the historic price and [volume](../v/volume.md) data of a [security](../s/security.md). Various tools and indicators, such as moving averages, [Bollinger Bands](../b/bollinger_bands.md), and [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), are employed to generate trading signals. For instance, a moving average crossover strategy generates buy or sell signals when a shorter-term moving average crosses above or below a longer-term moving average. +[Technical analysis](../t/technical_analysis.md) focuses on the historic price and [volume](../v/volume.md) data of a [security](../s/security.md). Various tools and indicators, such as moving averages, [Bollinger Bands](../b/bollinger_bands.md), and [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), are employed to generate trading signals. For instance, a moving average crossover strategy generates buy or sell signals when a shorter-term moving average crosses above or below a longer-term moving average. ### Fundamental Analysis @@ -28,7 +28,7 @@ Trading signals are indicators that suggest a good time to buy or sell a [securi ### Momentum Signals -[Momentum](../m/momentum.md) signals are based on the tendency of securities to exhibit persistence in their price trends. These signals are often generated using indicators like the Moving Average Convergence [Divergence](../d/divergence.md) (MACD) or [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI). +[Momentum](../m/momentum.md) signals are based on the tendency of securities to exhibit persistence in their price trends. These signals are often generated using indicators like the Moving Average Convergence [Divergence](../d/divergence.md) (MACD) or [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI). ### Reversal Signals diff --git a/en/pedia/t/trading_signals_analysis.md b/en/pedia/t/trading_signals_analysis.md index 00fcdbb2..bf1a78b9 100644 --- a/en/pedia/t/trading_signals_analysis.md +++ b/en/pedia/t/trading_signals_analysis.md @@ -8,7 +8,7 @@ Technical signals are derived from historical price and [volume](../v/volume.md) data. Common methods for generating technical signals include: -1. **Indicators**: These are mathematical computations based on price, [volume](../v/volume.md), or [open interest](../o/open_interest.md) data. Common indicators include Moving Averages (MA), [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_bands.md). +1. **Indicators**: These are mathematical computations based on price, [volume](../v/volume.md), or [open interest](../o/open_interest.md) data. Common indicators include Moving Averages (MA), [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_bands.md). 2. **[Chart Patterns](../c/chart_patterns.md)**: These involve the identification of patterns such as head and shoulders, triangles, and flags within the price charts. 3. **[Candlestick Patterns](../c/candlestick_patterns.md)**: Specific formations like [Doji](../d/doji.md), Hammer, and Engulfing patterns that suggest potential price movements. diff --git a/en/pedia/t/trading_strategies.md b/en/pedia/t/trading_strategies.md index d006581f..a8af5a58 100644 --- a/en/pedia/t/trading_strategies.md +++ b/en/pedia/t/trading_strategies.md @@ -10,7 +10,7 @@ Trading strategies are systematic methodologies or plans designed to achieve pro - **Moving Averages**: Simple (SMA) and Exponential Moving Averages (EMA) are widely used to identify the direction of the [trend](../t/trend.md). - **Trendlines**: Drawing lines that connect significant price points helps to visualize the [trend](../t/trend.md). -- **Indicators**: ADX, Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) are commonly used indicators. +- **Indicators**: ADX, Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) are commonly used indicators. ### 2. Mean Reversion diff --git a/en/pedia/t/trading_system_design.md b/en/pedia/t/trading_system_design.md index 3f632a00..7da72ee1 100644 --- a/en/pedia/t/trading_system_design.md +++ b/en/pedia/t/trading_system_design.md @@ -9,7 +9,7 @@ The first step in trading system design is conceptualization. Here, the [trader] To develop a trading system, one must identify inefficiencies or patterns in the [market](../m/market.md). These opportunities can stem from: - **Price Anomalies:** Discrepancies between the current price and its [expected value](../e/expected_value.md). - **Statistical Patterns:** Recurring patterns that statistically suggest profitable trades. -- **[Market Sentiment](../m/market_sentiment.md):** Using metrics such as the [volatility](../v/volatility.md) [index](../i/index.md) (VIX) to gauge [market sentiment](../m/market_sentiment.md). +- **[Market Sentiment](../m/market_sentiment.md):** Using metrics such as the [volatility](../v/volatility.md) [index](../i/index_instrument.md) (VIX) to gauge [market sentiment](../m/market_sentiment.md). ### 1.2 Hypothesis Formulation Once opportunities are identified, the next step is to form a hypothesis. This involves defining: diff --git a/en/pedia/t/trading_volume_analysis_techniques.md b/en/pedia/t/trading_volume_analysis_techniques.md index 5c00e43d..30b01c95 100644 --- a/en/pedia/t/trading_volume_analysis_techniques.md +++ b/en/pedia/t/trading_volume_analysis_techniques.md @@ -33,7 +33,7 @@ The Chaikin [Money Flow](../m/money_flow.md) [indicator](../i/indicator.md) is u The ADL measures the cumulative flow of [money](../m/money.md) into and out of a [security](../s/security.md). This [indicator](../i/indicator.md) takes into account the price and [volume](../v/volume.md) and attempts to measure [supply](../s/supply.md) and [demand](../d/demand.md) by analyzing whether investors are generally buying or selling a particular [security](../s/security.md). ### 2.6 Money Flow Index (MFI) -The [Money Flow](../m/money_flow.md) [Index](../i/index.md) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that combines price and [volume](../v/volume.md) data to create a metric reflecting the buying and selling pressure. It ranges from 0 to 100 and is used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +The [Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that combines price and [volume](../v/volume.md) data to create a metric reflecting the buying and selling pressure. It ranges from 0 to 100 and is used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. ### 2.7 Volume by Price This chart overlays the [volume](../v/volume.md) data onto a price chart, displaying the [volume](../v/volume.md) associated with different price levels. This analysis helps identify significant price areas that have witnessed considerable trading activity, acting as potential support or resistance levels. @@ -85,7 +85,7 @@ MetaTrader includes built-in indicators for [volume analysis](../v/volume_analys Analyzing trading [volume](../v/volume.md) for Apple Inc. (AAPL) over the past year and applying OBV, VWAP, and CMF indicators to determine trends and potential trading opportunities. ### 5.2 Case Study: S&P 500 Index -Using [volume analysis](../v/volume_analysis.md) techniques to evaluate the overall [market](../m/market.md) [trend](../t/trend.md) by examining the trading [volume](../v/volume.md) of the S&P 500 [index](../i/index.md) components. +Using [volume analysis](../v/volume_analysis.md) techniques to evaluate the overall [market](../m/market.md) [trend](../t/trend.md) by examining the trading [volume](../v/volume.md) of the S&P 500 [index](../i/index_instrument.md) components. ### 5.3 Algorithmic Trading Strategy Developing an algorithmic strategy based on trading [volume](../v/volume.md), including [backtesting](../b/backtesting.md) results, [performance metrics](../p/performance_metrics.md), and analysis of [market](../m/market.md) impact. diff --git a/en/pedia/t/trading_volume_indicators.md b/en/pedia/t/trading_volume_indicators.md index 0819f505..30f0645b 100644 --- a/en/pedia/t/trading_volume_indicators.md +++ b/en/pedia/t/trading_volume_indicators.md @@ -28,7 +28,7 @@ The Accumulation/[Distribution](../d/distribution.md) Line, created by Marc Chai Developed by Marc Chaikin, the Chaikin [Money Flow](../m/money_flow.md) (CMF) measures the amount of [money](../m/money.md) flowing in and out of a [security](../s/security.md) over a specified period. It combines price and [volume](../v/volume.md) data to indicate the strength of a [trend](../t/trend.md) and possible reversals. ### 6. Money Flow Index (MFI) -The [Money Flow](../m/money_flow.md) [Index](../i/index.md) (MFI) is a [momentum](../m/momentum.md) [indicator](../i/indicator.md) that utilizes price and [volume](../v/volume.md) to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. It's similar to the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) but incorporates [volume](../v/volume.md), making it a valuable tool for [trend analysis](../t/trend_analysis.md). +The [Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md) (MFI) is a [momentum](../m/momentum.md) [indicator](../i/indicator.md) that utilizes price and [volume](../v/volume.md) to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. It's similar to the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) but incorporates [volume](../v/volume.md), making it a valuable tool for [trend analysis](../t/trend_analysis.md). ### 7. Volume-Weighted Average Price (VWAP) The [Volume](../v/volume.md)-[Weighted Average](../w/weighted_average.md) Price (VWAP) provides the average price of a [security](../s/security.md), [weighted](../w/weighted.md) by the [volume](../v/volume.md) traded at each [price level](../p/price_level.md). It's useful for intra-[day trading](../d/day_trading.md) and helps traders determine the average price at which a [security](../s/security.md) has traded throughout the day. diff --git a/en/pedia/t/transfer_of_risk.md b/en/pedia/t/transfer_of_risk.md index 7c0e910a..06ae772c 100644 --- a/en/pedia/t/transfer_of_risk.md +++ b/en/pedia/t/transfer_of_risk.md @@ -22,7 +22,7 @@ Hedging involves the use of financial instruments, such as [derivatives](../d/de - **Swaps**: Agreements to [exchange](../e/exchange.md) cash flows or other financial instruments. ### 3. Derivatives -[Derivatives](../d/derivatives.md) are financial contracts whose [value](../v/value.md) is derived from an [underlying asset](../u/underlying_asset.md), [index](../i/index.md), or rate. They are often used to transfer [risk](../r/risk.md): +[Derivatives](../d/derivatives.md) are financial contracts whose [value](../v/value.md) is derived from an [underlying asset](../u/underlying_asset.md), [index](../i/index_instrument.md), or rate. They are often used to transfer [risk](../r/risk.md): - **[Forward Contracts](../f/forward_contracts.md)**: Customized contracts to buy or sell an [asset](../a/asset.md) at a specified price on a future date. - **[Credit Default Swaps](../c/credit_default_swaps.md) (CDS)**: Instruments used to transfer the [risk](../r/risk.md) of a [credit](../c/credit.md) event, such as [default](../d/default.md) on a [loan](../l/loan.md). diff --git a/en/pedia/t/treasury_direct.md b/en/pedia/t/treasury_direct.md index 88c3d61d..c57d4d29 100644 --- a/en/pedia/t/treasury_direct.md +++ b/en/pedia/t/treasury_direct.md @@ -29,7 +29,7 @@ Treasury bonds are long-term securities with maturities of 20 years or more. Lik ### Treasury Inflation-Protected Securities (TIPS) -TIPS are designed to protect against [inflation](../i/inflation.md). The [principal](../p/principal.md) [value](../v/value.md) of TIPS adjusts based on changes in the Consumer Price [Index](../i/index.md) (CPI). They [offer](../o/offer.md) [interest](../i/interest.md) payments twice a year, which fluctuate because the rate is applied to the adjusted [principal](../p/principal.md). +TIPS are designed to protect against [inflation](../i/inflation.md). The [principal](../p/principal.md) [value](../v/value.md) of TIPS adjusts based on changes in the Consumer Price [Index](../i/index_instrument.md) (CPI). They [offer](../o/offer.md) [interest](../i/interest.md) payments twice a year, which fluctuate because the rate is applied to the adjusted [principal](../p/principal.md). ### Floating Rate Notes (FRNs) diff --git a/en/pedia/t/treasury_inflation-protected_security_(tips).md b/en/pedia/t/treasury_inflation-protected_security_(tips).md index 29c427aa..355387f9 100644 --- a/en/pedia/t/treasury_inflation-protected_security_(tips).md +++ b/en/pedia/t/treasury_inflation-protected_security_(tips).md @@ -1,6 +1,6 @@ # Treasury Inflation-Protected Security (TIPS) -Treasury [Inflation-Protected Securities](../i/inflation-protected_securities.md) (TIPS) are a type of [U.S. Treasury](../u/u.s._treasury.md) [security](../s/security.md) specifically designed to protect investors from [inflation](../i/inflation.md). The [principal](../p/principal.md) [value](../v/value.md) of TIPS increases with [inflation](../i/inflation.md) and decreases with [deflation](../d/deflation.md), as measured by the Consumer Price [Index](../i/index.md) (CPI). Here, we [will](../w/will.md) delve into the fundamental aspects of TIPS, their benefits, how they work, and their significance in a diversified investment portfolio. +Treasury [Inflation-Protected Securities](../i/inflation-protected_securities.md) (TIPS) are a type of [U.S. Treasury](../u/u.s._treasury.md) [security](../s/security.md) specifically designed to protect investors from [inflation](../i/inflation.md). The [principal](../p/principal.md) [value](../v/value.md) of TIPS increases with [inflation](../i/inflation.md) and decreases with [deflation](../d/deflation.md), as measured by the Consumer Price [Index](../i/index_instrument.md) (CPI). Here, we [will](../w/will.md) delve into the fundamental aspects of TIPS, their benefits, how they work, and their significance in a diversified investment portfolio. ## What are TIPS? @@ -8,7 +8,7 @@ Introduced by the U.S. Department of the Treasury in 1997, TIPS are government s ### Key Features of TIPS -1. **[Inflation](../i/inflation.md)-[Indexing](../i/indexing.md)**: TIPS are uniquely indexed to the Consumer Price [Index](../i/index.md) (CPI). This means the [principal](../p/principal.md) [value](../v/value.md) of TIPS adjusts with [inflation](../i/inflation.md) or [deflation](../d/deflation.md). +1. **[Inflation](../i/inflation.md)-[Indexing](../i/indexing.md)**: TIPS are uniquely indexed to the Consumer Price [Index](../i/index_instrument.md) (CPI). This means the [principal](../p/principal.md) [value](../v/value.md) of TIPS adjusts with [inflation](../i/inflation.md) or [deflation](../d/deflation.md). 2. **[Fixed Interest Rate](../f/fixed_interest_rate.md)**: While the [interest rate](../i/interest_rate.md) remains constant, the amount paid in [interest](../i/interest.md) can vary because the [interest](../i/interest.md) is applied to the [inflation](../i/inflation.md)-adjusted [principal](../p/principal.md). 3. **[Maturity](../m/maturity.md) Terms**: TIPS are available in terms of 5, 10, and 30 years. 4. **Government-Backed**: Like other [U.S. Treasury](../u/u.s._treasury.md) securities, TIPS are considered one of the safest investments because they are backed by the full faith and [credit](../c/credit.md) of the U.S. government. diff --git a/en/pedia/t/treasury_yield.md b/en/pedia/t/treasury_yield.md index 7e24171a..e906cb75 100644 --- a/en/pedia/t/treasury_yield.md +++ b/en/pedia/t/treasury_yield.md @@ -14,7 +14,7 @@ Treasury yields represent the [annualized rate of return](../a/annualized_rate_o 3. **Treasury Bonds (T-Bonds):** These are long-term securities with maturities greater than ten years, up to 30 years. Like T-Notes, they pay semi-annual [interest](../i/interest.md) and [return](../r/return.md) the [principal](../p/principal.md) at [maturity](../m/maturity.md). -4. **Treasury [Inflation-Protected Securities](../i/inflation-protected_securities.md) (TIPS):** These bonds are designed to protect investors from [inflation](../i/inflation.md). The [principal](../p/principal.md) [value](../v/value.md) of TIPS adjusts based on changes in the Consumer Price [Index](../i/index.md) (CPI), and they pay [interest](../i/interest.md) every six months on the adjusted [principal](../p/principal.md). +4. **Treasury [Inflation-Protected Securities](../i/inflation-protected_securities.md) (TIPS):** These bonds are designed to protect investors from [inflation](../i/inflation.md). The [principal](../p/principal.md) [value](../v/value.md) of TIPS adjusts based on changes in the Consumer Price [Index](../i/index_instrument.md) (CPI), and they pay [interest](../i/interest.md) every six months on the adjusted [principal](../p/principal.md). ## How Treasury Yields are Determined diff --git a/en/pedia/t/trend.md b/en/pedia/t/trend.md index b083f746..39c550f9 100644 --- a/en/pedia/t/trend.md +++ b/en/pedia/t/trend.md @@ -34,7 +34,7 @@ Trend lines are straight lines drawn on a price chart. There are two main types: Several [technical indicators](../t/technical_indicator.md) help traders identify trends, including: -1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measures the speed and change of price movements. +1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measures the speed and change of price movements. 2. **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: Shows the relationship between two moving averages. 3. **[Average Directional Index](../a/average_directional_index_(adx).md) (ADX)**: Indicates the strength of a trend. diff --git a/en/pedia/t/trend_analysis.md b/en/pedia/t/trend_analysis.md index c1450f4a..fc08845b 100644 --- a/en/pedia/t/trend_analysis.md +++ b/en/pedia/t/trend_analysis.md @@ -11,7 +11,7 @@ 2. **[Trend Indicators](../t/trend_indicators.md)**: - **Moving Averages**: The simple moving average (SMA) and exponential moving average (EMA) are commonly used to smooth out price data and identify the direction of the [trend](../t/trend.md). - - **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measures the speed and change of price movements and can indicate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. + - **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measures the speed and change of price movements and can indicate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: Shows the relationship between two moving averages of a [security](../s/security.md)’s price. - **Trendlines**: Straight lines drawn on price charts to connect historical price points, indicating the [trend](../t/trend.md) direction. - **[Bollinger Bands](../b/bollinger_bands.md)**: [Volatility](../v/volatility.md) bands placed above and below a moving average, showing the relative high and low of the price. diff --git a/en/pedia/t/trend_analysis_in_trading.md b/en/pedia/t/trend_analysis_in_trading.md index d0ee0d0c..b58abf3b 100644 --- a/en/pedia/t/trend_analysis_in_trading.md +++ b/en/pedia/t/trend_analysis_in_trading.md @@ -40,7 +40,7 @@ Several tools and indicators are used for [trend analysis](../t/trend_analysis.m 2. **Trendlines**: Trendlines are lines drawn on a chart that connect significant highs or lows. They help visualize the [trend](../t/trend.md) and can be used to identify [support and resistance](../s/support_and_resistance.md) levels. -3. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It ranges from 0 to 100 and helps identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, which can indicate potential [trend](../t/trend.md) reversals. +3. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It ranges from 0 to 100 and helps identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, which can indicate potential [trend](../t/trend.md) reversals. 4. **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: MACD is a [trend](../t/trend.md)-following [momentum](../m/momentum.md) [indicator](../i/indicator.md) that shows the relationship between two moving averages (typically the 12-day EMA and 26-day EMA). It helps identify [trend](../t/trend.md) direction, strength, and potential [reversal](../r/reversal.md) points. diff --git a/en/pedia/t/trend_analysis_techniques.md b/en/pedia/t/trend_analysis_techniques.md index 34915da1..1705e0df 100644 --- a/en/pedia/t/trend_analysis_techniques.md +++ b/en/pedia/t/trend_analysis_techniques.md @@ -29,7 +29,7 @@ In this formula: ## Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. RSI oscillates between 0 and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. RSI oscillates between 0 and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). ```plaintext RSI = 100 - [100 / (1 + RS)] diff --git a/en/pedia/t/trend_following.md b/en/pedia/t/trend_following.md index 63b2c153..69f61db8 100644 --- a/en/pedia/t/trend_following.md +++ b/en/pedia/t/trend_following.md @@ -12,7 +12,7 @@ The fundamental idea behind [trend](../t/trend.md) following is that markets are ### 1. Identification of Trends -The first step in [trend](../t/trend.md) following is to identify a [trend](../t/trend.md). This can be achieved using various [technical analysis](../t/technical_analysis.md) tools such as moving averages, trendlines, and indicators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or the Moving Average Convergence [Divergence](../d/divergence.md) (MACD). The goal is to determine whether an [asset](../a/asset.md) is trending upwards (bullish [trend](../t/trend.md)) or downwards (bearish [trend](../t/trend.md)). +The first step in [trend](../t/trend.md) following is to identify a [trend](../t/trend.md). This can be achieved using various [technical analysis](../t/technical_analysis.md) tools such as moving averages, trendlines, and indicators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or the Moving Average Convergence [Divergence](../d/divergence.md) (MACD). The goal is to determine whether an [asset](../a/asset.md) is trending upwards (bullish [trend](../t/trend.md)) or downwards (bearish [trend](../t/trend.md)). ### 2. Entry and Exit Points @@ -46,7 +46,7 @@ Trendlines and channels are visual tools used to identify and [trade](../t/trade ### Technical Indicators -Various [technical indicators](../t/technical_indicators.md) are used in [trend](../t/trend.md)-following strategies to generate signals and confirm trends. Popular indicators include the Moving Average Convergence [Divergence](../d/divergence.md) (MACD), the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), the [Average Directional Index](../a/average_directional_index_(adx).md) (ADX), and the [Parabolic SAR](../p/parabolic_sar.md). These indicators help traders identify trends, measure their strength, and determine potential [reversal](../r/reversal.md) points. +Various [technical indicators](../t/technical_indicators.md) are used in [trend](../t/trend.md)-following strategies to generate signals and confirm trends. Popular indicators include the Moving Average Convergence [Divergence](../d/divergence.md) (MACD), the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), the [Average Directional Index](../a/average_directional_index_(adx).md) (ADX), and the [Parabolic SAR](../p/parabolic_sar.md). These indicators help traders identify trends, measure their strength, and determine potential [reversal](../r/reversal.md) points. ## Advantages and Disadvantages diff --git a/en/pedia/t/trend_following_indicators.md b/en/pedia/t/trend_following_indicators.md index 6268eb68..f2bbed31 100644 --- a/en/pedia/t/trend_following_indicators.md +++ b/en/pedia/t/trend_following_indicators.md @@ -99,7 +99,7 @@ Developed by Richard Dennis and William Eckhardt, this system employs [breakout] ## ADX + DI Strategy -This strategy utilizes the [Average Directional Index](../a/average_directional_index_(adx).md) in combination with the Directional Movement [Index](../i/index.md) (DMI) to identify and [trade](../t/trade.md) based on the [trend](../t/trend.md)'s strength and direction. +This strategy utilizes the [Average Directional Index](../a/average_directional_index_(adx).md) in combination with the Directional Movement [Index](../i/index_instrument.md) (DMI) to identify and [trade](../t/trade.md) based on the [trend](../t/trend.md)'s strength and direction. ### Trading Signals diff --git a/en/pedia/t/trend_following_models.md b/en/pedia/t/trend_following_models.md index ee8ec8a8..15df465c 100644 --- a/en/pedia/t/trend_following_models.md +++ b/en/pedia/t/trend_following_models.md @@ -23,7 +23,7 @@ To effectively build and execute a [trend](../t/trend.md)-following strategy, ac Indicators are essential tools in identifying trends. Some popular indicators include: - Moving Averages (MA): Averages of price over a specified number of periods. -- [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI): Measures the speed and change of price movements. +- [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI): Measures the speed and change of price movements. - Moving Average Convergence [Divergence](../d/divergence.md) (MACD): Shows the relationship between two moving averages. ### Algorithms @@ -43,7 +43,7 @@ def moving_average_crossover(prices, short_window, long_window): short_ma = prices.rolling(window=short_window, min_periods=1).mean() long_ma = prices.rolling(window=long_window, min_periods=1).mean() - signals = pd.DataFrame([index](../i/index.md)=prices.[index](../i/index.md)) + signals = pd.DataFrame([index](../i/index_instrument.md)=prices.[index](../i/index_instrument.md)) signals['signal'] = 0.0 signals['short_ma'] = short_ma signals['long_ma'] = long_ma @@ -67,7 +67,7 @@ def bollinger_bands(prices, window, num_std_dev): upper_band = rolling_mean + (rolling_std * num_std_dev) lower_band = rolling_mean - (rolling_std * num_std_dev) - signals = pd.DataFrame([index](../i/index.md)=prices.[index](../i/index.md)) + signals = pd.DataFrame([index](../i/index_instrument.md)=prices.[index](../i/index_instrument.md)) signals['price'] = prices signals['upper_band'] = upper_band signals['lower_band'] = lower_band @@ -97,7 +97,7 @@ def relative_strength_index(prices, window): rs = avg_gain / avg_loss rsi = 100 - (100 / (1 + rs)) - signals = pd.DataFrame([index](../i/index.md)=prices.[index](../i/index.md)) + signals = pd.DataFrame([index](../i/index_instrument.md)=prices.[index](../i/index_instrument.md)) signals['price'] = prices signals['rsi'] = rsi diff --git a/en/pedia/t/trend_following_strategies.md b/en/pedia/t/trend_following_strategies.md index 59b65cc0..fc495105 100644 --- a/en/pedia/t/trend_following_strategies.md +++ b/en/pedia/t/trend_following_strategies.md @@ -30,7 +30,7 @@ Several [technical indicators](../t/technical_indicators.md) are commonly used i 3. **[Bollinger Bands](../b/bollinger_bands.md)**: These are used to measure [market](../m/market.md) [volatility](../v/volatility.md) and identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. They consist of a middle band representing a moving average, an upper band, and a lower band. -4. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: RSI measures the speed and change of price movements and can indicate whether a [security](../s/security.md) is [overbought](../o/overbought.md) or [oversold](../o/oversold.md). +4. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: RSI measures the speed and change of price movements and can indicate whether a [security](../s/security.md) is [overbought](../o/overbought.md) or [oversold](../o/oversold.md). ## Implementation of Trend Following Strategies The implementation of [trend following](../t/trend_following.md) strategies in [algorithmic trading](../a/algorithmic_trading.md) involves several steps, including data collection, [indicator](../i/indicator.md) calculation, signal generation, [risk management](../r/risk_management.md), and [execution](../e/execution.md). diff --git a/en/pedia/t/trend_indicators.md b/en/pedia/t/trend_indicators.md index 9a74f877..4701a945 100644 --- a/en/pedia/t/trend_indicators.md +++ b/en/pedia/t/trend_indicators.md @@ -20,7 +20,7 @@ The Moving Average Convergence [Divergence](../d/divergence.md) (MACD) is a [mom ### Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) measures the speed and change of price movements on a scale of 0 to 100. RSI values above 70 suggest an [overbought](../o/overbought.md) condition, while values below 30 indicate an [oversold](../o/oversold.md) condition. It’s used for identifying potential [reversal](../r/reversal.md) points and confirming trends. +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) measures the speed and change of price movements on a scale of 0 to 100. RSI values above 70 suggest an [overbought](../o/overbought.md) condition, while values below 30 indicate an [oversold](../o/oversold.md) condition. It’s used for identifying potential [reversal](../r/reversal.md) points and confirming trends. ### Stochastic Oscillator diff --git a/en/pedia/t/trend_reversal.md b/en/pedia/t/trend_reversal.md index b03f4d09..f3888ae9 100644 --- a/en/pedia/t/trend_reversal.md +++ b/en/pedia/t/trend_reversal.md @@ -17,7 +17,7 @@ Various [technical indicators](../t/technical_indicators.md) and [chart patterns - **Simple Moving Average (SMA)**: Averages the price over a specified period. - **Exponential Moving Average (EMA)**: Gives more weight to recent prices. -2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: +2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: - Measures the speed and change of price movements. - Typically, an RSI above 70 indicates [overbought](../o/overbought.md) conditions, while below 30 suggests [oversold](../o/oversold.md) conditions. diff --git a/en/pedia/t/trend_strength_analysis.md b/en/pedia/t/trend_strength_analysis.md index 3f47800d..05267e35 100644 --- a/en/pedia/t/trend_strength_analysis.md +++ b/en/pedia/t/trend_strength_analysis.md @@ -28,7 +28,7 @@ The ADX measures the strength of a [trend](../t/trend.md), regardless of its dir - **40-60:** Strong [trend](../t/trend.md). - **Above 60:** Very strong [trend](../t/trend.md). -**c. [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** +**c. [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** RSI evaluates the magnitude of recent price changes to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. It is useful for spotting [trend](../t/trend.md) weakness. diff --git a/en/pedia/t/trend_trading.md b/en/pedia/t/trend_trading.md index be732cc6..7e4d7849 100644 --- a/en/pedia/t/trend_trading.md +++ b/en/pedia/t/trend_trading.md @@ -38,7 +38,7 @@ Confirming trends can reduce the likelihood of [false signals](../f/false_signal - **[Volume Analysis](../v/volume_analysis.md)**: A [trend](../t/trend.md) accompanied by high trading [volume](../v/volume.md) is generally considered more reliable than one with low [volume](../v/volume.md). -- **Oscillators**: Tools like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) and Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can help confirm whether an [asset](../a/asset.md) is [overbought](../o/overbought.md) or [oversold](../o/oversold.md), potentially signaling [trend](../t/trend.md) continuation or [reversal](../r/reversal.md). +- **Oscillators**: Tools like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) and Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can help confirm whether an [asset](../a/asset.md) is [overbought](../o/overbought.md) or [oversold](../o/oversold.md), potentially signaling [trend](../t/trend.md) continuation or [reversal](../r/reversal.md). ## Advantages of Trend Trading diff --git a/en/pedia/t/trendline.md b/en/pedia/t/trendline.md index 474e9d91..283cc1fb 100644 --- a/en/pedia/t/trendline.md +++ b/en/pedia/t/trendline.md @@ -52,7 +52,7 @@ Trendlines can also be used to position [stop-loss orders](../s/stop-loss_orders ### Confirmation of Other Technical Indicators -Trendlines can be used to confirm signals generated by other [technical indicators](../t/technical_indicator.md) such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), or Moving Average Convergence [Divergence](../d/divergence.md) (MACD). When these indicators align with [trendline analysis](../t/trendline_analysis.md), the reliability of the signals is typically higher. +Trendlines can be used to confirm signals generated by other [technical indicators](../t/technical_indicator.md) such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), or Moving Average Convergence [Divergence](../d/divergence.md) (MACD). When these indicators align with [trendline analysis](../t/trendline_analysis.md), the reliability of the signals is typically higher. ### Technical Patterns diff --git a/en/pedia/t/triangle_patterns_in_trading.md b/en/pedia/t/triangle_patterns_in_trading.md index 929e4682..2a8f47c9 100644 --- a/en/pedia/t/triangle_patterns_in_trading.md +++ b/en/pedia/t/triangle_patterns_in_trading.md @@ -83,7 +83,7 @@ One of the challenges in trading [triangle](../t/triangle.md) patterns is dealin While [triangle](../t/triangle.md) patterns are powerful on their own, combining them with other [technical indicators](../t/technical_indicators.md) can enhance their reliability. Some popular indicators include: - **Moving Averages:** Moving averages can help identify the overall [trend](../t/trend.md) direction. A crossover of moving averages can provide additional confirmation for entering or exiting trades. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** RSI can indicate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, helping traders avoid entering trades just as a [trend](../t/trend.md) is about to reverse. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** RSI can indicate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, helping traders avoid entering trades just as a [trend](../t/trend.md) is about to reverse. - **MACD (Moving Average Convergence [Divergence](../d/divergence.md)):** MACD can provide insights into [momentum](../m/momentum.md) and potential [trend](../t/trend.md) reversals, complementing the signals from [triangle](../t/triangle.md) patterns. ### Practical Example: Trading a Symmetrical Triangle with Moving Averages diff --git a/en/pedia/t/triggering_event.md b/en/pedia/t/triggering_event.md index 3c6d581d..26d68afb 100644 --- a/en/pedia/t/triggering_event.md +++ b/en/pedia/t/triggering_event.md @@ -22,7 +22,7 @@ Triggering events can be broadly categorized into several types based on their n - Data such as non-farm payrolls, [unemployment](../u/unemployment.md) rates, and [jobless claims](../j/jobless_claims.md) can significantly move markets and trigger trading actions. 2. **[Inflation](../i/inflation.md) Data**: - - Consumer Price [Index](../i/index.md) (CPI), Producer Price [Index](../i/index.md) (PPI), and other measures of [inflation](../i/inflation.md) can trigger trading decisions based on anticipated [monetary policy](../m/monetary_policy.md) adjustments. + - Consumer Price [Index](../i/index_instrument.md) (CPI), Producer Price [Index](../i/index_instrument.md) (PPI), and other measures of [inflation](../i/inflation.md) can trigger trading decisions based on anticipated [monetary policy](../m/monetary_policy.md) adjustments. 3. **GDP Reports**: - Gross Domestic Product (GDP) reports reflect the economic health of a country and can trigger broad [market](../m/market.md) movements. diff --git a/en/pedia/t/triple_bottom_patterns.md b/en/pedia/t/triple_bottom_patterns.md index 91fdf6ed..b98b463c 100644 --- a/en/pedia/t/triple_bottom_patterns.md +++ b/en/pedia/t/triple_bottom_patterns.md @@ -63,7 +63,7 @@ Incorporating [volume analysis](../v/volume_analysis.md) enhances the reliabilit ### 3. Indicator Confirmation Strategy -Using [technical indicators](../t/technical_indicators.md) in conjunction with the [Triple Bottom](../t/triple_bottom.md) pattern can provide additional layers of confirmation for the [trade](../t/trade.md). Indicators like [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Averages, or MACD can validate the [breakout](../b/breakout.md) and [underlying](../u/underlying.md) [momentum](../m/momentum.md). +Using [technical indicators](../t/technical_indicators.md) in conjunction with the [Triple Bottom](../t/triple_bottom.md) pattern can provide additional layers of confirmation for the [trade](../t/trade.md). Indicators like [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Averages, or MACD can validate the [breakout](../b/breakout.md) and [underlying](../u/underlying.md) [momentum](../m/momentum.md). - **Entry**: Combine the resistance [breakout](../b/breakout.md) with confirmation from indicators such as RSI crossing above 50 or a bullish crossover in MACD. - **Stop Loss**: Stop placement below the third low. diff --git a/en/pedia/t/triple_exponential_average.md b/en/pedia/t/triple_exponential_average.md index 119c86dd..46d00390 100644 --- a/en/pedia/t/triple_exponential_average.md +++ b/en/pedia/t/triple_exponential_average.md @@ -61,7 +61,7 @@ TRIX_t = \frac {EMA3_t - EMA3_{t-1}} {EMA3_{t-1}} \times 100 Many traders use TRIX in combination with other [technical indicators](../t/technical_indicators.md) to confirm signals and trends. Common complementary indicators include: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** Helps to identify [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** Helps to identify [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions. - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD):** Offers insights into [trend](../t/trend.md) direction and [momentum](../m/momentum.md). - **[Volume Indicators](../v/volume_indicators.md):** Showing the strength behind price movements. diff --git a/en/pedia/t/triple_witching.md b/en/pedia/t/triple_witching.md index 22b965ad..e28217d9 100644 --- a/en/pedia/t/triple_witching.md +++ b/en/pedia/t/triple_witching.md @@ -7,7 +7,7 @@ Triple witching refers to the simultaneous expiration of stock [options](../o/op The term "triple witching" comes from the old belief in witches' power becoming particularly strong at certain times. In [financial markets](../f/financial_market.md), it marks a moment when the confluence of expiring [derivative](../d/derivative.md) contracts can wreak havoc, akin to the chaos one might expect from a gathering of witches. The three main types of contracts expiring simultaneously are: 1. **Stock [Options](../o/options.md)**: Contracts that give the holder the right, but not the obligation, to buy or sell a particular stock at a set price before the contract expires. -2. **Stock [Index Futures](../i/index_futures.md)**: Contracts obligating the buyer to purchase, or the seller to sell, the [value](../v/value.md) of a particular stock [index](../i/index.md) (e.g., the S&P 500) at a future date. +2. **Stock [Index Futures](../i/index_futures.md)**: Contracts obligating the buyer to purchase, or the seller to sell, the [value](../v/value.md) of a particular stock [index](../i/index_instrument.md) (e.g., the S&P 500) at a future date. 3. **Stock [Index Options](../i/index_options.md)**: [Options](../o/options.md) on entire stock indices that give the right to buy or sell these indices at a predetermined price. ## Market Impact diff --git a/en/pedia/t/trough.md b/en/pedia/t/trough.md index 37dadc3f..72c4a44d 100644 --- a/en/pedia/t/trough.md +++ b/en/pedia/t/trough.md @@ -32,12 +32,12 @@ Government bodies like the National Bureau of Economic Research (NBER) in the Un ### Market Cycles -Similar to [economic cycles](../e/economic_cycles.md), [financial markets](../f/financial_market.md) also experience cyclical phases: bullish ([uptrend](../u/uptrend.md)) and bearish ([downtrend](../d/downtrend.md)). The trough in [financial markets](../f/financial_market.md) represents the lowest price point of an [asset](../a/asset.md), [index](../i/index.md), or the overall [market](../m/market.md) during a [downtrend](../d/downtrend.md) before prices begin to rise again. +Similar to [economic cycles](../e/economic_cycles.md), [financial markets](../f/financial_market.md) also experience cyclical phases: bullish ([uptrend](../u/uptrend.md)) and bearish ([downtrend](../d/downtrend.md)). The trough in [financial markets](../f/financial_market.md) represents the lowest price point of an [asset](../a/asset.md), [index](../i/index_instrument.md), or the overall [market](../m/market.md) during a [downtrend](../d/downtrend.md) before prices begin to rise again. ### Identifying Market Troughs Identifying a trough in [financial markets](../f/financial_market.md) involves analyzing historical data and applying technical and [fundamental analysis](../f/fundamental_analysis.md): -- **[Technical Analysis](../t/technical_analysis.md)**: Traders use [chart patterns](../c/chart_patterns.md), [trend](../t/trend.md) lines, moving averages, and oscillators (like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md)) to identify potential troughs. Key patterns include double bottoms and [inverse head and shoulders](../i/inverse_head_and_shoulders.md). +- **[Technical Analysis](../t/technical_analysis.md)**: Traders use [chart patterns](../c/chart_patterns.md), [trend](../t/trend.md) lines, moving averages, and oscillators (like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)) to identify potential troughs. Key patterns include double bottoms and [inverse head and shoulders](../i/inverse_head_and_shoulders.md). - **[Fundamental Analysis](../f/fundamental_analysis.md)**: Evaluating a company’s [financial health](../f/financial_health.md), [market](../m/market.md) conditions, and [economic indicators](../e/economic_indicators.md) can help identify [undervalued](../u/undervalued.md) assets poised for recovery. It's crucial to [note](../n/note.md) that predicting [market](../m/market.md) troughs is inherently risky and requires a combination of expertise and [market](../m/market.md) insight. diff --git a/en/pedia/t/true_strength_index_(tsi).md b/en/pedia/t/true_strength_index_(tsi).md index 2dbff85e..3eded358 100644 --- a/en/pedia/t/true_strength_index_(tsi).md +++ b/en/pedia/t/true_strength_index_(tsi).md @@ -1,10 +1,10 @@ # True Strength Index (TSI) -The True Strength [Index](../i/index.md) (TSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) developed by William Blau. It measures the strength of a [financial instrument](../f/financial_instrument.md) by using double smoothing to minimize long-term trends and provide a clearer indication of price changes and potential shifts in [market](../m/market.md) [momentum](../m/momentum.md). +The True Strength [Index](../i/index_instrument.md) (TSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) developed by William Blau. It measures the strength of a [financial instrument](../f/financial_instrument.md) by using double smoothing to minimize long-term trends and provide a clearer indication of price changes and potential shifts in [market](../m/market.md) [momentum](../m/momentum.md). ## Understanding the True Strength Index -The TSI takes into account the price difference between successive bars, often referred to as the price change or [delta](../d/delta.md), and smooths it using a pair of exponential moving averages (EMAs). This double EMA smoothing approach helps filter out the [noise](../n/noise.md) and identify more significant trends or shifts in [momentum](../m/momentum.md). The TSI oscillates between positive and negative values and can be interpreted in ways similar to other [momentum oscillators](../m/momentum_oscillators.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI). +The TSI takes into account the price difference between successive bars, often referred to as the price change or [delta](../d/delta.md), and smooths it using a pair of exponential moving averages (EMAs). This double EMA smoothing approach helps filter out the [noise](../n/noise.md) and identify more significant trends or shifts in [momentum](../m/momentum.md). The TSI oscillates between positive and negative values and can be interpreted in ways similar to other [momentum oscillators](../m/momentum_oscillators.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI). ## Formula @@ -22,7 +22,7 @@ The TSI is calculated with the following formula: 4. **Smoothed Absolute Price Change (`absDelta`)**: \( \text{Smoothed} abs\[Delta](../d/delta.md) = EMA(EMA(abs\[Delta](../d/delta.md), r), s) \) -5. **True Strength [Index](../i/index.md)**: +5. **True Strength [Index](../i/index_instrument.md)**: \( TSI = \frac{Smoothed \[Delta](../d/delta.md)}{Smoothed abs\[Delta](../d/delta.md)} \times 100 \) Where: @@ -129,7 +129,7 @@ print(df) 1. **Adding TSI [Indicator](../i/indicator.md)**: - [Open](../o/open.md) a chart in [TradingView](../t/tradingview.md). - Click on "Indicators" in the toolbar. - - Search for "True Strength [Index](../i/index.md)" and select it. + - Search for "True Strength [Index](../i/index_instrument.md)" and select it. 2. **Customizing Parameters**: - Adjust the periods for the EMAs (`r` and `s`) as desired in the settings. 3. **Interpreting Signals**: @@ -140,4 +140,4 @@ You can explore TSI further on [TradingView](../t/tradingview.md)'s website: [Tr ## Conclusion -The True Strength [Index](../i/index.md) is a valuable [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that provides insights into the strength and direction of [market](../m/market.md) trends. Its double smoothing technique reduces [noise](../n/noise.md) and makes it an effective tool for identifying potential entry and exit points in various [trading strategies](../t/trading_strategies.md). Whether used for manual [market](../m/market.md) analysis or integrated into more complex [algorithmic trading](../a/accountability.md) systems, TSI can significantly enhance a [trader](../t/trader.md)'s ability to navigate [financial markets](../f/financial_market.md). \ No newline at end of file +The True Strength [Index](../i/index_instrument.md) is a valuable [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that provides insights into the strength and direction of [market](../m/market.md) trends. Its double smoothing technique reduces [noise](../n/noise.md) and makes it an effective tool for identifying potential entry and exit points in various [trading strategies](../t/trading_strategies.md). Whether used for manual [market](../m/market.md) analysis or integrated into more complex [algorithmic trading](../a/accountability.md) systems, TSI can significantly enhance a [trader](../t/trader.md)'s ability to navigate [financial markets](../f/financial_market.md). \ No newline at end of file diff --git a/en/pedia/t/turnover_ratios_in_trading.md b/en/pedia/t/turnover_ratios_in_trading.md index d0385914..670ad028 100644 --- a/en/pedia/t/turnover_ratios_in_trading.md +++ b/en/pedia/t/turnover_ratios_in_trading.md @@ -112,7 +112,7 @@ Vanguard, a prominent [investment management](../i/investment_management.md) com ### Investment Strategies Different investment strategies exhibit varying [turnover ratios](../t/turnover_ratios.md). For instance: -- **Passive Strategies**: [Index](../i/index.md) funds and other passive strategies typically have low [turnover ratios](../t/turnover_ratios.md), reflecting their buy-and-[hold](../h/hold.md) approach. +- **Passive Strategies**: [Index](../i/index_instrument.md) funds and other passive strategies typically have low [turnover ratios](../t/turnover_ratios.md), reflecting their buy-and-[hold](../h/hold.md) approach. - **Active Strategies**: Strategies that focus on [short-term trading](../s/short-term_trading.md), [technical analysis](../t/technical_analysis.md), or [market timing](../m/market_timing.md) tend to have higher [turnover ratios](../t/turnover_ratios.md). ### Institutional Investors diff --git a/en/pedia/t/turnover_strategies.md b/en/pedia/t/turnover_strategies.md index 93ba7334..a603d18e 100644 --- a/en/pedia/t/turnover_strategies.md +++ b/en/pedia/t/turnover_strategies.md @@ -78,7 +78,7 @@ Two Sigma uses [data science](../d/data_science_in_trading.md) and technology to ### Vanguard -Vanguard is well-known for its low [turnover](../t/turnover.md) [index](../i/index.md) funds and ETFs. The [firm](../f/firm.md) advocates for a buy-and-[hold](../h/hold.md) approach and aims to provide long-term [value](../v/value.md) to investors. [Vanguard](https://www.vanguard.com). +Vanguard is well-known for its low [turnover](../t/turnover.md) [index](../i/index_instrument.md) funds and ETFs. The [firm](../f/firm.md) advocates for a buy-and-[hold](../h/hold.md) approach and aims to provide long-term [value](../v/value.md) to investors. [Vanguard](https://www.vanguard.com). ## Conclusion diff --git a/en/pedia/t/tweezer.md b/en/pedia/t/tweezer.md index 828ada63..25944344 100644 --- a/en/pedia/t/tweezer.md +++ b/en/pedia/t/tweezer.md @@ -66,7 +66,7 @@ To enhance the reliability of Tweezer patterns, traders often combine them with 1. **Moving Averages**: Using moving averages like the 50-day or [200-day moving average](../1/200-day_moving_average.md) can help traders confirm the strength and direction of the [underlying](../u/underlying.md) [trend](../t/trend.md). 2. **[Volume Analysis](../v/volume_analysis.md)**: Observing [volume](../v/volume.md) can provide insight into whether the Tweezer pattern is supported by sufficient [market](../m/market.md) activity. Higher volumes lend more credibility to the pattern. -3. **[Momentum Oscillators](../m/momentum_oscillators.md)**: Indicators such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) and Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can provide additional signals to validate a Tweezer pattern. +3. **[Momentum Oscillators](../m/momentum_oscillators.md)**: Indicators such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) and Moving Average Convergence [Divergence](../d/divergence.md) (MACD) can provide additional signals to validate a Tweezer pattern. 4. **Fibonacci Levels**: [Fibonacci retracement](../f/fibonacci_retracement.md) or extension levels can help identify potential price targets and stop-loss points. ## Conclusion diff --git a/en/pedia/u/u.s._dollar_index_(usdx).md b/en/pedia/u/u.s._dollar_index_(usdx).md index a617a5ac..b060d840 100644 --- a/en/pedia/u/u.s._dollar_index_(usdx).md +++ b/en/pedia/u/u.s._dollar_index_(usdx).md @@ -1,10 +1,10 @@ # U.S. Dollar Index (USDX) -The U.S. Dollar [Index](../i/index.md) (USDX) is a measure of the [value](../v/value.md) of the United States dollar relative to a basket of foreign currencies. It is a crucial [indicator](../i/indicator.md) in the [foreign exchange](../f/foreign_exchange.md) [market](../m/market.md) and is widely used by traders, financial institutions, and policymakers to gauge the strength of the U.S. dollar. The [index](../i/index.md) was established in March 1973 after the dismantling of the Bretton Woods Agreement. Since then, it has served as a yardstick to track the U.S. dollar's performance on a global scale. +The U.S. Dollar [Index](../i/index_instrument.md) (USDX) is a measure of the [value](../v/value.md) of the United States dollar relative to a basket of foreign currencies. It is a crucial [indicator](../i/indicator.md) in the [foreign exchange](../f/foreign_exchange.md) [market](../m/market.md) and is widely used by traders, financial institutions, and policymakers to gauge the strength of the U.S. dollar. The [index](../i/index_instrument.md) was established in March 1973 after the dismantling of the Bretton Woods Agreement. Since then, it has served as a yardstick to track the U.S. dollar's performance on a global scale. ## Composition of the USDX -The U.S. Dollar [Index](../i/index.md) is calculated by factoring in the [exchange](../e/exchange.md) rates of six major world currencies. Each of these currencies is assigned a weight, which reflects its importance in international [trade](../t/trade.md) and [financial markets](../f/financial_market.md) relative to the U.S. dollar. The current composition of the USDX includes: +The U.S. Dollar [Index](../i/index_instrument.md) is calculated by factoring in the [exchange](../e/exchange.md) rates of six major world currencies. Each of these currencies is assigned a weight, which reflects its importance in international [trade](../t/trade.md) and [financial markets](../f/financial_market.md) relative to the U.S. dollar. The current composition of the USDX includes: - **[Euro](../e/euro.md) (EUR)** - Approximately 57.6% - **Japanese Yen (JPY)** - Approximately 13.6% @@ -13,29 +13,29 @@ The U.S. Dollar [Index](../i/index.md) is calculated by factoring in the [exchan - **Swedish Krona (SEK)** - Approximately 4.2% - **Swiss Franc (CHF)** - Approximately 3.6% -The weights of these currencies were originally based on their share of international [trade](../t/trade.md) with the United States and have not been updated since the inception of the [index](../i/index.md). As a result, the U.S. Dollar [Index](../i/index.md) may not accurately reflect current global economic realities. +The weights of these currencies were originally based on their share of international [trade](../t/trade.md) with the United States and have not been updated since the inception of the [index](../i/index_instrument.md). As a result, the U.S. Dollar [Index](../i/index_instrument.md) may not accurately reflect current global economic realities. ## Calculation of the USDX -The USDX is computed using a [weighted](../w/weighted.md) [geometric mean](../g/geometric_mean_in_trading.md) of the [exchange](../e/exchange.md) rates of the included currencies. The formula for calculating the U.S. Dollar [Index](../i/index.md) is: +The USDX is computed using a [weighted](../w/weighted.md) [geometric mean](../g/geometric_mean_in_trading.md) of the [exchange](../e/exchange.md) rates of the included currencies. The formula for calculating the U.S. Dollar [Index](../i/index_instrument.md) is: \[ USDX = 50.14348112 \times (EUR/USD)^{-0.576} \times (USD/JPY)^{0.136} \times (GBP/USD)^{-0.119} \times (USD/CAD)^{0.091} \times (USD/SEK)^{0.042} \times (USD/CHF)^{0.036} \] In this formula: -- The constant 50.14348112 is a scaling [factor](../f/factor.md) used to normalize the [index](../i/index.md) to a [baseline](../b/baseline.md) [value](../v/value.md) of 100. +- The constant 50.14348112 is a scaling [factor](../f/factor.md) used to normalize the [index](../i/index_instrument.md) to a [baseline](../b/baseline.md) [value](../v/value.md) of 100. - The [exchange](../e/exchange.md) rates are expressed as the [value](../v/value.md) of one U.S. dollar in terms of the respective foreign [currency](../c/currency.md), except for the EUR/USD and GBP/USD pairs, which are inverted. ## Importance and Applications -The U.S. Dollar [Index](../i/index.md) serves several key purposes in the world of [finance](../f/finance.md) and trading: +The U.S. Dollar [Index](../i/index_instrument.md) serves several key purposes in the world of [finance](../f/finance.md) and trading: ### 1. Benchmark for Dollar Strength -The USDX is widely regarded as a [benchmark](../b/benchmark.md) for assessing the [relative strength](../r/relative_strength.md) of the U.S. dollar. A rising [index](../i/index.md) indicates a strengthening dollar, while a falling [index](../i/index.md) suggests a weakening dollar. This information is crucial for investors, traders, and policymakers when making decisions that can impact the [economy](../e/economy.md). +The USDX is widely regarded as a [benchmark](../b/benchmark.md) for assessing the [relative strength](../r/relative_strength.md) of the U.S. dollar. A rising [index](../i/index_instrument.md) indicates a strengthening dollar, while a falling [index](../i/index_instrument.md) suggests a weakening dollar. This information is crucial for investors, traders, and policymakers when making decisions that can impact the [economy](../e/economy.md). ### 2. Hedging Tool -For companies and investors with exposure to foreign currencies, the U.S. Dollar [Index](../i/index.md) can serve as an effective hedging tool. [Derivatives](../d/derivatives.md) such as [futures contracts](../f/futures_contracts.md) and [options](../o/options.md) on the USDX exist and are traded on various exchanges, allowing [market](../m/market.md) participants to mitigate [currency](../c/currency.md) [risk](../r/risk.md). +For companies and investors with exposure to foreign currencies, the U.S. Dollar [Index](../i/index_instrument.md) can serve as an effective hedging tool. [Derivatives](../d/derivatives.md) such as [futures contracts](../f/futures_contracts.md) and [options](../o/options.md) on the USDX exist and are traded on various exchanges, allowing [market](../m/market.md) participants to mitigate [currency](../c/currency.md) [risk](../r/risk.md). ### 3. Impact on Global Markets @@ -47,7 +47,7 @@ The USDX is also used as an [economic indicator](../e/economic_indicator.md) to ## Limitations of the USDX -Despite its widespread use, the U.S. Dollar [Index](../i/index.md) has certain limitations: +Despite its widespread use, the U.S. Dollar [Index](../i/index_instrument.md) has certain limitations: ### 1. Outdated Currency Basket @@ -55,23 +55,23 @@ The composition of the USDX has remained [unchanged](../u/unchanged.md) since it ### 2. Overweighting of the Euro -The heavy weighting of the [Euro](../e/euro.md) in the USDX means that the [index](../i/index.md) is particularly sensitive to movements in the EUR/USD [currency](../c/currency.md) pair. This can skew the [index](../i/index.md)'s representation of the broader U.S. dollar strength or weakness, potentially misleading [market](../m/market.md) participants. +The heavy weighting of the [Euro](../e/euro.md) in the USDX means that the [index](../i/index_instrument.md) is particularly sensitive to movements in the EUR/USD [currency](../c/currency.md) pair. This can skew the [index](../i/index_instrument.md)'s representation of the broader U.S. dollar strength or weakness, potentially misleading [market](../m/market.md) participants. ### 3. Lack of Coverage -The six currencies that make up the USDX represent a limited subset of the global [currency](../c/currency.md) [market](../m/market.md). Other significant trading partners of the United States, including countries using the Australian Dollar (AUD), Indian Rupee (INR), and Brazilian Real (BRL), are not included in the [index](../i/index.md). +The six currencies that make up the USDX represent a limited subset of the global [currency](../c/currency.md) [market](../m/market.md). Other significant trading partners of the United States, including countries using the Australian Dollar (AUD), Indian Rupee (INR), and Brazilian Real (BRL), are not included in the [index](../i/index_instrument.md). ## Alternatives to the USDX -Given the limitations of the U.S. Dollar [Index](../i/index.md), several alternative indices and measures have been developed to provide a more comprehensive view of the dollar's strength: +Given the limitations of the U.S. Dollar [Index](../i/index_instrument.md), several alternative indices and measures have been developed to provide a more comprehensive view of the dollar's strength: ### 1. Trade-Weighted Dollar Index (TWDI) -The [Trade](../t/trade.md)-[Weighted](../w/weighted.md) Dollar [Index](../i/index.md), published by the Federal Reserve, includes a broader [range](../r/range.md) of currencies and weights them based on their share of U.S. [trade](../t/trade.md). This makes the TWDI more representative of actual [trade](../t/trade.md) dynamics affecting the U.S. [economy](../e/economy.md). +The [Trade](../t/trade.md)-[Weighted](../w/weighted.md) Dollar [Index](../i/index_instrument.md), published by the Federal Reserve, includes a broader [range](../r/range.md) of currencies and weights them based on their share of U.S. [trade](../t/trade.md). This makes the TWDI more representative of actual [trade](../t/trade.md) dynamics affecting the U.S. [economy](../e/economy.md). ### 2. Bloomberg Dollar Spot Index (BBDX) -The [Bloomberg](../b/bloomberg.md) Dollar Spot [Index](../i/index.md) includes a wider array of currencies and is designed to reflect the dollar's performance against a global basket of major currencies. The [index](../i/index.md) is [weighted](../w/weighted.md) based on the [liquidity](../l/liquidity.md) of the currencies, making it a more dynamic measure. +The [Bloomberg](../b/bloomberg.md) Dollar Spot [Index](../i/index_instrument.md) includes a wider array of currencies and is designed to reflect the dollar's performance against a global basket of major currencies. The [index](../i/index_instrument.md) is [weighted](../w/weighted.md) based on the [liquidity](../l/liquidity.md) of the currencies, making it a more dynamic measure. ### 3. ICE U.S. Dollar Index (DXY) @@ -79,22 +79,22 @@ This is essentially the same as the USDX but is the version traded on the Interc ## Trading the USDX -The U.S. Dollar [Index](../i/index.md) is actively traded as a [futures contract](../f/futures_contract.md) on the ICE. Traders and investors can also access the [index](../i/index.md) through various [exchange](../e/exchange.md)-traded funds (ETFs), [options](../o/options.md), and other financial instruments. Trading the USDX allows participants to speculate on the direction of the U.S. dollar or [hedge](../h/hedge.md) their [currency](../c/currency.md) exposure. +The U.S. Dollar [Index](../i/index_instrument.md) is actively traded as a [futures contract](../f/futures_contract.md) on the ICE. Traders and investors can also access the [index](../i/index_instrument.md) through various [exchange](../e/exchange.md)-traded funds (ETFs), [options](../o/options.md), and other financial instruments. Trading the USDX allows participants to speculate on the direction of the U.S. dollar or [hedge](../h/hedge.md) their [currency](../c/currency.md) exposure. ### Futures Contracts -USDX [futures contracts](../f/futures_contracts.md) are standardized agreements to buy or sell a specified amount of the U.S. Dollar [Index](../i/index.md) at a predetermined price on a future date. These contracts provide [leverage](../l/leverage.md), allowing traders to control large positions with relatively small [capital](../c/capital.md). However, they also carry risks, as the [leverage](../l/leverage.md) can amplify both gains and losses. +USDX [futures contracts](../f/futures_contracts.md) are standardized agreements to buy or sell a specified amount of the U.S. Dollar [Index](../i/index_instrument.md) at a predetermined price on a future date. These contracts provide [leverage](../l/leverage.md), allowing traders to control large positions with relatively small [capital](../c/capital.md). However, they also carry risks, as the [leverage](../l/leverage.md) can amplify both gains and losses. ### ETFs and ETNs -[Exchange](../e/exchange.md)-traded funds (ETFs) and [exchange](../e/exchange.md)-traded notes (ETNs) that track the U.S. Dollar [Index](../i/index.md) provide a convenient way for investors to [gain](../g/gain.md) exposure to the [index](../i/index.md) without trading [futures](../f/futures.md). These financial products are traded on major stock exchanges and can be bought and sold like [stocks](../s/stock.md). Examples include the Invesco DB US Dollar [Index](../i/index.md) Bullish [Fund](../f/fund.md) (UUP) and the WisdomTree [Bloomberg](../b/bloomberg.md) U.S. Dollar Bullish [Fund](../f/fund.md) (USDU). +[Exchange](../e/exchange.md)-traded funds (ETFs) and [exchange](../e/exchange.md)-traded notes (ETNs) that track the U.S. Dollar [Index](../i/index_instrument.md) provide a convenient way for investors to [gain](../g/gain.md) exposure to the [index](../i/index_instrument.md) without trading [futures](../f/futures.md). These financial products are traded on major stock exchanges and can be bought and sold like [stocks](../s/stock.md). Examples include the Invesco DB US Dollar [Index](../i/index_instrument.md) Bullish [Fund](../f/fund.md) (UUP) and the WisdomTree [Bloomberg](../b/bloomberg.md) U.S. Dollar Bullish [Fund](../f/fund.md) (USDU). ### Options -[Options](../o/options.md) on the U.S. Dollar [Index](../i/index.md) [offer](../o/offer.md) another way to [trade](../t/trade.md) the [index](../i/index.md). These [derivatives](../d/derivatives.md) give the holder the right, but not the obligation, to buy or sell the [index](../i/index.md) at a specific price before a certain date. [Options](../o/options.md) can be used for speculative purposes or to [hedge](../h/hedge.md) other positions. +[Options](../o/options.md) on the U.S. Dollar [Index](../i/index_instrument.md) [offer](../o/offer.md) another way to [trade](../t/trade.md) the [index](../i/index_instrument.md). These [derivatives](../d/derivatives.md) give the holder the right, but not the obligation, to buy or sell the [index](../i/index_instrument.md) at a specific price before a certain date. [Options](../o/options.md) can be used for speculative purposes or to [hedge](../h/hedge.md) other positions. ## Conclusion -The U.S. Dollar [Index](../i/index.md) is a vital tool in the world of [finance](../f/finance.md), providing a snapshot of the dollar's strength relative to a basket of major currencies. While it has its limitations, the USDX remains widely used for benchmarking, hedging, and economic analysis. Traders and investors have various instruments at their disposal to [gain](../g/gain.md) exposure to the USDX, including [futures](../f/futures.md), ETFs, and [options](../o/options.md). Understanding the intricacies of the U.S. Dollar [Index](../i/index.md) can help [market](../m/market.md) participants make informed decisions in the complex and ever-evolving [foreign exchange](../f/foreign_exchange.md) [market](../m/market.md). +The U.S. Dollar [Index](../i/index_instrument.md) is a vital tool in the world of [finance](../f/finance.md), providing a snapshot of the dollar's strength relative to a basket of major currencies. While it has its limitations, the USDX remains widely used for benchmarking, hedging, and economic analysis. Traders and investors have various instruments at their disposal to [gain](../g/gain.md) exposure to the USDX, including [futures](../f/futures.md), ETFs, and [options](../o/options.md). Understanding the intricacies of the U.S. Dollar [Index](../i/index_instrument.md) can help [market](../m/market.md) participants make informed decisions in the complex and ever-evolving [foreign exchange](../f/foreign_exchange.md) [market](../m/market.md). -For more detailed and up-to-date information on the U.S. Dollar [Index](../i/index.md), its methodology, and related trading instruments, you can visit the Intercontinental [Exchange](../e/exchange.md) (ICE) website: [ICE U.S. Dollar Index (DXY)](https://www.theice.com/products/19408/U.S.-Dollar-Index-futures). \ No newline at end of file +For more detailed and up-to-date information on the U.S. Dollar [Index](../i/index_instrument.md), its methodology, and related trading instruments, you can visit the Intercontinental [Exchange](../e/exchange.md) (ICE) website: [ICE U.S. Dollar Index (DXY)](https://www.theice.com/products/19408/U.S.-Dollar-Index-futures). \ No newline at end of file diff --git a/en/pedia/u/u.s._savings_bond_adjustment.md b/en/pedia/u/u.s._savings_bond_adjustment.md index f8533ecf..7a332afe 100644 --- a/en/pedia/u/u.s._savings_bond_adjustment.md +++ b/en/pedia/u/u.s._savings_bond_adjustment.md @@ -14,7 +14,7 @@ Series EE Bonds are considered safe and reliable for investors looking for a pre ### Series I Savings Bonds -Series I Bonds [offer](../o/offer.md) a unique combination of a [fixed interest rate](../f/fixed_interest_rate.md) and a variable [inflation](../i/inflation.md) rate. These bonds are designed to protect the [investor](../i/investor.md)’s [purchasing power](../p/purchasing_power.md) by adjusting the [interest rate](../i/interest_rate.md) semiannually based on changes in the Consumer Price [Index](../i/index.md) for All Urban Consumers (CPI-U). The fixed rate remains the same for the life of the [bond](../b/bond.md), while the [inflation](../i/inflation.md) rate can vary. +Series I Bonds [offer](../o/offer.md) a unique combination of a [fixed interest rate](../f/fixed_interest_rate.md) and a variable [inflation](../i/inflation.md) rate. These bonds are designed to protect the [investor](../i/investor.md)’s [purchasing power](../p/purchasing_power.md) by adjusting the [interest rate](../i/interest_rate.md) semiannually based on changes in the Consumer Price [Index](../i/index_instrument.md) for All Urban Consumers (CPI-U). The fixed rate remains the same for the life of the [bond](../b/bond.md), while the [inflation](../i/inflation.md) rate can vary. ## Adjustment Mechanisms diff --git a/en/pedia/u/u.s._savings_bonds.md b/en/pedia/u/u.s._savings_bonds.md index dd9076ec..9421ef53 100644 --- a/en/pedia/u/u.s._savings_bonds.md +++ b/en/pedia/u/u.s._savings_bonds.md @@ -27,7 +27,7 @@ Series I Bonds are designed to protect your savings from [inflation](../i/inflat #### Key Features -- **[Inflation](../i/inflation.md) Protection**: The [inflation](../i/inflation.md) rate is linked to the Consumer Price [Index](../i/index.md) for All Urban Consumers (CPI-U). +- **[Inflation](../i/inflation.md) Protection**: The [inflation](../i/inflation.md) rate is linked to the Consumer Price [Index](../i/index_instrument.md) for All Urban Consumers (CPI-U). - **Purchase Limits**: You can buy up to $10,000 worth of Series I bonds per calendar year. - **[Redemption](../r/redemption.md)**: They too can be redeemed any time after 12 months, with a penalty if redeemed before 5 years. - **Tax Considerations**: Similar to EE bonds, [interest](../i/interest.md) is subject to [federal income](../f/federal_income.md) tax but exempt from state and local [taxes](../t/taxes.md). They also qualify for possible education tax exclusions. diff --git a/en/pedia/u/u.s._treasury.md b/en/pedia/u/u.s._treasury.md index 5fb00439..64dce0d6 100644 --- a/en/pedia/u/u.s._treasury.md +++ b/en/pedia/u/u.s._treasury.md @@ -57,7 +57,7 @@ Treasury securities are [debt](../d/debt.md) instruments issued by the U.S. Trea - Pay [interest](../i/interest.md) every six months and [return](../r/return.md) [face value](../f/face_value.md) upon [maturity](../m/maturity.md). ### Treasury Inflation-Protected Securities (TIPS) -- [Principal](../p/principal.md) is adjusted based on changes in the Consumer Price [Index](../i/index.md) (CPI). +- [Principal](../p/principal.md) is adjusted based on changes in the Consumer Price [Index](../i/index_instrument.md) (CPI). - Provide protection against [inflation](../i/inflation.md). ### Savings Bonds diff --git a/en/pedia/u/uganda_securities_exchange_(use).md b/en/pedia/u/uganda_securities_exchange_(use).md index d86a0bc3..4966d1b9 100644 --- a/en/pedia/u/uganda_securities_exchange_(use).md +++ b/en/pedia/u/uganda_securities_exchange_(use).md @@ -36,7 +36,7 @@ Equities are the primary type of [security](../s/security.md) traded on the USE. The [exchange](../e/exchange.md) also provides a platform for trading government and corporate bonds. These are [debt](../d/debt.md) securities that pay periodic [interest](../i/interest.md) and [return](../r/return.md) the [principal](../p/principal.md) at [maturity](../m/maturity.md). Bonds are generally considered safer investments compared to equities. ### Index -The Uganda Securities [Exchange](../e/exchange.md) has developed indices to reflect the performance of the [listed](../l/listed.md) securities. One such [index](../i/index.md) is the USE All Share [Index](../i/index.md) (ALSI), which tracks the [market](../m/market.md) capitalisation of all [listed](../l/listed.md) companies. +The Uganda Securities [Exchange](../e/exchange.md) has developed indices to reflect the performance of the [listed](../l/listed.md) securities. One such [index](../i/index_instrument.md) is the USE All Share [Index](../i/index_instrument.md) (ALSI), which tracks the [market](../m/market.md) capitalisation of all [listed](../l/listed.md) companies. ### Derivatives As of now, the USE does not [offer](../o/offer.md) [derivative](../d/derivative.md) products like [futures](../f/futures.md) or [options](../o/options.md). However, plans are in place to integrate these products as the [market](../m/market.md) matures. diff --git a/en/pedia/u/ukrainian_exchange_(ux).md b/en/pedia/u/ukrainian_exchange_(ux).md index ed74a4ac..ae9257c8 100644 --- a/en/pedia/u/ukrainian_exchange_(ux).md +++ b/en/pedia/u/ukrainian_exchange_(ux).md @@ -55,10 +55,10 @@ High-frequency trading (HFT) takes [algorithmic trading](../a/accountability.md) The Ukrainian [Exchange](../e/exchange.md) is known for its key benchmarks, which serve as indicators of [market](../m/market.md) performance. ### UX Index -The UX [Index](../i/index.md) is the flagship [index](../i/index.md) of the Ukrainian [Exchange](../e/exchange.md), comprising the top-performing [stocks](../s/stock.md) [listed](../l/listed.md) on the [exchange](../e/exchange.md). It serves as a barometer for the overall health of the Ukrainian [stock market](../s/stock_market.md). +The UX [Index](../i/index_instrument.md) is the flagship [index](../i/index_instrument.md) of the Ukrainian [Exchange](../e/exchange.md), comprising the top-performing [stocks](../s/stock.md) [listed](../l/listed.md) on the [exchange](../e/exchange.md). It serves as a barometer for the overall health of the Ukrainian [stock market](../s/stock_market.md). ### Sectoral Indices -In addition to the UX [Index](../i/index.md), the [exchange](../e/exchange.md) also features sectoral indices that track the performance of specific sectors, such as banking, [real estate](../r/real_estate.md), and energy. +In addition to the UX [Index](../i/index_instrument.md), the [exchange](../e/exchange.md) also features sectoral indices that track the performance of specific sectors, such as banking, [real estate](../r/real_estate.md), and energy. ## Statistics and Market Performance The UX provides comprehensive statistical data and analytics that help investors make informed decisions. This includes historical data, trading volumes, and [market capitalization](../m/market_capitalization.md) of [listed](../l/listed.md) companies. diff --git a/en/pedia/u/ulcer_index_(ui).md b/en/pedia/u/ulcer_index_(ui).md index 8978489d..5081b29f 100644 --- a/en/pedia/u/ulcer_index_(ui).md +++ b/en/pedia/u/ulcer_index_(ui).md @@ -1,19 +1,19 @@ # Ulcer Index (UI) -The Ulcer [Index](../i/index.md) (UI) is a technical [indicator](../i/indicator.md) used to measure the [risk](../r/risk.md) or downside [volatility](../v/volatility.md) associated with an investment or stock over a specific period of time. Unlike conventional [risk metrics](../r/risk_metrics.md) that focus on both the [upside](../u/upside.md) and downside [volatility](../v/volatility.md), the Ulcer [Index](../i/index.md) zeroes in on [downside risk](../d/downside_risk.md), which is the primary concern for most investors. Created by Peter G. Martin in the 1980s, the Ulcer [Index](../i/index.md) was first introduced in his book "The [Investor](../i/investor.md)'s Guide to Fidelity Funds: Winning Strategies for [Mutual Fund](../m/mutual_fund.md) Investors." +The Ulcer [Index](../i/index_instrument.md) (UI) is a technical [indicator](../i/indicator.md) used to measure the [risk](../r/risk.md) or downside [volatility](../v/volatility.md) associated with an investment or stock over a specific period of time. Unlike conventional [risk metrics](../r/risk_metrics.md) that focus on both the [upside](../u/upside.md) and downside [volatility](../v/volatility.md), the Ulcer [Index](../i/index_instrument.md) zeroes in on [downside risk](../d/downside_risk.md), which is the primary concern for most investors. Created by Peter G. Martin in the 1980s, the Ulcer [Index](../i/index_instrument.md) was first introduced in his book "The [Investor](../i/investor.md)'s Guide to Fidelity Funds: Winning Strategies for [Mutual Fund](../m/mutual_fund.md) Investors." ## Components of Ulcer Index -The Ulcer [Index](../i/index.md) is calculated using the following components: +The Ulcer [Index](../i/index_instrument.md) is calculated using the following components: 1. **High and Low Prices**: The calculation relies on the highest closing price over a period and the closing prices during the period. 2. **Percentage [Drawdown](../d/drawdown.md)**: The percentage drop from any given high price during the period. 3. **Squared [Drawdown](../d/drawdown.md)**: The square of the percentage [drawdown](../d/drawdown.md). 4. **Mean Squared [Drawdown](../d/drawdown.md)**: The arithmetic average of the squared drawdowns. -5. **Square Root**: The final step involves taking the square root of the mean squared [drawdown](../d/drawdown.md) to [yield](../y/yield.md) the Ulcer [Index](../i/index.md). +5. **Square Root**: The final step involves taking the square root of the mean squared [drawdown](../d/drawdown.md) to [yield](../y/yield.md) the Ulcer [Index](../i/index_instrument.md). ## Formula and Calculation -Here is the step-by-step breakdown of how the Ulcer [Index](../i/index.md) is calculated: +Here is the step-by-step breakdown of how the Ulcer [Index](../i/index_instrument.md) is calculated: ### Step 1: Percentage Drawdown @@ -35,51 +35,51 @@ The mean squared [drawdown](../d/drawdown.md) over the specified period \( N \) ### Step 4: Ulcer Index -Finally, the Ulcer [Index](../i/index.md) is the square root of the mean squared [drawdown](../d/drawdown.md): +Finally, the Ulcer [Index](../i/index_instrument.md) is the square root of the mean squared [drawdown](../d/drawdown.md): \[ UI = \sqrt{ \frac{1}{N} \sum_{t=1}^{N} (\text{[Drawdown](../d/drawdown.md)}_t)^2 } \] ## Interpretation - **High UI [Value](../v/value.md)**: Indicates high [downside risk](../d/downside_risk.md) or high [volatility](../v/volatility.md). Higher values suggest that the price has experienced significant declines from its highs, making the investment potentially riskier. -- **Low UI [Value](../v/value.md)**: Suggests lower [downside risk](../d/downside_risk.md). Investments with lower Ulcer [Index](../i/index.md) values are generally more stable and less volatile in terms of downside movements. +- **Low UI [Value](../v/value.md)**: Suggests lower [downside risk](../d/downside_risk.md). Investments with lower Ulcer [Index](../i/index_instrument.md) values are generally more stable and less volatile in terms of downside movements. ## Practical Application ### Risk Management -The Ulcer [Index](../i/index.md) is particularly useful for [risk-averse](../r/risk-averse.md) investors who prioritize [capital preservation](../c/capital_preservation.md) over high returns. By focusing on [downside risk](../d/downside_risk.md), it helps investors identify assets that are less prone to significant price declines. +The Ulcer [Index](../i/index_instrument.md) is particularly useful for [risk-averse](../r/risk-averse.md) investors who prioritize [capital preservation](../c/capital_preservation.md) over high returns. By focusing on [downside risk](../d/downside_risk.md), it helps investors identify assets that are less prone to significant price declines. ### Comparative Analysis -Investors can use the Ulcer [Index](../i/index.md) to compare the [risk profiles](../r/risk_profiles.md) of various investments. For instance, comparing the UI of two different [stocks](../s/stock.md) can reveal which one has historically been more stable. +Investors can use the Ulcer [Index](../i/index_instrument.md) to compare the [risk profiles](../r/risk_profiles.md) of various investments. For instance, comparing the UI of two different [stocks](../s/stock.md) can reveal which one has historically been more stable. ### Portfolio Optimization -In [portfolio management](../p/par.md), the Ulcer [Index](../i/index.md) can serve as a tool to optimize [asset allocation](../a/asset_allocation.md). By balancing securities with varying Ulcer [Index](../i/index.md) values, investors can build more resilient portfolios. +In [portfolio management](../p/par.md), the Ulcer [Index](../i/index_instrument.md) can serve as a tool to optimize [asset allocation](../a/asset_allocation.md). By balancing securities with varying Ulcer [Index](../i/index_instrument.md) values, investors can build more resilient portfolios. ## Limitations -- **Backward-Looking**: The Ulcer [Index](../i/index.md) is based on historical data, which may not always predict future [risk](../r/risk.md) effectively. +- **Backward-Looking**: The Ulcer [Index](../i/index_instrument.md) is based on historical data, which may not always predict future [risk](../r/risk.md) effectively. - **Complexity**: The complicated calculation may deter some investors from using it, especially those who are not familiar with [technical analysis](../t/technical_analysis.md). -- **Focus on [Downside Risk](../d/downside_risk.md) Only**: While useful for conservative investors, the Ulcer [Index](../i/index.md) does not account for [upside](../u/upside.md) [volatility](../v/volatility.md), potentially overlooking investments with high [upside potential](../u/upside_potential_in_trading.md) but moderate [downside risk](../d/downside_risk.md). +- **Focus on [Downside Risk](../d/downside_risk.md) Only**: While useful for conservative investors, the Ulcer [Index](../i/index_instrument.md) does not account for [upside](../u/upside.md) [volatility](../v/volatility.md), potentially overlooking investments with high [upside potential](../u/upside_potential_in_trading.md) but moderate [downside risk](../d/downside_risk.md). ## Comparison with Other Risk Metrics ### Ulcer Index vs. Standard Deviation -[Standard deviation](../s/standard_deviation.md) considers both [upside](../u/upside.md) and downside [volatility](../v/volatility.md). In contrast, the Ulcer [Index](../i/index.md) only focuses on [downside risk](../d/downside_risk.md), making it a more targeted tool for [risk-averse](../r/risk-averse.md) investors. +[Standard deviation](../s/standard_deviation.md) considers both [upside](../u/upside.md) and downside [volatility](../v/volatility.md). In contrast, the Ulcer [Index](../i/index_instrument.md) only focuses on [downside risk](../d/downside_risk.md), making it a more targeted tool for [risk-averse](../r/risk-averse.md) investors. ### Ulcer Index vs. Value at Risk (VaR) -[Value](../v/value.md) at [Risk](../r/risk.md) (VaR) quantifies the potential maximum loss over a given period under normal [market](../m/market.md) conditions. Both metrics focus on [downside risk](../d/downside_risk.md), but VaR is probabilistic and often used for regulatory compliance, while the Ulcer [Index](../i/index.md) offers a simpler approach grounded in historical drawdowns. +[Value](../v/value.md) at [Risk](../r/risk.md) (VaR) quantifies the potential maximum loss over a given period under normal [market](../m/market.md) conditions. Both metrics focus on [downside risk](../d/downside_risk.md), but VaR is probabilistic and often used for regulatory compliance, while the Ulcer [Index](../i/index_instrument.md) offers a simpler approach grounded in historical drawdowns. ### Ulcer Index vs. Maximum Drawdown -Maximum [drawdown](../d/drawdown.md) measures the largest peak-to-[trough](../t/trough.md) decline over a specified period. While the Ulcer [Index](../i/index.md) includes the magnitude and frequency of drawdowns, maximum [drawdown](../d/drawdown.md) captures only the single largest decline. +Maximum [drawdown](../d/drawdown.md) measures the largest peak-to-[trough](../t/trough.md) decline over a specified period. While the Ulcer [Index](../i/index_instrument.md) includes the magnitude and frequency of drawdowns, maximum [drawdown](../d/drawdown.md) captures only the single largest decline. ## Conclusion -The Ulcer [Index](../i/index.md) (UI) is an invaluable tool for assessing [downside risk](../d/downside_risk.md), particularly for [risk-averse](../r/risk-averse.md) investors. By honing in on the severity and frequency of price declines, it offers a nuanced view of an investment's [risk](../r/risk.md) profile, which can be integral for [comparative analysis](../c/comparative_analysis.md) and [portfolio management](../p/par.md). While it has its limitations, particularly being backward-looking and focused solely on [downside risk](../d/downside_risk.md), it serves as a complementary [risk](../r/risk.md) metric to other tools like [standard deviation](../s/standard_deviation.md), VaR, and maximum [drawdown](../d/drawdown.md). +The Ulcer [Index](../i/index_instrument.md) (UI) is an invaluable tool for assessing [downside risk](../d/downside_risk.md), particularly for [risk-averse](../r/risk-averse.md) investors. By honing in on the severity and frequency of price declines, it offers a nuanced view of an investment's [risk](../r/risk.md) profile, which can be integral for [comparative analysis](../c/comparative_analysis.md) and [portfolio management](../p/par.md). While it has its limitations, particularly being backward-looking and focused solely on [downside risk](../d/downside_risk.md), it serves as a complementary [risk](../r/risk.md) metric to other tools like [standard deviation](../s/standard_deviation.md), VaR, and maximum [drawdown](../d/drawdown.md). -For further details, you can refer to the original resources or books authored by Peter Martin that delve deeper into the intricacies and applications of the Ulcer [Index](../i/index.md). \ No newline at end of file +For further details, you can refer to the original resources or books authored by Peter Martin that delve deeper into the intricacies and applications of the Ulcer [Index](../i/index_instrument.md). \ No newline at end of file diff --git a/en/pedia/u/ultimate_oscillator.md b/en/pedia/u/ultimate_oscillator.md index e64a2008..cd29c7dc 100644 --- a/en/pedia/u/ultimate_oscillator.md +++ b/en/pedia/u/ultimate_oscillator.md @@ -56,7 +56,7 @@ The calculation of the Ultimate [Oscillator](../o/oscillator.md) involves severa ### Interpretation of the Ultimate Oscillator -The Ultimate [Oscillator](../o/oscillator.md) ranges between 0 and 100, similar to other oscillators like the RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)). It helps traders identify buying or selling pressure in a [security](../s/security.md). +The Ultimate [Oscillator](../o/oscillator.md) ranges between 0 and 100, similar to other oscillators like the RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)). It helps traders identify buying or selling pressure in a [security](../s/security.md). - **[Overbought](../o/overbought.md) and [Oversold](../o/oversold.md) Conditions**: Generally, a [value](../v/value.md) above 70 is considered [overbought](../o/overbought.md), and a [value](../v/value.md) below 30 is considered [oversold](../o/oversold.md). These conditions usually indicate a potential [reversal](../r/reversal.md) in the price [trend](../t/trend.md). - **Bullish and Bearish Divengences**: [Divergence](../d/divergence.md) occurs when the price of an [asset](../a/asset.md) moves in the opposite direction of the Ultimate [Oscillator](../o/oscillator.md). diff --git a/en/pedia/u/ultra-short_bond_fund.md b/en/pedia/u/ultra-short_bond_fund.md index 523c25c0..ed4093e1 100644 --- a/en/pedia/u/ultra-short_bond_fund.md +++ b/en/pedia/u/ultra-short_bond_fund.md @@ -94,7 +94,7 @@ When selecting an ultra-short [bond fund](../b/bond_fund.md), consider the follo [BlackRock BSBSX](https://www.blackrock.com/us/individual/products/239664/) -4. **SPDR [Bloomberg](../b/bloomberg.md) Barclays 1-3 Month T-Bill ETF (BIL)**: Tracks a [market](../m/market.md)-[weighted](../w/weighted.md) [index](../i/index.md) of [U.S. Treasury](../u/u.s._treasury.md) bills with maturities of one to three months. +4. **SPDR [Bloomberg](../b/bloomberg.md) Barclays 1-3 Month T-Bill ETF (BIL)**: Tracks a [market](../m/market.