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"Don't assume an investment will continue to do well in the future simply because it's done well in the past."
by latchkey 3y ago
"Don't assume an investment will continue to do well in the future simply because it's done well in the past."
- vgatherps 3y agoStatistical arbitrage trades don't tend to be like "yolo long these great stocks today" unless you have access to information very few other players do (and even then you try and only gain exposure to the factors you are informed about). They tend to trade complex relationships between many assets in a universe, like if your universe of assets has moved in a way that's out-of-line with how the assets tend to move together.