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md) of [U.S. Treasury](../u/u.s._treasury.md) bills with maturities of one to three months. [SPDR BIL](https://www.ssga.com/us/en/individual/etfs/funds/spdr-bloomberg-barclays-1-3-month-t-bill-etf-bil) diff --git a/en/pedia/u/ultra_etf.md b/en/pedia/u/ultra_etf.md index 0ceb662b..6db52950 100644 --- a/en/pedia/u/ultra_etf.md +++ b/en/pedia/u/ultra_etf.md @@ -1,12 +1,12 @@ # Ultra ETF -[Exchange](../e/exchange.md)-Traded Funds (ETFs) have revolutionized the world of [investing](../i/investing.md), [offering](../o/offering.md) a diverse [range](../r/range.md) of benefits including [diversification](../d/diversification.md), [liquidity](../l/liquidity.md), and lower fees. Among the myriad of ETF varieties that exist today, the Ultra ETFs stand out due to their [leverage](../l/leverage.md) mechanisms which aim for magnified returns relative to the performance of a specific [underlying](../u/underlying.md) [index](../i/index.md), [commodity](../c/commodity.md), or [asset class](../a/asset_class.md). +[Exchange](../e/exchange.md)-Traded Funds (ETFs) have revolutionized the world of [investing](../i/investing.md), [offering](../o/offering.md) a diverse [range](../r/range.md) of benefits including [diversification](../d/diversification.md), [liquidity](../l/liquidity.md), and lower fees. Among the myriad of ETF varieties that exist today, the Ultra ETFs stand out due to their [leverage](../l/leverage.md) mechanisms which aim for magnified returns relative to the performance of a specific [underlying](../u/underlying.md) [index](../i/index_instrument.md), [commodity](../c/commodity.md), or [asset class](../a/asset_class.md). ## What Are Ultra ETFs? -Ultra ETFs are a subclass of [leveraged ETFs](../l/leveraged_etfs.md). Unlike conventional ETFs, which aim to replicate the performance of an [underlying](../u/underlying.md) [index](../i/index.md), Ultra ETFs use [financial derivatives](../f/financial_derivatives.md) and [debt](../d/debt.md) to amplify the returns of that [index](../i/index.md). Typically, these funds aim to deliver two or three times (2x or 3x) the daily or monthly performance of their respective benchmarks. +Ultra ETFs are a subclass of [leveraged ETFs](../l/leveraged_etfs.md). Unlike conventional ETFs, which aim to replicate the performance of an [underlying](../u/underlying.md) [index](../i/index_instrument.md), Ultra ETFs use [financial derivatives](../f/financial_derivatives.md) and [debt](../d/debt.md) to amplify the returns of that [index](../i/index_instrument.md). Typically, these funds aim to deliver two or three times (2x or 3x) the daily or monthly performance of their respective benchmarks. -For example, if the S&P 500 [index](../i/index.md) rises by 1% in a day, a 2x Ultra S&P 500 ETF would aim to increase by 2%, and a 3x Ultra S&P 500 ETF would aim to increase by 3%. +For example, if the S&P 500 [index](../i/index_instrument.md) rises by 1% in a day, a 2x Ultra S&P 500 ETF would aim to increase by 2%, and a 3x Ultra S&P 500 ETF would aim to increase by 3%. ## Structure and Mechanism @@ -18,7 +18,7 @@ For example, if the S&P 500 [index](../i/index.md) rises by 1% in a day, a 2x Ul - **[Options](../o/options.md):** Contracts giving the right, but not the obligation, to buy or sell an [asset](../a/asset.md) at a predetermined price and date. - **[Futures Contracts](../f/futures_contracts.md):** Agreements to buy or sell an [asset](../a/asset.md) at a future date and price. -By employing these instruments, Ultra ETFs can multiply the exposure to their reference [index](../i/index.md) with an aim of achieving magnified returns. +By employing these instruments, Ultra ETFs can multiply the exposure to their reference [index](../i/index_instrument.md) with an aim of achieving magnified returns. ### Daily Reset @@ -50,7 +50,7 @@ The amplified returns that can benefit investors during bullish phases can equal ### Compounding Risk -Due to daily [rebalancing](../r/rebalancing.md), the [compounding](../c/compounding.md) effect can result in returns that differ significantly from the target [index](../i/index.md) over an extended period. This can be particularly detrimental in volatile markets where the direction of the portfolio can swing dramatically. +Due to daily [rebalancing](../r/rebalancing.md), the [compounding](../c/compounding.md) effect can result in returns that differ significantly from the target [index](../i/index_instrument.md) over an extended period. This can be particularly detrimental in volatile markets where the direction of the portfolio can swing dramatically. ### Costs @@ -67,15 +67,15 @@ The complexity and frequent trading activity required to maintain [leverage](../ - [ProShares](https://www.proshares.com/) 2. **Direxion Daily Financial [Bull](../b/bull.md) 3X [Shares](../s/shares.md) (FAS)**: - - This ETF aims to provide 3x the daily performance of the Russell 1000 Financial Services [Index](../i/index.md). + - This ETF aims to provide 3x the daily performance of the Russell 1000 Financial Services [Index](../i/index_instrument.md). - [Direxion](https://www.direxion.com/) 3. **ProShares Ultra QQQ (QLD)**: - - This ETF seeks to deliver 2x the daily performance of the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md). + - This ETF seeks to deliver 2x the daily performance of the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md). - [ProShares](https://www.proshares.com/) -4. **Direxion Daily Gold Miners [Index](../i/index.md) [Bull](../b/bull.md) 3X [Shares](../s/shares.md) (NUGT)**: - - This ETF seeks to provide 3x the daily performance of the [NYSE Arca](../n/nyse_arca.md) Gold Miners [Index](../i/index.md). +4. **Direxion Daily Gold Miners [Index](../i/index_instrument.md) [Bull](../b/bull.md) 3X [Shares](../s/shares.md) (NUGT)**: + - This ETF seeks to provide 3x the daily performance of the [NYSE Arca](../n/nyse_arca.md) Gold Miners [Index](../i/index_instrument.md). - [Direxion](https://www.direxion.com/) ## Regulatory and Ethical Considerations diff --git a/en/pedia/u/unaffiliated_investments.md b/en/pedia/u/unaffiliated_investments.md index 0e82f1d3..81d6592b 100644 --- a/en/pedia/u/unaffiliated_investments.md +++ b/en/pedia/u/unaffiliated_investments.md @@ -34,7 +34,7 @@ Dollar-cost averaging involves consistently [investing](../i/investing.md) a fix Conversely, [growth investing](../g/growth_investing.md) targets companies expected to grow at an above-average rate compared to other firms. These investments can be more volatile but [offer](../o/offer.md) potentially higher returns. ### Indexing -[Indexing](../i/indexing.md) involves [investing](../i/investing.md) in [index](../i/index.md) funds or ETFs that replicate the performance of a particular [market index](../m/market_index.md). This passive [investment strategy](../i/investment_strategy.md) aims to achieve [market](../m/market.md)-average returns and is often associated with lower fees and expenses. +[Indexing](../i/indexing.md) involves [investing](../i/investing.md) in [index](../i/index_instrument.md) funds or ETFs that replicate the performance of a particular [market index](../m/market_index.md). This passive [investment strategy](../i/investment_strategy.md) aims to achieve [market](../m/market.md)-average returns and is often associated with lower fees and expenses. ### Algorithmic Trading [Algorithmic trading](../a/accountability.md) uses computer algorithms to execute trades automatically based on predefined criteria. This strategy can be particularly effective in fast-paced markets, [offering](../o/offering.md) the potential for high-frequency trading and minimizing the impact of human error. diff --git a/en/pedia/u/uncertainty_in_trading.md b/en/pedia/u/uncertainty_in_trading.md index cc15efb2..4fc55521 100644 --- a/en/pedia/u/uncertainty_in_trading.md +++ b/en/pedia/u/uncertainty_in_trading.md @@ -30,7 +30,7 @@ Uncertainty is a fundamental aspect of [financial markets](../f/financial_market ## Measuring Uncertainty -1. **[Volatility](../v/volatility.md)**: One of the primary metrics used to quantify uncertainty in trading. [Historical volatility](../h/historical_volatility.md) measures past [market](../m/market.md) movements, whereas implied [volatility](../v/volatility.md) gauges [market](../m/market.md) expectations of future [volatility](../v/volatility.md). Instruments like the VIX [index](../i/index.md) are often used to measure [market](../m/market.md) [volatility](../v/volatility.md). +1. **[Volatility](../v/volatility.md)**: One of the primary metrics used to quantify uncertainty in trading. [Historical volatility](../h/historical_volatility.md) measures past [market](../m/market.md) movements, whereas implied [volatility](../v/volatility.md) gauges [market](../m/market.md) expectations of future [volatility](../v/volatility.md). Instruments like the VIX [index](../i/index_instrument.md) are often used to measure [market](../m/market.md) [volatility](../v/volatility.md). 2. **[Value](../v/value.md) at [Risk](../r/risk.md) (VaR)**: VaR estimates the potential loss in [value](../v/value.md) of a portfolio over a defined period for a given [confidence interval](../c/confidence_interval.md). It is a widely used [risk](../r/risk.md) measure but has limitations, especially during extreme [market](../m/market.md) turmoil. diff --git a/en/pedia/u/unconstrained_investing.md b/en/pedia/u/unconstrained_investing.md index d0cc67c5..0b44371b 100644 --- a/en/pedia/u/unconstrained_investing.md +++ b/en/pedia/u/unconstrained_investing.md @@ -1,10 +1,10 @@ # Unconstrained Investing -Unconstrained [investing](../i/investing.md) is a relatively modern [investment strategy](../i/investment_strategy.md) that breaks away from traditional, [benchmark](../b/benchmark.md)-linked [investing](../i/investing.md) methods. In essence, it provides [fund](../f/fund.md) managers the freedom to invest across a wide array of [asset](../a/asset.md) classes, sectors, and geographies without being tied to a specific [benchmark](../b/benchmark.md) [index](../i/index.md). The goal of unconstrained [investing](../i/investing.md) is to maximize total returns, regardless of [market](../m/market.md) conditions. +Unconstrained [investing](../i/investing.md) is a relatively modern [investment strategy](../i/investment_strategy.md) that breaks away from traditional, [benchmark](../b/benchmark.md)-linked [investing](../i/investing.md) methods. In essence, it provides [fund](../f/fund.md) managers the freedom to invest across a wide array of [asset](../a/asset.md) classes, sectors, and geographies without being tied to a specific [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). The goal of unconstrained [investing](../i/investing.md) is to maximize total returns, regardless of [market](../m/market.md) conditions. ## Overview -The traditional investment strategies tend to adhere to specific benchmarks or indices, which can limit the opportunities for portfolio managers to exploit [market](../m/market.md) inefficiencies. Unconstrained [investing](../i/investing.md), on the other hand, allows [fund](../f/fund.md) managers to utilize a variety of financial instruments and investment sectors to seek higher returns. This strategy involves a broad, flexible approach to [asset allocation](../a/asset_allocation.md) and portfolio construction, which means that managers are not compelled to [hold](../h/hold.md) a particular set of assets merely because they are part of an [index](../i/index.md). +The traditional investment strategies tend to adhere to specific benchmarks or indices, which can limit the opportunities for portfolio managers to exploit [market](../m/market.md) inefficiencies. Unconstrained [investing](../i/investing.md), on the other hand, allows [fund](../f/fund.md) managers to utilize a variety of financial instruments and investment sectors to seek higher returns. This strategy involves a broad, flexible approach to [asset allocation](../a/asset_allocation.md) and portfolio construction, which means that managers are not compelled to [hold](../h/hold.md) a particular set of assets merely because they are part of an [index](../i/index_instrument.md). ## Key Characteristics of Unconstrained Investing @@ -16,7 +16,7 @@ The traditional investment strategies tend to adhere to specific benchmarks or i 4. **Long-term Focus:** The strategy often emphasizes long-term investment horizons over short-term gains, making it suitable for institutional investors, endowments, and pension funds looking to achieve sustainable returns over time. -5. **[Active Management](../a/active_management.md):** Unlike [passive investment strategies](../p/passive_investment_strategies.md) that track an [index](../i/index.md), unconstrained [investing](../i/investing.md) relies heavily on [active portfolio management](../a/active_portfolio_management.md). This requires a highly skilled management team capable of identifying [market](../m/market.md) trends, pricing inefficiencies, and potential investment opportunities. +5. **[Active Management](../a/active_management.md):** Unlike [passive investment strategies](../p/passive_investment_strategies.md) that track an [index](../i/index_instrument.md), unconstrained [investing](../i/investing.md) relies heavily on [active portfolio management](../a/active_portfolio_management.md). This requires a highly skilled management team capable of identifying [market](../m/market.md) trends, pricing inefficiencies, and potential investment opportunities. ## Benefits of Unconstrained Investing diff --git a/en/pedia/u/uncovered_put_writing.md b/en/pedia/u/uncovered_put_writing.md index 7a2b0b62..2addf743 100644 --- a/en/pedia/u/uncovered_put_writing.md +++ b/en/pedia/u/uncovered_put_writing.md @@ -47,7 +47,7 @@ Optimizing the uncovered put writing strategy involves fine-tuning various eleme ### Case Study: Application in a Hypothetical Algorithm -**Objective:** Implement a strategy to write uncovered [put options](../p/put_options.md) on S&P 500 [index](../i/index.md) [stocks](../s/stock.md), aiming for monthly [premium](../p/premium.md) [income](../i/income.md). +**Objective:** Implement a strategy to write uncovered [put options](../p/put_options.md) on S&P 500 [index](../i/index_instrument.md) [stocks](../s/stock.md), aiming for monthly [premium](../p/premium.md) [income](../i/income.md). #### Steps: 1. **Data Gathering:** Collect historical price and [volatility](../v/volatility.md) data for S&P 500 [stocks](../s/stock.md) from a reliable data provider. diff --git a/en/pedia/u/underlying.md b/en/pedia/u/underlying.md index a4d48d46..b5ed0c65 100644 --- a/en/pedia/u/underlying.md +++ b/en/pedia/u/underlying.md @@ -1,6 +1,6 @@ # Underlying -In the context of trading and [finance](../f/finance.md), the term "underlying" refers to the fundamental [asset](../a/asset.md) upon which a [derivative](../d/derivative.md)'s price is based. [Derivatives](../d/derivatives.md) are financial instruments whose [value](../v/value.md) is derived from the [value](../v/value.md) of another [asset](../a/asset.md), known as the "[underlying asset](../u/underlying_asset.md)." Examples of [derivatives](../d/derivatives.md) include [options](../o/options.md), [futures](../f/futures.md), swaps, and other similar financial instruments. The [underlying asset](../u/underlying_asset.md) can be a stock, [bond](../b/bond.md), [commodity](../c/commodity.md), [currency](../c/currency.md), [index](../i/index.md), or even an [interest rate](../i/interest_rate.md). +In the context of trading and [finance](../f/finance.md), the term "underlying" refers to the fundamental [asset](../a/asset.md) upon which a [derivative](../d/derivative.md)'s price is based. [Derivatives](../d/derivatives.md) are financial instruments whose [value](../v/value.md) is derived from the [value](../v/value.md) of another [asset](../a/asset.md), known as the "[underlying asset](../u/underlying_asset.md)." Examples of [derivatives](../d/derivatives.md) include [options](../o/options.md), [futures](../f/futures.md), swaps, and other similar financial instruments. The [underlying asset](../u/underlying_asset.md) can be a stock, [bond](../b/bond.md), [commodity](../c/commodity.md), [currency](../c/currency.md), [index](../i/index_instrument.md), or even an [interest rate](../i/interest_rate.md). The concept of the [underlying asset](../u/underlying_asset.md) is crucial for understanding how [derivatives](../d/derivatives.md) work and are priced. The performance or price movements of the [underlying asset](../u/underlying_asset.md) [will](../w/will.md) directly impact the [value](../v/value.md) of the [derivative](../d/derivative.md). For example, if you [hold](../h/hold.md) an option contract, the [value](../v/value.md) of that option [will](../w/will.md) fluctuate based on the price movements of the stock that underlies the option. @@ -19,7 +19,7 @@ Commodities such as gold, oil, and agricultural products frequently serve as und [Foreign exchange derivatives](../f/foreign_exchange_derivatives.md) include [options](../o/options.md) and [futures](../f/futures.md) based on [currency](../c/currency.md) pairs like the EUR/USD or JPY/USD. These [currency](../c/currency.md) pairs are the underlying assets, and their price movements [will](../w/will.md) affect the [value](../v/value.md) of the [derivatives](../d/derivatives.md). ### 5. Indices -A variety of financial indices serve as underlying assets for [index options](../i/index_options.md) and [futures](../f/futures.md). For example, the S&P 500 [Index](../i/index.md) is a widely used [underlying asset](../u/underlying_asset.md) for [options](../o/options.md) and [futures contracts](../f/futures_contracts.md). These [derivatives](../d/derivatives.md) allow traders to [gain](../g/gain.md) exposure to the overall performance of the [market](../m/market.md) rather than individual [stocks](../s/stock.md). +A variety of financial indices serve as underlying assets for [index options](../i/index_options.md) and [futures](../f/futures.md). For example, the S&P 500 [Index](../i/index_instrument.md) is a widely used [underlying asset](../u/underlying_asset.md) for [options](../o/options.md) and [futures contracts](../f/futures_contracts.md). These [derivatives](../d/derivatives.md) allow traders to [gain](../g/gain.md) exposure to the overall performance of the [market](../m/market.md) rather than individual [stocks](../s/stock.md). ### 6. Interest Rates [Interest rate derivatives](../i/interest_rate_derivatives.md), such as swaps and [options](../o/options.md), are based on underlying assets like [government bond](../g/government_bond.md) yields or LIBOR (London Interbank Offered Rate). These instruments are used to manage exposure to [interest rate](../i/interest_rate.md) fluctuations. diff --git a/en/pedia/u/underlying_asset_analysis.md b/en/pedia/u/underlying_asset_analysis.md index 2e9f7efe..f631d7e7 100644 --- a/en/pedia/u/underlying_asset_analysis.md +++ b/en/pedia/u/underlying_asset_analysis.md @@ -51,7 +51,7 @@ Forex ([foreign exchange](../f/foreign_exchange.md)) [derivatives](../d/derivati [Market](../m/market.md) indexes like the S&P 500 or the [Nikkei](../n/nikkei.md) 225 aggregate the performance of a specific collection of [stocks](../s/stock.md). [Derivatives](../d/derivatives.md) based on these indexes allow traders and investors to [gain](../g/gain.md) broad exposure to a [market](../m/market.md) sector without buying individual [stocks](../s/stock.md). -**Example [Index](../i/index.md) Providers:** +**Example [Index](../i/index_instrument.md) Providers:** - [S&P Dow Jones Indices](https://www.spglobal.com/spdji/en/) - [Nikkei Inc.](https://www.nikkei.co.jp/nikkeiinfo/en/) diff --git a/en/pedia/u/underlying_asset_insights.md b/en/pedia/u/underlying_asset_insights.md index ba98055b..cae0aaaa 100644 --- a/en/pedia/u/underlying_asset_insights.md +++ b/en/pedia/u/underlying_asset_insights.md @@ -51,7 +51,7 @@ Valuing [underlying](../u/underlying.md) assets accurately is fundamental for th - **[Interest Rate Parity](../i/interest_rate_parity.md)**: This principle reflects the relationship between [interest](../i/interest.md) rates and [exchange](../e/exchange.md) rates of two countries. ### 5. **Index Valuation** -- **[Weighted Average](../w/weighted_average.md)**: [Index](../i/index.md) values are typically calculated based on the [weighted average](../w/weighted_average.md) of the prices of the constituent [stocks](../s/stock.md). +- **[Weighted Average](../w/weighted_average.md)**: [Index](../i/index_instrument.md) values are typically calculated based on the [weighted average](../w/weighted_average.md) of the prices of the constituent [stocks](../s/stock.md). ## Role of Underlying Assets in Algorithmic Trading diff --git a/en/pedia/u/underlying_asset_valuation.md b/en/pedia/u/underlying_asset_valuation.md index 6239f0aa..acffe7b9 100644 --- a/en/pedia/u/underlying_asset_valuation.md +++ b/en/pedia/u/underlying_asset_valuation.md @@ -27,7 +27,7 @@ Key aspects of [fundamental analysis](../f/fundamental_analysis.md) include: Key tools used in [technical analysis](../t/technical_analysis.md) include: - **Price Charts:** Line charts, bar charts, and [candlestick](../c/candlestick.md) charts that display historical price movements. -- **Indicators:** Moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), moving average convergence [divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_bands.md) to identify trends and potential reversals. +- **Indicators:** Moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), moving average convergence [divergence](../d/divergence.md) (MACD), and [Bollinger Bands](../b/bollinger_bands.md) to identify trends and potential reversals. - **Patterns:** Head and shoulders, double tops and bottoms, and trendlines to forecast future price movements. ### 3. Quantitative Analysis diff --git a/en/pedia/u/underlying_index_analysis.md b/en/pedia/u/underlying_index_analysis.md index ea3e50ee..200570f8 100644 --- a/en/pedia/u/underlying_index_analysis.md +++ b/en/pedia/u/underlying_index_analysis.md @@ -1,16 +1,16 @@ # Underlying Index Analysis -In the world of [finance](../f/finance.md) and investment, the analysis of [underlying](../u/underlying.md) indices is an essential aspect of making informed trading and investment decisions. An [underlying](../u/underlying.md) [index](../i/index.md) typically refers to a [benchmark](../b/benchmark.md) or a statistical measure that represents the price performance of a group of [stocks](../s/stock.md) or other securities. This analysis can provide critical insights into the [market](../m/market.md) trends, [sector performance](../s/sector_performance.md), and can help in creating and managing investment portfolios. +In the world of [finance](../f/finance.md) and investment, the analysis of [underlying](../u/underlying.md) indices is an essential aspect of making informed trading and investment decisions. An [underlying](../u/underlying.md) [index](../i/index_instrument.md) typically refers to a [benchmark](../b/benchmark.md) or a statistical measure that represents the price performance of a group of [stocks](../s/stock.md) or other securities. This analysis can provide critical insights into the [market](../m/market.md) trends, [sector performance](../s/sector_performance.md), and can help in creating and managing investment portfolios. ## Importance of Underlying Index Analysis ### Benchmark Creation -[Underlying](../u/underlying.md) indices form the [basis](../b/basis.md) of many financial instruments such as mutual funds, [exchange](../e/exchange.md)-traded funds (ETFs), [index](../i/index.md) funds, and [index options](../i/index_options.md). By tracking the performance of these indices, investors can gauge the overall health of a particular [market segment](../m/market_segment.md) or the entire [market](../m/market.md). +[Underlying](../u/underlying.md) indices form the [basis](../b/basis.md) of many financial instruments such as mutual funds, [exchange](../e/exchange.md)-traded funds (ETFs), [index](../i/index_instrument.md) funds, and [index options](../i/index_options.md). By tracking the performance of these indices, investors can gauge the overall health of a particular [market segment](../m/market_segment.md) or the entire [market](../m/market.md). ### Market Sentiment -Investors use [underlying](../u/underlying.md) [index](../i/index.md) analysis to understand the current [market sentiment](../m/market_sentiment.md). Indices such as the S&P 500 or the [NASDAQ](../n/nasdaq.md) Composite reflect the collective performance of their constituent [stocks](../s/stock.md), [offering](../o/offering.md) a snapshot of [market](../m/market.md) trends and [investor](../i/investor.md) confidence. +Investors use [underlying](../u/underlying.md) [index](../i/index_instrument.md) analysis to understand the current [market sentiment](../m/market_sentiment.md). Indices such as the S&P 500 or the [NASDAQ](../n/nasdaq.md) Composite reflect the collective performance of their constituent [stocks](../s/stock.md), [offering](../o/offering.md) a snapshot of [market](../m/market.md) trends and [investor](../i/investor.md) confidence. ### Risk Management @@ -20,15 +20,15 @@ Analyzing the [underlying](../u/underlying.md) indices helps in identifying the ### Price Performance -The price performance of an [index](../i/index.md) is calculated based on the [weighted average](../w/weighted_average.md) prices of its constituent [stocks](../s/stock.md). Analysts study the historical price data to identify trends, patterns, and potential turning points in the [market](../m/market.md). +The price performance of an [index](../i/index_instrument.md) is calculated based on the [weighted average](../w/weighted_average.md) prices of its constituent [stocks](../s/stock.md). Analysts study the historical price data to identify trends, patterns, and potential turning points in the [market](../m/market.md). ### Volatility -[Volatility](../v/volatility.md) measures the extent of [variability](../v/variability.md) in an [index](../i/index.md)'s price. High [volatility](../v/volatility.md) indicates significant price swings, which can be both an opportunity and a [risk](../r/risk.md) for traders and investors. The [standard deviation](../s/standard_deviation.md) is often used to measure [volatility](../v/volatility.md). +[Volatility](../v/volatility.md) measures the extent of [variability](../v/variability.md) in an [index](../i/index_instrument.md)'s price. High [volatility](../v/volatility.md) indicates significant price swings, which can be both an opportunity and a [risk](../r/risk.md) for traders and investors. The [standard deviation](../s/standard_deviation.md) is often used to measure [volatility](../v/volatility.md). ### Earnings Reports -The performance of indices can be influenced by the earning reports of constituent companies. Analysts assess these reports to gauge the [financial health](../f/financial_health.md) and growth prospects of companies within an [index](../i/index.md). +The performance of indices can be influenced by the earning reports of constituent companies. Analysts assess these reports to gauge the [financial health](../f/financial_health.md) and growth prospects of companies within an [index](../i/index_instrument.md). ### Economic Indicators @@ -38,15 +38,15 @@ The performance of indices can be influenced by the earning reports of constitue ### Fundamental Analysis -This involves evaluating the [underlying](../u/underlying.md) economic and financial factors that affect the performance of [index](../i/index.md) constituents. It includes studying [financial statements](../f/financial_statements.md), management performance, [market](../m/market.md) conditions, and macroeconomic indicators. +This involves evaluating the [underlying](../u/underlying.md) economic and financial factors that affect the performance of [index](../i/index_instrument.md) constituents. It includes studying [financial statements](../f/financial_statements.md), management performance, [market](../m/market.md) conditions, and macroeconomic indicators. ### Technical Analysis -[Technical analysis](../t/technical_analysis.md) focuses on the statistical trends gathered from trading activity, such as price movement and [volume](../v/volume.md). Tools like moving averages, [Bollinger bands](../b/bollinger_bands.md), and [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI) are used to identify trends and potential price reversals. +[Technical analysis](../t/technical_analysis.md) focuses on the statistical trends gathered from trading activity, such as price movement and [volume](../v/volume.md). Tools like moving averages, [Bollinger bands](../b/bollinger_bands.md), and [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI) are used to identify trends and potential price reversals. ### Quantitative Analysis -[Quantitative analysis](../q/quantitative_analysis.md) leverages [mathematical models](../m/mathematical_models_in_trading.md) and algorithms to predict future performance. This technique is heavily used in [algorithmic trading](../a/algorithmic_trading.md), where traders write algorithms to execute trades based on [index](../i/index.md) performance. +[Quantitative analysis](../q/quantitative_analysis.md) leverages [mathematical models](../m/mathematical_models_in_trading.md) and algorithms to predict future performance. This technique is heavily used in [algorithmic trading](../a/algorithmic_trading.md), where traders write algorithms to execute trades based on [index](../i/index_instrument.md) performance. ## Key Index Providers @@ -66,7 +66,7 @@ MSCI Inc. offers a wide [range](../r/range.md) of indices including the MSCI Wor ### Bloomberg Terminal -A comprehensive platform [offering](../o/offering.md) real-time data, news, and analytics on [financial markets](../f/financial_market.md). It is widely used for in-depth [index](../i/index.md) analysis. +A comprehensive platform [offering](../o/offering.md) real-time data, news, and analytics on [financial markets](../f/financial_market.md). It is widely used for in-depth [index](../i/index_instrument.md) analysis. ### Thomson Reuters Eikon @@ -82,15 +82,15 @@ This tool provides access to extensive financial data and analytics features, in ### Index Arbitrage -This form of trading capitalizes on the price differentials between an [index](../i/index.md) and its constituent [stocks](../s/stock.md). Algorithms are used to exploit these inefficiencies for [profit](../p/profit.md). +This form of trading capitalizes on the price differentials between an [index](../i/index_instrument.md) and its constituent [stocks](../s/stock.md). Algorithms are used to exploit these inefficiencies for [profit](../p/profit.md). ### Basket Trading -Investment strategies often involve trading a basket of [stocks](../s/stock.md) that mirrors an [underlying](../u/underlying.md) [index](../i/index.md). Algorithms can be programmed to buy or sell the entire basket, providing a [hedge](../h/hedge.md) against [market](../m/market.md) movements. +Investment strategies often involve trading a basket of [stocks](../s/stock.md) that mirrors an [underlying](../u/underlying.md) [index](../i/index_instrument.md). Algorithms can be programmed to buy or sell the entire basket, providing a [hedge](../h/hedge.md) against [market](../m/market.md) movements. ### Trend Following -Algorithmic traders can develop strategies based on the trends identified through [index](../i/index.md) analysis. For example, if an [index](../i/index.md) is trending upwards, algorithms can be set to follow this [trend](../t/trend.md) by going long on constituent [stocks](../s/stock.md). +Algorithmic traders can develop strategies based on the trends identified through [index](../i/index_instrument.md) analysis. For example, if an [index](../i/index_instrument.md) is trending upwards, algorithms can be set to follow this [trend](../t/trend.md) by going long on constituent [stocks](../s/stock.md). ## Challenges in Underlying Index Analysis @@ -104,8 +104,8 @@ Indices can sometimes be influenced by [market anomalies](../m/market_anomalies. ### High Frequency Trading (HFT) -HFT can introduce significant [volatility](../v/volatility.md) in the markets, making it difficult to analyze [index](../i/index.md) performance accurately in shorter time frames. +HFT can introduce significant [volatility](../v/volatility.md) in the markets, making it difficult to analyze [index](../i/index_instrument.md) performance accurately in shorter time frames. ## Conclusion -[Underlying](../u/underlying.md) [index](../i/index.md) analysis is a multifaceted discipline involving various techniques and tools to comprehend and predict [market](../m/market.md) movements. It is integral for creating investment strategies, managing [risk](../r/risk.md), and understanding [market sentiment](../m/market_sentiment.md). Whether you are a long-term [investor](../i/investor.md), a [portfolio manager](../p/portfolio_manager.md), or an algorithmic [trader](../t/trader.md), mastering the intricacies of [index](../i/index.md) analysis can equip you with the insights needed to make informed financial decisions. +[Underlying](../u/underlying.md) [index](../i/index_instrument.md) analysis is a multifaceted discipline involving various techniques and tools to comprehend and predict [market](../m/market.md) movements. It is integral for creating investment strategies, managing [risk](../r/risk.md), and understanding [market sentiment](../m/market_sentiment.md). Whether you are a long-term [investor](../i/investor.md), a [portfolio manager](../p/portfolio_manager.md), or an algorithmic [trader](../t/trader.md), mastering the intricacies of [index](../i/index_instrument.md) analysis can equip you with the insights needed to make informed financial decisions. diff --git a/en/pedia/u/underlying_option_security.md b/en/pedia/u/underlying_option_security.md index bb529726..125d603b 100644 --- a/en/pedia/u/underlying_option_security.md +++ b/en/pedia/u/underlying_option_security.md @@ -18,7 +18,7 @@ There are primarily two types of [options](../o/options.md): Equities or [stocks](../s/stock.md) are the most prevalent [underlying](../u/underlying.md) option securities. [Options](../o/options.md) on individual [stocks](../s/stock.md) allow traders to speculate on the future price movements of specific companies. For example, a [call option](../c/call_option.md) on Apple Inc. (AAPL) allows the holder to purchase AAPL [shares](../s/shares.md) at a [strike price](../s/strike_price.md) within a defined period. ### 2. **Indices** -An [index](../i/index.md) is a statistical measure that reflects the composite [value](../v/value.md) of a selected group of [stocks](../s/stock.md). [Options](../o/options.md) on indices, such as the S&P 500 (SPX) or the [NASDAQ](../n/nasdaq.md)-100 (NDX), permit traders to [gain](../g/gain.md) exposure to a broader [market](../m/market.md) or [industry](../i/industry.md) [sector performance](../s/sector_performance.md). +An [index](../i/index_instrument.md) is a statistical measure that reflects the composite [value](../v/value.md) of a selected group of [stocks](../s/stock.md). [Options](../o/options.md) on indices, such as the S&P 500 (SPX) or the [NASDAQ](../n/nasdaq.md)-100 (NDX), permit traders to [gain](../g/gain.md) exposure to a broader [market](../m/market.md) or [industry](../i/industry.md) [sector performance](../s/sector_performance.md). ### 3. **Exchange-Traded Funds (ETFs)** ETFs are investment funds traded on stock exchanges. They [hold](../h/hold.md) assets such as [stocks](../s/stock.md), commodities, or bonds and generally operate with an [arbitrage](../a/arbitrage.md) mechanism designed to keep trading close to its net [asset](../a/asset.md) [value](../v/value.md). [Options](../o/options.md) on ETFs, like the SPDR S&P 500 ETF (SPY), provide a way to [trade](../t/trade.md) broad [market](../m/market.md) indices or specific sectors. @@ -97,7 +97,7 @@ Intermediaries that facilitate the trading of [options](../o/options.md) between ## Real-World Example: The VIX Index -An illustrative example of [underlying](../u/underlying.md) option [security](../s/security.md) is [options](../o/options.md) based on the Cboe [Volatility](../v/volatility.md) [Index](../i/index.md) (VIX), often referred to as the "fear gauge." The VIX measures [market](../m/market.md) expectations of near-term [volatility](../v/volatility.md) conveyed by S&P 500 stock [index option](../i/index_option.md) prices. When trading [VIX options](../v/vix_option.md), the [underlying security](../u/underlying_security.md) is the VIX [index](../i/index.md) itself, a [benchmark](../b/benchmark.md) for [market](../m/market.md) [volatility](../v/volatility.md). +An illustrative example of [underlying](../u/underlying.md) option [security](../s/security.md) is [options](../o/options.md) based on the Cboe [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX), often referred to as the "fear gauge." The VIX measures [market](../m/market.md) expectations of near-term [volatility](../v/volatility.md) conveyed by S&P 500 stock [index option](../i/index_option.md) prices. When trading [VIX options](../v/vix_option.md), the [underlying security](../u/underlying_security.md) is the VIX [index](../i/index_instrument.md) itself, a [benchmark](../b/benchmark.md) for [market](../m/market.md) [volatility](../v/volatility.md). ## Conclusion diff --git a/en/pedia/u/underlying_price_analysis.md b/en/pedia/u/underlying_price_analysis.md index 144e7916..ca871ce1 100644 --- a/en/pedia/u/underlying_price_analysis.md +++ b/en/pedia/u/underlying_price_analysis.md @@ -27,7 +27,7 @@ The `[underlying asset](../u/underlying_asset.md)` is the [financial asset](../f [Technical analysis](../t/technical_analysis.md) focuses on statistical analysis of [market](../m/market.md) activity, such as price movement and [volume](../v/volume.md). 1. **Price Charts**: Line charts, bar charts, and [candlestick](../c/candlestick.md) charts to visualize price movements. -2. **Indicators and Oscillators**: Moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD). +2. **Indicators and Oscillators**: Moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD). 3. **Patterns**: Head and shoulders, double tops and bottoms, triangles, flags. 4. **[Volume Analysis](../v/volume_analysis.md)**: Observing the trading [volume](../v/volume.md) to confirm trends and price moves. diff --git a/en/pedia/u/underlying_security.md b/en/pedia/u/underlying_security.md index 978ebb8d..6ef62d46 100644 --- a/en/pedia/u/underlying_security.md +++ b/en/pedia/u/underlying_security.md @@ -53,9 +53,9 @@ A [stock option](../s/stock_option.md) provides the holder the right, but not th **Example:** A [futures contract](../f/futures_contract.md) for gold involves agreeing to buy or sell gold at a specified price on a specified future date. The price of gold in the [market](../m/market.md) is the [underlying](../u/underlying.md) [security](../s/security.md). ### 3. **Index Options** -[Index options](../i/index_options.md) provide the right to [trade](../t/trade.md) a stock [index](../i/index.md) at a specified level. +[Index options](../i/index_options.md) provide the right to [trade](../t/trade.md) a stock [index](../i/index_instrument.md) at a specified level. -**Example:** An S&P 500 [index option](../i/index_option.md) gives the holder the right to buy or sell the S&P 500 [index](../i/index.md) at a predefined level before the option expires. The S&P 500 [index](../i/index.md) is the [underlying](../u/underlying.md) [security](../s/security.md). +**Example:** An S&P 500 [index option](../i/index_option.md) gives the holder the right to buy or sell the S&P 500 [index](../i/index_instrument.md) at a predefined level before the option expires. The S&P 500 [index](../i/index_instrument.md) is the [underlying](../u/underlying.md) [security](../s/security.md). ### 4. **Forex Options** A forex option provides the right to [exchange](../e/exchange.md) a specified amount of one [currency](../c/currency.md) for another at a specified [exchange rate](../e/exchange_rate.md) on a specified date. diff --git a/en/pedia/u/underlying_security_analysis.md b/en/pedia/u/underlying_security_analysis.md index e24f65fe..15186dac 100644 --- a/en/pedia/u/underlying_security_analysis.md +++ b/en/pedia/u/underlying_security_analysis.md @@ -20,7 +20,7 @@ [Technical analysis](../t/technical_analysis.md) involves the study of past [market](../m/market.md) data, primarily price and [volume](../v/volume.md), to forecast future price movements. Key tools and concepts include: - **[Chart Patterns](../c/chart_patterns.md):** Identifying patterns such as head and shoulders, double tops and bottoms, and triangles to predict future movements. -- **Indicators and Oscillators:** Utilizing tools like Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and Moving Average Convergence [Divergence](../d/divergence.md) (MACD) to identify trends and [momentum](../m/momentum.md). +- **Indicators and Oscillators:** Utilizing tools like Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and Moving Average Convergence [Divergence](../d/divergence.md) (MACD) to identify trends and [momentum](../m/momentum.md). - **[Support and Resistance](../s/support_and_resistance.md) Levels:** Determining price levels at which a [security](../s/security.md) tends to stop and reverse. #### Quantitative Analysis diff --git a/en/pedia/u/underlying_volatility_analysis.md b/en/pedia/u/underlying_volatility_analysis.md index 8deebd2c..659baaa2 100644 --- a/en/pedia/u/underlying_volatility_analysis.md +++ b/en/pedia/u/underlying_volatility_analysis.md @@ -36,7 +36,7 @@ In the realm of [algorithmic trading](../a/algorithmic_trading.md), one of the m 2. **[Average True Range](../a/average_true_range_(atr).md) (ATR):** ATR measures [market](../m/market.md) [volatility](../v/volatility.md) by decomposing the entire [range](../r/range.md) of an [asset](../a/asset.md) for that period. It is an [indicator](../i/indicator.md) that helps in determining the average [range](../r/range.md) of price moves, adjusted for [gaps](../g/gap.md). -3. **[Volatility](../v/volatility.md) [Index](../i/index.md) (VIX):** +3. **[Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX):** The VIX is a popular measure of implied [volatility](../v/volatility.md) of the S&P 500 [index options](../i/index_options.md). It is often termed the "fear gauge" because it represents [market sentiment](../m/market_sentiment.md). 4. **[GARCH Models](../g/garch_models.md):** diff --git a/en/pedia/u/underperform.md b/en/pedia/u/underperform.md index 9ce124bb..54b78b75 100644 --- a/en/pedia/u/underperform.md +++ b/en/pedia/u/underperform.md @@ -1,6 +1,6 @@ # Underperform -"Underperform" is a term widely used in the [finance](../f/finance.md) and [investing](../i/investing.md) world to describe a scenario where an investment, [security](../s/security.md), portfolio, or [financial asset](../f/financial_asset.md) yields lower returns compared to a [benchmark](../b/benchmark.md) [index](../i/index.md), [market](../m/market.md) average, or peers over a certain period. This term is essential as it allows investors and analysts to gauge the [efficiency](../e/efficiency.md) and effectiveness of their investments relative to the broader [market](../m/market.md) or specific competitors. +"Underperform" is a term widely used in the [finance](../f/finance.md) and [investing](../i/investing.md) world to describe a scenario where an investment, [security](../s/security.md), portfolio, or [financial asset](../f/financial_asset.md) yields lower returns compared to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), [market](../m/market.md) average, or peers over a certain period. This term is essential as it allows investors and analysts to gauge the [efficiency](../e/efficiency.md) and effectiveness of their investments relative to the broader [market](../m/market.md) or specific competitors. ## Understanding Underperformance @@ -8,7 +8,7 @@ Underperformance can occur for various reasons including poor management decisio ### Metrics Used to Measure Underperformance -1. **[Benchmark Comparison](../b/benchmark_comparison.md)**: One of the simplest ways to measure underperformance is by comparing the investment returns to a [benchmark](../b/benchmark.md) [index](../i/index.md) such as the S&P 500, [NASDAQ](../n/nasdaq.md), or the Dow Jones Industrial Average. +1. **[Benchmark Comparison](../b/benchmark_comparison.md)**: One of the simplest ways to measure underperformance is by comparing the investment returns to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) such as the S&P 500, [NASDAQ](../n/nasdaq.md), or the Dow Jones Industrial Average. 2. **Year-to-Date (YTD) Performance**: This metric helps in comparing the current year's performance with the previous years. 3. **[Total Return](../t/total_return.md)**: It includes [interest](../i/interest.md), [capital](../c/capital.md) gains, dividends, and distributions realized over a given period. 4. **[Alpha](../a/alpha.md)**: This measures the performance of an investment relative to a [market index](../m/market_index.md) or [benchmark](../b/benchmark.md), indicating whether the investment has outperformed or underperformed the [market](../m/market.md). @@ -18,7 +18,7 @@ Underperformance can occur for various reasons including poor management decisio #### Relative Underperformance -This occurs when the [return](../r/return.md) on an investment is less than the [return](../r/return.md) on a specific [benchmark](../b/benchmark.md). For instance, if a stock yields a [return](../r/return.md) of 5% while the S&P 500 [index](../i/index.md) yields 10%, the stock is said to be underperforming relative to the S&P 500. +This occurs when the [return](../r/return.md) on an investment is less than the [return](../r/return.md) on a specific [benchmark](../b/benchmark.md). For instance, if a stock yields a [return](../r/return.md) of 5% while the S&P 500 [index](../i/index_instrument.md) yields 10%, the stock is said to be underperforming relative to the S&P 500. #### Absolute Underperformance diff --git a/en/pedia/u/undertakings_collective_investment_in_transferable_securities_(ucits).md b/en/pedia/u/undertakings_collective_investment_in_transferable_securities_(ucits).md index af135b88..c0fc3aca 100644 --- a/en/pedia/u/undertakings_collective_investment_in_transferable_securities_(ucits).md +++ b/en/pedia/u/undertakings_collective_investment_in_transferable_securities_(ucits).md @@ -28,7 +28,7 @@ UCITS can take various legal forms, including contractual funds, [open](../o/ope 2. **[Bond](../b/bond.md) Funds**: Focus on fixed-[income](../i/income.md) securities such as government and corporate bonds. 3. **[Money Market](../m/money_market.md) Funds**: Invest in short-term, low-[risk](../r/risk.md) instruments to provide [liquidity](../l/liquidity.md) and [preservation of capital](../p/preservation_of_capital.md). 4. **Mixed Funds**: Combine equities and fixed-[income](../i/income.md) securities to balance [risk](../r/risk.md) and [return](../r/return.md). -5. **[Index](../i/index.md) Funds**: Track specific [market](../m/market.md) indices and [offer](../o/offer.md) [passive investment strategies](../p/passive_investment_strategies.md). +5. **[Index](../i/index_instrument.md) Funds**: Track specific [market](../m/market.md) indices and [offer](../o/offer.md) [passive investment strategies](../p/passive_investment_strategies.md). 6. **[Fund](../f/fund.md) of Funds**: Invest in other UCITS funds to achieve [diversification](../d/diversification.md). ## UCITS Regulation History diff --git a/en/pedia/u/underweight.md b/en/pedia/u/underweight.md index 6fd7225b..1ab20378 100644 --- a/en/pedia/u/underweight.md +++ b/en/pedia/u/underweight.md @@ -1,10 +1,10 @@ # Underweight -In the financial context, the term "underweight" refers to a lower level of investment in a particular [asset](../a/asset.md) relative to a [benchmark](../b/benchmark.md) [index](../i/index.md) or [market](../m/market.md). This strategy is often employed by portfolio managers and investment analysts to signify that they believe an [asset](../a/asset.md), such as a specific stock, [bond](../b/bond.md), or sector, is expected to [underperform](../u/underperform.md) the [market](../m/market.md) or its peers. Being underweight means that the investment holds a smaller allocation than what is typically found in a [benchmark](../b/benchmark.md) [index](../i/index.md). +In the financial context, the term "underweight" refers to a lower level of investment in a particular [asset](../a/asset.md) relative to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) or [market](../m/market.md). This strategy is often employed by portfolio managers and investment analysts to signify that they believe an [asset](../a/asset.md), such as a specific stock, [bond](../b/bond.md), or sector, is expected to [underperform](../u/underperform.md) the [market](../m/market.md) or its peers. Being underweight means that the investment holds a smaller allocation than what is typically found in a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). ## Definition -Underweight is one of several [asset allocation](../a/asset_allocation.md) terms used by portfolio managers and financial analysts. It represents a position where an [investor](../i/investor.md) holds a smaller percentage of a particular [asset](../a/asset.md) or [asset class](../a/asset_class.md) compared to its weight in a [benchmark](../b/benchmark.md) [index](../i/index.md). For example, if a stock comprises 5% of a [benchmark](../b/benchmark.md) [index](../i/index.md) but an [investor](../i/investor.md)'s portfolio only allocates 2% to that stock, the [investor](../i/investor.md) is said to be underweight in that stock. +Underweight is one of several [asset allocation](../a/asset_allocation.md) terms used by portfolio managers and financial analysts. It represents a position where an [investor](../i/investor.md) holds a smaller percentage of a particular [asset](../a/asset.md) or [asset class](../a/asset_class.md) compared to its weight in a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). For example, if a stock comprises 5% of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) but an [investor](../i/investor.md)'s portfolio only allocates 2% to that stock, the [investor](../i/investor.md) is said to be underweight in that stock. ## Context and Importance @@ -18,7 +18,7 @@ Underweight positions are a crucial aspect of [risk management](../r/risk_manage ### Benchmark Comparisons -Commonly, benchmarks such as the S&P 500 or the MSCI World [Index](../i/index.md) serve as reference points for determining underweight and [overweight](../o/overweight.md) positions. The deviation from these benchmarks provides a structured approach for [asset allocation](../a/asset_allocation.md), enabling systematic investment decisions. +Commonly, benchmarks such as the S&P 500 or the MSCI World [Index](../i/index_instrument.md) serve as reference points for determining underweight and [overweight](../o/overweight.md) positions. The deviation from these benchmarks provides a structured approach for [asset allocation](../a/asset_allocation.md), enabling systematic investment decisions. ## Applications in Asset Management @@ -28,7 +28,7 @@ In [equity](../e/equity.md) [investing](../i/investing.md), underweighting speci ### Fixed Income -For fixed-[income](../i/income.md) investments, being underweight could mean holding fewer bonds from a particular [issuer](../i/issuer.md) or sector than indicated by a [benchmark](../b/benchmark.md) [index](../i/index.md). This decision could be driven by changing [interest](../i/interest.md) rates, [credit](../c/credit.md) risks, or sectoral shifts influencing [bond](../b/bond.md) performance. +For fixed-[income](../i/income.md) investments, being underweight could mean holding fewer bonds from a particular [issuer](../i/issuer.md) or sector than indicated by a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). This decision could be driven by changing [interest](../i/interest.md) rates, [credit](../c/credit.md) risks, or sectoral shifts influencing [bond](../b/bond.md) performance. ### Geographic Diversification @@ -52,7 +52,7 @@ Advanced [quantitative models](../q/quantitative_models.md) use statistical tool ## Real-World Example -Let's consider a [fund manager](../f/fund_manager.md) overseeing a diversified portfolio that mirrors the composition of the S&P 500. Suppose that the [technology sector](../t/technology_sector.md) consists of 20% of the [index](../i/index.md). Based on current analyses and [forecasting](../f/forecasting.md), the [fund manager](../f/fund_manager.md) believes that technology [stocks](../s/stock.md) are poised for a [correction](../c/correction.md) due to overvaluation and emerging regulatory concerns. As a result, they decide to reduce the portfolio's exposure to technology [stocks](../s/stock.md) to 10%, thereby underweighting the sector relative to the [benchmark](../b/benchmark.md). +Let's consider a [fund manager](../f/fund_manager.md) overseeing a diversified portfolio that mirrors the composition of the S&P 500. Suppose that the [technology sector](../t/technology_sector.md) consists of 20% of the [index](../i/index_instrument.md). Based on current analyses and [forecasting](../f/forecasting.md), the [fund manager](../f/fund_manager.md) believes that technology [stocks](../s/stock.md) are poised for a [correction](../c/correction.md) due to overvaluation and emerging regulatory concerns. As a result, they decide to reduce the portfolio's exposure to technology [stocks](../s/stock.md) to 10%, thereby underweighting the sector relative to the [benchmark](../b/benchmark.md). ## Implications and Considerations diff --git a/en/pedia/u/uneconomic_growth.md b/en/pedia/u/uneconomic_growth.md index de9fe37b..5b84784e 100644 --- a/en/pedia/u/uneconomic_growth.md +++ b/en/pedia/u/uneconomic_growth.md @@ -30,7 +30,7 @@ The Genuine Progress [Indicator](../i/indicator.md) is an alternative metric to ### Human Development Index (HDI) -The Human Development [Index](../i/index.md), although not specifically designed to measure uneconomic growth, provides a broader perspective on growth by considering [life expectancy](../l/life_expectancy.md), education, and [per capita](../p/per_capita.md) [income](../i/income.md). +The Human Development [Index](../i/index_instrument.md), although not specifically designed to measure uneconomic growth, provides a broader perspective on growth by considering [life expectancy](../l/life_expectancy.md), education, and [per capita](../p/per_capita.md) [income](../i/income.md). ### Ecological Footprint diff --git a/en/pedia/u/unemployment_forecasts.md b/en/pedia/u/unemployment_forecasts.md index 7538a62b..db20f8a7 100644 --- a/en/pedia/u/unemployment_forecasts.md +++ b/en/pedia/u/unemployment_forecasts.md @@ -34,8 +34,8 @@ Qualitative assessments based on the expertise of economists and [labor market]( ## Key Indicators Used in Forecasting 1. **Gross Domestic Product (GDP)**: [Economic growth](../e/economic_growth.md) is typically linked with lower [unemployment](../u/unemployment.md). Hence, GDP forecasts are critical inputs. -2. **[Business](../b/business.md) Confidence [Index](../i/index.md)**: Indicates the level of optimism or pessimism that [business](../b/business.md) managers feel about the prospects of their companies. Higher confidence often precedes lower [unemployment](../u/unemployment.md). -3. **Consumer Confidence [Index](../i/index.md)**: Measures the degree of optimism consumers feel about the overall state of the [economy](../e/economy.md) and their personal financial situation. +2. **[Business](../b/business.md) Confidence [Index](../i/index_instrument.md)**: Indicates the level of optimism or pessimism that [business](../b/business.md) managers feel about the prospects of their companies. Higher confidence often precedes lower [unemployment](../u/unemployment.md). +3. **Consumer Confidence [Index](../i/index_instrument.md)**: Measures the degree of optimism consumers feel about the overall state of the [economy](../e/economy.md) and their personal financial situation. 4. **Job Vacancies and Labor [Turnover](../t/turnover.md)**: Higher job vacancies typically indicate a lower future [unemployment rate](../u/unemployment_rate.md). 5. **Technological Advancements**: Changes in technology can affect employment rates in various sectors. diff --git a/en/pedia/u/unemployment_rate_impact.md b/en/pedia/u/unemployment_rate_impact.md index bcf30907..4c7f66d2 100644 --- a/en/pedia/u/unemployment_rate_impact.md +++ b/en/pedia/u/unemployment_rate_impact.md @@ -82,7 +82,7 @@ GDP growth is another crucial [indicator](../i/indicator.md) correlated with [un ### Consumer Confidence Index -High [unemployment](../u/unemployment.md) typically dampens consumer confidence. Algorithms can use this [index](../i/index.md) to predict changes in consumer spending, impacting retail [stocks](../s/stock.md) and other consumer-focused industries. +High [unemployment](../u/unemployment.md) typically dampens consumer confidence. Algorithms can use this [index](../i/index_instrument.md) to predict changes in consumer spending, impacting retail [stocks](../s/stock.md) and other consumer-focused industries. ## Challenges in Incorporating Unemployment Data diff --git a/en/pedia/u/unfilled_gaps.md b/en/pedia/u/unfilled_gaps.md index 7462f171..5f41d2a6 100644 --- a/en/pedia/u/unfilled_gaps.md +++ b/en/pedia/u/unfilled_gaps.md @@ -100,7 +100,7 @@ Algorithmic systems should continuously monitor the [market](../m/market.md) for ### Integration with Other Indicators -Enhance the reliability of gap [trading algorithms](../t/trading_algorithms.md) by integrating them with other [technical indicators](../t/technical_indicators.md), such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [volume analysis](../v/volume_analysis.md). This multi-faceted approach can improve the accuracy of [trading signals](../t/trading_signals.md). +Enhance the reliability of gap [trading algorithms](../t/trading_algorithms.md) by integrating them with other [technical indicators](../t/technical_indicators.md), such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [volume analysis](../v/volume_analysis.md). This multi-faceted approach can improve the accuracy of [trading signals](../t/trading_signals.md). ## Conclusion diff --git a/en/pedia/u/unique_three_river.md b/en/pedia/u/unique_three_river.md index 8b437a82..7f3f2880 100644 --- a/en/pedia/u/unique_three_river.md +++ b/en/pedia/u/unique_three_river.md @@ -28,7 +28,7 @@ While observing [candlestick patterns](../c/candlestick_patterns.md), certain co 1. **Context in the [Downtrend](../d/downtrend.md)**: The pattern should form within a well-defined [downtrend](../d/downtrend.md). 2. **[Volume Confirmation](../v/volume_confirmation.md)**: An increase in trading [volume](../v/volume.md) on the formation of the third [candlestick](../c/candlestick.md) can reinforce the pattern's validity. -3. **Other Indicators**: The usefulness of using additional indicators such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Averages to confirm the potential [reversal](../r/reversal.md) can add further [assurance](../a/assurance.md). +3. **Other Indicators**: The usefulness of using additional indicators such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Averages to confirm the potential [reversal](../r/reversal.md) can add further [assurance](../a/assurance.md). ## Practical Applications in Trading diff --git a/en/pedia/u/unit_trust_(ut).md b/en/pedia/u/unit_trust_(ut).md index 2afc438e..85a1190f 100644 --- a/en/pedia/u/unit_trust_(ut).md +++ b/en/pedia/u/unit_trust_(ut).md @@ -40,7 +40,7 @@ Balanced [Unit Trusts](../u/unit_trusts.md) invest in a mix of equities, fixed-[ ### Index Unit Trusts -[Index](../i/index.md) [Unit Trusts](../u/unit_trusts.md) aim to replicate the performance of a specific [market index](../m/market_index.md), such as the S&P 500 or FTSE 100. These trusts use a passive [investment strategy](../i/investment_strategy.md), buying securities in the same proportion as the [index](../i/index.md) they track. The goal is to match the [index](../i/index.md) performance rather than [outperform](../o/outperform.md) it. +[Index](../i/index_instrument.md) [Unit Trusts](../u/unit_trusts.md) aim to replicate the performance of a specific [market index](../m/market_index.md), such as the S&P 500 or FTSE 100. These trusts use a passive [investment strategy](../i/investment_strategy.md), buying securities in the same proportion as the [index](../i/index_instrument.md) they track. The goal is to match the [index](../i/index_instrument.md) performance rather than [outperform](../o/outperform.md) it. ## Advantages of Unit Trusts diff --git a/en/pedia/u/unit_trust_analysis.md b/en/pedia/u/unit_trust_analysis.md index 7bb94913..a7685bbf 100644 --- a/en/pedia/u/unit_trust_analysis.md +++ b/en/pedia/u/unit_trust_analysis.md @@ -34,7 +34,7 @@ The [value](../v/value.md) of a unit in a Unit [Trust](../t/trust.md) is known a **4. [Money Market](../m/money_market.md) Funds**: These funds invest in [short-term debt](../s/short-term_debt.md) instruments such as treasury bills, certificates of [deposit](../d/deposit.md), and [commercial paper](../c/commercial_paper.md). They aim to provide high [liquidity](../l/liquidity.md) with low [risk](../r/risk.md) and are often used for parking [surplus](../s/surplus.md) funds for short durations. -**5. [Index](../i/index.md) Funds**: These funds replicate the performance of a specific [market index](../m/market_index.md), such as the S&P 500. They [offer](../o/offer.md) broad [market exposure](../m/market_exposure.md), low operating expenses, and passively managed returns that mirror the [index](../i/index.md)’s performance. +**5. [Index](../i/index_instrument.md) Funds**: These funds replicate the performance of a specific [market index](../m/market_index.md), such as the S&P 500. They [offer](../o/offer.md) broad [market exposure](../m/market_exposure.md), low operating expenses, and passively managed returns that mirror the [index](../i/index_instrument.md)’s performance. **6. Sector Funds**: These funds focus on specific sectors or industries, such as technology, healthcare, or energy. They carry higher [risk](../r/risk.md) due to their narrow focus but can [offer](../o/offer.md) substantial returns if the sector performs well. diff --git a/en/pedia/u/united_states_treasury_money_mutual_funds.md b/en/pedia/u/united_states_treasury_money_mutual_funds.md index dd1b0260..a5ab20ad 100644 --- a/en/pedia/u/united_states_treasury_money_mutual_funds.md +++ b/en/pedia/u/united_states_treasury_money_mutual_funds.md @@ -23,7 +23,7 @@ These are short-term securities that mature in one year or less. They are sold a These are medium-term securities with maturities ranging from two to ten years. They pay [interest](../i/interest.md) every six months and [return](../r/return.md) the [principal](../p/principal.md) upon [maturity](../m/maturity.md). ### Treasury Inflation-Protected Securities (TIPS) -Although less common in MMFs due to their longer maturities, some funds may [hold](../h/hold.md) TIPS. These are designed to protect against [inflation](../i/inflation.md) and derive their [principal](../p/principal.md) [value](../v/value.md) from the Consumer Price [Index](../i/index.md) (CPI). +Although less common in MMFs due to their longer maturities, some funds may [hold](../h/hold.md) TIPS. These are designed to protect against [inflation](../i/inflation.md) and derive their [principal](../p/principal.md) [value](../v/value.md) from the Consumer Price [Index](../i/index_instrument.md) (CPI). ## How They Work diff --git a/en/pedia/u/unitholder.md b/en/pedia/u/unitholder.md index a77a5490..311d6e85 100644 --- a/en/pedia/u/unitholder.md +++ b/en/pedia/u/unitholder.md @@ -14,7 +14,7 @@ Ownership of units in a unit [trust](../t/trust.md) gives the unitholder a propo - **Balanced Funds**: These funds diversify their investments across both [equity](../e/equity.md) and fixed-[income](../i/income.md) securities, aiming for a balance of [capital](../c/capital.md) growth and [income](../i/income.md) generation. -- **[Index](../i/index.md) Funds**: These funds aim to replicate the performance of a specific stock [market index](../m/market_index.md), such as the S&P 500 or the FTSE 100, by holding a similar portfolio of assets as the [index](../i/index.md). +- **[Index](../i/index_instrument.md) Funds**: These funds aim to replicate the performance of a specific stock [market index](../m/market_index.md), such as the S&P 500 or the FTSE 100, by holding a similar portfolio of assets as the [index](../i/index_instrument.md). - **[Real Estate](../r/real_estate.md) Investment Trusts (REITs)**: These funds invest in [real estate](../r/real_estate.md) properties, aiming to generate both rental [income](../i/income.md) and [capital](../c/capital.md) appreciation from the properties in their portfolio. @@ -116,7 +116,7 @@ Regulatory bodies often have mechanisms in place to protect investors in case of Several well-known financial institutions [offer](../o/offer.md) [unit trusts](../u/unit_trusts.md), each with its own [investment strategy](../i/investment_strategy.md) and focus. Some examples include: -- **Vanguard Group**: Vanguard offers a wide [range](../r/range.md) of [unit trusts](../u/unit_trusts.md) and mutual funds, focusing on low-cost [index](../i/index.md) funds and actively managed funds. More information can be found on their official website: [Vanguard Group](https://www.vanguard.com) +- **Vanguard Group**: Vanguard offers a wide [range](../r/range.md) of [unit trusts](../u/unit_trusts.md) and mutual funds, focusing on low-cost [index](../i/index_instrument.md) funds and actively managed funds. More information can be found on their official website: [Vanguard Group](https://www.vanguard.com) - **[Fidelity Investments](../f/fidelity_investments.md)**: Fidelity provides a variety of [unit trusts](../u/unit_trusts.md), including [equity](../e/equity.md), [bond](../b/bond.md), and balanced funds. Fidelity is known for its extensive research and [fund](../f/fund.md) management expertise. More information can be found on their official website: [Fidelity Investments](https://www.fidelity.com) diff --git a/en/pedia/u/unitized_fund.md b/en/pedia/u/unitized_fund.md index 6b335cb8..ce963c52 100644 --- a/en/pedia/u/unitized_fund.md +++ b/en/pedia/u/unitized_fund.md @@ -31,7 +31,7 @@ Unitized funds come in various forms, depending on the types of assets they inve 3. **Balanced Funds**: Invest in a mix of equities and bonds, aiming to balance [risk](../r/risk.md) and [return](../r/return.md). 4. **[Money Market](../m/money_market.md) Funds**: Invest in short-term, high-quality [debt](../d/debt.md) instruments, aiming for [capital preservation](../c/capital_preservation.md) and [liquidity](../l/liquidity.md). 5. **[Real Estate](../r/real_estate.md) Funds**: Invest in [real estate](../r/real_estate.md) properties or [real estate](../r/real_estate.md) investment trusts (REITs), providing exposure to the [real estate](../r/real_estate.md) [market](../m/market.md). -6. **[Index](../i/index.md) Funds**: Track a specific [index](../i/index.md), such as the S&P 500, aiming to replicate the performance of the [benchmark](../b/benchmark.md) [index](../i/index.md). +6. **[Index](../i/index_instrument.md) Funds**: Track a specific [index](../i/index_instrument.md), such as the S&P 500, aiming to replicate the performance of the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). 7. **Sector Funds**: Focus on specific sectors like technology, healthcare, or energy, allowing investors to target specific industries. 8. **Global or International Funds**: Invest in assets globally, providing exposure to international markets. @@ -67,7 +67,7 @@ While unitized funds and mutual funds share similarities, such as pooling invest Several financial institutions and [asset management](../a/asset_management.md) companies [offer](../o/offer.md) unitized funds. Some notable providers include: -- **Vanguard**: Known for its low-cost [index](../i/index.md) funds and wide [range](../r/range.md) of investment [options](../o/options.md). +- **Vanguard**: Known for its low-cost [index](../i/index_instrument.md) funds and wide [range](../r/range.md) of investment [options](../o/options.md). [Vanguard](https://www.vanguard.com/) - **[Fidelity Investments](../f/fidelity_investments.md)**: Offers a broad spectrum of unitized funds, covering various [asset](../a/asset.md) classes and investment strategies. diff --git a/en/pedia/u/universal_life_insurance.md b/en/pedia/u/universal_life_insurance.md index d5594953..63935e61 100644 --- a/en/pedia/u/universal_life_insurance.md +++ b/en/pedia/u/universal_life_insurance.md @@ -22,7 +22,7 @@ A unique aspect of universal [life insurance](../l/life_insurance.md) is that it ### Interest Rates and Investment Options -The cash [value](../v/value.md) in a universal [life insurance](../l/life_insurance.md) policy earns [interest](../i/interest.md) based on the current [market](../m/market.md) rates or the performance of an [index](../i/index.md) or separate account. Many universal life policies [offer](../o/offer.md) a guaranteed minimum [interest rate](../i/interest_rate.md), which protects the policyholder's investment in low-[interest](../i/interest.md)-rate environments. Additionally, some policies provide the option to invest in variable sub-accounts, which function similarly to mutual funds, [offering](../o/offering.md) the potential for higher returns along with greater [risk](../r/risk.md). +The cash [value](../v/value.md) in a universal [life insurance](../l/life_insurance.md) policy earns [interest](../i/interest.md) based on the current [market](../m/market.md) rates or the performance of an [index](../i/index_instrument.md) or separate account. Many universal life policies [offer](../o/offer.md) a guaranteed minimum [interest rate](../i/interest_rate.md), which protects the policyholder's investment in low-[interest](../i/interest.md)-rate environments. Additionally, some policies provide the option to invest in variable sub-accounts, which function similarly to mutual funds, [offering](../o/offering.md) the potential for higher returns along with greater [risk](../r/risk.md). ## Types of Universal Life Insurance @@ -36,7 +36,7 @@ Guaranteed universal [life insurance](../l/life_insurance.md) (GUL) focuses on p ### Indexed Universal Life Insurance -Indexed universal [life insurance](../l/life_insurance.md) policies (IULs) [offer](../o/offer.md) returns based on the performance of a [market index](../m/market_index.md), such as the S&P 500. These policies provide a balance between [risk](../r/risk.md) and reward, as they often include a cap on maximum returns as well as a floor that protects against negative [index](../i/index.md) performance. +Indexed universal [life insurance](../l/life_insurance.md) policies (IULs) [offer](../o/offer.md) returns based on the performance of a [market index](../m/market_index.md), such as the S&P 500. These policies provide a balance between [risk](../r/risk.md) and reward, as they often include a cap on maximum returns as well as a floor that protects against negative [index](../i/index_instrument.md) performance. ### Variable Universal Life Insurance diff --git a/en/pedia/u/unleveraged_funds.md b/en/pedia/u/unleveraged_funds.md index b27219a0..2b61dbb8 100644 --- a/en/pedia/u/unleveraged_funds.md +++ b/en/pedia/u/unleveraged_funds.md @@ -17,7 +17,7 @@ Unleveraged funds, also known as unleveraged investment funds, are financial pro ## Types of Unleveraged Funds ### Equity Funds -These funds invest in [stocks](../s/stock.md) and aim to provide [capital](../c/capital.md) growth over the long term. They do not use borrowed [capital](../c/capital.md), thus [offering](../o/offering.md) lower [risk](../r/risk.md) compared to leveraged [equity](../e/equity.md) funds. Examples include traditional mutual funds and [index](../i/index.md) funds. +These funds invest in [stocks](../s/stock.md) and aim to provide [capital](../c/capital.md) growth over the long term. They do not use borrowed [capital](../c/capital.md), thus [offering](../o/offering.md) lower [risk](../r/risk.md) compared to leveraged [equity](../e/equity.md) funds. Examples include traditional mutual funds and [index](../i/index_instrument.md) funds. ### Fixed Income Funds These funds invest in bonds and other fixed-[income](../i/income.md) securities. Given their focus on preserving [capital](../c/capital.md) and generating steady [income](../i/income.md), they are naturally predisposed to an unleveraged structure. @@ -45,7 +45,7 @@ These funds invest in short-term, high-quality investments issued by government ## Examples of Unleveraged Funds ### Vanguard 500 Index Fund (VFINX) -Vanguard’s VFINX is a classic example of an unleveraged [equity fund](../e/equity_fund.md) that tracks the performance of the S&P 500 [Index](../i/index.md). By [investing](../i/investing.md) in a wide [range](../r/range.md) of large-cap American companies, it provides diversified exposure without leveraging. +Vanguard’s VFINX is a classic example of an unleveraged [equity fund](../e/equity_fund.md) that tracks the performance of the S&P 500 [Index](../i/index_instrument.md). By [investing](../i/investing.md) in a wide [range](../r/range.md) of large-cap American companies, it provides diversified exposure without leveraging. **Link:** [Vanguard 500 Index Fund](https://investor.vanguard.com/mutual-funds/profile/VFINX) diff --git a/en/pedia/u/unlisted_stock_analysis.md b/en/pedia/u/unlisted_stock_analysis.md index be6fa37c..fcd6c97e 100644 --- a/en/pedia/u/unlisted_stock_analysis.md +++ b/en/pedia/u/unlisted_stock_analysis.md @@ -45,7 +45,7 @@ Unlisted [stock analysis](../s/stock_analysis.md) refers to the detailed examina **[Technical Analysis](../t/technical_analysis.md)** focuses on statistical analysis of price movement and trading [volume](../v/volume.md). It involves: 1. **Price Charts**: Studying historical price charts to identify trends and patterns. -2. **Indicators**: Utilizing [technical indicators](../t/technical_indicators.md) like Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) to predict future price movements. +2. **Indicators**: Utilizing [technical indicators](../t/technical_indicators.md) like Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) to predict future price movements. 3. **Trading [Volume](../v/volume.md)**: Investigating the [volume](../v/volume.md) of trades to gauge the strength of price movements. ### Quantitative Analysis diff --git a/en/pedia/u/unsystematic_risk.md b/en/pedia/u/unsystematic_risk.md index 6b87a4a2..74bd5e2b 100644 --- a/en/pedia/u/unsystematic_risk.md +++ b/en/pedia/u/unsystematic_risk.md @@ -24,7 +24,7 @@ Unsystematic [risk](../r/risk.md) can be measured using various financial metric 2. **[Beta](../b/beta.md)**: While [beta](../b/beta.md) is typically used to measure [systematic risk](../s/systematic_risk.md), it can also inform about a stock’s [risk](../r/risk.md) relative to the [market](../m/market.md). A lower [beta](../b/beta.md) indicates that a stock has lower [market risk](../m/market_risk.md) but could have higher unsystematic [risk](../r/risk.md). -3. **[Alpha](../a/alpha.md)**: This measures the [excess return](../e/excess_return.md) on an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index.md). A high [alpha](../a/alpha.md) can indicate higher unsystematic [risk](../r/risk.md) due to reliance on unique factors. +3. **[Alpha](../a/alpha.md)**: This measures the [excess return](../e/excess_return.md) on an investment relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). A high [alpha](../a/alpha.md) can indicate higher unsystematic [risk](../r/risk.md) due to reliance on unique factors. 4. **[Sharpe Ratio](../s/sharpe_ratio.md)**: While it primarily measures [risk](../r/risk.md)-adjusted returns, a lower [Sharpe ratio](../s/sharpe_ratio.md) may signal the presence of higher unsystematic [risk](../r/risk.md). diff --git a/en/pedia/u/unusual_trading_patterns.md b/en/pedia/u/unusual_trading_patterns.md index 1c4159b1..711db359 100644 --- a/en/pedia/u/unusual_trading_patterns.md +++ b/en/pedia/u/unusual_trading_patterns.md @@ -29,7 +29,7 @@ The 'Waterfall Decline' pattern occurs when an [asset](../a/asset.md) experience - Often followed by a short-term bounce or a steep decline continuation. ### Algorithmic Detection: -Using Moving Averages and [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), [trading algorithms](../t/trading_algorithms.md) can detect the sharp downward movements and trigger short-selling strategies. +Using Moving Averages and [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), [trading algorithms](../t/trading_algorithms.md) can detect the sharp downward movements and trigger short-selling strategies. ## 3. **Diamond Top/Bottom Patterns** diff --git a/en/pedia/u/unweighted_index.md b/en/pedia/u/unweighted_index.md index c3ad464a..90185893 100644 --- a/en/pedia/u/unweighted_index.md +++ b/en/pedia/u/unweighted_index.md @@ -1,26 +1,26 @@ # Unweighted Index -An unweighted [index](../i/index.md), also known as an equal-[weighted](../w/weighted.md) [index](../i/index.md), is a type of stock [market index](../m/market_index.md) where each component stock is given equal importance regardless of its [market capitalization](../m/market_capitalization.md). Unlike a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md), where larger companies have a more significant impact on the [index](../i/index.md)'s performance, an unweighted [index](../i/index.md) treats each stock equally. This provides a different perspective on the [market](../m/market.md)'s performance and can influence investment strategies and [portfolio management](../p/par.md). +An unweighted [index](../i/index_instrument.md), also known as an equal-[weighted](../w/weighted.md) [index](../i/index_instrument.md), is a type of stock [market index](../m/market_index.md) where each component stock is given equal importance regardless of its [market capitalization](../m/market_capitalization.md). Unlike a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md), where larger companies have a more significant impact on the [index](../i/index_instrument.md)'s performance, an unweighted [index](../i/index_instrument.md) treats each stock equally. This provides a different perspective on the [market](../m/market.md)'s performance and can influence investment strategies and [portfolio management](../p/par.md). ## Understanding Unweighted Indexes -In a traditional [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md), the price movements of [large-cap stocks](../l/large_cap_stocks.md) dominate the [index](../i/index.md)'s performance. For instance, in the S&P 500, companies like Apple, Microsoft, and Amazon carry much more weight than smaller companies. This means that the performance of the [index](../i/index.md) is highly dependent on the performance of these large companies. +In a traditional [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md), the price movements of [large-cap stocks](../l/large_cap_stocks.md) dominate the [index](../i/index_instrument.md)'s performance. For instance, in the S&P 500, companies like Apple, Microsoft, and Amazon carry much more weight than smaller companies. This means that the performance of the [index](../i/index_instrument.md) is highly dependent on the performance of these large companies. -In contrast, an unweighted [index](../i/index.md) assigns the same weight to every component stock. This means that a 1% change in the stock price of a small company has the same impact on the [index](../i/index.md) as a 1% change in the stock price of a large company. This can provide a more balanced view of the [market](../m/market.md)'s overall performance and can be particularly useful for investors looking to diversify their portfolios. +In contrast, an unweighted [index](../i/index_instrument.md) assigns the same weight to every component stock. This means that a 1% change in the stock price of a small company has the same impact on the [index](../i/index_instrument.md) as a 1% change in the stock price of a large company. This can provide a more balanced view of the [market](../m/market.md)'s overall performance and can be particularly useful for investors looking to diversify their portfolios. ## Examples of Unweighted Indexes ### Value Line Geometric Index -One of the most well-known unweighted indexes is the [Value](../v/value.md) Line Geometric [Index](../i/index.md). This [index](../i/index.md) includes around 1,700 [stocks](../s/stock.md) from various industries and is calculated using a geometric average. Unlike arithmetic averages, which simply sum the values and divide by the number of observations, geometric averages multiply the values and take the nth root (where n is the number of observations). This type of averaging can provide a more accurate reflection of compound returns over time. +One of the most well-known unweighted indexes is the [Value](../v/value.md) Line Geometric [Index](../i/index_instrument.md). This [index](../i/index_instrument.md) includes around 1,700 [stocks](../s/stock.md) from various industries and is calculated using a geometric average. Unlike arithmetic averages, which simply sum the values and divide by the number of observations, geometric averages multiply the values and take the nth root (where n is the number of observations). This type of averaging can provide a more accurate reflection of compound returns over time. ### S&P Equal Weight Index -The S&P [Equal Weight](../e/equal_weight.md) [Index](../i/index.md) is another example. It includes the same [stocks](../s/stock.md) as the S&P 500 but assigns each stock an [equal weight](../e/equal_weight.md). This ensures that the performance of smaller companies significantly influences the [index](../i/index.md)'s overall performance, providing a different perspective compared to the traditional S&P 500. +The S&P [Equal Weight](../e/equal_weight.md) [Index](../i/index_instrument.md) is another example. It includes the same [stocks](../s/stock.md) as the S&P 500 but assigns each stock an [equal weight](../e/equal_weight.md). This ensures that the performance of smaller companies significantly influences the [index](../i/index_instrument.md)'s overall performance, providing a different perspective compared to the traditional S&P 500. ### Museum of American Finance's NYSE Arca Equal Weighted Index -This [index](../i/index.md) covers a variety of sectors and ensures [equal weight](../e/equal_weight.md) across its component [stocks](../s/stock.md). It offers a diversified view of the [market](../m/market.md) and reduces the [risk](../r/risk.md) of overexposure to any single stock or sector. +This [index](../i/index_instrument.md) covers a variety of sectors and ensures [equal weight](../e/equal_weight.md) across its component [stocks](../s/stock.md). It offers a diversified view of the [market](../m/market.md) and reduces the [risk](../r/risk.md) of overexposure to any single stock or sector. ## Benefits of Unweighted Indexes @@ -30,7 +30,7 @@ One of the primary benefits of unweighted indexes is [diversification](../d/dive ### Reduced Concentration Risk -[Market](../m/market.md)-cap [weighted](../w/weighted.md) indexes tend to be heavily concentrated in a few large companies. If these companies perform poorly, the entire [index](../i/index.md) can suffer. In contrast, unweighted indexes spread the [risk](../r/risk.md) more evenly across all component [stocks](../s/stock.md), reducing the impact of poor performance by any single company. +[Market](../m/market.md)-cap [weighted](../w/weighted.md) indexes tend to be heavily concentrated in a few large companies. If these companies perform poorly, the entire [index](../i/index_instrument.md) can suffer. In contrast, unweighted indexes spread the [risk](../r/risk.md) more evenly across all component [stocks](../s/stock.md), reducing the impact of poor performance by any single company. ### Better Performance in Small and Mid-Cap Stocks @@ -40,7 +40,7 @@ Historical data suggests that small and [mid-cap stocks](../m/mid-cap_stocks.md) ### Higher Turnover and Transaction Costs -Maintaining an unweighted [index](../i/index.md) requires regular [rebalancing](../r/rebalancing.md) to ensure that all component [stocks](../s/stock.md) have [equal weight](../e/equal_weight.md). This can lead to higher [turnover](../t/turnover.md) and increased [transaction costs](../t/transaction_costs.md), which can reduce net returns for investors. +Maintaining an unweighted [index](../i/index_instrument.md) requires regular [rebalancing](../r/rebalancing.md) to ensure that all component [stocks](../s/stock.md) have [equal weight](../e/equal_weight.md). This can lead to higher [turnover](../t/turnover.md) and increased [transaction costs](../t/transaction_costs.md), which can reduce net returns for investors. ### Underperformance in Bear Markets @@ -52,19 +52,19 @@ Unweighted indexes do not accurately represent the [market capitalization](../m/ ## Calculating an Unweighted Index -Calculating an unweighted [index](../i/index.md) involves assigning equal weights to all component [stocks](../s/stock.md) and then averaging their price changes. The calculation process can be summarized as follows: +Calculating an unweighted [index](../i/index_instrument.md) involves assigning equal weights to all component [stocks](../s/stock.md) and then averaging their price changes. The calculation process can be summarized as follows: -1. **Selecting Component [Stocks](../s/stock.md)**: Identify the [stocks](../s/stock.md) to be included in the [index](../i/index.md). +1. **Selecting Component [Stocks](../s/stock.md)**: Identify the [stocks](../s/stock.md) to be included in the [index](../i/index_instrument.md). 2. **Assigning Equal Weights**: Assign each stock an [equal weight](../e/equal_weight.md) regardless of its [market capitalization](../m/market_capitalization.md). 3. **Calculating Price Changes**: Determine the price change for each stock over a specific period. -4. **Averaging Price Changes**: Calculate the arithmetic or geometric average of the price changes to determine the [index](../i/index.md)'s overall performance. +4. **Averaging Price Changes**: Calculate the arithmetic or geometric average of the price changes to determine the [index](../i/index_instrument.md)'s overall performance. -For example, if an unweighted [index](../i/index.md) includes three [stocks](../s/stock.md) with price changes of +2%, -1%, and +3%, the [index](../i/index.md)'s performance can be calculated as follows: +For example, if an unweighted [index](../i/index_instrument.md) includes three [stocks](../s/stock.md) with price changes of +2%, -1%, and +3%, the [index](../i/index_instrument.md)'s performance can be calculated as follows: - Arithmetic Average: (2% + (-1%) + 3%) / 3 = 1.33% - Geometric Average: (1.02 * 0.99 * 1.03)^(1/3) - 1 ≈ 1.33% -Both methods [yield](../y/yield.md) a similar result, indicating that the unweighted [index](../i/index.md) has increased by approximately 1.33% over the specified period. +Both methods [yield](../y/yield.md) a similar result, indicating that the unweighted [index](../i/index_instrument.md) has increased by approximately 1.33% over the specified period. ## Applications in Investment Strategies @@ -78,7 +78,7 @@ Unweighted indexes can be used in [factor investing](../f/factor_investing.md), ### Performance Benchmarking -Unweighted indexes can serve as alternative benchmarks for evaluating investment performance. By comparing the performance of a portfolio to an unweighted [index](../i/index.md), investors can [gain](../g/gain.md) insights into how well their [investment strategy](../i/investment_strategy.md) is capturing the broader [market](../m/market.md)'s performance, especially in terms of small and [mid-cap stocks](../m/mid-cap_stocks.md). +Unweighted indexes can serve as alternative benchmarks for evaluating investment performance. By comparing the performance of a portfolio to an unweighted [index](../i/index_instrument.md), investors can [gain](../g/gain.md) insights into how well their [investment strategy](../i/investment_strategy.md) is capturing the broader [market](../m/market.md)'s performance, especially in terms of small and [mid-cap stocks](../m/mid-cap_stocks.md). ## Conclusion diff --git a/en/pedia/u/up-market_capture_ratio.md b/en/pedia/u/up-market_capture_ratio.md index 63058bca..95ebe273 100644 --- a/en/pedia/u/up-market_capture_ratio.md +++ b/en/pedia/u/up-market_capture_ratio.md @@ -1,6 +1,6 @@ # Up-Market Capture Ratio -The up-[market](../m/market.md) capture ratio is a critical performance metric employed in the [investment management](../i/investment_management.md) [industry](../i/industry.md) to assess how well a [fund manager](../f/fund_manager.md) performs relative to a [benchmark](../b/benchmark.md) [index](../i/index.md) during periods when the [market](../m/market.md) is rising. This ratio measures the percentage of [market](../m/market.md) gains captured by a portfolio during the periods of the [benchmark](../b/benchmark.md)'s upswings. +The up-[market](../m/market.md) capture ratio is a critical performance metric employed in the [investment management](../i/investment_management.md) [industry](../i/industry.md) to assess how well a [fund manager](../f/fund_manager.md) performs relative to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) during periods when the [market](../m/market.md) is rising. This ratio measures the percentage of [market](../m/market.md) gains captured by a portfolio during the periods of the [benchmark](../b/benchmark.md)'s upswings. ## Definition @@ -13,8 +13,8 @@ The formula for calculating the up-[market](../m/market.md) capture ratio is as \[ \text{Up-Market Capture Ratio} = \frac{\text{Portfolio Return (Up-Market Periods)}}{\text{[Benchmark](../b/benchmark.md) [Return](../r/return.md) (Up-[Market](../m/market.md) Periods)}} \times 100 \] Where: -- **Portfolio [Return](../r/return.md) (Up-[Market](../m/market.md) Periods)** refers to the returns generated by the portfolio during the periods when the [benchmark](../b/benchmark.md) [index](../i/index.md) is experiencing gains. -- **[Benchmark](../b/benchmark.md) [Return](../r/return.md) (Up-[Market](../m/market.md) Periods)** represents the returns of the [benchmark](../b/benchmark.md) [index](../i/index.md) during the same periods. +- **Portfolio [Return](../r/return.md) (Up-[Market](../m/market.md) Periods)** refers to the returns generated by the portfolio during the periods when the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) is experiencing gains. +- **[Benchmark](../b/benchmark.md) [Return](../r/return.md) (Up-[Market](../m/market.md) Periods)** represents the returns of the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) during the same periods. ## Interpretation @@ -32,7 +32,7 @@ Where: ### Example 1: Mutual Fund Performance -Consider a [mutual fund](../m/mutual_fund.md) that has experienced the following returns during up-[market](../m/market.md) periods, compared to its [benchmark](../b/benchmark.md) [index](../i/index.md): +Consider a [mutual fund](../m/mutual_fund.md) that has experienced the following returns during up-[market](../m/market.md) periods, compared to its [benchmark](../b/benchmark.md) [index](../i/index_instrument.md): - **[Fund](../f/fund.md) Returns (Up-[Market](../m/market.md) Periods)**: 12% - **[Benchmark](../b/benchmark.md) Returns (Up-[Market](../m/market.md) Periods)**: 10% diff --git a/en/pedia/u/upside.md b/en/pedia/u/upside.md index 5dde0d1a..e695e58c 100644 --- a/en/pedia/u/upside.md +++ b/en/pedia/u/upside.md @@ -23,7 +23,7 @@ Several factors can impact an [asset](../a/asset.md)'s [upside potential](../u/u 1. **[Market](../m/market.md) Conditions**: The overall economic and [market](../m/market.md) environment can significantly influence the [upside potential](../u/upside_potential_in_trading.md) of assets. Bullish markets generally support higher [upside potential](../u/upside_potential_in_trading.md) across different [asset](../a/asset.md) classes. 2. **Company Performance**: For individual [stocks](../s/stock.md), company-specific factors such as [earnings](../e/earnings.md) reports, product launches, and management changes can affect the stock's [upside potential](../u/upside_potential_in_trading.md). 3. **[Industry](../i/industry.md) Trends**: [Industry](../i/industry.md)-wide trends and innovations, such as technological advancements or regulatory changes, can enhance or constrain [upside potential](../u/upside_potential_in_trading.md). -4. **[Technical Indicators](../t/technical_indicator.md)**: In [technical analysis](../t/technical_analysis.md), indicators like moving averages, [volume](../v/volume.md) trends, and [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI) can provide insights into [upside potential](../u/upside_potential_in_trading.md). +4. **[Technical Indicators](../t/technical_indicator.md)**: In [technical analysis](../t/technical_analysis.md), indicators like moving averages, [volume](../v/volume.md) trends, and [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI) can provide insights into [upside potential](../u/upside_potential_in_trading.md). ## Methods for Evaluating Upside Potential diff --git a/en/pedia/u/upside_breakout_patterns.md b/en/pedia/u/upside_breakout_patterns.md index 71284b5d..e6f7e12e 100644 --- a/en/pedia/u/upside_breakout_patterns.md +++ b/en/pedia/u/upside_breakout_patterns.md @@ -50,7 +50,7 @@ Successful implementation starts with accurate data collection, ensuring high-qu Algorithms can [leverage](../l/leverage.md) [technical indicators](../t/technical_indicators.md) to identify potential [breakout](../b/breakout.md) patterns and confirm breakouts. 1. **Moving Averages**: Used to smooth price data and identify trends. -2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measures the speed and change of price movements, indicating [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measures the speed and change of price movements, indicating [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. 3. **[Volume Analysis](../v/volume_analysis.md)**: Confirms the strength of breakouts with increased trading [volume](../v/volume.md). ### Developing Trading Strategies diff --git a/en/pedia/u/upside_breakout_strategies.md b/en/pedia/u/upside_breakout_strategies.md index c39582c8..ec24aea1 100644 --- a/en/pedia/u/upside_breakout_strategies.md +++ b/en/pedia/u/upside_breakout_strategies.md @@ -31,7 +31,7 @@ Several [technical indicators](../t/technical_indicators.md) can be used to iden - **Moving Averages:** Help in identifying the direction of the [trend](../t/trend.md) and potential support/resistance levels. - **[Bollinger Bands](../b/bollinger_bands.md):** Measure [market](../m/market.md) [volatility](../v/volatility.md) and can help in identifying breakouts. - **MACD (Moving Average Convergence [Divergence](../d/divergence.md)):** Helps in identifying [momentum](../m/momentum.md) and directional changes. -- **RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)):** Can indicate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)):** Can indicate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. ## Executing Upside Breakout Strategies diff --git a/en/pedia/u/upside_capture_ratio.md b/en/pedia/u/upside_capture_ratio.md index d7c226b1..0f290a9c 100644 --- a/en/pedia/u/upside_capture_ratio.md +++ b/en/pedia/u/upside_capture_ratio.md @@ -67,7 +67,7 @@ Regular performance reports for funds usually include the UCR to provide a clear ## Real-World Example: BlackRock -BlackRock offers various mutual funds and ETFs, many of which are benchmarked against major indices like the S&P 500 or the MSCI World [Index](../i/index.md). They use metrics like the [Upside](../u/upside.md) Capture Ratio in their performance reporting to highlight how well their funds perform compared to these benchmarks during periods of [market](../m/market.md) gains. More information can be found on their [website](https://www.blackrock.com). +BlackRock offers various mutual funds and ETFs, many of which are benchmarked against major indices like the S&P 500 or the MSCI World [Index](../i/index_instrument.md). They use metrics like the [Upside](../u/upside.md) Capture Ratio in their performance reporting to highlight how well their funds perform compared to these benchmarks during periods of [market](../m/market.md) gains. More information can be found on their [website](https://www.blackrock.com). ## Conclusion diff --git a/en/pedia/u/upside_downside_gap_three_methods.md b/en/pedia/u/upside_downside_gap_three_methods.md index ca15c27f..9c87fe69 100644 --- a/en/pedia/u/upside_downside_gap_three_methods.md +++ b/en/pedia/u/upside_downside_gap_three_methods.md @@ -24,7 +24,7 @@ Traders typically look for confirmation before entering a position. They may con 1. **Entry Point**: Enter a long position after the formation of the fifth [candlestick](../c/candlestick.md). 2. **Stop Loss**: Place a stop loss below the low of the third [candlestick](../c/candlestick.md) to manage [risk](../r/risk.md). -3. **Target Price**: Set a target price based on previous resistance levels or use [technical indicators](../t/technical_indicator.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) to identify [overbought](../o/overbought.md) conditions. +3. **Target Price**: Set a target price based on previous resistance levels or use [technical indicators](../t/technical_indicator.md) like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) to identify [overbought](../o/overbought.md) conditions. ### Example diff --git a/en/pedia/u/upside_gap_two_crows.md b/en/pedia/u/upside_gap_two_crows.md index d6267276..8a25eb96 100644 --- a/en/pedia/u/upside_gap_two_crows.md +++ b/en/pedia/u/upside_gap_two_crows.md @@ -50,7 +50,7 @@ The effectiveness of the [Upside](../u/upside.md) Gap Two Crows pattern can be i [Volume](../v/volume.md) can play a critical role in confirming the pattern. A decline in [volume](../v/volume.md) during the formation of the pattern might weaken the reliability of the signal. Conversely, a surge in [volume](../v/volume.md) typically enhances the pattern's credibility. ### Complementary Indicators -It's often recommended to use the [Upside](../u/upside.md) Gap Two Crows pattern in conjunction with other [technical indicators](../t/technical_indicators.md) to improve the reliability of the signal. For instance, indicators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Averages, or MACD can provide additional context to the [price action](../p/price_action.md). +It's often recommended to use the [Upside](../u/upside.md) Gap Two Crows pattern in conjunction with other [technical indicators](../t/technical_indicators.md) to improve the reliability of the signal. For instance, indicators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Averages, or MACD can provide additional context to the [price action](../p/price_action.md). ## Conclusion diff --git a/en/pedia/u/upside_market_indicators.md b/en/pedia/u/upside_market_indicators.md index 105dc9e6..daeaefb7 100644 --- a/en/pedia/u/upside_market_indicators.md +++ b/en/pedia/u/upside_market_indicators.md @@ -15,7 +15,7 @@ Moving averages can signal [upside potential](../u/upside_potential_in_trading.m #### Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) measures the speed and change of price movements. The RSI oscillates between 0 and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) measures the speed and change of price movements. The RSI oscillates between 0 and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. **Calculation:** RSI = 100 - (100 / (1 + RS)), where RS ([Relative Strength](../r/relative_strength.md)) = Average [Gain](../g/gain.md) / Average Loss. diff --git a/en/pedia/u/upside_market_potential.md b/en/pedia/u/upside_market_potential.md index 2ea4e30d..1ce44787 100644 --- a/en/pedia/u/upside_market_potential.md +++ b/en/pedia/u/upside_market_potential.md @@ -24,7 +24,7 @@ Identifying [upside](../u/upside.md) [market](../m/market.md) potential in [algo #### Tools for Technical Analysis - **Moving Averages**: Identify long-term trends by smoothing out price data. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **[Bollinger Bands](../b/bollinger_bands.md)**: Provide a [range](../r/range.md) within which a [security](../s/security.md)'s price is likely to [trade](../t/trade.md). ### Sentiment Analysis @@ -43,7 +43,7 @@ Identifying [upside](../u/upside.md) [market](../m/market.md) potential in [algo #### Types of Market Indicators -- **[Leading Indicators](../l/leading_indicators.md)**: Predict future [market](../m/market.md) movements, e.g., Consumer Confidence [Index](../i/index.md). +- **[Leading Indicators](../l/leading_indicators.md)**: Predict future [market](../m/market.md) movements, e.g., Consumer Confidence [Index](../i/index_instrument.md). - **[Lagging Indicators](../l/lagging_indicators.md)**: Follow [market](../m/market.md) trends, confirming what has already occurred, e.g., [Unemployment Rate](../u/unemployment_rate.md). - **Coincident Indicators**: Move concurrently with the [market](../m/market.md)'s overall direction, e.g., Gross Domestic Product (GDP). diff --git a/en/pedia/u/upside_market_risk.md b/en/pedia/u/upside_market_risk.md index dd3cf970..5fc146e7 100644 --- a/en/pedia/u/upside_market_risk.md +++ b/en/pedia/u/upside_market_risk.md @@ -12,7 +12,7 @@ From a [risk management](../r/risk_management.md) perspective, it's essential to ### Active vs. Passive Management -Active managers seek to [outperform](../o/outperform.md) the [market](../m/market.md) through diligent research, [market timing](../m/market_timing.md), and stock selection, taking positions that they believe [will](../w/will.md) capture more [upside potential](../u/upside_potential_in_trading.md). On the other hand, passive managers may focus on tracking a [benchmark](../b/benchmark.md) [index](../i/index.md). In periods of strong [market](../m/market.md) performance, active managers can significantly differentiate themselves by successfully navigating [upside](../u/upside.md) risks, whereas passive strategies [will](../w/will.md) only capture [market](../m/market.md)-level gains. +Active managers seek to [outperform](../o/outperform.md) the [market](../m/market.md) through diligent research, [market timing](../m/market_timing.md), and stock selection, taking positions that they believe [will](../w/will.md) capture more [upside potential](../u/upside_potential_in_trading.md). On the other hand, passive managers may focus on tracking a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). In periods of strong [market](../m/market.md) performance, active managers can significantly differentiate themselves by successfully navigating [upside](../u/upside.md) risks, whereas passive strategies [will](../w/will.md) only capture [market](../m/market.md)-level gains. ### Behavioral Finance @@ -42,7 +42,7 @@ Quantitative analysts (quants) and [algorithmic trading](../a/algorithmic_tradin ### Investment Products -Several financial products are designed to harness [upside](../u/upside.md) [market risk](../m/market_risk.md). [Leveraged ETFs](../l/leveraged_etfs.md), for example, amplify the returns of a [benchmark](../b/benchmark.md) [index](../i/index.md), providing an opportunity to capture outsized gains in bullish markets. Conversely, these products also heighten exposure to [volatility](../v/volatility.md) and can lead to substantial losses if the [market](../m/market.md) turns. +Several financial products are designed to harness [upside](../u/upside.md) [market risk](../m/market_risk.md). [Leveraged ETFs](../l/leveraged_etfs.md), for example, amplify the returns of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), providing an opportunity to capture outsized gains in bullish markets. Conversely, these products also heighten exposure to [volatility](../v/volatility.md) and can lead to substantial losses if the [market](../m/market.md) turns. ## Case Studies diff --git a/en/pedia/u/upside_tasuki_gap.md b/en/pedia/u/upside_tasuki_gap.md index 72216486..87ef8314 100644 --- a/en/pedia/u/upside_tasuki_gap.md +++ b/en/pedia/u/upside_tasuki_gap.md @@ -33,7 +33,7 @@ To effectively use the [Upside](../u/upside.md) Tasuki Gap pattern in trading, o The reliability of the [Upside](../u/upside.md) Tasuki Gap can be enhanced by using it in conjunction with other [technical indicators](../t/technical_indicator.md) such as: - **Moving Averages**: To confirm the [trend](../t/trend.md) direction. - **[Volume Analysis](../v/volume_analysis.md)**: To gauge the strength behind the pattern. Higher volumes during the formation of the pattern add credibility. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: To assess [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: To assess [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. ## Example Scenario diff --git a/en/pedia/u/upside_volume_breakout.md b/en/pedia/u/upside_volume_breakout.md index 0b31a540..cb0874f9 100644 --- a/en/pedia/u/upside_volume_breakout.md +++ b/en/pedia/u/upside_volume_breakout.md @@ -21,7 +21,7 @@ An [upside](../u/upside.md) [volume](../v/volume.md) [breakout](../b/breakout.md ## Identifying Upside Volume Breakouts 1. **[Chart Patterns](../c/chart_patterns.md)**: Look for [chart patterns](../c/chart_patterns.md) that indicate pent-up buying pressure, such as ascending triangles, cup-and-[handle](../h/handle.md) formations, or other recognizable setups where resistance levels are identified. -2. **[Technical Indicators](../t/technical_indicators.md)**: Utilize [technical indicators](../t/technical_indicators.md) like Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and On Balance [Volume](../v/volume.md) (OBV) to help confirm breakouts. +2. **[Technical Indicators](../t/technical_indicators.md)**: Utilize [technical indicators](../t/technical_indicators.md) like Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and On Balance [Volume](../v/volume.md) (OBV) to help confirm breakouts. 3. **[Volume Analysis](../v/volume_analysis.md)**: Compare the [volume](../v/volume.md) during the [breakout](../b/breakout.md) to average daily [volume](../v/volume.md). A significant increase in [volume](../v/volume.md) suggests the [breakout](../b/breakout.md) is genuine. ## Trading Strategies for Upside Volume Breakouts diff --git a/en/pedia/u/upstream_capital_costs_index_(ucci).md b/en/pedia/u/upstream_capital_costs_index_(ucci).md index 7a8e86b2..ff54ffa0 100644 --- a/en/pedia/u/upstream_capital_costs_index_(ucci).md +++ b/en/pedia/u/upstream_capital_costs_index_(ucci).md @@ -1,17 +1,17 @@ # Upstream Capital Costs Index (UCCI) -The [Upstream](../u/upstream.md) [Capital](../c/capital.md) Costs [Index](../i/index.md) (UCCI) is a specialized [index](../i/index.md) designed to measure the changes in [capital](../c/capital.md) costs for the [upstream](../u/upstream.md) oil and gas [industry](../i/industry.md). This [index](../i/index.md) is an essential tool for stakeholders in the [energy sector](../e/energy_sector.md), including investors, analysts, and corporate planners, as it provides a standardized way to understand the fluctuations in the costs associated with exploration, development, and production activities. +The [Upstream](../u/upstream.md) [Capital](../c/capital.md) Costs [Index](../i/index_instrument.md) (UCCI) is a specialized [index](../i/index_instrument.md) designed to measure the changes in [capital](../c/capital.md) costs for the [upstream](../u/upstream.md) oil and gas [industry](../i/industry.md). This [index](../i/index_instrument.md) is an essential tool for stakeholders in the [energy sector](../e/energy_sector.md), including investors, analysts, and corporate planners, as it provides a standardized way to understand the fluctuations in the costs associated with exploration, development, and production activities. ### Definition and Components -The UCCI tracks cost variations over time, specifically targeting the [upstream](../u/upstream.md) portion of the oil and gas [industry](../i/industry.md). The [index](../i/index.md) includes a variety of cost components such as drilling, production equipment, engineering services, and other materials required for [upstream](../u/upstream.md) operations. These components are [weighted](../w/weighted.md) to reflect their relative importance in the total cost structure of a typical [upstream](../u/upstream.md) project. +The UCCI tracks cost variations over time, specifically targeting the [upstream](../u/upstream.md) portion of the oil and gas [industry](../i/industry.md). The [index](../i/index_instrument.md) includes a variety of cost components such as drilling, production equipment, engineering services, and other materials required for [upstream](../u/upstream.md) operations. These components are [weighted](../w/weighted.md) to reflect their relative importance in the total cost structure of a typical [upstream](../u/upstream.md) project. ### Importance of UCCI Understanding the UCCI is crucial for several reasons: 1. **Cost Management:** Companies in the oil and gas sector can use the UCCI to [benchmark](../b/benchmark.md) their costs against [industry](../i/industry.md) averages and identify areas where they might be overspending. -2. **Budgeting and [Forecasting](../f/forecasting.md):** The [index](../i/index.md) can help in making more accurate [budget](../b/budget.md) forecasts by providing insight into anticipated cost trends. +2. **Budgeting and [Forecasting](../f/forecasting.md):** The [index](../i/index_instrument.md) can help in making more accurate [budget](../b/budget.md) forecasts by providing insight into anticipated cost trends. 3. **Investment Decisions:** Investors can use UCCI data to make more informed decisions regarding where and when to allocate resources in the [upstream](../u/upstream.md) oil and gas sector. 4. **Contract Negotiations:** The UCCI can serve as a reference point for negotiating contracts with suppliers and contractors, as it reflects current [market](../m/market.md) conditions. @@ -25,11 +25,11 @@ The calculation of the UCCI involves several steps: 1. **Data Collection:** Data is gathered from various sources, including [industry](../i/industry.md) reports, supplier surveys, and cost estimation models. This data covers a wide [range](../r/range.md) of cost elements like labor, materials, equipment, and services. 2. **Weighting:** Each cost component is assigned a weight based on its proportion of the total [capital expenditure](../c/capital_expenditure.md) in a typical [upstream](../u/upstream.md) project. These weights are periodically reviewed and adjusted to reflect changes in [industry](../i/industry.md) practices and technologies. -3. **[Index](../i/index.md) Calculation:** The [weighted](../w/weighted.md) values of the individual cost components are aggregated to create the overall UCCI. This aggregate [value](../v/value.md) is then compared to the base period [value](../v/value.md) to determine the [index](../i/index.md) level. +3. **[Index](../i/index_instrument.md) Calculation:** The [weighted](../w/weighted.md) values of the individual cost components are aggregated to create the overall UCCI. This aggregate [value](../v/value.md) is then compared to the base period [value](../v/value.md) to determine the [index](../i/index_instrument.md) level. ### Major Cost Components -The UCCI includes various cost categories, each contributing differently to the total [index](../i/index.md). Here are some of the major components: +The UCCI includes various cost categories, each contributing differently to the total [index](../i/index_instrument.md). Here are some of the major components: 1. **Drilling Costs:** This includes the costs of rigs, tubular goods (pipes and casings), and other drilling equipment. 2. **Engineering and [Project Management](../p/project_management.md):** Costs associated with designing, planning, and managing [upstream](../u/upstream.md) projects. @@ -42,7 +42,7 @@ The UCCI includes various cost categories, each contributing differently to the The UCCI has a wide [range](../r/range.md) of applications across different areas of the oil and gas [industry](../i/industry.md): 1. **Project Evaluation:** Companies use the UCCI to assess the viability of new projects by comparing expected costs against historical trends. -2. **[Performance Benchmarking](../p/performance_benchmarking.md):** Firms can [benchmark](../b/benchmark.md) their cost performance against the [index](../i/index.md) to identify inefficiencies and areas for improvement. +2. **[Performance Benchmarking](../p/performance_benchmarking.md):** Firms can [benchmark](../b/benchmark.md) their cost performance against the [index](../i/index_instrument.md) to identify inefficiencies and areas for improvement. 3. **[Market](../m/market.md) Analysis:** Analysts and investors use UCCI data to understand broader [market](../m/market.md) trends and the potential impact of cost changes on the [industry](../i/industry.md). 4. **Regulatory Compliance:** The UCCI can be used to ensure compliance with regulatory requirements related to cost reporting and [disclosure](../d/disclosure.md). @@ -58,9 +58,9 @@ The UCCI offers several advantages: Despite its advantages, the UCCI has some limitations: -1. **Data Quality:** The accuracy of the [index](../i/index.md) depends on the quality and comprehensiveness of the [underlying](../u/underlying.md) data. +1. **Data Quality:** The accuracy of the [index](../i/index_instrument.md) depends on the quality and comprehensiveness of the [underlying](../u/underlying.md) data. 2. **[Lagging Indicator](../l/lagging_indicator.md):** The UCCI may reflect past cost trends that do not fully capture real-time [market](../m/market.md) conditions. -3. **Regional Variations:** The [index](../i/index.md) might not fully account for regional variations in costs, which can be significant in the global oil and gas [industry](../i/industry.md). +3. **Regional Variations:** The [index](../i/index_instrument.md) might not fully account for regional variations in costs, which can be significant in the global oil and gas [industry](../i/industry.md). ### Regional and Sector Variations @@ -68,7 +68,7 @@ While the UCCI provides a broad overview of [upstream](../u/upstream.md) [capita ### Future Outlook -The future of the UCCI [will](../w/will.md) likely involve greater integration of real-time data and advanced analytics. With the advent of digital technologies and the increasing availability of data, the accuracy and relevance of the UCCI are expected to improve. Moreover, as the [industry](../i/industry.md) evolves, there [will](../w/will.md) be a need to continuously update the [index](../i/index.md) to reflect new cost drivers and technological advancements. +The future of the UCCI [will](../w/will.md) likely involve greater integration of real-time data and advanced analytics. With the advent of digital technologies and the increasing availability of data, the accuracy and relevance of the UCCI are expected to improve. Moreover, as the [industry](../i/industry.md) evolves, there [will](../w/will.md) be a need to continuously update the [index](../i/index_instrument.md) to reflect new cost drivers and technological advancements. ### Key Takeaways diff --git a/en/pedia/u/uptick_volume.md b/en/pedia/u/uptick_volume.md index 190fc435..3cc8db64 100644 --- a/en/pedia/u/uptick_volume.md +++ b/en/pedia/u/uptick_volume.md @@ -51,7 +51,7 @@ In [momentum trading](../m/momentum_trading.md), traders focus on [stocks](../s/ ### Indicator Development -Technical analysts often employ indicators that incorporate [uptick](../u/uptick.md) [volume](../v/volume.md). One popular example is the [Money Flow](../m/money_flow.md) [Index](../i/index.md) (MFI), which uses both price and [volume](../v/volume.md) data—including [uptick](../u/uptick.md) [volume](../v/volume.md)—to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +Technical analysts often employ indicators that incorporate [uptick](../u/uptick.md) [volume](../v/volume.md). One popular example is the [Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md) (MFI), which uses both price and [volume](../v/volume.md) data—including [uptick](../u/uptick.md) [volume](../v/volume.md)—to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. ### Risk Management diff --git a/en/pedia/u/uptick_volume_analysis.md b/en/pedia/u/uptick_volume_analysis.md index f7afa66f..dddd90b1 100644 --- a/en/pedia/u/uptick_volume_analysis.md +++ b/en/pedia/u/uptick_volume_analysis.md @@ -22,7 +22,7 @@ To effectively analyze [uptick volume](../u/uptick_volume.md), traders often use a combination of mathematical calculations and algorithms. Here are some common techniques: -1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: RSI measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. It includes [uptick volume](../u/uptick_volume.md) in its calculations. +1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: RSI measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. It includes [uptick volume](../u/uptick_volume.md) in its calculations. 2. **On-Balance [Volume](../v/volume.md) (OBV)**: OBV uses cumulative [volume](../v/volume.md) to predict price changes. It adds the day's [volume](../v/volume.md) to the cumulative total when the price closes higher and subtracts it when the price closes lower. 3. **[Volume](../v/volume.md) [Weighted Average](../w/weighted_average.md) Price (VWAP)**: VWAP calculates the average price of a [security](../s/security.md), [weighted](../w/weighted.md) by [volume](../v/volume.md), throughout a [trading session](../t/trading_session.md). It helps assess the [efficiency](../e/efficiency.md) of buys and sells. diff --git a/en/pedia/u/uptrend.md b/en/pedia/u/uptrend.md index 8d86e896..313cd403 100644 --- a/en/pedia/u/uptrend.md +++ b/en/pedia/u/uptrend.md @@ -26,7 +26,7 @@ Traders use various [technical indicators](../t/technical_indicator.md) to ident - **Simple Moving Average (SMA):** An SMA calculates the average price over a specific period and smooths out price data to identify the [trend](../t/trend.md) direction. - **Exponential Moving Average (EMA):** EMA gives more weight to recent prices, making it more responsive to new information and useful for detecting trends more quickly. -2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** +2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** - RSI measures the speed and change of price movements to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. An RSI above 50 typically supports an uptrend. 3. **MACD (Moving Average Convergence [Divergence](../d/divergence.md)):** @@ -83,7 +83,7 @@ While trading in an uptrend can be [lucrative](../l/lucrative.md), it is not wit ## Real-World Example: S&P 500 Index -The S&P 500 [index](../i/index.md) is a perfect example to illustrate a long-term uptrend. Over the past several decades, despite periods of [volatility](../v/volatility.md) and [market](../m/market.md) corrections, the S&P 500 has exhibited a long-term uptrend with higher highs and higher lows. +The S&P 500 [index](../i/index_instrument.md) is a perfect example to illustrate a long-term uptrend. Over the past several decades, despite periods of [volatility](../v/volatility.md) and [market](../m/market.md) corrections, the S&P 500 has exhibited a long-term uptrend with higher highs and higher lows. Link to S&P Dow Jones Indices: [S&P Dow Jones](https://www.spglobal.com/spdji/) diff --git a/en/pedia/u/uptrend_analysis.md b/en/pedia/u/uptrend_analysis.md index f5b6e62b..3853bc84 100644 --- a/en/pedia/u/uptrend_analysis.md +++ b/en/pedia/u/uptrend_analysis.md @@ -24,7 +24,7 @@ Moving averages smooth out price data to create a single flow line that makes it ### 2. Moving Average Convergence Divergence (MACD) The MACD [indicator](../i/indicator.md) measures the difference between two EMAs (usually the 12-day and 26-day EMAs). A signal line (9-day EMA) is plotted on top to indicate buy or sell signals. -3. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)** +3. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)** The RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. Values above 70 generally indicate [overbought](../o/overbought.md) conditions, while values below 30 indicate [oversold](../o/oversold.md) conditions. ### 4. Average Directional Index (ADX) @@ -48,7 +48,7 @@ The ADX measures the strength of a [trend](../t/trend.md) but does not indicate #### Example Algorithm ```python def trend_following_strategy(prices, short_window=50, long_window=200): - signals = pd.DataFrame([index](../i/index.md)=prices.[index](../i/index.md)) + signals = pd.DataFrame([index](../i/index_instrument.md)=prices.[index](../i/index_instrument.md)) signals['price'] = prices signals['short_moving_avg'] = prices.rolling(window=short_window, min_periods=1).mean() signals['long_moving_avg'] = prices.rolling(window=long_window, min_periods=1).mean() @@ -68,7 +68,7 @@ Algorithms can detect price breakouts above resistance levels or significant pas #### Example Algorithm ```python def breakout_strategy(prices, window=20, threshold=1.02): - signals = pd.DataFrame([index](../i/index.md)=prices.[index](../i/index.md)) + signals = pd.DataFrame([index](../i/index_instrument.md)=prices.[index](../i/index_instrument.md)) signals['price'] = prices signals['rolling_max'] = prices.rolling(window=window, min_periods=1).max() signals['signal'] = 0 @@ -83,7 +83,7 @@ This strategy uses two moving averages of different lengths. A buy signal is gen #### Example Algorithm ```python def moving_average_crossover_strategy(prices, short_window=40, long_window=100): - signals = pd.DataFrame([index](../i/index.md)=prices.[index](../i/index.md)) + signals = pd.DataFrame([index](../i/index_instrument.md)=prices.[index](../i/index_instrument.md)) signals['price'] = prices signals['short_moving_avg'] = prices.rolling(window=short_window, min_periods=1).mean() signals['long_moving_avg'] = prices.rolling(window=long_window, min_periods=1).mean() diff --git a/en/pedia/u/uptrend_indicators.md b/en/pedia/u/uptrend_indicators.md index 17bb9be4..d14d33ef 100644 --- a/en/pedia/u/uptrend_indicators.md +++ b/en/pedia/u/uptrend_indicators.md @@ -30,7 +30,7 @@ A [trendline](../t/trendline.md) that connects successively higher lows is an [u ## Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) measures the speed and change of price movements. It oscillates between 0 and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions: +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) measures the speed and change of price movements. It oscillates between 0 and 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions: \[ \text{RSI} = 100 - \left(\frac{100}{1 + RS}\right) \] diff --git a/en/pedia/u/uptrend_trading_strategies.md b/en/pedia/u/uptrend_trading_strategies.md index 51c96e34..1c5605a6 100644 --- a/en/pedia/u/uptrend_trading_strategies.md +++ b/en/pedia/u/uptrend_trading_strategies.md @@ -17,7 +17,7 @@ An [uptrend](../u/uptrend.md) is characterized by a series of higher highs and h - Signal Line - [Histogram](../h/histogram.md) -3. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** +3. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** - Measures the speed and change of price movements 4. **Trendlines:** diff --git a/en/pedia/u/utilities_industry_etf.md b/en/pedia/u/utilities_industry_etf.md index e01401f5..5464a7f6 100644 --- a/en/pedia/u/utilities_industry_etf.md +++ b/en/pedia/u/utilities_industry_etf.md @@ -1,6 +1,6 @@ # Utilities Industry ETF -An [Exchange](../e/exchange.md)-Traded [Fund](../f/fund.md) (ETF) is a type of [security](../s/security.md) that involves a collection of securities—such as [stocks](../s/stock.md)—that often tracks an [underlying](../u/underlying.md) [index](../i/index.md). However, a Utilities [Industry](../i/industry.md) ETF is specifically focused on companies in the [utilities sector](../u/utilities_sector.md). The [utilities sector](../u/utilities_sector.md) includes companies that provide essential public utilities such as electricity, natural gas, water, and sewage services. These businesses are often considered to be fundamental to national [infrastructure](../i/infrastructure.md) and are typically subject to government regulation due to their monopolistic tendencies and the critical nature of their services. +An [Exchange](../e/exchange.md)-Traded [Fund](../f/fund.md) (ETF) is a type of [security](../s/security.md) that involves a collection of securities—such as [stocks](../s/stock.md)—that often tracks an [underlying](../u/underlying.md) [index](../i/index_instrument.md). However, a Utilities [Industry](../i/industry.md) ETF is specifically focused on companies in the [utilities sector](../u/utilities_sector.md). The [utilities sector](../u/utilities_sector.md) includes companies that provide essential public utilities such as electricity, natural gas, water, and sewage services. These businesses are often considered to be fundamental to national [infrastructure](../i/infrastructure.md) and are typically subject to government regulation due to their monopolistic tendencies and the critical nature of their services. ## Understanding Utilities Industry ETF @@ -24,7 +24,7 @@ Utilities [Industry](../i/industry.md) ETFs can vary based on their specific foc 2. **Sub-Sector Utilities ETFs**: These ETFs may focus on specific segments within the utilities [market](../m/market.md), such as electric utilities, water utilities, or renewable energy companies. For instance, the First [Trust](../t/trust.md) [Water ETF](../w/water_etf.md) (FIW) focuses specifically on water-related businesses. -3. **Leveraged and Inverse Utilities ETFs**: These ETFs aim to deliver multiples of the daily performance of the [utilities sector](../u/utilities_sector.md) ([leveraged ETFs](../l/leveraged_etfs.md)) or the opposite performance ([inverse ETFs](../i/inverse_etfs.md)). An example is the ProShares Ultra Utilities ETF (UPW), which seeks daily investment results that correspond to twice (200%) the daily performance of the Dow Jones U.S. Utilities [Index](../i/index.md). +3. **Leveraged and Inverse Utilities ETFs**: These ETFs aim to deliver multiples of the daily performance of the [utilities sector](../u/utilities_sector.md) ([leveraged ETFs](../l/leveraged_etfs.md)) or the opposite performance ([inverse ETFs](../i/inverse_etfs.md)). An example is the ProShares Ultra Utilities ETF (UPW), which seeks daily investment results that correspond to twice (200%) the daily performance of the Dow Jones U.S. Utilities [Index](../i/index_instrument.md). 4. **Global Utilities ETFs**: These ETFs provide exposure to [utility](../u/utility.md) companies worldwide and can include firms outside of the United States. The [iShares](../i/ishares.md) Global Utilities ETF (JXI) is an example. @@ -32,7 +32,7 @@ Utilities [Industry](../i/industry.md) ETFs can vary based on their specific foc ### 1. Utilities Select Sector SPDR Fund (XLU) -- **Overview**: XLU seeks to provide investment results that, before expenses, generally correspond to the price and [yield](../y/yield.md) performance of the Utilities Select Sector [Index](../i/index.md). +- **Overview**: XLU seeks to provide investment results that, before expenses, generally correspond to the price and [yield](../y/yield.md) performance of the Utilities Select Sector [Index](../i/index_instrument.md). - **Website**: [Utilities Select Sector SPDR Fund (XLU)](https://www.ssga.com/us/en/individual/etfs/funds/the-utilities-select-sector-spdr-fund-xlu) - **Key Features**: - Broad exposure to the U.S. [utilities sector](../u/utilities_sector.md). @@ -41,7 +41,7 @@ Utilities [Industry](../i/industry.md) ETFs can vary based on their specific foc ### 2. Vanguard Utilities ETF (VPU) -- **Overview**: VPU seeks to track the performance of the MSCI US Investable [Market](../m/market.md) Utilities 25/50 [Index](../i/index.md). +- **Overview**: VPU seeks to track the performance of the MSCI US Investable [Market](../m/market.md) Utilities 25/50 [Index](../i/index_instrument.md). - **Website**: [Vanguard Utilities ETF (VPU)](https://investor.vanguard.com/etf/profile/VPU) - **Key Features**: - Low [expense ratio](../e/expense_ratio.md) compared to other utilities ETFs. @@ -50,7 +50,7 @@ Utilities [Industry](../i/industry.md) ETFs can vary based on their specific foc ### 3. iShares U.S. Utilities ETF (IDU) -- **Overview**: IDU seeks to track the investment results of an [index](../i/index.md) composed of U.S. equities in the [utilities sector](../u/utilities_sector.md). +- **Overview**: IDU seeks to track the investment results of an [index](../i/index_instrument.md) composed of U.S. equities in the [utilities sector](../u/utilities_sector.md). - **Website**: [iShares U.S. Utilities ETF (IDU)](https://www.ishares.com/us/products/239716) - **Key Features**: - Diversified exposure to the U.S. [utilities sector](../u/utilities_sector.md). @@ -59,7 +59,7 @@ Utilities [Industry](../i/industry.md) ETFs can vary based on their specific foc ### 4. First Trust Utilities AlphaDEX Fund (FXU) -- **Overview**: FXU seeks to provide investment results that correspond generally to the price and [yield](../y/yield.md) (before fees and expenses) of the StrataQuant Utilities [Index](../i/index.md). +- **Overview**: FXU seeks to provide investment results that correspond generally to the price and [yield](../y/yield.md) (before fees and expenses) of the StrataQuant Utilities [Index](../i/index_instrument.md). - **Website**: [First Trust Utilities AlphaDEX Fund (FXU)](https://www.ftportfolios.com/Retail/ETF/ETFsummary.aspx?Ticker=FXU) - **Key Features**: - Utilizes a unique stock selection methodology. diff --git a/en/pedia/v/v-shaped_bottom.md b/en/pedia/v/v-shaped_bottom.md index eabe1849..66f76ecd 100644 --- a/en/pedia/v/v-shaped_bottom.md +++ b/en/pedia/v/v-shaped_bottom.md @@ -8,7 +8,7 @@ A **V-shaped bottom** is a [technical analysis](../t/technical_analysis.md) patt The first [leg](../l/leg.md) of the V-shaped bottom is characterized by a steep decline in price. This is usually driven by negative [market sentiment](../m/market_sentiment.md), poor [earnings](../e/earnings.md) reports, macroeconomic issues, or other factors leading to panic selling. The decline is rapid and typically does not provide significant support or resistance levels along the way. ### Sharp Reversal -At the lowest point of the [downtrend](../d/downtrend.md), [trading algorithms](../t/trading_algorithms.md) may identify [oversold](../o/oversold.md) conditions using indicators such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or moving average convergence [divergence](../d/divergence.md) (MACD). The [reversal](../r/reversal.md) is usually abrupt, accompanied by a spike in trading [volume](../v/volume.md), indicating [robust](../r/robust.md) buying [interest](../i/interest.md). +At the lowest point of the [downtrend](../d/downtrend.md), [trading algorithms](../t/trading_algorithms.md) may identify [oversold](../o/oversold.md) conditions using indicators such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or moving average convergence [divergence](../d/divergence.md) (MACD). The [reversal](../r/reversal.md) is usually abrupt, accompanied by a spike in trading [volume](../v/volume.md), indicating [robust](../r/robust.md) buying [interest](../i/interest.md). ### Equally Sharp Uptrend The second [leg](../l/leg.md) is marked by a swift recovery in price. This recovery often occurs faster than the preceding decline, driven by renewed [investor](../i/investor.md) confidence or positive news flow. Traders using [momentum](../m/momentum.md)-based algorithms focus on this phase to capture quick gains. @@ -34,7 +34,7 @@ A sudden spike in [volume](../v/volume.md) during the bottom phase is a critical ## Real-World Example -A notable example of a V-shaped bottom is the 2008 [financial crisis](../f/financial_crisis.md). The S&P 500 [index](../i/index.md) saw a sharp decline from October 2007 to March 2009. This was followed by an equally sharp recovery, marking one of the most significant V-shaped bottoms in modern [market](../m/market.md) history. +A notable example of a V-shaped bottom is the 2008 [financial crisis](../f/financial_crisis.md). The S&P 500 [index](../i/index_instrument.md) saw a sharp decline from October 2007 to March 2009. This was followed by an equally sharp recovery, marking one of the most significant V-shaped bottoms in modern [market](../m/market.md) history. ## Trading Strategies diff --git a/en/pedia/v/v-shaped_market_patterns.md b/en/pedia/v/v-shaped_market_patterns.md index ca478a90..c36135bb 100644 --- a/en/pedia/v/v-shaped_market_patterns.md +++ b/en/pedia/v/v-shaped_market_patterns.md @@ -22,7 +22,7 @@ To identify V-Shaped patterns effectively, traders often rely on a combination o ### Technical Indicators 1. **Moving Averages**: Moving averages can help smooth out price data to detect sudden changes indicative of a V-Shape. -2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: RSI can identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions that often precede sharp price reversals. +2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: RSI can identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions that often precede sharp price reversals. 3. **[Volume Indicators](../v/volume_indicators.md)**: Analyzing [volume](../v/volume.md) can help confirm the strength and validity of the price movement. ### Chart Patterns diff --git a/en/pedia/v/value-momentum_combination.md b/en/pedia/v/value-momentum_combination.md index e2d347dd..020be8f9 100644 --- a/en/pedia/v/value-momentum_combination.md +++ b/en/pedia/v/value-momentum_combination.md @@ -20,7 +20,7 @@ Warren Buffett is one of the most well-known proponents of [value investing](../ [Momentum trading](../m/momentum_trading.md), on the other hand, is based on the belief that [stocks](../s/stock.md) that have performed well in the past [will](../w/will.md) continue to perform well in the future, and those that have performed poorly [will](../w/will.md) continue to perform poorly. This strategy relies heavily on [market](../m/market.md) psychology and involves buying [stocks](../s/stock.md) that are trending upwards and selling those that are trending downwards. **Key Metrics for [Momentum Trading](../m/momentum_trading.md):** -1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** RSI measures the speed and change of price movements, generally to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** RSI measures the speed and change of price movements, generally to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. 2. **Moving Averages:** Traders often use short, medium, and long-term moving averages to identify trends. Commonly used moving averages include the 50-day and 200-day moving averages. 3. **Rate of Change (ROC):** This [momentum](../m/momentum.md) [indicator](../i/indicator.md) measures the [percentage change](../p/percentage_change.md) in price between the current price and the price a certain number of periods ago. 4. **[Volume](../v/volume.md):** High trading volumes can confirm the strength of a [trend](../t/trend.md). diff --git a/en/pedia/v/value-momentum_investing.md b/en/pedia/v/value-momentum_investing.md index 617ed69a..00f6f7e2 100644 --- a/en/pedia/v/value-momentum_investing.md +++ b/en/pedia/v/value-momentum_investing.md @@ -17,7 +17,7 @@ Key metrics often used in [value investing](../v/value_investing.md) include: [Momentum investing](../m/momentum_investing.md) involves capitalizing on the continuance of an existing [market](../m/market.md) [trend](../t/trend.md). A [momentum](../m/momentum.md) [investor](../i/investor.md) believes that the price of a stock that has been rising [will](../w/will.md) continue to rise due to the psychological and [collateral](../c/collateral.md) factors at play in the [market](../m/market.md). Key metrics in [momentum investing](../m/momentum_investing.md) include: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: A [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: A [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. - **Moving Averages (MA)**: These are used to smooth out price data to identify the direction of the [trend](../t/trend.md). - **Rate of Change (ROC)**: A [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the [percentage change](../p/percentage_change.md) in price over a given time period. diff --git a/en/pedia/v/value-momentum_investment_strategies.md b/en/pedia/v/value-momentum_investment_strategies.md index 24a2ec98..6029ae18 100644 --- a/en/pedia/v/value-momentum_investment_strategies.md +++ b/en/pedia/v/value-momentum_investment_strategies.md @@ -34,7 +34,7 @@ Numerous academic studies, including Fama and French's Three-[Factor](../f/facto ### Key Metrics 1. **[Price Momentum](../p/price_momentum.md)**: Often measured over periods ranging from 3 to 12 months, this metric identifies [stocks](../s/stock.md) with the highest returns over the specified period. -2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: A technical [indicator](../i/indicator.md) used to measure the magnitude of recent price changes. An RSI above 70 typically signals [overbought](../o/overbought.md) conditions, while an RSI below 30 indicates [oversold](../o/oversold.md) conditions. +2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: A technical [indicator](../i/indicator.md) used to measure the magnitude of recent price changes. An RSI above 70 typically signals [overbought](../o/overbought.md) conditions, while an RSI below 30 indicates [oversold](../o/oversold.md) conditions. 3. **Moving Averages**: [Stocks](../s/stock.md) trading above their moving averages (e.g., 50-day, 200-day) are considered in an upward [momentum](../m/momentum.md). ### Theoretical Background diff --git a/en/pedia/v/value-momentum_strategies.md b/en/pedia/v/value-momentum_strategies.md index 8211530e..2a1c5d2d 100644 --- a/en/pedia/v/value-momentum_strategies.md +++ b/en/pedia/v/value-momentum_strategies.md @@ -17,7 +17,7 @@ [Momentum investing](../m/momentum_investing.md) involves capitalizing on [market](../m/market.md) trends by buying securities that are trending upward and selling those that are trending downward. This strategy is based on the premise that securities that have outperformed in the past [will](../w/will.md) continue to do so. Key metrics employed in [momentum investing](../m/momentum_investing.md) include: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measures the speed and change of price movements to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measures the speed and change of price movements to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **12-Month Price [Return](../r/return.md)**: [Stocks](../s/stock.md) with high past returns over 12 months are considered to have strong [momentum](../m/momentum.md). - **Moving Averages**: Used to identify trends; for example, a [50-day moving average](../1/50-day_moving_average.md) crossing above a [200-day moving average](../1/200-day_moving_average.md) is a bullish signal. diff --git a/en/pedia/v/value_added_monthly_index_(vami).md b/en/pedia/v/value_added_monthly_index_(vami).md index 647ddf4c..90c42a49 100644 --- a/en/pedia/v/value_added_monthly_index_(vami).md +++ b/en/pedia/v/value_added_monthly_index_(vami).md @@ -1,12 +1,12 @@ # Value Added Monthly Index (VAMI) -The [Value Added](../v/value_added.md) Monthly [Index](../i/index.md) (VAMI) is a metric used in the financial and investment [industry](../i/industry.md) to track the performance of a hypothetical $1,000 investment over a specified period. This metric is widely employed by [hedge](../h/hedge.md) funds, mutual funds, [private equity](../p/private_equity.md) firms, and other investment vehicles to provide investors with a clear, graphical representation of the [fund](../f/fund.md)'s or investment's historical performance. +The [Value Added](../v/value_added.md) Monthly [Index](../i/index_instrument.md) (VAMI) is a metric used in the financial and investment [industry](../i/industry.md) to track the performance of a hypothetical $1,000 investment over a specified period. This metric is widely employed by [hedge](../h/hedge.md) funds, mutual funds, [private equity](../p/private_equity.md) firms, and other investment vehicles to provide investors with a clear, graphical representation of the [fund](../f/fund.md)'s or investment's historical performance. ## Understanding VAMI ### Definition -VAMI stands for [Value Added](../v/value_added.md) Monthly [Index](../i/index.md), and it effectively showcases the cumulative [return](../r/return.md) of an initial investment over time after [accounting](../a/accounting.md) for monthly profits and losses. It starts with an initial [value](../v/value.md) of a specific investment amount, typically $1,000, and adjusts this [value](../v/value.md) based on the monthly returns of the investment. +VAMI stands for [Value Added](../v/value_added.md) Monthly [Index](../i/index_instrument.md), and it effectively showcases the cumulative [return](../r/return.md) of an initial investment over time after [accounting](../a/accounting.md) for monthly profits and losses. It starts with an initial [value](../v/value.md) of a specific investment amount, typically $1,000, and adjusts this [value](../v/value.md) based on the monthly returns of the investment. ### Calculation @@ -119,4 +119,4 @@ Financial data providers, such as [Bloomberg](../b/bloomberg.md) and [Morningsta ## Conclusion -The [Value Added](../v/value_added.md) Monthly [Index](../i/index.md) (VAMI) is a crucial metric for investors, [fund](../f/fund.md) managers, and analysts in the financial [industry](../i/industry.md). It provides a straightforward and transparent means to track the performance of an investment over time, calculate cumulative returns, and compare different funds or strategies. By understanding and utilizing VAMI, stakeholders can make more informed decisions and better interpret investment results. \ No newline at end of file +The [Value Added](../v/value_added.md) Monthly [Index](../i/index_instrument.md) (VAMI) is a crucial metric for investors, [fund](../f/fund.md) managers, and analysts in the financial [industry](../i/industry.md). It provides a straightforward and transparent means to track the performance of an investment over time, calculate cumulative returns, and compare different funds or strategies. By understanding and utilizing VAMI, stakeholders can make more informed decisions and better interpret investment results. \ No newline at end of file diff --git a/en/pedia/v/value_drivers_in_trading.md b/en/pedia/v/value_drivers_in_trading.md index d249d93b..5052c03b 100644 --- a/en/pedia/v/value_drivers_in_trading.md +++ b/en/pedia/v/value_drivers_in_trading.md @@ -15,7 +15,7 @@ In the broad [scope](../s/scope.md) of [financial markets](../f/financial_market - High employment rates indicate economic strength, potentially boosting [investor](../i/investor.md) confidence. 3. **[Inflation](../i/inflation.md) Rates**: - - Measured by indices like the Consumer Price [Index](../i/index.md) (CPI). + - Measured by indices like the Consumer Price [Index](../i/index_instrument.md) (CPI). - [Inflation](../i/inflation.md) impacts [purchasing power](../p/purchasing_power.md) and can influence central [bank](../b/bank.md) policies. 4. **[Interest](../i/interest.md) Rates**: @@ -26,7 +26,7 @@ In the broad [scope](../s/scope.md) of [financial markets](../f/financial_market [Market sentiment](../m/market_sentiment.md) is the overall attitude of investors towards a particular [security](../s/security.md) or financial [market](../m/market.md). This psychological aspect can be a powerful [value](../v/value.md) driver, often driving prices beyond fundamentals due to collective behavior patterns. Tools to measure [market sentiment](../m/market_sentiment.md) include: -1. **[Volatility](../v/volatility.md) [Index](../i/index.md) (VIX)**: +1. **[Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX)**: - Often referred to as the "fear gauge," it measures [market](../m/market.md) expectations of near-term [volatility](../v/volatility.md). - High VIX values can indicate high [uncertainty](../u/uncertainty_in_trading.md) and potential for sharp [market](../m/market.md) movements. diff --git a/en/pedia/v/value_fund.md b/en/pedia/v/value_fund.md index b20f058e..eca67469 100644 --- a/en/pedia/v/value_fund.md +++ b/en/pedia/v/value_fund.md @@ -38,7 +38,7 @@ Once [undervalued](../u/undervalued.md) [stocks](../s/stock.md) are identified, ### Active Management -[Value](../v/value.md) funds are typically actively managed, meaning [fund](../f/fund.md) managers regularly monitor and adjust their [holdings](../h/holdings.md) based on [market](../m/market.md) conditions and new information. This contrasts with [index](../i/index.md) funds, which passively track a [market index](../m/market_index.md). +[Value](../v/value.md) funds are typically actively managed, meaning [fund](../f/fund.md) managers regularly monitor and adjust their [holdings](../h/holdings.md) based on [market](../m/market.md) conditions and new information. This contrasts with [index](../i/index_instrument.md) funds, which passively track a [market index](../m/market_index.md). ### Risk Management diff --git a/en/pedia/v/value_line_composite_index.md b/en/pedia/v/value_line_composite_index.md index cfc48151..7efab625 100644 --- a/en/pedia/v/value_line_composite_index.md +++ b/en/pedia/v/value_line_composite_index.md @@ -1,30 +1,30 @@ # Value Line Composite Index -The **[Value](../v/value.md) Line Composite [Index](../i/index.md)** is a stock [market index](../m/market_index.md) consisting of around 1,700 publicly traded companies from the NYSE, AMEX, [NASDAQ](../n/nasdaq.md), and over-the-counter markets. Created by [Value](../v/value.md) Line, Inc., the [index](../i/index.md) aims to [offer](../o/offer.md) a more inclusive representation of the broader [market](../m/market.md) compared to indices focused only on [large-cap stocks](../l/large_cap_stocks.md). This [index](../i/index.md) is less reliant on [market capitalization](../m/market_capitalization.md) and instead focuses on an equally-[weighted](../w/weighted.md) model, which means each stock in the [index](../i/index.md) is given an [equal weight](../e/equal_weight.md) regardless of its [market](../m/market.md) size. +The **[Value](../v/value.md) Line Composite [Index](../i/index_instrument.md)** is a stock [market index](../m/market_index.md) consisting of around 1,700 publicly traded companies from the NYSE, AMEX, [NASDAQ](../n/nasdaq.md), and over-the-counter markets. Created by [Value](../v/value.md) Line, Inc., the [index](../i/index_instrument.md) aims to [offer](../o/offer.md) a more inclusive representation of the broader [market](../m/market.md) compared to indices focused only on [large-cap stocks](../l/large_cap_stocks.md). This [index](../i/index_instrument.md) is less reliant on [market capitalization](../m/market_capitalization.md) and instead focuses on an equally-[weighted](../w/weighted.md) model, which means each stock in the [index](../i/index_instrument.md) is given an [equal weight](../e/equal_weight.md) regardless of its [market](../m/market.md) size. ## Structure and Methodology -The [Value](../v/value.md) Line Composite [Index](../i/index.md) is unique in its equally-[weighted](../w/weighted.md) structure. This methodology contrasts with [market](../m/market.md)-cap-[weighted](../w/weighted.md) indices like the S&P 500, where companies with larger [market](../m/market.md) caps have a greater influence on the [index](../i/index.md)'s performance. In an equally-[weighted](../w/weighted.md) [index](../i/index.md), every stock contributes equally, regardless of its [market capitalization](../m/market_capitalization.md). +The [Value](../v/value.md) Line Composite [Index](../i/index_instrument.md) is unique in its equally-[weighted](../w/weighted.md) structure. This methodology contrasts with [market](../m/market.md)-cap-[weighted](../w/weighted.md) indices like the S&P 500, where companies with larger [market](../m/market.md) caps have a greater influence on the [index](../i/index_instrument.md)'s performance. In an equally-[weighted](../w/weighted.md) [index](../i/index_instrument.md), every stock contributes equally, regardless of its [market capitalization](../m/market_capitalization.md). ### Calculation -The [index](../i/index.md) can be calculated using two primary methods: +The [index](../i/index_instrument.md) can be calculated using two primary methods: 1. **[Arithmetic Mean](../a/arithmetic_mean.md)**: An average of the daily percentage price changes of all [stocks](../s/stock.md). 2. **[Geometric Mean](../g/geometric_mean_in_trading.md)**: An average that takes the product of a set of numbers and then takes the nth root (where n is the total number of values). -In practice, the [Value](../v/value.md) Line Composite [Index](../i/index.md) uses the [arithmetic mean](../a/arithmetic_mean.md) for simplicity. +In practice, the [Value](../v/value.md) Line Composite [Index](../i/index_instrument.md) uses the [arithmetic mean](../a/arithmetic_mean.md) for simplicity. ### Rebalancing -The [index](../i/index.md) is rebalanced on a regular [basis](../b/basis.md) to ensure that each stock remains equally [weighted](../w/weighted.md). This involves adjusting the number of [shares](../s/shares.md) of each stock held in the [index](../i/index.md). +The [index](../i/index_instrument.md) is rebalanced on a regular [basis](../b/basis.md) to ensure that each stock remains equally [weighted](../w/weighted.md). This involves adjusting the number of [shares](../s/shares.md) of each stock held in the [index](../i/index_instrument.md). ## Historical Performance -Historically, the [Value](../v/value.md) Line Composite [Index](../i/index.md) has been an [indicator](../i/indicator.md) of the performance of a broad array of [stocks](../s/stock.md), providing a more diversified snapshot of the [market](../m/market.md) compared to more concentrated indices. By including a diverse set of [stocks](../s/stock.md) across different [market](../m/market.md) caps and sectors, it provides a comprehensive view of the overall [market](../m/market.md) performance. +Historically, the [Value](../v/value.md) Line Composite [Index](../i/index_instrument.md) has been an [indicator](../i/indicator.md) of the performance of a broad array of [stocks](../s/stock.md), providing a more diversified snapshot of the [market](../m/market.md) compared to more concentrated indices. By including a diverse set of [stocks](../s/stock.md) across different [market](../m/market.md) caps and sectors, it provides a comprehensive view of the overall [market](../m/market.md) performance. ## Components and Sectors -The [Value](../v/value.md) Line Composite [Index](../i/index.md) covers a wide [range](../r/range.md) of sectors including technology, health care, financial services, [consumer goods](../c/consumer_goods.md), and industrials among others. It includes large, mid, and small-cap companies, providing a more well-rounded view of the [market](../m/market.md). +The [Value](../v/value.md) Line Composite [Index](../i/index_instrument.md) covers a wide [range](../r/range.md) of sectors including technology, health care, financial services, [consumer goods](../c/consumer_goods.md), and industrials among others. It includes large, mid, and small-cap companies, providing a more well-rounded view of the [market](../m/market.md). ## Comparison with other Indices @@ -48,7 +48,7 @@ The [Value](../v/value.md) Line Composite [Index](../i/index.md) covers a wide [ ## Applications -The [Value](../v/value.md) Line Composite [Index](../i/index.md) is used by investors for a variety of purposes: +The [Value](../v/value.md) Line Composite [Index](../i/index_instrument.md) is used by investors for a variety of purposes: 1. **Benchmarking**: [Offering](../o/offering.md) a diversified [benchmark](../b/benchmark.md) for portfolio comparison. 2. **[Market](../m/market.md) Analysis**: Providing insights into broader [market](../m/market.md) trends. @@ -64,4 +64,4 @@ For more detailed information, including daily updates and in-depth research, vi ## Conclusion -The [Value](../v/value.md) Line Composite [Index](../i/index.md) offers a unique and inclusive perspective on the [market](../m/market.md), given its equal-[weighted](../w/weighted.md) composition and broad coverage of [stocks](../s/stock.md) across various sectors and [market](../m/market.md) caps. Its methodology and structure make it a valuable tool for understanding and analyzing the overall [market](../m/market.md) performance beyond the [scope](../s/scope.md) of large-cap-focused indices. \ No newline at end of file +The [Value](../v/value.md) Line Composite [Index](../i/index_instrument.md) offers a unique and inclusive perspective on the [market](../m/market.md), given its equal-[weighted](../w/weighted.md) composition and broad coverage of [stocks](../s/stock.md) across various sectors and [market](../m/market.md) caps. Its methodology and structure make it a valuable tool for understanding and analyzing the overall [market](../m/market.md) performance beyond the [scope](../s/scope.md) of large-cap-focused indices. \ No newline at end of file diff --git a/en/pedia/v/value_line_index.md b/en/pedia/v/value_line_index.md index d312519c..e84c4d25 100644 --- a/en/pedia/v/value_line_index.md +++ b/en/pedia/v/value_line_index.md @@ -1,61 +1,61 @@ # Value Line Index -The [Value](../v/value.md) Line [Index](../i/index.md) (VLI) is a stock [market index](../m/market_index.md) comprised of roughly 1,700 companies from the New York Stock [Exchange](../e/exchange.md), American Stock [Exchange](../e/exchange.md), [NASDAQ](../n/nasdaq.md), and [over-the-counter markets](../o/over-the-counter_markets.md). Unlike other [market](../m/market.md) indices that use [market capitalization](../m/market_capitalization.md) to weigh their components, the [Value](../v/value.md) Line [Index](../i/index.md) gives [equal weight](../e/equal_weight.md) to each of the [stocks](../s/stock.md) it tracks. This equal weighting provides a unique perspective on [market](../m/market.md) trends and stock performance, making it an interesting [index](../i/index.md) for both retail and institutional investors to follow. +The [Value](../v/value.md) Line [Index](../i/index_instrument.md) (VLI) is a stock [market index](../m/market_index.md) comprised of roughly 1,700 companies from the New York Stock [Exchange](../e/exchange.md), American Stock [Exchange](../e/exchange.md), [NASDAQ](../n/nasdaq.md), and [over-the-counter markets](../o/over-the-counter_markets.md). Unlike other [market](../m/market.md) indices that use [market capitalization](../m/market_capitalization.md) to weigh their components, the [Value](../v/value.md) Line [Index](../i/index_instrument.md) gives [equal weight](../e/equal_weight.md) to each of the [stocks](../s/stock.md) it tracks. This equal weighting provides a unique perspective on [market](../m/market.md) trends and stock performance, making it an interesting [index](../i/index_instrument.md) for both retail and institutional investors to follow. ## Components and Calculation ### Equal Weighting -One of the defining features of the [Value](../v/value.md) Line [Index](../i/index.md) is its equal-[weighted](../w/weighted.md) structure. Each stock in the [index](../i/index.md) is given the same importance regardless of its [market capitalization](../m/market_capitalization.md). This contrasts with indexes like the S&P 500, where larger companies have more influence on the [index](../i/index.md)’s performance. The equal weighting methodology means that the performance of smaller companies can have a significant impact on the overall [index](../i/index.md), providing a more democratized view of [market](../m/market.md) conditions. +One of the defining features of the [Value](../v/value.md) Line [Index](../i/index_instrument.md) is its equal-[weighted](../w/weighted.md) structure. Each stock in the [index](../i/index_instrument.md) is given the same importance regardless of its [market capitalization](../m/market_capitalization.md). This contrasts with indexes like the S&P 500, where larger companies have more influence on the [index](../i/index_instrument.md)’s performance. The equal weighting methodology means that the performance of smaller companies can have a significant impact on the overall [index](../i/index_instrument.md), providing a more democratized view of [market](../m/market.md) conditions. ### Geometric Average -Another unique characteristic of the [Value](../v/value.md) Line [Index](../i/index.md) is the way it is calculated using a geometric average. Most indices use arithmetic averages, but the geometric average is particularly useful in depicting the compound growth rate of the [index](../i/index.md) components. This method of calculation helps to smooth out extreme values, making it easier to identify [underlying](../u/underlying.md) trends and more accurately reflect the performance of the average stock in the [index](../i/index.md). +Another unique characteristic of the [Value](../v/value.md) Line [Index](../i/index_instrument.md) is the way it is calculated using a geometric average. Most indices use arithmetic averages, but the geometric average is particularly useful in depicting the compound growth rate of the [index](../i/index_instrument.md) components. This method of calculation helps to smooth out extreme values, making it easier to identify [underlying](../u/underlying.md) trends and more accurately reflect the performance of the average stock in the [index](../i/index_instrument.md). ## Historical Performance and Market Sentiment ### Longevity and Trends -The [Value](../v/value.md) Line [Index](../i/index.md) has been around since 1961 and has enabled investors to observe long-term [market](../m/market.md) trends and cycles. Its unique perspective often provides a more comprehensive view of the [market](../m/market.md)’s overall health, complementing other indices that may be skewed by the performance of larger companies. Analysts and traders frequently use the [Value](../v/value.md) Line [Index](../i/index.md) in conjunction with other indices to [gain](../g/gain.md) a fuller understanding of [market sentiment](../m/market_sentiment.md) and potential turning points. +The [Value](../v/value.md) Line [Index](../i/index_instrument.md) has been around since 1961 and has enabled investors to observe long-term [market](../m/market.md) trends and cycles. Its unique perspective often provides a more comprehensive view of the [market](../m/market.md)’s overall health, complementing other indices that may be skewed by the performance of larger companies. Analysts and traders frequently use the [Value](../v/value.md) Line [Index](../i/index_instrument.md) in conjunction with other indices to [gain](../g/gain.md) a fuller understanding of [market sentiment](../m/market_sentiment.md) and potential turning points. ### Market Sentiment Indicator -Due to its equal-[weighted](../w/weighted.md) nature, the [Value](../v/value.md) Line [Index](../i/index.md) is often viewed as a measure of broad-[market sentiment](../m/market_sentiment.md). When the [index](../i/index.md) is performing well, it usually indicates that a wide array of [stocks](../s/stock.md), including smaller ones, are seeing gains. Conversely, a decline in the [Value](../v/value.md) Line [Index](../i/index.md) may suggest that a larger proportion of [stocks](../s/stock.md) are underperforming, signaling potential bearish [market](../m/market.md) conditions. +Due to its equal-[weighted](../w/weighted.md) nature, the [Value](../v/value.md) Line [Index](../i/index_instrument.md) is often viewed as a measure of broad-[market sentiment](../m/market_sentiment.md). When the [index](../i/index_instrument.md) is performing well, it usually indicates that a wide array of [stocks](../s/stock.md), including smaller ones, are seeing gains. Conversely, a decline in the [Value](../v/value.md) Line [Index](../i/index_instrument.md) may suggest that a larger proportion of [stocks](../s/stock.md) are underperforming, signaling potential bearish [market](../m/market.md) conditions. ## Comparison to Other Indices ### S&P 500 -The S&P 500 is a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md), meaning that larger companies like Apple and Microsoft have a more significant impact on the [index](../i/index.md)’s overall performance. In contrast, the [Value](../v/value.md) Line [Index](../i/index.md)'s equal-[weighted](../w/weighted.md) structure ensures that small and [mid-cap stocks](../m/mid-cap_stocks.md) have an equal influence on performance. This makes the [Value](../v/value.md) Line [Index](../i/index.md) less susceptible to [volatility](../v/volatility.md) caused by a handful of [large-cap stocks](../l/large_cap_stocks.md), [offering](../o/offering.md) a diversified view of the [market](../m/market.md). +The S&P 500 is a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md), meaning that larger companies like Apple and Microsoft have a more significant impact on the [index](../i/index_instrument.md)’s overall performance. In contrast, the [Value](../v/value.md) Line [Index](../i/index_instrument.md)'s equal-[weighted](../w/weighted.md) structure ensures that small and [mid-cap stocks](../m/mid-cap_stocks.md) have an equal influence on performance. This makes the [Value](../v/value.md) Line [Index](../i/index_instrument.md) less susceptible to [volatility](../v/volatility.md) caused by a handful of [large-cap stocks](../l/large_cap_stocks.md), [offering](../o/offering.md) a diversified view of the [market](../m/market.md). ### DJIA -The Dow Jones Industrial Average (DJIA) is price-[weighted](../w/weighted.md), which means that [stocks](../s/stock.md) with higher prices affect the [index](../i/index.md) more significantly than lower-priced [stocks](../s/stock.md). This is different from both the S&P 500 and the [Value](../v/value.md) Line [Index](../i/index.md). The DJIA consists of only 30 large, publicly-owned companies, which might not provide as comprehensive a [market](../m/market.md) view as the VLI's 1,700 [stocks](../s/stock.md). Hence, the [Value](../v/value.md) Line [Index](../i/index.md) is often seen as a better [indicator](../i/indicator.md) for understanding widespread [market](../m/market.md) trends. +The Dow Jones Industrial Average (DJIA) is price-[weighted](../w/weighted.md), which means that [stocks](../s/stock.md) with higher prices affect the [index](../i/index_instrument.md) more significantly than lower-priced [stocks](../s/stock.md). This is different from both the S&P 500 and the [Value](../v/value.md) Line [Index](../i/index_instrument.md). The DJIA consists of only 30 large, publicly-owned companies, which might not provide as comprehensive a [market](../m/market.md) view as the VLI's 1,700 [stocks](../s/stock.md). Hence, the [Value](../v/value.md) Line [Index](../i/index_instrument.md) is often seen as a better [indicator](../i/indicator.md) for understanding widespread [market](../m/market.md) trends. ## Applications in Algo Trading ### Signal Generation -Algo traders often [leverage](../l/leverage.md) the unique characteristics of the [Value](../v/value.md) Line [Index](../i/index.md) to generate [trading signals](../t/trading_signals.md). Its equal-[weighted](../w/weighted.md) structure makes it an excellent tool for identifying broader [market](../m/market.md) trends. Algorithms can be designed to track the [index](../i/index.md) and execute trades based on its movements, effectively gauging [market](../m/market.md) health and acting accordingly. +Algo traders often [leverage](../l/leverage.md) the unique characteristics of the [Value](../v/value.md) Line [Index](../i/index_instrument.md) to generate [trading signals](../t/trading_signals.md). Its equal-[weighted](../w/weighted.md) structure makes it an excellent tool for identifying broader [market](../m/market.md) trends. Algorithms can be designed to track the [index](../i/index_instrument.md) and execute trades based on its movements, effectively gauging [market](../m/market.md) health and acting accordingly. ### Risk Management -The [Value](../v/value.md) Line [Index](../i/index.md) can also serve as a [risk management](../r/risk_management.md) tool. By comparing the performance of an individual stock or a portfolio against the VLI, traders can assess the [relative strength](../r/relative_strength.md) or weakness of their investments. If a portfolio consistently underperforms the VLI, it might signal the need for [rebalancing](../r/rebalancing.md) or [risk](../r/risk.md) mitigation. +The [Value](../v/value.md) Line [Index](../i/index_instrument.md) can also serve as a [risk management](../r/risk_management.md) tool. By comparing the performance of an individual stock or a portfolio against the VLI, traders can assess the [relative strength](../r/relative_strength.md) or weakness of their investments. If a portfolio consistently underperforms the VLI, it might signal the need for [rebalancing](../r/rebalancing.md) or [risk](../r/risk.md) mitigation. ## Investing Strategies ### Buy and Hold -For long-term investors, the [Value](../v/value.md) Line [Index](../i/index.md) offers an alternative perspective on [market](../m/market.md) performance. By holding a diversified portfolio that reflects the equal-[weighted](../w/weighted.md) structure of the VLI, investors can mitigate the [risk](../r/risk.md) of overweighting in [large-cap stocks](../l/large_cap_stocks.md) and benefit from the growth potential of smaller companies. +For long-term investors, the [Value](../v/value.md) Line [Index](../i/index_instrument.md) offers an alternative perspective on [market](../m/market.md) performance. By holding a diversified portfolio that reflects the equal-[weighted](../w/weighted.md) structure of the VLI, investors can mitigate the [risk](../r/risk.md) of overweighting in [large-cap stocks](../l/large_cap_stocks.md) and benefit from the growth potential of smaller companies. ### Technical Analysis -Technical analysts often use the [Value](../v/value.md) Line [Index](../i/index.md) in their charting and [pattern recognition](../p/pattern_recognition.md). The [index](../i/index.md)'s long history provides a [wealth](../w/wealth.md) of data for analyzing [market cycles](../m/market_cycles.md), resistance and [support levels](../s/support_levels.md), and other [technical indicators](../t/technical_indicators.md). The [geometric mean](../g/geometric_mean_in_trading.md) calculation smooths out data anomalies, making it easier to identify long-term trends and patterns. +Technical analysts often use the [Value](../v/value.md) Line [Index](../i/index_instrument.md) in their charting and [pattern recognition](../p/pattern_recognition.md). The [index](../i/index_instrument.md)'s long history provides a [wealth](../w/wealth.md) of data for analyzing [market cycles](../m/market_cycles.md), resistance and [support levels](../s/support_levels.md), and other [technical indicators](../t/technical_indicators.md). The [geometric mean](../g/geometric_mean_in_trading.md) calculation smooths out data anomalies, making it easier to identify long-term trends and patterns. ## Value Line Corporation -The [Value](../v/value.md) Line [Index](../i/index.md) is managed by the [Value](../v/value.md) Line [Corporation](../c/corporation.md), a research and publishing [firm](../f/firm.md) that specializes in investment analytics and financial data. Founded in 1931, the company is known for its comprehensive investment research tools and services. More information about the [Value](../v/value.md) Line [Corporation](../c/corporation.md) can be found on their official website: [Value Line](https://www.valueline.com). +The [Value](../v/value.md) Line [Index](../i/index_instrument.md) is managed by the [Value](../v/value.md) Line [Corporation](../c/corporation.md), a research and publishing [firm](../f/firm.md) that specializes in investment analytics and financial data. Founded in 1931, the company is known for its comprehensive investment research tools and services. More information about the [Value](../v/value.md) Line [Corporation](../c/corporation.md) can be found on their official website: [Value Line](https://www.valueline.com). ## Conclusion -The [Value](../v/value.md) Line [Index](../i/index.md) offers a unique, equal-[weighted](../w/weighted.md) perspective on the [stock market](../s/stock_market.md), providing invaluable insights for traders, investors, and analysts. Its distinctive features, including the equal weighting of its components and the geometric average calculation, make it a versatile and insightful [index](../i/index.md) for a variety of financial strategies. Whether used in [technical analysis](../t/technical_analysis.md), [algorithmic trading](../a/algorithmic_trading.md), or long-term investment planning, the [Value](../v/value.md) Line [Index](../i/index.md) serves as a powerful tool for understanding and navigating the complexities of the [stock market](../s/stock_market.md). +The [Value](../v/value.md) Line [Index](../i/index_instrument.md) offers a unique, equal-[weighted](../w/weighted.md) perspective on the [stock market](../s/stock_market.md), providing invaluable insights for traders, investors, and analysts. Its distinctive features, including the equal weighting of its components and the geometric average calculation, make it a versatile and insightful [index](../i/index_instrument.md) for a variety of financial strategies. Whether used in [technical analysis](../t/technical_analysis.md), [algorithmic trading](../a/algorithmic_trading.md), or long-term investment planning, the [Value](../v/value.md) Line [Index](../i/index_instrument.md) serves as a powerful tool for understanding and navigating the complexities of the [stock market](../s/stock_market.md). diff --git a/en/pedia/v/vancouver_stock_exchange_(van).md b/en/pedia/v/vancouver_stock_exchange_(van).md index 828fd7bf..e5b7e077 100644 --- a/en/pedia/v/vancouver_stock_exchange_(van).md +++ b/en/pedia/v/vancouver_stock_exchange_(van).md @@ -28,7 +28,7 @@ The VSE provided listings for companies that often couldn't meet the more string #### VSE Composite Index -The VSE Composite [Index](../i/index.md) was the primary [indicator](../i/indicator.md) representing the general performance of the [listed](../l/listed.md) companies. The [index](../i/index.md) offered insight into the overall health of the small-cap markets and the sectors heavily represented on the VSE. +The VSE Composite [Index](../i/index_instrument.md) was the primary [indicator](../i/indicator.md) representing the general performance of the [listed](../l/listed.md) companies. The [index](../i/index_instrument.md) offered insight into the overall health of the small-cap markets and the sectors heavily represented on the VSE. ## Regulatory Environment diff --git a/en/pedia/v/vanguard_exchange-traded_funds.md b/en/pedia/v/vanguard_exchange-traded_funds.md index d0ef43d0..c9eac546 100644 --- a/en/pedia/v/vanguard_exchange-traded_funds.md +++ b/en/pedia/v/vanguard_exchange-traded_funds.md @@ -11,8 +11,8 @@ Vanguard ETFs are similar to traditional mutual funds but [trade](../t/trade.md) 1. **[Open](../o/open.md)-Ended Structure:** - Vanguard ETFs are [open](../o/open.md)-ended securities, meaning that they can create and redeem [shares](../s/shares.md) based on [demand](../d/demand.md). This capability helps in maintaining the price of the ETF close to its Net [Asset](../a/asset.md) [Value](../v/value.md) (NAV). -2. **[Index](../i/index.md)-Based Management:** - - Most Vanguard ETFs aim to replicate the performance of a specific [index](../i/index.md), such as the S&P 500, [NASDAQ](../n/nasdaq.md) 100, or sector-specific indices. These funds use a passive management strategy, which helps in reducing the cost of management. +2. **[Index](../i/index_instrument.md)-Based Management:** + - Most Vanguard ETFs aim to replicate the performance of a specific [index](../i/index_instrument.md), such as the S&P 500, [NASDAQ](../n/nasdaq.md) 100, or sector-specific indices. These funds use a passive management strategy, which helps in reducing the cost of management. 3. **Share Creation and [Redemption](../r/redemption.md):** - Authorized participants (usually large financial institutions) facilitate the creation and [redemption](../r/redemption.md) of ETF [shares](../s/shares.md). They can create ETF [shares](../s/shares.md) by depositing a basket of securities that replicates the ETF's portfolio, and in [return](../r/return.md), they receive new ETF [shares](../s/shares.md). Conversely, they can redeem [shares](../s/shares.md) by returning ETF [shares](../s/shares.md) to the [issuer](../i/issuer.md) and receiving the [underlying](../u/underlying.md) securities. @@ -49,47 +49,47 @@ Vanguard provides a wide array of ETFs, categorized based on various parameters: - Tracks the performance of the CRSP US Total [Market Index](../m/market_index.md), providing exposure to the entirety of the investable U.S. [stock market](../s/stock_market.md). 2. **Vanguard Total International Stock ETF (VXUS):** - - Aims to track the performance of the FTSE Global All Cap ex US [Index](../i/index.md), covering both developed and emerging markets outside the U.S. + - Aims to track the performance of the FTSE Global All Cap ex US [Index](../i/index_instrument.md), covering both developed and emerging markets outside the U.S. ### Sector and Industry ETFs 1. **Vanguard Information Technology ETF (VGT):** - - Focuses on the information [technology sector](../t/technology_sector.md) by tracking the MSCI US Investable [Market](../m/market.md) Information Technology 25/50 [Index](../i/index.md). + - Focuses on the information [technology sector](../t/technology_sector.md) by tracking the MSCI US Investable [Market](../m/market.md) Information Technology 25/50 [Index](../i/index_instrument.md). 2. **Vanguard Health Care ETF (VHT):** - - Provides exposure to the [healthcare sector](../h/healthcare_sector.md) and tracks the performance of the MSCI US Investable [Market](../m/market.md) Health Care 25/50 [Index](../i/index.md). + - Provides exposure to the [healthcare sector](../h/healthcare_sector.md) and tracks the performance of the MSCI US Investable [Market](../m/market.md) Health Care 25/50 [Index](../i/index_instrument.md). ### Bond ETFs 1. **Vanguard Total [Bond Market](../b/bond_market.md) ETF (BND):** - - Tracks the performance of the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Float](../f/float.md) Adjusted [Index](../i/index.md), representing a broad spectrum of public, investment-grade, taxable bonds in the U.S. + - Tracks the performance of the [Bloomberg](../b/bloomberg.md) Barclays U.S. Aggregate [Float](../f/float.md) Adjusted [Index](../i/index_instrument.md), representing a broad spectrum of public, investment-grade, taxable bonds in the U.S. 2. **Vanguard Short-Term [Bond ETF](../b/bond_etf.md) (BSV):** - - Focuses on investment-grade bonds with maturities between one and five years, following the [Bloomberg](../b/bloomberg.md) Barclays U.S. 1-5 Year Government/[Credit](../c/credit.md) [Float](../f/float.md) Adjusted [Index](../i/index.md). + - Focuses on investment-grade bonds with maturities between one and five years, following the [Bloomberg](../b/bloomberg.md) Barclays U.S. 1-5 Year Government/[Credit](../c/credit.md) [Float](../f/float.md) Adjusted [Index](../i/index_instrument.md). ### International and Global ETFs 1. **Vanguard FTSE All-World ex-US ETF (VEU):** - - Tracks the FTSE All-World ex US [Index](../i/index.md), covering a wide [range](../r/range.md) of international [stocks](../s/stock.md) from both developed and emerging markets. + - Tracks the FTSE All-World ex US [Index](../i/index_instrument.md), covering a wide [range](../r/range.md) of international [stocks](../s/stock.md) from both developed and emerging markets. 2. **Vanguard Emerging Markets Stock ETF (VWO):** - - Aims to replicate the performance of the FTSE Emerging Markets All Cap China A Inclusion [Index](../i/index.md), focusing on [stocks](../s/stock.md) from emerging [market](../m/market.md) economies. + - Aims to replicate the performance of the FTSE Emerging Markets All Cap China A Inclusion [Index](../i/index_instrument.md), focusing on [stocks](../s/stock.md) from emerging [market](../m/market.md) economies. ### Factor-Based ETFs 1. **Vanguard [Value](../v/value.md) ETF (VTV):** - - Designed to follow the CRSP US Large Cap [Value](../v/value.md) [Index](../i/index.md), targeting [stocks](../s/stock.md) that appear to be [undervalued](../u/undervalued.md) based on various financial metrics. + - Designed to follow the CRSP US Large Cap [Value](../v/value.md) [Index](../i/index_instrument.md), targeting [stocks](../s/stock.md) that appear to be [undervalued](../u/undervalued.md) based on various financial metrics. 2. **Vanguard Growth ETF (VUG):** - - Tracks the performance of the CRSP US Large Cap Growth [Index](../i/index.md), focusing on companies with potential for above-average growth. + - Tracks the performance of the CRSP US Large Cap Growth [Index](../i/index_instrument.md), focusing on companies with potential for above-average growth. ### ESG (Environmental, Social, and Governance) ETFs 1. **Vanguard ESG U.S. Stock ETF (ESGV):** - - Follows the FTSE US All Cap Choice [Index](../i/index.md), excluding companies involved in activities like firearms, tobacco, and nuclear power, thus aligning investments with ESG principles. + - Follows the FTSE US All Cap Choice [Index](../i/index_instrument.md), excluding companies involved in activities like firearms, tobacco, and nuclear power, thus aligning investments with ESG principles. 2. **Vanguard ESG International Stock ETF (VSGX):** - - Aims to track the FTSE Global All Cap ex US Choice [Index](../i/index.md), focusing on international [stocks](../s/stock.md) that meet specific ESG criteria. + - Aims to track the FTSE Global All Cap ex US Choice [Index](../i/index_instrument.md), focusing on international [stocks](../s/stock.md) that meet specific ESG criteria. ## Benefits of Vanguard ETFs diff --git a/en/pedia/v/variability.md b/en/pedia/v/variability.md index e0856ec9..1304f342 100644 --- a/en/pedia/v/variability.md +++ b/en/pedia/v/variability.md @@ -60,7 +60,7 @@ Moving averages are commonly used in [technical analysis](../t/technical_analysi ### 3. Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) measures the speed and change of price movements, providing a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that compares the magnitude of recent gains to recent losses. The RSI can help identify whether an [asset](../a/asset.md) is [overbought](../o/overbought.md) or [oversold](../o/oversold.md), which often corresponds with extreme variability levels. +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) measures the speed and change of price movements, providing a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that compares the magnitude of recent gains to recent losses. The RSI can help identify whether an [asset](../a/asset.md) is [overbought](../o/overbought.md) or [oversold](../o/oversold.md), which often corresponds with extreme variability levels. ### 4. Historical Volatility diff --git a/en/pedia/v/variable-rate_certificate_of_deposit.md b/en/pedia/v/variable-rate_certificate_of_deposit.md index 2fb77b0d..b5ad2133 100644 --- a/en/pedia/v/variable-rate_certificate_of_deposit.md +++ b/en/pedia/v/variable-rate_certificate_of_deposit.md @@ -44,7 +44,7 @@ While variable-rate CDs present numerous benefits, they also carry inherent risk ### **Understanding Terms and Conditions** Before [investing](../i/investing.md), review the CD's [disclosure](../d/disclosure.md) statement carefully, which should outline: -- The [index](../i/index.md) or [benchmark](../b/benchmark.md) the CD's rate is tied to. +- The [index](../i/index_instrument.md) or [benchmark](../b/benchmark.md) the CD's rate is tied to. - The frequency of rate adjustments. - Any rate caps or floors. - Early [withdrawal](../w/withdrawal.md) penalties. diff --git a/en/pedia/v/variable-rate_demand_bond.md b/en/pedia/v/variable-rate_demand_bond.md index 1d8e3a80..77ae40f4 100644 --- a/en/pedia/v/variable-rate_demand_bond.md +++ b/en/pedia/v/variable-rate_demand_bond.md @@ -4,7 +4,7 @@ Variable-Rate [Demand](../d/demand.md) Bonds (VRDBs), also known as Variable Rat ## Key Characteristics ### Interest Rate Adjustments -The [interest rate](../i/interest_rate.md) on VRDBs is typically reset at regular intervals—daily, weekly, or monthly—based on a specified [benchmark](../b/benchmark.md) or [index](../i/index.md), such as the London Interbank Offered Rate (LIBOR) or the Securities [Industry](../i/industry.md) and [Financial Markets](../f/financial_market.md) Association (SIFMA) Municipal [Swap](../s/swap.md) [Index](../i/index.md). +The [interest rate](../i/interest_rate.md) on VRDBs is typically reset at regular intervals—daily, weekly, or monthly—based on a specified [benchmark](../b/benchmark.md) or [index](../i/index_instrument.md), such as the London Interbank Offered Rate (LIBOR) or the Securities [Industry](../i/industry.md) and [Financial Markets](../f/financial_market.md) Association (SIFMA) Municipal [Swap](../s/swap.md) [Index](../i/index_instrument.md). ### Demand Feature One of the defining features of VRDBs is the "put" or "[demand](../d/demand.md)" option, which allows bondholders to sell the [bond](../b/bond.md) back to the [issuer](../i/issuer.md) (or a designated [third party](../t/third_party.md)) at [par value](../p/par_value.md) plus [accrued interest](../a/accrued_interest.md) at specified times—often on each [interest](../i/interest.md) reset date. This [demand](../d/demand.md) feature provides [liquidity](../l/liquidity.md) and makes VRDBs similar to [short-term investments](../s/short-term_investments.md) from an [investor](../i/investor.md)'s perspective, even though they can have long-term maturities. diff --git a/en/pedia/v/variable_coupon_renewable_note_(vcr).md b/en/pedia/v/variable_coupon_renewable_note_(vcr).md index 8fbc1b07..00f025e7 100644 --- a/en/pedia/v/variable_coupon_renewable_note_(vcr).md +++ b/en/pedia/v/variable_coupon_renewable_note_(vcr).md @@ -12,7 +12,7 @@ A Variable Coupon Renewable [Note](../n/note.md) (VCR) is a type of [debt instru The core attribute of VCRs is their variable [interest](../i/interest.md) rates. Unlike fixed-rate bonds, which [offer](../o/offer.md) predictable but unchanging [interest](../i/interest.md) payments, VCRs have adjustable rates that can better align with relative [market](../m/market.md) conditions. The variation can be calculated by: -* **[Benchmark](../b/benchmark.md) [Index](../i/index.md):** Such as LIBOR (London Interbank Offered Rate) or SOFR (Secured Overnight [Financing](../f/financing.md) Rate). +* **[Benchmark](../b/benchmark.md) [Index](../i/index_instrument.md):** Such as LIBOR (London Interbank Offered Rate) or SOFR (Secured Overnight [Financing](../f/financing.md) Rate). * **[Economic Indicators](../e/economic_indicators.md):** [Inflation](../i/inflation.md) rates, central [bank](../b/bank.md) [interest](../i/interest.md) rates, or other economic metrics. * **[Issuer](../i/issuer.md) and [Investor](../i/investor.md) Agreement:** Custom criteria set forth by the [issuer](../i/issuer.md) and accepted by the investors. diff --git a/en/pedia/v/variable_interest_rate.md b/en/pedia/v/variable_interest_rate.md index 7b6fb5ea..45a6b645 100644 --- a/en/pedia/v/variable_interest_rate.md +++ b/en/pedia/v/variable_interest_rate.md @@ -1,10 +1,10 @@ # Variable Interest Rate -A variable [interest rate](../i/interest_rate.md), sometimes referred to as a floating or adjustable rate, is an [interest rate](../i/interest_rate.md) on a [loan](../l/loan.md) or [security](../s/security.md) that fluctuates over time based on an [underlying](../u/underlying.md) [benchmark](../b/benchmark.md) or [index](../i/index.md) that changes periodically. This adjustment allows the [interest rate](../i/interest_rate.md) to better reflect the current [market](../m/market.md) conditions. In contrast to fixed [interest](../i/interest.md) rates, which remain constant for the [duration](../d/duration.md) of the [loan](../l/loan.md) or investment, variable rates are inherently more dynamic and can [offer](../o/offer.md) the potential for lower initial rates or better alignment with changes in [inflation](../i/inflation.md) and other [economic indicators](../e/economic_indicators.md). +A variable [interest rate](../i/interest_rate.md), sometimes referred to as a floating or adjustable rate, is an [interest rate](../i/interest_rate.md) on a [loan](../l/loan.md) or [security](../s/security.md) that fluctuates over time based on an [underlying](../u/underlying.md) [benchmark](../b/benchmark.md) or [index](../i/index_instrument.md) that changes periodically. This adjustment allows the [interest rate](../i/interest_rate.md) to better reflect the current [market](../m/market.md) conditions. In contrast to fixed [interest](../i/interest.md) rates, which remain constant for the [duration](../d/duration.md) of the [loan](../l/loan.md) or investment, variable rates are inherently more dynamic and can [offer](../o/offer.md) the potential for lower initial rates or better alignment with changes in [inflation](../i/inflation.md) and other [economic indicators](../e/economic_indicators.md). ## Definition and Mechanism -At its core, a variable [interest rate](../i/interest_rate.md) is calculated as the sum of a base rate ([index](../i/index.md) rate) and a spread (or [margin](../m/margin.md)). The base rate is usually derived from a standard financial [index](../i/index.md), such as the London Interbank Offered Rate (LIBOR), the [Federal Funds Rate](../f/federal_funds_rate.md), or the [Prime Rate](../p/prime_rate.md). The spread is a percentage that is added to the base rate and remains relatively constant over the life of the [loan](../l/loan.md). +At its core, a variable [interest rate](../i/interest_rate.md) is calculated as the sum of a base rate ([index](../i/index_instrument.md) rate) and a spread (or [margin](../m/margin.md)). The base rate is usually derived from a standard financial [index](../i/index_instrument.md), such as the London Interbank Offered Rate (LIBOR), the [Federal Funds Rate](../f/federal_funds_rate.md), or the [Prime Rate](../p/prime_rate.md). The spread is a percentage that is added to the base rate and remains relatively constant over the life of the [loan](../l/loan.md). ### Formula @@ -33,8 +33,8 @@ Each of these indexes changes based on [supply](../s/supply.md) and [demand](../ ### Disadvantages -- **[Uncertainty](../u/uncertainty_in_trading.md):** The primary drawback is the unpredictability. Borrowers might face increased payments if the [index](../i/index.md) rate rises significantly. -- **Complexity:** Understanding how the rates adjust can be complex for the average borrower, necessitating awareness of the [underlying](../u/underlying.md) [index](../i/index.md) trends and economic factors. +- **[Uncertainty](../u/uncertainty_in_trading.md):** The primary drawback is the unpredictability. Borrowers might face increased payments if the [index](../i/index_instrument.md) rate rises significantly. +- **Complexity:** Understanding how the rates adjust can be complex for the average borrower, necessitating awareness of the [underlying](../u/underlying.md) [index](../i/index_instrument.md) trends and economic factors. - **Potential for Increased Costs:** Rising [interest](../i/interest.md) rates can lead to higher [loan](../l/loan.md) [repayment](../r/repayment.md) amounts, affecting [financial planning](../f/financial_planning.md) and budgeting. ## Applications in Financial Products @@ -53,7 +53,7 @@ Businesses may opt for variable rate loans for working [capital](../c/capital.md ### Bonds -Certain bonds, known as floating rate bonds or floaters, feature [interest](../i/interest.md) rates that reset periodically based on an [index](../i/index.md). These can be attractive to investors during times of rising [interest](../i/interest.md) rates as they [offer](../o/offer.md) [interest](../i/interest.md) payments that keep pace with the [market](../m/market.md). +Certain bonds, known as floating rate bonds or floaters, feature [interest](../i/interest.md) rates that reset periodically based on an [index](../i/index_instrument.md). These can be attractive to investors during times of rising [interest](../i/interest.md) rates as they [offer](../o/offer.md) [interest](../i/interest.md) payments that keep pace with the [market](../m/market.md). ## Risk Management @@ -73,7 +73,7 @@ An [interest rate swap](../i/interest_rate_swap.md) might involve a [corporation The financial [industry](../i/industry.md) is highly regulated to ensure [transparency](../t/transparency.md) and protect consumers from unfair practices. Regulations surrounding variable [interest](../i/interest.md) rates include: -- **[Disclosure](../d/disclosure.md) Requirements:** Creditors must clearly disclose how the variable rate is calculated, including the [index](../i/index.md) and [margin](../m/margin.md), and how often it [will](../w/will.md) adjust. +- **[Disclosure](../d/disclosure.md) Requirements:** Creditors must clearly disclose how the variable rate is calculated, including the [index](../i/index_instrument.md) and [margin](../m/margin.md), and how often it [will](../w/will.md) adjust. - **Adjustable Rate [Mortgage](../m/mortgage.md) Rule:** Issued by the Consumer Financial Protection Bureau (CFPB), this rule mandates specific disclosures and [interest rate](../i/interest_rate.md) adjustment notices for ARMs. - **SOFR Transition:** With the phase-out of LIBOR, regulators have encouraged the adoption of alternative benchmarks like SOFR, requiring significant adjustments in financial contracts and reporting standards. diff --git a/en/pedia/v/variable_rate_demand_note_(vrdn).md b/en/pedia/v/variable_rate_demand_note_(vrdn).md index b892f59a..07f1de59 100644 --- a/en/pedia/v/variable_rate_demand_note_(vrdn).md +++ b/en/pedia/v/variable_rate_demand_note_(vrdn).md @@ -5,7 +5,7 @@ A Variable Rate [Demand](../d/demand.md) [Note](../n/note.md) (VRDN) is a type o ## Characteristics of VRDNs ### Variable Interest Rate -The [interest rate](../i/interest_rate.md) on VRDNs is reset at regular intervals, such as daily, weekly, or monthly, which aligns the [yield](../y/yield.md) closely with current [market](../m/market.md) conditions. The rate is typically pegged to a [benchmark](../b/benchmark.md), such as the SIFMA Municipal [Swap](../s/swap.md) [Index](../i/index.md) or another similar short-term [interest rate](../i/interest_rate.md) [index](../i/index.md). +The [interest rate](../i/interest_rate.md) on VRDNs is reset at regular intervals, such as daily, weekly, or monthly, which aligns the [yield](../y/yield.md) closely with current [market](../m/market.md) conditions. The rate is typically pegged to a [benchmark](../b/benchmark.md), such as the SIFMA Municipal [Swap](../s/swap.md) [Index](../i/index_instrument.md) or another similar short-term [interest rate](../i/interest_rate.md) [index](../i/index_instrument.md). ### Demand (Put) Feature VRDNs include a [put option](../p/put.md) that allows the holder to [demand](../d/demand.md) [repayment](../r/repayment.md) of the [principal](../p/principal.md) at [par value](../p/par_value.md) on short notice, which can be as short as one day. This feature significantly reduces [interest rate risk](../i/interest_rate_risk.md) for investors since they can exit the investment if rates rise. diff --git a/en/pedia/v/variable_rate_mortgage.md b/en/pedia/v/variable_rate_mortgage.md index 0c4cf1f6..659e9ddd 100644 --- a/en/pedia/v/variable_rate_mortgage.md +++ b/en/pedia/v/variable_rate_mortgage.md @@ -1,15 +1,15 @@ # Variable Rate Mortgage -A Variable Rate [Mortgage](../m/mortgage.md) (VRM), often referred to as an adjustable-rate [mortgage](../m/mortgage.md) (ARM) in the United States, is a type of [home](../h/home.md) [loan](../l/loan.md) where the [interest rate](../i/interest_rate.md) applied on the outstanding balance varies throughout the [loan](../l/loan.md)'s lifetime. These mortgages have [interest](../i/interest.md) rates that may change periodically, usually in relation to an [index](../i/index.md) or [benchmark](../b/benchmark.md), and they [offer](../o/offer.md) the potential for cost-saving if [interest](../i/interest.md) rates decline. However, they also carry the [risk](../r/risk.md) of higher payments if [interest](../i/interest.md) rates increase. This guide provides an in-depth exploration of Variable Rate Mortgages, covering their mechanisms, advantages, disadvantages, types, and comparisons with fixed-rate mortgages. +A Variable Rate [Mortgage](../m/mortgage.md) (VRM), often referred to as an adjustable-rate [mortgage](../m/mortgage.md) (ARM) in the United States, is a type of [home](../h/home.md) [loan](../l/loan.md) where the [interest rate](../i/interest_rate.md) applied on the outstanding balance varies throughout the [loan](../l/loan.md)'s lifetime. These mortgages have [interest](../i/interest.md) rates that may change periodically, usually in relation to an [index](../i/index_instrument.md) or [benchmark](../b/benchmark.md), and they [offer](../o/offer.md) the potential for cost-saving if [interest](../i/interest.md) rates decline. However, they also carry the [risk](../r/risk.md) of higher payments if [interest](../i/interest.md) rates increase. This guide provides an in-depth exploration of Variable Rate Mortgages, covering their mechanisms, advantages, disadvantages, types, and comparisons with fixed-rate mortgages. ## Mechanisms of Variable Rate Mortgages ### Interest Rate Adjustments -In a VRM, the [interest rate](../i/interest_rate.md) is typically tied to a specific financial [index](../i/index.md), such as the London Interbank Offered Rate (LIBOR), the [Prime Rate](../p/prime_rate.md), or the Cost of Funds [Index](../i/index.md) (COFI). The [loan](../l/loan.md) agreement specifies the [margin](../m/margin.md) (a fixed amount over the [index](../i/index.md)) and the adjustment intervals. The formula for the new rate would be: +In a VRM, the [interest rate](../i/interest_rate.md) is typically tied to a specific financial [index](../i/index_instrument.md), such as the London Interbank Offered Rate (LIBOR), the [Prime Rate](../p/prime_rate.md), or the Cost of Funds [Index](../i/index_instrument.md) (COFI). The [loan](../l/loan.md) agreement specifies the [margin](../m/margin.md) (a fixed amount over the [index](../i/index_instrument.md)) and the adjustment intervals. The formula for the new rate would be: ``` -New [Interest Rate](../i/interest_rate.md) = [Index](../i/index.md) Rate + [Margin](../m/margin.md) +New [Interest Rate](../i/interest_rate.md) = [Index](../i/index_instrument.md) Rate + [Margin](../m/margin.md) ``` ### Adjustment Periods diff --git a/en/pedia/v/variance_swap_hedging.md b/en/pedia/v/variance_swap_hedging.md index 32e86a68..9aac660e 100644 --- a/en/pedia/v/variance_swap_hedging.md +++ b/en/pedia/v/variance_swap_hedging.md @@ -4,7 +4,7 @@ Variance swaps are financial [derivatives](../d/derivatives.md) that allow investors to [trade](../t/trade.md) future realized (or historical) [volatility](../v/volatility.md) against current implied [volatility](../v/volatility.md). A [variance swap](../v/variance_swap.md)'s payoff depends on the difference between the variance of the returns of the [underlying asset](../u/underlying_asset.md) and a pre-agreed variance level known as the strike. ## Understanding Variance Swaps -A [variance swap](../v/variance_swap.md) is a [forward contract](../f/forward_contract.md) on the annualized variance of returns of an [asset](../a/asset.md), such as an [index](../i/index.md) or a stock. Variance swaps provide a more direct way for investors to [trade](../t/trade.md) [volatility](../v/volatility.md) than conventional [options](../o/options.md). +A [variance swap](../v/variance_swap.md) is a [forward contract](../f/forward_contract.md) on the annualized variance of returns of an [asset](../a/asset.md), such as an [index](../i/index_instrument.md) or a stock. Variance swaps provide a more direct way for investors to [trade](../t/trade.md) [volatility](../v/volatility.md) than conventional [options](../o/options.md). ### Key Terms - **Variance (Var(X))**: Variance is a statistical measurement of the spread between numbers in a data set. It measures how far each number in the set is from the mean. diff --git a/en/pedia/v/variance_swap_strategies.md b/en/pedia/v/variance_swap_strategies.md index 26f9ae62..e31c043c 100644 --- a/en/pedia/v/variance_swap_strategies.md +++ b/en/pedia/v/variance_swap_strategies.md @@ -43,7 +43,7 @@ Where: 2. **[Volatility](../v/volatility.md) [Arbitrage](../a/arbitrage.md)**: - **[Relative Value](../r/relative_value.md) Trades**: This involves comparing the implied [volatility](../v/volatility.md) (from [options](../o/options.md) markets) with the forecasted [realized volatility](../r/realized_volatility.md). Traders might engage in [variance swap](../v/variance_swap.md) strategies if there's a significant discrepancy, expecting a convergence between implied and [realized volatility](../r/realized_volatility.md). - - **Long/Short [Volatility](../v/volatility.md) Positions**: Investors might take a long position in variance swaps on one [index](../i/index.md) or [security](../s/security.md) while taking a short position in another, considering correlations or implied [volatility](../v/volatility.md) [spreads](../s/spreads.md). + - **Long/Short [Volatility](../v/volatility.md) Positions**: Investors might take a long position in variance swaps on one [index](../i/index_instrument.md) or [security](../s/security.md) while taking a short position in another, considering correlations or implied [volatility](../v/volatility.md) [spreads](../s/spreads.md). ### Yield Enhancement diff --git a/en/pedia/v/variance_swap_valuation.md b/en/pedia/v/variance_swap_valuation.md index 26b282d9..a8a1edf9 100644 --- a/en/pedia/v/variance_swap_valuation.md +++ b/en/pedia/v/variance_swap_valuation.md @@ -1,6 +1,6 @@ # Variance Swap Valuation -Variance swaps are one of the most popular [derivative](../d/derivative.md) instruments in modern [quantitative finance](../q/quantitative_finance.md), particularly in the domain of [volatility](../v/volatility.md) trading. They enable traders to take positions based on the anticipated variance (or [volatility](../v/volatility.md)) of an [underlying asset](../u/underlying_asset.md) such as a stock [index](../i/index.md), [commodity](../c/commodity.md), or [currency](../c/currency.md) pair. Understanding and valuing these instruments requires a deep dive into financial theory, mathematical modeling, and practical pricing strategies. This article provides an in-depth examination of [variance swap](../v/variance_swap.md) [valuation](../v/valuation.md) from the ground up, covering key concepts, mathematical formulations, [market](../m/market.md) practices, and computational techniques. +Variance swaps are one of the most popular [derivative](../d/derivative.md) instruments in modern [quantitative finance](../q/quantitative_finance.md), particularly in the domain of [volatility](../v/volatility.md) trading. They enable traders to take positions based on the anticipated variance (or [volatility](../v/volatility.md)) of an [underlying asset](../u/underlying_asset.md) such as a stock [index](../i/index_instrument.md), [commodity](../c/commodity.md), or [currency](../c/currency.md) pair. Understanding and valuing these instruments requires a deep dive into financial theory, mathematical modeling, and practical pricing strategies. This article provides an in-depth examination of [variance swap](../v/variance_swap.md) [valuation](../v/valuation.md) from the ground up, covering key concepts, mathematical formulations, [market](../m/market.md) practices, and computational techniques. ## What is a Variance Swap? @@ -8,7 +8,7 @@ A [variance swap](../v/variance_swap.md) is a financial [derivative](../d/deriva ### Key Characteristics -1. **[Underlying Asset](../u/underlying_asset.md)**: This could be an [equity](../e/equity.md) [index](../i/index.md), single stock, [exchange rate](../e/exchange_rate.md), or [commodity](../c/commodity.md) price. +1. **[Underlying Asset](../u/underlying_asset.md)**: This could be an [equity](../e/equity.md) [index](../i/index_instrument.md), single stock, [exchange rate](../e/exchange_rate.md), or [commodity](../c/commodity.md) price. 2. **Variance Strike**: The agreed-upon variance level at the inception of the [swap](../s/swap.md). 3. **Realized Variance**: The actual variance of the [underlying asset](../u/underlying_asset.md)’s returns over the life of the [swap](../s/swap.md). 4. **[Payout](../p/payout.md)**: The [payout](../p/payout.md) at [maturity](../m/maturity.md) is typically the difference between the realized variance and the variance strike, multiplied by a notional amount. @@ -72,7 +72,7 @@ Traders might use variance swaps to speculate on future changes in [market](../m ## Example of Variance Swap Valuation -Consider an [investor](../i/investor.md) looking to enter a [variance swap](../v/variance_swap.md) on the S&P 500 [index](../i/index.md) with a 1-year [maturity](../m/maturity.md): +Consider an [investor](../i/investor.md) looking to enter a [variance swap](../v/variance_swap.md) on the S&P 500 [index](../i/index_instrument.md) with a 1-year [maturity](../m/maturity.md): 1. **Step 1**: Collect historical price data for the S&P 500 and calculate log returns. 2. **Step 2**: Compute historical realized variance to establish a [benchmark](../b/benchmark.md). diff --git a/en/pedia/v/venture_capital_returns.md b/en/pedia/v/venture_capital_returns.md index 144c1a60..202fa517 100644 --- a/en/pedia/v/venture_capital_returns.md +++ b/en/pedia/v/venture_capital_returns.md @@ -52,7 +52,7 @@ Returns in [venture capital](../v/venture_capital.md) are determined mainly thro Benchmarking [venture capital](../v/venture_capital.md) returns is challenging due to the [variability](../v/variability.md) in investments, stages, and sectors. Nevertheless, there are some commonly referenced indices: -1. **Cambridge Associates’ US [Venture Capital](../v/venture_capital.md) [Index](../i/index.md)**: +1. **Cambridge Associates’ US [Venture Capital](../v/venture_capital.md) [Index](../i/index_instrument.md)**: - Provides comprehensive data and analysis on the average performance of [venture capital](../v/venture_capital.md)-backed investments. 2. **[PitchBook](../p/pitchbook.md) Benchmarks**: diff --git a/en/pedia/v/vertical_spread_optimization.md b/en/pedia/v/vertical_spread_optimization.md index 7013c4da..8a6ae5d9 100644 --- a/en/pedia/v/vertical_spread_optimization.md +++ b/en/pedia/v/vertical_spread_optimization.md @@ -68,7 +68,7 @@ Monte Carlo simulations can predict the probabilities of different outcomes, all ### S&P 500 Vertical Spread Optimization -Using historical data and machine learning, various vertical [spreads](../s/spreads.md) were optimized on the S&P 500 [index](../i/index.md). The study revealed that [optimization](../o/optimization.md) could enhance the [risk](../r/risk.md)-reward ratio by 15%. +Using historical data and machine learning, various vertical [spreads](../s/spreads.md) were optimized on the S&P 500 [index](../i/index_instrument.md). The study revealed that [optimization](../o/optimization.md) could enhance the [risk](../r/risk.md)-reward ratio by 15%. ### Algorithmic Optimization in Bitcoin Options diff --git a/en/pedia/v/vertical_spread_trading_techniques.md b/en/pedia/v/vertical_spread_trading_techniques.md index f260c6e3..f29fe6e4 100644 --- a/en/pedia/v/vertical_spread_trading_techniques.md +++ b/en/pedia/v/vertical_spread_trading_techniques.md @@ -8,14 +8,14 @@ Vertical [spreads](../s/spreads.md) are a type of [options](../o/options.md) [tr ### Bull Call Spread -A [bull call spread](../b/bull_call_spread.md), or long call spread, is a [vertical spread](../v/vertical_spread.md) designed for a moderately bullish outlook on a stock or [index](../i/index.md). It involves buying a [call option](../c/call_option.md) at a lower [strike price](../s/strike_price.md) and simultaneously selling another [call option](../c/call_option.md) at a higher [strike price](../s/strike_price.md) but with the same [expiration date](../e/expiration_date.md). +A [bull call spread](../b/bull_call_spread.md), or long call spread, is a [vertical spread](../v/vertical_spread.md) designed for a moderately bullish outlook on a stock or [index](../i/index_instrument.md). It involves buying a [call option](../c/call_option.md) at a lower [strike price](../s/strike_price.md) and simultaneously selling another [call option](../c/call_option.md) at a higher [strike price](../s/strike_price.md) but with the same [expiration date](../e/expiration_date.md). - **Maximum [Profit](../p/profit.md)**: Occurs if the [underlying asset](../u/underlying_asset.md)'s price is above the higher [strike price](../s/strike_price.md) at expiration. - **Maximum Loss**: The initial cost to enter the [trade](../t/trade.md), which is the [net premium](../n/net_premium.md) paid. ### Bear Put Spread -A [bear put spread](../b/bear_put_spread.md), or [long put](../l/long_put.md) spread, is used when a [trader](../t/trader.md) has a moderately bearish expectation for a stock or [index](../i/index.md). It involves buying a [put option](../p/put.md) at a higher [strike price](../s/strike_price.md) and simultaneously selling another [put option](../p/put.md) at a lower [strike price](../s/strike_price.md), both with the same expiration. +A [bear put spread](../b/bear_put_spread.md), or [long put](../l/long_put.md) spread, is used when a [trader](../t/trader.md) has a moderately bearish expectation for a stock or [index](../i/index_instrument.md). It involves buying a [put option](../p/put.md) at a higher [strike price](../s/strike_price.md) and simultaneously selling another [put option](../p/put.md) at a lower [strike price](../s/strike_price.md), both with the same expiration. - **Maximum [Profit](../p/profit.md)**: Achieved if the [underlying asset](../u/underlying_asset.md)'s price is below the lower [strike price](../s/strike_price.md) at expiration. - **Maximum Loss**: The initial cost to enter the [trade](../t/trade.md), which is the [net premium](../n/net_premium.md) paid. diff --git a/en/pedia/v/vest_fleece.md b/en/pedia/v/vest_fleece.md index dbad1081..838db1ce 100644 --- a/en/pedia/v/vest_fleece.md +++ b/en/pedia/v/vest_fleece.md @@ -44,11 +44,11 @@ In the [financial markets](../f/financial_market.md), "Vest Fleece" could be uti ### Financial Instruments -1. **[Derivatives](../d/derivatives.md)**: Financial contracts whose [value](../v/value.md) is derived from the performance of an [underlying asset](../u/underlying_asset.md), [index](../i/index.md), or rate. +1. **[Derivatives](../d/derivatives.md)**: Financial contracts whose [value](../v/value.md) is derived from the performance of an [underlying asset](../u/underlying_asset.md), [index](../i/index_instrument.md), or rate. - Example: [Options](../o/options.md) and [futures contracts](../f/futures_contracts.md) used to [hedge](../h/hedge.md) or speculate on the price of an [asset](../a/asset.md). 2. **Mutual Funds**: Investment vehicles consisting of a diversified portfolio of [stocks](../s/stock.md), bonds, or other securities, managed by professional [fund](../f/fund.md) managers. - - Example: [Index](../i/index.md) funds that aim to replicate the performance of a specific [index](../i/index.md) like the S&P 500. + - Example: [Index](../i/index_instrument.md) funds that aim to replicate the performance of a specific [index](../i/index_instrument.md) like the S&P 500. 3. **[Insurance](../i/insurance.md)**: Financial products designed to provide protection against financial loss. - Example: [Life insurance](../l/life_insurance.md) policies that [offer](../o/offer.md) a [death benefit](../d/death_benefit.md) to beneficiaries. diff --git a/en/pedia/v/vienna_stock_exchange_(wbag).md b/en/pedia/v/vienna_stock_exchange_(wbag).md index 3b75a0d7..bf7cbdf9 100644 --- a/en/pedia/v/vienna_stock_exchange_(wbag).md +++ b/en/pedia/v/vienna_stock_exchange_(wbag).md @@ -25,7 +25,7 @@ The WBAG provides a comprehensive [bond market](../b/bond_market.md) where both The [exchange](../e/exchange.md) also offers a [range](../r/range.md) of [derivative](../d/derivative.md) products, including [options](../o/options.md) and [futures](../f/futures.md). These products allow investors to [hedge](../h/hedge.md) risks and optimize their investment strategies. ### Indices -The Vienna Stock [Exchange](../e/exchange.md) maintains several indices that measure the performance of various segments of the [market](../m/market.md). The most prominent of these is the ATX (Austrian Traded [Index](../i/index.md)), which is a [benchmark](../b/benchmark.md) [index](../i/index.md) of the top 20 blue-chip [stocks](../s/stock.md) [listed](../l/listed.md) on the [exchange](../e/exchange.md). +The Vienna Stock [Exchange](../e/exchange.md) maintains several indices that measure the performance of various segments of the [market](../m/market.md). The most prominent of these is the ATX (Austrian Traded [Index](../i/index_instrument.md)), which is a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) of the top 20 blue-chip [stocks](../s/stock.md) [listed](../l/listed.md) on the [exchange](../e/exchange.md). ## Market Structure diff --git a/en/pedia/v/vienna_stock_exchange_(wbag)_.vi.md b/en/pedia/v/vienna_stock_exchange_(wbag)_.vi.md index 5cbac56c..38e69e7b 100644 --- a/en/pedia/v/vienna_stock_exchange_(wbag)_.vi.md +++ b/en/pedia/v/vienna_stock_exchange_(wbag)_.vi.md @@ -19,9 +19,9 @@ Each segment is designed to cater to different types of investors and varying [r ## Market Indices The Vienna Stock [Exchange](../e/exchange.md) is known for several key indices that track the performance of [listed](../l/listed.md) securities: -- **ATX (Austrian Traded [Index](../i/index.md))**: The premier [index](../i/index.md) that comprises the 20 largest and most traded [stocks](../s/stock.md). +- **ATX (Austrian Traded [Index](../i/index_instrument.md))**: The premier [index](../i/index_instrument.md) that comprises the 20 largest and most traded [stocks](../s/stock.md). - **ATX Prime**: Encompasses a broader [range](../r/range.md) of companies and is used as a [benchmark](../b/benchmark.md). -- **CECE [Index](../i/index.md)**: Tracks companies in Central, Eastern, and Southeastern Europe. +- **CECE [Index](../i/index_instrument.md)**: Tracks companies in Central, Eastern, and Southeastern Europe. ## Trading Hours diff --git a/en/pedia/v/vinx_30.md b/en/pedia/v/vinx_30.md index 9d70f42f..ce9daece 100644 --- a/en/pedia/v/vinx_30.md +++ b/en/pedia/v/vinx_30.md @@ -1,14 +1,14 @@ # VINX 30 -The VINX 30 is a stock [market index](../m/market_index.md) that represents the 30 most traded [stocks](../s/stock.md) on the [Nasdaq](../n/nasdaq.md) Nordic [exchange](../e/exchange.md). It combines companies from Denmark, Finland, Iceland, Norway, and Sweden, [offering](../o/offering.md) a comprehensive view of the Nordic region's [stock market](../s/stock_market.md) performance. The [index](../i/index.md) serves as a barometer for the economic health and [market sentiment](../m/market_sentiment.md) of one of the world's most prosperous regions. +The VINX 30 is a stock [market index](../m/market_index.md) that represents the 30 most traded [stocks](../s/stock.md) on the [Nasdaq](../n/nasdaq.md) Nordic [exchange](../e/exchange.md). It combines companies from Denmark, Finland, Iceland, Norway, and Sweden, [offering](../o/offering.md) a comprehensive view of the Nordic region's [stock market](../s/stock_market.md) performance. The [index](../i/index_instrument.md) serves as a barometer for the economic health and [market sentiment](../m/market_sentiment.md) of one of the world's most prosperous regions. ## Composition and Calculation -The VINX 30 is a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md), which means that each constituent's weight in the [index](../i/index.md) is proportional to its [market value](../m/market_value.md). The larger the company's [market capitalization](../m/market_capitalization.md), the greater its impact on the [index](../i/index.md). The calculation involves several steps: +The VINX 30 is a [market](../m/market.md)-[capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md), which means that each constituent's weight in the [index](../i/index_instrument.md) is proportional to its [market value](../m/market_value.md). The larger the company's [market capitalization](../m/market_capitalization.md), the greater its impact on the [index](../i/index_instrument.md). The calculation involves several steps: 1. **Selection of Constituents**: The 30 most [liquid](../l/liquid.md) and high-[market](../m/market.md)-cap [stocks](../s/stock.md) from the [Nasdaq](../n/nasdaq.md) Nordic [exchange](../e/exchange.md) are selected. [Liquidity](../l/liquidity.md) is typically measured by the [volume](../v/volume.md) of [shares](../s/shares.md) traded and the frequency of trading. 2. **Weighting**: Each stock is assigned a weight based on its [market capitalization](../m/market_capitalization.md) relative to the total [market capitalization](../m/market_capitalization.md) of all 30 [stocks](../s/stock.md). -3. **Formula**: The [index](../i/index.md) level is calculated by dividing the total [market value](../m/market_value.md) of all constituent [stocks](../s/stock.md) by the [index](../i/index.md) divisor, which is adjusted for stock splits, dividends, or other corporate actions to maintain consistency. +3. **Formula**: The [index](../i/index_instrument.md) level is calculated by dividing the total [market value](../m/market_value.md) of all constituent [stocks](../s/stock.md) by the [index](../i/index_instrument.md) divisor, which is adjusted for stock splits, dividends, or other corporate actions to maintain consistency. ## Rebalancing @@ -39,15 +39,15 @@ The VINX 30 serves as a [benchmark](../b/benchmark.md) for various financial pro ### Exchange-Traded Funds (ETFs) -Investors can [gain](../g/gain.md) exposure to the VINX 30 through ETFs, which track the performance of the [index](../i/index.md). These funds are traded on stock exchanges and [offer](../o/offer.md) a convenient way to invest in the Nordic [market](../m/market.md). +Investors can [gain](../g/gain.md) exposure to the VINX 30 through ETFs, which track the performance of the [index](../i/index_instrument.md). These funds are traded on stock exchanges and [offer](../o/offer.md) a convenient way to invest in the Nordic [market](../m/market.md). ### Index Funds -[Index](../i/index.md) funds, which also aim to replicate the performance of the VINX 30, are another option for investors. These are mutual funds that pool [money](../m/money.md) from many investors to purchase the constituent [stocks](../s/stock.md) of the [index](../i/index.md). +[Index](../i/index_instrument.md) funds, which also aim to replicate the performance of the VINX 30, are another option for investors. These are mutual funds that pool [money](../m/money.md) from many investors to purchase the constituent [stocks](../s/stock.md) of the [index](../i/index_instrument.md). ### Derivatives -[Futures](../f/futures.md) and [options](../o/options.md) based on the VINX 30 [index](../i/index.md) are available for investors looking to [hedge](../h/hedge.md) their positions or speculate on the future direction of the Nordic [market](../m/market.md). +[Futures](../f/futures.md) and [options](../o/options.md) based on the VINX 30 [index](../i/index_instrument.md) are available for investors looking to [hedge](../h/hedge.md) their positions or speculate on the future direction of the Nordic [market](../m/market.md). ## Historical Performance @@ -87,7 +87,7 @@ Robo-advisors [offer](../o/offer.md) automated investment advice and [portfolio ### Mobile Trading Apps -Mobile apps have made it easier for retail investors to [trade](../t/trade.md) VINX 30 [stocks](../s/stock.md). These apps often feature fractional [shares](../s/shares.md), allowing investors to buy portions of high-priced [stocks](../s/stock.md) in the [index](../i/index.md). +Mobile apps have made it easier for retail investors to [trade](../t/trade.md) VINX 30 [stocks](../s/stock.md). These apps often feature fractional [shares](../s/shares.md), allowing investors to buy portions of high-priced [stocks](../s/stock.md) in the [index](../i/index_instrument.md). ### Blockchain and Cryptocurrency @@ -95,6 +95,6 @@ Some fintech companies are exploring the use of [blockchain](../b/blockchain_in_ ## Conclusion -The VINX 30 is a crucial [index](../i/index.md) that provides a snapshot of the Nordic region's economic health and [market](../m/market.md) trends. For investors, it offers exposure to some of the strongest companies in Europe, spanning various sectors. Its use in financial products, [algorithmic trading](../a/accountability.md), and fintech highlights its significance and versatility in the modern financial landscape. Whether you're a [retail investor](../r/retail_investor.md), a professional [trader](../t/trader.md), or a fintech [entrepreneur](../e/entrepreneur.md), the VINX 30 opens up a world of opportunities within the [robust](../r/robust.md) Nordic [market](../m/market.md). +The VINX 30 is a crucial [index](../i/index_instrument.md) that provides a snapshot of the Nordic region's economic health and [market](../m/market.md) trends. For investors, it offers exposure to some of the strongest companies in Europe, spanning various sectors. Its use in financial products, [algorithmic trading](../a/accountability.md), and fintech highlights its significance and versatility in the modern financial landscape. Whether you're a [retail investor](../r/retail_investor.md), a professional [trader](../t/trader.md), or a fintech [entrepreneur](../e/entrepreneur.md), the VINX 30 opens up a world of opportunities within the [robust](../r/robust.md) Nordic [market](../m/market.md). For more detailed information, you can visit the [Nasdaq](../n/nasdaq.md) Nordic [exchange](../e/exchange.md)'s official page: [Nasdaq VINX 30](http://www.nasdaqomxnordic.com/index/Index_info?Instrument=SE0000293210) \ No newline at end of file diff --git a/en/pedia/v/virtual_reality.md b/en/pedia/v/virtual_reality.md index cafeb4d1..68dece16 100644 --- a/en/pedia/v/virtual_reality.md +++ b/en/pedia/v/virtual_reality.md @@ -76,7 +76,7 @@ HTC Vive has developed a series of high-performance VR headsets aimed at both co Sony has introduced VR to the console gaming world with the PlayStation VR. Compatible with the PlayStation 4 and PlayStation 5, it offers a [range](../r/range.md) of gaming experiences in a dedicated ecosystem (https://www.playstation.com/en-us/explore/playstation-vr/). ### 4. Valve Index -Valve [Corporation](../c/corporation.md) offers the Valve [Index](../i/index.md), a high-end VR system known for its excellent display and exceptional tracking technology. Valve's Steam platform also provides a [robust](../r/robust.md) library of VR content, bolstering the appeal of their hardware (https://www.valvesoftware.com/en/[index](../i/index.md)). +Valve [Corporation](../c/corporation.md) offers the Valve [Index](../i/index_instrument.md), a high-end VR system known for its excellent display and exceptional tracking technology. Valve's Steam platform also provides a [robust](../r/robust.md) library of VR content, bolstering the appeal of their hardware (https://www.valvesoftware.com/en/[index](../i/index_instrument.md)). ### 5. Microsoft HoloLens While primarily an AR device, Microsoft HoloLens also encompasses elements of VR. It is particularly focused on enterprise applications, enabling businesses to [leverage](../l/leverage.md) mixed reality for training, design, and more (https://www.microsoft.com/en-us/hololens). diff --git a/en/pedia/v/vix_(cboe_volatility_index).md b/en/pedia/v/vix_(cboe_volatility_index).md index 85ed5e4d..2c8d1c62 100644 --- a/en/pedia/v/vix_(cboe_volatility_index).md +++ b/en/pedia/v/vix_(cboe_volatility_index).md @@ -1,14 +1,14 @@ # VIX (CBOE Volatility Index) -The VIX, or CBOE [Volatility](../v/volatility.md) [Index](../i/index.md), often referred to as the "fear gauge" or "fear [index](../i/index.md)," is a real-time [market index](../m/market_index.md) that represents the [market](../m/market.md)'s expectations for [volatility](../v/volatility.md) over the coming 30 days. It is researched, developed, and maintained by the Chicago Board [Options](../o/options.md) [Exchange](../e/exchange.md) (CBOE). The VIX measures the [stock market](../s/stock_market.md)'s expectation of [volatility](../v/volatility.md) implied by S&P 500 [index options](../i/index_options.md). By tracking the prices of these [options](../o/options.md), the VIX provides a metric for [market sentiment](../m/market_sentiment.md), specifically reflecting the anticipated [volatility](../v/volatility.md) in the [stock market](../s/stock_market.md). +The VIX, or CBOE [Volatility](../v/volatility.md) [Index](../i/index_instrument.md), often referred to as the "fear gauge" or "fear [index](../i/index_instrument.md)," is a real-time [market index](../m/market_index.md) that represents the [market](../m/market.md)'s expectations for [volatility](../v/volatility.md) over the coming 30 days. It is researched, developed, and maintained by the Chicago Board [Options](../o/options.md) [Exchange](../e/exchange.md) (CBOE). The VIX measures the [stock market](../s/stock_market.md)'s expectation of [volatility](../v/volatility.md) implied by S&P 500 [index options](../i/index_options.md). By tracking the prices of these [options](../o/options.md), the VIX provides a metric for [market sentiment](../m/market_sentiment.md), specifically reflecting the anticipated [volatility](../v/volatility.md) in the [stock market](../s/stock_market.md). ## Historical Background -The VIX was introduced in 1993 by the Chicago Board [Options](../o/options.md) [Exchange](../e/exchange.md) and the methodology for deriving it has evolved over time. Initially, it was computed using the implied volatilities from eight different put and call [options](../o/options.md) on the S&P 100 ([OEX](../o/oex.md)) [Index](../i/index.md). With the advancement of financial instruments and the growing popularity of [volatility](../v/volatility.md) as an [asset class](../a/asset_class.md), the VIX was updated in 2003 to provide a more comprehensive and reliable measure. The updated VIX now uses the [options](../o/options.md) of the S&P 500 [Index](../i/index.md) for its calculations, making it a more accurate reflection of [market](../m/market.md) [volatility](../v/volatility.md). +The VIX was introduced in 1993 by the Chicago Board [Options](../o/options.md) [Exchange](../e/exchange.md) and the methodology for deriving it has evolved over time. Initially, it was computed using the implied volatilities from eight different put and call [options](../o/options.md) on the S&P 100 ([OEX](../o/oex.md)) [Index](../i/index_instrument.md). With the advancement of financial instruments and the growing popularity of [volatility](../v/volatility.md) as an [asset class](../a/asset_class.md), the VIX was updated in 2003 to provide a more comprehensive and reliable measure. The updated VIX now uses the [options](../o/options.md) of the S&P 500 [Index](../i/index_instrument.md) for its calculations, making it a more accurate reflection of [market](../m/market.md) [volatility](../v/volatility.md). ## Calculation Methodology -The VIX uses a wide [range](../r/range.md) of S&P 500 [Index](../i/index.md) (SPX) option prices to gauge [market](../m/market.md) expectations of future [volatility](../v/volatility.md). The key steps in the calculation of the VIX are as follows: +The VIX uses a wide [range](../r/range.md) of S&P 500 [Index](../i/index_instrument.md) (SPX) option prices to gauge [market](../m/market.md) expectations of future [volatility](../v/volatility.md). The key steps in the calculation of the VIX are as follows: 1. **Selection of [Options](../o/options.md)**: - The VIX is calculated using both near-term and next-term [options](../o/options.md) that expire in less than 37 days but more than 23 days. @@ -25,7 +25,7 @@ The exact formula used to calculate the VIX involves a complex series of steps t ## Interpretation and Use -The VIX is interpreted as an annualized percentage, indicating the expected movement of the S&P 500 [index](../i/index.md) over the next 30 days. A high VIX [value](../v/value.md) indicates high expected [volatility](../v/volatility.md), often associated with increased fear or [uncertainty](../u/uncertainty_in_trading.md) in the [market](../m/market.md). Conversely, a low VIX [value](../v/value.md) suggests lower expected [volatility](../v/volatility.md), typically indicating [investor](../i/investor.md) confidence and stability. +The VIX is interpreted as an annualized percentage, indicating the expected movement of the S&P 500 [index](../i/index_instrument.md) over the next 30 days. A high VIX [value](../v/value.md) indicates high expected [volatility](../v/volatility.md), often associated with increased fear or [uncertainty](../u/uncertainty_in_trading.md) in the [market](../m/market.md). Conversely, a low VIX [value](../v/value.md) suggests lower expected [volatility](../v/volatility.md), typically indicating [investor](../i/investor.md) confidence and stability. - **VIX Level < 20**: Generally considered a stable and calm [market](../m/market.md). - **VIX Level between 20-30**: Indicates moderate [volatility](../v/volatility.md). @@ -42,7 +42,7 @@ VIX [futures](../f/futures.md) and [options](../o/options.md) provide a mechanis ### VIX Futures -VIX [futures contracts](../f/futures_contracts.md) were introduced in 2004 by the CBOE [Futures](../f/futures.md) [Exchange](../e/exchange.md) (CFE). These contracts allow [market](../m/market.md) participants to [trade](../t/trade.md) on the expected [volatility](../v/volatility.md) of the S&P 500 [index](../i/index.md). +VIX [futures contracts](../f/futures_contracts.md) were introduced in 2004 by the CBOE [Futures](../f/futures.md) [Exchange](../e/exchange.md) (CFE). These contracts allow [market](../m/market.md) participants to [trade](../t/trade.md) on the expected [volatility](../v/volatility.md) of the S&P 500 [index](../i/index_instrument.md). - **Pricing**: The price of VIX [futures](../f/futures.md) is determined by the current level of the VIX and [market](../m/market.md) expectations of future [volatility](../v/volatility.md). - **Settlement**: These contracts typically settle in cash and are marketed with expiration dates that extend from days to months. @@ -95,4 +95,4 @@ Several financial institutions and [hedge](../h/hedge.md) funds have incorporate ## Conclusion -The VIX [index](../i/index.md) is a crucial barometer of [market sentiment](../m/market_sentiment.md) and [volatility](../v/volatility.md). It provides insights into [investor](../i/investor.md) expectations and plays a significant role in [financial markets](../f/financial_market.md). Understanding the VIX, its calculation, and its application in [trading strategies](../t/trading_strategies.md) can help investors and traders manage [risk](../r/risk.md) and [capitalize](../c/capitalize.md) on [market](../m/market.md) conditions. Whether for hedging, [speculation](../s/speculation.md), or [algorithmic trading](../a/accountability.md), the VIX remains an integral part of the financial landscape, [offering](../o/offering.md) a unique window into the [market](../m/market.md)'s behavior and future expectations. \ No newline at end of file +The VIX [index](../i/index_instrument.md) is a crucial barometer of [market sentiment](../m/market_sentiment.md) and [volatility](../v/volatility.md). It provides insights into [investor](../i/investor.md) expectations and plays a significant role in [financial markets](../f/financial_market.md). Understanding the VIX, its calculation, and its application in [trading strategies](../t/trading_strategies.md) can help investors and traders manage [risk](../r/risk.md) and [capitalize](../c/capitalize.md) on [market](../m/market.md) conditions. Whether for hedging, [speculation](../s/speculation.md), or [algorithmic trading](../a/accountability.md), the VIX remains an integral part of the financial landscape, [offering](../o/offering.md) a unique window into the [market](../m/market.md)'s behavior and future expectations. \ No newline at end of file diff --git a/en/pedia/v/vix_option.md b/en/pedia/v/vix_option.md index 04e0cad6..281bbbd0 100644 --- a/en/pedia/v/vix_option.md +++ b/en/pedia/v/vix_option.md @@ -1,6 +1,6 @@ # VIX Options -VIX [options](../o/options.md) are financial instruments that derive their [value](../v/value.md) from the [Volatility](../v/volatility.md) [Index](../i/index.md) (VIX), often referred to as the "fear gauge" or "fear [index](../i/index.md)." The VIX measures the [market](../m/market.md)'s expectation of [volatility](../v/volatility.md) over the next 30 days, based on S&P 500 [index options](../i/index_options.md). By trading VIX [options](../o/options.md), investors can [gain](../g/gain.md) exposure to [volatility](../v/volatility.md) without needing to own any portfolio of [stocks](../s/stock.md) or other assets directly. +VIX [options](../o/options.md) are financial instruments that derive their [value](../v/value.md) from the [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX), often referred to as the "fear gauge" or "fear [index](../i/index_instrument.md)." The VIX measures the [market](../m/market.md)'s expectation of [volatility](../v/volatility.md) over the next 30 days, based on S&P 500 [index options](../i/index_options.md). By trading VIX [options](../o/options.md), investors can [gain](../g/gain.md) exposure to [volatility](../v/volatility.md) without needing to own any portfolio of [stocks](../s/stock.md) or other assets directly. ## Introduction to VIX Options @@ -30,7 +30,7 @@ VIX [options](../o/options.md) settle in cash rather than through the delivery o ### Options on Futures -VIX [options](../o/options.md) are often traded on VIX [futures](../f/futures.md) rather than directly on the VIX [index](../i/index.md). VIX [futures](../f/futures.md) themselves provide exposure to expected future levels of [volatility](../v/volatility.md), and their prices can vary based on [market](../m/market.md) conditions, such as [contango](../c/contango.md) or [backwardation](../b/backwardation.md). +VIX [options](../o/options.md) are often traded on VIX [futures](../f/futures.md) rather than directly on the VIX [index](../i/index_instrument.md). VIX [futures](../f/futures.md) themselves provide exposure to expected future levels of [volatility](../v/volatility.md), and their prices can vary based on [market](../m/market.md) conditions, such as [contango](../c/contango.md) or [backwardation](../b/backwardation.md). ## Strategies for Trading VIX Options @@ -58,7 +58,7 @@ Various spread strategies can be employed with VIX [options](../o/options.md), s ### Complexity -VIX [options](../o/options.md) are complex financial instruments; they require a deep understanding of the VIX [index](../i/index.md), option pricing, and [market](../m/market.md) [volatility](../v/volatility.md). Misjudgments can lead to significant losses. +VIX [options](../o/options.md) are complex financial instruments; they require a deep understanding of the VIX [index](../i/index_instrument.md), option pricing, and [market](../m/market.md) [volatility](../v/volatility.md). Misjudgments can lead to significant losses. ### Market Conditions @@ -72,7 +72,7 @@ The VIX represents the [volatility](../v/volatility.md) of the [market](../m/mar Several brokers and trading platforms [offer](../o/offer.md) VIX [options](../o/options.md) to investors. Here are a few notable ones: -- **Cboe Global Markets:** [Home](../h/home.md) to the VIX [index](../i/index.md) and primary marketplace for VIX [options](../o/options.md) trading. More information can be found [here](https://www.cboe.com/). +- **Cboe Global Markets:** [Home](../h/home.md) to the VIX [index](../i/index_instrument.md) and primary marketplace for VIX [options](../o/options.md) trading. More information can be found [here](https://www.cboe.com/). - **[Interactive Brokers](../i/interactive_brokers.md):** Provides access to VIX [options](../o/options.md) among various other complex [derivatives](../d/derivatives.md). More details are available at [Interactive Brokers](https://www.interactivebrokers.com/). - **TD [Ameritrade](../a/ameritrade.md):** Offers educational resources and trading access to VIX [options](../o/options.md). Visit their site at [TD Ameritrade](https://www.tdameritrade.com/). diff --git a/en/pedia/v/volatility.md b/en/pedia/v/volatility.md index 87f0daa5..4a78f833 100644 --- a/en/pedia/v/volatility.md +++ b/en/pedia/v/volatility.md @@ -11,7 +11,7 @@ Volatility is a statistical measure of the [dispersion](../d/dispersion.md) of r - Implied Volatility is derived from the [market price](../m/market_price.md) of a [market](../m/market.md)-traded [derivative](../d/derivative.md), usually [options](../o/options.md). The IV metric reflects [market](../m/market.md) expectations of future volatility. It is not derived from past prices but rather the prices of current [options](../o/options.md) trading. 3. **[Market](../m/market.md) Volatility** - - This type of volatility refers to the overall [market](../m/market.md), as opposed to a single [security](../s/security.md) or [asset](../a/asset.md). [Market](../m/market.md) volatility can be measured using indexes such as the Volatility [Index](../i/index.md) (VIX), which tracks the S&P 500’s implied volatility. + - This type of volatility refers to the overall [market](../m/market.md), as opposed to a single [security](../s/security.md) or [asset](../a/asset.md). [Market](../m/market.md) volatility can be measured using indexes such as the Volatility [Index](../i/index_instrument.md) (VIX), which tracks the S&P 500’s implied volatility. 4. **Systematic and Unsystematic Volatility** - Systematic volatility, also known as [market risk](../m/market_risk.md), affects the entire [market](../m/market.md) and cannot be diversified away. Unsystematic volatility is [asset](../a/asset.md)-specific [risk](../r/risk.md) that can be mitigated through [diversification](../d/diversification.md). @@ -96,7 +96,7 @@ Effective [risk management](../r/risk_management.md) strategies are crucial for Various indices and financial instruments are designed to track and [trade](../t/trade.md) on volatility: -1. **Volatility [Index](../i/index.md) (VIX)** +1. **Volatility [Index](../i/index_instrument.md) (VIX)** - The VIX, often referred to as the "fear gauge," measures the [market](../m/market.md)'s expectations for volatility over the next 30 days. More information can be found on [Cboe](https://www.cboe.com/tradable_products/vix/). 2. **Volatility ETFs and ETNs** diff --git a/en/pedia/v/volatility_analysis.md b/en/pedia/v/volatility_analysis.md index 1249ca0e..704722b3 100644 --- a/en/pedia/v/volatility_analysis.md +++ b/en/pedia/v/volatility_analysis.md @@ -56,7 +56,7 @@ Generalized Autoregressive Conditional [Heteroskedasticity](../h/heteroskedastic ### VIX Index -The VIX, also known as the CBOE [Volatility](../v/volatility.md) [Index](../i/index.md), measures the [market](../m/market.md)'s expectation of 30-day [volatility](../v/volatility.md) and is often referred to as the "fear gauge". A high VIX level indicates increased [market](../m/market.md) [uncertainty](../u/uncertainty_in_trading.md) and potential turbulence, while a low VIX level suggests complacency and stability. Traders monitor the VIX to gauge [market sentiment](../m/market_sentiment.md) and adjust their strategies accordingly. +The VIX, also known as the CBOE [Volatility](../v/volatility.md) [Index](../i/index_instrument.md), measures the [market](../m/market.md)'s expectation of 30-day [volatility](../v/volatility.md) and is often referred to as the "fear gauge". A high VIX level indicates increased [market](../m/market.md) [uncertainty](../u/uncertainty_in_trading.md) and potential turbulence, while a low VIX level suggests complacency and stability. Traders monitor the VIX to gauge [market sentiment](../m/market_sentiment.md) and adjust their strategies accordingly. ### News and Events diff --git a/en/pedia/v/volatility_and_skew_analysis.md b/en/pedia/v/volatility_and_skew_analysis.md index 421b8c56..c16e4482 100644 --- a/en/pedia/v/volatility_and_skew_analysis.md +++ b/en/pedia/v/volatility_and_skew_analysis.md @@ -112,7 +112,7 @@ ### Case Studies -1. **The 2008 [Financial Crisis](../f/financial_crisis.md)**: [Volatility](../v/volatility.md) and skew [index](../i/index.md) models anticipated extreme [market](../m/market.md) moves, and those insights provided profitable trades and [risk](../r/risk.md) mitigation opportunities for algorithms designed to [capitalize](../c/capitalize.md) on [market](../m/market.md) dislocations. +1. **The 2008 [Financial Crisis](../f/financial_crisis.md)**: [Volatility](../v/volatility.md) and skew [index](../i/index_instrument.md) models anticipated extreme [market](../m/market.md) moves, and those insights provided profitable trades and [risk](../r/risk.md) mitigation opportunities for algorithms designed to [capitalize](../c/capitalize.md) on [market](../m/market.md) dislocations. 2. **COVID-19 [Market](../m/market.md) Impact**: Algorithms that leveraged rapidly changing [volatility](../v/volatility.md) and skew during the early months of the pandemic were well-positioned to navigate the unprecedented [market](../m/market.md) conditions. diff --git a/en/pedia/v/volatility_calculation_methods.md b/en/pedia/v/volatility_calculation_methods.md index c148f089..56e253af 100644 --- a/en/pedia/v/volatility_calculation_methods.md +++ b/en/pedia/v/volatility_calculation_methods.md @@ -59,7 +59,7 @@ The steps to calculate [realized volatility](../r/realized_volatility.md) are: #### Volatility Index (VIX) -The VIX, or the [Volatility](../v/volatility.md) [Index](../i/index.md), is commonly referred to as the “fear gauge” of the [market](../m/market.md). It represents the [market](../m/market.md)'s expectation of 30-day forward-looking [volatility](../v/volatility.md), as derived from S&P 500 [index options](../i/index_options.md). The VIX is calculated by the Chicago Board [Options](../o/options.md) [Exchange](../e/exchange.md) (CBOE). +The VIX, or the [Volatility](../v/volatility.md) [Index](../i/index_instrument.md), is commonly referred to as the “fear gauge” of the [market](../m/market.md). It represents the [market](../m/market.md)'s expectation of 30-day forward-looking [volatility](../v/volatility.md), as derived from S&P 500 [index options](../i/index_options.md). The VIX is calculated by the Chicago Board [Options](../o/options.md) [Exchange](../e/exchange.md) (CBOE). To calculate the VIX: 1. **Option Prices**: Collect S&P 500 [index option](../i/index_option.md) prices with varying strike prices. diff --git a/en/pedia/v/volatility_estimation.md b/en/pedia/v/volatility_estimation.md index 3519cf57..ff01967a 100644 --- a/en/pedia/v/volatility_estimation.md +++ b/en/pedia/v/volatility_estimation.md @@ -50,7 +50,7 @@ where \(\[kappa](../k/kappa.md)\), \(\[theta](../t/theta.md)\), and \(\xi\) are ### 5. **Volatility Indexes** -[Volatility](../v/volatility.md) indexes, such as the CBOE [Volatility](../v/volatility.md) [Index](../i/index.md) (VIX), represent [market](../m/market.md) expectations of future [volatility](../v/volatility.md). The VIX, for example, is derived from the implied volatilities of S&P 500 [index options](../i/index_options.md). +[Volatility](../v/volatility.md) indexes, such as the CBOE [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX), represent [market](../m/market.md) expectations of future [volatility](../v/volatility.md). The VIX, for example, is derived from the implied volatilities of S&P 500 [index options](../i/index_options.md). ## Practical Applications in Algorithmic Trading diff --git a/en/pedia/v/volatility_impact_on_returns.md b/en/pedia/v/volatility_impact_on_returns.md index 4591acee..9a3905fb 100644 --- a/en/pedia/v/volatility_impact_on_returns.md +++ b/en/pedia/v/volatility_impact_on_returns.md @@ -22,7 +22,7 @@ In the financial world, the relationship between [risk](../r/risk.md) and [retur 2. **[Beta](../b/beta.md)**: This measures the [volatility](../v/volatility.md) of a [security](../s/security.md) relative to the overall [market](../m/market.md). A [beta](../b/beta.md) greater than 1 indicates higher [volatility](../v/volatility.md) than the [market](../m/market.md), whereas a [beta](../b/beta.md) less than 1 indicates lower [volatility](../v/volatility.md). -3. **[Volatility](../v/volatility.md) [Index](../i/index.md) (VIX)**: Often referred to as the "fear gauge," the VIX measures the [market](../m/market.md)'s expectation of 30-day forward-looking [volatility](../v/volatility.md) based on S&P 500 [index options](../i/index_options.md). +3. **[Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX)**: Often referred to as the "fear gauge," the VIX measures the [market](../m/market.md)'s expectation of 30-day forward-looking [volatility](../v/volatility.md) based on S&P 500 [index options](../i/index_options.md). ## The Relationship Between Volatility and Returns diff --git a/en/pedia/v/volatility_index_(vix).md b/en/pedia/v/volatility_index_(vix).md index ff19d4a2..cc4eb10b 100644 --- a/en/pedia/v/volatility_index_(vix).md +++ b/en/pedia/v/volatility_index_(vix).md @@ -1,7 +1,7 @@ # Volatility Index (VIX) ## Introduction -The [Volatility](../v/volatility.md) [Index](../i/index.md) (VIX), also known as the "fear gauge" or the "fear [index](../i/index.md)," is a measure of the [market](../m/market.md)'s expectation of [volatility](../v/volatility.md) over the coming 30 days. It was introduced by the Chicago Board [Options](../o/options.md) [Exchange](../e/exchange.md) (CBOE) in 1993. Traditionally, VIX is derived from the prices of S&P 500 [index options](../i/index_options.md) and reflects the [market](../m/market.md)'s expectations for [volatility](../v/volatility.md) based on the implied volatilities of a wide [range](../r/range.md) of S&P 500 [index options](../i/index_options.md). This [index](../i/index.md) serves as a barometer of [market sentiment](../m/market_sentiment.md), quantifying the level of [uncertainty](../u/uncertainty_in_trading.md) or [risk](../r/risk.md) perceived by investors. +The [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX), also known as the "fear gauge" or the "fear [index](../i/index_instrument.md)," is a measure of the [market](../m/market.md)'s expectation of [volatility](../v/volatility.md) over the coming 30 days. It was introduced by the Chicago Board [Options](../o/options.md) [Exchange](../e/exchange.md) (CBOE) in 1993. Traditionally, VIX is derived from the prices of S&P 500 [index options](../i/index_options.md) and reflects the [market](../m/market.md)'s expectations for [volatility](../v/volatility.md) based on the implied volatilities of a wide [range](../r/range.md) of S&P 500 [index options](../i/index_options.md). This [index](../i/index_instrument.md) serves as a barometer of [market sentiment](../m/market_sentiment.md), quantifying the level of [uncertainty](../u/uncertainty_in_trading.md) or [risk](../r/risk.md) perceived by investors. ## Calculation of VIX @@ -59,4 +59,4 @@ Trading platforms such as [Interactive Brokers](../i/interactive_brokers.md) and - [ThinkOrSwim](https://www.thinkorswim.com/) ## Conclusion -The [Volatility](../v/volatility.md) [Index](../i/index.md) (VIX) is an instrumental tool in both the broader [financial markets](../f/financial_market.md) and specialized spheres like [algorithmic trading](../a/algorithmic_trading.md). By providing insights into [market sentiment](../m/market_sentiment.md) and expectations for future [volatility](../v/volatility.md), the VIX enables traders and investors to make informed decisions, [hedge](../h/hedge.md) risks, and implement sophisticated [trading strategies](../t/trading_strategies.md). As markets evolve, the applications of the VIX continue to expand, reflecting its enduring significance as a critical gauge of [market dynamics](../m/market_dynamics.md) and psychological undercurrents. +The [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX) is an instrumental tool in both the broader [financial markets](../f/financial_market.md) and specialized spheres like [algorithmic trading](../a/algorithmic_trading.md). By providing insights into [market sentiment](../m/market_sentiment.md) and expectations for future [volatility](../v/volatility.md), the VIX enables traders and investors to make informed decisions, [hedge](../h/hedge.md) risks, and implement sophisticated [trading strategies](../t/trading_strategies.md). As markets evolve, the applications of the VIX continue to expand, reflecting its enduring significance as a critical gauge of [market dynamics](../m/market_dynamics.md) and psychological undercurrents. diff --git a/en/pedia/v/volatility_index_futures.md b/en/pedia/v/volatility_index_futures.md index 637c6062..c65cae2c 100644 --- a/en/pedia/v/volatility_index_futures.md +++ b/en/pedia/v/volatility_index_futures.md @@ -2,24 +2,24 @@ ### Introduction to Volatility Index Futures -[Volatility](../v/volatility.md) [Index Futures](../i/index_futures.md), commonly known in [financial markets](../f/financial_market.md) as VIX [futures](../f/futures.md) or [volatility](../v/volatility.md) [futures](../f/futures.md), are [exchange](../e/exchange.md)-traded [futures contracts](../f/futures_contracts.md) that allow investors to wager on the future [volatility](../v/volatility.md) of [financial markets](../f/financial_market.md). The [underlying asset](../u/underlying_asset.md) for these contracts is the [Volatility](../v/volatility.md) [Index](../i/index.md) (VIX), which measures the [market](../m/market.md)'s expectation of 30-day future [volatility](../v/volatility.md) implicit in the prices of S&P 500 [index options](../i/index_options.md). The VIX [Index](../i/index.md) is often referred to as the "fear gauge" because it capitalizes on [market sentiment](../m/market_sentiment.md) and potential future [risk](../r/risk.md), especially during periods of financial stress or [market](../m/market.md) downturns. +[Volatility](../v/volatility.md) [Index Futures](../i/index_futures.md), commonly known in [financial markets](../f/financial_market.md) as VIX [futures](../f/futures.md) or [volatility](../v/volatility.md) [futures](../f/futures.md), are [exchange](../e/exchange.md)-traded [futures contracts](../f/futures_contracts.md) that allow investors to wager on the future [volatility](../v/volatility.md) of [financial markets](../f/financial_market.md). The [underlying asset](../u/underlying_asset.md) for these contracts is the [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX), which measures the [market](../m/market.md)'s expectation of 30-day future [volatility](../v/volatility.md) implicit in the prices of S&P 500 [index options](../i/index_options.md). The VIX [Index](../i/index_instrument.md) is often referred to as the "fear gauge" because it capitalizes on [market sentiment](../m/market_sentiment.md) and potential future [risk](../r/risk.md), especially during periods of financial stress or [market](../m/market.md) downturns. ### The VIX Index -The VIX [Index](../i/index.md) is compiled by the Chicago Board [Options](../o/options.md) [Exchange](../e/exchange.md) (CBOE) and is a real-time [market index](../m/market_index.md) representing the [market](../m/market.md)'s expectations for [volatility](../v/volatility.md) over the coming 30 days. Introduced in 1993, the VIX [Index](../i/index.md) quickly became the standard measure of [market](../m/market.md) [volatility](../v/volatility.md). It is calculated based on the prices of near-term S&P 500 [options](../o/options.md), both puts, and calls. +The VIX [Index](../i/index_instrument.md) is compiled by the Chicago Board [Options](../o/options.md) [Exchange](../e/exchange.md) (CBOE) and is a real-time [market index](../m/market_index.md) representing the [market](../m/market.md)'s expectations for [volatility](../v/volatility.md) over the coming 30 days. Introduced in 1993, the VIX [Index](../i/index_instrument.md) quickly became the standard measure of [market](../m/market.md) [volatility](../v/volatility.md). It is calculated based on the prices of near-term S&P 500 [options](../o/options.md), both puts, and calls. ### Mechanics of VIX Futures -VIX [futures](../f/futures.md) are standardized contracts traded on exchanges such as the CBOE [Futures](../f/futures.md) [Exchange](../e/exchange.md) (CFE). These contracts are used to [hedge](../h/hedge.md) against risks or to speculate on the future direction of [market](../m/market.md) [volatility](../v/volatility.md). Each VIX future has a specific [expiration date](../e/expiration_date.md), and as the [expiration date](../e/expiration_date.md) approaches, the price of the VIX future converges to the level of the VIX [Index](../i/index.md). +VIX [futures](../f/futures.md) are standardized contracts traded on exchanges such as the CBOE [Futures](../f/futures.md) [Exchange](../e/exchange.md) (CFE). These contracts are used to [hedge](../h/hedge.md) against risks or to speculate on the future direction of [market](../m/market.md) [volatility](../v/volatility.md). Each VIX future has a specific [expiration date](../e/expiration_date.md), and as the [expiration date](../e/expiration_date.md) approaches, the price of the VIX future converges to the level of the VIX [Index](../i/index_instrument.md). Key elements of VIX [futures](../f/futures.md) include: -- **Contract Size**: Typically, VIX [futures](../f/futures.md) have a contract [multiplier](../m/multiplier.md) of $1,000 times the [index](../i/index.md) level. -- **[Tick Size](../t/tick_size.md)**: The minimum price movement ([tick size](../t/tick_size.md)) is usually 0.05 [index](../i/index.md) points, which corresponds to a move of $50 per contract. +- **Contract Size**: Typically, VIX [futures](../f/futures.md) have a contract [multiplier](../m/multiplier.md) of $1,000 times the [index](../i/index_instrument.md) level. +- **[Tick Size](../t/tick_size.md)**: The minimum price movement ([tick size](../t/tick_size.md)) is usually 0.05 [index](../i/index_instrument.md) points, which corresponds to a move of $50 per contract. - **Expiration Cycle**: VIX [futures](../f/futures.md) expire every Wednesday that is 30 days prior to the third Friday of the following calendar month. Different month contracts allow for hedging needs across various time horizons. ### Pricing and the Term Structure of VIX Futures -The pricing of VIX [futures](../f/futures.md) differs from the actual VIX [index](../i/index.md) [value](../v/value.md) due to the relationship between spot and [futures](../f/futures.md) prices, and factors such as carry costs, [risk](../r/risk.md) premiums, and [market sentiment](../m/market_sentiment.md). VIX [futures](../f/futures.md) often exhibit a term structure that can be in [contango](../c/contango.md) (upward-sloping) or [backwardation](../b/backwardation.md) (downward-sloping). +The pricing of VIX [futures](../f/futures.md) differs from the actual VIX [index](../i/index_instrument.md) [value](../v/value.md) due to the relationship between spot and [futures](../f/futures.md) prices, and factors such as carry costs, [risk](../r/risk.md) premiums, and [market sentiment](../m/market_sentiment.md). VIX [futures](../f/futures.md) often exhibit a term structure that can be in [contango](../c/contango.md) (upward-sloping) or [backwardation](../b/backwardation.md) (downward-sloping). - **[Contango](../c/contango.md)**: This occurs when [futures](../f/futures.md) prices are higher than the current [spot price](../s/spot_price.md). [Contango](../c/contango.md) reflects the cost of carry and also the [market](../m/market.md)'s anticipation of higher [volatility](../v/volatility.md) in the future. - **[Backwardation](../b/backwardation.md)**: This happens when [futures](../f/futures.md) prices are lower than the [spot price](../s/spot_price.md), indicating that the [market](../m/market.md) expects lower [volatility](../v/volatility.md) in the future. @@ -29,7 +29,7 @@ The pricing of VIX [futures](../f/futures.md) differs from the actual VIX [index VIX [futures](../f/futures.md) serve [multiple](../m/multiple.md) purposes in [financial markets](../f/financial_market.md): 1. **Hedging**: Investors often use VIX [futures](../f/futures.md) to [hedge](../h/hedge.md) against potential declines in the [value](../v/value.md) of their portfolios, as VIX levels generally increase during [market](../m/market.md) downturns. 2. **[Speculation](../s/speculation.md)**: Traders take positions in VIX [futures](../f/futures.md) to [profit](../p/profit.md) from expected changes in [market](../m/market.md) [volatility](../v/volatility.md). -3. **[Arbitrage](../a/arbitrage.md)**: Professional traders and institutions may engage in [arbitrage](../a/arbitrage.md) strategies to exploit discrepancies between the spot VIX [index](../i/index.md) and [futures](../f/futures.md) prices. +3. **[Arbitrage](../a/arbitrage.md)**: Professional traders and institutions may engage in [arbitrage](../a/arbitrage.md) strategies to exploit discrepancies between the spot VIX [index](../i/index_instrument.md) and [futures](../f/futures.md) prices. ### Strategies Involving VIX Futures diff --git a/en/pedia/v/volatility_index_options.md b/en/pedia/v/volatility_index_options.md index 482caa92..9c93e5e8 100644 --- a/en/pedia/v/volatility_index_options.md +++ b/en/pedia/v/volatility_index_options.md @@ -1,10 +1,10 @@ # Volatility Index Options -[Volatility](../v/volatility.md) [Index Options](../i/index_options.md), often referred to simply as "[VIX Options](../v/vix_option.md)," are financial instruments that utilize the Chicago Board [Options](../o/options.md) [Exchange](../e/exchange.md) (CBOE) [Volatility](../v/volatility.md) [Index](../i/index.md) as their [underlying asset](../u/underlying_asset.md). These [options](../o/options.md) provide investors with a way to [trade](../t/trade.md) or [hedge](../h/hedge.md) against [market](../m/market.md) [volatility](../v/volatility.md), a concept inherently tied to the perceived [risk](../r/risk.md) in the [financial markets](../f/financial_market.md). The VIX itself is often called the "fear gauge" because it tends to spike during periods of [market](../m/market.md) instability or stress. This extensive discussion [will](../w/will.md) cover various aspects of [VIX Options](../v/vix_option.md), from their definitions and calculation methods to their [trading strategies](../t/trading_strategies.md) and [market](../m/market.md) impact. +[Volatility](../v/volatility.md) [Index Options](../i/index_options.md), often referred to simply as "[VIX Options](../v/vix_option.md)," are financial instruments that utilize the Chicago Board [Options](../o/options.md) [Exchange](../e/exchange.md) (CBOE) [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) as their [underlying asset](../u/underlying_asset.md). These [options](../o/options.md) provide investors with a way to [trade](../t/trade.md) or [hedge](../h/hedge.md) against [market](../m/market.md) [volatility](../v/volatility.md), a concept inherently tied to the perceived [risk](../r/risk.md) in the [financial markets](../f/financial_market.md). The VIX itself is often called the "fear gauge" because it tends to spike during periods of [market](../m/market.md) instability or stress. This extensive discussion [will](../w/will.md) cover various aspects of [VIX Options](../v/vix_option.md), from their definitions and calculation methods to their [trading strategies](../t/trading_strategies.md) and [market](../m/market.md) impact. ## Understanding the VIX -The [Volatility](../v/volatility.md) [Index](../i/index.md), or VIX, is a real-time [index](../i/index.md) that represents the [market](../m/market.md)'s expectations for [volatility](../v/volatility.md) over the coming 30 days. It is derived from the implied volatilities of a wide [range](../r/range.md) of S&P 500 [index options](../i/index_options.md), both calls and puts. Essentially, the VIX measures the [market sentiment](../m/market_sentiment.md) and the expected fluctuation [range](../r/range.md) of the S&P 500, making it a significant [indicator](../i/indicator.md) for investors and traders alike. +The [Volatility](../v/volatility.md) [Index](../i/index_instrument.md), or VIX, is a real-time [index](../i/index_instrument.md) that represents the [market](../m/market.md)'s expectations for [volatility](../v/volatility.md) over the coming 30 days. It is derived from the implied volatilities of a wide [range](../r/range.md) of S&P 500 [index options](../i/index_options.md), both calls and puts. Essentially, the VIX measures the [market sentiment](../m/market_sentiment.md) and the expected fluctuation [range](../r/range.md) of the S&P 500, making it a significant [indicator](../i/indicator.md) for investors and traders alike. The calculation of the VIX involves complex mathematics, computing a [weighted](../w/weighted.md) sum of specific [options](../o/options.md), and this data is updated constantly during trading hours. Due to its complexity, not many retail investors go into the details of the VIX's computation, but understanding its directional movement is crucial for utilizing [VIX Options](../v/vix_option.md) effectively. diff --git a/en/pedia/v/volatility_interchange.md b/en/pedia/v/volatility_interchange.md index 8e36f2e9..51ca5687 100644 --- a/en/pedia/v/volatility_interchange.md +++ b/en/pedia/v/volatility_interchange.md @@ -37,7 +37,7 @@ The [volatility risk](../v/volatility_risk.md) [premium](../p/premium.md) repres ### Dispersion Trading -[Dispersion](../d/dispersion.md) trading involves taking positions on the [volatility](../v/volatility.md) of individual [stocks](../s/stock.md) within an [index](../i/index.md) compared to the [volatility](../v/volatility.md) of the [index](../i/index.md) itself. The key idea is to [profit](../p/profit.md) from the [divergence](../d/divergence.md) between individual stock volatilities and the overall [market](../m/market.md) [volatility](../v/volatility.md). +[Dispersion](../d/dispersion.md) trading involves taking positions on the [volatility](../v/volatility.md) of individual [stocks](../s/stock.md) within an [index](../i/index_instrument.md) compared to the [volatility](../v/volatility.md) of the [index](../i/index_instrument.md) itself. The key idea is to [profit](../p/profit.md) from the [divergence](../d/divergence.md) between individual stock volatilities and the overall [market](../m/market.md) [volatility](../v/volatility.md). ### Calendar Spreads diff --git a/en/pedia/v/volatility_models.md b/en/pedia/v/volatility_models.md index 98136b72..7e56cf2e 100644 --- a/en/pedia/v/volatility_models.md +++ b/en/pedia/v/volatility_models.md @@ -43,7 +43,7 @@ where \( S_t \) is the [asset](../a/asset.md) price, \( v_t \) is the variance, 5. **[Volatility](../v/volatility.md) Indexes (VIX)** -------------------------------- -The [Volatility](../v/volatility.md) [Index](../i/index.md) (VIX) measures the [market](../m/market.md)'s expectation of 30-day forward-looking [volatility](../v/volatility.md), derived from the S&P 500 [index options](../i/index_options.md). Often referred to as the "fear gauge," the VIX is a key [indicator](../i/indicator.md) of [market sentiment](../m/market_sentiment.md) and investors' [risk](../r/risk.md) appetite. +The [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX) measures the [market](../m/market.md)'s expectation of 30-day forward-looking [volatility](../v/volatility.md), derived from the S&P 500 [index options](../i/index_options.md). Often referred to as the "fear gauge," the VIX is a key [indicator](../i/indicator.md) of [market sentiment](../m/market_sentiment.md) and investors' [risk](../r/risk.md) appetite. The VIX calculation involves a complex formula that incorporates the [weighted average](../w/weighted_average.md) of the implied volatilities from a wide [range](../r/range.md) of [options](../o/options.md) with different strike prices and maturities. diff --git a/en/pedia/v/volatility_ratio.md b/en/pedia/v/volatility_ratio.md index 4a6f5fdc..3a2bda69 100644 --- a/en/pedia/v/volatility_ratio.md +++ b/en/pedia/v/volatility_ratio.md @@ -64,7 +64,7 @@ HFT firms, such as Renaissance Technologies or Citadel, use high-speed computati ## Real-World Examples -- **CBOE [Volatility](../v/volatility.md) [Index](../i/index.md) (VIX)**: Often referred to as the [market](../m/market.md)'s "fear gauge," the VIX measures the [market](../m/market.md)'s expectations of 30-day [volatility](../v/volatility.md). While it is not the same as the [Volatility](../v/volatility.md) Ratio, it serves a similar purpose in gauging [market sentiment](../m/market_sentiment.md). +- **CBOE [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX)**: Often referred to as the [market](../m/market.md)'s "fear gauge," the VIX measures the [market](../m/market.md)'s expectations of 30-day [volatility](../v/volatility.md). While it is not the same as the [Volatility](../v/volatility.md) Ratio, it serves a similar purpose in gauging [market sentiment](../m/market_sentiment.md). - [**Bridgewater Associates**](https://www.bridgewater.com/): The world's largest [hedge fund](../h/hedge_fund.md), Bridgewater uses sophisticated [risk parity](../r/risk_parity.md) strategies that heavily rely on [volatility](../v/volatility.md) measures to balance [risk](../r/risk.md) across various [asset](../a/asset.md) classes. ## Limitations of Volatility Ratio diff --git a/en/pedia/v/volatility_risk.md b/en/pedia/v/volatility_risk.md index 7fb52a5a..a744491f 100644 --- a/en/pedia/v/volatility_risk.md +++ b/en/pedia/v/volatility_risk.md @@ -17,7 +17,7 @@ Several metrics and models are used to measure [volatility](../v/volatility.md) - **[Standard Deviation](../s/standard_deviation.md):** A statistical measure of the [dispersion](../d/dispersion.md) of [asset](../a/asset.md) returns. - **[Beta](../b/beta.md):** Measures the sensitivity of an [asset](../a/asset.md)'s returns to the returns of the broader [market](../m/market.md). - **[Value](../v/value.md) at [Risk](../r/risk.md) (VaR):** Estimates the potential loss in [value](../v/value.md) of a portfolio under normal [market](../m/market.md) conditions over a set time period. -- **VIX ([Volatility](../v/volatility.md) [Index](../i/index.md)):** Often referred to as the "fear gauge," this [index](../i/index.md) represents [market](../m/market.md) expectations of near-term [volatility](../v/volatility.md) conveyed by S&P 500 stock [index option](../i/index_option.md) prices. +- **VIX ([Volatility](../v/volatility.md) [Index](../i/index_instrument.md)):** Often referred to as the "fear gauge," this [index](../i/index_instrument.md) represents [market](../m/market.md) expectations of near-term [volatility](../v/volatility.md) conveyed by S&P 500 stock [index option](../i/index_option.md) prices. ## Volatility Models diff --git a/en/pedia/v/volatility_risk_premium.md b/en/pedia/v/volatility_risk_premium.md index 77fa7233..b0e89d58 100644 --- a/en/pedia/v/volatility_risk_premium.md +++ b/en/pedia/v/volatility_risk_premium.md @@ -48,7 +48,7 @@ In the domain of algo-trading, the [Volatility Risk](../v/volatility_risk.md) [P ### 3. Dispersion Trading -[Dispersion](../d/dispersion.md) trading involves a strategy where traders use [options](../o/options.md) to bet on the relative movement of individual [stocks](../s/stock.md) against their [index](../i/index.md). This strategy believes: +[Dispersion](../d/dispersion.md) trading involves a strategy where traders use [options](../o/options.md) to bet on the relative movement of individual [stocks](../s/stock.md) against their [index](../i/index_instrument.md). This strategy believes: - If the VRP is high, the implied [correlation](../c/correlation.md) across [stocks](../s/stock.md) is typically low, meaning individual [stocks](../s/stock.md) are expected to move independently. - Conversely, a low VRP indicates a higher implied [correlation](../c/correlation.md). diff --git a/en/pedia/v/volatility_swap_strategies.md b/en/pedia/v/volatility_swap_strategies.md index 6366867a..d4896b7c 100644 --- a/en/pedia/v/volatility_swap_strategies.md +++ b/en/pedia/v/volatility_swap_strategies.md @@ -25,7 +25,7 @@ Traders seeking to [profit](../p/profit.md) from their views on future [volatili #### 4. Dispersion Trading -[Dispersion](../d/dispersion.md) trading involves taking positions in the [volatility](../v/volatility.md) of an [index](../i/index.md) and its constituent components. The strategy involves buying (selling) [index](../i/index.md) [volatility](../v/volatility.md) while selling (buying) the [volatility](../v/volatility.md) of the individual [stocks](../s/stock.md) in the [index](../i/index.md). This strategy bets on the [correlation](../c/correlation.md) between the individual [stocks](../s/stock.md)’ volatilities and the [index](../i/index.md) [volatility](../v/volatility.md). +[Dispersion](../d/dispersion.md) trading involves taking positions in the [volatility](../v/volatility.md) of an [index](../i/index_instrument.md) and its constituent components. The strategy involves buying (selling) [index](../i/index_instrument.md) [volatility](../v/volatility.md) while selling (buying) the [volatility](../v/volatility.md) of the individual [stocks](../s/stock.md) in the [index](../i/index_instrument.md). This strategy bets on the [correlation](../c/correlation.md) between the individual [stocks](../s/stock.md)’ volatilities and the [index](../i/index_instrument.md) [volatility](../v/volatility.md). #### 5. Market Neutral Strategies diff --git a/en/pedia/v/volume_analysis_techniques.md b/en/pedia/v/volume_analysis_techniques.md index 4da3236b..74acd6c2 100644 --- a/en/pedia/v/volume_analysis_techniques.md +++ b/en/pedia/v/volume_analysis_techniques.md @@ -69,7 +69,7 @@ This [oscillator](../o/oscillator.md) helps identify changes in [volume](../v/vo ## 6. Market Facilitation Index (MFI) -The [Market](../m/market.md) Facilitation [Index](../i/index.md) (MFI) is an [indicator](../i/indicator.md) developed by Bill Williams that assesses the [efficiency](../e/efficiency.md) of price movements using [volume](../v/volume.md). It measures the change in price relative to [volume](../v/volume.md) and helps determine the strength of [market](../m/market.md) moves. +The [Market](../m/market.md) Facilitation [Index](../i/index_instrument.md) (MFI) is an [indicator](../i/indicator.md) developed by Bill Williams that assesses the [efficiency](../e/efficiency.md) of price movements using [volume](../v/volume.md). It measures the change in price relative to [volume](../v/volume.md) and helps determine the strength of [market](../m/market.md) moves. Formula: diff --git a/en/pedia/v/volume_analysis_tools.md b/en/pedia/v/volume_analysis_tools.md index 9372a1e8..fca1f32e 100644 --- a/en/pedia/v/volume_analysis_tools.md +++ b/en/pedia/v/volume_analysis_tools.md @@ -28,9 +28,9 @@ The A/D Line is another [volume](../v/volume.md)-based [indicator](../i/indicator.md) that helps traders understand the cumulative flow of [money](../m/money.md) in and out of a [security](../s/security.md). It adds a portion of the daily [volume](../v/volume.md) based on the position of the close relative to the day’s high-low [range](../r/range.md). The A/D Line helps identify divergences between [volume](../v/volume.md) and price, signaling potential reversals. -6. **[Money Flow](../m/money_flow.md) [Index](../i/index.md) (MFI)** +6. **[Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md) (MFI)** - The [Money Flow](../m/money_flow.md) [Index](../i/index.md) combines price and [volume](../v/volume.md) data to indicate the buying and selling pressure of a [security](../s/security.md). It is a [volume](../v/volume.md)-[weighted](../w/weighted.md) RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)) that ranges from 0 to 100. An MFI above 80 suggests [overbought](../o/overbought.md) conditions, while an MFI below 20 indicates [oversold](../o/oversold.md) conditions. + The [Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md) combines price and [volume](../v/volume.md) data to indicate the buying and selling pressure of a [security](../s/security.md). It is a [volume](../v/volume.md)-[weighted](../w/weighted.md) RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)) that ranges from 0 to 100. An MFI above 80 suggests [overbought](../o/overbought.md) conditions, while an MFI below 20 indicates [oversold](../o/oversold.md) conditions. 7. **[Volume Oscillator](../v/volume_oscillator.md) (VO)** diff --git a/en/pedia/v/volume_and_market_sentiment.md b/en/pedia/v/volume_and_market_sentiment.md index 1098a44b..d785be74 100644 --- a/en/pedia/v/volume_and_market_sentiment.md +++ b/en/pedia/v/volume_and_market_sentiment.md @@ -42,7 +42,7 @@ Algorithms [leverage](../l/leverage.md) various [volume](../v/volume.md)-based m 2. **[Economic Indicators](../e/economic_indicators.md)**: Macro-economic data releases, such as GDP growth, employment figures, and [interest rate](../i/interest_rate.md) decisions, can shape [market sentiment](../m/market_sentiment.md) by influencing expectations about future economic performance. - 3. **[Technical Indicators](../t/technical_indicators.md)**: Sentiment can also be observed through [technical analysis](../t/technical_analysis.md) tools, such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [sentiment surveys](../s/sentiment_surveys.md) like the AAII [Investor](../i/investor.md) Sentiment Survey. + 3. **[Technical Indicators](../t/technical_indicators.md)**: Sentiment can also be observed through [technical analysis](../t/technical_analysis.md) tools, such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and [sentiment surveys](../s/sentiment_surveys.md) like the AAII [Investor](../i/investor.md) Sentiment Survey. 4. **[Options](../o/options.md) [Market](../m/market.md) Data**: The [options](../o/options.md) [market](../m/market.md) provides valuable insights into sentiment, with metrics like the put/call ratio indicating whether investors are more inclined towards protective puts or speculative calls. diff --git a/en/pedia/v/volume_and_trend_confirmation.md b/en/pedia/v/volume_and_trend_confirmation.md index 2bbf379e..7ded99bb 100644 --- a/en/pedia/v/volume_and_trend_confirmation.md +++ b/en/pedia/v/volume_and_trend_confirmation.md @@ -36,7 +36,7 @@ A [trend](../t/trend.md) is the general direction of a [market](../m/market.md) [Trend indicators](../t/trend_indicators.md) help traders identify and analyze trends. Commonly used ones include: 1. **Moving Averages (MA)**: Averages the price over a specific period to smoothen out fluctuations. Common variations include Simple Moving Average (SMA) and Exponential Moving Average (EMA). 2. **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: Shows the relationship between two moving averages of a [security](../s/security.md)’s price. -3. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +3. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. ## Combining Volume and Trend Confirmation diff --git a/en/pedia/v/volume_confirmation.md b/en/pedia/v/volume_confirmation.md index 1e74aad7..4ff5b26a 100644 --- a/en/pedia/v/volume_confirmation.md +++ b/en/pedia/v/volume_confirmation.md @@ -46,7 +46,7 @@ In [breakout trading](../b/breakout_trading.md), [volume](../v/volume.md) confir ### Divergence Analysis -In [divergence](../d/divergence.md) analysis, [volume](../v/volume.md) can be used to confirm or dispute a [divergence](../d/divergence.md) between price and a technical [indicator](../i/indicator.md) such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD). If price is moving in one direction but [volume](../v/volume.md) is not supporting that move, it could signal a potential [reversal](../r/reversal.md) or weak [trend](../t/trend.md). +In [divergence](../d/divergence.md) analysis, [volume](../v/volume.md) can be used to confirm or dispute a [divergence](../d/divergence.md) between price and a technical [indicator](../i/indicator.md) such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD). If price is moving in one direction but [volume](../v/volume.md) is not supporting that move, it could signal a potential [reversal](../r/reversal.md) or weak [trend](../t/trend.md). ## Algorithmic Implementation of Volume Confirmation diff --git a/en/pedia/v/volume_distribution_analysis.md b/en/pedia/v/volume_distribution_analysis.md index 72c124fe..e5d5be4f 100644 --- a/en/pedia/v/volume_distribution_analysis.md +++ b/en/pedia/v/volume_distribution_analysis.md @@ -33,7 +33,7 @@ Integrating [volume](../v/volume.md) [distribution](../d/distribution.md) analysis with other [technical indicators](../t/technical_indicators.md) can increase the robustness of [trading strategies](../t/trading_strategies.md). For example, aligning [moving average crossovers](../m/moving_average_crossovers.md) with high [volume](../v/volume.md) areas can provide stronger confirmation for [trade](../t/trade.md) entries and exits. 3. **[Volume](../v/volume.md)-Based Indicators in [Algorithmic Trading](../a/algorithmic_trading.md)**: - [Algorithmic trading](../a/algorithmic_trading.md) systems can incorporate [volume](../v/volume.md)-based indicators such as VWAP, On-Balance [Volume](../v/volume.md) (OBV), and [Money Flow](../m/money_flow.md) [Index](../i/index.md) (MFI) to refine their strategies. These indicators can serve both as primary signals or filters to improve the accuracy of other signals. + [Algorithmic trading](../a/algorithmic_trading.md) systems can incorporate [volume](../v/volume.md)-based indicators such as VWAP, On-Balance [Volume](../v/volume.md) (OBV), and [Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md) (MFI) to refine their strategies. These indicators can serve both as primary signals or filters to improve the accuracy of other signals. 4. **[Intraday Trading](../i/intraday_trading.md)**: For intraday traders, [volume](../v/volume.md) [distribution](../d/distribution.md) analysis can [offer](../o/offer.md) granular insights into intraday price movements. Tools like the [Market](../m/market.md) Profile allow traders to see the dominant price ranges and time segments where the most [volume](../v/volume.md) is trading, aiding in short-term decision-making. diff --git a/en/pedia/v/volume_divergence_analysis.md b/en/pedia/v/volume_divergence_analysis.md index c6c54d19..7c19e6c4 100644 --- a/en/pedia/v/volume_divergence_analysis.md +++ b/en/pedia/v/volume_divergence_analysis.md @@ -34,7 +34,7 @@ To identify [volume divergence](../v/volume_divergence.md), traders typically us ### Confirming Divergence -[Volume Divergence](../v/volume_divergence.md) should not be used in isolation. Confirmation from other [technical indicators](../t/technical_indicators.md), patterns, or [trend analysis](../t/trend_analysis.md) is vital for increased reliability. Many traders use [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), or other [momentum indicators](../m/momentum_indicators.md) in conjunction with [volume analysis](../v/volume_analysis.md) to confirm potential [divergence](../d/divergence.md). +[Volume Divergence](../v/volume_divergence.md) should not be used in isolation. Confirmation from other [technical indicators](../t/technical_indicators.md), patterns, or [trend analysis](../t/trend_analysis.md) is vital for increased reliability. Many traders use [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), or other [momentum indicators](../m/momentum_indicators.md) in conjunction with [volume analysis](../v/volume_analysis.md) to confirm potential [divergence](../d/divergence.md). ### Practical Application of Volume Divergence diff --git a/en/pedia/v/volume_indicator_analysis.md b/en/pedia/v/volume_indicator_analysis.md index 470475d5..55a8e468 100644 --- a/en/pedia/v/volume_indicator_analysis.md +++ b/en/pedia/v/volume_indicator_analysis.md @@ -29,7 +29,7 @@ The Accumulation/[Distribution](../d/distribution.md) Line (A/D Line) is used to - Current A/D Line = Previous A/D Line + [Money Flow](../m/money_flow.md) [Volume](../v/volume.md). ### Money Flow Index (MFI) -The [Money Flow](../m/money_flow.md) [Index](../i/index.md) (MFI) is a [volume](../v/volume.md)-[weighted](../w/weighted.md) version of the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) and was designed by Gene Quong and Avrum Soudack. It compares price movement over time with [volume](../v/volume.md) and uses this data to generate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) signals. +The [Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md) (MFI) is a [volume](../v/volume.md)-[weighted](../w/weighted.md) version of the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) and was designed by Gene Quong and Avrum Soudack. It compares price movement over time with [volume](../v/volume.md) and uses this data to generate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) signals. **Calculation:** - Typical Price = (High + Low + Close) / 3. diff --git a/en/pedia/v/volume_indicators.md b/en/pedia/v/volume_indicators.md index e0733018..79af8899 100644 --- a/en/pedia/v/volume_indicators.md +++ b/en/pedia/v/volume_indicators.md @@ -21,16 +21,16 @@ The Chaikin [Money Flow](../m/money_flow.md) (CMF), also created by Marc Chaikin The [Klinger Oscillator](../k/klinger_oscillator.md) seeks to determine the long-term [trend](../t/trend.md) of [money flow](../m/money_flow.md) while remaining sensitive enough to detect short-term fluctuations. This [indicator](../i/indicator.md) compares the [volume](../v/volume.md) flowing through [security](../s/security.md) to the price movements, attempting to predict reversals based on [volume](../v/volume.md) trends. Algorithmic systems integrate the [Klinger Oscillator](../k/klinger_oscillator.md) into their signal generation processes for accurate [trend](../t/trend.md)-following or [reversal](../r/reversal.md) strategies. #### 7. **Money Flow Index (MFI)** -[Money Flow](../m/money_flow.md) [Index](../i/index.md) (MFI) is an [oscillator](../o/oscillator.md) that uses price and [volume](../v/volume.md) to indicate buying and selling pressure. It ranges from 0 to 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. An MFI above 80 indicates [overbought](../o/overbought.md) conditions, while an MFI below 20 indicates [oversold](../o/oversold.md) conditions. In the realm of [algorithmic trading](../a/algorithmic_trading.md), MFI is often deployed to generate buy or sell signals in conjunction with other indicators. +[Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md) (MFI) is an [oscillator](../o/oscillator.md) that uses price and [volume](../v/volume.md) to indicate buying and selling pressure. It ranges from 0 to 100 and is typically used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. An MFI above 80 indicates [overbought](../o/overbought.md) conditions, while an MFI below 20 indicates [oversold](../o/oversold.md) conditions. In the realm of [algorithmic trading](../a/algorithmic_trading.md), MFI is often deployed to generate buy or sell signals in conjunction with other indicators. #### 8. **Negative Volume Index (NVI)** -The Negative [Volume](../v/volume.md) [Index](../i/index.md) (NVI) assumes that [smart money](../s/smart_money.md) trades on low-[volume](../v/volume.md) days and uninformed traders participate on high-[volume](../v/volume.md) days. The NVI focuses on days when the [volume](../v/volume.md) is lower than the previous day and adds or subtracts a proportionate amount of price change accordingly. This [index](../i/index.md) is used by algorithmic traders to identify the [underlying](../u/underlying.md) [trend](../t/trend.md) direction as [smart money](../s/smart_money.md) is believed to be a significant [market](../m/market.md) mover. +The Negative [Volume](../v/volume.md) [Index](../i/index_instrument.md) (NVI) assumes that [smart money](../s/smart_money.md) trades on low-[volume](../v/volume.md) days and uninformed traders participate on high-[volume](../v/volume.md) days. The NVI focuses on days when the [volume](../v/volume.md) is lower than the previous day and adds or subtracts a proportionate amount of price change accordingly. This [index](../i/index_instrument.md) is used by algorithmic traders to identify the [underlying](../u/underlying.md) [trend](../t/trend.md) direction as [smart money](../s/smart_money.md) is believed to be a significant [market](../m/market.md) mover. #### 9. **Volume Oscillator** The [Volume Oscillator](../v/volume_oscillator.md) shows trends and changes in [volume](../v/volume.md) by calculating the difference between two [volume](../v/volume.md) moving averages: a shorter-term and a longer-term moving average. This difference is then plotted as an [oscillator](../o/oscillator.md). A positive [value](../v/value.md) indicates increasing [volume](../v/volume.md), suggesting buying [interest](../i/interest.md), while a negative [value](../v/value.md) indicates decreasing [volume](../v/volume.md), suggesting selling [interest](../i/interest.md). [Volume Oscillator](../v/volume_oscillator.md) can refine entry and exit points in [algorithmic trading](../a/algorithmic_trading.md) strategies by highlighting shifts in [volume](../v/volume.md) trends. #### 10. **Force Index** -The Force [Index](../i/index.md), introduced by Alexander Elder, measures the power behind a price move by combining price change and [volume](../v/volume.md). It differentiates between strong and weak trends by showing the intensity of buying and selling pressure. Positive values indicate buying pressure, while negative values indicate selling pressure. This [index](../i/index.md) is integrated into [algorithmic trading](../a/algorithmic_trading.md) systems to assess the strength of price movements and confirm trends. +The Force [Index](../i/index_instrument.md), introduced by Alexander Elder, measures the power behind a price move by combining price change and [volume](../v/volume.md). It differentiates between strong and weak trends by showing the intensity of buying and selling pressure. Positive values indicate buying pressure, while negative values indicate selling pressure. This [index](../i/index_instrument.md) is integrated into [algorithmic trading](../a/algorithmic_trading.md) systems to assess the strength of price movements and confirm trends. #### 11. **Ease of Movement (EOM)** Ease of Movement (EOM) [indicator](../i/indicator.md) relates price change to the [volume](../v/volume.md) it's traded at, suggesting how easily a [security](../s/security.md)'s price moves. A high EOM [value](../v/value.md) implies that prices are advancing with little resistance, while a low EOM [value](../v/value.md) suggests difficulty in moving up. Algorithmic traders use EOM to identify efficient price movements and gauge the ease or difficulty of a [trade](../t/trade.md), adjusting their strategies accordingly. diff --git a/en/pedia/v/volume_indicators_in_trading.md b/en/pedia/v/volume_indicators_in_trading.md index afbecf78..9fcde6ea 100644 --- a/en/pedia/v/volume_indicators_in_trading.md +++ b/en/pedia/v/volume_indicators_in_trading.md @@ -58,7 +58,7 @@ Developed by Marc Chaikin, the Chaikin [Money Flow](../m/money_flow.md) (CMF) me ## 5. Money Flow Index (MFI) -The [Money Flow](../m/money_flow.md) [Index](../i/index.md) (MFI) is a [volume](../v/volume.md)-[weighted](../w/weighted.md) version of the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), combining price and [volume](../v/volume.md) data. It ranges from 0 to 100 and is termed as a [momentum](../m/momentum.md) [indicator](../i/indicator.md). +The [Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md) (MFI) is a [volume](../v/volume.md)-[weighted](../w/weighted.md) version of the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), combining price and [volume](../v/volume.md) data. It ranges from 0 to 100 and is termed as a [momentum](../m/momentum.md) [indicator](../i/indicator.md). ### Calculation: \[ \text{Typical Price (TP)} = \frac{(\text{High} + \text{Low} + \text{Close})}{3} \] @@ -73,7 +73,7 @@ The [Money Flow](../m/money_flow.md) [Index](../i/index.md) (MFI) is a [volume]( ## 6. Negative Volume Index (NVI) -The Negative [Volume](../v/volume.md) [Index](../i/index.md) (NVI) focuses on days when [volume](../v/volume.md) decreases from the previous day to indicate what [smart money](../s/smart_money.md) is doing. It's based on the idea that [smart money](../s/smart_money.md) is active on low-[volume](../v/volume.md) days. +The Negative [Volume](../v/volume.md) [Index](../i/index_instrument.md) (NVI) focuses on days when [volume](../v/volume.md) decreases from the previous day to indicate what [smart money](../s/smart_money.md) is doing. It's based on the idea that [smart money](../s/smart_money.md) is active on low-[volume](../v/volume.md) days. ### Calculation: The NVI is calculated with adjustments only on days when the [volume](../v/volume.md) drops from the previous day: @@ -89,7 +89,7 @@ The NVI is calculated with adjustments only on days when the [volume](../v/volum ## 7. Positive Volume Index (PVI) -The Positive [Volume](../v/volume.md) [Index](../i/index.md) (PVI) is the counterpart to the Negative [Volume](../v/volume.md) [Index](../i/index.md), focusing on days with increased [volume](../v/volume.md). It represents the behavior of retail investors who are thought to be more active on high-[volume](../v/volume.md) days. +The Positive [Volume](../v/volume.md) [Index](../i/index_instrument.md) (PVI) is the counterpart to the Negative [Volume](../v/volume.md) [Index](../i/index_instrument.md), focusing on days with increased [volume](../v/volume.md). It represents the behavior of retail investors who are thought to be more active on high-[volume](../v/volume.md) days. ### Calculation: The PVI adjust only on days when the [volume](../v/volume.md) increases: diff --git a/en/pedia/v/volume_momentum_indicators.md b/en/pedia/v/volume_momentum_indicators.md index 55048af5..11226995 100644 --- a/en/pedia/v/volume_momentum_indicators.md +++ b/en/pedia/v/volume_momentum_indicators.md @@ -37,7 +37,7 @@ A positive CMF [value](../v/value.md) indicates buying pressure, while a negativ ### 4. Money Flow Index (MFI) -The [Money Flow](../m/money_flow.md) [Index](../i/index.md) (MFI) is a [volume](../v/volume.md)-[weighted](../w/weighted.md) version of the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI). It ranges from 0 to 100 and is used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in the [market](../m/market.md). +The [Money Flow](../m/money_flow.md) [Index](../i/index_instrument.md) (MFI) is a [volume](../v/volume.md)-[weighted](../w/weighted.md) version of the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI). It ranges from 0 to 100 and is used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in the [market](../m/market.md). ##### Calculation: \[ \text{MFI} = 100 - \left( \frac{100}{1 + \text{[Money Flow](../m/money_flow.md) Ratio}} \right) \] @@ -55,16 +55,16 @@ A positive [value](../v/value.md) indicates increasing [volume](../v/volume.md), ### 6. Force Index (FI) -The Force [Index](../i/index.md) (FI) is an [indicator](../i/indicator.md) that uses price and [volume](../v/volume.md) to assess the power behind a price movement. +The Force [Index](../i/index_instrument.md) (FI) is an [indicator](../i/indicator.md) that uses price and [volume](../v/volume.md) to assess the power behind a price movement. ##### Calculation: \[ \text{Force Index} = \text{[Volume](../v/volume.md)} \times (\text{Close} - \text{Previous Close}) \] -A positive Force [Index](../i/index.md) suggests buying pressure, while a negative Force [Index](../i/index.md) indicates selling pressure. +A positive Force [Index](../i/index_instrument.md) suggests buying pressure, while a negative Force [Index](../i/index_instrument.md) indicates selling pressure. ### 7. Negative Volume Index (NVI) and Positive Volume Index (PVI) -The Negative [Volume](../v/volume.md) [Index](../i/index.md) (NVI) and Positive [Volume](../v/volume.md) [Index](../i/index.md) (PVI) are indicators that focus on [volume](../v/volume.md) changes. NVI increases when [volume](../v/volume.md) decreases, while PVI increases when [volume](../v/volume.md) increases. +The Negative [Volume](../v/volume.md) [Index](../i/index_instrument.md) (NVI) and Positive [Volume](../v/volume.md) [Index](../i/index_instrument.md) (PVI) are indicators that focus on [volume](../v/volume.md) changes. NVI increases when [volume](../v/volume.md) decreases, while PVI increases when [volume](../v/volume.md) increases. #### NVI Calculation: - If today's [volume](../v/volume.md) is less than the previous day's [volume](../v/volume.md): diff --git a/en/pedia/v/volume_oscillator.md b/en/pedia/v/volume_oscillator.md index 7d802c7b..ef71986f 100644 --- a/en/pedia/v/volume_oscillator.md +++ b/en/pedia/v/volume_oscillator.md @@ -56,7 +56,7 @@ Divergences between price and the VO can be powerful signals. A [bullish diverge The VO is rarely used in isolation. To improve the accuracy of its signals, it can be combined with other [technical indicators](../t/technical_indicators.md), such as: - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD):** To confirm [trend](../t/trend.md) strength and potential reversals. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** To gauge [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** To gauge [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **[Bollinger Bands](../b/bollinger_bands.md):** For identifying [breakout](../b/breakout.md) points when combined with [volume](../v/volume.md) integration from VO. ## Example: Real-World Application in Algorithmic Trading diff --git a/en/pedia/v/volume_rate_of_change.md b/en/pedia/v/volume_rate_of_change.md index 6c937e54..16d97009 100644 --- a/en/pedia/v/volume_rate_of_change.md +++ b/en/pedia/v/volume_rate_of_change.md @@ -42,7 +42,7 @@ A declining VROC during an [uptrend](../u/uptrend.md) may indicate that the buyi ### Confluence with Other Indicators -Traders often use the VROC in conjunction with other [technical indicators](../t/technical_indicators.md), such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and MACD, to [gain](../g/gain.md) a more comprehensive view of the [market](../m/market.md). This multi-[indicator](../i/indicator.md) approach helps in filtering out [false signals](../f/false_signals_in_trading.md) and confirming trading decisions. +Traders often use the VROC in conjunction with other [technical indicators](../t/technical_indicators.md), such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and MACD, to [gain](../g/gain.md) a more comprehensive view of the [market](../m/market.md). This multi-[indicator](../i/indicator.md) approach helps in filtering out [false signals](../f/false_signals_in_trading.md) and confirming trading decisions. ### Volume-Based Trading Rules diff --git a/en/pedia/v/volume_spread_analysis.md b/en/pedia/v/volume_spread_analysis.md index 97450ffc..085d93b2 100644 --- a/en/pedia/v/volume_spread_analysis.md +++ b/en/pedia/v/volume_spread_analysis.md @@ -46,7 +46,7 @@ Shakeout bars, or spring bars, show a sudden price drop followed by a sharp reco ## VSA and Technical Indicators -While VSA primarily relies on price, [volume](../v/volume.md), and spread, traders often combine it with [technical indicators](../t/technical_indicators.md) to enhance their analysis and decision-making processes. Examples of such indicators include moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md). +While VSA primarily relies on price, [volume](../v/volume.md), and spread, traders often combine it with [technical indicators](../t/technical_indicators.md) to enhance their analysis and decision-making processes. Examples of such indicators include moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md). ### Moving Averages Moving averages smooth out price data to identify trends and reversals. In VSA, moving averages can help confirm the [trend](../t/trend.md) direction during mark-up and mark-down phases. diff --git a/en/pedia/v/volume_weighted_indicators.md b/en/pedia/v/volume_weighted_indicators.md index 61a3598c..416e45c4 100644 --- a/en/pedia/v/volume_weighted_indicators.md +++ b/en/pedia/v/volume_weighted_indicators.md @@ -34,7 +34,7 @@ The VWMA is calculated similarly to a Simple Moving Average (SMA) but uses the [ ### 2. Volume Weighted RSI (VW-RSI) -The [Volume](../v/volume.md) [Weighted](../w/weighted.md) [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) modifies the traditional RSI by incorporating [volume](../v/volume.md). It provides a more accurate measurement of [momentum](../m/momentum.md) that takes [market](../m/market.md) activity into account. +The [Volume](../v/volume.md) [Weighted](../w/weighted.md) [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) modifies the traditional RSI by incorporating [volume](../v/volume.md). It provides a more accurate measurement of [momentum](../m/momentum.md) that takes [market](../m/market.md) activity into account. #### Calculation diff --git a/en/pedia/v/vxn_(cboe_nasdaq_volatility_index).md b/en/pedia/v/vxn_(cboe_nasdaq_volatility_index).md index 2e0ee0a1..b78082df 100644 --- a/en/pedia/v/vxn_(cboe_nasdaq_volatility_index).md +++ b/en/pedia/v/vxn_(cboe_nasdaq_volatility_index).md @@ -2,13 +2,13 @@ ## Introduction -The CBOE [Nasdaq](../n/nasdaq.md) [Volatility](../v/volatility.md) [Index](../i/index.md), commonly referred to as VXN, is a widely followed measure of [market](../m/market.md) expectations of near-term [volatility](../v/volatility.md) conveyed by the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md) (NDX) option prices. Similar to how the VIX represents implied [volatility](../v/volatility.md) for the S&P 500 [index](../i/index.md), the VXN tracks the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md). +The CBOE [Nasdaq](../n/nasdaq.md) [Volatility](../v/volatility.md) [Index](../i/index_instrument.md), commonly referred to as VXN, is a widely followed measure of [market](../m/market.md) expectations of near-term [volatility](../v/volatility.md) conveyed by the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md) (NDX) option prices. Similar to how the VIX represents implied [volatility](../v/volatility.md) for the S&P 500 [index](../i/index_instrument.md), the VXN tracks the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md). ## Understanding VXN ### Definition -VXN quantifies the [market](../m/market.md)'s expectations for [volatility](../v/volatility.md), based on [options](../o/options.md) on the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md). It is designed to provide a consistent, quantifiable [volatility](../v/volatility.md) measure, and is often used by investors to gauge [market sentiment](../m/market_sentiment.md) or to [hedge](../h/hedge.md) portfolio [risk](../r/risk.md). +VXN quantifies the [market](../m/market.md)'s expectations for [volatility](../v/volatility.md), based on [options](../o/options.md) on the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md). It is designed to provide a consistent, quantifiable [volatility](../v/volatility.md) measure, and is often used by investors to gauge [market sentiment](../m/market_sentiment.md) or to [hedge](../h/hedge.md) portfolio [risk](../r/risk.md). ### Calculation Methodology @@ -16,7 +16,7 @@ VXN is derived using a complex mathematical model developed by the Chicago Board ### Historical Context -Introduced in 2000, the VXN allows [market](../m/market.md) participants and analysts to examine [historical volatility](../h/historical_volatility.md) patterns in the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md). This can [offer](../o/offer.md) insights into periods of heightened [market](../m/market.md) stress or stability, corresponding to broader [market](../m/market.md) events. +Introduced in 2000, the VXN allows [market](../m/market.md) participants and analysts to examine [historical volatility](../h/historical_volatility.md) patterns in the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md). This can [offer](../o/offer.md) insights into periods of heightened [market](../m/market.md) stress or stability, corresponding to broader [market](../m/market.md) events. ## Importance of VXN @@ -30,7 +30,7 @@ For active traders and institutional investors, VXN is a crucial tool for [risk ### Trading Strategies -VXN provides ample opportunities for [derivatives](../d/derivatives.md) traders who engage in [options](../o/options.md) trading. The [index](../i/index.md) itself can be directly traded through [futures](../f/futures.md) and [options](../o/options.md) on VXN, or used to inform strategies involving NDX [options](../o/options.md). Acting on VXN insights can [offer](../o/offer.md) chances for [profit](../p/profit.md) by betting on or against anticipated [volatility](../v/volatility.md) changes. +VXN provides ample opportunities for [derivatives](../d/derivatives.md) traders who engage in [options](../o/options.md) trading. The [index](../i/index_instrument.md) itself can be directly traded through [futures](../f/futures.md) and [options](../o/options.md) on VXN, or used to inform strategies involving NDX [options](../o/options.md). Acting on VXN insights can [offer](../o/offer.md) chances for [profit](../p/profit.md) by betting on or against anticipated [volatility](../v/volatility.md) changes. ## Comparison with VIX @@ -90,7 +90,7 @@ During the burst of the dot-com bubble in the early 2000s, VXN experienced drama #### 2008 Financial Crisis -In the 2008 [financial crisis](../f/financial_crisis.md), VXN also surged, reflecting enormous [volatility](../v/volatility.md) in tech [stocks](../s/stock.md). Analysis of VXN during this period underscores the [index](../i/index.md)'s sensitivity to broad economic shocks and its [utility](../u/utility.md) in [risk management](../r/risk_management.md). +In the 2008 [financial crisis](../f/financial_crisis.md), VXN also surged, reflecting enormous [volatility](../v/volatility.md) in tech [stocks](../s/stock.md). Analysis of VXN during this period underscores the [index](../i/index_instrument.md)'s sensitivity to broad economic shocks and its [utility](../u/utility.md) in [risk management](../r/risk_management.md). ### Modern Usage @@ -104,4 +104,4 @@ Investment managers [leverage](../l/leverage.md) VXN data to diversify portfolio ## Conclusion -In conclusion, the CBOE [Nasdaq](../n/nasdaq.md) [Volatility](../v/volatility.md) [Index](../i/index.md) (VXN) is a vital [financial instrument](../f/financial_instrument.md) conveying [investor](../i/investor.md) expectations for [volatility](../v/volatility.md) in the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index.md). It plays a multifaceted role in trading, [risk management](../r/risk_management.md), and [market](../m/market.md) analysis. From speculative trading to algorithmic strategies, VXN offers comprehensive insights that help [market](../m/market.md) participants navigate the complex landscape of [financial markets](../f/financial_market.md). +In conclusion, the CBOE [Nasdaq](../n/nasdaq.md) [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VXN) is a vital [financial instrument](../f/financial_instrument.md) conveying [investor](../i/investor.md) expectations for [volatility](../v/volatility.md) in the [Nasdaq](../n/nasdaq.md)-100 [Index](../i/index_instrument.md). It plays a multifaceted role in trading, [risk management](../r/risk_management.md), and [market](../m/market.md) analysis. From speculative trading to algorithmic strategies, VXN offers comprehensive insights that help [market](../m/market.md) participants navigate the complex landscape of [financial markets](../f/financial_market.md). diff --git a/en/pedia/w/warrant_conversion.md b/en/pedia/w/warrant_conversion.md index 93c6a434..f69bbe42 100644 --- a/en/pedia/w/warrant_conversion.md +++ b/en/pedia/w/warrant_conversion.md @@ -10,7 +10,7 @@ [Equity](../e/equity.md) [warrants](../w/warrants_in_trading.md) allow the holder to buy [common stock](../c/common_stock.md) at a specific price within a certain timeframe. These are the most commonly issued [warrants](../w/warrants_in_trading.md) and carry a high degree of [leverage](../l/leverage.md), making them attractive to investors looking for significant stock appreciation. 2. **[Equity](../e/equity.md)-Linked [Warrants](../w/warrants_in_trading.md):** - [Equity](../e/equity.md)-linked [warrants](../w/warrants_in_trading.md) are tied to an [index](../i/index.md) or a basket of [stocks](../s/stock.md). The [value](../v/value.md) of these [warrants](../w/warrants_in_trading.md) fluctuates with the [underlying](../u/underlying.md) [equity](../e/equity.md)’s performance. These [warrants](../w/warrants_in_trading.md) can be used for hedging or investment purposes. + [Equity](../e/equity.md)-linked [warrants](../w/warrants_in_trading.md) are tied to an [index](../i/index_instrument.md) or a basket of [stocks](../s/stock.md). The [value](../v/value.md) of these [warrants](../w/warrants_in_trading.md) fluctuates with the [underlying](../u/underlying.md) [equity](../e/equity.md)’s performance. These [warrants](../w/warrants_in_trading.md) can be used for hedging or investment purposes. 3. **Covered [Warrants](../w/warrants_in_trading.md):** Covered [warrants](../w/warrants_in_trading.md) are issued by financial institutions rather than companies. They are generally [listed](../l/listed.md) on stock exchanges and cover a variety of [asset](../a/asset.md) classes, including [shares](../s/shares.md), indices, commodities, and currencies. diff --git a/en/pedia/w/warrants_and_derivatives.md b/en/pedia/w/warrants_and_derivatives.md index ed52e43c..7b69e8b2 100644 --- a/en/pedia/w/warrants_and_derivatives.md +++ b/en/pedia/w/warrants_and_derivatives.md @@ -34,7 +34,7 @@ ## Derivatives -[Derivatives](../d/derivatives.md) are financial contracts whose [value](../v/value.md) is derived from an [underlying asset](../u/underlying_asset.md), [index](../i/index.md), or rate. Common [underlying](../u/underlying.md) instruments include [stocks](../s/stock.md), bonds, commodities, currencies, [interest](../i/interest.md) rates, and [market](../m/market.md) indexes. +[Derivatives](../d/derivatives.md) are financial contracts whose [value](../v/value.md) is derived from an [underlying asset](../u/underlying_asset.md), [index](../i/index_instrument.md), or rate. Common [underlying](../u/underlying.md) instruments include [stocks](../s/stock.md), bonds, commodities, currencies, [interest](../i/interest.md) rates, and [market](../m/market.md) indexes. ### Types of Derivatives diff --git a/en/pedia/w/warsaw_stock_exchange_(wse).md b/en/pedia/w/warsaw_stock_exchange_(wse).md index a6841432..351226d7 100644 --- a/en/pedia/w/warsaw_stock_exchange_(wse).md +++ b/en/pedia/w/warsaw_stock_exchange_(wse).md @@ -16,7 +16,7 @@ Throughout the 1990s and early 2000s, the WSE experienced rapid growth. The numb - **1994**: Introduction of the electronic trading system WARSET. - **1998**: Launch of the first [derivatives](../d/derivatives.md) [market](../m/market.md). -- **2000**: Introduction of the WSE [Index](../i/index.md) (WIG), the main [market index](../m/market_index.md). +- **2000**: Introduction of the WSE [Index](../i/index_instrument.md) (WIG), the main [market index](../m/market_index.md). The [expansion](../e/expansion.md) was also supported by Poland's accession to the [European Union](../e/european_union_(eu).md) in 2004, which brought about increased [investor](../i/investor.md) confidence and integration with European [financial markets](../f/financial_market.md). @@ -94,27 +94,27 @@ Stock indices play a crucial role in the WSE, providing benchmarks for [market]( ### WIG20 -The WIG20 is the flagship [index](../i/index.md) of the WSE, comprising the 20 largest and most [liquid](../l/liquid.md) companies [listed](../l/listed.md) on the Main [Market](../m/market.md). It serves as a [benchmark](../b/benchmark.md) for the overall performance of the Warsaw Stock [Exchange](../e/exchange.md) and is widely used by institutional investors and [fund](../f/fund.md) managers. Key characteristics of the WIG20 include: +The WIG20 is the flagship [index](../i/index_instrument.md) of the WSE, comprising the 20 largest and most [liquid](../l/liquid.md) companies [listed](../l/listed.md) on the Main [Market](../m/market.md). It serves as a [benchmark](../b/benchmark.md) for the overall performance of the Warsaw Stock [Exchange](../e/exchange.md) and is widely used by institutional investors and [fund](../f/fund.md) managers. Key characteristics of the WIG20 include: -- **Blue-Chip [Stocks](../s/stock.md)**: The [index](../i/index.md) includes the most prominent companies in Poland, representing various sectors of the [economy](../e/economy.md). -- **[Market Capitalization](../m/market_capitalization.md)**: The WIG20 is a [capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md), meaning that larger companies have a greater influence on its performance. -- **[Liquidity](../l/liquidity.md)**: The inclusion of highly [liquid](../l/liquid.md) [stocks](../s/stock.md) ensures that the [index](../i/index.md) accurately reflects [market](../m/market.md) movements. +- **Blue-Chip [Stocks](../s/stock.md)**: The [index](../i/index_instrument.md) includes the most prominent companies in Poland, representing various sectors of the [economy](../e/economy.md). +- **[Market Capitalization](../m/market_capitalization.md)**: The WIG20 is a [capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md), meaning that larger companies have a greater influence on its performance. +- **[Liquidity](../l/liquidity.md)**: The inclusion of highly [liquid](../l/liquid.md) [stocks](../s/stock.md) ensures that the [index](../i/index_instrument.md) accurately reflects [market](../m/market.md) movements. ### mWIG40 -The mWIG40 [index](../i/index.md) represents [mid-cap](../m/mid-cap.md) companies [listed](../l/listed.md) on the WSE. It includes 40 companies that are larger than those in the sWIG80 [index](../i/index.md) but smaller than those in the WIG20. Key features of the mWIG40 include: +The mWIG40 [index](../i/index_instrument.md) represents [mid-cap](../m/mid-cap.md) companies [listed](../l/listed.md) on the WSE. It includes 40 companies that are larger than those in the sWIG80 [index](../i/index_instrument.md) but smaller than those in the WIG20. Key features of the mWIG40 include: -- **[Diversification](../d/diversification.md)**: The [index](../i/index.md) offers a diversified exposure to mid-sized companies across various sectors. +- **[Diversification](../d/diversification.md)**: The [index](../i/index_instrument.md) offers a diversified exposure to mid-sized companies across various sectors. - **Growth Potential**: [Mid-cap](../m/mid-cap.md) companies often exhibit higher growth potential compared to large-cap counterparts. - **[Benchmark](../b/benchmark.md)**: The mWIG40 serves as a [benchmark](../b/benchmark.md) for [mid-cap](../m/mid-cap.md) performance and is used by investors seeking to invest in medium-sized enterprises. ### sWIG80 -The sWIG80 [index](../i/index.md) comprises small-cap companies [listed](../l/listed.md) on the WSE. It includes 80 companies that are smaller in [market capitalization](../m/market_capitalization.md) compared to those in the WIG20 and mWIG40. Key characteristics of the sWIG80 include: +The sWIG80 [index](../i/index_instrument.md) comprises small-cap companies [listed](../l/listed.md) on the WSE. It includes 80 companies that are smaller in [market capitalization](../m/market_capitalization.md) compared to those in the WIG20 and mWIG40. Key characteristics of the sWIG80 include: -- **Small-Cap Focus**: The [index](../i/index.md) provides exposure to smaller companies, which can [offer](../o/offer.md) unique investment opportunities and higher growth potential. +- **Small-Cap Focus**: The [index](../i/index_instrument.md) provides exposure to smaller companies, which can [offer](../o/offer.md) unique investment opportunities and higher growth potential. - **Sector Representation**: The sWIG80 includes companies from a wide [range](../r/range.md) of sectors, ensuring diversified exposure. -- **Investment Opportunities**: The [index](../i/index.md) is used by investors looking to invest in smaller, potentially high-growth companies. +- **Investment Opportunities**: The [index](../i/index_instrument.md) is used by investors looking to invest in smaller, potentially high-growth companies. ## Role in Regional and Global Financial Landscape diff --git a/en/pedia/w/wash-sale_rule.md b/en/pedia/w/wash-sale_rule.md index 8d0edc47..43b0eccc 100644 --- a/en/pedia/w/wash-sale_rule.md +++ b/en/pedia/w/wash-sale_rule.md @@ -31,10 +31,10 @@ In this example, the loss realized from the [sale](../s/sale.md) on Day 0 cannot The concept of substantially identical securities can be somewhat subjective and nuanced, leading to various interpretations. Generally, the term includes the following scenarios: 1. **Identical [Stocks](../s/stock.md)**: Buying the same stock or [options](../o/options.md) on the same stock. -2. **Mutual Funds and ETFs**: Purchasing [shares](../s/shares.md) of a [mutual fund](../m/mutual_fund.md) or an [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF) that tracks the same or a very similar [index](../i/index.md) as the [security](../s/security.md) sold. +2. **Mutual Funds and ETFs**: Purchasing [shares](../s/shares.md) of a [mutual fund](../m/mutual_fund.md) or an [exchange](../e/exchange.md)-traded [fund](../f/fund.md) (ETF) that tracks the same or a very similar [index](../i/index_instrument.md) as the [security](../s/security.md) sold. 3. **Convertible Securities**: Swapping [common stock](../c/common_stock.md) for [preferred stock](../p/preferred_stock.md) or bonds convertible into [common stock](../c/common_stock.md). -For example, if an [investor](../i/investor.md) sells [shares](../s/shares.md) of an ETF tracking the S&P 500 [Index](../i/index.md) at a loss and buys [shares](../s/shares.md) of another ETF that also tracks the S&P 500 within the [wash](../w/wash.md)-[sale](../s/sale.md) period, the securities would likely be considered substantially identical, triggering the [wash](../w/wash.md)-[sale](../s/sale.md) rule. +For example, if an [investor](../i/investor.md) sells [shares](../s/shares.md) of an ETF tracking the S&P 500 [Index](../i/index_instrument.md) at a loss and buys [shares](../s/shares.md) of another ETF that also tracks the S&P 500 within the [wash](../w/wash.md)-[sale](../s/sale.md) period, the securities would likely be considered substantially identical, triggering the [wash](../w/wash.md)-[sale](../s/sale.md) rule. ### Disallowed Loss and Adjusted Cost Basis diff --git a/en/pedia/w/watchlist.md b/en/pedia/w/watchlist.md index 333b1deb..c0847bea 100644 --- a/en/pedia/w/watchlist.md +++ b/en/pedia/w/watchlist.md @@ -31,7 +31,7 @@ Criteria for selecting securities for your watchlist might include: - Price-to-[Earnings](../e/earnings.md) Ratio (P/E Ratio) - [Dividend Yield](../d/dividend_yield.md) - Recent News -- [Technical Indicators](../t/technical_indicator.md) (e.g., Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md)) +- [Technical Indicators](../t/technical_indicator.md) (e.g., Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)) ### 4. Filter Tools diff --git a/en/pedia/w/water_etf.md b/en/pedia/w/water_etf.md index cc43b1ce..ce72d154 100644 --- a/en/pedia/w/water_etf.md +++ b/en/pedia/w/water_etf.md @@ -6,7 +6,7 @@ In recent years, Water [Exchange](../e/exchange.md)-Traded Funds (ETFs) have gar Water ETFs are [exchange](../e/exchange.md)-traded funds that provide investors with exposure to a basket of companies involved in the water sector. This encompasses a wide [range](../r/range.md) of activities and industries, including water [utility](../u/utility.md) services, [infrastructure](../i/infrastructure.md), technology, and equipment related to water treatment, desalination, and purification projects. -ETFs are designed to track the performance of a specific [index](../i/index.md) or sector. Water ETFs, in particular, track indices that focus on companies that derive significant revenues or profits from water-related operations. +ETFs are designed to track the performance of a specific [index](../i/index_instrument.md) or sector. Water ETFs, in particular, track indices that focus on companies that derive significant revenues or profits from water-related operations. ## Significance of Water ETFs @@ -47,29 +47,29 @@ This segment includes companies that develop and provide technology and equipmen ## Major Water ETFs -Several ETFs [offer](../o/offer.md) investors exposure to the water sector. These funds vary in terms of their [index](../i/index.md) focus, geographical emphasis, and the types of companies they include. Some of the prominent Water ETFs include: +Several ETFs [offer](../o/offer.md) investors exposure to the water sector. These funds vary in terms of their [index](../i/index_instrument.md) focus, geographical emphasis, and the types of companies they include. Some of the prominent Water ETFs include: ### Invesco Water Resources ETF (PHO) -This ETF tracks the [NASDAQ](../n/nasdaq.md) OMX US Water [Index](../i/index.md), which comprises U.S.-[listed](../l/listed.md) companies focused on water conservation and purification, wastewater treatment, and supporting [infrastructure](../i/infrastructure.md). +This ETF tracks the [NASDAQ](../n/nasdaq.md) OMX US Water [Index](../i/index_instrument.md), which comprises U.S.-[listed](../l/listed.md) companies focused on water conservation and purification, wastewater treatment, and supporting [infrastructure](../i/infrastructure.md). - [Invesco Water Resources ETF](https://www.invesco.com/us/financial-products/etfs/product-detail?productId=PHO) ### First Trust Water ETF (FIW) -The First [Trust](../t/trust.md) Water ETF replicates the ISE Clean Edge Water [Index](../i/index.md), [investing](../i/investing.md) in companies involved in potable and wastewater treatment, storage and [distribution](../d/distribution.md), and other water-related industries. +The First [Trust](../t/trust.md) Water ETF replicates the ISE Clean Edge Water [Index](../i/index_instrument.md), [investing](../i/investing.md) in companies involved in potable and wastewater treatment, storage and [distribution](../d/distribution.md), and other water-related industries. - [First Trust Water ETF](https://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=FIW) ### iShares Global Water UCITS ETF (IH2O) -This ETF tracks the S&P Global Water [Index](../i/index.md) and provides global exposure, [investing](../i/investing.md) in companies across developed markets that are involved in water-related activities. +This ETF tracks the S&P Global Water [Index](../i/index_instrument.md) and provides global exposure, [investing](../i/investing.md) in companies across developed markets that are involved in water-related activities. - [iShares Global Water UCITS ETF](https://www.ishares.com/uk/individual/en/products/251869/ishares-global-water-ucits-etf) ### Lyxor World Water UCITS ETF (WATU) -The Lyxor World Water ETF aims to track the World Water [Index](../i/index.md) CW Net [Total Return Index](../t/total_return_index.md). It invests in international companies that are leaders in water utilities, [infrastructure](../i/infrastructure.md), equipment, and technology. +The Lyxor World Water ETF aims to track the World Water [Index](../i/index_instrument.md) CW Net [Total Return Index](../t/total_return_index.md). It invests in international companies that are leaders in water utilities, [infrastructure](../i/infrastructure.md), equipment, and technology. - [Lyxor World Water UCITS ETF](https://www.lyxoretf.co.uk/en/instit/products/equity-etf/lyxor-world-water-ucits-etf-dist-lu1280394386/eur) @@ -77,7 +77,7 @@ The Lyxor World Water ETF aims to track the World Water [Index](../i/index.md) C ### Underlying Index -Investors should examine the [index](../i/index.md) that the ETF tracks to understand the selection criteria and weighting methodology. The [index](../i/index.md) determines the diversity, sector focus, and geographical [distribution](../d/distribution.md) of the investments. +Investors should examine the [index](../i/index_instrument.md) that the ETF tracks to understand the selection criteria and weighting methodology. The [index](../i/index_instrument.md) determines the diversity, sector focus, and geographical [distribution](../d/distribution.md) of the investments. ### Expense Ratio diff --git a/en/pedia/w/wazirx.md b/en/pedia/w/wazirx.md index d09276c4..4e7d3192 100644 --- a/en/pedia/w/wazirx.md +++ b/en/pedia/w/wazirx.md @@ -36,7 +36,7 @@ In 2019, WazirX was acquired by [Binance](../b/binance.md), one of the world's l The WazirX API allows developers to integrate the platform's functionalities into their own applications. It supports various endpoints for [market](../m/market.md) data, trading, account balances, and more. The API is RESTful, making it easy to use for most developers. For detailed API documentation, visit the [WazirX API Documentation](https://wazirx.github.io/). ### Technical Indicators and Tools -WazirX offers a suite of [technical analysis tools](../t/technical_analysis_tools.md) to help traders make informed decisions. These tools include charting software with [multiple](../m/multiple.md) [technical indicators](../t/technical_indicator.md) such as Moving Averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and [Bollinger Bands](../b/bollinger_band.md). +WazirX offers a suite of [technical analysis tools](../t/technical_analysis_tools.md) to help traders make informed decisions. These tools include charting software with [multiple](../m/multiple.md) [technical indicators](../t/technical_indicator.md) such as Moving Averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and [Bollinger Bands](../b/bollinger_band.md). ### Liquidity and Market Depth [Liquidity](../l/liquidity.md) is crucial for any [trading platform](../t/trading_platform.md), and WazirX excels in this area. The partnership with [Binance](../b/binance.md) has significantly enhanced its [liquidity](../l/liquidity.md), enabling users to execute large trades with minimal [slippage](../s/slippage.md). [Market depth](../m/market_depth.md) charts are available to help traders understand the current buy and sell orders at various price levels. diff --git a/en/pedia/w/weak_form_efficiency.md b/en/pedia/w/weak_form_efficiency.md index 3dcf3606..699780da 100644 --- a/en/pedia/w/weak_form_efficiency.md +++ b/en/pedia/w/weak_form_efficiency.md @@ -27,7 +27,7 @@ If weak form [efficiency](../e/efficiency.md) holds true, then it has profound i ### Technical Analysis -[Technical analysis](../t/technical_analysis.md) involves analyzing past price movements and trading volumes to predict future price movements. Indicators such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_band.md) are commonly used tools. +[Technical analysis](../t/technical_analysis.md) involves analyzing past price movements and trading volumes to predict future price movements. Indicators such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_band.md) are commonly used tools. - **Moving Averages**: Traders use moving averages to smooth out price data and identify trends. However, if weak form [efficiency](../e/efficiency.md) is valid, moving averages would not consistently [yield](../y/yield.md) above-average returns since past price data is already reflected in current prices. diff --git a/en/pedia/w/weak_longs.md b/en/pedia/w/weak_longs.md index 4079be76..3c2897ee 100644 --- a/en/pedia/w/weak_longs.md +++ b/en/pedia/w/weak_longs.md @@ -23,7 +23,7 @@ The behavior of weak longs can amplify [market](../m/market.md) movements and co Traders and analysts use various tools and indicators to identify the presence of weak longs in the [market](../m/market.md). Some of these methods include: -1. **[Technical Analysis](../t/technical_analysis.md)**: Indicators such as [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Averages, and [Volume Analysis](../v/volume_analysis.md) can provide insights into [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, where weak longs are more likely to exit their positions. +1. **[Technical Analysis](../t/technical_analysis.md)**: Indicators such as [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Averages, and [Volume Analysis](../v/volume_analysis.md) can provide insights into [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions, where weak longs are more likely to exit their positions. 2. **[Sentiment Analysis](../s/sentiment_analysis.md)**: Monitoring [sentiment indicators](../s/sentiment_indicators.md), [social media](../s/social_media.md) chatter, and news sentiment can help gauge the proportion of [market](../m/market.md) participants who are more likely to be [weak hands](../w/weak_hands.md). 3. **Historical Patterns**: Studying past price movements and trading [volume](../v/volume.md) can reveal patterns associated with the behavior of weak longs during similar [market](../m/market.md) conditions. diff --git a/en/pedia/w/weak_sister.md b/en/pedia/w/weak_sister.md index 1a08897a..041dd5a1 100644 --- a/en/pedia/w/weak_sister.md +++ b/en/pedia/w/weak_sister.md @@ -1,6 +1,6 @@ # Weak Sister -In the realm of [finance](../f/finance.md) and trading, the term "Weak Sister" is often used to describe a [security](../s/security.md), sector, or [market](../m/market.md) that is underperforming relative to its peers. This term is commonly applied in various contexts—whether discussing a subgroup of [stocks](../s/stock.md) within a particular [industry](../i/industry.md), individual components within an [index](../i/index.md), or even entire [asset](../a/asset.md) classes within a diversified portfolio. Weak sisters can act as indicators for broader [market](../m/market.md) trends or potential opportunities for [trading strategies](../t/trading_strategies.md). This article aims to delve into the multifaceted aspects of weak sisters, their identification, implications, and the strategies traders employ to [leverage](../l/leverage.md) them. +In the realm of [finance](../f/finance.md) and trading, the term "Weak Sister" is often used to describe a [security](../s/security.md), sector, or [market](../m/market.md) that is underperforming relative to its peers. This term is commonly applied in various contexts—whether discussing a subgroup of [stocks](../s/stock.md) within a particular [industry](../i/industry.md), individual components within an [index](../i/index_instrument.md), or even entire [asset](../a/asset.md) classes within a diversified portfolio. Weak sisters can act as indicators for broader [market](../m/market.md) trends or potential opportunities for [trading strategies](../t/trading_strategies.md). This article aims to delve into the multifaceted aspects of weak sisters, their identification, implications, and the strategies traders employ to [leverage](../l/leverage.md) them. ## Identifying Weak Sisters @@ -9,13 +9,13 @@ In the realm of [finance](../f/finance.md) and trading, the term "Weak Sister" i The first step in identifying weak sisters involves the use of [relative performance metrics](../r/relative_performance_metrics.md). [Comparative analysis](../c/comparative_analysis.md) is typically employed to spot securities that lag behind their peers. Key [performance indicators](../p/performance_indicators.md) (KPIs) such as [Return](../r/return.md) on [Equity](../e/equity.md) (ROE), [Earnings](../e/earnings.md) Before [Interest](../i/interest.md) and [Taxes](../t/taxes.md) (EBIT), and net [income](../i/income.md) margins are commonly used. For example: 1. **Interquartile Analysis**: Evaluates the performance of securities within the same sector by segmenting them into quartiles. The lower [quartile](../q/quartile.md) represents the weak sisters. -2. **[Benchmark Comparison](../b/benchmark_comparison.md)**: Using a [benchmark](../b/benchmark.md) [index](../i/index.md) (e.g., S&P 500 for [large-cap stocks](../l/large_cap_stocks.md)), any [security](../s/security.md) underperforming the [benchmark](../b/benchmark.md) is tagged as a weak sister. +2. **[Benchmark Comparison](../b/benchmark_comparison.md)**: Using a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) (e.g., S&P 500 for [large-cap stocks](../l/large_cap_stocks.md)), any [security](../s/security.md) underperforming the [benchmark](../b/benchmark.md) is tagged as a weak sister. ### Technical Analysis Technical analysts employ [chart patterns](../c/chart_patterns.md), oscillators, and other tools to identify underperformance: -1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: An RSI below 30 may indicate that the [security](../s/security.md) is [oversold](../o/oversold.md) and potentially a weak sister. +1. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: An RSI below 30 may indicate that the [security](../s/security.md) is [oversold](../o/oversold.md) and potentially a weak sister. 2. **Moving Averages**: If a stock consistently trades below its 50-day or [200-day moving average](../1/200-day_moving_average.md), it can be categorized as a weak sister. 3. **[Volume Analysis](../v/volume_analysis.md)**: Declining [volume](../v/volume.md) on positive price movements can signal [underlying](../u/underlying.md) weakness. diff --git a/en/pedia/w/wealth_added_index_(wai).md b/en/pedia/w/wealth_added_index_(wai).md index 87135030..48f653bd 100644 --- a/en/pedia/w/wealth_added_index_(wai).md +++ b/en/pedia/w/wealth_added_index_(wai).md @@ -1,6 +1,6 @@ # Wealth Added Index (WAI) -The [Wealth](../w/wealth.md) Added [Index](../i/index.md) (WAI) is a performance measure used to evaluate the [value](../v/value.md) created by a [business](../b/business.md) for its shareholders over a specified period. The [principal](../p/principal.md) idea behind the WAI is to determine whether the management of a company is generating returns that exceed the costs of [capital employed](../c/capital_employed.md) in the [business](../b/business.md). This method integrates both [financial performance](../f/financial_performance.md) and the [cost of capital](../c/cost_of_capital.md), making it a comprehensive tool to assess true economic profitability. +The [Wealth](../w/wealth.md) Added [Index](../i/index_instrument.md) (WAI) is a performance measure used to evaluate the [value](../v/value.md) created by a [business](../b/business.md) for its shareholders over a specified period. The [principal](../p/principal.md) idea behind the WAI is to determine whether the management of a company is generating returns that exceed the costs of [capital employed](../c/capital_employed.md) in the [business](../b/business.md). This method integrates both [financial performance](../f/financial_performance.md) and the [cost of capital](../c/cost_of_capital.md), making it a comprehensive tool to assess true economic profitability. ## Definition @@ -29,7 +29,7 @@ WACC is the average [rate of return](../r/rate_of_return.md) a company is expect ## Significance of WAI -[Wealth](../w/wealth.md) Added [Index](../i/index.md) provides a very transparent and comprehensive way of measuring the [value](../v/value.md) that management is adding to or destroying for shareholders. Here are some of the major advantages of using WAI: +[Wealth](../w/wealth.md) Added [Index](../i/index_instrument.md) provides a very transparent and comprehensive way of measuring the [value](../v/value.md) that management is adding to or destroying for shareholders. Here are some of the major advantages of using WAI: 1. **Harmonizes Performance With [Capital](../c/capital.md) Costs**: Unlike traditional [accounting](../a/accounting.md) metrics which might show profitability without considering the [cost of capital](../c/cost_of_capital.md), WAI integrates this crucial element, giving a more accurate picture of economic profitability. @@ -53,7 +53,7 @@ Using the formula for WAI, we can calculate: \[ \text{WAI} = \$5,000,000 - \$4,000,000 \] \[ \text{WAI} = \$1,000,000 \] -Here, the [Wealth](../w/wealth.md) Added [Index](../i/index.md) is \$1,000,000. This outcome indicates that the company has created a [wealth](../w/wealth.md) of \$1,000,000 for its shareholders beyond the expected returns. +Here, the [Wealth](../w/wealth.md) Added [Index](../i/index_instrument.md) is \$1,000,000. This outcome indicates that the company has created a [wealth](../w/wealth.md) of \$1,000,000 for its shareholders beyond the expected returns. ## Relationship With Other Financial Metrics @@ -93,7 +93,7 @@ Investors use WAI in [multiple](../m/multiple.md) ways to inform their decision- ## Conclusion -The [Wealth](../w/wealth.md) Added [Index](../i/index.md) is a powerful tool for evaluating the true economic [profit](../p/profit.md) generated by a company. By factoring in both operational profits and the [cost of capital](../c/cost_of_capital.md), WAI provides a transparent measure of [value](../v/value.md) addition to shareholders. However, its complexity and the potential for short-termism highlight the importance of a balanced approach when utilizing WAI in performance measurement and investment decisions. For investors and managers seeking to drive and assess long-term [value](../v/value.md), WAI offers an integrated metric that aligns [financial performance](../f/financial_performance.md) with [capital](../c/capital.md) [efficiency](../e/efficiency.md). +The [Wealth](../w/wealth.md) Added [Index](../i/index_instrument.md) is a powerful tool for evaluating the true economic [profit](../p/profit.md) generated by a company. By factoring in both operational profits and the [cost of capital](../c/cost_of_capital.md), WAI provides a transparent measure of [value](../v/value.md) addition to shareholders. However, its complexity and the potential for short-termism highlight the importance of a balanced approach when utilizing WAI in performance measurement and investment decisions. For investors and managers seeking to drive and assess long-term [value](../v/value.md), WAI offers an integrated metric that aligns [financial performance](../f/financial_performance.md) with [capital](../c/capital.md) [efficiency](../e/efficiency.md). -For further reading, you can explore more about [Wealth](../w/wealth.md) Added [Index](../i/index.md) on the [official page of Stern Value Management](https://sternvaluemanagement.com/). +For further reading, you can explore more about [Wealth](../w/wealth.md) Added [Index](../i/index_instrument.md) on the [official page of Stern Value Management](https://sternvaluemanagement.com/). diff --git a/en/pedia/w/weather_derivative.md b/en/pedia/w/weather_derivative.md index af6d2d03..b098e95d 100644 --- a/en/pedia/w/weather_derivative.md +++ b/en/pedia/w/weather_derivative.md @@ -12,11 +12,11 @@ Companies use weather [derivatives](../d/derivatives.md) to [hedge](../h/hedge.m Weather [derivatives](../d/derivatives.md) come in various forms, with the most common being swaps, [futures](../f/futures.md), and [options](../o/options.md). -- **Weather Swaps:** Two parties agree to [exchange](../e/exchange.md) cash flows based on the outcome of a specific weather-related [index](../i/index.md). For example, a company concerned about excessive rainfall might enter into a [swap](../s/swap.md) where it receives payments if rainfall levels exceed a predetermined threshold, while making payments if rainfall is below that threshold. +- **Weather Swaps:** Two parties agree to [exchange](../e/exchange.md) cash flows based on the outcome of a specific weather-related [index](../i/index_instrument.md). For example, a company concerned about excessive rainfall might enter into a [swap](../s/swap.md) where it receives payments if rainfall levels exceed a predetermined threshold, while making payments if rainfall is below that threshold. -- **[Weather Futures](../w/weather_future.md):** These are standardized contracts traded on exchanges, where the buyer agrees to purchase, and the seller agrees to deliver, a weather [index](../i/index.md) at a future date. The [value](../v/value.md) of the [futures contract](../f/futures_contract.md) fluctuates based on changes in the [underlying](../u/underlying.md) weather [index](../i/index.md). +- **[Weather Futures](../w/weather_future.md):** These are standardized contracts traded on exchanges, where the buyer agrees to purchase, and the seller agrees to deliver, a weather [index](../i/index_instrument.md) at a future date. The [value](../v/value.md) of the [futures contract](../f/futures_contract.md) fluctuates based on changes in the [underlying](../u/underlying.md) weather [index](../i/index_instrument.md). -- **Weather [Options](../o/options.md):** These give the buyer the right, but not the obligation, to claim payments if a weather [index](../i/index.md) crosses a predefined level. A [call option](../c/call_option.md) might be used to protect against unusually hot weather, while a [put option](../p/put.md) could guard against unusually cold weather. +- **Weather [Options](../o/options.md):** These give the buyer the right, but not the obligation, to claim payments if a weather [index](../i/index_instrument.md) crosses a predefined level. A [call option](../c/call_option.md) might be used to protect against unusually hot weather, while a [put option](../p/put.md) could guard against unusually cold weather. **Weather Indices** @@ -26,9 +26,9 @@ The payouts from weather [derivatives](../d/derivatives.md) are determined by we - **CDD (Cooling Degree Days):** Measures the [demand](../d/demand.md) for energy needed to cool buildings. It is calculated by the sum of the number of degrees by which the daily mean temperature is above a base temperature. -- **Rainfall [Index](../i/index.md):** Based on the total amount of rainfall over a specified period. +- **Rainfall [Index](../i/index_instrument.md):** Based on the total amount of rainfall over a specified period. -- **Snowfall [Index](../i/index.md):** Based on the total amount of snowfall over a specified period. +- **Snowfall [Index](../i/index_instrument.md):** Based on the total amount of snowfall over a specified period. **How Weather [Derivatives](../d/derivatives.md) Work** @@ -36,13 +36,13 @@ The payouts from weather [derivatives](../d/derivatives.md) are determined by we Companies first determine their exposure to weather [risk](../r/risk.md). For instance, a ski resort might be concerned about insufficient snowfall, while a [utility](../u/utility.md) company might be worried about a mild winter. 2. **Structure the [Derivative](../d/derivative.md):** - The company structures a weather [derivative](../d/derivative.md) to address this [risk](../r/risk.md). This involves selecting an appropriate weather [index](../i/index.md), setting thresholds for payouts, and determining the [duration](../d/duration.md) of the contract. + The company structures a weather [derivative](../d/derivative.md) to address this [risk](../r/risk.md). This involves selecting an appropriate weather [index](../i/index_instrument.md), setting thresholds for payouts, and determining the [duration](../d/duration.md) of the contract. 3. **Trading and [Execution](../e/execution.md):** The [derivative](../d/derivative.md) can be traded over-the-counter (OTC) or through exchanges. Trading on an [exchange](../e/exchange.md) offers greater [liquidity](../l/liquidity.md) and [transparency](../t/transparency.md) but may be less customizable than OTC contracts. 4. **Monitoring and Settlement:** - Once the [derivative](../d/derivative.md) is in place, the parties monitor the weather [index](../i/index.md). If the observed weather deviates from the defined thresholds in the contract, payouts are made accordingly. Settlements are typically based on data from reputable meteorological organizations. + Once the [derivative](../d/derivative.md) is in place, the parties monitor the weather [index](../i/index_instrument.md). If the observed weather deviates from the defined thresholds in the contract, payouts are made accordingly. Settlements are typically based on data from reputable meteorological organizations. **Use Cases and Examples** @@ -50,7 +50,7 @@ The payouts from weather [derivatives](../d/derivatives.md) are determined by we Energy companies often use weather [derivatives](../d/derivatives.md) to [hedge](../h/hedge.md) against the [risk](../r/risk.md) of temperature fluctuations that could impact the [demand](../d/demand.md) for heating or cooling. For example, during a mild winter, less natural gas might be consumed for heating, leading to lower revenues for gas companies. A weather [derivative](../d/derivative.md) could mitigate this [risk](../r/risk.md) by providing payouts when the temperature deviates from normal levels. - **Agriculture:** - Farmers can use weather [derivatives](../d/derivatives.md) to protect against adverse weather conditions such as droughts or excessive rainfall, which can impact crop yields. By purchasing a [derivative](../d/derivative.md) tied to a rainfall [index](../i/index.md), a farmer can receive compensation if rainfall levels are too low or too high. + Farmers can use weather [derivatives](../d/derivatives.md) to protect against adverse weather conditions such as droughts or excessive rainfall, which can impact crop yields. By purchasing a [derivative](../d/derivative.md) tied to a rainfall [index](../i/index_instrument.md), a farmer can receive compensation if rainfall levels are too low or too high. - **Retail:** Retailers with seasonal products also face weather-related risks. For instance, sales of winter clothing could drop during a warm winter. A retail chain might use temperature-based weather [derivatives](../d/derivatives.md) to [offset](../o/offset.md) potential [revenue](../r/revenue.md) losses. @@ -74,7 +74,7 @@ Various [market](../m/market.md) participants are involved in the trading and st While weather [derivatives](../d/derivatives.md) [offer](../o/offer.md) significant benefits, they also come with challenges: -- **[Basis Risk](../b/basis_risk.md):** This is the [risk](../r/risk.md) that the weather [index](../i/index.md) used in the [derivative](../d/derivative.md) does not perfectly correlate with the financial impact on the company. For example, a weather station's data might not exactly represent conditions at a specific location where the company operates. +- **[Basis Risk](../b/basis_risk.md):** This is the [risk](../r/risk.md) that the weather [index](../i/index_instrument.md) used in the [derivative](../d/derivative.md) does not perfectly correlate with the financial impact on the company. For example, a weather station's data might not exactly represent conditions at a specific location where the company operates. - **Data Quality:** Reliable and accurate weather data is crucial for the proper functioning of weather [derivatives](../d/derivatives.md). Discrepancies in data can lead to disputes and incorrect settlements. diff --git a/en/pedia/w/weather_future.md b/en/pedia/w/weather_future.md index 7caeae01..f00645af 100644 --- a/en/pedia/w/weather_future.md +++ b/en/pedia/w/weather_future.md @@ -8,12 +8,12 @@ Weather [futures](../f/futures.md) primarily operate on the principle of hedging ### How Weather Futures Work -Weather [futures](../f/futures.md) are typically traded on specialized exchanges, with the Chicago Mercantile [Exchange](../e/exchange.md) (CME) being one of the most notable platforms [offering](../o/offering.md) these instruments. The trading occurs in units called "contracts," which have predetermined parameters defining the weather event, location, time frame, and [index](../i/index.md) type. +Weather [futures](../f/futures.md) are typically traded on specialized exchanges, with the Chicago Mercantile [Exchange](../e/exchange.md) (CME) being one of the most notable platforms [offering](../o/offering.md) these instruments. The trading occurs in units called "contracts," which have predetermined parameters defining the weather event, location, time frame, and [index](../i/index_instrument.md) type. Here's how it generally works: -1. **Choosing a Weather [Index](../i/index.md):** The first step is to choose a relevant weather [index](../i/index.md), such as temperature (measured in degrees), rainfall (measured in millimeters), or snowfall (measured in inches). +1. **Choosing a Weather [Index](../i/index_instrument.md):** The first step is to choose a relevant weather [index](../i/index_instrument.md), such as temperature (measured in degrees), rainfall (measured in millimeters), or snowfall (measured in inches). 2. **Defining the Period and Location:** Specify the time period (daily, monthly, seasonal) and geographical location (city, region) for which the weather data [will](../w/will.md) be relevant. -3. **Specifying the Strike [Value](../v/value.md):** This is the threshold level for the weather [index](../i/index.md) above or below which the financial settlement [will](../w/will.md) occur. +3. **Specifying the Strike [Value](../v/value.md):** This is the threshold level for the weather [index](../i/index_instrument.md) above or below which the financial settlement [will](../w/will.md) occur. 4. **Position Taking:** Investors or companies can take a long or short position. A long position benefits from weather conditions exceeding the strike [value](../v/value.md), while a short position benefits if the conditions fall short of the strike [value](../v/value.md). 5. **Settlement:** At the end of the contract period, the actual weather data is compared to the strike [value](../v/value.md). If the actual data deviates from the strike [value](../v/value.md) in favor of the position taken, a financial [payout](../p/payout.md) is made. @@ -50,12 +50,12 @@ Weather [futures](../f/futures.md) are a subset of a broader category known as [ ### Weather Options Weather [options](../o/options.md) function similarly to traditional [options](../o/options.md). They give the holder the right but not the obligation to buy or sell a weather-related [asset](../a/asset.md) at a predefined strike [value](../v/value.md). They come in two types: -- **[Call Option](../c/call_option.md):** Benefits if the weather [index](../i/index.md) exceeds the strike [value](../v/value.md). -- **[Put Option](../p/put.md):** Benefits if the weather [index](../i/index.md) falls below the strike [value](../v/value.md). +- **[Call Option](../c/call_option.md):** Benefits if the weather [index](../i/index_instrument.md) exceeds the strike [value](../v/value.md). +- **[Put Option](../p/put.md):** Benefits if the weather [index](../i/index_instrument.md) falls below the strike [value](../v/value.md). ### Weather Swaps -Weather swaps involve exchanging future cash flows based on actual weather outcomes versus predefined thresholds. They typically involve two parties agreeing to [swap](../s/swap.md) the difference between the actual weather [index](../i/index.md) [value](../v/value.md) and an agreed-upon strike [value](../v/value.md). +Weather swaps involve exchanging future cash flows based on actual weather outcomes versus predefined thresholds. They typically involve two parties agreeing to [swap](../s/swap.md) the difference between the actual weather [index](../i/index_instrument.md) [value](../v/value.md) and an agreed-upon strike [value](../v/value.md). ## Challenges of Weather Futures @@ -69,7 +69,7 @@ Despite their potential benefits, trading weather [futures](../f/futures.md) inv ### Chicago Mercantile Exchange (CME) -The CME is one of the leading platforms [offering](../o/offering.md) weather [futures](../f/futures.md) and other [weather derivatives](../w/weather_derivative.md). It provides [robust](../r/robust.md) [trading systems](../t/trading_systems.md), a variety of weather [index](../i/index.md) products, and wide geographical coverage. +The CME is one of the leading platforms [offering](../o/offering.md) weather [futures](../f/futures.md) and other [weather derivatives](../w/weather_derivative.md). It provides [robust](../r/robust.md) [trading systems](../t/trading_systems.md), a variety of weather [index](../i/index_instrument.md) products, and wide geographical coverage. For more information, visit: [CME Weather Derivatives](https://www.cmegroup.com/trading/weather/) diff --git a/en/pedia/w/weather_insurance.md b/en/pedia/w/weather_insurance.md index e6e7bb7b..31118ac1 100644 --- a/en/pedia/w/weather_insurance.md +++ b/en/pedia/w/weather_insurance.md @@ -27,7 +27,7 @@ Coverage triggers are specific conditions or thresholds that must be met for the [Payout](../p/payout.md) structures in weather [insurance](../i/insurance.md) can vary depending on the policy type: - **Indemnity-Based Payouts**: Compensation is based on the actual financial loss incurred by the policyholder. Requires a claims process and loss assessment. -- **[Index](../i/index.md)-Based Payouts**: Also known as parametric payouts, these are triggered by reaching predefined weather parameters without the need for loss verification. Payouts are predetermined and occur automatically when conditions are met. +- **[Index](../i/index_instrument.md)-Based Payouts**: Also known as parametric payouts, these are triggered by reaching predefined weather parameters without the need for loss verification. Payouts are predetermined and occur automatically when conditions are met. ### Policy Duration and Terms @@ -84,7 +84,7 @@ Construction projects are particularly susceptible to weather delays and associa ## Understanding Parametric Weather Insurance -Parametric weather [insurance](../i/insurance.md) is becoming increasingly popular due to its simplicity and [efficiency](../e/efficiency.md). This type of [insurance](../i/insurance.md) relies on an [index](../i/index.md) to determine payouts, without the need for loss verification. Key features include: +Parametric weather [insurance](../i/insurance.md) is becoming increasingly popular due to its simplicity and [efficiency](../e/efficiency.md). This type of [insurance](../i/insurance.md) relies on an [index](../i/index_instrument.md) to determine payouts, without the need for loss verification. Key features include: 1. **Trigger Parameters**: Predetermined thresholds for specific weather data, such as rainfall amounts, wind speeds, or temperatures. 2. **Data Sources**: Reliable and objective data from meteorological agencies or weather stations, ensuring [transparency](../t/transparency.md). @@ -122,7 +122,7 @@ The accuracy and reliability of weather [insurance](../i/insurance.md) rely heav ### Agriculture: Index-Based Crop Insurance in India -India's agriculture sector heavily depends on monsoon rains, making it vulnerable to droughts and excessive rainfall. [Index](../i/index.md)-based crop [insurance](../i/insurance.md) schemes, such as the Pradhan Mantri Fasal Bima Yojana (PMFBY), provide coverage based on rainfall indices. These schemes have helped millions of farmers safeguard their livelihoods against variable monsoon patterns. +India's agriculture sector heavily depends on monsoon rains, making it vulnerable to droughts and excessive rainfall. [Index](../i/index_instrument.md)-based crop [insurance](../i/insurance.md) schemes, such as the Pradhan Mantri Fasal Bima Yojana (PMFBY), provide coverage based on rainfall indices. These schemes have helped millions of farmers safeguard their livelihoods against variable monsoon patterns. ### Event Cancellation: Wimbledon Tennis Championship @@ -143,7 +143,7 @@ The Wimbledon Tennis Championship, being an outdoor event, faces significant wea ### Future Trends 1. **Integration with Climate Change Models**: Incorporating climate projections to address long-term weather risks and changing patterns. -2. **Enhanced Parametric Products**: Development of more sophisticated [index](../i/index.md)-based [insurance](../i/insurance.md) products catering to diverse [industry](../i/industry.md) needs. +2. **Enhanced Parametric Products**: Development of more sophisticated [index](../i/index_instrument.md)-based [insurance](../i/insurance.md) products catering to diverse [industry](../i/industry.md) needs. 3. **[Blockchain](../b/blockchain_in_trading.md) for Claims Processing**: Utilizing [blockchain](../b/blockchain_in_trading.md) technology for transparent and efficient claims processing. 4. **[Public-Private Partnerships](../p/public-private_partnerships.md)**: Collaboration between governmental bodies and private insurers to increase coverage availability and affordability. diff --git a/en/pedia/w/wedge.md b/en/pedia/w/wedge.md index 36b8c127..f56c45c9 100644 --- a/en/pedia/w/wedge.md +++ b/en/pedia/w/wedge.md @@ -38,13 +38,13 @@ Wedges can be tricky to interpret because they appear as both continuation and [ ### Confirmation Indicators - **[Volume](../v/volume.md):** An increase in [volume](../v/volume.md) at the point of [breakout](../b/breakout.md) helps confirm the authenticity of the move. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** RSI [divergence](../d/divergence.md) can indicate the strength or weakness behind the move. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** RSI [divergence](../d/divergence.md) can indicate the strength or weakness behind the move. - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD):** The alignment of moving averages can provide further insights into the direction of the [breakout](../b/breakout.md). ## Real-world Examples and Applications ### Equities -In the [stock market](../s/stock_market.md), wedges often appear in individual stock charts and broader indices. For example, a rising wedge in an [equity](../e/equity.md) [index](../i/index.md) like the S&P 500 might signal an impending [market](../m/market.md) [correction](../c/correction.md). +In the [stock market](../s/stock_market.md), wedges often appear in individual stock charts and broader indices. For example, a rising wedge in an [equity](../e/equity.md) [index](../i/index_instrument.md) like the S&P 500 might signal an impending [market](../m/market.md) [correction](../c/correction.md). ### Forex [Currency](../c/currency.md) pairs also exhibit [wedge patterns](../w/wedge_patterns.md). For instance, a falling wedge in EUR/USD might signal an upcoming bullish [trend](../t/trend.md), indicating a potential [reversal](../r/reversal.md) from a [downtrend](../d/downtrend.md). diff --git a/en/pedia/w/weekend_effect.md b/en/pedia/w/weekend_effect.md index b760794d..ac05a943 100644 --- a/en/pedia/w/weekend_effect.md +++ b/en/pedia/w/weekend_effect.md @@ -28,7 +28,7 @@ In many markets, financial transactions are settled a few days after the [trade] ## Empirical Evidence -Several empirical studies have provided a [wealth](../w/wealth.md) of data supporting the existence of the Weekend Effect. One notable study by French (1980) found that from 1953-1977, the [average return](../a/average_return.md) on the S&P 500 [index](../i/index.md) was significantly negative on Mondays. +Several empirical studies have provided a [wealth](../w/wealth.md) of data supporting the existence of the Weekend Effect. One notable study by French (1980) found that from 1953-1977, the [average return](../a/average_return.md) on the S&P 500 [index](../i/index_instrument.md) was significantly negative on Mondays. A more recent study by Lucey and Cuthbertson (2017) looked at 47 international markets over the period from 1992-2013. They found that while the magnitude of the Weekend Effect has diminished over time, it still persists in many countries, particularly in emerging markets. diff --git a/en/pedia/w/weekly_chart.md b/en/pedia/w/weekly_chart.md index a9be0de4..223e61bd 100644 --- a/en/pedia/w/weekly_chart.md +++ b/en/pedia/w/weekly_chart.md @@ -41,7 +41,7 @@ A weekly chart plots a [financial asset](../f/financial_asset.md)'s closing pric - **[Support and Resistance](../s/support_and_resistance.md) Lines**: Drawing trendlines on weekly charts can help in identifying long-term [support and resistance](../s/support_and_resistance.md) levels, which are crucial for making trading decisions. #### Indicators -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: These and other [technical indicators](../t/technical_indicator.md) can be applied to weekly charts to provide additional insights into the [asset](../a/asset.md)'s [momentum](../m/momentum.md), strength, and potential reversals. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: These and other [technical indicators](../t/technical_indicator.md) can be applied to weekly charts to provide additional insights into the [asset](../a/asset.md)'s [momentum](../m/momentum.md), strength, and potential reversals. ### Strategies Utilizing Weekly Charts diff --git a/en/pedia/w/weekly_mortgage_applications_survey.md b/en/pedia/w/weekly_mortgage_applications_survey.md index 835adf7c..c253677e 100644 --- a/en/pedia/w/weekly_mortgage_applications_survey.md +++ b/en/pedia/w/weekly_mortgage_applications_survey.md @@ -36,11 +36,11 @@ The survey employs a [robust](../r/robust.md) methodology to ensure accuracy and ### 1. Mortgage Application Volume Index -The [Mortgage](../m/mortgage.md) Application [Volume](../v/volume.md) [Index](../i/index.md) is a key component of the survey. It includes several sub-indices that measure different aspects of application activity: +The [Mortgage](../m/mortgage.md) Application [Volume](../v/volume.md) [Index](../i/index_instrument.md) is a key component of the survey. It includes several sub-indices that measure different aspects of application activity: -- **[Market](../m/market.md) Composite [Index](../i/index.md)**: Measures the overall [volume](../v/volume.md) of [mortgage](../m/mortgage.md) applications. -- **[Refinance](../r/refinance.md) [Index](../i/index.md)**: Tracks the [volume](../v/volume.md) of refinancing applications. This is critical as it provides insights into homeowner behavior in response to [interest rate](../i/interest_rate.md) changes. -- **Purchase [Index](../i/index.md)**: Measures the [volume](../v/volume.md) of applications for [home](../h/home.md) purchases, indicating the level of [demand](../d/demand.md) in the housing [market](../m/market.md). +- **[Market](../m/market.md) Composite [Index](../i/index_instrument.md)**: Measures the overall [volume](../v/volume.md) of [mortgage](../m/mortgage.md) applications. +- **[Refinance](../r/refinance.md) [Index](../i/index_instrument.md)**: Tracks the [volume](../v/volume.md) of refinancing applications. This is critical as it provides insights into homeowner behavior in response to [interest rate](../i/interest_rate.md) changes. +- **Purchase [Index](../i/index_instrument.md)**: Measures the [volume](../v/volume.md) of applications for [home](../h/home.md) purchases, indicating the level of [demand](../d/demand.md) in the housing [market](../m/market.md). ### 2. Mortgage Rates and Terms diff --git a/en/pedia/w/weekly_return_analysis.md b/en/pedia/w/weekly_return_analysis.md index 09f28b2d..a4ad260e 100644 --- a/en/pedia/w/weekly_return_analysis.md +++ b/en/pedia/w/weekly_return_analysis.md @@ -60,7 +60,7 @@ Using adjusted closing prices, calculate the weekly returns: ### Strategy Development -1. **[Regression Analysis](../r/regression_analysis.md):** Model weekly returns based on predictor variables like moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), or other [technical indicators](../t/technical_indicators.md). +1. **[Regression Analysis](../r/regression_analysis.md):** Model weekly returns based on predictor variables like moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), or other [technical indicators](../t/technical_indicators.md). 2. **Machine Learning Models:** Train models to predict next week's returns using past weekly returns and other features. 3. **[Backtesting](../b/backtesting.md):** Simulate the performance of [trading strategies](../t/trading_strategies.md) using historical weekly returns to validate the algorithm. diff --git a/en/pedia/w/weekly_trading_strategies.md b/en/pedia/w/weekly_trading_strategies.md index 042820f0..9208340d 100644 --- a/en/pedia/w/weekly_trading_strategies.md +++ b/en/pedia/w/weekly_trading_strategies.md @@ -10,7 +10,7 @@ Weekly [trading strategies](../t/trading_strategies.md) refer to methods and app - **[Candlestick Patterns](../c/candlestick_patterns.md)**: Traders often use [candlestick patterns](../c/candlestick_patterns.md) to predict short-term price direction. Key patterns include Dojis, Engulfing patterns, and Morning Stars. - **Moving Averages**: Simple Moving Averages (SMA) and Exponential Moving Averages (EMA) help identify trends and potential [reversal](../r/reversal.md) points. For weekly traders, the 5-day and 10-day moving averages are particularly insightful. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: The RSI helps identify [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions, which might signal a [reversal](../r/reversal.md). An RSI reading above 70 indicates [overbought](../o/overbought.md) conditions, while below 30 signals [oversold](../o/oversold.md). +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: The RSI helps identify [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions, which might signal a [reversal](../r/reversal.md). An RSI reading above 70 indicates [overbought](../o/overbought.md) conditions, while below 30 signals [oversold](../o/oversold.md). ### 2. **Fundamental Analysis** diff --git a/en/pedia/w/weighted.md b/en/pedia/w/weighted.md index 2d1ab067..dc4963f2 100644 --- a/en/pedia/w/weighted.md +++ b/en/pedia/w/weighted.md @@ -1,6 +1,6 @@ # Weighted -In the context of trading and [finance](../f/finance.md), "weighted" often refers to the practice of assigning different levels of importance or weight to various components of a portfolio, [index](../i/index.md), or set of data points. Weighting is a crucial concept in numerous financial analyses and methodologies, as it allows traders, investors, and analysts to reflect the relative significance of different assets or data points more accurately. +In the context of trading and [finance](../f/finance.md), "weighted" often refers to the practice of assigning different levels of importance or weight to various components of a portfolio, [index](../i/index_instrument.md), or set of data points. Weighting is a crucial concept in numerous financial analyses and methodologies, as it allows traders, investors, and analysts to reflect the relative significance of different assets or data points more accurately. ### Weighted Average @@ -14,7 +14,7 @@ where \( w_i \) are the weights and \( x_i \) are the data points. 1. **[Portfolio Management](../p/par.md)**: Investors often deal with weighted portfolios where different assets are assigned specific weights according to factors such as [risk tolerance](../r/risk_tolerance.md), investment goals, and [market](../m/market.md) conditions. For instance, a portfolio could be 60% [stocks](../s/stock.md), 30% bonds, and 10% commodities. -2. **[Index Construction](../i/index_construction.md)**: Many financial indices, like the S&P 500, are weighted indices. The S&P 500, for example, is a [capitalization](../c/capitalization.md)-weighted [index](../i/index.md), meaning that companies with larger [market](../m/market.md) capitalizations have a greater influence on the [index](../i/index.md)'s performance. +2. **[Index Construction](../i/index_construction.md)**: Many financial indices, like the S&P 500, are weighted indices. The S&P 500, for example, is a [capitalization](../c/capitalization.md)-weighted [index](../i/index_instrument.md), meaning that companies with larger [market](../m/market.md) capitalizations have a greater influence on the [index](../i/index_instrument.md)'s performance. 3. **[Risk Management](../r/risk_management.md)**: In [risk management](../r/risk_management.md), particularly in [Value](../v/value.md)-at-[Risk](../r/risk.md) (VaR) models, different scenarios or factors may be weighted based on their likelihood or significance in [risk](../r/risk.md) modeling. @@ -56,7 +56,7 @@ where \( w_i \) are the weights and \( s_i \) are the scores assigned to each cr Several tools and platforms provide functionalities for weighted calculations. Here are a few examples: -1. **[Bloomberg Terminal](../b/bloomberg_terminal.md)**: Professional investors and analysts use [Bloomberg](../b/bloomberg.md) terminals for [weighted portfolio](../w/weighted_portfolio.md) and [index](../i/index.md) analyses. +1. **[Bloomberg Terminal](../b/bloomberg_terminal.md)**: Professional investors and analysts use [Bloomberg](../b/bloomberg.md) terminals for [weighted portfolio](../w/weighted_portfolio.md) and [index](../i/index_instrument.md) analyses. [Bloomberg Terminal](https://www.bloomberg.com/professional/solution/bloomberg-terminal/) diff --git a/en/pedia/w/weighted_alpha.md b/en/pedia/w/weighted_alpha.md index 2246223c..525aa866 100644 --- a/en/pedia/w/weighted_alpha.md +++ b/en/pedia/w/weighted_alpha.md @@ -1,6 +1,6 @@ # Weighted Alpha -[Weighted](../w/weighted.md) [Alpha](../a/alpha.md) is a specific variant of the [alpha](../a/alpha.md) metric that is [weighted](../w/weighted.md) over a certain time period to emphasize the most recent price trends of a [security](../s/security.md). [Alpha](../a/alpha.md) itself is a measure of an investment's [excess return](../e/excess_return.md) relative to a [benchmark](../b/benchmark.md) [index](../i/index.md), indicating how much an [asset](../a/asset.md) has outperformed or underperformed a reference point such as the S&P 500. By applying a weighting mechanism to [alpha](../a/alpha.md), [Weighted](../w/weighted.md) [Alpha](../a/alpha.md) helps traders and investors to prioritize more recent performance, [offering](../o/offering.md) a nuanced view of a [security](../s/security.md)’s [momentum](../m/momentum.md). +[Weighted](../w/weighted.md) [Alpha](../a/alpha.md) is a specific variant of the [alpha](../a/alpha.md) metric that is [weighted](../w/weighted.md) over a certain time period to emphasize the most recent price trends of a [security](../s/security.md). [Alpha](../a/alpha.md) itself is a measure of an investment's [excess return](../e/excess_return.md) relative to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), indicating how much an [asset](../a/asset.md) has outperformed or underperformed a reference point such as the S&P 500. By applying a weighting mechanism to [alpha](../a/alpha.md), [Weighted](../w/weighted.md) [Alpha](../a/alpha.md) helps traders and investors to prioritize more recent performance, [offering](../o/offering.md) a nuanced view of a [security](../s/security.md)’s [momentum](../m/momentum.md). ### Importance in Algorithmic Trading diff --git a/en/pedia/w/weighted_average.md b/en/pedia/w/weighted_average.md index 2deeb08e..0e80fe48 100644 --- a/en/pedia/w/weighted_average.md +++ b/en/pedia/w/weighted_average.md @@ -39,7 +39,7 @@ Therefore, the portfolio’s [weighted](../w/weighted.md) [average return](../a/ ## Applications in Finance -[Weighted averages](../w/weighted_averages_in_trading.md) find applications in various financial scenarios including [portfolio management](../p/par.md), calculation of averages, [index](../i/index.md) building, and [risk](../r/risk.md) assessment. +[Weighted averages](../w/weighted_averages_in_trading.md) find applications in various financial scenarios including [portfolio management](../p/par.md), calculation of averages, [index](../i/index_instrument.md) building, and [risk](../r/risk.md) assessment. ### Portfolio Management @@ -65,7 +65,7 @@ The [weighted](../w/weighted.md) average [expected return](../e/expected_return. #### Example -The S&P 500 is a [market](../m/market.md)-[value](../v/value.md)-[weighted](../w/weighted.md) [index](../i/index.md). This means each stock’s weight in the [index](../i/index.md) is based on its [market capitalization](../m/market_capitalization.md). A company with a larger [market capitalization](../m/market_capitalization.md) [will](../w/will.md) have greater influence on the [index](../i/index.md)’s performance. +The S&P 500 is a [market](../m/market.md)-[value](../v/value.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md). This means each stock’s weight in the [index](../i/index_instrument.md) is based on its [market capitalization](../m/market_capitalization.md). A company with a larger [market capitalization](../m/market_capitalization.md) [will](../w/will.md) have greater influence on the [index](../i/index_instrument.md)’s performance. ### Weighted Average Cost of Capital (WACC) @@ -130,6 +130,6 @@ Where Cov(A, B) is the [covariance](../c/covariance.md) between the returns of a ## Conclusion -[Weighted averages](../w/weighted_averages_in_trading.md) are a powerful statistical tool widely used in [finance](../f/finance.md), [economics](../e/economics.md), and many other fields. They provide a nuanced way to understand data by [accounting](../a/accounting.md) for the varying importance of different elements. Whether used in [portfolio management](../p/par.md), [index](../i/index.md) building, or [algorithmic trading](../a/accountability.md), [weighted averages](../w/weighted_averages_in_trading.md) [offer](../o/offer.md) a level of precision and relevance that simple averages cannot achieve. Understanding how to calculate and apply them effectively can significantly enhance analytical and decision-making capabilities in various financial contexts. +[Weighted averages](../w/weighted_averages_in_trading.md) are a powerful statistical tool widely used in [finance](../f/finance.md), [economics](../e/economics.md), and many other fields. They provide a nuanced way to understand data by [accounting](../a/accounting.md) for the varying importance of different elements. Whether used in [portfolio management](../p/par.md), [index](../i/index_instrument.md) building, or [algorithmic trading](../a/accountability.md), [weighted averages](../w/weighted_averages_in_trading.md) [offer](../o/offer.md) a level of precision and relevance that simple averages cannot achieve. Understanding how to calculate and apply them effectively can significantly enhance analytical and decision-making capabilities in various financial contexts. For further details and practical tools, you can explore financial platforms like **[Bloomberg](https://www.bloomberg.com/)** and **[NYU Stern School of Business](https://www.stern.nyu.edu/faculty-research/centers-initiatives/volatility-institute)**. These resources provide a [wealth](../w/wealth.md) of information and [data analytics](../d/data_analytics.md) tools that incorporate [weighted averages](../w/weighted_averages_in_trading.md) across a wide [range](../r/range.md) of financial applications. \ No newline at end of file diff --git a/en/pedia/w/weighted_average_market_capitalization.md b/en/pedia/w/weighted_average_market_capitalization.md index 01ae2086..aa4d7d58 100644 --- a/en/pedia/w/weighted_average_market_capitalization.md +++ b/en/pedia/w/weighted_average_market_capitalization.md @@ -1,10 +1,10 @@ # Weighted Average Market Capitalization -[Weighted Average](../w/weighted_average.md) [Market Capitalization](../m/market_capitalization.md) (WAMC) is a crucial financial concept often utilized in the construction and analysis of stock indices, [portfolio management](../p/par.md), and [financial analysis](../f/financial_analysis.md). It provides a nuanced approach to understanding the proportionate impact of individual securities within a broader set of investment assets, such as a stock [index](../i/index.md) or an investment portfolio. This in-depth exploration covers its definition, calculation, application, advantages, limitations, and comparisons with other forms of [market capitalization](../m/market_capitalization.md) weighting. +[Weighted Average](../w/weighted_average.md) [Market Capitalization](../m/market_capitalization.md) (WAMC) is a crucial financial concept often utilized in the construction and analysis of stock indices, [portfolio management](../p/par.md), and [financial analysis](../f/financial_analysis.md). It provides a nuanced approach to understanding the proportionate impact of individual securities within a broader set of investment assets, such as a stock [index](../i/index_instrument.md) or an investment portfolio. This in-depth exploration covers its definition, calculation, application, advantages, limitations, and comparisons with other forms of [market capitalization](../m/market_capitalization.md) weighting. ## Definition -WAMC is a method that assigns weights to each component [security](../s/security.md) in an [index](../i/index.md) or a portfolio based on its [market capitalization](../m/market_capitalization.md). [Market capitalization](../m/market_capitalization.md) itself is the total [market value](../m/market_value.md) of a company's outstanding [shares](../s/shares.md) of stock, calculated as the stock price multiplied by the number of outstanding [shares](../s/shares.md). The weighting according to [market](../m/market.md) cap ensures that larger companies—by [market value](../m/market_value.md)—[exercise](../e/exercise.md) a more substantial impact on the [index](../i/index.md) or portfolio's overall performance compared to smaller companies. +WAMC is a method that assigns weights to each component [security](../s/security.md) in an [index](../i/index_instrument.md) or a portfolio based on its [market capitalization](../m/market_capitalization.md). [Market capitalization](../m/market_capitalization.md) itself is the total [market value](../m/market_value.md) of a company's outstanding [shares](../s/shares.md) of stock, calculated as the stock price multiplied by the number of outstanding [shares](../s/shares.md). The weighting according to [market](../m/market.md) cap ensures that larger companies—by [market value](../m/market_value.md)—[exercise](../e/exercise.md) a more substantial impact on the [index](../i/index_instrument.md) or portfolio's overall performance compared to smaller companies. ## Calculation @@ -12,7 +12,7 @@ The calculation of WAMC involves several steps: ### Step 1: Calculate Market Capitalization -For each [security](../s/security.md) within the [index](../i/index.md) or portfolio, calculate its [market capitalization](../m/market_capitalization.md) using the formula: +For each [security](../s/security.md) within the [index](../i/index_instrument.md) or portfolio, calculate its [market capitalization](../m/market_capitalization.md) using the formula: ``` [Market Capitalization](../m/market_capitalization.md) = Stock Price x Number of Outstanding [Shares](../s/shares.md) @@ -20,7 +20,7 @@ For each [security](../s/security.md) within the [index](../i/index.md) or portf ### Step 2: Sum All Market Capitalizations -Add up the [market](../m/market.md) capitalizations of all the individual securities to find the total [market capitalization](../m/market_capitalization.md) of the [index](../i/index.md) or portfolio: +Add up the [market](../m/market.md) capitalizations of all the individual securities to find the total [market capitalization](../m/market_capitalization.md) of the [index](../i/index_instrument.md) or portfolio: ``` Total [Market Capitalization](../m/market_capitalization.md) = Σ([Market Capitalization](../m/market_capitalization.md) of each [security](../s/security.md)) @@ -36,11 +36,11 @@ Weight of Security_i = [Market](../m/market.md) Capitalization_i / Total [Market ### Step 4: Apply the Weights -Multiply each [security](../s/security.md)'s weight by its [market](../m/market.md) [return](../r/return.md) to identify its contribution to the [index](../i/index.md) or portfolio's performance. +Multiply each [security](../s/security.md)'s weight by its [market](../m/market.md) [return](../r/return.md) to identify its contribution to the [index](../i/index_instrument.md) or portfolio's performance. ### Example Calculation: -Suppose an [index](../i/index.md) consists of three companies with the following [market](../m/market.md) data: +Suppose an [index](../i/index_instrument.md) consists of three companies with the following [market](../m/market.md) data: | Company | Stock Price | Outstanding [Shares](../s/shares.md) | [Market Capitalization](../m/market_capitalization.md) | |---------|--------------|---------------------|-----------------------| @@ -63,17 +63,17 @@ Indices like the S&P 500 and the [Nasdaq](../n/nasdaq.md) Composite are based on ### Portfolio Management -Portfolio managers use WAMC to allocate assets efficiently. For example, a [fund](../f/fund.md) designed to mimic the performance of the S&P 500 [will](../w/will.md) weigh investments according to the [market capitalization](../m/market_capitalization.md) of the companies in the [index](../i/index.md). +Portfolio managers use WAMC to allocate assets efficiently. For example, a [fund](../f/fund.md) designed to mimic the performance of the S&P 500 [will](../w/will.md) weigh investments according to the [market capitalization](../m/market_capitalization.md) of the companies in the [index](../i/index_instrument.md). ### Financial Analysis -Financial analysts use WAMC to compare indices or portfolios by assessing how changes in the performance of larger companies affect the overall [index](../i/index.md) or portfolio. +Financial analysts use WAMC to compare indices or portfolios by assessing how changes in the performance of larger companies affect the overall [index](../i/index_instrument.md) or portfolio. ## Advantages of Using WAMC ### Reflects Economic Contribution -WAMC gives a more accurate representation of each company's economic contribution to the [index](../i/index.md). Larger companies, which typically have more significant influence on the [economy](../e/economy.md), are adequately [weighted](../w/weighted.md). +WAMC gives a more accurate representation of each company's economic contribution to the [index](../i/index_instrument.md). Larger companies, which typically have more significant influence on the [economy](../e/economy.md), are adequately [weighted](../w/weighted.md). ### Reduced Volatility @@ -87,7 +87,7 @@ WAMC-based indices and portfolios can effectively track the performance of the [ ### Overconcentration -One limitation is that WAMC can lead to an overconcentration in a few large companies, causing an [index](../i/index.md) or portfolio to be disproportionately affected by the performance of a small number of [stocks](../s/stock.md). +One limitation is that WAMC can lead to an overconcentration in a few large companies, causing an [index](../i/index_instrument.md) or portfolio to be disproportionately affected by the performance of a small number of [stocks](../s/stock.md). ### Reduced Diversification @@ -95,7 +95,7 @@ With larger weights assigned to [large-cap stocks](../l/large_cap_stocks.md), sm ### Static Nature -Static WAMC models do not account for [market dynamics](../m/market_dynamics.md) such as new entrants, which can lead to discrepancies over time between the [index](../i/index.md) composition and the actual [market](../m/market.md). +Static WAMC models do not account for [market dynamics](../m/market_dynamics.md) such as new entrants, which can lead to discrepancies over time between the [index](../i/index_instrument.md) composition and the actual [market](../m/market.md). ## Comparisons with Other Weighting Methods @@ -113,7 +113,7 @@ Price weighting assigns weights based on the stock price, as seen in indices lik ## Practical Example -A practical example of WAMC can be observed in the construction of the S&P 500 [index](../i/index.md). The S&P 500 includes 500 large-cap U.S. companies [weighted](../w/weighted.md) by [market capitalization](../m/market_capitalization.md). For instance, as of October 2023, a company like Apple Inc. (AAPL) exerts a more significant influence on the [index](../i/index.md)'s performance compared to a smaller company like J.B. Hunt Transport Services (JBHT). +A practical example of WAMC can be observed in the construction of the S&P 500 [index](../i/index_instrument.md). The S&P 500 includes 500 large-cap U.S. companies [weighted](../w/weighted.md) by [market capitalization](../m/market_capitalization.md). For instance, as of October 2023, a company like Apple Inc. (AAPL) exerts a more significant influence on the [index](../i/index_instrument.md)'s performance compared to a smaller company like J.B. Hunt Transport Services (JBHT). For more details on S&P 500 methodology, you can visit [S&P Dow Jones Indices](https://www.spglobal.com/spdji/en/indices/equity/sp-500/). diff --git a/en/pedia/w/weighted_index_arbitrage.md b/en/pedia/w/weighted_index_arbitrage.md index 4918d0d2..dd6e0541 100644 --- a/en/pedia/w/weighted_index_arbitrage.md +++ b/en/pedia/w/weighted_index_arbitrage.md @@ -1,32 +1,32 @@ # Weighted Index Arbitrage ### Introduction -[Weighted](../w/weighted.md) [index](../i/index.md) [arbitrage](../a/arbitrage.md) refers to a [trading strategy](../t/trading_strategy.md) that seeks to exploit price inefficiencies between an [index](../i/index.md) and its constituent [stocks](../s/stock.md). This strategy extensively uses quantitative methods, often facilitated by sophisticated algorithms and high-frequency [trading systems](../t/trading_systems.md), to identify and [capitalize](../c/capitalize.md) on discrepancies in the [weighted](../w/weighted.md) sum of an [index](../i/index.md) and its individual components. Given the advancements in computational power and [data analytics](../d/data_analytics.md), [weighted](../w/weighted.md) [index](../i/index.md) [arbitrage](../a/arbitrage.md) has become an essential tool for [hedge](../h/hedge.md) funds and [proprietary trading](../p/proprietary_trading.md) firms. +[Weighted](../w/weighted.md) [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) refers to a [trading strategy](../t/trading_strategy.md) that seeks to exploit price inefficiencies between an [index](../i/index_instrument.md) and its constituent [stocks](../s/stock.md). This strategy extensively uses quantitative methods, often facilitated by sophisticated algorithms and high-frequency [trading systems](../t/trading_systems.md), to identify and [capitalize](../c/capitalize.md) on discrepancies in the [weighted](../w/weighted.md) sum of an [index](../i/index_instrument.md) and its individual components. Given the advancements in computational power and [data analytics](../d/data_analytics.md), [weighted](../w/weighted.md) [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) has become an essential tool for [hedge](../h/hedge.md) funds and [proprietary trading](../p/proprietary_trading.md) firms. ### Understanding the Index and Its Weighting -An [index](../i/index.md) is a statistical measure representing a composite [value](../v/value.md) derived from its [underlying](../u/underlying.md) components, which can be [stocks](../s/stock.md), bonds, or other financial instruments. The weighting of each component can be based on: +An [index](../i/index_instrument.md) is a statistical measure representing a composite [value](../v/value.md) derived from its [underlying](../u/underlying.md) components, which can be [stocks](../s/stock.md), bonds, or other financial instruments. The weighting of each component can be based on: - **[Market Capitalization](../m/market_capitalization.md):** The [value](../v/value.md) of a company as determined by its stock price multiplied by the number of outstanding [shares](../s/shares.md). -- **Price Weighting:** Where [stocks](../s/stock.md) with higher prices have more influence on the [index](../i/index.md) [value](../v/value.md). +- **Price Weighting:** Where [stocks](../s/stock.md) with higher prices have more influence on the [index](../i/index_instrument.md) [value](../v/value.md). - **Equal Weighting:** Each stock contributes equally regardless of its [market](../m/market.md) cap or price. The most prevalent types of [weighted](../w/weighted.md) indices include: - **[Market](../m/market.md) Cap-[Weighted](../w/weighted.md) Indices:** e.g., S&P 500, [NASDAQ](../n/nasdaq.md)-100. - **Price-[Weighted](../w/weighted.md) Indices:** e.g., Dow Jones Industrial Average (DJIA). -- **Equal-[Weighted](../w/weighted.md) Indices:** [Listed](../l/listed.md) separately from their [capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) counterparts, e.g., the S&P 500 [Equal Weight](../e/equal_weight.md) [Index](../i/index.md). +- **Equal-[Weighted](../w/weighted.md) Indices:** [Listed](../l/listed.md) separately from their [capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) counterparts, e.g., the S&P 500 [Equal Weight](../e/equal_weight.md) [Index](../i/index_instrument.md). ### Mechanics of Weighted Index Arbitrage -[Weighted](../w/weighted.md) [index](../i/index.md) [arbitrage](../a/arbitrage.md) involves three main steps: +[Weighted](../w/weighted.md) [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) involves three main steps: #### Identifying Mispricing -This is the fundamental aspect where the [trader](../t/trader.md) analyses the real-time prices of an [index](../i/index.md) and its components. Discrepancies can arise due to: +This is the fundamental aspect where the [trader](../t/trader.md) analyses the real-time prices of an [index](../i/index_instrument.md) and its components. Discrepancies can arise due to: -- **Delayed Adjustments:** [Index](../i/index.md) prices might not reflect instant changes in the prices of [underlying](../u/underlying.md) [stocks](../s/stock.md). -- **[Market Anomalies](../m/market_anomalies.md):** Temporary [supply](../s/supply.md)-[demand](../d/demand.md) imbalances in the [market](../m/market.md) might cause disparities between the [index](../i/index.md) and component prices. +- **Delayed Adjustments:** [Index](../i/index_instrument.md) prices might not reflect instant changes in the prices of [underlying](../u/underlying.md) [stocks](../s/stock.md). +- **[Market Anomalies](../m/market_anomalies.md):** Temporary [supply](../s/supply.md)-[demand](../d/demand.md) imbalances in the [market](../m/market.md) might cause disparities between the [index](../i/index_instrument.md) and component prices. #### Constructing a Replication Portfolio -The [trader](../t/trader.md) creates a portfolio that mirrors the [index](../i/index.md)'s exact composition, reflecting the current weights of its components. This requires accurate real-time data and computation. +The [trader](../t/trader.md) creates a portfolio that mirrors the [index](../i/index_instrument.md)'s exact composition, reflecting the current weights of its components. This requires accurate real-time data and computation. #### Execution of Trades [Execution](../e/execution.md) involves exploiting the identified mispricing by: @@ -35,14 +35,14 @@ The [trader](../t/trader.md) creates a portfolio that mirrors the [index](../i/i - **Hedging Risks:** Ensuring that [market](../m/market.md) risks are minimized through careful portfolio adjustments. ### Quantitative Methods and Algorithms -Due to the complexity and speed required for [weighted](../w/weighted.md) [index](../i/index.md) [arbitrage](../a/arbitrage.md), quantitative methods and algorithms play a crucial role. These methods include: +Due to the complexity and speed required for [weighted](../w/weighted.md) [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md), quantitative methods and algorithms play a crucial role. These methods include: - **Statistical [Arbitrage](../a/arbitrage.md) Models:** These models use statistical methods to predict price movements and identify [arbitrage](../a/arbitrage.md) opportunities. - **Machine [Learning Algorithms](../l/learning_algorithms_in_trading.md):** These algorithms can improve over time through experience and more data, making predictions more accurate. - **High-Frequency Trading (HFT):** Leveraging advanced technology to execute trades in milliseconds, ensuring near-instantaneous [arbitrage](../a/arbitrage.md) [execution](../e/execution.md). ### Risk Factors -Despite its potential for [profit](../p/profit.md), [weighted](../w/weighted.md) [index](../i/index.md) [arbitrage](../a/arbitrage.md) comes with inherent risks: +Despite its potential for [profit](../p/profit.md), [weighted](../w/weighted.md) [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) comes with inherent risks: - **[Execution](../e/execution.md) Risks:** Delays in [trade](../t/trade.md) [execution](../e/execution.md) can erode anticipated profits. - **[Liquidity](../l/liquidity.md) Risks:** Not all components may have sufficient [liquidity](../l/liquidity.md) to execute required trades swiftly. @@ -50,7 +50,7 @@ Despite its potential for [profit](../p/profit.md), [weighted](../w/weighted.md) - **Regulatory Risks:** Changes in [market](../m/market.md) regulations can impact [arbitrage](../a/arbitrage.md) strategies, such as increased scrutiny on HFT practices. ### Prominent Players in Weighted Index Arbitrage -Several [hedge](../h/hedge.md) funds and [proprietary trading](../p/proprietary_trading.md) firms specialize in or utilize [weighted](../w/weighted.md) [index](../i/index.md) [arbitrage](../a/arbitrage.md) as part of their [trading strategies](../t/trading_strategies.md). Some of these players include: +Several [hedge](../h/hedge.md) funds and [proprietary trading](../p/proprietary_trading.md) firms specialize in or utilize [weighted](../w/weighted.md) [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) as part of their [trading strategies](../t/trading_strategies.md). Some of these players include: - **Renaissance Technologies**: https://www.rentec.com/ - **Two Sigma Investments**: https://www.twosigma.com/ @@ -58,14 +58,14 @@ Several [hedge](../h/hedge.md) funds and [proprietary trading](../p/proprietary_ - **Virtu Financial**: https://www.virtu.com/ ### Real-World Applications and Examples -[Weighted](../w/weighted.md) [index](../i/index.md) [arbitrage](../a/arbitrage.md) strategies are widely employed in real-world [financial markets](../f/financial_market.md). Examples include: +[Weighted](../w/weighted.md) [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) strategies are widely employed in real-world [financial markets](../f/financial_market.md). Examples include: - **ETF [Arbitrage](../a/arbitrage.md):** Exploiting price differences between [Exchange](../e/exchange.md)-Traded Funds (ETFs) and their [underlying](../u/underlying.md) indices. -- **[Index](../i/index.md) [Rebalancing](../r/rebalancing.md):** Capitalizing on periodic [rebalancing](../r/rebalancing.md) events of indices where adjustments in component weights cause temporary mispricing. +- **[Index](../i/index_instrument.md) [Rebalancing](../r/rebalancing.md):** Capitalizing on periodic [rebalancing](../r/rebalancing.md) events of indices where adjustments in component weights cause temporary mispricing. - **Cross-[Exchange](../e/exchange.md) [Arbitrage](../a/arbitrage.md):** Taking advantage of price discrepancies of securities [listed](../l/listed.md) on [multiple](../m/multiple.md) exchanges. ### Technological Infrastructure -Advanced technological [infrastructure](../i/infrastructure.md) is essential for firms engaging in [weighted](../w/weighted.md) [index](../i/index.md) [arbitrage](../a/arbitrage.md). Essential components include: +Advanced technological [infrastructure](../i/infrastructure.md) is essential for firms engaging in [weighted](../w/weighted.md) [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md). Essential components include: - **Low Latency Networks:** To transmit data and execute trades swiftly. - **Advanced [Data Analytics](../d/data_analytics.md) Platforms:** For real-time data processing and model [simulation](../s/simulation_in_trading.md). @@ -73,5 +73,5 @@ Advanced technological [infrastructure](../i/infrastructure.md) is essential for - **[Risk Management](../r/risk_management.md) Systems:** Ensuring comprehensive [risk](../r/risk.md) assessment and mitigation strategies. ### Conclusion -[Weighted](../w/weighted.md) [index](../i/index.md) [arbitrage](../a/arbitrage.md) is a sophisticated [trading strategy](../t/trading_strategy.md) that relies heavily on advanced quantitative methods and technologies. It represents a microcosm of how modern [financial markets](../f/financial_market.md) [leverage](../l/leverage.md) computational power and [data analytics](../d/data_analytics.md) to exploit fleeting [market](../m/market.md) inefficiencies. As markets evolve, the techniques and tools employed in [weighted](../w/weighted.md) [index](../i/index.md) [arbitrage](../a/arbitrage.md) [will](../w/will.md) continue to advance, pushing the boundaries of traditional trading philosophies and [offering](../o/offering.md) new opportunities for [profit](../p/profit.md) generation. +[Weighted](../w/weighted.md) [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) is a sophisticated [trading strategy](../t/trading_strategy.md) that relies heavily on advanced quantitative methods and technologies. It represents a microcosm of how modern [financial markets](../f/financial_market.md) [leverage](../l/leverage.md) computational power and [data analytics](../d/data_analytics.md) to exploit fleeting [market](../m/market.md) inefficiencies. As markets evolve, the techniques and tools employed in [weighted](../w/weighted.md) [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) [will](../w/will.md) continue to advance, pushing the boundaries of traditional trading philosophies and [offering](../o/offering.md) new opportunities for [profit](../p/profit.md) generation. diff --git a/en/pedia/w/weighted_index_funds.md b/en/pedia/w/weighted_index_funds.md index cbaef8c3..c9ce2bb5 100644 --- a/en/pedia/w/weighted_index_funds.md +++ b/en/pedia/w/weighted_index_funds.md @@ -1,11 +1,11 @@ # Weighted Index Funds -[Weighted](../w/weighted.md) [index](../i/index.md) funds are a type of [investment fund](../i/investment_fund.md) which aims to replicate and track the performance of a specified [index](../i/index.md). Rather than selecting specific [stocks](../s/stock.md), these funds allocate their resources in a way that mirrors the composition of a stock [market index](../m/market_index.md). The "[weighted](../w/weighted.md)" aspect refers to the strategy employed to determine the proportion of each [asset](../a/asset.md) in the [fund](../f/fund.md). +[Weighted](../w/weighted.md) [index](../i/index_instrument.md) funds are a type of [investment fund](../i/investment_fund.md) which aims to replicate and track the performance of a specified [index](../i/index_instrument.md). Rather than selecting specific [stocks](../s/stock.md), these funds allocate their resources in a way that mirrors the composition of a stock [market index](../m/market_index.md). The "[weighted](../w/weighted.md)" aspect refers to the strategy employed to determine the proportion of each [asset](../a/asset.md) in the [fund](../f/fund.md). ## Types of Weighted Indexes ### Market Capitalization-Weighted Indexes -The most common method of weighting an [index fund](../i/index_fund.md) is to use [market capitalization](../m/market_capitalization.md). This means the larger the company's [market capitalization](../m/market_capitalization.md), the more it [will](../w/will.md) influence the [index](../i/index.md)'s performance. Major stock indices like the S&P 500, the [Nasdaq](../n/nasdaq.md) 100, and the FTSE 100 use this approach. +The most common method of weighting an [index fund](../i/index_fund.md) is to use [market capitalization](../m/market_capitalization.md). This means the larger the company's [market capitalization](../m/market_capitalization.md), the more it [will](../w/will.md) influence the [index](../i/index_instrument.md)'s performance. Major stock indices like the S&P 500, the [Nasdaq](../n/nasdaq.md) 100, and the FTSE 100 use this approach. #### Advantages - Reflect the real-world economic footprint of companies. @@ -14,10 +14,10 @@ The most common method of weighting an [index fund](../i/index_fund.md) is to us #### Disadvantages - Heavily invested in larger companies, which might lead to overexposure to a particular sector. -- The [index](../i/index.md) can become "top-heavy" where the performance is overly influenced by a few large companies. +- The [index](../i/index_instrument.md) can become "top-heavy" where the performance is overly influenced by a few large companies. ### Price-Weighted Indexes -Price-[weighted](../w/weighted.md) indexes allocate more weight to [stocks](../s/stock.md) with higher prices. The Dow Jones Industrial Average (DJIA) is a prime example of this type of [index](../i/index.md). +Price-[weighted](../w/weighted.md) indexes allocate more weight to [stocks](../s/stock.md) with higher prices. The Dow Jones Industrial Average (DJIA) is a prime example of this type of [index](../i/index_instrument.md). #### Advantages - Simplicity in its calculation. @@ -28,7 +28,7 @@ Price-[weighted](../w/weighted.md) indexes allocate more weight to [stocks](../s - Can be unduly influenced by stock splits and other corporate actions that affect price rather than real [economic value](../e/economic_value.md). ### Equal-Weighted Indexes -In an equal-[weighted](../w/weighted.md) [index](../i/index.md), all constituents are allocated the same weight regardless of their [market capitalization](../m/market_capitalization.md) or stock price. +In an equal-[weighted](../w/weighted.md) [index](../i/index_instrument.md), all constituents are allocated the same weight regardless of their [market capitalization](../m/market_capitalization.md) or stock price. #### Advantages - Reduces the [risk](../r/risk.md) of overexposure to any single entity. @@ -43,7 +43,7 @@ These indexes use fundamental metrics such as [earnings](../e/earnings.md), divi #### Advantages - Potential for better [return](../r/return.md) characteristics through [fundamental analysis](../f/fundamental_analysis.md). -- Reduces the [risk](../r/risk.md) of speculative [bubbles](../b/bubble.md) affecting the [index](../i/index.md). +- Reduces the [risk](../r/risk.md) of speculative [bubbles](../b/bubble.md) affecting the [index](../i/index_instrument.md). #### Disadvantages - More complex and could be harder to understand. @@ -51,27 +51,27 @@ These indexes use fundamental metrics such as [earnings](../e/earnings.md), divi ## Algorithmic Trading Strategies Utilizing Weighted Index Funds -[Algorithmic trading](../a/algorithmic_trading.md) involves the use of complex algorithms and [mathematical models](../m/mathematical_models_in_trading.md) to decide the timing, price, and [volume](../v/volume.md) of trades. When applied to [weighted](../w/weighted.md) [index](../i/index.md) funds, several strategies can be employed: +[Algorithmic trading](../a/algorithmic_trading.md) involves the use of complex algorithms and [mathematical models](../m/mathematical_models_in_trading.md) to decide the timing, price, and [volume](../v/volume.md) of trades. When applied to [weighted](../w/weighted.md) [index](../i/index_instrument.md) funds, several strategies can be employed: ### Mean Reversion -This strategy assumes that [asset](../a/asset.md) prices [will](../w/will.md) revert to their historical mean levels. In the context of [weighted](../w/weighted.md) [index](../i/index.md) funds, an algorithm may identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions and execute trades to capture the reversion to the mean. +This strategy assumes that [asset](../a/asset.md) prices [will](../w/will.md) revert to their historical mean levels. In the context of [weighted](../w/weighted.md) [index](../i/index_instrument.md) funds, an algorithm may identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions and execute trades to capture the reversion to the mean. ### Momentum Trading -Algorithms can be designed to [capitalize](../c/capitalize.md) on existing trends in the [market](../m/market.md). For [weighted](../w/weighted.md) [index](../i/index.md) funds, this might involve analyzing historical performance and buying into funds that have recently performed well, assuming that the [trend](../t/trend.md) [will](../w/will.md) continue. +Algorithms can be designed to [capitalize](../c/capitalize.md) on existing trends in the [market](../m/market.md). For [weighted](../w/weighted.md) [index](../i/index_instrument.md) funds, this might involve analyzing historical performance and buying into funds that have recently performed well, assuming that the [trend](../t/trend.md) [will](../w/will.md) continue. ### Arbitrage Opportunities [Arbitrage](../a/arbitrage.md) strategies aim to exploit inefficiencies in the [market](../m/market.md). For instance, if the [weighted](../w/weighted.md) [index fund](../i/index_fund.md)'s price deviates from the [underlying](../u/underlying.md) assets' calculated [value](../v/value.md), an algorithm could execute trades to [profit](../p/profit.md) from the discrepancy. ### Statistical Arbitrage -This involves the use of advanced statistical models to find and exploit price inefficiencies between correlated assets. In [weighted](../w/weighted.md) [index](../i/index.md) funds, it would involve trading based on predicted temporary mispricings in the [fund](../f/fund.md) relative to its [underlying](../u/underlying.md) components. +This involves the use of advanced statistical models to find and exploit price inefficiencies between correlated assets. In [weighted](../w/weighted.md) [index](../i/index_instrument.md) funds, it would involve trading based on predicted temporary mispricings in the [fund](../f/fund.md) relative to its [underlying](../u/underlying.md) components. ### Machine Learning -With advances in machine learning, algorithms can now predict [market](../m/market.md) movements based on large datasets, including historical price data, trading volumes, and perhaps even news sentiments. For [weighted](../w/weighted.md) [index](../i/index.md) funds, these models can predict future price movements and adjust positions accordingly. +With advances in machine learning, algorithms can now predict [market](../m/market.md) movements based on large datasets, including historical price data, trading volumes, and perhaps even news sentiments. For [weighted](../w/weighted.md) [index](../i/index_instrument.md) funds, these models can predict future price movements and adjust positions accordingly. ## prominent companies offering such funds and strategies ### Vanguard Group -Vanguard is one of the largest providers of [index](../i/index.md) funds and ETFs. The company offers a [range](../r/range.md) of [market](../m/market.md) cap-[weighted](../w/weighted.md) [index](../i/index.md) funds encompassing various sectors and geographies. For more information, visit their official website: [Vanguard](https://www.vanguard.com). +Vanguard is one of the largest providers of [index](../i/index_instrument.md) funds and ETFs. The company offers a [range](../r/range.md) of [market](../m/market.md) cap-[weighted](../w/weighted.md) [index](../i/index_instrument.md) funds encompassing various sectors and geographies. For more information, visit their official website: [Vanguard](https://www.vanguard.com). ### BlackRock BlackRock’s [iShares](../i/ishares.md) is another significant player in the [index fund](../i/index_fund.md) space. They [offer](../o/offer.md) an extensive [range](../r/range.md) of ETFs, many of which use [market](../m/market.md) cap-[weighted](../w/weighted.md) strategies. Additional details can be found here: [BlackRock iShares](https://www.ishares.com). @@ -80,8 +80,8 @@ BlackRock’s [iShares](../i/ishares.md) is another significant player in the [i WisdomTree offers ETF products that include fundamentally-[weighted](../w/weighted.md) indexes. These products aim to harness the advantages of fundamental metrics over traditional [capitalization](../c/capitalization.md)-[weighted](../w/weighted.md) or price-[weighted](../w/weighted.md) indexes. Visit here for more information: [WisdomTree](https://www.wisdomtree.com). ### Charles Schwab -[Charles Schwab](../c/charles_schwab.md) provides a variety of [index](../i/index.md) funds, including equally-[weighted](../w/weighted.md) and [market](../m/market.md) cap-[weighted](../w/weighted.md) indexes. The [firm](../f/firm.md) is well-recognized for its low-cost offerings. [Check](../c/check.md) out their [index](../i/index.md) funds here: [Charles Schwab](https://www.schwab.com). +[Charles Schwab](../c/charles_schwab.md) provides a variety of [index](../i/index_instrument.md) funds, including equally-[weighted](../w/weighted.md) and [market](../m/market.md) cap-[weighted](../w/weighted.md) indexes. The [firm](../f/firm.md) is well-recognized for its low-cost offerings. [Check](../c/check.md) out their [index](../i/index_instrument.md) funds here: [Charles Schwab](https://www.schwab.com). ## Conclusion -[Weighted](../w/weighted.md) [index](../i/index.md) funds [offer](../o/offer.md) a [range](../r/range.md) of strategies to investors, each with its benefits and drawbacks. When coupled with [algorithmic trading](../a/algorithmic_trading.md), these investment vehicles can become potent tools for both retail and institutional investors. The advent of technology and machine learning continues to evolve the landscape, presenting new opportunities and challenges in the realm of [weighted](../w/weighted.md) [index](../i/index.md) funds. +[Weighted](../w/weighted.md) [index](../i/index_instrument.md) funds [offer](../o/offer.md) a [range](../r/range.md) of strategies to investors, each with its benefits and drawbacks. When coupled with [algorithmic trading](../a/algorithmic_trading.md), these investment vehicles can become potent tools for both retail and institutional investors. The advent of technology and machine learning continues to evolve the landscape, presenting new opportunities and challenges in the realm of [weighted](../w/weighted.md) [index](../i/index_instrument.md) funds. diff --git a/en/pedia/w/weighted_moving_average_strategies.md b/en/pedia/w/weighted_moving_average_strategies.md index 349f21ba..966b44cf 100644 --- a/en/pedia/w/weighted_moving_average_strategies.md +++ b/en/pedia/w/weighted_moving_average_strategies.md @@ -40,7 +40,7 @@ This strategy involves using [multiple](../m/multiple.md) WMAs of different peri ### 2. WMA and Relative Strength Index (RSI) Strategy -Combining WMA with [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) can enhance [trading signals](../t/trading_signals.md) by filtering out [false signals](../f/false_signals_in_trading.md) and confirming [trend](../t/trend.md) strength. +Combining WMA with [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) can enhance [trading signals](../t/trading_signals.md) by filtering out [false signals](../f/false_signals_in_trading.md) and confirming [trend](../t/trend.md) strength. #### Implementation Steps diff --git a/en/pedia/w/weighted_moving_average_techniques.md b/en/pedia/w/weighted_moving_average_techniques.md index edb7fa8c..95fc171a 100644 --- a/en/pedia/w/weighted_moving_average_techniques.md +++ b/en/pedia/w/weighted_moving_average_techniques.md @@ -33,7 +33,7 @@ The weights typically decrease linearly over time, ensuring that recent prices h WMAs are frequently used to identify trends by comparing short-term WMAs with long-term WMAs. For instance, a common [trend](../t/trend.md)-following strategy involves buying when a short-term WMA crosses above a long-term WMA and selling when the short-term WMA crosses below the long-term WMA. ### Signal Generation -WMAs are used in various signal generation techniques. In conjunction with other indicators like [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD), WMAs can generate more [robust](../r/robust.md) [trading signals](../t/trading_signals.md). +WMAs are used in various signal generation techniques. In conjunction with other indicators like [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) or Moving Average Convergence [Divergence](../d/divergence.md) (MACD), WMAs can generate more [robust](../r/robust.md) [trading signals](../t/trading_signals.md). ### Smoothing Data In algo trading, WMAs are used to smooth data and reduce the [noise](../n/noise.md) in price charts. This is particularly helpful for algorithmic models that rely on clean, [trend](../t/trend.md)-following data to make predictions. diff --git a/en/pedia/w/weighted_portfolio.md b/en/pedia/w/weighted_portfolio.md index a9e08407..199d4e03 100644 --- a/en/pedia/w/weighted_portfolio.md +++ b/en/pedia/w/weighted_portfolio.md @@ -16,7 +16,7 @@ In [finance](../f/finance.md), a portfolio refers to a collection of investments 2. **[Market Capitalization](../m/market_capitalization.md) Weighting**: - Assets are [weighted](../w/weighted.md) based on their [market capitalization](../m/market_capitalization.md). - Larger companies receive a greater proportion of [capital](../c/capital.md). - - Commonly used in [index](../i/index.md) funds tracking major indices like the S&P 500. + - Commonly used in [index](../i/index_instrument.md) funds tracking major indices like the S&P 500. 3. **Fundamental Weighting**: - Assets are [weighted](../w/weighted.md) based on fundamental factors like [revenue](../r/revenue.md), [earnings](../e/earnings.md), dividends, or [book value](../b/book_value.md). diff --git a/en/pedia/w/weighted_portfolio_returns.md b/en/pedia/w/weighted_portfolio_returns.md index 1546fabb..a6fdbe43 100644 --- a/en/pedia/w/weighted_portfolio_returns.md +++ b/en/pedia/w/weighted_portfolio_returns.md @@ -58,7 +58,7 @@ A key aspect of [weighted portfolio](../w/weighted_portfolio.md) returns is unde Some common metrics used to evaluate [portfolio performance](../p/portfolio_performance.md) include: - **[Sharpe Ratio](../s/sharpe_ratio.md)**: Measures the [excess return](../e/excess_return.md) per unit of [risk](../r/risk.md), helping compare portfolios with different [risk](../r/risk.md) levels. -- **[Alpha](../a/alpha.md)**: Indicates the performance of a portfolio relative to a [benchmark](../b/benchmark.md) [index](../i/index.md), showing whether the [portfolio manager](../p/portfolio_manager.md)'s decisions have added [value](../v/value.md). +- **[Alpha](../a/alpha.md)**: Indicates the performance of a portfolio relative to a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), showing whether the [portfolio manager](../p/portfolio_manager.md)'s decisions have added [value](../v/value.md). - **[Beta](../b/beta.md)**: Measures the portfolio's [volatility](../v/volatility.md) relative to the [market](../m/market.md), helping assess its sensitivity to [market](../m/market.md) movements. ### Applications in Algorithmic Trading diff --git a/en/pedia/w/westpac_consumer_confidence_index.md b/en/pedia/w/westpac_consumer_confidence_index.md index c7d21ec7..640ab61b 100644 --- a/en/pedia/w/westpac_consumer_confidence_index.md +++ b/en/pedia/w/westpac_consumer_confidence_index.md @@ -1,10 +1,10 @@ # Westpac Consumer Confidence Index -The Westpac Consumer Confidence [Index](../i/index.md) is a critical [indicator](../i/indicator.md) in understanding consumer sentiment in Australia, representing the degree of optimism or pessimism that consumers express about the state of the [economy](../e/economy.md) as they undertake saving and spending activity. Conducted and published monthly by the Westpac Banking [Corporation](../c/corporation.md), one of Australia's leading financial institutions, the [index](../i/index.md) offers invaluable insights for policymakers, economists, and investors. +The Westpac Consumer Confidence [Index](../i/index_instrument.md) is a critical [indicator](../i/indicator.md) in understanding consumer sentiment in Australia, representing the degree of optimism or pessimism that consumers express about the state of the [economy](../e/economy.md) as they undertake saving and spending activity. Conducted and published monthly by the Westpac Banking [Corporation](../c/corporation.md), one of Australia's leading financial institutions, the [index](../i/index_instrument.md) offers invaluable insights for policymakers, economists, and investors. ## Definition and Purpose -The Westpac Consumer Confidence [Index](../i/index.md) gauges Australians' perceptions of their financial situation and broader [economic conditions](../e/economic_conditions.md), both current and future. A numerical [value](../v/value.md) is assigned to the level of confidence, with a reading above 100 indicating optimism and below 100 indicating pessimism. The [index](../i/index.md) is derived from a survey conducted by Westpac and the Melbourne Institute, which poses five key questions to a [representative sample](../r/representative_sample.md) of Australian consumers: +The Westpac Consumer Confidence [Index](../i/index_instrument.md) gauges Australians' perceptions of their financial situation and broader [economic conditions](../e/economic_conditions.md), both current and future. A numerical [value](../v/value.md) is assigned to the level of confidence, with a reading above 100 indicating optimism and below 100 indicating pessimism. The [index](../i/index_instrument.md) is derived from a survey conducted by Westpac and the Melbourne Institute, which poses five key questions to a [representative sample](../r/representative_sample.md) of Australian consumers: 1. **Current financial state**: An assessment of personal financial conditions compared to one year ago. 2. **Financial outlook**: A forecast of personal financial conditions over the next year. @@ -12,21 +12,21 @@ The Westpac Consumer Confidence [Index](../i/index.md) gauges Australians' perce 4. **Long-term economic view**: Expectations for the [economy](../e/economy.md)’s performance over the next five years. 5. **Buying conditions**: Opinions on whether the present is a good or bad time to buy major household items. -Together, these questions form a composite [index](../i/index.md) that reflects the overall sentiment. +Together, these questions form a composite [index](../i/index_instrument.md) that reflects the overall sentiment. [Westpac Consumer Confidence Index](https://www.westpac.com.au/about-westpac/media/reports/consumer-sentiment/) ## Importance in Financial Markets -Consumer confidence is a leading [economic indicator](../e/economic_indicator.md) since it can foreshadow changes in consumer spending and saving behavior. High levels of consumer confidence often correlate with increased consumer spending, which drives [economic growth](../e/economic_growth.md). Conversely, low confidence levels can result in reduced spending and increased saving, slowing [economic growth](../e/economic_growth.md). Here are some specific ways this [index](../i/index.md) impacts various stakeholders: +Consumer confidence is a leading [economic indicator](../e/economic_indicator.md) since it can foreshadow changes in consumer spending and saving behavior. High levels of consumer confidence often correlate with increased consumer spending, which drives [economic growth](../e/economic_growth.md). Conversely, low confidence levels can result in reduced spending and increased saving, slowing [economic growth](../e/economic_growth.md). Here are some specific ways this [index](../i/index_instrument.md) impacts various stakeholders: ### Policymakers -For policymakers, particularly central banks like the Reserve [Bank](../b/bank.md) of Australia (RBA), the Westpac Consumer Confidence [Index](../i/index.md) offers insights into consumer behavior and future economic activity. A rising confidence [index](../i/index.md) could indicate that consumers are likely to spend more, potentially leading to inflationary pressures. Conversely, a declining [index](../i/index.md) may signal economic slowdown, prompting policy interventions such as monetary easing. +For policymakers, particularly central banks like the Reserve [Bank](../b/bank.md) of Australia (RBA), the Westpac Consumer Confidence [Index](../i/index_instrument.md) offers insights into consumer behavior and future economic activity. A rising confidence [index](../i/index_instrument.md) could indicate that consumers are likely to spend more, potentially leading to inflationary pressures. Conversely, a declining [index](../i/index_instrument.md) may signal economic slowdown, prompting policy interventions such as monetary easing. ### Economists -Economists use the [index](../i/index.md) to predict economic trends and assess the likely future performance of the Australian [economy](../e/economy.md). The monthly updates provide more current data than quarterly GDP reports, enabling more timely analysis and decisions. +Economists use the [index](../i/index_instrument.md) to predict economic trends and assess the likely future performance of the Australian [economy](../e/economy.md). The monthly updates provide more current data than quarterly GDP reports, enabling more timely analysis and decisions. ### Investors @@ -34,15 +34,15 @@ For investors, consumer confidence can be a harbinger of [stock market](../s/sto ### Businesses -Retailers and businesses monitor the [index](../i/index.md) to forecast [demand](../d/demand.md) for goods and services. High consumer confidence typically signals increased consumer spending, guiding [inventory](../i/inventory.md) and [marketing](../m/marketing.md) strategies. Conversely, low confidence may prompt cost-saving measures. +Retailers and businesses monitor the [index](../i/index_instrument.md) to forecast [demand](../d/demand.md) for goods and services. High consumer confidence typically signals increased consumer spending, guiding [inventory](../i/inventory.md) and [marketing](../m/marketing.md) strategies. Conversely, low confidence may prompt cost-saving measures. ## Historical Performance and Trends -Analyzing historical data of the Westpac Consumer Confidence [Index](../i/index.md) reveals notable trends and correlations with economic events. For example, during the [financial crisis](../f/financial_crisis.md) of 2008-2009, the [index](../i/index.md) plummeted as consumer confidence eroded due to economic [uncertainty](../u/uncertainty_in_trading.md) and job losses. Conversely, during periods of economic booms, the [index](../i/index.md) has shown substantial rises. +Analyzing historical data of the Westpac Consumer Confidence [Index](../i/index_instrument.md) reveals notable trends and correlations with economic events. For example, during the [financial crisis](../f/financial_crisis.md) of 2008-2009, the [index](../i/index_instrument.md) plummeted as consumer confidence eroded due to economic [uncertainty](../u/uncertainty_in_trading.md) and job losses. Conversely, during periods of economic booms, the [index](../i/index_instrument.md) has shown substantial rises. ## Methodology -The methodology behind the Westpac Consumer Confidence [Index](../i/index.md) is [robust](../r/robust.md) and scientifically rigorous. Surveys are conducted using a sample that represents the Australian demographic profile in terms of age, gender, occupation, and location. The responses to the five main questions are quantified and converted into a composite score using a [weighted average](../w/weighted_average.md) formula. +The methodology behind the Westpac Consumer Confidence [Index](../i/index_instrument.md) is [robust](../r/robust.md) and scientifically rigorous. Surveys are conducted using a sample that represents the Australian demographic profile in terms of age, gender, occupation, and location. The responses to the five main questions are quantified and converted into a composite score using a [weighted average](../w/weighted_average.md) formula. ### Survey Distribution @@ -50,35 +50,35 @@ The survey is distributed monthly, around the second week, and the sample size t ### Data Weighting and Index Calculation -Responses are [weighted](../w/weighted.md) based on demographic factors to ensure they accurately represent the Australian population. Each question within the survey has a fixed weight, and responses are scaled from 0 to 200, with 100 as a [neutral](../n/neutral.md) point. The final [index](../i/index.md) number is an average of these [weighted](../w/weighted.md) responses. +Responses are [weighted](../w/weighted.md) based on demographic factors to ensure they accurately represent the Australian population. Each question within the survey has a fixed weight, and responses are scaled from 0 to 200, with 100 as a [neutral](../n/neutral.md) point. The final [index](../i/index_instrument.md) number is an average of these [weighted](../w/weighted.md) responses. ## Application in Algorithmic Trading and Fintech -In recent years, the Westpac Consumer Confidence [Index](../i/index.md) has also found applications in [algorithmic trading](../a/accountability.md) and financial technology (fintech). Quantitative analysts and developers in the fintech [industry](../i/industry.md) incorporate the [index](../i/index.md) as one of the macroeconomic variables in their [trading algorithms](../t/trading_algorithms.md). +In recent years, the Westpac Consumer Confidence [Index](../i/index_instrument.md) has also found applications in [algorithmic trading](../a/accountability.md) and financial technology (fintech). Quantitative analysts and developers in the fintech [industry](../i/industry.md) incorporate the [index](../i/index_instrument.md) as one of the macroeconomic variables in their [trading algorithms](../t/trading_algorithms.md). ### Algorithmic Trading [Algorithmic trading](../a/accountability.md) models use various data points, including consumer confidence indices, to make trading decisions. For instance: -- **[Predictive Modeling](../p/predictive_modeling.md)**: The [index](../i/index.md) is used in [predictive models](../p/predictive_models_in_trading.md) that forecast future [stock market](../s/stock_market.md) movements. Algorithms can be programmed to identify historical patterns between consumer confidence and [stock market](../s/stock_market.md) performance. -- **[Market Sentiment Analysis](../m/market_sentiment_analysis.md)**: Real-time monitoring of the [index](../i/index.md) allows algorithmic traders to gauge [market sentiment](../m/market_sentiment.md) and make rapid trading decisions based on shifts in consumer confidence. -- **[Risk Management](../r/risk_management.md)**: The [index](../i/index.md) helps in adjusting the [risk](../r/risk.md) parameters of [trading algorithms](../t/trading_algorithms.md). A sudden drop in consumer confidence may trigger more conservative [trading strategies](../t/trading_strategies.md) and reduce exposure. +- **[Predictive Modeling](../p/predictive_modeling.md)**: The [index](../i/index_instrument.md) is used in [predictive models](../p/predictive_models_in_trading.md) that forecast future [stock market](../s/stock_market.md) movements. Algorithms can be programmed to identify historical patterns between consumer confidence and [stock market](../s/stock_market.md) performance. +- **[Market Sentiment Analysis](../m/market_sentiment_analysis.md)**: Real-time monitoring of the [index](../i/index_instrument.md) allows algorithmic traders to gauge [market sentiment](../m/market_sentiment.md) and make rapid trading decisions based on shifts in consumer confidence. +- **[Risk Management](../r/risk_management.md)**: The [index](../i/index_instrument.md) helps in adjusting the [risk](../r/risk.md) parameters of [trading algorithms](../t/trading_algorithms.md). A sudden drop in consumer confidence may trigger more conservative [trading strategies](../t/trading_strategies.md) and reduce exposure. ### Fintech Applications -In the realm of fintech, the [index](../i/index.md) is used for various innovative solutions: +In the realm of fintech, the [index](../i/index_instrument.md) is used for various innovative solutions: - **[Financial Planning](../f/financial_planning.md) Tools**: Consumer confidence data is integrated into [financial planning](../f/financial_planning.md) tools to [offer](../o/offer.md) users insights into [market](../m/market.md) conditions and guide investment or savings decisions. -- **[Credit Risk](../c/credit_risk.md) Assessment**: Fintech companies use the [index](../i/index.md) to assess [credit risk](../c/credit_risk.md). Higher consumer confidence may correlate with lower [default](../d/default.md) rates, influencing lending decisions. -- **Robo-Advisors**: Automated investment advisory services, or robo-advisors, utilize the [index](../i/index.md) to adjust portfolio allocations and provide personalized recommendations based on prevailing economic sentiment. +- **[Credit Risk](../c/credit_risk.md) Assessment**: Fintech companies use the [index](../i/index_instrument.md) to assess [credit risk](../c/credit_risk.md). Higher consumer confidence may correlate with lower [default](../d/default.md) rates, influencing lending decisions. +- **Robo-Advisors**: Automated investment advisory services, or robo-advisors, utilize the [index](../i/index_instrument.md) to adjust portfolio allocations and provide personalized recommendations based on prevailing economic sentiment. ## Limitations and Criticisms -While the Westpac Consumer Confidence [Index](../i/index.md) is a valuable tool, it is not without limitations: +While the Westpac Consumer Confidence [Index](../i/index_instrument.md) is a valuable tool, it is not without limitations: ### Short-Term Volatility -The [index](../i/index.md) can exhibit short-term [volatility](../v/volatility.md) due to temporary factors like political events or natural disasters, which may not reflect long-term trends. +The [index](../i/index_instrument.md) can exhibit short-term [volatility](../v/volatility.md) due to temporary factors like political events or natural disasters, which may not reflect long-term trends. ### Response Bias @@ -90,4 +90,4 @@ Although consumer confidence can be a [leading indicator](../l/leading_indicator ## Conclusion -The Westpac Consumer Confidence [Index](../i/index.md) is a pivotal instrument in understanding consumer sentiment and its implications for the Australian [economy](../e/economy.md). For nearly half a century, it has provided valuable insights to policymakers, economists, investors, and businesses. In the evolving landscape of fintech and [algorithmic trading](../a/accountability.md), its relevance continues to grow, [offering](../o/offering.md) sophisticated tools for analysis and decision-making. \ No newline at end of file +The Westpac Consumer Confidence [Index](../i/index_instrument.md) is a pivotal instrument in understanding consumer sentiment and its implications for the Australian [economy](../e/economy.md). For nearly half a century, it has provided valuable insights to policymakers, economists, investors, and businesses. In the evolving landscape of fintech and [algorithmic trading](../a/accountability.md), its relevance continues to grow, [offering](../o/offering.md) sophisticated tools for analysis and decision-making. \ No newline at end of file diff --git a/en/pedia/w/whipsaw_effect.md b/en/pedia/w/whipsaw_effect.md index ca17e7cf..43e945e3 100644 --- a/en/pedia/w/whipsaw_effect.md +++ b/en/pedia/w/whipsaw_effect.md @@ -55,7 +55,7 @@ To mitigate the effects of [whipsaw](../w/whipsaw.md), some [algorithmic trading ### Technical Analysis Tools -Traders often use [technical analysis](../t/technical_analysis.md) tools to identify potential [whipsaw](../w/whipsaw.md) conditions. Moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) are commonly used indicators to gauge [market](../m/market.md) [volatility](../v/volatility.md) and potential reversals. +Traders often use [technical analysis](../t/technical_analysis.md) tools to identify potential [whipsaw](../w/whipsaw.md) conditions. Moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) are commonly used indicators to gauge [market](../m/market.md) [volatility](../v/volatility.md) and potential reversals. ### Diversification diff --git a/en/pedia/w/whipsaw_indicator.md b/en/pedia/w/whipsaw_indicator.md index 652e97ef..317d80b4 100644 --- a/en/pedia/w/whipsaw_indicator.md +++ b/en/pedia/w/whipsaw_indicator.md @@ -19,7 +19,7 @@ The term **[whipsaw](../w/whipsaw.md)** is derived from a type of handsaw used i ### Technical Indicators 1. **Moving Averages**: One way to identify potential whipsaws is by looking at moving averages. Crossovers between short-term and long-term moving averages can sometimes result in [false signals](../f/false_signals_in_trading.md) or [whipsaw](../w/whipsaw.md) conditions. -2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: RSI can signal [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. Extreme RSI values might indicate potential whipsaws, especially when followed by rapid reversals. +2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: RSI can signal [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. Extreme RSI values might indicate potential whipsaws, especially when followed by rapid reversals. 3. **[Bollinger Bands](../b/bollinger_bands.md)**: When the price moves close to the upper or lower band, a [reversal](../r/reversal.md) may be imminent, indicating a possible [whipsaw](../w/whipsaw.md). 4. **[Volume Analysis](../v/volume_analysis.md)**: Sharp reversals accompanied by low trading [volume](../v/volume.md) can often signal a [whipsaw](../w/whipsaw.md). 5. **ATR ([Average True Range](../a/average_true_range_(atr).md))**: High ATR values indicate high [volatility](../v/volatility.md), which could lead to [whipsaw](../w/whipsaw.md) movements. diff --git a/en/pedia/w/whipsaw_patterns.md b/en/pedia/w/whipsaw_patterns.md index 6ff9b7c1..6f01c2e6 100644 --- a/en/pedia/w/whipsaw_patterns.md +++ b/en/pedia/w/whipsaw_patterns.md @@ -28,7 +28,7 @@ Several factors can contribute to the formation of [whipsaw](../w/whipsaw.md) pa ### Identifying Whipsaw Patterns Identifying potential [whipsaw](../w/whipsaw.md) patterns is essential for mitigating their impact. Common techniques include: -- **[Technical Indicators](../t/technical_indicators.md):** Using [technical indicators](../t/technical_indicators.md) like moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Technical Indicators](../t/technical_indicators.md):** Using [technical indicators](../t/technical_indicators.md) like moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **[Volume Analysis](../v/volume_analysis.md):** Analyzing trading [volume](../v/volume.md) to differentiate between genuine price movements and [whipsaw](../w/whipsaw.md) activity. - **[Pattern Recognition](../p/pattern_recognition.md):** Employing [pattern recognition](../p/pattern_recognition.md) algorithms to detect historical [whipsaw](../w/whipsaw.md) patterns and predict future occurrences. diff --git a/en/pedia/w/whipsaw_patterns_in_trading.md b/en/pedia/w/whipsaw_patterns_in_trading.md index f24e6986..b6f4a7b2 100644 --- a/en/pedia/w/whipsaw_patterns_in_trading.md +++ b/en/pedia/w/whipsaw_patterns_in_trading.md @@ -27,7 +27,7 @@ There are mainly two types of [whipsaw](../w/whipsaw.md) movements: Effective identification of [whipsaw patterns](../w/whipsaw_patterns.md) involves [technical analysis](../t/technical_analysis.md) and monitoring specific indicators. Common tools for spotting potential whipsaws include: 1. **Moving Averages:** Short-term moving averages (such as the 20-day MA) can indicate potential whipsaws when they cross long-term moving averages (like the 50-day MA), causing [false signals](../f/false_signals_in_trading.md). -2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** RSI can help identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions that might precede a price [reversal](../r/reversal.md). +2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** RSI can help identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions that might precede a price [reversal](../r/reversal.md). 3. **[Bollinger Bands](../b/bollinger_bands.md):** These bands can signal a [whipsaw](../w/whipsaw.md) if the price repeatedly touches or breaches the bands, indicating high [volatility](../v/volatility.md). 4. **[Volume Analysis](../v/volume_analysis.md):** Sudden changes in trading [volume](../v/volume.md) can signify a coming price [reversal](../r/reversal.md). diff --git a/en/pedia/w/whipsaw_trading.md b/en/pedia/w/whipsaw_trading.md index a56adef2..04292420 100644 --- a/en/pedia/w/whipsaw_trading.md +++ b/en/pedia/w/whipsaw_trading.md @@ -50,7 +50,7 @@ Tools and techniques to navigate [whipsaw](../w/whipsaw.md) trading effectively 1. **[Trend Following](../t/trend_following.md) Indicators**: Indicators like Moving Averages (MA), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and the [Average Directional Index](../a/average_directional_index_(adx).md) (ADX) help in identifying the primary [trend](../t/trend.md) and potential [whipsaw](../w/whipsaw.md) movements. -2. **[Volatility](../v/volatility.md) Indicators**: Tools such as the [Bollinger Bands](../b/bollinger_bands.md), [Volatility](../v/volatility.md) [Index](../i/index.md) (VIX), and the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) provide insights into [market](../m/market.md) [volatility](../v/volatility.md), aiding in [whipsaw](../w/whipsaw.md) [risk](../r/risk.md) assessment. +2. **[Volatility](../v/volatility.md) Indicators**: Tools such as the [Bollinger Bands](../b/bollinger_bands.md), [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX), and the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) provide insights into [market](../m/market.md) [volatility](../v/volatility.md), aiding in [whipsaw](../w/whipsaw.md) [risk](../r/risk.md) assessment. 3. **[Price Action Analysis](../p/price_action_analysis.md)**: Observing [price patterns](../p/price_patterns.md), [candlestick](../c/candlestick.md) formations, and support/resistance levels can help identify potential [whipsaw](../w/whipsaw.md) scenarios. diff --git a/en/pedia/w/whipsaw_trading_strategies.md b/en/pedia/w/whipsaw_trading_strategies.md index 6e481a73..15b19d4f 100644 --- a/en/pedia/w/whipsaw_trading_strategies.md +++ b/en/pedia/w/whipsaw_trading_strategies.md @@ -38,7 +38,7 @@ In a volatile [market](../m/market.md), adjusting the position size based on the #### Calculation Example: -If the [volatility](../v/volatility.md) [index](../i/index.md) (VIX) is high, it signals higher expected [volatility](../v/volatility.md). The position size can be adjusted inversely proportional to the VIX. +If the [volatility](../v/volatility.md) [index](../i/index_instrument.md) (VIX) is high, it signals higher expected [volatility](../v/volatility.md). The position size can be adjusted inversely proportional to the VIX. ```python def adjust_position_size(base_size, current_vix, avg_vix): @@ -80,7 +80,7 @@ Avoid trading during the first and last 30 minutes of the trading day to prevent #### RSI-Based Mean Reversion -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. An RSI below 30 indicates an [oversold](../o/oversold.md) condition, while an RSI above 70 indicates an [overbought](../o/overbought.md) condition. +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. An RSI below 30 indicates an [oversold](../o/oversold.md) condition, while an RSI above 70 indicates an [overbought](../o/overbought.md) condition. ```python def rsi_mean_reversion_strategy(data): diff --git a/en/pedia/w/wholesale_price_index_(wpi).md b/en/pedia/w/wholesale_price_index_(wpi).md index 4d26b863..0bbe833a 100644 --- a/en/pedia/w/wholesale_price_index_(wpi).md +++ b/en/pedia/w/wholesale_price_index_(wpi).md @@ -1,6 +1,6 @@ # Wholesale Price Index (WPI) -The Wholesale Price [Index](../i/index.md) (WPI) is a critical economic metric that measures the average change in prices of goods at the wholesale level. Unlike the Consumer Price [Index](../i/index.md) (CPI), which tracks retail prices and the [cost of living](../c/cost_of_living.md) for consumers, the WPI focuses on the price movement in primary markets or stages of production. It is particularly significant for understanding inflationary trends and economic policies. +The Wholesale Price [Index](../i/index_instrument.md) (WPI) is a critical economic metric that measures the average change in prices of goods at the wholesale level. Unlike the Consumer Price [Index](../i/index_instrument.md) (CPI), which tracks retail prices and the [cost of living](../c/cost_of_living.md) for consumers, the WPI focuses on the price movement in primary markets or stages of production. It is particularly significant for understanding inflationary trends and economic policies. ## Definition and Purpose @@ -32,7 +32,7 @@ Where: - \(P_o\) = Price of the item in the base period - \(W\) = Weight assigned to the item -The WPI is usually expressed as an [index](../i/index.md) number with a [base year](../b/base_year.md) (e.g., 2010-11=100). +The WPI is usually expressed as an [index](../i/index_instrument.md) number with a [base year](../b/base_year.md) (e.g., 2010-11=100). ## Importance of WPI @@ -41,7 +41,7 @@ Understanding the importance of WPI in economic planning and policy-making is cr 1. **Inflationary Pressures**: WPI helps identify inflationary pressures in the [economy](../e/economy.md). Persistent increases in the WPI indicate rising [inflation](../i/inflation.md). 2. **[Monetary Policy](../m/monetary_policy.md)**: Central Banks use WPI data to make decisions regarding [interest](../i/interest.md) rates and monetary policies. 3. **[Fiscal Policy](../f/fiscal_policy.md)**: Governments can adjust their fiscal policies based on wholesale price trends. -4. **Industrial Growth**: The [index](../i/index.md) reflects the health of various industries by tracking the price trends of manufactured goods. +4. **Industrial Growth**: The [index](../i/index_instrument.md) reflects the health of various industries by tracking the price trends of manufactured goods. 5. **International [Trade](../t/trade.md)**: WPI impacts the competitiveness of a country’s products in the global [market](../m/market.md). ## Differences Between WPI and CPI @@ -56,9 +56,9 @@ While both WPI and CPI measure [inflation](../i/inflation.md), they differ signi Many countries maintain their own WPI metrics, tailored to their specific economic contexts. Examples include: -- **United States**: The Producer Price [Index](../i/index.md) (PPI) is used, which is similar to WPI. +- **United States**: The Producer Price [Index](../i/index_instrument.md) (PPI) is used, which is similar to WPI. - **India**: India's WPI is published by the Office of the Economic Adviser, Ministry of [Commerce](../c/commerce.md) and [Industry](../i/industry.md). The official website is [eaindustry.nic.in](https://eaindustry.nic.in/download_data_1112.asp). -- **Japan**: Japan uses the Corporate Goods Price [Index](../i/index.md) (CGPI). +- **Japan**: Japan uses the Corporate Goods Price [Index](../i/index_instrument.md) (CGPI). ## Historical Trends @@ -75,7 +75,7 @@ The trends in WPI over the years provide insights into economic ups and downs, [ Despite its widespread use, the WPI has faced criticisms: -1. **Coverage**: The [index](../i/index.md) may not cover all the products in an [economy](../e/economy.md) comprehensively. +1. **Coverage**: The [index](../i/index_instrument.md) may not cover all the products in an [economy](../e/economy.md) comprehensively. 2. **Timeliness**: WPI data may not be as current and timely as necessary for real-time economic analysis. 3. **Exclusions**: It often excludes services, which are a significant part of modern economies. 4. **[Base Year](../b/base_year.md)**: The [base year](../b/base_year.md) updates may lag, leading to outdated weightages. @@ -90,4 +90,4 @@ Technological advancements are transforming how WPI data is collected, processed ## Conclusion -The Wholesale Price [Index](../i/index.md) (WPI) remains a fundamental [indicator](../i/indicator.md) in the landscape of economic metrics. By measuring wholesale price changes, it provides valuable insights into inflationary trends, economic health, and industrial performance. Despite criticisms and limitations, WPI continues to be a cornerstone for policymakers, businesses, and [financial markets](../f/financial_market.md) globally. With ongoing technological enhancements, the relevance and accuracy of the WPI are poised to improve further, [offering](../o/offering.md) a more detailed and real-time view of economic dynamics. \ No newline at end of file +The Wholesale Price [Index](../i/index_instrument.md) (WPI) remains a fundamental [indicator](../i/indicator.md) in the landscape of economic metrics. By measuring wholesale price changes, it provides valuable insights into inflationary trends, economic health, and industrial performance. Despite criticisms and limitations, WPI continues to be a cornerstone for policymakers, businesses, and [financial markets](../f/financial_market.md) globally. With ongoing technological enhancements, the relevance and accuracy of the WPI are poised to improve further, [offering](../o/offering.md) a more detailed and real-time view of economic dynamics. \ No newline at end of file diff --git a/en/pedia/w/wicks_in_candlestick_patterns.md b/en/pedia/w/wicks_in_candlestick_patterns.md index 5e821bf7..0e452c5c 100644 --- a/en/pedia/w/wicks_in_candlestick_patterns.md +++ b/en/pedia/w/wicks_in_candlestick_patterns.md @@ -56,7 +56,7 @@ The length and position of wicks provide insights into [market sentiment](../m/m ### Using Wicks with Other Technical Indicators -While wicks can be powerful signals on their own, their effectiveness is often enhanced when used in conjunction with other [technical indicators](../t/technical_indicators.md) such as Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), or [Bollinger Bands](../b/bollinger_bands.md). +While wicks can be powerful signals on their own, their effectiveness is often enhanced when used in conjunction with other [technical indicators](../t/technical_indicators.md) such as Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), or [Bollinger Bands](../b/bollinger_bands.md). #### Moving Averages @@ -64,7 +64,7 @@ Combining wick analysis with moving averages can help confirm trends and potenti #### RSI -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) can be used to find [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. If a [candlestick](../c/candlestick.md) with a long upper wick forms while the RSI is above 70, it could indicate an [overbought](../o/overbought.md) condition and potential [reversal](../r/reversal.md). +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) can be used to find [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. If a [candlestick](../c/candlestick.md) with a long upper wick forms while the RSI is above 70, it could indicate an [overbought](../o/overbought.md) condition and potential [reversal](../r/reversal.md). #### Bollinger Bands diff --git a/en/pedia/w/wilder's_dmi_(adx).md b/en/pedia/w/wilder's_dmi_(adx).md index 7d99cd79..a7f865c8 100644 --- a/en/pedia/w/wilder's_dmi_(adx).md +++ b/en/pedia/w/wilder's_dmi_(adx).md @@ -1,12 +1,12 @@ # Wilder's DMI (ADX) -Wilder's Directional Movement [Index](../i/index.md) (DMI), often known simply as ADX ([Average Directional Index](../a/average_directional_index_(adx).md)), is a [technical analysis](../t/technical_analysis.md) [indicator](../i/indicator.md) designed by J. Welles Wilder. It is primarily used to quantify the strength of a [trend](../t/trend.md) in a financial [market](../m/market.md), be it an upward (bullish) or downward (bearish) [trend](../t/trend.md). Traders and analysts use ADX extensively because of its ability to reflect the dynamism or stability of trading patterns in diverse financial instruments, including [stocks](../s/stock.md), commodities, forex, and more. +Wilder's Directional Movement [Index](../i/index_instrument.md) (DMI), often known simply as ADX ([Average Directional Index](../a/average_directional_index_(adx).md)), is a [technical analysis](../t/technical_analysis.md) [indicator](../i/indicator.md) designed by J. Welles Wilder. It is primarily used to quantify the strength of a [trend](../t/trend.md) in a financial [market](../m/market.md), be it an upward (bullish) or downward (bearish) [trend](../t/trend.md). Traders and analysts use ADX extensively because of its ability to reflect the dynamism or stability of trading patterns in diverse financial instruments, including [stocks](../s/stock.md), commodities, forex, and more. -The ADX forms part of a comprehensive set of indicators introduced by Wilder in his seminal book, "New Concepts in Technical [Trading Systems](../t/trading_systems.md)," published in 1978. Besides ADX, Wilder also introduced the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), [Parabolic SAR](../p/parabolic_sar.md), and more, which have become indispensable tools in modern [technical analysis](../t/technical_analysis.md). +The ADX forms part of a comprehensive set of indicators introduced by Wilder in his seminal book, "New Concepts in Technical [Trading Systems](../t/trading_systems.md)," published in 1978. Besides ADX, Wilder also introduced the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), [Parabolic SAR](../p/parabolic_sar.md), and more, which have become indispensable tools in modern [technical analysis](../t/technical_analysis.md). ## Components of the DMI -The Directional Movement [Index](../i/index.md) is comprised of three lines: +The Directional Movement [Index](../i/index_instrument.md) is comprised of three lines: 1. **Plus Directional [Indicator](../i/indicator.md) (+DI)** - Represents positive directional movement. 2. **Minus Directional [Indicator](../i/indicator.md) (-DI)** - Represents negative directional movement. diff --git a/en/pedia/w/wilders_dmi_(directional_movement_index).md b/en/pedia/w/wilders_dmi_(directional_movement_index).md index 2e1889d6..12dc4512 100644 --- a/en/pedia/w/wilders_dmi_(directional_movement_index).md +++ b/en/pedia/w/wilders_dmi_(directional_movement_index).md @@ -1,6 +1,6 @@ # Wilder's Directional Movement Index (DMI) -The Directional Movement [Index](../i/index.md) (DMI), developed by J. Welles Wilder, is a technical [indicator](../i/indicator.md) that estimates the strength and direction of a [trend](../t/trend.md). It aids in identifying whether a [security](../s/security.md) is trending and how strong that [trend](../t/trend.md) is. Traders often use DMI to make trading decisions and to develop [trading strategies](../t/trading_strategies.md). +The Directional Movement [Index](../i/index_instrument.md) (DMI), developed by J. Welles Wilder, is a technical [indicator](../i/indicator.md) that estimates the strength and direction of a [trend](../t/trend.md). It aids in identifying whether a [security](../s/security.md) is trending and how strong that [trend](../t/trend.md) is. Traders often use DMI to make trading decisions and to develop [trading strategies](../t/trading_strategies.md). ## Components of DMI @@ -37,7 +37,7 @@ To calculate +DI and -DI, you must first determine the Directional Movement (DM) ### ADX Calculation -1. **Calculate the Directional Movement [Index](../i/index.md) (DX)**: +1. **Calculate the Directional Movement [Index](../i/index_instrument.md) (DX)**: - DX = (| +DI - -DI | / (+DI + -DI)) * 100 2. **Calculate ADX**: @@ -77,7 +77,7 @@ When ADX is below 20, it may be an indication of a [range](../r/range.md)-bound ## Conclusion -The Directional Movement [Index](../i/index.md) is a powerful and versatile tool for assessing [trend](../t/trend.md) strength and direction. While it has its limitations, when combined with other indicators and sound trading principles, it can significantly enhance trading decisions. +The Directional Movement [Index](../i/index_instrument.md) is a powerful and versatile tool for assessing [trend](../t/trend.md) strength and direction. While it has its limitations, when combined with other indicators and sound trading principles, it can significantly enhance trading decisions. For more detailed information on [technical indicators](../t/technical_indicators.md) and [trading strategies](../t/trading_strategies.md), you can explore resources from financial institutions and trading platforms such as: - [Investopedia](https://www.investopedia.com) diff --git a/en/pedia/w/wilders_rsi.md b/en/pedia/w/wilders_rsi.md index 8a88a9ce..1efb169e 100644 --- a/en/pedia/w/wilders_rsi.md +++ b/en/pedia/w/wilders_rsi.md @@ -1,6 +1,6 @@ # Wilder's RSI -Wilder's [Relative Strength](../r/relative_strength.md) [Index](../i/index.md), commonly referred to as RSI, is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) developed by J. Welles Wilder. It measures the speed and change of price movements and is primarily used in [technical analysis](../t/technical_analysis.md) of [financial markets](../f/financial_market.md). Initially introduced in Wilder's 1978 book, "New Concepts in Technical [Trading Systems](../t/trading_systems.md)," the RSI has since become a fundamental tool for traders and analysts across various [asset](../a/asset.md) markets, including [stocks](../s/stock.md), commodities, and forex. +Wilder's [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md), commonly referred to as RSI, is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) developed by J. Welles Wilder. It measures the speed and change of price movements and is primarily used in [technical analysis](../t/technical_analysis.md) of [financial markets](../f/financial_market.md). Initially introduced in Wilder's 1978 book, "New Concepts in Technical [Trading Systems](../t/trading_systems.md)," the RSI has since become a fundamental tool for traders and analysts across various [asset](../a/asset.md) markets, including [stocks](../s/stock.md), commodities, and forex. ### Key Concepts of RSI diff --git a/en/pedia/w/wilders_smoothing_techniques.md b/en/pedia/w/wilders_smoothing_techniques.md index 3d4b6e52..1bf80936 100644 --- a/en/pedia/w/wilders_smoothing_techniques.md +++ b/en/pedia/w/wilders_smoothing_techniques.md @@ -2,7 +2,7 @@ Wilder’s smoothing techniques refer to the methods of smoothing and filtering financial data developed by J. Welles Wilder, an influential figure in [technical analysis](../t/technical_analysis.md). These techniques are used by algorithmic traders and technical analysts to smooth out price data, reduce the impact of short-term fluctuations, and reveal [underlying](../u/underlying.md) trends in [financial markets](../f/financial_market.md). -J. Welles Wilder Jr. introduced several key indicators and methods in his seminal work, "New Concepts in Technical [Trading Systems](../t/trading_systems.md)" (1978). Among his contributions are popular indicators such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), [Average True Range](../a/average_true_range_(atr).md) (ATR), [Parabolic SAR](../p/parabolic_sar.md) (Stop and Reverse), and the Directional Movement [Index](../i/index.md) (DMI). Let’s dive into the specifics of some of these smoothing techniques and their applications in [algorithmic trading](../a/algorithmic_trading.md). +J. Welles Wilder Jr. introduced several key indicators and methods in his seminal work, "New Concepts in Technical [Trading Systems](../t/trading_systems.md)" (1978). Among his contributions are popular indicators such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), [Average True Range](../a/average_true_range_(atr).md) (ATR), [Parabolic SAR](../p/parabolic_sar.md) (Stop and Reverse), and the Directional Movement [Index](../i/index_instrument.md) (DMI). Let’s dive into the specifics of some of these smoothing techniques and their applications in [algorithmic trading](../a/algorithmic_trading.md). ### Relative Strength Index (RSI) diff --git a/en/pedia/w/williams_%r.md b/en/pedia/w/williams_%r.md index 38dfa99c..14c1ad1d 100644 --- a/en/pedia/w/williams_%r.md +++ b/en/pedia/w/williams_%r.md @@ -127,7 +127,7 @@ print(signal) #### Combining Williams %R with Other Indicators -While Williams %R provides valuable insights, combining it with other indicators such as Moving Averages (MAs), [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), or [Bollinger Bands](../b/bollinger_bands.md) can enhance the reliability of [trading signals](../t/trading_signals.md). +While Williams %R provides valuable insights, combining it with other indicators such as Moving Averages (MAs), [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), or [Bollinger Bands](../b/bollinger_bands.md) can enhance the reliability of [trading signals](../t/trading_signals.md). For example, an algo-[trader](../t/trader.md) could use Williams %R in conjunction with a Moving Average to filter out [noise](../n/noise.md) and confirm true signals: diff --git a/en/pedia/w/williams_%r_indicator.md b/en/pedia/w/williams_%r_indicator.md index 6418ca11..7fb5c7d4 100644 --- a/en/pedia/w/williams_%r_indicator.md +++ b/en/pedia/w/williams_%r_indicator.md @@ -36,7 +36,7 @@ While primarily used for spotting reversals, the %R [indicator](../i/indicator.m ### Using Williams %R With Other Indicators To enhance its effectiveness, traders often use the [Williams %R](../w/williams_%r.md) [Indicator](../i/indicator.md) in conjunction with other indicators. Some common pairings include: - **Moving Averages**: Using moving averages to gauge [trend](../t/trend.md) direction while employing the %R for [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Combining %R with RSI can provide stronger confirmation of [market](../m/market.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Combining %R with RSI can provide stronger confirmation of [market](../m/market.md) conditions. - **MACD (Moving Average Convergence [Divergence](../d/divergence.md))**: Pairing %R with MACD can aid in identifying entry and exit points more accurately. ### Example diff --git a/en/pedia/w/williams_%r_strategies.md b/en/pedia/w/williams_%r_strategies.md index 2108ada0..f0e6362a 100644 --- a/en/pedia/w/williams_%r_strategies.md +++ b/en/pedia/w/williams_%r_strategies.md @@ -41,7 +41,7 @@ A reading above -20 is considered [overbought](../o/overbought.md), while a read - For example, a [trader](../t/trader.md) might look for a [Williams %R](../w/williams_%r.md) [oversold](../o/oversold.md) condition on the daily chart and confirm with an [oversold](../o/oversold.md) condition on the hourly chart before executing a buy [order](../o/order.md). 3. **Integration with Other Indicators** - Combining [Williams %R](../w/williams_%r.md) with other indicators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), or [Bollinger Bands](../b/bollinger_bands.md) can provide more comprehensive [trading signals](../t/trading_signals.md). + Combining [Williams %R](../w/williams_%r.md) with other indicators like the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), or [Bollinger Bands](../b/bollinger_bands.md) can provide more comprehensive [trading signals](../t/trading_signals.md). - For instance, a buy signal might be considered stronger if [Williams %R](../w/williams_%r.md) shows [oversold](../o/oversold.md) conditions while RSI also indicates the same. #### Example Strategy diff --git a/en/pedia/w/williams_accumulation_distribution.md b/en/pedia/w/williams_accumulation_distribution.md index 6d49c270..db3a766e 100644 --- a/en/pedia/w/williams_accumulation_distribution.md +++ b/en/pedia/w/williams_accumulation_distribution.md @@ -42,7 +42,7 @@ Algorithmic traders [leverage](../l/leverage.md) WAD in several strategies to [c WAD is frequently used in conjunction with other [technical indicators](../t/technical_indicators.md) to enhance [trading strategies](../t/trading_strategies.md). Some common pairings include: - **Moving Averages:** By combining WAD with moving averages, traders can filter out [false signals](../f/false_signals_in_trading.md) and improve the accuracy of their trades. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** Integrating WAD with RSI allows traders to gauge [momentum](../m/momentum.md) and confirm the strength of trends. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** Integrating WAD with RSI allows traders to gauge [momentum](../m/momentum.md) and confirm the strength of trends. - **[Bollinger Bands](../b/bollinger_bands.md):** WAD can be paired with [Bollinger Bands](../b/bollinger_bands.md) to identify potential breakouts or breakdowns, improving the timing of entries and exits. ## Real-World Implementation diff --git a/en/pedia/w/williams_alligator_indicator.md b/en/pedia/w/williams_alligator_indicator.md index dbbe7b8b..09bc31d6 100644 --- a/en/pedia/w/williams_alligator_indicator.md +++ b/en/pedia/w/williams_alligator_indicator.md @@ -75,7 +75,7 @@ Traders can exit their positions when the Lips cross into the Teeth and Jaw, ind In a typical Forex pair, say EUR/USD, the Alligator [indicator](../i/indicator.md) helps identify a significant upward [trend](../t/trend.md) when a strong [divergence](../d/divergence.md) between the Lips, Teeth, and Jaw is observed. ### Example 2: Stock Market -For equities like the S&P 500 [index](../i/index.md), the Alligator [indicator](../i/indicator.md) is beneficial during periods of strong directional movement, providing reliable buy or sell signals. +For equities like the S&P 500 [index](../i/index_instrument.md), the Alligator [indicator](../i/indicator.md) is beneficial during periods of strong directional movement, providing reliable buy or sell signals. ## Conclusion diff --git a/en/pedia/w/williams_fractals.md b/en/pedia/w/williams_fractals.md index 3b9c3705..fc31d216 100644 --- a/en/pedia/w/williams_fractals.md +++ b/en/pedia/w/williams_fractals.md @@ -1,6 +1,6 @@ # Williams Fractals -Williams Fractals is a [technical analysis](../t/technical_analysis.md) tool developed by the renowned [trader](../t/trader.md) and author Bill Williams. This trading [indicator](../i/indicator.md) is part of his comprehensive [trading strategy](../t/trading_strategy.md), which also includes tools like the Alligator, Awesome [Oscillator](../o/oscillator.md), and [Market](../m/market.md) Facilitation [Index](../i/index.md). Williams Fractals are used to identify potential [reversal](../r/reversal.md) points in the [market](../m/market.md) by spotting local highs and lows. Understanding this concept requires a detailed exploration of its components, application in [trading strategies](../t/trading_strategies.md), and its effectiveness in various [market](../m/market.md) conditions. +Williams Fractals is a [technical analysis](../t/technical_analysis.md) tool developed by the renowned [trader](../t/trader.md) and author Bill Williams. This trading [indicator](../i/indicator.md) is part of his comprehensive [trading strategy](../t/trading_strategy.md), which also includes tools like the Alligator, Awesome [Oscillator](../o/oscillator.md), and [Market](../m/market.md) Facilitation [Index](../i/index_instrument.md). Williams Fractals are used to identify potential [reversal](../r/reversal.md) points in the [market](../m/market.md) by spotting local highs and lows. Understanding this concept requires a detailed exploration of its components, application in [trading strategies](../t/trading_strategies.md), and its effectiveness in various [market](../m/market.md) conditions. ### What are Williams Fractals? @@ -49,7 +49,7 @@ While Williams Fractals are powerful on their own, combining them with other ind 2. **Awesome [Oscillator](../o/oscillator.md)**: - This [momentum](../m/momentum.md) [indicator](../i/indicator.md), also created by Williams, can confirm fractal signals. A positive Awesome [Oscillator](../o/oscillator.md) reading can affirm an up fractal signal, while a negative reading can confirm a down fractal signal. -3. **[Market](../m/market.md) Facilitation [Index](../i/index.md) (MFI)**: +3. **[Market](../m/market.md) Facilitation [Index](../i/index_instrument.md) (MFI)**: - The MFI measures the [efficiency](../e/efficiency.md) of price movement. By combining MFI readings with fractals, traders can get an insight into the strength of the price move signaled by the fractal. ### Real-World Applications diff --git a/en/pedia/w/williams_oscillator.md b/en/pedia/w/williams_oscillator.md index 00f8e0f0..9e60be60 100644 --- a/en/pedia/w/williams_oscillator.md +++ b/en/pedia/w/williams_oscillator.md @@ -1,7 +1,7 @@ # Williams %R Oscillator #### Introduction -The [Williams %R](../w/williams_%r.md) [oscillator](../o/oscillator.md), developed by famed [trader](../t/trader.md) Larry Williams, is a [momentum](../m/momentum.md)-based [technical analysis](../t/technical_analysis.md) [indicator](../i/indicator.md) that helps traders identify [overbought](../o/overbought.md) and [oversold](../o/oversold.md) [market](../m/market.md) conditions. Unlike other oscillators, such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) and the [Stochastic Oscillator](../s/stochastic_oscillator.md), the [Williams %R](../w/williams_%r.md) operates on a negative scale and is primarily used to pinpoint [market](../m/market.md) turning points. It is highly regarded for its simplicity and effectiveness in a variety of trading scenarios. +The [Williams %R](../w/williams_%r.md) [oscillator](../o/oscillator.md), developed by famed [trader](../t/trader.md) Larry Williams, is a [momentum](../m/momentum.md)-based [technical analysis](../t/technical_analysis.md) [indicator](../i/indicator.md) that helps traders identify [overbought](../o/overbought.md) and [oversold](../o/oversold.md) [market](../m/market.md) conditions. Unlike other oscillators, such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) and the [Stochastic Oscillator](../s/stochastic_oscillator.md), the [Williams %R](../w/williams_%r.md) operates on a negative scale and is primarily used to pinpoint [market](../m/market.md) turning points. It is highly regarded for its simplicity and effectiveness in a variety of trading scenarios. #### Formula The [Williams %R](../w/williams_%r.md) [oscillator](../o/oscillator.md) is calculated using the following formula: diff --git a/en/pedia/w/williams_percent_range.md b/en/pedia/w/williams_percent_range.md index 561ab9cc..98e25b8f 100644 --- a/en/pedia/w/williams_percent_range.md +++ b/en/pedia/w/williams_percent_range.md @@ -33,7 +33,7 @@ This simple strategy involves selling when the [Williams %R](../w/williams_%r.md Traders can also use [Williams %R](../w/williams_%r.md) to identify potential [trend](../t/trend.md) reversals. For instance, a move from [overbought](../o/overbought.md) territory to below -20 can signal the beginning of a [downtrend](../d/downtrend.md). Similarly, a move from [oversold](../o/oversold.md) territory to above -80 can signal the beginning of an [uptrend](../u/uptrend.md). #### 3. Confirming Signals -[Williams %R](../w/williams_%r.md) is often used in conjunction with other indicators to confirm signals. For example, traders may look for alignment between [Williams %R](../w/williams_%r.md) and other [technical indicators](../t/technical_indicators.md) like Moving Averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), or MACD (Moving Average Convergence [Divergence](../d/divergence.md)) to confirm [trade](../t/trade.md) signals. +[Williams %R](../w/williams_%r.md) is often used in conjunction with other indicators to confirm signals. For example, traders may look for alignment between [Williams %R](../w/williams_%r.md) and other [technical indicators](../t/technical_indicators.md) like Moving Averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), or MACD (Moving Average Convergence [Divergence](../d/divergence.md)) to confirm [trade](../t/trade.md) signals. ### Advantages of Williams %R - **Speed**: [Williams %R](../w/williams_%r.md) is responsive and captures short-term price movements effectively. diff --git a/en/pedia/w/wilshire_5000_total_market_index_(tmwx).md b/en/pedia/w/wilshire_5000_total_market_index_(tmwx).md index 9d5cd84f..afb9514c 100644 --- a/en/pedia/w/wilshire_5000_total_market_index_(tmwx).md +++ b/en/pedia/w/wilshire_5000_total_market_index_(tmwx).md @@ -1,6 +1,6 @@ # Wilshire 5000 Total Market Index (TMWX) -The Wilshire 5000 Total [Market Index](../m/market_index.md), commonly referred to simply as the Wilshire 5000, is a [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md) that aims to measure the performance of all U.S.-headquartered [equity](../e/equity.md) securities with readily available price data. It is named after the Wilshire Associates, the [investment management](../i/investment_management.md), consulting, and technology [firm](../f/firm.md) that created it. Established in 1974, the Wilshire 5000 is often used as a [benchmark](../b/benchmark.md) to represent the entirety of the U.S. [stock market](../s/stock_market.md). +The Wilshire 5000 Total [Market Index](../m/market_index.md), commonly referred to simply as the Wilshire 5000, is a [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md) that aims to measure the performance of all U.S.-headquartered [equity](../e/equity.md) securities with readily available price data. It is named after the Wilshire Associates, the [investment management](../i/investment_management.md), consulting, and technology [firm](../f/firm.md) that created it. Established in 1974, the Wilshire 5000 is often used as a [benchmark](../b/benchmark.md) to represent the entirety of the U.S. [stock market](../s/stock_market.md). ## Background and Creation @@ -17,15 +17,15 @@ The Wilshire 5000 includes any publicly traded company that meets the following ### Calculation -The Wilshire 5000 is a [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md). This means that each stock’s influence on the [index](../i/index.md) is proportional to its [market value](../m/market_value.md). The formula for calculating the [market](../m/market.md) cap of a company is: +The Wilshire 5000 is a [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md). This means that each stock’s influence on the [index](../i/index_instrument.md) is proportional to its [market value](../m/market_value.md). The formula for calculating the [market](../m/market.md) cap of a company is: \[ \text{[Market](../m/market.md) Cap} = \text{Share Price} \times \text{Number of Outstanding [Shares](../s/shares.md)} \] -The [index](../i/index.md) [value](../v/value.md) is then calculated by summing up the [market capitalization](../m/market_capitalization.md) of all included [stocks](../s/stock.md) and dividing by a divisor, which normalizes the [index](../i/index.md) [value](../v/value.md). +The [index](../i/index_instrument.md) [value](../v/value.md) is then calculated by summing up the [market capitalization](../m/market_capitalization.md) of all included [stocks](../s/stock.md) and dividing by a divisor, which normalizes the [index](../i/index_instrument.md) [value](../v/value.md). ### Rebalancing -The [index](../i/index.md) is rebalanced monthly to account for new listings, delistings, and corporate actions such as mergers and acquisitions. This ensures that the [index](../i/index.md) remains up-to-date and accurately reflects the current state of the [market](../m/market.md). +The [index](../i/index_instrument.md) is rebalanced monthly to account for new listings, delistings, and corporate actions such as mergers and acquisitions. This ensures that the [index](../i/index_instrument.md) remains up-to-date and accurately reflects the current state of the [market](../m/market.md). ## Components of the Wilshire 5000 @@ -65,7 +65,7 @@ Various mutual funds and [exchange](../e/exchange.md)-traded funds (ETFs) aim to ### Macroeconomic Analysis -Economists and policymakers may look at the Wilshire 5000 to gauge the health of the U.S. [economy](../e/economy.md). Because the [index](../i/index.md) includes companies from various sectors, it can provide insights into the performance of different economic segments. +Economists and policymakers may look at the Wilshire 5000 to gauge the health of the U.S. [economy](../e/economy.md). Because the [index](../i/index_instrument.md) includes companies from various sectors, it can provide insights into the performance of different economic segments. ## Performance @@ -79,7 +79,7 @@ During the 1980s and 1990s, the Wilshire 5000 saw substantial growth due to econ #### Dot-com Bubble and Burst (2000-2002) -In the early 2000s, the [index](../i/index.md) experienced a significant decline during the dot-com bubble burst, reflecting the losses in technology [stocks](../s/stock.md). +In the early 2000s, the [index](../i/index_instrument.md) experienced a significant decline during the dot-com bubble burst, reflecting the losses in technology [stocks](../s/stock.md). #### Global Financial Crisis (2007-2009) @@ -87,25 +87,25 @@ The Wilshire 5000 experienced another sharp decline during the global [financial #### Post-crisis Recovery and Growth (2010-2020) -The [index](../i/index.md) saw one of its most [robust](../r/robust.md) periods of growth following the [financial crisis](../f/financial_crisis.md), driven by an extended [bull market](../b/bull_market.md), technological advancements, and strong corporate [earnings](../e/earnings.md). +The [index](../i/index_instrument.md) saw one of its most [robust](../r/robust.md) periods of growth following the [financial crisis](../f/financial_crisis.md), driven by an extended [bull market](../b/bull_market.md), technological advancements, and strong corporate [earnings](../e/earnings.md). ## Criticisms and Limitations ### Over-representation of Large Companies -One criticism of the Wilshire 5000 is that it becomes very top-heavy due to its [market](../m/market.md)-cap-[weighted](../w/weighted.md) nature. Large companies like Apple and Microsoft have disproportionately large influence on the [index](../i/index.md). +One criticism of the Wilshire 5000 is that it becomes very top-heavy due to its [market](../m/market.md)-cap-[weighted](../w/weighted.md) nature. Large companies like Apple and Microsoft have disproportionately large influence on the [index](../i/index_instrument.md). ### Inclusion Criteria -The requirement that companies be headquartered and [listed](../l/listed.md) in the U.S. excludes some globally significant [stocks](../s/stock.md), which can limit the [index](../i/index.md)’s comprehensiveness. +The requirement that companies be headquartered and [listed](../l/listed.md) in the U.S. excludes some globally significant [stocks](../s/stock.md), which can limit the [index](../i/index_instrument.md)’s comprehensiveness. ### Maintenance and Rebalancing -Constant maintenance, including monthly [rebalancing](../r/rebalancing.md), ensures the [index](../i/index.md) stays current, but it also means it may not fully capture short-term [market](../m/market.md) movements and inefficiencies. +Constant maintenance, including monthly [rebalancing](../r/rebalancing.md), ensures the [index](../i/index_instrument.md) stays current, but it also means it may not fully capture short-term [market](../m/market.md) movements and inefficiencies. ## Real-time Tracking and Data Access -The Wilshire 5000 can be tracked in real-time via various financial news platforms and [stock market](../s/stock_market.md) websites. Investors and analysts who wish to follow the [index](../i/index.md) closely can rely on reputable data providers such as [Bloomberg](../b/bloomberg.md), [Reuters](../r/reuters.md), and Wilshire Associates themselves. +The Wilshire 5000 can be tracked in real-time via various financial news platforms and [stock market](../s/stock_market.md) websites. Investors and analysts who wish to follow the [index](../i/index_instrument.md) closely can rely on reputable data providers such as [Bloomberg](../b/bloomberg.md), [Reuters](../r/reuters.md), and Wilshire Associates themselves. ### Official Website For more detailed information on the Wilshire 5000, you can visit the official Wilshire Associates website at [Wilshire Associates](https://www.wilshire.com/indexes). diff --git a/en/pedia/w/window_analysis_in_trading.md b/en/pedia/w/window_analysis_in_trading.md index f36693c1..d9528f84 100644 --- a/en/pedia/w/window_analysis_in_trading.md +++ b/en/pedia/w/window_analysis_in_trading.md @@ -48,7 +48,7 @@ Window analysis is critical in trading for several reasons: 2. **[Bollinger Bands](../b/bollinger_bands.md)**: [Bollinger Bands](../b/bollinger_bands.md) consist of a moving average and two [standard deviation](../s/standard_deviation.md) lines plotted above and below it. They help identify price [volatility](../v/volatility.md) and potential trading opportunities within different windows. -3. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: +3. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: RSI is a [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) that measures the speed and change of price movements. It is used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions within various time windows. 4. **MACD (Moving Average Convergence [Divergence](../d/divergence.md))**: diff --git a/en/pedia/w/window_guaranteed_investment_contract.md b/en/pedia/w/window_guaranteed_investment_contract.md index 7c66a06e..d247bfa8 100644 --- a/en/pedia/w/window_guaranteed_investment_contract.md +++ b/en/pedia/w/window_guaranteed_investment_contract.md @@ -50,7 +50,7 @@ In this more complex form, the [return](../r/return.md) is partly guaranteed and ### Equity-Linked Window GIC -Here, the [return](../r/return.md) is linked to the performance of a specific [equity](../e/equity.md) [index](../i/index.md), such as the S&P 500. These GICs [offer](../o/offer.md) [upside potential](../u/upside_potential_in_trading.md) if the [market](../m/market.md) performs well but also guarantee the [principal](../p/principal.md) amount, thus limiting [downside risk](../d/downside_risk.md). +Here, the [return](../r/return.md) is linked to the performance of a specific [equity](../e/equity.md) [index](../i/index_instrument.md), such as the S&P 500. These GICs [offer](../o/offer.md) [upside potential](../u/upside_potential_in_trading.md) if the [market](../m/market.md) performs well but also guarantee the [principal](../p/principal.md) amount, thus limiting [downside risk](../d/downside_risk.md). ## Processes Involved in Window GICs diff --git a/en/pedia/w/window_of_opportunity.md b/en/pedia/w/window_of_opportunity.md index 34230a92..f90495aa 100644 --- a/en/pedia/w/window_of_opportunity.md +++ b/en/pedia/w/window_of_opportunity.md @@ -28,7 +28,7 @@ Recognizing these windows can be more an art than a science, but there are metho 2. **[Bollinger Bands](../b/bollinger_band.md)**: These bands can identify [volatility](../v/volatility.md) and potential price breakouts. -3. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Identifying [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions can help spot potential [reversal](../r/reversal.md) points. +3. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Identifying [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions can help spot potential [reversal](../r/reversal.md) points. ### Fundamental Analysis diff --git a/en/pedia/w/windowed_analysis.md b/en/pedia/w/windowed_analysis.md index c8f4a6c6..fbd49e72 100644 --- a/en/pedia/w/windowed_analysis.md +++ b/en/pedia/w/windowed_analysis.md @@ -29,7 +29,7 @@ The ARIMA model combines autoregression, differencing (to make data stationary), [GARCH models](../g/garch_models.md) are used to estimate [volatility](../v/volatility.md) by considering past variances and returns within a rolling window. This helps in developing [risk](../r/risk.md)-adjusted [trading strategies](../t/trading_strategies.md) by [forecasting](../f/forecasting.md) future [market](../m/market.md) [volatility](../v/volatility.md). ### 8. Technical Indicators -Many [technical indicators](../t/technical_indicators.md), such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and Stochastic Oscillators, incorporate windowed analysis to provide signals based on historical price movements. +Many [technical indicators](../t/technical_indicators.md), such as the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), Moving Average Convergence [Divergence](../d/divergence.md) (MACD), and Stochastic Oscillators, incorporate windowed analysis to provide signals based on historical price movements. ## Application in Algorithmic Trading diff --git a/en/pedia/w/windowed_trading_strategies.md b/en/pedia/w/windowed_trading_strategies.md index e6f65f09..f5dd16d7 100644 --- a/en/pedia/w/windowed_trading_strategies.md +++ b/en/pedia/w/windowed_trading_strategies.md @@ -178,7 +178,7 @@ Moving averages smooth out price data to identify trends: ### Momentum Strategies [Momentum](../m/momentum.md) strategies exploit the tendency of assets to continue moving in the same direction: -- Calculating [momentum indicators](../m/momentum_indicators.md) like RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)) over specific windows to enter trades. +- Calculating [momentum indicators](../m/momentum_indicators.md) like RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)) over specific windows to enter trades. ## Tools and Platforms diff --git a/en/pedia/w/winning_strategy_development.md b/en/pedia/w/winning_strategy_development.md index 8bcb83c2..fbee0c20 100644 --- a/en/pedia/w/winning_strategy_development.md +++ b/en/pedia/w/winning_strategy_development.md @@ -11,7 +11,7 @@ - Moving Averages (MA) - Exponential Moving Averages (EMA) - Moving Average Convergence [Divergence](../d/divergence.md) (MACD) -- [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) +- [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) [Trend following](../t/trend_following.md) strategies are typically long-term and require less frequent adjustment compared to other strategies. diff --git a/en/pedia/w/winning_trade_identification.md b/en/pedia/w/winning_trade_identification.md index e3917c3e..3f9d8eaa 100644 --- a/en/pedia/w/winning_trade_identification.md +++ b/en/pedia/w/winning_trade_identification.md @@ -10,7 +10,7 @@ Statistical [arbitrage](../a/arbitrage.md), or stat arb, employs statistical met ### Technical Analysis -[Technical analysis](../t/technical_analysis.md) involves evaluating securities by analyzing [statistics](../s/statistics.md) generated by [market](../m/market.md) activity, such as past prices and [volume](../v/volume.md). [Technical indicators](../t/technical_indicators.md), such as moving averages, MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), help traders identify potential entry and exit points for trades. +[Technical analysis](../t/technical_analysis.md) involves evaluating securities by analyzing [statistics](../s/statistics.md) generated by [market](../m/market.md) activity, such as past prices and [volume](../v/volume.md). [Technical indicators](../t/technical_indicators.md), such as moving averages, MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), help traders identify potential entry and exit points for trades. ### Machine Learning Models diff --git a/en/pedia/w/worden_stochastics.md b/en/pedia/w/worden_stochastics.md index 66a6fa57..315bcacb 100644 --- a/en/pedia/w/worden_stochastics.md +++ b/en/pedia/w/worden_stochastics.md @@ -75,7 +75,7 @@ Traders should fine-tune the periods for \%K and \%D to match their trading styl ### Complementary Indicators -Worden Stochastics can be paired with other [technical indicators](../t/technical_indicator.md) such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), or MACD to confirm signals and enhance the robustness of trading decisions. For example, a stochastic signal aligned with a moving average crossover adds extra confidence to the [trade](../t/trade.md) setup. +Worden Stochastics can be paired with other [technical indicators](../t/technical_indicator.md) such as moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), or MACD to confirm signals and enhance the robustness of trading decisions. For example, a stochastic signal aligned with a moving average crossover adds extra confidence to the [trade](../t/trade.md) setup. ### Time Frame Alignment diff --git a/en/pedia/w/workable_indication.md b/en/pedia/w/workable_indication.md index efa7fbd5..0b4f8da7 100644 --- a/en/pedia/w/workable_indication.md +++ b/en/pedia/w/workable_indication.md @@ -8,11 +8,11 @@ The concept of a workable indication is fundamental in both [finance](../f/finan ### 1. Technical Indicators -[Technical indicators](../t/technical_indicator.md) are statistical calculations based on historical price, [volume](../v/volume.md), or [open interest](../o/open_interest.md) information. They are widely used in [technical analysis](../t/technical_analysis.md) to predict future [market](../m/market.md) movements. Some common [technical indicators](../t/technical_indicator.md) include moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_band.md). +[Technical indicators](../t/technical_indicator.md) are statistical calculations based on historical price, [volume](../v/volume.md), or [open interest](../o/open_interest.md) information. They are widely used in [technical analysis](../t/technical_analysis.md) to predict future [market](../m/market.md) movements. Some common [technical indicators](../t/technical_indicator.md) include moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_band.md). **Moving Averages:** These smooth out price data to identify trends over a specific period. There are different types, including simple moving averages (SMA) and exponential moving averages (EMA). -**[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** RSI measures the speed and change of price movements. It is used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). +**[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** RSI measures the speed and change of price movements. It is used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). **[Bollinger Bands](../b/bollinger_band.md):** These are [volatility](../v/volatility.md) bands placed above and below a moving average. They help in identifying whether prices are high or low relative to their recent average. diff --git a/en/pedia/w/world_equity_benchmark_series_(webs).md b/en/pedia/w/world_equity_benchmark_series_(webs).md index d05c1439..1082a8fa 100644 --- a/en/pedia/w/world_equity_benchmark_series_(webs).md +++ b/en/pedia/w/world_equity_benchmark_series_(webs).md @@ -16,7 +16,7 @@ The first WEBS ETFs were [listed](../l/listed.md) on the American Stock [Exchang ### Structuring of WEBS ETFs -WEBS ETFs are structured as [open](../o/open.md)-ended investment funds, meaning they can create new [shares](../s/shares.md) or redeem existing [shares](../s/shares.md) in response to [investor](../i/investor.md) [demand](../d/demand.md). This structure allows the ETFs to remain closely aligned with the [value](../v/value.md) of the [underlying](../u/underlying.md) assets, as the [supply](../s/supply.md) of [shares](../s/shares.md) can be adjusted based on inflows and outflows. Each WEBS ETF holds a diversified portfolio of securities that replicate the performance of the respective MSCI [index](../i/index.md) it tracks. +WEBS ETFs are structured as [open](../o/open.md)-ended investment funds, meaning they can create new [shares](../s/shares.md) or redeem existing [shares](../s/shares.md) in response to [investor](../i/investor.md) [demand](../d/demand.md). This structure allows the ETFs to remain closely aligned with the [value](../v/value.md) of the [underlying](../u/underlying.md) assets, as the [supply](../s/supply.md) of [shares](../s/shares.md) can be adjusted based on inflows and outflows. Each WEBS ETF holds a diversified portfolio of securities that replicate the performance of the respective MSCI [index](../i/index_instrument.md) it tracks. ### Diversification and Market Exposure @@ -66,13 +66,13 @@ By facilitating convenient and cost-effective access to international equities, ### Encouragement of Index-Investment Approach -The popularity of WEBS ETFs has spurred the growth of the [index](../i/index.md)-investment approach. Investors have increasingly recognized the advantages of [passive investment strategies](../p/passive_investment_strategies.md), including lower fees, broad [diversification](../d/diversification.md), and [transparency](../t/transparency.md). As a result, the assets under management (AUM) in [index](../i/index.md)-tracking ETFs have grown substantially. +The popularity of WEBS ETFs has spurred the growth of the [index](../i/index_instrument.md)-investment approach. Investors have increasingly recognized the advantages of [passive investment strategies](../p/passive_investment_strategies.md), including lower fees, broad [diversification](../d/diversification.md), and [transparency](../t/transparency.md). As a result, the assets under management (AUM) in [index](../i/index_instrument.md)-tracking ETFs have grown substantially. ## Evolution and Rebranding ### Transition to iShares -In 2000, Barclays Global Investors acquired the rights to the WEBS [product line](../p/product_line.md) and rebranded them as [iShares](../i/ishares.md) MSCI [Index](../i/index.md) Funds. This rebranding was a part of a broader strategy to create a comprehensive suite of ETF products under the [iShares](../i/ishares.md) banner, which has since become one of the most prominent names in the ETF [industry](../i/industry.md). In 2009, BlackRock acquired Barclays Global Investors, bringing the [iShares](../i/ishares.md) brand under its management. +In 2000, Barclays Global Investors acquired the rights to the WEBS [product line](../p/product_line.md) and rebranded them as [iShares](../i/ishares.md) MSCI [Index](../i/index_instrument.md) Funds. This rebranding was a part of a broader strategy to create a comprehensive suite of ETF products under the [iShares](../i/ishares.md) banner, which has since become one of the most prominent names in the ETF [industry](../i/industry.md). In 2009, BlackRock acquired Barclays Global Investors, bringing the [iShares](../i/ishares.md) brand under its management. ### Expansion of Product Offerings diff --git a/en/pedia/w/world_fund.md b/en/pedia/w/world_fund.md index 6d289897..5b88dc5b 100644 --- a/en/pedia/w/world_fund.md +++ b/en/pedia/w/world_fund.md @@ -10,7 +10,7 @@ World Funds are financial vehicles specifically designed to invest in a wide arr 1. **Global Mutual Funds**: These are [open](../o/open.md)-end funds that pool [money](../m/money.md) from [multiple](../m/multiple.md) investors to purchase a diversified portfolio of international securities. Global mutual funds are actively managed, meaning [fund](../f/fund.md) managers make decisions on purchasing and selling assets to [outperform](../o/outperform.md) [benchmark](../b/benchmark.md) indices. -2. **[Exchange](../e/exchange.md)-Traded Funds (ETFs)**: These funds [offer](../o/offer.md) a passive investment option, usually tracking an international [index](../i/index.md) like the MSCI World [Index](../i/index.md) or the FTSE All-World [Index](../i/index.md). ETFs [trade](../t/trade.md) on stock exchanges, allowing investors to buy and sell [shares](../s/shares.md) throughout the trading day. +2. **[Exchange](../e/exchange.md)-Traded Funds (ETFs)**: These funds [offer](../o/offer.md) a passive investment option, usually tracking an international [index](../i/index_instrument.md) like the MSCI World [Index](../i/index_instrument.md) or the FTSE All-World [Index](../i/index_instrument.md). ETFs [trade](../t/trade.md) on stock exchanges, allowing investors to buy and sell [shares](../s/shares.md) throughout the trading day. 3. **[Private Equity](../p/private_equity.md) Funds**: These funds invest in private companies around the world. They usually follow a longer-term [investment horizon](../i/investment_horizon.md) and may engage in [venture capital](../v/venture_capital.md), buyouts, and other strategies to achieve their objectives. diff --git a/en/pedia/w/world_stock_indexes.md b/en/pedia/w/world_stock_indexes.md index 14782f4c..03e568ad 100644 --- a/en/pedia/w/world_stock_indexes.md +++ b/en/pedia/w/world_stock_indexes.md @@ -2,7 +2,7 @@ #### 1. Introduction to Stock Indexes -A stock [index](../i/index.md), or stock [market index](../m/market_index.md), is a measurement of the [value](../v/value.md) of a section of the [stock market](../s/stock_market.md). It is computed from the prices of selected [stocks](../s/stock.md). These indices serve as indicators of the overall performance and health of the [stock market](../s/stock_market.md) and are used by analysts and investors to understand the [market](../m/market.md) trends, compare individual [stocks](../s/stock.md), and develop investment strategies. +A stock [index](../i/index_instrument.md), or stock [market index](../m/market_index.md), is a measurement of the [value](../v/value.md) of a section of the [stock market](../s/stock_market.md). It is computed from the prices of selected [stocks](../s/stock.md). These indices serve as indicators of the overall performance and health of the [stock market](../s/stock_market.md) and are used by analysts and investors to understand the [market](../m/market.md) trends, compare individual [stocks](../s/stock.md), and develop investment strategies. #### 2. Major World Stock Indexes @@ -11,13 +11,13 @@ Below are some of the most significant stock indexes around the world: ##### 2.1 S&P 500 (United States) **Overview:** -The Standard & Poor's 500 [Index](../i/index.md) (S&P 500) is one of the most widely followed [equity](../e/equity.md) indices, representing the 500 largest publicly traded companies in the United States. It is often considered a barometer for the U.S. [economy](../e/economy.md). +The Standard & Poor's 500 [Index](../i/index_instrument.md) (S&P 500) is one of the most widely followed [equity](../e/equity.md) indices, representing the 500 largest publicly traded companies in the United States. It is often considered a barometer for the U.S. [economy](../e/economy.md). **Historical Context:** The S&P 500 was created in 1957 by the [rating](../r/rating.md) agency Standard & Poor's. It was the first stock [market index](../m/market_index.md) to include a broad base of companies from various industries. **Key Components:** -- The [index](../i/index.md) includes companies such as Apple, Microsoft, Amazon, and Tesla. +- The [index](../i/index_instrument.md) includes companies such as Apple, Microsoft, Amazon, and Tesla. - It covers approximately 80% of the entire U.S. stock [market capitalization](../m/market_capitalization.md). **Website:** [S&P 500](https://www.spglobal.com/spdji/en/indices/equity/sp-500/) @@ -53,7 +53,7 @@ Established in 1971, the [NASDAQ](../n/nasdaq.md) Composite was the first electr ##### 2.4 FTSE 100 (United Kingdom) **Overview:** -The FTSE 100 [Index](../i/index.md) is a share [index](../i/index.md) of the 100 companies [listed](../l/listed.md) on the London Stock [Exchange](../e/exchange.md) with the highest [market capitalization](../m/market_capitalization.md). +The FTSE 100 [Index](../i/index_instrument.md) is a share [index](../i/index_instrument.md) of the 100 companies [listed](../l/listed.md) on the London Stock [Exchange](../e/exchange.md) with the highest [market capitalization](../m/market_capitalization.md). **Historical Context:** The FTSE 100 was established in 1984 and is managed by the FTSE Group, a subsidiary of the London Stock [Exchange](../e/exchange.md) Group. @@ -70,7 +70,7 @@ The FTSE 100 was established in 1984 and is managed by the FTSE Group, a subsidi The DAX (Deutscher Aktienindex) is a [blue-chip stock](../b/blue-chip_stock.md) [market index](../m/market_index.md) consisting of the 30 major German companies trading on the Frankfurt Stock [Exchange](../e/exchange.md). **Historical Context:** -The DAX [index](../i/index.md) was first introduced in 1988. +The DAX [index](../i/index_instrument.md) was first introduced in 1988. **Key Components:** - Includes multinational giants such as Siemens, Bayer, and BMW. @@ -84,7 +84,7 @@ The DAX [index](../i/index.md) was first introduced in 1988. The [Nikkei](../n/nikkei.md) 225, commonly referred to as the [Nikkei](../n/nikkei.md), is a stock [market index](../m/market_index.md) for the Tokyo Stock [Exchange](../e/exchange.md). **Historical Context:** -Introduced in 1950, it is the oldest stock [index](../i/index.md) in Asia and is calculated using the same methodology as the Dow Jones Industrial Average in the United States, being a [price-weighted index](../p/price-weighted_index.md). +Introduced in 1950, it is the oldest stock [index](../i/index_instrument.md) in Asia and is calculated using the same methodology as the Dow Jones Industrial Average in the United States, being a [price-weighted index](../p/price-weighted_index.md). **Key Components:** - Incorporates prominent companies like Toyota, SoftBank, and Sony. @@ -109,10 +109,10 @@ It was established in 1987 and stands for "Cotation Assistée en Continu" (Conti ##### 2.8 Hang Seng Index (Hong Kong) **Overview:** -The Hang Seng [Index](../i/index.md) is a free-[float](../f/float.md) adjusted [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) [index](../i/index.md) in Hong Kong, comprising the largest companies in the Hong Kong Stock [Exchange](../e/exchange.md). +The Hang Seng [Index](../i/index_instrument.md) is a free-[float](../f/float.md) adjusted [market capitalization](../m/market_capitalization.md)-[weighted](../w/weighted.md) [index](../i/index_instrument.md) in Hong Kong, comprising the largest companies in the Hong Kong Stock [Exchange](../e/exchange.md). **Historical Context:** -The [index](../i/index.md) was established in 1969 as a way to gauge the overall performance of the territory's [equity market](../e/equity_market.md). +The [index](../i/index_instrument.md) was established in 1969 as a way to gauge the overall performance of the territory's [equity market](../e/equity_market.md). **Key Components:** - Major companies include HSBC, Tencent [Holdings](../h/holdings.md), and China Mobile. @@ -123,10 +123,10 @@ The [index](../i/index.md) was established in 1969 as a way to gauge the overall ##### 2.9 SSE Composite Index (China) **Overview:** -The Shanghai Stock [Exchange](../e/exchange.md) Composite [Index](../i/index.md) is an [index](../i/index.md) of all [stocks](../s/stock.md) (A [shares](../s/shares.md) and B [shares](../s/shares.md)) that are traded on the Shanghai Stock [Exchange](../e/exchange.md). +The Shanghai Stock [Exchange](../e/exchange.md) Composite [Index](../i/index_instrument.md) is an [index](../i/index_instrument.md) of all [stocks](../s/stock.md) (A [shares](../s/shares.md) and B [shares](../s/shares.md)) that are traded on the Shanghai Stock [Exchange](../e/exchange.md). **Historical Context:** -The [index](../i/index.md) was created in 1991 to represent the overall performance of the Shanghai Stock [Exchange](../e/exchange.md). +The [index](../i/index_instrument.md) was created in 1991 to represent the overall performance of the Shanghai Stock [Exchange](../e/exchange.md). **Key Components:** - Contains influential companies like PetroChina, Industrial and [Commercial Bank](../c/commercial_bank.md) of China, and Sinopec. @@ -137,7 +137,7 @@ The [index](../i/index.md) was created in 1991 to represent the overall performa ##### 2.10 SENSEX (India) **Overview:** -The S&P BSE [SENSEX](../s/sensex.md) [Index](../i/index.md), also known as the [Sensex](../s/sensex.md), is a [benchmark](../b/benchmark.md) [index](../i/index.md) of the Bombay Stock [Exchange](../e/exchange.md) in India. +The S&P BSE [SENSEX](../s/sensex.md) [Index](../i/index_instrument.md), also known as the [Sensex](../s/sensex.md), is a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) of the Bombay Stock [Exchange](../e/exchange.md) in India. **Historical Context:** It was created in 1986 and comprises 30 financially sound and well-established companies. @@ -156,7 +156,7 @@ Stock indexes provide a [benchmark](../b/benchmark.md) for measuring the perform ##### 3.2 Market Sentiment -Indexes reflect the general [market sentiment](../m/market_sentiment.md) at a glance. A rising [index](../i/index.md) indicates a bullish [market](../m/market.md), while a falling [index](../i/index.md) suggests bearish sentiment. +Indexes reflect the general [market sentiment](../m/market_sentiment.md) at a glance. A rising [index](../i/index_instrument.md) indicates a bullish [market](../m/market.md), while a falling [index](../i/index_instrument.md) suggests bearish sentiment. ##### 3.3 Economic Indicators @@ -164,7 +164,7 @@ Indexes also function as leading [economic indicators](../e/economic_indicators. ##### 3.4 Trading and Investment Products -Many investment products are designed to track specific indexes, including [index](../i/index.md) funds and [exchange](../e/exchange.md)-traded funds (ETFs). These products provide investors with a means to invest in a diversified portfolio without picking individual [stocks](../s/stock.md). +Many investment products are designed to track specific indexes, including [index](../i/index_instrument.md) funds and [exchange](../e/exchange.md)-traded funds (ETFs). These products provide investors with a means to invest in a diversified portfolio without picking individual [stocks](../s/stock.md). #### 4. Methodologies of Index Construction @@ -174,7 +174,7 @@ A [price-weighted index](../p/price-weighted_index.md), like the Dow Jones Indus ##### 4.2 Market-Cap Weighted -Most modern indexes, including the S&P 500, are [market](../m/market.md)-cap [weighted](../w/weighted.md), meaning that companies with higher [market](../m/market.md) capitalizations have a larger impact on the [index](../i/index.md)'s performance. +Most modern indexes, including the S&P 500, are [market](../m/market.md)-cap [weighted](../w/weighted.md), meaning that companies with higher [market](../m/market.md) capitalizations have a larger impact on the [index](../i/index_instrument.md)'s performance. ##### 4.3 Equal-Weighted @@ -182,4 +182,4 @@ Some indexes use an equal-[weighted](../w/weighted.md) approach, giving the same #### 5. Conclusion -Understanding world stock indexes is crucial for any [investor](../i/investor.md) or [market](../m/market.md) participant. These indexes not only provide insight into the performance of specific sections of the [stock market](../s/stock_market.md) but also serve as valuable tools for making informed investment decisions. Whether one is benchmarking a portfolio, gauging [market sentiment](../m/market_sentiment.md), or [investing](../i/investing.md) through [index](../i/index.md)-linked products, stock indexes [offer](../o/offer.md) a consolidated view of [market](../m/market.md) movements and economic health. +Understanding world stock indexes is crucial for any [investor](../i/investor.md) or [market](../m/market.md) participant. These indexes not only provide insight into the performance of specific sections of the [stock market](../s/stock_market.md) but also serve as valuable tools for making informed investment decisions. Whether one is benchmarking a portfolio, gauging [market sentiment](../m/market_sentiment.md), or [investing](../i/investing.md) through [index](../i/index_instrument.md)-linked products, stock indexes [offer](../o/offer.md) a consolidated view of [market](../m/market.md) movements and economic health. diff --git a/en/pedia/w/worldwide_economic_indicators.md b/en/pedia/w/worldwide_economic_indicators.md index b1bf9870..40364a7d 100644 --- a/en/pedia/w/worldwide_economic_indicators.md +++ b/en/pedia/w/worldwide_economic_indicators.md @@ -22,7 +22,7 @@ In [algorithmic trading](../a/algorithmic_trading.md), GDP data can be used in s ### Definition and Importance -The Consumer Price [Index](../i/index.md) (CPI) measures the average change in prices over time that consumers pay for a [basket of goods](../b/basket_of_goods.md) and services. It's a key [indicator](../i/indicator.md) of [inflation](../i/inflation.md). +The Consumer Price [Index](../i/index_instrument.md) (CPI) measures the average change in prices over time that consumers pay for a [basket of goods](../b/basket_of_goods.md) and services. It's a key [indicator](../i/indicator.md) of [inflation](../i/inflation.md). 1. **Headline CPI**: Includes all items. 2. **Core CPI**: Excludes volatile items like food and energy to provide a clearer view of long-term [inflation](../i/inflation.md) trends. @@ -94,7 +94,7 @@ The balance of [trade](../t/trade.md) is the difference between a country's impo ### Definition and Importance -The Purchasing Managers' [Index](../i/index.md) (PMI) is a survey-based measure that gauges the economic health of the [manufacturing](../m/manufacturing.md) and service sectors. A PMI above 50 indicates [expansion](../e/expansion.md), while below 50 indicates contraction. +The Purchasing Managers' [Index](../i/index_instrument.md) (PMI) is a survey-based measure that gauges the economic health of the [manufacturing](../m/manufacturing.md) and service sectors. A PMI above 50 indicates [expansion](../e/expansion.md), while below 50 indicates contraction. ### Utilization in Algorithmic Trading @@ -105,7 +105,7 @@ The Purchasing Managers' [Index](../i/index.md) (PMI) is a survey-based measure ### Definition and Importance -The Producer Price [Index](../i/index.md) (PPI) measures the average changes in selling prices received by domestic producers for their output. It’s an [indicator](../i/indicator.md) of [inflation](../i/inflation.md) at the wholesale level. +The Producer Price [Index](../i/index_instrument.md) (PPI) measures the average changes in selling prices received by domestic producers for their output. It’s an [indicator](../i/indicator.md) of [inflation](../i/inflation.md) at the wholesale level. ### Utilization in Algorithmic Trading @@ -116,7 +116,7 @@ The Producer Price [Index](../i/index.md) (PPI) measures the average changes in ### Definition and Importance -Leading [Economic Indicators](../e/economic_indicators.md) (LEIs) are a composite [index](../i/index.md), often published by economic research institutions, intended to predict future economic activity. These can include metrics like [stock market](../s/stock_market.md) returns, building permits, and new orders for manufactured goods. +Leading [Economic Indicators](../e/economic_indicators.md) (LEIs) are a composite [index](../i/index_instrument.md), often published by economic research institutions, intended to predict future economic activity. These can include metrics like [stock market](../s/stock_market.md) returns, building permits, and new orders for manufactured goods. ### Utilization in Algorithmic Trading diff --git a/en/pedia/w/worldwide_market_analysis.md b/en/pedia/w/worldwide_market_analysis.md index e749f738..a0203086 100644 --- a/en/pedia/w/worldwide_market_analysis.md +++ b/en/pedia/w/worldwide_market_analysis.md @@ -14,7 +14,7 @@ Worldwide [Market](../m/market.md) Analysis is a comprehensive term that encompa 5. **[Derivatives](../d/derivatives.md) Markets**: [Derivatives](../d/derivatives.md) markets include instruments like [futures](../f/futures.md), [options](../o/options.md), swaps, and forwards. These financial contracts derive their [value](../v/value.md) from [underlying](../u/underlying.md) assets like [stocks](../s/stock.md), bonds, commodities, or currencies. Analyzing these markets involves understanding [hedging strategies](../h/hedging_strategies.md), [leverage](../l/leverage.md), [speculation](../s/speculation.md), and [arbitrage](../a/arbitrage.md) opportunities. -6. **[Economic Indicators](../e/economic_indicators.md)**: [Economic indicators](../e/economic_indicators.md) such as Gross Domestic Product (GDP), [unemployment](../u/unemployment.md) rates, [inflation](../i/inflation.md) rates, and Consumer Price [Index](../i/index.md) (CPI) serve as metrics to gauge the health of global economies. Analysts utilize these indicators to predict [market](../m/market.md) movements and economic trends. +6. **[Economic Indicators](../e/economic_indicators.md)**: [Economic indicators](../e/economic_indicators.md) such as Gross Domestic Product (GDP), [unemployment](../u/unemployment.md) rates, [inflation](../i/inflation.md) rates, and Consumer Price [Index](../i/index_instrument.md) (CPI) serve as metrics to gauge the health of global economies. Analysts utilize these indicators to predict [market](../m/market.md) movements and economic trends. 7. **[Geopolitical Events](../g/geopolitical_events.md)**: Geopolitical analysis assesses the impact of political events, international conflicts, [trade](../t/trade.md) agreements, and diplomatic relations on global markets. Events like [Brexit](../b/brexit.md), U.S.-China [trade](../t/trade.md) tensions, or Middle Eastern conflicts significantly sway [market dynamics](../m/market_dynamics.md). @@ -40,7 +40,7 @@ Worldwide [Market](../m/market.md) Analysis is a comprehensive term that encompa 1. **[Fundamental Analysis](../f/fundamental_analysis.md)**: This involves evaluating a company’s [financial statements](../f/financial_statements.md), management, [industry](../i/industry.md) position, and economic factors to assess its [intrinsic value](../i/intrinsic_value.md). Key metrics include [earnings](../e/earnings.md), [revenue](../r/revenue.md), [profit margins](../p/profit_margins_in_trading.md), and [growth rates](../g/growth_rates_in_trading.md). -2. **[Technical Analysis](../t/technical_analysis.md)**: Analysts use statistical tools and [chart patterns](../c/chart_patterns.md) to predict price movements based on historical [market](../m/market.md) data. Techniques like moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) are commonly employed. +2. **[Technical Analysis](../t/technical_analysis.md)**: Analysts use statistical tools and [chart patterns](../c/chart_patterns.md) to predict price movements based on historical [market](../m/market.md) data. Techniques like moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) are commonly employed. 3. **[Quantitative Analysis](../q/quantitative_analysis.md)**: Utilizes mathematical and statistical models to analyze [market](../m/market.md) data. This includes [regression analysis](../r/regression_analysis.md), stochastic models, and [algorithmic trading](../a/algorithmic_trading.md) strategies based on complex [quantitative models](../q/quantitative_models.md). diff --git a/en/pedia/x/x-11_seasonal_models.md b/en/pedia/x/x-11_seasonal_models.md index f740dc74..41e2c21d 100644 --- a/en/pedia/x/x-11_seasonal_models.md +++ b/en/pedia/x/x-11_seasonal_models.md @@ -53,7 +53,7 @@ The development of X-12-ARIMA and X-13-ARIMA-SEATS represents advancements of th Seasonal adjustments using the X-11 method are vital for a wide [range](../r/range.md) of [economic indicators](../e/economic_indicators.md), including: - **Gross Domestic Product (GDP)** -- **Consumer Price [Index](../i/index.md) (CPI)** +- **Consumer Price [Index](../i/index_instrument.md) (CPI)** - **[Unemployment](../u/unemployment.md) rates** ### Implementation and Software Tools diff --git a/en/pedia/x/x-input_variables.md b/en/pedia/x/x-input_variables.md index 7288e22f..4e1b7253 100644 --- a/en/pedia/x/x-input_variables.md +++ b/en/pedia/x/x-input_variables.md @@ -21,7 +21,7 @@ These include all real-time and historical data related to trading activities, s [Technical indicators](../t/technical_indicators.md) are derived from the historical price and [volume](../v/volume.md) data and are used to identify patterns or trends in the [market](../m/market.md). Some popular [technical indicators](../t/technical_indicators.md) include: - **Moving Averages**: Simple Moving Average (SMA), Exponential Moving Average (EMA) -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)** +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)** - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)** - **[Bollinger Bands](../b/bollinger_bands.md)** diff --git a/en/pedia/x/x-pattern_trading.md b/en/pedia/x/x-pattern_trading.md index afe22adb..47a85a1b 100644 --- a/en/pedia/x/x-pattern_trading.md +++ b/en/pedia/x/x-pattern_trading.md @@ -12,7 +12,7 @@ X-Pattern Trading is a sophisticated [algorithmic trading](../a/algorithmic_trad 1. **[Trend](../t/trend.md) Lines**: These are diagonal lines drawn on charts to indicate the direction of the price. In [X-Patterns](../x/x-patterns_in_trading.md), [trend](../t/trend.md) lines often intersect, suggesting a critical point in the price movement. -2. **[Technical Indicators](../t/technical_indicators.md)**: Indicators such as the Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) frequently participate in forming [X-Patterns](../x/x-patterns_in_trading.md). +2. **[Technical Indicators](../t/technical_indicators.md)**: Indicators such as the Moving Average Convergence [Divergence](../d/divergence.md) (MACD), [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md) frequently participate in forming [X-Patterns](../x/x-patterns_in_trading.md). 3. **[Volume](../v/volume.md)**: Trading [volume](../v/volume.md) is an essential element. Spikes in [volume](../v/volume.md) can often signify the [breakout](../b/breakout.md) or breakdown associated with an X-Pattern. diff --git a/en/pedia/x/x-peak_identification.md b/en/pedia/x/x-peak_identification.md index dfbe8d7d..b7105166 100644 --- a/en/pedia/x/x-peak_identification.md +++ b/en/pedia/x/x-peak_identification.md @@ -56,8 +56,8 @@ Several libraries and tools are available for implementing X-Peak Identification - `PyWavelets` (https://pywavelets.readthedocs.io/): A library for wavelet transforms, useful for multi-resolution analysis. 2. **R Packages**: - - `TTR` (https://cran.r-project.org/web/packages/TTR/[index](../i/index.md).html): Provides technical [trading rules](../t/trading_rules.md) and indicators, including peak detection. - - `pracma` (https://cran.r-project.org/web/packages/pracma/[index](../i/index.md).html): Contains functions for numerical analysis, including [signal processing](../s/signal_processing_in_trading.md) and peak finding. + - `TTR` (https://cran.r-project.org/web/packages/TTR/[index](../i/index_instrument.md).html): Provides technical [trading rules](../t/trading_rules.md) and indicators, including peak detection. + - `pracma` (https://cran.r-project.org/web/packages/pracma/[index](../i/index_instrument.md).html): Contains functions for numerical analysis, including [signal processing](../s/signal_processing_in_trading.md) and peak finding. 3. **MATLAB Toolboxes**: - `[Signal Processing](../s/signal_processing_in_trading.md) Toolbox` (https://www.mathworks.com/products/signal.html): Offers comprehensive tools for peak detection and analysis. diff --git a/en/pedia/x/x-price_analysis.md b/en/pedia/x/x-price_analysis.md index 305b0fc9..846eb895 100644 --- a/en/pedia/x/x-price_analysis.md +++ b/en/pedia/x/x-price_analysis.md @@ -28,7 +28,7 @@ The core of X-Price Analysis lies in sophisticated algorithms designed to predic - **Machine Learning Models**: Models such as [neural networks](../n/neural_networks_in_trading.md), [support vector machines](../s/support_vector_machines_in_trading.md), and [random forests](../r/random_forests_in_trading.md) which can process vast amounts of data to find patterns. - **Statistical Methods**: Techniques like [regression analysis](../r/regression_analysis.md), time-series analysis, and [Bayesian inference](../b/bayesian_inference.md). -- **[Technical Indicators](../t/technical_indicators.md)**: Incorporating conventional indicators like RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and [Bollinger Bands](../b/bollinger_bands.md). +- **[Technical Indicators](../t/technical_indicators.md)**: Incorporating conventional indicators like RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and [Bollinger Bands](../b/bollinger_bands.md). ### 4. **Risk Management** diff --git a/en/pedia/x/x-price_analysis_models.md b/en/pedia/x/x-price_analysis_models.md index d84fb905..a0e32346 100644 --- a/en/pedia/x/x-price_analysis_models.md +++ b/en/pedia/x/x-price_analysis_models.md @@ -130,11 +130,11 @@ Statistical [arbitrage](../a/arbitrage.md) involves trading securities based on ### 5.2 Index Arbitrage -[Index](../i/index.md) [arbitrage](../a/arbitrage.md) takes advantage of price differences between the [index futures](../i/index_futures.md) and the [underlying](../u/underlying.md) [stocks](../s/stock.md) within the [index](../i/index.md). Traders buy [undervalued](../u/undervalued.md) assets and sell [overvalued](../o/overvalued.md) ones. +[Index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) takes advantage of price differences between the [index futures](../i/index_futures.md) and the [underlying](../u/underlying.md) [stocks](../s/stock.md) within the [index](../i/index_instrument.md). Traders buy [undervalued](../u/undervalued.md) assets and sell [overvalued](../o/overvalued.md) ones. ### Example: [Jane Street](https://www.janestreet.com/) -Jane Street is a global [proprietary trading](../p/proprietary_trading.md) [firm](../f/firm.md) widely known for its expertise in [arbitrage](../a/arbitrage.md) strategies, leveraging statistical and [index](../i/index.md) [arbitrage](../a/arbitrage.md) models to generate consistent returns. +Jane Street is a global [proprietary trading](../p/proprietary_trading.md) [firm](../f/firm.md) widely known for its expertise in [arbitrage](../a/arbitrage.md) strategies, leveraging statistical and [index](../i/index_instrument.md) [arbitrage](../a/arbitrage.md) models to generate consistent returns. ## 6. High-Frequency Trading (HFT) Models diff --git a/en/pedia/x/x-price_modeling.md b/en/pedia/x/x-price_modeling.md index 13d2923a..a1eeda32 100644 --- a/en/pedia/x/x-price_modeling.md +++ b/en/pedia/x/x-price_modeling.md @@ -21,7 +21,7 @@ The effectiveness of X-Price modeling heavily depends on the quality and diversi - **Historical Price Data**: This is the backbone of X-Price modeling, as historical prices provide the raw material for analysis. - **[Volume](../v/volume.md) Data**: Trading [volume](../v/volume.md) data is crucial for understanding [market](../m/market.md) [liquidity](../l/liquidity.md) and the intensity of trades. - **Fundamental Data**: This includes [financial statements](../f/financial_statements.md), [earnings](../e/earnings.md) reports, and macroeconomic indicators. -- **[Technical Indicators](../t/technical_indicators.md)**: Derived from historical price and [volume](../v/volume.md) data, these indicators include moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md). +- **[Technical Indicators](../t/technical_indicators.md)**: Derived from historical price and [volume](../v/volume.md) data, these indicators include moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and [Bollinger Bands](../b/bollinger_bands.md). - **[Sentiment Analysis](../s/sentiment_analysis.md)**: Data from news articles, [social media](../s/social_media.md) platforms, and other textual sources can provide insight into [market sentiment](../m/market_sentiment.md). Feature engineering is the process of converting these raw data sources into meaningful inputs for the models. This may involve creating new variables, normalizing data, or conducting [principal component analysis](../p/principal_component_analysis_(pca).md) (PCA) to reduce dimensionality. diff --git a/en/pedia/x/x-rate_analysis_in_trading.md b/en/pedia/x/x-rate_analysis_in_trading.md index 699f8358..ab14b32b 100644 --- a/en/pedia/x/x-rate_analysis_in_trading.md +++ b/en/pedia/x/x-rate_analysis_in_trading.md @@ -36,7 +36,7 @@ Monetary models emphasize the relationship between [money supply](../m/money_sup ### 5. **Technical Analysis** -[Technical analysis](../t/technical_analysis.md) involves evaluating historical price movements and trading [volume](../v/volume.md) to predict future price movements. Tools like moving averages, [Bollinger bands](../b/bollinger_bands.md), and the [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) are often applied. +[Technical analysis](../t/technical_analysis.md) involves evaluating historical price movements and trading [volume](../v/volume.md) to predict future price movements. Tools like moving averages, [Bollinger bands](../b/bollinger_bands.md), and the [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) are often applied. ### 6. **Sentiment Analysis** diff --git a/en/pedia/x/x-seasonality_detection.md b/en/pedia/x/x-seasonality_detection.md index 46b6de28..baab8ea7 100644 --- a/en/pedia/x/x-seasonality_detection.md +++ b/en/pedia/x/x-seasonality_detection.md @@ -26,7 +26,7 @@ X-[Seasonality](../s/seasonality.md) Detection extends traditional [seasonality ### Incorporating Macroeconomic Data Key [economic indicators](../e/economic_indicators.md) can be layered to refine seasonal models: - **GDP [Growth Rates](../g/growth_rates_in_trading.md)**: Annual or quarterly changes in GDP can indicate macroeconomic trends. -- **[Inflation](../i/inflation.md) Data**: Consumer Price [Index](../i/index.md) (CPI) and Producer Price [Index](../i/index.md) (PPI) [offer](../o/offer.md) insights into inflationary pressures. +- **[Inflation](../i/inflation.md) Data**: Consumer Price [Index](../i/index_instrument.md) (CPI) and Producer Price [Index](../i/index_instrument.md) (PPI) [offer](../o/offer.md) insights into inflationary pressures. - **Employment Data**: Non-Farm Payrolls (NFP) numbers can reflect broader economic health. ### Sentiment Analysis diff --git a/en/pedia/x/x-sector_rotation.md b/en/pedia/x/x-sector_rotation.md index 88411c52..a12aae6c 100644 --- a/en/pedia/x/x-sector_rotation.md +++ b/en/pedia/x/x-sector_rotation.md @@ -29,7 +29,7 @@ One real-world example of a company employing X-[Sector Rotation](../s/sector_ro #### Key Metrics and Indicators - **[Economic Indicators](../e/economic_indicators.md):** Key economic metrics like GDP growth, [inflation](../i/inflation.md), and [interest](../i/interest.md) rates influence [sector performance](../s/sector_performance.md). For example, rising [interest](../i/interest.md) rates might benefit the [financial sector](../f/financial_sector.md) while hurting [interest](../i/interest.md)-rate-sensitive sectors like utilities. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** The RSI can be used to gauge the [momentum](../m/momentum.md) of different sectors, identifying those that are gaining strength and those that are weakening. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** The RSI can be used to gauge the [momentum](../m/momentum.md) of different sectors, identifying those that are gaining strength and those that are weakening. - **Sector-specific Metrics:** Each sector has unique [performance indicators](../p/performance_indicators.md); for instance, technology companies might be evaluated based on innovation indices, while energy [stocks](../s/stock.md) might be analyzed based on oil prices. #### Challenges and Limitations diff --git a/en/pedia/x/x-signal_generation.md b/en/pedia/x/x-signal_generation.md index 2be0fde7..dcad335c 100644 --- a/en/pedia/x/x-signal_generation.md +++ b/en/pedia/x/x-signal_generation.md @@ -21,7 +21,7 @@ There are several types of signals that traders rely on: #### Technical Indicators [Technical indicators](../t/technical_indicators.md) are mathematical calculations based on historical prices, volumes, or [open interest](../o/open_interest.md). Common [technical indicators](../t/technical_indicators.md) include: - **Moving Averages (MA)**: Calculating the average price over a specific period. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measuring the speed and change of price movements. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measuring the speed and change of price movements. - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: A [trend](../t/trend.md)-following [momentum](../m/momentum.md) [indicator](../i/indicator.md). #### Statistical Models diff --git a/en/pedia/x/x-signal_processing.md b/en/pedia/x/x-signal_processing.md index 6db9bd99..54f152bb 100644 --- a/en/pedia/x/x-signal_processing.md +++ b/en/pedia/x/x-signal_processing.md @@ -9,7 +9,7 @@ X-[Signal Processing](../s/signal_processing_in_trading.md) in the domain of [al 1. **[Market](../m/market.md) Data Signals**: This includes price, [volume](../v/volume.md), and other trading data originating from exchanges. [Market](../m/market.md) data can be used for real-time trading decisions or [backtesting](../b/backtesting.md) [trading strategies](../t/trading_strategies.md). 2. **News Sentiment Signals**: Text data from news articles, [social media](../s/social_media.md), [earnings](../e/earnings.md) reports, etc., which are processed using [Natural Language Processing](../n/natural_language_processing_(nlp)_in_trading.md) (NLP) to extract sentiment and other meaningful signals. 3. **[Alternative Data](../a/alternative_data.md) Signals**: This includes non-traditional datasets such as satellite imagery, mobile data, web traffic, etc., processed to derive [trading signals](../t/trading_signals.md). -4. **[Technical Indicators](../t/technical_indicators.md)**: Derived from historical [market](../m/market.md) data, [technical indicators](../t/technical_indicators.md) such as Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), etc., can be customized and enhanced using advanced X-[signal processing](../s/signal_processing_in_trading.md) techniques. +4. **[Technical Indicators](../t/technical_indicators.md)**: Derived from historical [market](../m/market.md) data, [technical indicators](../t/technical_indicators.md) such as Moving Averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), etc., can be customized and enhanced using advanced X-[signal processing](../s/signal_processing_in_trading.md) techniques. #### Core Techniques in X-Signal Processing diff --git a/en/pedia/x/x-statistical_models.md b/en/pedia/x/x-statistical_models.md index aec7f85a..2f8b6f9a 100644 --- a/en/pedia/x/x-statistical_models.md +++ b/en/pedia/x/x-statistical_models.md @@ -40,7 +40,7 @@ To ensure the reliability of an X-Statistical model, it must be trained on histo #### Momentum Models -[Momentum](../m/momentum.md) models [capitalize](../c/capitalize.md) on the concept that assets which have performed well in the past are likely to continue performing well in the short-term future. These models use indicators such as Moving Average Convergence [Divergence](../d/divergence.md) (MACD) and [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) to capture trends and make trading decisions. +[Momentum](../m/momentum.md) models [capitalize](../c/capitalize.md) on the concept that assets which have performed well in the past are likely to continue performing well in the short-term future. These models use indicators such as Moving Average Convergence [Divergence](../d/divergence.md) (MACD) and [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) to capture trends and make trading decisions. #### Arbitrage Models diff --git a/en/pedia/x/x-stock_indicators.md b/en/pedia/x/x-stock_indicators.md index eca16340..a33f44a9 100644 --- a/en/pedia/x/x-stock_indicators.md +++ b/en/pedia/x/x-stock_indicators.md @@ -9,7 +9,7 @@ X-Stock Indicators are a subset of [technical indicators](../t/technical_indicat ## Types of X-Stock Indicators 1. **[Momentum Indicators](../m/momentum_indicators.md)** - - **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: + - **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: The RSI measures the speed and change of price movements. It is used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions in a [market](../m/market.md). - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: The MACD is an [indicator](../i/indicator.md) that follows the [trend](../t/trend.md) and shows the relationship between two moving averages of a [security](../s/security.md)’s price. diff --git a/en/pedia/x/x-stock_screening.md b/en/pedia/x/x-stock_screening.md index d92dc099..cce2a795 100644 --- a/en/pedia/x/x-stock_screening.md +++ b/en/pedia/x/x-stock_screening.md @@ -10,7 +10,7 @@ Data is the foundation of any stock screening process. The accuracy, completenes - **Historical Price Data**: Information on past stock performance. - **Fundamental Data**: Metrics such as [earnings](../e/earnings.md), [revenue](../r/revenue.md), P/E ratio, and [market](../m/market.md) cap. -- **[Technical Indicators](../t/technical_indicators.md)**: Measures derived from price and [volume](../v/volume.md) information, like moving averages and [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI). +- **[Technical Indicators](../t/technical_indicators.md)**: Measures derived from price and [volume](../v/volume.md) information, like moving averages and [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI). - **[Alternative Data](../a/alternative_data.md)**: [Social media sentiment](../s/social_media_sentiment.md), news articles, and other non-traditional data points. For example, services like [Bloomberg](../b/bloomberg.md), [Reuters](../r/reuters.md), and specialized platforms like Koyfin (https://www.koyfin.com) or [Alpha](../a/alpha.md) Vantage (https://www.alphavantage.co) provide extensive datasets that can be used for stock screening. diff --git a/en/pedia/x/x-systems_trading.md b/en/pedia/x/x-systems_trading.md index 75622556..e2ba0ee1 100644 --- a/en/pedia/x/x-systems_trading.md +++ b/en/pedia/x/x-systems_trading.md @@ -19,7 +19,7 @@ X-Systems Trading encompasses a wide [range](../r/range.md) of [trading strategi ### Momentum-Based Strategies -[Momentum](../m/momentum.md) strategies [capitalize](../c/capitalize.md) on the continuation of existing [market](../m/market.md) trends. Algorithms identify assets showing strong performance and predict that these trends [will](../w/will.md) persist in the short term. These strategies often incorporate various [technical indicators](../t/technical_indicators.md) like moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)). +[Momentum](../m/momentum.md) strategies [capitalize](../c/capitalize.md) on the continuation of existing [market](../m/market.md) trends. Algorithms identify assets showing strong performance and predict that these trends [will](../w/will.md) persist in the short term. These strategies often incorporate various [technical indicators](../t/technical_indicators.md) like moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), and MACD (Moving Average Convergence [Divergence](../d/divergence.md)). ### Mean Reversion Strategies diff --git a/en/pedia/x/x-technical_analysis.md b/en/pedia/x/x-technical_analysis.md index 97b1af16..537fb80a 100644 --- a/en/pedia/x/x-technical_analysis.md +++ b/en/pedia/x/x-technical_analysis.md @@ -32,7 +32,7 @@ Moving averages smooth out price data to identify the direction of the [trend](. ### 5. Indicators and Oscillators Indicators and oscillators are mathematical calculations based on price, [volume](../v/volume.md), or [open interest](../o/open_interest.md) data. They are used to identify trends, [momentum](../m/momentum.md), [volatility](../v/volatility.md), and [market](../m/market.md) strength. Some of the most commonly used indicators and oscillators include: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** This [oscillator](../o/oscillator.md) measures the speed and change of price movements. It ranges from 0 to 100 and is used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** This [oscillator](../o/oscillator.md) measures the speed and change of price movements. It ranges from 0 to 100 and is used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD):** This [indicator](../i/indicator.md) shows the relationship between two moving averages and is used to identify changes in the strength, direction, and [duration](../d/duration.md) of a [trend](../t/trend.md). - **[Bollinger Bands](../b/bollinger_bands.md):** These consist of a moving average and two [standard deviation](../s/standard_deviation.md) lines above and below it. They are used to measure [market](../m/market.md) [volatility](../v/volatility.md). - **[Stochastic Oscillator](../s/stochastic_oscillator.md):** This compares the closing price to the [range](../r/range.md) of prices over a specified period, helping to identify [overbought](../o/overbought.md) and [oversold](../o/oversold.md) conditions. diff --git a/en/pedia/x/x-technical_indicators.md b/en/pedia/x/x-technical_indicators.md index 7c8d598c..2403918e 100644 --- a/en/pedia/x/x-technical_indicators.md +++ b/en/pedia/x/x-technical_indicators.md @@ -21,7 +21,7 @@ Where: ## Momentum Indicators ### Relative Strength Index (RSI) -The [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) measures the speed and change of price movements. The RSI oscillates between zero and 100. Traditionally, RSI readings of 70 or above indicate that a [security](../s/security.md) is becoming [overbought](../o/overbought.md), while readings of 30 or below indicate that it is [oversold](../o/oversold.md). +The [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) measures the speed and change of price movements. The RSI oscillates between zero and 100. Traditionally, RSI readings of 70 or above indicate that a [security](../s/security.md) is becoming [overbought](../o/overbought.md), while readings of 30 or below indicate that it is [oversold](../o/oversold.md). ### Moving Average Convergence Divergence (MACD) The MACD is a [trend](../t/trend.md)-following [momentum](../m/momentum.md) [indicator](../i/indicator.md) that shows the relationship between two moving averages of a [security](../s/security.md)’s price. The MACD is calculated by subtracting the 26-period EMA from the 12-period EMA. A nine-period EMA of the MACD known as the "signal line" is then plotted on top of the MACD line, which can function as a trigger for buy and sell signals. @@ -38,7 +38,7 @@ The [Stochastic Oscillator](../s/stochastic_oscillator.md) compares a particular The `%D` line is a 3-day simple moving average of `%K`. ### Commodity Channel Index (CCI) -The [Commodity](../c/commodity.md) Channel [Index](../i/index.md) (CCI) measures the variation of a [security](../s/security.md)'s price from its average price. High positive readings suggest that prices are unusually high compared to their average, whereas low negative readings indicate that prices are unusually low. CCI is calculated with: +The [Commodity](../c/commodity.md) Channel [Index](../i/index_instrument.md) (CCI) measures the variation of a [security](../s/security.md)'s price from its average price. High positive readings suggest that prices are unusually high compared to their average, whereas low negative readings indicate that prices are unusually low. CCI is calculated with: ``` CCI = (Typical Price - Moving Average of Typical Price) / (0.015 * Mean Deviation) diff --git a/en/pedia/x/x-technical_model_analysis.md b/en/pedia/x/x-technical_model_analysis.md index c1f94444..74f10526 100644 --- a/en/pedia/x/x-technical_model_analysis.md +++ b/en/pedia/x/x-technical_model_analysis.md @@ -16,7 +16,7 @@ X-Technical Model Analysis refers to the use of complex, algorithm-driven method [Technical indicators](../t/technical_indicators.md) are [statistics](../s/statistics.md) based on price, [volume](../v/volume.md), or [open interest](../o/open_interest.md) data that aim to forecast future price changes. Common indicators include: 1. **Moving Averages:** Both Simple (SMA) and Exponential (EMA) are used to smooth out price data. -2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** Measures the speed and change of price movements. +2. **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** Measures the speed and change of price movements. 3. **MACD (Moving Average Convergence [Divergence](../d/divergence.md)):** Shows the relationship between two moving averages of prices. #### Backtesting diff --git a/en/pedia/x/x-theory_application.md b/en/pedia/x/x-theory_application.md index 1ffae97a..776fa48f 100644 --- a/en/pedia/x/x-theory_application.md +++ b/en/pedia/x/x-theory_application.md @@ -29,7 +29,7 @@ These models are trained on vast amounts of historical trading data to forecast Statistical [arbitrage](../a/arbitrage.md) strategies involve exploiting pricing inefficiencies between correlated securities. This is achieved by: - **Pair Trading**: Identifying pairs of [stocks](../s/stock.md) that historically move together and implementing [trading strategies](../t/trading_strategies.md) when they diverge. -- **[Index](../i/index.md) [Arbitrage](../a/arbitrage.md)**: Exploiting price discrepancies between [index futures](../i/index_futures.md) and the [underlying](../u/underlying.md) [stocks](../s/stock.md) in the [index](../i/index.md). +- **[Index](../i/index_instrument.md) [Arbitrage](../a/arbitrage.md)**: Exploiting price discrepancies between [index futures](../i/index_futures.md) and the [underlying](../u/underlying.md) [stocks](../s/stock.md) in the [index](../i/index_instrument.md). - **Cointegration**: Utilizing statistical tests to find securities with a common stochastic drift, thus providing a [basis](../b/basis.md) for [mean reversion](../m/mean_reversion.md) strategies. #### Quantitative Strategies diff --git a/en/pedia/x/x-trend_following.md b/en/pedia/x/x-trend_following.md index d1cceb2e..9902ce2c 100644 --- a/en/pedia/x/x-trend_following.md +++ b/en/pedia/x/x-trend_following.md @@ -4,7 +4,7 @@ [Trend following](../t/trend_following.md) is a popular [trading strategy](../t/trading_strategy.md) that attempts to capture gains through the analysis of an [asset](../a/asset.md)'s [momentum](../m/momentum.md) in a particular direction. X-[Trend Following](../t/trend_following.md) is an advanced variant of this strategy that incorporates complex algorithms, machine learning models, and other sophisticated techniques to enhance the predictive capabilities and profitability of [trend](../t/trend.md)-following systems. ### The Basics of Trend Following -Traditional [trend following](../t/trend_following.md) revolves around the concept of buying an [asset](../a/asset.md) when its price is moving upwards and selling it when the price is moving downwards. It is based on the hypothesis that assets which have been trending in a certain direction for a period are more likely to continue moving in that direction. This strategy relies on various tools and indicators such as moving averages, moving average convergence [divergence](../d/divergence.md) (MACD), and [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI). +Traditional [trend following](../t/trend_following.md) revolves around the concept of buying an [asset](../a/asset.md) when its price is moving upwards and selling it when the price is moving downwards. It is based on the hypothesis that assets which have been trending in a certain direction for a period are more likely to continue moving in that direction. This strategy relies on various tools and indicators such as moving averages, moving average convergence [divergence](../d/divergence.md) (MACD), and [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI). ### Evolution to X-Trend Following X-[Trend Following](../t/trend_following.md) goes beyond traditional methods by leveraging technological advancements and [data science](../d/data_science_in_trading.md) to refine the process: diff --git a/en/pedia/x/x-trend_indicators.md b/en/pedia/x/x-trend_indicators.md index d341671f..234baf36 100644 --- a/en/pedia/x/x-trend_indicators.md +++ b/en/pedia/x/x-trend_indicators.md @@ -20,7 +20,7 @@ X-[Trend Indicators](../t/trend_indicators.md) are designed to identify trends, [Momentum indicators](../m/momentum_indicators.md) assess the speed or velocity of price movements. Popular [momentum indicators](../m/momentum_indicators.md) used in the X-[Trend](../t/trend.md) suite include: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** Measures the speed and change of price movements, indicating [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** Measures the speed and change of price movements, indicating [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **[Stochastic Oscillator](../s/stochastic_oscillator.md):** Compares a particular closing price of a [security](../s/security.md) to a [range](../r/range.md) of its prices over a certain period. ### 3. **Volume Indicators** @@ -35,7 +35,7 @@ X-[Trend Indicators](../t/trend_indicators.md) are designed to identify trends, These indicators measure the rate of price change over a given period. Commonly used [volatility](../v/volatility.md) indicators are: - **[Average True Range](../a/average_true_range_(atr).md) (ATR):** Provides signals to confirm the [volatility](../v/volatility.md) of a [market price](../m/market_price.md). -- **[Volatility](../v/volatility.md) [Index](../i/index.md) (VIX):** Measures the [market](../m/market.md)'s expectation of near-term [volatility](../v/volatility.md). +- **[Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX):** Measures the [market](../m/market.md)'s expectation of near-term [volatility](../v/volatility.md). ## Implementing X-Trend Indicators diff --git a/en/pedia/x/x-trend_reversal.md b/en/pedia/x/x-trend_reversal.md index 6d428488..2f9806ab 100644 --- a/en/pedia/x/x-trend_reversal.md +++ b/en/pedia/x/x-trend_reversal.md @@ -10,7 +10,7 @@ The X-[Trend Reversal](../t/trend_reversal.md) is an advanced trading technique 1. **[Reversal Indicators](../r/reversal_indicators.md)**: The foundation of X-[Trend Reversal](../t/trend_reversal.md) lies in recognizing various [technical indicators](../t/technical_indicators.md) that signal a potential change in [trend](../t/trend.md). Common indicators include: - **Moving Average Convergence [Divergence](../d/divergence.md) (MACD)**: A popular [indicator](../i/indicator.md) that helps detect changes in the strength, direction, [momentum](../m/momentum.md), and [duration](../d/duration.md) of a [trend](../t/trend.md). - - **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: Measures the speed and change of price movements and is used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. + - **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: Measures the speed and change of price movements and is used to identify [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **[Bollinger Bands](../b/bollinger_bands.md)**: Provide a relative definition of high and low prices of a [market](../m/market.md), and their contraction and [expansion](../e/expansion.md) can indicate potential reversals. 2. **[Pattern Recognition](../p/pattern_recognition.md)**: [Pattern recognition](../p/pattern_recognition.md) algorithms identify specific price formations like head and shoulders, double tops/bottoms, and wedges that typically precede price reversals. diff --git a/en/pedia/x/x-volatility_index.md b/en/pedia/x/x-volatility_index.md index 9f19c5ed..cf212092 100644 --- a/en/pedia/x/x-volatility_index.md +++ b/en/pedia/x/x-volatility_index.md @@ -1,10 +1,10 @@ # X-Volatility Index (XVIX) -In the realm of [algorithmic trading](../a/algorithmic_trading.md), the X-[Volatility](../v/volatility.md) [Index](../i/index.md) (XVIX) is a crucial metric that serves as a barometer for gauging the [market](../m/market.md)'s expectation of [volatility](../v/volatility.md) over a specified period. With its origins deeply rooted in [financial engineering](../f/financial_engineering.md) and [quantitative analysis](../q/quantitative_analysis.md), the XVIX is an advanced [indicator](../i/indicator.md) that algorithmic traders [leverage](../l/leverage.md) to make more informed decisions, balance portfolios, and mitigate risks. This comprehensive guide delves into what the X-[Volatility](../v/volatility.md) [Index](../i/index.md) is, its importance in the [financial markets](../f/financial_market.md), how it is calculated, and its applications in [algorithmic trading](../a/algorithmic_trading.md). +In the realm of [algorithmic trading](../a/algorithmic_trading.md), the X-[Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (XVIX) is a crucial metric that serves as a barometer for gauging the [market](../m/market.md)'s expectation of [volatility](../v/volatility.md) over a specified period. With its origins deeply rooted in [financial engineering](../f/financial_engineering.md) and [quantitative analysis](../q/quantitative_analysis.md), the XVIX is an advanced [indicator](../i/indicator.md) that algorithmic traders [leverage](../l/leverage.md) to make more informed decisions, balance portfolios, and mitigate risks. This comprehensive guide delves into what the X-[Volatility](../v/volatility.md) [Index](../i/index_instrument.md) is, its importance in the [financial markets](../f/financial_market.md), how it is calculated, and its applications in [algorithmic trading](../a/algorithmic_trading.md). ## What is the X-Volatility Index (XVIX)? -The X-[Volatility](../v/volatility.md) [Index](../i/index.md), commonly abbreviated as XVIX, is a synthetic [volatility](../v/volatility.md) [indicator](../i/indicator.md) designed to capture the implied [volatility](../v/volatility.md) of a [financial asset](../f/financial_asset.md) or [market](../m/market.md). Unlike traditional [volatility](../v/volatility.md) indices like the CBOE [Volatility](../v/volatility.md) [Index](../i/index.md) (VIX), which measure implied [volatility](../v/volatility.md) based on S&P 500 [index options](../i/index_options.md), the XVIX can be adapted to analyze various financial instruments, including [stocks](../s/stock.md), commodities, forex, and more. +The X-[Volatility](../v/volatility.md) [Index](../i/index_instrument.md), commonly abbreviated as XVIX, is a synthetic [volatility](../v/volatility.md) [indicator](../i/indicator.md) designed to capture the implied [volatility](../v/volatility.md) of a [financial asset](../f/financial_asset.md) or [market](../m/market.md). Unlike traditional [volatility](../v/volatility.md) indices like the CBOE [Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (VIX), which measure implied [volatility](../v/volatility.md) based on S&P 500 [index options](../i/index_options.md), the XVIX can be adapted to analyze various financial instruments, including [stocks](../s/stock.md), commodities, forex, and more. Implied [volatility](../v/volatility.md) represents the [market](../m/market.md)'s forecast of a likely movement in an [asset](../a/asset.md)'s price and is often derived from the prices of [options](../o/options.md) on the [underlying asset](../u/underlying_asset.md). The XVIX, therefore, serves as a forward-looking metric that reflects traders' sentiments and expectations regarding future price fluctuations. @@ -24,7 +24,7 @@ The calculation of the XVIX involves several steps. While the specific formula c 2. **[Maturity](../m/maturity.md) Selection:** Choose [options](../o/options.md) with different maturities, typically focusing on short-term (30 days) to capture the most relevant implied [volatility](../v/volatility.md). 3. **Midpoint Calculation:** Calculate the midpoint between the [bid and ask](../b/bid_and_ask.md) prices of each option to obtain a more accurate reflection of the [market](../m/market.md)'s [valuation](../v/valuation.md). 4. **[Volatility Surface](../v/volatility_surface.md):** Construct a [volatility surface](../v/volatility_surface.md) by plotting the implied volatilities against strike prices and expirations. This surface helps in understanding how [volatility](../v/volatility.md) varies with different [options](../o/options.md) and maturities. -5. **[Aggregation](../a/aggregation.md):** Aggregate the implied volatilities to derive a comprehensive [volatility](../v/volatility.md) [index](../i/index.md). This often involves using weighting schemes based on the option's [delta](../d/delta.md) or other factors to reflect the expected price movements better. +5. **[Aggregation](../a/aggregation.md):** Aggregate the implied volatilities to derive a comprehensive [volatility](../v/volatility.md) [index](../i/index_instrument.md). This often involves using weighting schemes based on the option's [delta](../d/delta.md) or other factors to reflect the expected price movements better. ## Algorithms and XVIX @@ -36,11 +36,11 @@ Algorithmic traders utilize the XVIX in various ways to enhance their [trading s ## Practical Applications of XVIX -The X-[Volatility](../v/volatility.md) [Index](../i/index.md) has diverse applications in the [financial markets](../f/financial_market.md), some of which include: +The X-[Volatility](../v/volatility.md) [Index](../i/index_instrument.md) has diverse applications in the [financial markets](../f/financial_market.md), some of which include: - **[Market Forecasting](../m/market_forecasting.md):** Traders and analysts use the XVIX to forecast [market](../m/market.md) movements. A high XVIX usually precedes [market](../m/market.md) turbulence, while a low XVIX suggests a more stable [market](../m/market.md) environment. - **[Portfolio Optimization](../p/portfolio_optimization.md):** By incorporating the XVIX into [portfolio optimization](../p/portfolio_optimization.md) models, traders can achieve a balanced [risk](../r/risk.md)-[return](../r/return.md) profile. The XVIX helps in identifying which assets might provide better protection during high [volatility](../v/volatility.md) periods. -- **Event-Driven Strategies:** The XVIX is crucial for traders employing event-driven strategies, such as trading around [earnings announcements](../e/earnings_announcements.md) or [geopolitical events](../g/geopolitical_events.md). The [index](../i/index.md) provides insights into how much [volatility](../v/volatility.md) the [market](../m/market.md) expects around these events. +- **Event-Driven Strategies:** The XVIX is crucial for traders employing event-driven strategies, such as trading around [earnings announcements](../e/earnings_announcements.md) or [geopolitical events](../g/geopolitical_events.md). The [index](../i/index_instrument.md) provides insights into how much [volatility](../v/volatility.md) the [market](../m/market.md) expects around these events. - **[Options](../o/options.md) Pricing:** The XVIX is also instrumental in [options](../o/options.md) pricing models. It helps in setting realistic prices for [options](../o/options.md) premiums, ensuring that traders do not overpay or underprice their [derivatives](../d/derivatives.md). - **[Stress Testing](../s/stress_testing_in_trading.md):** Financial institutions use the XVIX for [stress testing](../s/stress_testing_in_trading.md) their portfolios. By simulating scenarios where [volatility](../v/volatility.md) spikes, they can assess the potential impact on their [holdings](../h/holdings.md) and take precautionary measures. @@ -71,4 +71,4 @@ To implement the XVIX in [trading algorithms](../t/trading_algorithms.md), trade ## Conclusion -The X-[Volatility](../v/volatility.md) [Index](../i/index.md) (XVIX) is an indispensable tool in the arsenal of algorithmic traders, [offering](../o/offering.md) deep insights into [market](../m/market.md) expectations of [volatility](../v/volatility.md). By understanding and leveraging the XVIX, traders can enhance their [risk management](../r/risk_management.md), optimize portfolios, and develop more sophisticated [trading strategies](../t/trading_strategies.md). As [financial markets](../f/financial_market.md) continue to evolve, the role of advanced [volatility](../v/volatility.md) indices like the XVIX [will](../w/will.md) only grow in significance, making it essential for traders to stay informed and adept at utilizing such innovative metrics. \ No newline at end of file +The X-[Volatility](../v/volatility.md) [Index](../i/index_instrument.md) (XVIX) is an indispensable tool in the arsenal of algorithmic traders, [offering](../o/offering.md) deep insights into [market](../m/market.md) expectations of [volatility](../v/volatility.md). By understanding and leveraging the XVIX, traders can enhance their [risk management](../r/risk_management.md), optimize portfolios, and develop more sophisticated [trading strategies](../t/trading_strategies.md). As [financial markets](../f/financial_market.md) continue to evolve, the role of advanced [volatility](../v/volatility.md) indices like the XVIX [will](../w/will.md) only grow in significance, making it essential for traders to stay informed and adept at utilizing such innovative metrics. \ No newline at end of file diff --git a/en/pedia/x/x-volatility_risk.md b/en/pedia/x/x-volatility_risk.md index c1783f9a..bd29a4f7 100644 --- a/en/pedia/x/x-volatility_risk.md +++ b/en/pedia/x/x-volatility_risk.md @@ -12,7 +12,7 @@ X-[Volatility Risk](../v/volatility_risk.md) can be viewed through various lense 1. **Inter-[Asset](../a/asset.md) [Volatility Risk](../v/volatility_risk.md)**: This [risk](../r/risk.md) arises when there is a [divergence](../d/divergence.md) in [volatility](../v/volatility.md) levels between different [asset](../a/asset.md) classes, such as [stocks](../s/stock.md), bonds, and commodities. For instance, if the [stock market](../s/stock_market.md) experiences a surge in [volatility](../v/volatility.md) while the [bond market](../b/bond_market.md) remains relatively stable, a [trading strategy](../t/trading_strategy.md) that involves both [asset](../a/asset.md) classes may face unexpected performance challenges. -2. **Intra-[Asset](../a/asset.md) [Volatility Risk](../v/volatility_risk.md)**: This pertains to the [risk](../r/risk.md) within a single [asset class](../a/asset_class.md), where different securities within that class exhibit varying levels of [volatility](../v/volatility.md). For example, within the [equity market](../e/equity_market.md), individual [stocks](../s/stock.md) might show different [volatility](../v/volatility.md) patterns compared to the overall [index](../i/index.md). +2. **Intra-[Asset](../a/asset.md) [Volatility Risk](../v/volatility_risk.md)**: This pertains to the [risk](../r/risk.md) within a single [asset class](../a/asset_class.md), where different securities within that class exhibit varying levels of [volatility](../v/volatility.md). For example, within the [equity market](../e/equity_market.md), individual [stocks](../s/stock.md) might show different [volatility](../v/volatility.md) patterns compared to the overall [index](../i/index_instrument.md). 3. **Cross-[Market](../m/market.md) [Volatility Risk](../v/volatility_risk.md)**: This involves [volatility](../v/volatility.md) across different geographical markets. For instance, a [trading strategy](../t/trading_strategy.md) that operates in both the U.S. and European markets may face risks if [volatility](../v/volatility.md) levels in these markets do not align. diff --git a/en/pedia/x/x-volume_oscillator.md b/en/pedia/x/x-volume_oscillator.md index 4059e052..b13393b0 100644 --- a/en/pedia/x/x-volume_oscillator.md +++ b/en/pedia/x/x-volume_oscillator.md @@ -69,7 +69,7 @@ The X-[Volume Oscillator](../v/volume_oscillator.md) is often used in conjunctio - **Moving Averages:** Combining XVO with moving averages of price can help traders filter out [false signals](../f/false_signals_in_trading.md) and confirm trends more accurately. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** Traders can use the RSI alongside the XVO to gauge [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions and identify potential [reversal](../r/reversal.md) points. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** Traders can use the RSI alongside the XVO to gauge [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions and identify potential [reversal](../r/reversal.md) points. - **MACD:** The Moving Average Convergence [Divergence](../d/divergence.md) (MACD) [indicator](../i/indicator.md) can be used with the XVO to identify changes in [momentum](../m/momentum.md) and provide more [robust](../r/robust.md) [trading signals](../t/trading_signals.md). diff --git a/en/pedia/x/x-y_plots_in_trading.md b/en/pedia/x/x-y_plots_in_trading.md index 4984ee11..1d70f461 100644 --- a/en/pedia/x/x-y_plots_in_trading.md +++ b/en/pedia/x/x-y_plots_in_trading.md @@ -27,7 +27,7 @@ X-Y plots are extensively used in algotrading to analyze the [correlation](../c/ Regression lines can be drawn on X-Y plots to model the relationship between variables. This is particularly useful in [predictive modeling](../p/predictive_modeling.md) where historical data is used to forecast future trends. ### Visualizing Technical Indicators -[Technical indicators](../t/technical_indicators.md) such as the Moving Average Convergence [Divergence](../d/divergence.md) (MACD) or [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI) can be plotted against price data to identify potential buy or sell signals. +[Technical indicators](../t/technical_indicators.md) such as the Moving Average Convergence [Divergence](../d/divergence.md) (MACD) or [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI) can be plotted against price data to identify potential buy or sell signals. ### Anomaly Detection Outliers in trading data can signify important events like sudden [market](../m/market.md) movements or errors in data feeds. X-Y plots help in visualizing these anomalies quickly and effectively. diff --git a/en/pedia/x/xrt.md b/en/pedia/x/xrt.md index 8f2e8eb0..e52bd4cd 100644 --- a/en/pedia/x/xrt.md +++ b/en/pedia/x/xrt.md @@ -1,15 +1,15 @@ # XRT ## Introduction -The SPDR S&P Retail ETF (XRT) is one of the more widely followed and traded [exchange](../e/exchange.md)-traded funds (ETFs) in the [financial markets](../f/financial_market.md). This ETF offers investors exposure to the retail sector by focusing on companies [listed](../l/listed.md) in the S&P Retail Select [Industry](../i/industry.md) [Index](../i/index.md), which is designed to measure the performance of the retail sub-[industry](../i/industry.md) of the S&P Total [Market Index](../m/market_index.md). This document [will](../w/will.md) [offer](../o/offer.md) an in-depth look at XRT by exploring its defining characteristics, historical performance, how it fits into the broader financial landscape, and its importance for traders and investors, particularly those involved in [algorithmic trading](../a/accountability.md) or fintech. +The SPDR S&P Retail ETF (XRT) is one of the more widely followed and traded [exchange](../e/exchange.md)-traded funds (ETFs) in the [financial markets](../f/financial_market.md). This ETF offers investors exposure to the retail sector by focusing on companies [listed](../l/listed.md) in the S&P Retail Select [Industry](../i/industry.md) [Index](../i/index_instrument.md), which is designed to measure the performance of the retail sub-[industry](../i/industry.md) of the S&P Total [Market Index](../m/market_index.md). This document [will](../w/will.md) [offer](../o/offer.md) an in-depth look at XRT by exploring its defining characteristics, historical performance, how it fits into the broader financial landscape, and its importance for traders and investors, particularly those involved in [algorithmic trading](../a/accountability.md) or fintech. ## What is XRT? ### ETF Overview -The SPDR S&P Retail ETF is managed by State Street Global Advisors and seeks to provide investment results that, before fees and expenses, correspond generally to the [total return](../t/total_return.md) performance of the S&P Retail Select [Industry](../i/industry.md) [Index](../i/index.md). The ETF trades under the [ticker symbol](../t/ticker_symbol.md) XRT on the [NYSE Arca](../n/nyse_arca.md) [exchange](../e/exchange.md). As of the latest data, it has an [expense ratio](../e/expense_ratio.md) of approximately 0.35%. +The SPDR S&P Retail ETF is managed by State Street Global Advisors and seeks to provide investment results that, before fees and expenses, correspond generally to the [total return](../t/total_return.md) performance of the S&P Retail Select [Industry](../i/industry.md) [Index](../i/index_instrument.md). The ETF trades under the [ticker symbol](../t/ticker_symbol.md) XRT on the [NYSE Arca](../n/nyse_arca.md) [exchange](../e/exchange.md). As of the latest data, it has an [expense ratio](../e/expense_ratio.md) of approximately 0.35%. ### Underlying Index -The [underlying](../u/underlying.md) [index](../i/index.md) comprises a diverse set of retail-related [stocks](../s/stock.md), covering various segments such as specialty retail, apparel retail, automotive retail, and more. This [diversification](../d/diversification.md) provides investors with broad exposure to the U.S. retail sector, making it a valuable tool for those looking to [capitalize](../c/capitalize.md) on trends within the retail space. +The [underlying](../u/underlying.md) [index](../i/index_instrument.md) comprises a diverse set of retail-related [stocks](../s/stock.md), covering various segments such as specialty retail, apparel retail, automotive retail, and more. This [diversification](../d/diversification.md) provides investors with broad exposure to the U.S. retail sector, making it a valuable tool for those looking to [capitalize](../c/capitalize.md) on trends within the retail space. ## Historical Performance diff --git a/en/pedia/y/year's_maximum_pensionable_earnings_(ympe).md b/en/pedia/y/year's_maximum_pensionable_earnings_(ympe).md index 6b5576c2..0da6cc2c 100644 --- a/en/pedia/y/year's_maximum_pensionable_earnings_(ympe).md +++ b/en/pedia/y/year's_maximum_pensionable_earnings_(ympe).md @@ -12,7 +12,7 @@ For example, if the YMPE for a given year is CAD 61,600, any annual salary or wa The Government of Canada adjusts the YMPE each year according to the growth in average wages and salaries in the country. This ensures that the CPP contributions are in line with prevailing [economic conditions](../e/economic_conditions.md). The formula for determining YMPE takes into account: -- The average wage [index](../i/index.md) (AWI) +- The average wage [index](../i/index_instrument.md) (AWI) - Historical wage data - Economic projections diff --git a/en/pedia/y/year_to_date_(ytd).md b/en/pedia/y/year_to_date_(ytd).md index e83d1924..b6d6558e 100644 --- a/en/pedia/y/year_to_date_(ytd).md +++ b/en/pedia/y/year_to_date_(ytd).md @@ -32,7 +32,7 @@ YTD figures are essential for identifying trends. For example, if a company's [r ### Performance Comparison -Investors and analysts use YTD data to compare the performance of different investments. For instance, they might compare the YTD returns of a stock to a sector average or an [index](../i/index.md) like the S&P 500. +Investors and analysts use YTD data to compare the performance of different investments. For instance, they might compare the YTD returns of a stock to a sector average or an [index](../i/index_instrument.md) like the S&P 500. ### Forecasting diff --git a/en/pedia/y/yen_dollar_trading.md b/en/pedia/y/yen_dollar_trading.md index e4f88f31..3f0e466d 100644 --- a/en/pedia/y/yen_dollar_trading.md +++ b/en/pedia/y/yen_dollar_trading.md @@ -25,7 +25,7 @@ A wide [range](../r/range.md) of [economic indicators](../e/economic_indicators. [Technical analysis](../t/technical_analysis.md) relies on historical price data and trading volumes to predict future price movements. Common tools used in [technical analysis](../t/technical_analysis.md) of the USD/JPY pair include: - **Moving Averages**: These smooth out price data to create a single flowing line, making it easier to identify trends. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: This [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) measures the speed and change of price movements. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: This [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) measures the speed and change of price movements. - **[Fibonacci Retracement](../f/fibonacci_retracement.md) Levels**: These horizontal lines indicate areas of support or resistance at the key Fibonacci levels before the price continues in the original direction. ### Algorithmic Trading diff --git a/en/pedia/y/yen_futures_trading.md b/en/pedia/y/yen_futures_trading.md index f3372c61..edada53c 100644 --- a/en/pedia/y/yen_futures_trading.md +++ b/en/pedia/y/yen_futures_trading.md @@ -42,7 +42,7 @@ A standard Yen [futures contract](../f/futures_contract.md) on the CME represent ### Developing a Trading Strategy -Successful Yen [futures](../f/futures.md) trading requires a well-thought-out strategy. Traders need to analyze technical and fundamental factors, such as economic data releases, [interest rate](../i/interest_rate.md) differentials, [geopolitical events](../g/geopolitical_events.md), and [market sentiment](../m/market_sentiment.md). Common [technical analysis](../t/technical_analysis.md) tools include moving averages, [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI), and Fibonacci retracements. +Successful Yen [futures](../f/futures.md) trading requires a well-thought-out strategy. Traders need to analyze technical and fundamental factors, such as economic data releases, [interest rate](../i/interest_rate.md) differentials, [geopolitical events](../g/geopolitical_events.md), and [market sentiment](../m/market_sentiment.md). Common [technical analysis](../t/technical_analysis.md) tools include moving averages, [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI), and Fibonacci retracements. ### Risk Management diff --git a/en/pedia/y/yen_pair_trading.md b/en/pedia/y/yen_pair_trading.md index ba9bb76d..28fabc1d 100644 --- a/en/pedia/y/yen_pair_trading.md +++ b/en/pedia/y/yen_pair_trading.md @@ -19,7 +19,7 @@ Forex trading frequently involves [leverage](../l/leverage.md), which allows tra A [carry trade](../c/carry_trade.md) strategy involves borrowing funds in a [currency](../c/currency.md) with a low-[interest rate](../i/interest_rate.md) (such as the Japanese yen) and using those funds to invest in a [currency](../c/currency.md) with a higher [interest rate](../i/interest_rate.md) (such as the Australian or New Zealand dollar). The goal is to capture the 'carry', or the [interest rate](../i/interest_rate.md) differential between the two currencies. This strategy can be [lucrative](../l/lucrative.md) in stable [market](../m/market.md) conditions but risky during [market](../m/market.md) [volatility](../v/volatility.md), as abrupt changes in [currency](../c/currency.md) values can lead to significant losses. ### Technical Analysis -[Technical analysis](../t/technical_analysis.md) involves studying historical price charts and using [technical indicators](../t/technical_indicators.md) to predict future price movements. Common [technical indicators](../t/technical_indicators.md) used in yen pair trading include moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI), [Fibonacci retracement](../f/fibonacci_retracement.md) levels, and [Bollinger Bands](../b/bollinger_bands.md). Traders often look for patterns such as head and shoulders, double tops and bottoms, and flag and [pennant](../p/pennant.md) formations to make trading decisions. +[Technical analysis](../t/technical_analysis.md) involves studying historical price charts and using [technical indicators](../t/technical_indicators.md) to predict future price movements. Common [technical indicators](../t/technical_indicators.md) used in yen pair trading include moving averages, [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI), [Fibonacci retracement](../f/fibonacci_retracement.md) levels, and [Bollinger Bands](../b/bollinger_bands.md). Traders often look for patterns such as head and shoulders, double tops and bottoms, and flag and [pennant](../p/pennant.md) formations to make trading decisions. ### Fundamental Analysis [Fundamental analysis](../f/fundamental_analysis.md) involves evaluating [economic indicators](../e/economic_indicators.md), [interest](../i/interest.md) rates, and [geopolitical events](../g/geopolitical_events.md) that impact [currency](../c/currency.md) values. Key economic data points for yen pair traders include the [Bank](../b/bank.md) of Japan (BoJ) [interest rate](../i/interest_rate.md) decisions, Japan's Gross Domestic Product (GDP) growth, [inflation](../i/inflation.md) rates, [trade](../t/trade.md) balances, and employment figures. Understanding how these factors influence the yen's [value](../v/value.md) against other currencies can [offer](../o/offer.md) valuable insights for long-term trading positions. diff --git a/en/pedia/y/yen_spot_trading.md b/en/pedia/y/yen_spot_trading.md index 4ada70bf..6fe9722a 100644 --- a/en/pedia/y/yen_spot_trading.md +++ b/en/pedia/y/yen_spot_trading.md @@ -18,7 +18,7 @@ When traders engage in yen spot trading, they are speculating on the future move 1. **Gross Domestic Product (GDP)**: The overall economic performance of Japan has a direct impact on the yen’s [value](../v/value.md). A growing GDP generally strengthens the yen. -2. **[Inflation](../i/inflation.md) Rates**: Japan’s Consumer Price [Index](../i/index.md) (CPI) and Producer Price [Index](../i/index.md) (PPI) are crucial indicators. Higher [inflation](../i/inflation.md) generally weakens a [currency](../c/currency.md) because it reduces [purchasing power](../p/purchasing_power.md). +2. **[Inflation](../i/inflation.md) Rates**: Japan’s Consumer Price [Index](../i/index_instrument.md) (CPI) and Producer Price [Index](../i/index_instrument.md) (PPI) are crucial indicators. Higher [inflation](../i/inflation.md) generally weakens a [currency](../c/currency.md) because it reduces [purchasing power](../p/purchasing_power.md). 3. **[Interest](../i/interest.md) Rates**: The [Bank](../b/bank.md) of Japan (BoJ) controls the [interest](../i/interest.md) rates, which in turn influences the yen’s [value](../v/value.md). Higher [interest](../i/interest.md) rates attract foreign [capital](../c/capital.md), leading to a stronger yen. @@ -61,7 +61,7 @@ When traders engage in yen spot trading, they are speculating on the future move [Technical analysis](../t/technical_analysis.md) relies on historical price data and statistical indicators to forecast future price movements. Popular technical strategies include: - **Moving Averages**: Traders use various types of moving averages (simple, exponential) to smooth out price data and identify trends. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: This [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) measures the speed and change of price movements to predict [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: This [momentum](../m/momentum.md) [oscillator](../o/oscillator.md) measures the speed and change of price movements to predict [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **[Fibonacci Retracement](../f/fibonacci_retracement.md) Levels**: These are used to predict potential [support and resistance](../s/support_and_resistance.md) levels based on past price movements. ## Risk Management in Yen Spot Trading diff --git a/en/pedia/y/yen_trading_strategies.md b/en/pedia/y/yen_trading_strategies.md index d500b172..5890af09 100644 --- a/en/pedia/y/yen_trading_strategies.md +++ b/en/pedia/y/yen_trading_strategies.md @@ -21,7 +21,7 @@ One of the most prominent strategies involving the Yen is the "[carry trade](../ For traders using [fundamental analysis](../f/fundamental_analysis.md), several [economic indicators](../e/economic_indicators.md) are crucial when trading the Yen. These include: - **Gross Domestic Product (GDP):** Measures the economic output and growth. -- **[Inflation](../i/inflation.md) Rates:** Monitored through the Consumer Price [Index](../i/index.md) (CPI). +- **[Inflation](../i/inflation.md) Rates:** Monitored through the Consumer Price [Index](../i/index_instrument.md) (CPI). - **Employment Data:** [Unemployment](../u/unemployment.md) rates and job creation numbers. - **[Monetary Policy](../m/monetary_policy.md):** [Bank](../b/bank.md) of Japan’s [interest](../i/interest.md) rates and [quantitative easing](../q/quantitative_easing.md) measures. - **[Trade](../t/trade.md) Balance:** Japan's exports vs. imports. @@ -37,7 +37,7 @@ Geopolitical stability in the Asia-Pacific region, [trade](../t/trade.md) relati Technical analysts rely on historical price data to predict future movements. Common tools include: - **Moving Averages:** Simple and Exponential Moving Averages (SMA and EMA). -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** Measures the velocity and magnitude of directional price movements. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** Measures the velocity and magnitude of directional price movements. - **[Bollinger Bands](../b/bollinger_bands.md):** Indicates [volatility](../v/volatility.md) and potential [breakout](../b/breakout.md) points. - **[Fibonacci Retracement](../f/fibonacci_retracement.md) Levels:** Used to identify potential [support and resistance](../s/support_and_resistance.md) levels. diff --git a/en/pedia/y/yield-risk_strategies.md b/en/pedia/y/yield-risk_strategies.md index e4d8e67e..77474817 100644 --- a/en/pedia/y/yield-risk_strategies.md +++ b/en/pedia/y/yield-risk_strategies.md @@ -57,7 +57,7 @@ Develop a [momentum](../m/momentum.md)-based trading algorithm that improves [yi 1. **Data Collection**: Retrieve historical price data for a set of assets. -2. **Feature Engineering**: Create [momentum indicators](../m/momentum_indicators.md) like Moving Average Convergence [Divergence](../d/divergence.md) (MACD) and [Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI). +2. **Feature Engineering**: Create [momentum indicators](../m/momentum_indicators.md) like Moving Average Convergence [Divergence](../d/divergence.md) (MACD) and [Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI). 3. **Model Development**: Define the [trading rules](../t/trading_rules.md) based on [momentum indicators](../m/momentum_indicators.md), e.g., buy when MACD crosses above zero and sell when RSI exceeds 70. diff --git a/en/pedia/y/yield_analysis_methods.md b/en/pedia/y/yield_analysis_methods.md index 5cfb0b83..ed8f578b 100644 --- a/en/pedia/y/yield_analysis_methods.md +++ b/en/pedia/y/yield_analysis_methods.md @@ -64,7 +64,7 @@ Effective [risk management](../r/risk_management.md) is crucial for maintaining Advanced metrics provide deeper insights into the [yield analysis](../y/yield_analysis.md) of [trading algorithms](../t/trading_algorithms.md): -- **[Alpha](../a/alpha.md):** Measures the [excess return](../e/excess_return.md) generated by a strategy over its [benchmark](../b/benchmark.md) [index](../i/index.md). +- **[Alpha](../a/alpha.md):** Measures the [excess return](../e/excess_return.md) generated by a strategy over its [benchmark](../b/benchmark.md) [index](../i/index_instrument.md). - **[Beta](../b/beta.md):** Indicates a strategy's sensitivity to [market](../m/market.md) movements. diff --git a/en/pedia/y/yield_analysis_techniques.md b/en/pedia/y/yield_analysis_techniques.md index 189d4bb7..dd87892b 100644 --- a/en/pedia/y/yield_analysis_techniques.md +++ b/en/pedia/y/yield_analysis_techniques.md @@ -95,7 +95,7 @@ The [Sharpe Ratio](../s/sharpe_ratio.md) measures the [risk-adjusted return](../ - **Analysis Tools**: - Python's SciPy and Statsmodels libraries. - - R's PerformanceAnalytics package (https://cran.r-project.org/web/packages/PerformanceAnalytics/[index](../i/index.md).html) + - R's PerformanceAnalytics package (https://cran.r-project.org/web/packages/PerformanceAnalytics/[index](../i/index_instrument.md).html) - Excel-based [financial analysis](../f/financial_analysis.md) tools. ## 6. Profitability Map (Heatmap) Analysis @@ -135,7 +135,7 @@ A profitability map, also known as [heatmap](../h/heatmap.md) analysis, visualiz - **Tools**: - Python’s scikit-learn and Statsmodels libraries. - - R's FactorAnalytics package (https://cran.r-project.org/web/packages/FactorAnalytics/[index](../i/index.md).html) + - R's FactorAnalytics package (https://cran.r-project.org/web/packages/FactorAnalytics/[index](../i/index_instrument.md).html) - [Financial analysis](../f/financial_analysis.md) software such as EViews (http://www.eviews.com/) ## 8. Scenario Analysis @@ -194,11 +194,11 @@ A profitability map, also known as [heatmap](../h/heatmap.md) analysis, visualiz - **Tools**: - Python's [Sensitivity Analysis](../s/sensitivity_analysis.md) libraries such as SALib. - MATLAB’s [Sensitivity Analysis](../s/sensitivity_analysis.md) toolkit (https://www.mathworks.com/discovery/sensitivity-analysis.html) - - R’s sensitivity package (https://cran.r-project.org/web/packages/sensitivity/[index](../i/index.md).html) + - R’s sensitivity package (https://cran.r-project.org/web/packages/sensitivity/[index](../i/index_instrument.md).html) ## 11. Alpha and Beta Analysis -[Alpha](../a/alpha.md) measures the [excess return](../e/excess_return.md) of the strategy relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index.md), whereas [Beta](../b/beta.md) measures the sensitivity of the strategy’s returns to [market](../m/market.md) movements. +[Alpha](../a/alpha.md) measures the [excess return](../e/excess_return.md) of the strategy relative to the [return](../r/return.md) of a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), whereas [Beta](../b/beta.md) measures the sensitivity of the strategy’s returns to [market](../m/market.md) movements. - **Advantages**: - Distinguishes between [market](../m/market.md)-driven and strategy-specific returns. diff --git a/en/pedia/y/yield_enhancement_strategies.md b/en/pedia/y/yield_enhancement_strategies.md index 365279e1..2fcd89e1 100644 --- a/en/pedia/y/yield_enhancement_strategies.md +++ b/en/pedia/y/yield_enhancement_strategies.md @@ -119,11 +119,11 @@ Selling straddles or strangles involves selling call and [put options](../p/put_ ## 6. Leveraged Yield Products -Leveraged [yield](../y/yield.md) products are financial instruments that provide amplified exposure to the [underlying asset](../u/underlying_asset.md) or [index](../i/index.md). +Leveraged [yield](../y/yield.md) products are financial instruments that provide amplified exposure to the [underlying asset](../u/underlying_asset.md) or [index](../i/index_instrument.md). ### Leveraged ETFs -[Leveraged ETFs](../l/leveraged_etfs.md) aim to deliver multiples of the daily performance of the [underlying](../u/underlying.md) [index](../i/index.md), [commodity](../c/commodity.md), or [asset](../a/asset.md). These ETFs can be used to enhance [yield](../y/yield.md) through magnified exposure. +[Leveraged ETFs](../l/leveraged_etfs.md) aim to deliver multiples of the daily performance of the [underlying](../u/underlying.md) [index](../i/index_instrument.md), [commodity](../c/commodity.md), or [asset](../a/asset.md). These ETFs can be used to enhance [yield](../y/yield.md) through magnified exposure. **Advantages:** - Potential for high returns if the [underlying asset](../u/underlying_asset.md) moves favorably. diff --git a/en/pedia/y/yield_forecast_analysis.md b/en/pedia/y/yield_forecast_analysis.md index f711e3e5..ff92e71d 100644 --- a/en/pedia/y/yield_forecast_analysis.md +++ b/en/pedia/y/yield_forecast_analysis.md @@ -115,7 +115,7 @@ from statsmodels.tsa.statespace.sarimax [import](../i/import.md) SARIMAX # Load historical data data = pd.read_csv('historical_data.csv') -data.[index](../i/index.md) = pd.to_datetime(data['Date']) +data.[index](../i/index_instrument.md) = pd.to_datetime(data['Date']) data = data['Close'] # Split the data diff --git a/en/pedia/y/yield_forecast_techniques.md b/en/pedia/y/yield_forecast_techniques.md index 3466bb89..4a441c60 100644 --- a/en/pedia/y/yield_forecast_techniques.md +++ b/en/pedia/y/yield_forecast_techniques.md @@ -132,7 +132,7 @@ Disadvantages: ## 4. Remote Sensing and GIS Technology ### 4.1 Satellite Imagery -Satellite imagery provides real-time monitoring of crop conditions. Using remote sensing data, models can predict crop yields based on vegetation indices such as NDVI (Normalized Difference Vegetation [Index](../i/index.md)): +Satellite imagery provides real-time monitoring of crop conditions. Using remote sensing data, models can predict crop yields based on vegetation indices such as NDVI (Normalized Difference Vegetation [Index](../i/index_instrument.md)): Advantages: - Provides spatial coverage over large areas. diff --git a/en/pedia/y/yield_forecasting.md b/en/pedia/y/yield_forecasting.md index 933646c5..bfe8d54e 100644 --- a/en/pedia/y/yield_forecasting.md +++ b/en/pedia/y/yield_forecasting.md @@ -11,7 +11,7 @@ Data collection is the first step in [yield](../y/yield.md) [forecasting](../f/f - **Financial [Market](../m/market.md) Data:** Prices, volumes, and other trading data. - **[Economic Indicators](../e/economic_indicators.md):** GDP, [unemployment](../u/unemployment.md) rates, [inflation](../i/inflation.md), [interest](../i/interest.md) rates. - **[Sentiment Analysis](../s/sentiment_analysis.md) Data:** [Market sentiment](../m/market_sentiment.md), news, [social media](../s/social_media.md) trends. -- **Other Factors:** [Technical indicators](../t/technical_indicators.md) such as moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)). +- **Other Factors:** [Technical indicators](../t/technical_indicators.md) such as moving averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)). **Data Preprocessing:** - **Cleaning:** Handling missing values, removing outliers. diff --git a/en/pedia/y/yield_forecasting_techniques.md b/en/pedia/y/yield_forecasting_techniques.md index c184d468..99604d3d 100644 --- a/en/pedia/y/yield_forecasting_techniques.md +++ b/en/pedia/y/yield_forecasting_techniques.md @@ -15,7 +15,7 @@ [Technical analysis](../t/technical_analysis.md) involves the statistical analysis of [market](../m/market.md) activity. It uses past prices, [volume](../v/volume.md), and [open interest](../o/open_interest.md) to try to ascertain future price movements. Unlike [fundamental analysis](../f/fundamental_analysis.md), [technical analysis](../t/technical_analysis.md) primarily concerns itself with price and [volume](../v/volume.md), believing that all necessary information is reflected in these data points. - **Moving Averages:** Used to smooth out short-term fluctuations and highlight longer-term trends or cycles. -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** Measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** Measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. - **[Bollinger Bands](../b/bollinger_bands.md):** Represent [volatility](../v/volatility.md) bands placed above and below a moving average. ## 3. Quantitative Analysis diff --git a/en/pedia/y/yield_mapping_models.md b/en/pedia/y/yield_mapping_models.md index 95203af0..e021c618 100644 --- a/en/pedia/y/yield_mapping_models.md +++ b/en/pedia/y/yield_mapping_models.md @@ -16,7 +16,7 @@ Examples: - **Moving Averages**: These models smooth out price data to identify trends. Common methods include simple moving averages (SMA) and exponential moving averages (EMA). - - **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI)**: RSI measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. + - **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI)**: RSI measures the magnitude of recent price changes to evaluate [overbought](../o/overbought.md) or [oversold](../o/oversold.md) conditions. 3. **[Quantitative Models](../q/quantitative_models.md)**: [Quantitative models](../q/quantitative_models.md) combine mathematical and statistical techniques to develop sophisticated algorithms capable of analyzing large datasets and identifying patterns. diff --git a/en/pedia/y/yield_matching_strategies.md b/en/pedia/y/yield_matching_strategies.md index 12e6bfa2..fbd0a72e 100644 --- a/en/pedia/y/yield_matching_strategies.md +++ b/en/pedia/y/yield_matching_strategies.md @@ -14,7 +14,7 @@ The primary purpose of [Yield Matching](../y/yield_matching.md) Strategies is to 1. **Benchmarks and Objectives**: - **Benchmarks**: Commonly used benchmarks include [market](../m/market.md) indices like the S&P 500, [bond](../b/bond.md) indices, or custom benchmarks tailored to specific investment strategies. - - **Objectives**: These can be [absolute return](../a/absolute_return.md) targets (e.g., 5% annual [yield](../y/yield.md)) or relative targets (e.g., outperforming a specific [index](../i/index.md) by 2%). + - **Objectives**: These can be [absolute return](../a/absolute_return.md) targets (e.g., 5% annual [yield](../y/yield.md)) or relative targets (e.g., outperforming a specific [index](../i/index_instrument.md) by 2%). 2. **Algorithmic Models**: - **[Mean-Variance Optimization](../m/mean-variance_optimization.md)**: This involves balancing the [trade](../t/trade.md)-off between [risk](../r/risk.md) and [return](../r/return.md) to construct a portfolio that meets the [yield](../y/yield.md) objective. diff --git a/en/pedia/y/yield_tilt_index_fund.md b/en/pedia/y/yield_tilt_index_fund.md index 40dd6f16..0b610e6e 100644 --- a/en/pedia/y/yield_tilt_index_fund.md +++ b/en/pedia/y/yield_tilt_index_fund.md @@ -1,46 +1,46 @@ # Yield Tilt Index Fund -[Yield](../y/yield.md) Tilt [Index](../i/index.md) Funds represent an innovative approach in the broader universe of [index investing](../i/index_investing.md). These funds are designed to [offer](../o/offer.md) a twist on traditional [index](../i/index.md) funds by tilting the portfolio towards higher-yielding securities. The fundamental design of a [Yield](../y/yield.md) Tilt [Index Fund](../i/index_fund.md) aims to maximize returns by emphasizing [income](../i/income.md) generation, potentially [offering](../o/offering.md) more attractive yields to investors compared to standard [index](../i/index.md) funds. +[Yield](../y/yield.md) Tilt [Index](../i/index_instrument.md) Funds represent an innovative approach in the broader universe of [index investing](../i/index_investing.md). These funds are designed to [offer](../o/offer.md) a twist on traditional [index](../i/index_instrument.md) funds by tilting the portfolio towards higher-yielding securities. The fundamental design of a [Yield](../y/yield.md) Tilt [Index Fund](../i/index_fund.md) aims to maximize returns by emphasizing [income](../i/income.md) generation, potentially [offering](../o/offering.md) more attractive yields to investors compared to standard [index](../i/index_instrument.md) funds. ## Concept and Design -At its core, a [Yield](../y/yield.md) Tilt [Index Fund](../i/index_fund.md) is designed to focus on securities that [offer](../o/offer.md) higher yields—whether these come from dividends in [stocks](../s/stock.md) or [interest](../i/interest.md) payments in bonds. The primary objective is to provide an enhanced [income](../i/income.md) stream while still maintaining the [diversification](../d/diversification.md) and passive management attributes typically associated with [index](../i/index.md) funds. +At its core, a [Yield](../y/yield.md) Tilt [Index Fund](../i/index_fund.md) is designed to focus on securities that [offer](../o/offer.md) higher yields—whether these come from dividends in [stocks](../s/stock.md) or [interest](../i/interest.md) payments in bonds. The primary objective is to provide an enhanced [income](../i/income.md) stream while still maintaining the [diversification](../d/diversification.md) and passive management attributes typically associated with [index](../i/index_instrument.md) funds. ### How Yield Tilt Index Funds Differ from Traditional Index Funds -1. **Objective**: Traditional [index](../i/index.md) funds aim to replicate the performance of a specific [benchmark](../b/benchmark.md) [index](../i/index.md) as closely as possible. In contrast, [Yield](../y/yield.md) Tilt [Index](../i/index.md) Funds seek to replicate the [benchmark](../b/benchmark.md) [index](../i/index.md) but with a bias towards higher-yielding investments within that [index](../i/index.md). +1. **Objective**: Traditional [index](../i/index_instrument.md) funds aim to replicate the performance of a specific [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) as closely as possible. In contrast, [Yield](../y/yield.md) Tilt [Index](../i/index_instrument.md) Funds seek to replicate the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) but with a bias towards higher-yielding investments within that [index](../i/index_instrument.md). -2. **Portfolio Composition**: In a standard [index fund](../i/index_fund.md), the weights of securities are usually based on [market capitalization](../m/market_capitalization.md) (for stock indices) or certain [fixed income](../f/fixed_income.md) characteristics (for [bond](../b/bond.md) indices). [Yield](../y/yield.md) Tilt [Index](../i/index.md) Funds adjust these weights. Securities that [offer](../o/offer.md) higher yields are given more weight, thus tilting the portfolio composition towards higher [income](../i/income.md)-generating assets. +2. **Portfolio Composition**: In a standard [index fund](../i/index_fund.md), the weights of securities are usually based on [market capitalization](../m/market_capitalization.md) (for stock indices) or certain [fixed income](../f/fixed_income.md) characteristics (for [bond](../b/bond.md) indices). [Yield](../y/yield.md) Tilt [Index](../i/index_instrument.md) Funds adjust these weights. Securities that [offer](../o/offer.md) higher yields are given more weight, thus tilting the portfolio composition towards higher [income](../i/income.md)-generating assets. -3. **[Income](../i/income.md) Generation vs. [Total Return](../t/total_return.md)**: While traditional [index](../i/index.md) funds focus on [total return](../t/total_return.md) (a combination of [capital](../c/capital.md) appreciation and [income](../i/income.md)), [Yield](../y/yield.md) Tilt [Index](../i/index.md) Funds prioritize [income](../i/income.md) generation. Investors may see higher distributions due to the emphasis on yields. +3. **[Income](../i/income.md) Generation vs. [Total Return](../t/total_return.md)**: While traditional [index](../i/index_instrument.md) funds focus on [total return](../t/total_return.md) (a combination of [capital](../c/capital.md) appreciation and [income](../i/income.md)), [Yield](../y/yield.md) Tilt [Index](../i/index_instrument.md) Funds prioritize [income](../i/income.md) generation. Investors may see higher distributions due to the emphasis on yields. ## Mechanics of Yield Tilt Index Funds ### Security Selection -1. **[Dividend](../d/dividend.md) [Stocks](../s/stock.md)**: In the case of [equity](../e/equity.md)-oriented [Yield](../y/yield.md) Tilt [Index](../i/index.md) Funds, the focus shifts to [stocks](../s/stock.md) with [robust](../r/robust.md) and sustainable [dividend](../d/dividend.md) histories. Such [stocks](../s/stock.md) might include those from established companies with a long history of [dividend](../d/dividend.md) payments and consistent [payout](../p/payout.md) increases. +1. **[Dividend](../d/dividend.md) [Stocks](../s/stock.md)**: In the case of [equity](../e/equity.md)-oriented [Yield](../y/yield.md) Tilt [Index](../i/index_instrument.md) Funds, the focus shifts to [stocks](../s/stock.md) with [robust](../r/robust.md) and sustainable [dividend](../d/dividend.md) histories. Such [stocks](../s/stock.md) might include those from established companies with a long history of [dividend](../d/dividend.md) payments and consistent [payout](../p/payout.md) increases. -2. **High-[Yield](../y/yield.md) Bonds**: For fixed-[income](../i/income.md) [Yield](../y/yield.md) Tilt [Index](../i/index.md) Funds, the emphasis is placed on bonds [offering](../o/offering.md) higher coupon payments. This might mean a tilt towards corporate bonds or other high-[yield](../y/yield.md) [debt](../d/debt.md) instruments as opposed to government securities which generally [offer](../o/offer.md) lower yields. +2. **High-[Yield](../y/yield.md) Bonds**: For fixed-[income](../i/income.md) [Yield](../y/yield.md) Tilt [Index](../i/index_instrument.md) Funds, the emphasis is placed on bonds [offering](../o/offering.md) higher coupon payments. This might mean a tilt towards corporate bonds or other high-[yield](../y/yield.md) [debt](../d/debt.md) instruments as opposed to government securities which generally [offer](../o/offer.md) lower yields. ### Weighting Mechanism The implementation of the 'tilt' can be done in several ways: -1. **Proportional Overweighting**: Securities with higher yields are given a proportionally larger weight compared to their representation in the standard [index](../i/index.md). +1. **Proportional Overweighting**: Securities with higher yields are given a proportionally larger weight compared to their representation in the standard [index](../i/index_instrument.md). 2. **Threshold Filters**: Only securities with yields above a certain threshold are included in the [fund](../f/fund.md), omitting lower-yielding [options](../o/options.md) entirely. -3. **Dynamic Adjustments**: Some funds may periodically adjust their tilts based on changes in [yield](../y/yield.md) within the components of the [underlying](../u/underlying.md) [index](../i/index.md). This ensures the [fund](../f/fund.md) is consistently aligned with its [income](../i/income.md)-generating goal. +3. **Dynamic Adjustments**: Some funds may periodically adjust their tilts based on changes in [yield](../y/yield.md) within the components of the [underlying](../u/underlying.md) [index](../i/index_instrument.md). This ensures the [fund](../f/fund.md) is consistently aligned with its [income](../i/income.md)-generating goal. ## Benefits of Yield Tilt Index Funds -1. **Enhanced [Income](../i/income.md)**: The primary benefit is the potential for higher [income](../i/income.md) streams compared to traditional [index](../i/index.md) funds. This can be particularly appealing for [income](../i/income.md)-focused investors, such as retirees. +1. **Enhanced [Income](../i/income.md)**: The primary benefit is the potential for higher [income](../i/income.md) streams compared to traditional [index](../i/index_instrument.md) funds. This can be particularly appealing for [income](../i/income.md)-focused investors, such as retirees. -2. **[Diversification](../d/diversification.md)**: Despite the tilt towards higher yields, these funds still retain the broad [diversification](../d/diversification.md) attributes of [index](../i/index.md) funds, potentially spreading [risk](../r/risk.md) across a wide array of securities. +2. **[Diversification](../d/diversification.md)**: Despite the tilt towards higher yields, these funds still retain the broad [diversification](../d/diversification.md) attributes of [index](../i/index_instrument.md) funds, potentially spreading [risk](../r/risk.md) across a wide array of securities. -3. **Passive Management**: [Yield](../y/yield.md) Tilt [Index](../i/index.md) Funds adhere to a passive [investment strategy](../i/investment_strategy.md), which can result in lower fees compared to actively managed funds. The passively managed approach also reduces the relative [risk](../r/risk.md) of underperforming the broad [market](../m/market.md). +3. **Passive Management**: [Yield](../y/yield.md) Tilt [Index](../i/index_instrument.md) Funds adhere to a passive [investment strategy](../i/investment_strategy.md), which can result in lower fees compared to actively managed funds. The passively managed approach also reduces the relative [risk](../r/risk.md) of underperforming the broad [market](../m/market.md). -4. **Cost [Efficiency](../e/efficiency.md)**: With [index](../i/index.md)-like structures, these funds benefit from lower [trading costs](../t/trading_costs.md) and [expense](../e/expense.md) ratios compared to actively managed funds. +4. **Cost [Efficiency](../e/efficiency.md)**: With [index](../i/index_instrument.md)-like structures, these funds benefit from lower [trading costs](../t/trading_costs.md) and [expense](../e/expense.md) ratios compared to actively managed funds. ## Risks and Considerations @@ -54,7 +54,7 @@ The implementation of the 'tilt' can be done in several ways: ## Popular Examples of Yield Tilt Index Funds -One of the most well-known providers of [Yield](../y/yield.md) Tilt [Index](../i/index.md) Funds is Vanguard with their [Vanguard Dividend Appreciation ETF (VIG)](https://investor.vanguard.com/etf/profile/VIG). This [fund](../f/fund.md) focuses on companies with a strong history of [dividend](../d/dividend.md) growth, tilting its portfolio towards reliable [dividend](../d/dividend.md) payers. +One of the most well-known providers of [Yield](../y/yield.md) Tilt [Index](../i/index_instrument.md) Funds is Vanguard with their [Vanguard Dividend Appreciation ETF (VIG)](https://investor.vanguard.com/etf/profile/VIG). This [fund](../f/fund.md) focuses on companies with a strong history of [dividend](../d/dividend.md) growth, tilting its portfolio towards reliable [dividend](../d/dividend.md) payers. Another example is the [iShares Select Dividend ETF (DVY)](https://www.ishares.com/us/products/239726/ishares-select-dividend-etf), which selects domestic companies with high [dividend](../d/dividend.md) yields and a record of sustained [dividend](../d/dividend.md) growth. @@ -62,4 +62,4 @@ For [fixed income](../f/fixed_income.md), [SPDR Portfolio High Yield Bond ETF (S ## Conclusion -[Yield](../y/yield.md) Tilt [Index](../i/index.md) Funds [offer](../o/offer.md) an appealing proposition for investors seeking a balance between the established principles of [index investing](../i/index_investing.md) and the desire for higher [income](../i/income.md). By tilting portfolios towards higher-yielding securities, these funds aim to deliver enhanced [income](../i/income.md) streams while retaining the benefits of [diversification](../d/diversification.md), passive management, and cost [efficiency](../e/efficiency.md). However, it’s important for investors to carefully consider the associated risks, such as [yield](../y/yield.md) concentration and [market](../m/market.md) [volatility](../v/volatility.md), aligning their investment choices with their financial goals and [risk tolerance](../r/risk_tolerance.md). \ No newline at end of file +[Yield](../y/yield.md) Tilt [Index](../i/index_instrument.md) Funds [offer](../o/offer.md) an appealing proposition for investors seeking a balance between the established principles of [index investing](../i/index_investing.md) and the desire for higher [income](../i/income.md). By tilting portfolios towards higher-yielding securities, these funds aim to deliver enhanced [income](../i/income.md) streams while retaining the benefits of [diversification](../d/diversification.md), passive management, and cost [efficiency](../e/efficiency.md). However, it’s important for investors to carefully consider the associated risks, such as [yield](../y/yield.md) concentration and [market](../m/market.md) [volatility](../v/volatility.md), aligning their investment choices with their financial goals and [risk tolerance](../r/risk_tolerance.md). \ No newline at end of file diff --git a/en/pedia/y/ytd_return_analysis.md b/en/pedia/y/ytd_return_analysis.md index e004f6b5..6d5492e2 100644 --- a/en/pedia/y/ytd_return_analysis.md +++ b/en/pedia/y/ytd_return_analysis.md @@ -78,7 +78,7 @@ For traders who prefer custom analysis, Python offers several libraries such as Let's consider a case study involving a fictional [hedge fund](../h/hedge_fund.md), "[Alpha](../a/alpha.md) [Capital](../c/capital.md)." [Alpha](../a/alpha.md) [Capital](../c/capital.md) employs an [algorithmic trading](../a/algorithmic_trading.md) strategy focusing on [equity](../e/equity.md) markets. At the beginning of the year, the [fund](../f/fund.md) allocated \$10 million across a diversified portfolio of 50 [stocks](../s/stock.md). -Throughout the year, the [fund](../f/fund.md)'s algorithm executes trades based on certain [market](../m/market.md) signals. By mid-year, [Alpha](../a/alpha.md) [Capital](../c/capital.md)'s [YTD return](../y/ytd_return_calculation.md) is 8%. However, the [benchmark](../b/benchmark.md) [index](../i/index.md) (e.g., the S&P 500) has achieved a [YTD return](../y/ytd_return_calculation.md) of 12%. +Throughout the year, the [fund](../f/fund.md)'s algorithm executes trades based on certain [market](../m/market.md) signals. By mid-year, [Alpha](../a/alpha.md) [Capital](../c/capital.md)'s [YTD return](../y/ytd_return_calculation.md) is 8%. However, the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) (e.g., the S&P 500) has achieved a [YTD return](../y/ytd_return_calculation.md) of 12%. ### Analysis and Actions The portfolio managers at [Alpha](../a/alpha.md) [Capital](../c/capital.md) analyze the [YTD return](../y/ytd_return_calculation.md) in comparison to the [benchmark](../b/benchmark.md). The underperformance prompts them to review individual stock performances, sector allocations, and the algorithm's [trading signals](../t/trading_signals.md). diff --git a/en/pedia/z/z-scores_in_financial_analysis.md b/en/pedia/z/z-scores_in_financial_analysis.md index bb9334b4..47c7494d 100644 --- a/en/pedia/z/z-scores_in_financial_analysis.md +++ b/en/pedia/z/z-scores_in_financial_analysis.md @@ -62,7 +62,7 @@ In [algorithmic trading](../a/algorithmic_trading.md), [Z-scores](../z/z-scores_ #### Performance Benchmarking -Portfolio managers deploy [Z-scores](../z/z-scores_in_trading.md) to [benchmark](../b/benchmark.md) the performance of a portfolio relative to an [index](../i/index.md) or [peer group](../p/peer_group.md). This helps in understanding whether a portfolio's performance is due to skill or [market](../m/market.md) conditions. +Portfolio managers deploy [Z-scores](../z/z-scores_in_trading.md) to [benchmark](../b/benchmark.md) the performance of a portfolio relative to an [index](../i/index_instrument.md) or [peer group](../p/peer_group.md). This helps in understanding whether a portfolio's performance is due to skill or [market](../m/market.md) conditions. #### Credit Risk Analysis @@ -77,7 +77,7 @@ Despite their [utility](../u/utility.md), [Z-scores](../z/z-scores_in_trading.md ### Practical Example -Consider a scenario where an analyst is evaluating the performance of a stock against its [benchmark](../b/benchmark.md) [index](../i/index.md), the S&P 500. Suppose the stock has returned 15%, the mean [return](../r/return.md) of the S&P 500 is 10%, and the [standard deviation](../s/standard_deviation.md) of the S&P 500 returns is 5%. The [Z-score](../z/z-score.md) would be calculated as: +Consider a scenario where an analyst is evaluating the performance of a stock against its [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), the S&P 500. Suppose the stock has returned 15%, the mean [return](../r/return.md) of the S&P 500 is 10%, and the [standard deviation](../s/standard_deviation.md) of the S&P 500 returns is 5%. The [Z-score](../z/z-score.md) would be calculated as: \[ Z = \frac{15\% - 10\%}{5\%} = 1 \] diff --git a/en/pedia/z/z-test_analysis.md b/en/pedia/z/z-test_analysis.md index 797a46ea..5bf09f57 100644 --- a/en/pedia/z/z-test_analysis.md +++ b/en/pedia/z/z-test_analysis.md @@ -24,7 +24,7 @@ The [central limit theorem](../c/central_limit_theorem_in_trading.md) states tha Algorithmic traders often need to verify whether their [trading strategies](../t/trading_strategies.md) [yield](../y/yield.md) statistically significant returns. By using the [Z-test](../z/z-test_in_trading.md), traders can determine if the backtested performance of their strategies is significantly different from a chosen [benchmark](../b/benchmark.md) or the [risk](../r/risk.md)-free rate. -For instance, if a [trading strategy](../t/trading_strategy.md) is designed to [outperform](../o/outperform.md) the S&P 500 [index](../i/index.md), a [trader](../t/trader.md) can collect daily returns from both the [trading strategy](../t/trading_strategy.md) and the S&P 500 over a period. Using these returns, they can perform a [Z-test](../z/z-test_in_trading.md) to determine if the strategy's mean [return](../r/return.md) significantly exceeds the mean [return](../r/return.md) of the S&P 500. +For instance, if a [trading strategy](../t/trading_strategy.md) is designed to [outperform](../o/outperform.md) the S&P 500 [index](../i/index_instrument.md), a [trader](../t/trader.md) can collect daily returns from both the [trading strategy](../t/trading_strategy.md) and the S&P 500 over a period. Using these returns, they can perform a [Z-test](../z/z-test_in_trading.md) to determine if the strategy's mean [return](../r/return.md) significantly exceeds the mean [return](../r/return.md) of the S&P 500. ### Event Studies diff --git a/en/pedia/z/z-test_financial_models.md b/en/pedia/z/z-test_financial_models.md index fdaac8d9..e124c13e 100644 --- a/en/pedia/z/z-test_financial_models.md +++ b/en/pedia/z/z-test_financial_models.md @@ -32,7 +32,7 @@ The p-[value](../v/value.md) is the probability that the observed data would occ In [financial markets](../f/financial_market.md), analysts often compare the prices of a stock at different times to determine if there has been a significant change. ### 2. Portfolio Performance -Z-Tests can be used to compare the performance of different portfolios against a [benchmark](../b/benchmark.md) [index](../i/index.md) to assess if a [portfolio manager](../p/portfolio_manager.md) has added significant [value](../v/value.md). +Z-Tests can be used to compare the performance of different portfolios against a [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) to assess if a [portfolio manager](../p/portfolio_manager.md) has added significant [value](../v/value.md). ### 3. Economic Indicators Financial analysts often use Z-Tests to compare [economic indicators](../e/economic_indicators.md) (e.g., GDP [growth rates](../g/growth_rates_in_trading.md)) between different countries or different time periods. diff --git a/en/pedia/z/z-test_models.md b/en/pedia/z/z-test_models.md index 9d7dd6e6..5e76a225 100644 --- a/en/pedia/z/z-test_models.md +++ b/en/pedia/z/z-test_models.md @@ -64,7 +64,7 @@ For a two-sample [Z-test](../z/z-test_in_trading.md), the formula is slightly ad ### Strategy Validation -Algorithmic traders use Z-tests to validate their [trading strategies](../t/trading_strategies.md) by comparing the returns of their algorithm against a [benchmark](../b/benchmark.md). For example, if a [trader](../t/trader.md) wants to ascertain whether their new high-frequency trading (HFT) algorithm produces significantly higher returns than the S&P 500 [index](../i/index.md), they can use a one-sample [Z-test](../z/z-test_in_trading.md). +Algorithmic traders use Z-tests to validate their [trading strategies](../t/trading_strategies.md) by comparing the returns of their algorithm against a [benchmark](../b/benchmark.md). For example, if a [trader](../t/trader.md) wants to ascertain whether their new high-frequency trading (HFT) algorithm produces significantly higher returns than the S&P 500 [index](../i/index_instrument.md), they can use a one-sample [Z-test](../z/z-test_in_trading.md). ### Market Efficiency Testing diff --git a/en/pedia/z/zacks_lifecycle_indexes.md b/en/pedia/z/zacks_lifecycle_indexes.md index 6638b305..2de93a67 100644 --- a/en/pedia/z/zacks_lifecycle_indexes.md +++ b/en/pedia/z/zacks_lifecycle_indexes.md @@ -6,11 +6,11 @@ The purpose of Zacks Lifecycle Indexes is to [offer](../o/offer.md) a diversifie ## Structure of Zacks Lifecycle Indexes -Zacks Lifecycle Indexes typically include various [asset](../a/asset.md) classes and are designed with specific target years in mind, which are reflected in their names (e.g., Zacks 2030 Lifecycle [Index](../i/index.md), Zacks 2040 Lifecycle [Index](../i/index.md)). Each [index](../i/index.md) comprises different types of ETFs, which may include [equity](../e/equity.md), fixed-[income](../i/income.md), and other [asset](../a/asset.md) classes, reflecting the diversified structure of a [target-date fund](../t/target-date_fund.md). +Zacks Lifecycle Indexes typically include various [asset](../a/asset.md) classes and are designed with specific target years in mind, which are reflected in their names (e.g., Zacks 2030 Lifecycle [Index](../i/index_instrument.md), Zacks 2040 Lifecycle [Index](../i/index_instrument.md)). Each [index](../i/index_instrument.md) comprises different types of ETFs, which may include [equity](../e/equity.md), fixed-[income](../i/income.md), and other [asset](../a/asset.md) classes, reflecting the diversified structure of a [target-date fund](../t/target-date_fund.md). ### Equity Funds -The [equity](../e/equity.md) portion of the lifecycle indexes is generally represented through ETFs that track a broad [range](../r/range.md) of [market](../m/market.md) sectors, including domestic large-cap, [mid-cap](../m/mid-cap.md), small-cap, and international equities. The [equity](../e/equity.md) allocation of the [index](../i/index.md) is typically higher for indexes with target dates that are further into the future. +The [equity](../e/equity.md) portion of the lifecycle indexes is generally represented through ETFs that track a broad [range](../r/range.md) of [market](../m/market.md) sectors, including domestic large-cap, [mid-cap](../m/mid-cap.md), small-cap, and international equities. The [equity](../e/equity.md) allocation of the [index](../i/index_instrument.md) is typically higher for indexes with target dates that are further into the future. ### Fixed-Income Funds @@ -22,7 +22,7 @@ To achieve further [diversification](../d/diversification.md), lifecycle indexes ## Rebalancing Mechanism -A key feature of Zacks Lifecycle Indexes is the annual [rebalancing](../r/rebalancing.md) mechanism. This process involves adjusting the allocations within the [index](../i/index.md) to gradually shift from higher-[risk](../r/risk.md), high-[return](../r/return.md) investments (typically equities) to lower-[risk](../r/risk.md), lower-[return](../r/return.md) investments (typically bonds and [cash equivalents](../c/cash_equivalents.md)) as the [index](../i/index.md) approaches its target date. This transition is designed to reduce the portfolio's exposure to [market](../m/market.md) [volatility](../v/volatility.md) and protect the [investor](../i/investor.md)'s [capital](../c/capital.md). +A key feature of Zacks Lifecycle Indexes is the annual [rebalancing](../r/rebalancing.md) mechanism. This process involves adjusting the allocations within the [index](../i/index_instrument.md) to gradually shift from higher-[risk](../r/risk.md), high-[return](../r/return.md) investments (typically equities) to lower-[risk](../r/risk.md), lower-[return](../r/return.md) investments (typically bonds and [cash equivalents](../c/cash_equivalents.md)) as the [index](../i/index_instrument.md) approaches its target date. This transition is designed to reduce the portfolio's exposure to [market](../m/market.md) [volatility](../v/volatility.md) and protect the [investor](../i/investor.md)'s [capital](../c/capital.md). ### Glide Path @@ -58,7 +58,7 @@ Thanks to the [glide path](../g/glide_path.md) and annual [rebalancing](../r/reb ### Individual Investors -Individual investors who prefer a hands-off approach to retirement savings can find Zacks Lifecycle Indexes a valuable tool. By selecting an [index](../i/index.md) appropriate for their expected retirement year, investors can ensure their portfolios are managed in accordance with their changing [risk tolerance](../r/risk_tolerance.md) over time. +Individual investors who prefer a hands-off approach to retirement savings can find Zacks Lifecycle Indexes a valuable tool. By selecting an [index](../i/index_instrument.md) appropriate for their expected retirement year, investors can ensure their portfolios are managed in accordance with their changing [risk tolerance](../r/risk_tolerance.md) over time. ### Retirement Plans @@ -72,6 +72,6 @@ Despite the competitive [market](../m/market.md), [Zacks Investment Research](.. ## Conclusion -Zacks Lifecycle Indexes [offer](../o/offer.md) a systematic, evidence-based approach to target-date [investing](../i/investing.md), aiming to balance growth and [risk](../r/risk.md) reduction as retirement nears. With their annual [rebalancing](../r/rebalancing.md) mechanism and diversified [asset](../a/asset.md) allocations, these indexes provide both simplicity and professional management for investors planning for future financial needs. By choosing an [index](../i/index.md) aligned with their retirement year, investors can benefit from a carefully managed portfolio that evolves over time to suit their changing [risk tolerance](../r/risk_tolerance.md) and [investment horizon](../i/investment_horizon.md). +Zacks Lifecycle Indexes [offer](../o/offer.md) a systematic, evidence-based approach to target-date [investing](../i/investing.md), aiming to balance growth and [risk](../r/risk.md) reduction as retirement nears. With their annual [rebalancing](../r/rebalancing.md) mechanism and diversified [asset](../a/asset.md) allocations, these indexes provide both simplicity and professional management for investors planning for future financial needs. By choosing an [index](../i/index_instrument.md) aligned with their retirement year, investors can benefit from a carefully managed portfolio that evolves over time to suit their changing [risk tolerance](../r/risk_tolerance.md) and [investment horizon](../i/investment_horizon.md). For more details about Zacks Lifecycle Indexes, please visit the [Zacks Investment Research website](https://www.zacks.com/). \ No newline at end of file diff --git a/en/pedia/z/zero-beta_portfolio.md b/en/pedia/z/zero-beta_portfolio.md index abab3435..cb4a7268 100644 --- a/en/pedia/z/zero-beta_portfolio.md +++ b/en/pedia/z/zero-beta_portfolio.md @@ -4,7 +4,7 @@ In the realm of [financial markets](../f/financial_market.md) and investment str ## Understanding Beta in Finance -To grasp the nuances of a zero-[beta](../b/beta.md) portfolio, it's essential first to understand what [beta](../b/beta.md) denotes in [finance](../f/finance.md). [Beta](../b/beta.md) (`β`) is a measure of an investment's [volatility](../v/volatility.md) in relation to the broader [market](../m/market.md), typically represented by an [index](../i/index.md) like the S&P 500. +To grasp the nuances of a zero-[beta](../b/beta.md) portfolio, it's essential first to understand what [beta](../b/beta.md) denotes in [finance](../f/finance.md). [Beta](../b/beta.md) (`β`) is a measure of an investment's [volatility](../v/volatility.md) in relation to the broader [market](../m/market.md), typically represented by an [index](../i/index_instrument.md) like the S&P 500. - **β > 1**: The [security](../s/security.md) is more volatile than the [market](../m/market.md). - **β < 1**: The [security](../s/security.md) is less volatile than the [market](../m/market.md). diff --git a/en/pedia/z/zero-beta_stock_analysis.md b/en/pedia/z/zero-beta_stock_analysis.md index 418dca38..1228c77f 100644 --- a/en/pedia/z/zero-beta_stock_analysis.md +++ b/en/pedia/z/zero-beta_stock_analysis.md @@ -50,7 +50,7 @@ One of the primary methods to identify zero-[beta](../b/beta.md) [stocks](../s/s ### Statistical Tools -Tools such as [regression analysis](../r/regression_analysis.md) and scatter plots help in visualizing and calculating the [beta](../b/beta.md) of a stock. This involves plotting the returns of a stock against the returns of the [benchmark](../b/benchmark.md) [index](../i/index.md) and analyzing the slope of the regression line. +Tools such as [regression analysis](../r/regression_analysis.md) and scatter plots help in visualizing and calculating the [beta](../b/beta.md) of a stock. This involves plotting the returns of a stock against the returns of the [benchmark](../b/benchmark.md) [index](../i/index_instrument.md) and analyzing the slope of the regression line. ### Screening Software diff --git a/en/pedia/z/zero-sum_market_strategies.md b/en/pedia/z/zero-sum_market_strategies.md index 12c781ea..9ec9f778 100644 --- a/en/pedia/z/zero-sum_market_strategies.md +++ b/en/pedia/z/zero-sum_market_strategies.md @@ -74,7 +74,7 @@ The zero-sum nature of certain [financial markets](../f/financial_market.md) nec #### Features -- **[Momentum Indicators](../m/momentum_indicators.md)**: Utilizes indicators like moving averages and [relative strength](../r/relative_strength.md) [index](../i/index.md) (RSI) to identify trends. +- **[Momentum Indicators](../m/momentum_indicators.md)**: Utilizes indicators like moving averages and [relative strength](../r/relative_strength.md) [index](../i/index_instrument.md) (RSI) to identify trends. - **[Breakout](../b/breakout.md) Strategies**: Trades are triggered when prices break out of significant support or resistance levels. - **[Position Sizing](../p/position_sizing.md)**: Sophisticated algorithms dynamically adjust position sizes based on the strength and reliability of the [trend](../t/trend.md). diff --git a/en/pedia/z/zero_coupon_bond_techniques.md b/en/pedia/z/zero_coupon_bond_techniques.md index 4398de3b..a740b696 100644 --- a/en/pedia/z/zero_coupon_bond_techniques.md +++ b/en/pedia/z/zero_coupon_bond_techniques.md @@ -46,7 +46,7 @@ where: Investors who wish to invest in a diversified portfolio of ZCBs can consider Zero Coupon [Bond](../b/bond.md) ETFs and mutual funds. These funds invest in a basket of ZCBs, providing [diversification](../d/diversification.md) and professional management. Some examples include: 1. **Vanguard Extended [Duration](../d/duration.md) Treasury ETF (EDV)**: This ETF focuses on long-[duration](../d/duration.md) U.S. [Treasury STRIPS](../t/treasury_strips.md). More details can be found on the [Vanguard website](https://investor.vanguard.com/etf/profile/EDV). -2. **PIMCO 25+ Year Zero Coupon [U.S. Treasury](../u/u.s._treasury.md) [Index](../i/index.md) [Exchange](../e/exchange.md)-Traded [Fund](../f/fund.md) (ZROZ)**: This ETF targets long-[duration](../d/duration.md) [U.S. Treasury](../u/u.s._treasury.md) zero coupon bonds. More information is available on the [PIMCO website](https://www.pimco.com/en-us/investments/etf/zroz). +2. **PIMCO 25+ Year Zero Coupon [U.S. Treasury](../u/u.s._treasury.md) [Index](../i/index_instrument.md) [Exchange](../e/exchange.md)-Traded [Fund](../f/fund.md) (ZROZ)**: This ETF targets long-[duration](../d/duration.md) [U.S. Treasury](../u/u.s._treasury.md) zero coupon bonds. More information is available on the [PIMCO website](https://www.pimco.com/en-us/investments/etf/zroz). ### Risks Associated with Zero Coupon Bonds diff --git a/en/pedia/z/zero_coupon_inflation_swap.md b/en/pedia/z/zero_coupon_inflation_swap.md index a8244386..ec9e7eb0 100644 --- a/en/pedia/z/zero_coupon_inflation_swap.md +++ b/en/pedia/z/zero_coupon_inflation_swap.md @@ -1,6 +1,6 @@ # Zero Coupon Inflation Swap -A Zero Coupon [Inflation Swap](../i/inflation_swap.md) (ZCIS) is a [financial instrument](../f/financial_instrument.md) used to manage [inflation](../i/inflation.md) [risk](../r/risk.md) and [hedge](../h/hedge.md) against its effects on future cash flows. It's a particular type of [derivative](../d/derivative.md) contract that allows investors to [exchange](../e/exchange.md) fixed [interest](../i/interest.md) payments for payments linked to an [inflation](../i/inflation.md) [index](../i/index.md). Unlike other swaps, ZCIS have only one [exchange](../e/exchange.md) of cash flows at [maturity](../m/maturity.md), hence the term "zero coupon." +A Zero Coupon [Inflation Swap](../i/inflation_swap.md) (ZCIS) is a [financial instrument](../f/financial_instrument.md) used to manage [inflation](../i/inflation.md) [risk](../r/risk.md) and [hedge](../h/hedge.md) against its effects on future cash flows. It's a particular type of [derivative](../d/derivative.md) contract that allows investors to [exchange](../e/exchange.md) fixed [interest](../i/interest.md) payments for payments linked to an [inflation](../i/inflation.md) [index](../i/index_instrument.md). Unlike other swaps, ZCIS have only one [exchange](../e/exchange.md) of cash flows at [maturity](../m/maturity.md), hence the term "zero coupon." ## Overview Zero Coupon [Inflation](../i/inflation.md) Swaps are primarily used by institutional investors, such as pension funds and [insurance](../i/insurance.md) companies, who have significant [long-term liabilities](../l/long-term_liabilities.md) that are sensitive to [inflation](../i/inflation.md). By entering a ZCIS, these institutions can mitigate the [risk](../r/risk.md) that [inflation](../i/inflation.md) [will](../w/will.md) erode the [value](../v/value.md) of their assets. @@ -9,12 +9,12 @@ Zero Coupon [Inflation](../i/inflation.md) Swaps are primarily used by instituti A ZCIS involves two parties: the *payer* and the *receiver*. - **Payer**: Pays a fixed rate agreed upon at the inception of the [swap](../s/swap.md). -- **Receiver**: Pays an amount based on the [inflation](../i/inflation.md) [index](../i/index.md) level at the [swap](../s/swap.md)'s [maturity date](../m/maturity_date.md). +- **Receiver**: Pays an amount based on the [inflation](../i/inflation.md) [index](../i/index_instrument.md) level at the [swap](../s/swap.md)'s [maturity date](../m/maturity_date.md). #### Key Terms and Components: - **Notional [Principal](../p/principal.md)**: The amount on which payments are based, though it is not exchanged. - **Fixed Rate**: The pre-agreed [interest rate](../i/interest_rate.md) that the payer provides at [maturity](../m/maturity.md). -- **[Inflation](../i/inflation.md) [Index](../i/index.md)**: Usually a national Consumer Price [Index](../i/index.md) (CPI) or Retail Price [Index](../i/index.md) (RPI). +- **[Inflation](../i/inflation.md) [Index](../i/index_instrument.md)**: Usually a national Consumer Price [Index](../i/index_instrument.md) (CPI) or Retail Price [Index](../i/index_instrument.md) (RPI). - **[Maturity Date](../m/maturity_date.md)**: The date when the final [payment](../p/payment.md) is made and the [swap](../s/swap.md) is settled. ### Example Transaction @@ -22,7 +22,7 @@ Suppose two parties enter into a ZCIS with the following terms: - Notional [Principal](../p/principal.md): $100 million - Fixed Rate: 2% -- [Inflation](../i/inflation.md) [Index](../i/index.md): CPI +- [Inflation](../i/inflation.md) [Index](../i/index_instrument.md): CPI - [Maturity](../m/maturity.md): 5 years At [maturity](../m/maturity.md), the payer [will](../w/will.md) pay $100 million * 1.02^5 to the receiver, while the receiver [will](../w/will.md) pay the payer the $100 million * (CPI at [maturity](../m/maturity.md) / CPI at inception). @@ -39,10 +39,10 @@ The [value](../v/value.md) of a Zero Coupon [Inflation Swap](../i/inflation_swap [Valuation](../v/valuation.md) often involves [discounting](../d/discounting.md) future cash flows using the appropriate [discount](../d/discount.md) [factor](../f/factor.md). For the fixed [leg](../l/leg.md), the [payment](../p/payment.md) is discounted using a [risk](../r/risk.md)-free rate. The [inflation](../i/inflation.md) [leg](../l/leg.md) may require [simulation](../s/simulation_in_trading.md) or projection of future [inflation](../i/inflation.md) rates, incorporating [market](../m/market.md) expectations gleaned from [inflation-linked bonds](../i/inflation-linked_bonds.md) or other instruments. ### Types of Inflation Indices -- **CPI-U (Consumer Price [Index](../i/index.md) for All Urban Consumers)** -- **CPI-W (Consumer Price [Index](../i/index.md) for Urban Wage Earners and Clerical Workers)** -- **RPI (Retail Prices [Index](../i/index.md))** -- **PCE (Personal Consumption Expenditures Price [Index](../i/index.md))** +- **CPI-U (Consumer Price [Index](../i/index_instrument.md) for All Urban Consumers)** +- **CPI-W (Consumer Price [Index](../i/index_instrument.md) for Urban Wage Earners and Clerical Workers)** +- **RPI (Retail Prices [Index](../i/index_instrument.md))** +- **PCE (Personal Consumption Expenditures Price [Index](../i/index_instrument.md))** ## Applications ### Hedging diff --git a/en/pedia/z/zero_income_strategies.md b/en/pedia/z/zero_income_strategies.md index d9234ee4..3606b2cb 100644 --- a/en/pedia/z/zero_income_strategies.md +++ b/en/pedia/z/zero_income_strategies.md @@ -14,7 +14,7 @@ Zero [Income](../i/income.md) Strategies in algo trading emphasize price movemen - **Parameter [Optimization](../o/optimization.md)**: Fine-tuning model parameters to maximize [performance metrics](../p/performance_metrics.md) like [Sharpe Ratio](../s/sharpe_ratio.md) or [Sortino Ratio](../s/sortino_ratio.md). 2. **[Market](../m/market.md) Scanning and Signal Generation** - - **[Technical Indicators](../t/technical_indicators.md)**: Utilizing indicators such as Moving Averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and others. + - **[Technical Indicators](../t/technical_indicators.md)**: Utilizing indicators such as Moving Averages, RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)), MACD (Moving Average Convergence [Divergence](../d/divergence.md)), and others. - **[Pattern Recognition](../p/pattern_recognition.md)**: Algorithms identify trading opportunities based on [market](../m/market.md) patterns like head and shoulders, flag, and [pennant](../p/pennant.md) patterns. 3. **[Execution](../e/execution.md) Strategies** diff --git a/en/pedia/z/zero_inflation_bond.md b/en/pedia/z/zero_inflation_bond.md index 4f37c472..913297c9 100644 --- a/en/pedia/z/zero_inflation_bond.md +++ b/en/pedia/z/zero_inflation_bond.md @@ -6,7 +6,7 @@ A Zero [Inflation](../i/inflation.md) [Bond](../b/bond.md), also known as a zero ### Characteristics of Zero Inflation Bonds Zero [Inflation](../i/inflation.md) Bonds exhibit several unique characteristics: -1. **[Principal](../p/principal.md) Protection**: The [principal](../p/principal.md) amount of the [bond](../b/bond.md) is adjusted according to a measure of [inflation](../i/inflation.md), typically the Consumer Price [Index](../i/index.md) (CPI). This adjustment helps maintain the [purchasing power](../p/purchasing_power.md) of the investment. +1. **[Principal](../p/principal.md) Protection**: The [principal](../p/principal.md) amount of the [bond](../b/bond.md) is adjusted according to a measure of [inflation](../i/inflation.md), typically the Consumer Price [Index](../i/index_instrument.md) (CPI). This adjustment helps maintain the [purchasing power](../p/purchasing_power.md) of the investment. 2. **Single [Payment](../p/payment.md) at [Maturity](../m/maturity.md)**: Unlike traditional bonds that make periodic [interest](../i/interest.md) payments (coupons), zero [inflation](../i/inflation.md) bonds do not make intermediary payments. Instead, the [investor](../i/investor.md) receives a single [payment](../p/payment.md) at the [bond](../b/bond.md)'s [maturity](../m/maturity.md), which includes the adjusted [principal](../p/principal.md). @@ -61,7 +61,7 @@ Zero [inflation](../i/inflation.md) bonds can be part of various investment stra Different types of zero [inflation](../i/inflation.md) bonds exist in the [market](../m/market.md), including government-issued securities and corporate bonds indexed to [inflation](../i/inflation.md). Examples include: 1. **[U.S. Treasury](../u/u.s._treasury.md) [Inflation-Protected Securities](../i/inflation-protected_securities.md) (TIPS)**: These are the most common [inflation-protected securities](../i/inflation-protected_securities.md) in the United States. -2. **UK [Index](../i/index.md)-Linked [Gilts](../g/gilts.md)**: Similar instruments issued by the UK government. +2. **UK [Index](../i/index_instrument.md)-Linked [Gilts](../g/gilts.md)**: Similar instruments issued by the UK government. 3. **Corporate [Inflation-Linked Bonds](../i/inflation-linked_bonds.md)**: Some corporations [issue](../i/issue.md) zero [inflation](../i/inflation.md) bonds to attract [inflation](../i/inflation.md)-conscious investors. ### Relevant Companies and Resources @@ -76,7 +76,7 @@ Some financial institutions and companies [offering](../o/offering.md) [inflatio 3. **BlackRock**: Offers ETFs and funds focused on [inflation](../i/inflation.md)-protected bonds. - [BlackRock](https://www.blackrock.com/) -4. **UK [Debt](../d/debt.md) Management Office**: Provides details about UK [Index](../i/index.md)-Linked [Gilts](../g/gilts.md). +4. **UK [Debt](../d/debt.md) Management Office**: Provides details about UK [Index](../i/index_instrument.md)-Linked [Gilts](../g/gilts.md). - [UK Debt Management Office](https://www.dmo.gov.uk/) ### Conclusion diff --git a/en/pedia/z/zero_inflation_bond_valuation.md b/en/pedia/z/zero_inflation_bond_valuation.md index 0687b19e..fea15fd2 100644 --- a/en/pedia/z/zero_inflation_bond_valuation.md +++ b/en/pedia/z/zero_inflation_bond_valuation.md @@ -1,11 +1,11 @@ # Zero Inflation Bond Valuation ### Introduction -Zero [Inflation](../i/inflation.md) Bonds, also known as [Inflation](../i/inflation.md)-Indexed Bonds or [Inflation-Linked Bonds](../i/inflation-linked_bonds.md) (ILBs), are a type of [fixed-income security](../f/fixed-income_security.md) designed to protect investors from [inflation](../i/inflation.md). Unlike traditional bonds, which pay a fixed [nominal interest rate](../n/nominal_interest_rate.md), the [principal](../p/principal.md) and [interest](../i/interest.md) payments of Zero [Inflation](../i/inflation.md) Bonds are adjusted for [inflation](../i/inflation.md), typically linked to a widely recognized [inflation](../i/inflation.md) [index](../i/index.md) such as the Consumer Price [Index](../i/index.md) (CPI). This ensures that the [purchasing power](../p/purchasing_power.md) of the [bond](../b/bond.md)'s returns remains stable, regardless of inflationary pressures. +Zero [Inflation](../i/inflation.md) Bonds, also known as [Inflation](../i/inflation.md)-Indexed Bonds or [Inflation-Linked Bonds](../i/inflation-linked_bonds.md) (ILBs), are a type of [fixed-income security](../f/fixed-income_security.md) designed to protect investors from [inflation](../i/inflation.md). Unlike traditional bonds, which pay a fixed [nominal interest rate](../n/nominal_interest_rate.md), the [principal](../p/principal.md) and [interest](../i/interest.md) payments of Zero [Inflation](../i/inflation.md) Bonds are adjusted for [inflation](../i/inflation.md), typically linked to a widely recognized [inflation](../i/inflation.md) [index](../i/index_instrument.md) such as the Consumer Price [Index](../i/index_instrument.md) (CPI). This ensures that the [purchasing power](../p/purchasing_power.md) of the [bond](../b/bond.md)'s returns remains stable, regardless of inflationary pressures. ### Characteristics of Zero Inflation Bonds Zero [Inflation](../i/inflation.md) Bonds have several distinctive characteristics: -1. **[Principal](../p/principal.md) Adjustment**: The [bond](../b/bond.md)'s [principal](../p/principal.md) is adjusted periodically based on changes in the [inflation](../i/inflation.md) [index](../i/index.md). +1. **[Principal](../p/principal.md) Adjustment**: The [bond](../b/bond.md)'s [principal](../p/principal.md) is adjusted periodically based on changes in the [inflation](../i/inflation.md) [index](../i/index_instrument.md). 2. **Fixed Real [Coupon Rate](../c/coupon_rate.md)**: The [coupon rate](../c/coupon_rate.md) is fixed, but the [interest](../i/interest.md) [payment](../p/payment.md) is based on the [inflation](../i/inflation.md)-adjusted [principal](../p/principal.md). 3. **[Inflation](../i/inflation.md) Compensation**: Investors receive compensation for [inflation](../i/inflation.md) through adjustments to both the [principal](../p/principal.md) and coupon payments. 4. **[Deflation](../d/deflation.md) Protection**: Many Zero [Inflation](../i/inflation.md) Bonds provide a floor on the [principal](../p/principal.md), usually at the original amount, protecting against [deflation](../d/deflation.md). @@ -41,7 +41,7 @@ Where: ### Factors Influencing Zero Inflation Bond Valuation Several factors can influence the [valuation](../v/valuation.md) of Zero [Inflation](../i/inflation.md) Bonds: -1. **[Inflation](../i/inflation.md) [Index](../i/index.md)**: The choice of [inflation](../i/inflation.md) [index](../i/index.md) (e.g., CPI) influences the adjustment of the [principal](../p/principal.md) and [interest](../i/interest.md) payments. +1. **[Inflation](../i/inflation.md) [Index](../i/index_instrument.md)**: The choice of [inflation](../i/inflation.md) [index](../i/index_instrument.md) (e.g., CPI) influences the adjustment of the [principal](../p/principal.md) and [interest](../i/interest.md) payments. 2. **[Inflation](../i/inflation.md) Expectations**: Persistent deviations in [inflation](../i/inflation.md) expectations can significantly affect the [bond](../b/bond.md)'s [valuation](../v/valuation.md). 3. **Real [Interest](../i/interest.md) Rates**: Changes in real [interest](../i/interest.md) rates directly impact the [discounting](../d/discounting.md) of future real cash flows. 4. **[Economic Conditions](../e/economic_conditions.md)**: Macroeconomic variables such as [economic growth](../e/economic_growth.md), [monetary policy](../m/monetary_policy.md), and [fiscal policy](../f/fiscal_policy.md) can influence both [inflation](../i/inflation.md) expectations and real [interest](../i/interest.md) rates. @@ -58,7 +58,7 @@ Zero [Inflation](../i/inflation.md) Bonds are utilized for various purposes: Zero [Inflation](../i/inflation.md) Bonds are primarily issued by sovereign governments, with the United States, United Kingdom, and certain [Eurozone](../e/eurozone.md) countries being notable issuers. Prominent examples include: - **[U.S. Treasury](../u/u.s._treasury.md) [Inflation-Protected Securities](../i/inflation-protected_securities.md) (TIPS)**: Issued by the U.S. Department of the Treasury (https://www.treasurydirect.gov/). -- **UK [Index](../i/index.md)-Linked [Gilts](../g/gilts.md)**: Issued by the UK [Debt](../d/debt.md) Management Office (https://www.dmo.gov.uk/). +- **UK [Index](../i/index_instrument.md)-Linked [Gilts](../g/gilts.md)**: Issued by the UK [Debt](../d/debt.md) Management Office (https://www.dmo.gov.uk/). - **[Eurozone](../e/eurozone.md) [Inflation-Linked Bonds](../i/inflation-linked_bonds.md)**: Issued by various countries within the [Eurozone](../e/eurozone.md). ### Conclusion diff --git a/en/pedia/z/zero_inflation_strategy.md b/en/pedia/z/zero_inflation_strategy.md index d39ceb96..9c87276f 100644 --- a/en/pedia/z/zero_inflation_strategy.md +++ b/en/pedia/z/zero_inflation_strategy.md @@ -6,7 +6,7 @@ The concept of a zero-[inflation](../i/inflation.md) strategy in the context of ### Understanding Inflation -[Inflation](../i/inflation.md) is the rate at which the general level of prices for goods and services rises, thereby eroding [purchasing power](../p/purchasing_power.md). Central banks attempt to limit [inflation](../i/inflation.md)—and avoid [deflation](../d/deflation.md)—in [order](../o/order.md) to keep the [economy](../e/economy.md) running smoothly. [Inflation](../i/inflation.md) has a direct impact on every aspect of the [economy](../e/economy.md), including trading and investment decisions. The Consumer Price [Index](../i/index.md) (CPI) is often used as a [benchmark](../b/benchmark.md) for measuring [inflation](../i/inflation.md). +[Inflation](../i/inflation.md) is the rate at which the general level of prices for goods and services rises, thereby eroding [purchasing power](../p/purchasing_power.md). Central banks attempt to limit [inflation](../i/inflation.md)—and avoid [deflation](../d/deflation.md)—in [order](../o/order.md) to keep the [economy](../e/economy.md) running smoothly. [Inflation](../i/inflation.md) has a direct impact on every aspect of the [economy](../e/economy.md), including trading and investment decisions. The Consumer Price [Index](../i/index_instrument.md) (CPI) is often used as a [benchmark](../b/benchmark.md) for measuring [inflation](../i/inflation.md). ### The Role of Central Banks @@ -41,7 +41,7 @@ Dynamic [asset allocation](../a/asset_allocation.md) is a strategy that adjusts #### Inflation Indicators and Forecasting -Sophisticated algorithms integrate various [inflation](../i/inflation.md) indicators such as CPI data, producer price [index](../i/index.md) (PPI), [commodity](../c/commodity.md) prices, and central [bank](../b/bank.md) policies. [Predictive modeling](../p/predictive_modeling.md) using machine learning can forecast potential inflationary trends, enabling preemptive adjustments to [trading strategies](../t/trading_strategies.md). +Sophisticated algorithms integrate various [inflation](../i/inflation.md) indicators such as CPI data, producer price [index](../i/index_instrument.md) (PPI), [commodity](../c/commodity.md) prices, and central [bank](../b/bank.md) policies. [Predictive modeling](../p/predictive_modeling.md) using machine learning can forecast potential inflationary trends, enabling preemptive adjustments to [trading strategies](../t/trading_strategies.md). ### Example: Algorithmic Framework for Zero Inflation Strategy diff --git a/en/pedia/z/zero_inflation_yield_analysis.md b/en/pedia/z/zero_inflation_yield_analysis.md index a23f3414..e67423e0 100644 --- a/en/pedia/z/zero_inflation_yield_analysis.md +++ b/en/pedia/z/zero_inflation_yield_analysis.md @@ -6,7 +6,7 @@ Zero [inflation](../i/inflation.md) [yield analysis](../y/yield_analysis.md) is Before diving into zero [inflation](../i/inflation.md) [yield analysis](../y/yield_analysis.md), it is essential to have a basic understanding of what [inflation](../i/inflation.md) is. [Inflation](../i/inflation.md) refers to the rate at which the general [price level](../p/price_level.md) of goods and services in an [economy](../e/economy.md) increases over time, leading to a decrease in the [purchasing power](../p/purchasing_power.md) of [money](../m/money.md). In other words, as [inflation](../i/inflation.md) rises, each unit of [currency](../c/currency.md) buys fewer goods and services. -[Inflation](../i/inflation.md) is generally measured by indices such as the Consumer Price [Index](../i/index.md) (CPI) or the Producer Price [Index](../i/index.md) (PPI). These indices track the changes in prices of a [basket of goods](../b/basket_of_goods.md) and services over time. +[Inflation](../i/inflation.md) is generally measured by indices such as the Consumer Price [Index](../i/index_instrument.md) (CPI) or the Producer Price [Index](../i/index_instrument.md) (PPI). These indices track the changes in prices of a [basket of goods](../b/basket_of_goods.md) and services over time. ## Real vs. Nominal Yield diff --git a/en/pedia/z/zero_inflation_yield_curve.md b/en/pedia/z/zero_inflation_yield_curve.md index 389ff474..aa11f9a6 100644 --- a/en/pedia/z/zero_inflation_yield_curve.md +++ b/en/pedia/z/zero_inflation_yield_curve.md @@ -84,7 +84,7 @@ To illustrate the practical application of the ZIYC, let's consider TIPS, which ### Pricing TIPS Using the ZIYC -The price of a TIPS [bond](../b/bond.md) can be modeled using the real [yield curve](../y/yield_curve.md). The real [yield](../y/yield.md) of TIPS is derived from the ZIYC, and the [bond](../b/bond.md)'s price is adjusted for [inflation](../i/inflation.md) based on the Consumer Price [Index](../i/index.md) (CPI). By [discounting](../d/discounting.md) the [inflation](../i/inflation.md)-adjusted cash flows using the real [yield curve](../y/yield_curve.md), the fair price of a TIPS [bond](../b/bond.md) can be determined. +The price of a TIPS [bond](../b/bond.md) can be modeled using the real [yield curve](../y/yield_curve.md). The real [yield](../y/yield.md) of TIPS is derived from the ZIYC, and the [bond](../b/bond.md)'s price is adjusted for [inflation](../i/inflation.md) based on the Consumer Price [Index](../i/index_instrument.md) (CPI). By [discounting](../d/discounting.md) the [inflation](../i/inflation.md)-adjusted cash flows using the real [yield curve](../y/yield_curve.md), the fair price of a TIPS [bond](../b/bond.md) can be determined. ### Inflation Breakeven Rate diff --git a/en/pedia/z/zero_investment_strategy.md b/en/pedia/z/zero_investment_strategy.md index aa7622ec..634241e1 100644 --- a/en/pedia/z/zero_investment_strategy.md +++ b/en/pedia/z/zero_investment_strategy.md @@ -12,7 +12,7 @@ A Zero [Investment Strategy](../i/investment_strategy.md) primarily relies on th #### Hedging -Hedging is a [risk management](../r/risk_management.md) strategy used to [offset](../o/offset.md) potential losses in one [security](../s/security.md) by taking an opposite position in a related [security](../s/security.md). In a zero [investment strategy](../i/investment_strategy.md), hedging helps in neutralizing [market exposure](../m/market_exposure.md). For example, if a [trader](../t/trader.md) is long on a stock, they might short a related [index](../i/index.md) or another stock in the same [industry](../i/industry.md) to mitigate [risk](../r/risk.md). This effectively results in a net zero investment while reducing the [risk](../r/risk.md) of adverse [market](../m/market.md) movements. +Hedging is a [risk management](../r/risk_management.md) strategy used to [offset](../o/offset.md) potential losses in one [security](../s/security.md) by taking an opposite position in a related [security](../s/security.md). In a zero [investment strategy](../i/investment_strategy.md), hedging helps in neutralizing [market exposure](../m/market_exposure.md). For example, if a [trader](../t/trader.md) is long on a stock, they might short a related [index](../i/index_instrument.md) or another stock in the same [industry](../i/industry.md) to mitigate [risk](../r/risk.md). This effectively results in a net zero investment while reducing the [risk](../r/risk.md) of adverse [market](../m/market.md) movements. #### Market Neutral Strategy diff --git a/en/pedia/z/zero_rate_investment_strategies.md b/en/pedia/z/zero_rate_investment_strategies.md index 07fa99fc..556d0411 100644 --- a/en/pedia/z/zero_rate_investment_strategies.md +++ b/en/pedia/z/zero_rate_investment_strategies.md @@ -46,7 +46,7 @@ Commodities such as gold and silver can serve as a [hedge](../h/hedge.md) agains [Carry trade](../c/carry_trade.md) involves borrowing funds in low-[interest](../i/interest.md)-rate currencies to invest in high-yielding assets. This strategy can be profitable in a [zero interest rate environment](../z/zero_interest_rate_environment.md) but carries [currency](../c/currency.md) [risk](../r/risk.md). #### Leveraged ETFs -Leveraged [Exchange](../e/exchange.md)-Traded Funds (ETFs) use financial [derivatives](../d/derivatives.md) to amplify the returns of the [underlying](../u/underlying.md) [index](../i/index.md). While they [offer](../o/offer.md) potential for higher gains, [leveraged ETFs](../l/leveraged_etfs.md) also come with increased [volatility](../v/volatility.md) and [risk](../r/risk.md). +Leveraged [Exchange](../e/exchange.md)-Traded Funds (ETFs) use financial [derivatives](../d/derivatives.md) to amplify the returns of the [underlying](../u/underlying.md) [index](../i/index_instrument.md). While they [offer](../o/offer.md) potential for higher gains, [leveraged ETFs](../l/leveraged_etfs.md) also come with increased [volatility](../v/volatility.md) and [risk](../r/risk.md). ### Derivatives #### Options diff --git a/en/pedia/z/zew_indicator_of_economic_sentiment.md b/en/pedia/z/zew_indicator_of_economic_sentiment.md index d38eab5b..20132d59 100644 --- a/en/pedia/z/zew_indicator_of_economic_sentiment.md +++ b/en/pedia/z/zew_indicator_of_economic_sentiment.md @@ -1,6 +1,6 @@ # ZEW Indicator of Economic Sentiment -The ZEW [Indicator](../i/indicator.md) of Economic Sentiment is a prominent financial [index](../i/index.md) that gauges economic expectations for Germany on a six-month outlook. It is widely used by investors, policymakers, and analysts to get an early sense of economic trends and potential turning points. The [indicator](../i/indicator.md) is derived from a survey of financial experts, making it a measure of professional sentiment rather than hard economic data. +The ZEW [Indicator](../i/indicator.md) of Economic Sentiment is a prominent financial [index](../i/index_instrument.md) that gauges economic expectations for Germany on a six-month outlook. It is widely used by investors, policymakers, and analysts to get an early sense of economic trends and potential turning points. The [indicator](../i/indicator.md) is derived from a survey of financial experts, making it a measure of professional sentiment rather than hard economic data. ## Overview and Importance @@ -64,9 +64,9 @@ Similarly, during the [Eurozone](../e/eurozone.md) [debt](../d/debt.md) crisis, The ZEW [Indicator](../i/indicator.md) is often compared with other sentiment and confidence indicators, such as: -- **IFO [Business](../b/business.md) Climate [Index](../i/index.md)**: Another leading [economic indicator](../e/economic_indicator.md) for Germany, it reflects the sentiments of companies rather than financial experts. The IFO [index](../i/index.md) is based on responses from firms regarding their current [business](../b/business.md) situation and expectations for the next six months. +- **IFO [Business](../b/business.md) Climate [Index](../i/index_instrument.md)**: Another leading [economic indicator](../e/economic_indicator.md) for Germany, it reflects the sentiments of companies rather than financial experts. The IFO [index](../i/index_instrument.md) is based on responses from firms regarding their current [business](../b/business.md) situation and expectations for the next six months. -- **Sentix Economic [Index](../i/index.md)**: This [indicator](../i/indicator.md) also captures sentiment but covers a broader [range](../r/range.md) of financial [market](../m/market.md) participants, including private and institutional investors across the [Eurozone](../e/eurozone.md). +- **Sentix Economic [Index](../i/index_instrument.md)**: This [indicator](../i/indicator.md) also captures sentiment but covers a broader [range](../r/range.md) of financial [market](../m/market.md) participants, including private and institutional investors across the [Eurozone](../e/eurozone.md). - **Economic Sentiment [Indicator](../i/indicator.md) (ESI)**: Published by the European [Commission](../c/commission.md), the ESI aggregates sentiment from various sectors, including [industry](../i/industry.md), services, consumers, retail, and construction, providing a comprehensive view of economic confidence within the [European Union](../e/european_union_(eu).md). diff --git a/en/pedia/z/zig_zag_indicator.md b/en/pedia/z/zig_zag_indicator.md index e9e7860d..1e7d5780 100644 --- a/en/pedia/z/zig_zag_indicator.md +++ b/en/pedia/z/zig_zag_indicator.md @@ -37,7 +37,7 @@ By identifying significant peaks and troughs, the Zig Zag [indicator](../i/indic The Zig Zag [indicator](../i/indicator.md) can be used alongside other [technical indicators](../t/technical_indicator.md) to build more [robust](../r/robust.md) [trading strategies](../t/trading_strategies.md). For example: -- **[Relative Strength](../r/relative_strength.md) [Index](../i/index.md) (RSI):** When the Zig Zag line indicates a potential [reversal](../r/reversal.md), checking the RSI can confirm whether the [security](../s/security.md) is [overbought](../o/overbought.md) or [oversold](../o/oversold.md). +- **[Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md) (RSI):** When the Zig Zag line indicates a potential [reversal](../r/reversal.md), checking the RSI can confirm whether the [security](../s/security.md) is [overbought](../o/overbought.md) or [oversold](../o/oversold.md). - **Moving Averages:** To get a clearer picture of the [trend](../t/trend.md), combining the Zig Zag [indicator](../i/indicator.md) with moving averages can [offer](../o/offer.md) precise entry and exit points. ### Automated Trading Systems (Algorithmic Trading) @@ -81,7 +81,7 @@ Most trading platforms [offer](../o/offer.md) the Zig Zag [indicator](../i/indic ### Case Study 1: Trend Identification -A [trader](../t/trader.md) using a 10% threshold Zig Zag [indicator](../i/indicator.md) identified a clear upward [trend](../t/trend.md) in the S&P 500 [index](../i/index.md) over a six-month period. The [indicator](../i/indicator.md) highlighted three prominent [retracement](../r/retracement.md) points, each aligning closely with 50% and 61.8% [Fibonacci retracement](../f/fibonacci_retracement.md) levels. Each [retracement](../r/retracement.md) provided a potential buying opportunity, which was confirmed by complementary indicators like the moving average convergence [divergence](../d/divergence.md) (MACD). +A [trader](../t/trader.md) using a 10% threshold Zig Zag [indicator](../i/indicator.md) identified a clear upward [trend](../t/trend.md) in the S&P 500 [index](../i/index_instrument.md) over a six-month period. The [indicator](../i/indicator.md) highlighted three prominent [retracement](../r/retracement.md) points, each aligning closely with 50% and 61.8% [Fibonacci retracement](../f/fibonacci_retracement.md) levels. Each [retracement](../r/retracement.md) provided a potential buying opportunity, which was confirmed by complementary indicators like the moving average convergence [divergence](../d/divergence.md) (MACD). ### Case Study 2: Algorithmic Trading diff --git a/en/pedia/z/zimbabwe_stock_exchange_(zse).md b/en/pedia/z/zimbabwe_stock_exchange_(zse).md index 578ae517..07513c95 100644 --- a/en/pedia/z/zimbabwe_stock_exchange_(zse).md +++ b/en/pedia/z/zimbabwe_stock_exchange_(zse).md @@ -113,7 +113,7 @@ The average daily trading [volume](../v/volume.md) on the ZSE has seen consisten ### Index Performance -The ZSE maintains various indices to track [market](../m/market.md) performance, the most notable being the Zimbabwe Industrial [Index](../i/index.md) (ZSE-IND) and Zimbabwe [Mining](../m/mining.md) [Index](../i/index.md) (ZSE-MIN). These indices [offer](../o/offer.md) insights into sectoral performance and [market](../m/market.md) trends. +The ZSE maintains various indices to track [market](../m/market.md) performance, the most notable being the Zimbabwe Industrial [Index](../i/index_instrument.md) (ZSE-IND) and Zimbabwe [Mining](../m/mining.md) [Index](../i/index_instrument.md) (ZSE-MIN). These indices [offer](../o/offer.md) insights into sectoral performance and [market](../m/market.md) trends. ## Protocols for Algorithmic Trading diff --git a/en/pedia/z/zombie_etf.md b/en/pedia/z/zombie_etf.md index 93e0cd2e..901ac648 100644 --- a/en/pedia/z/zombie_etf.md +++ b/en/pedia/z/zombie_etf.md @@ -41,7 +41,7 @@ ETFs that do not align with current [investor](../i/investor.md) needs and prefe Investors holding [shares](../s/shares.md) in Zombie ETFs may face several challenges: 1. **[Liquidity](../l/liquidity.md) Issues:** Low trading volumes can result in wide [bid](../b/bid.md)-ask [spreads](../s/spreads.md), increasing the cost of buying or selling [shares](../s/shares.md). -2. **Tracking Errors:** Zombie ETFs may experience larger tracking errors, where the [fund](../f/fund.md)'s performance deviates from its [benchmark](../b/benchmark.md) [index](../i/index.md), due to difficulties in managing low [asset](../a/asset.md) levels. +2. **Tracking Errors:** Zombie ETFs may experience larger tracking errors, where the [fund](../f/fund.md)'s performance deviates from its [benchmark](../b/benchmark.md) [index](../i/index_instrument.md), due to difficulties in managing low [asset](../a/asset.md) levels. 3. **[Risk](../r/risk.md) of Closure:** These ETFs are at a higher [risk](../r/risk.md) of closure or [liquidation](../l/liquidation.md), which can result in tax implications and the need to reinvest proceeds elsewhere. ### On Fund Managers diff --git a/en/pedia/z/zone_of_resistance.md b/en/pedia/z/zone_of_resistance.md index be20000e..071fc5c3 100644 --- a/en/pedia/z/zone_of_resistance.md +++ b/en/pedia/z/zone_of_resistance.md @@ -36,7 +36,7 @@ A [breakout](../b/breakout.md) strategy involves entering a [trade](../t/trade.m A [reversal](../r/reversal.md) strategy entails taking a short position when the price approaches a known resistance zone, anticipating a price decline. - **Entry Point**: Entering the [trade](../t/trade.md) near the upper boundary of the resistance zone. -- **Confirmation**: Verifying through indicators like RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index.md)) that the [asset](../a/asset.md) is [overbought](../o/overbought.md). +- **Confirmation**: Verifying through indicators like RSI ([Relative Strength](../r/relative_strength.md) [Index](../i/index_instrument.md)) that the [asset](../a/asset.md) is [overbought](../o/overbought.md). - **[Profit](../p/profit.md) Targets**: Setting [profit](../p/profit.md) targets near previous [support levels](../s/support_levels.md). ### Range-Bound Strategy diff --git a/en/pedia/z/zone_of_support.md b/en/pedia/z/zone_of_support.md index 46d5e819..903059fe 100644 --- a/en/pedia/z/zone_of_support.md +++ b/en/pedia/z/zone_of_support.md @@ -32,7 +32,7 @@ In [algorithmic trading](../a/accountability.md), integrating support zones can - **Machine Learning Models**: Advanced models can be trained to identify support zones based on historical data and [market](../m/market.md) conditions, improving predictive capabilities. ### Real-World Example -Consider the S&P 500 [index](../i/index.md), which has historically shown strong support at certain levels, such as the 2000-point [range](../r/range.md). During [market](../m/market.md) corrections, traders and algorithms alike monitor these zones closely for potential buy opportunities. +Consider the S&P 500 [index](../i/index_instrument.md), which has historically shown strong support at certain levels, such as the 2000-point [range](../r/range.md). During [market](../m/market.md) corrections, traders and algorithms alike monitor these zones closely for potential buy opportunities. ## Tools and Resources