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Statistical arbitrage is a version of a ______ strategy. A. relative value B. directional C. divergence D. market neutral

Sagot :

Statistical arbitrage is a version of a market neutral strategy.

What is a market neutral strategy?

A market-neutral strategy is a type of investment strategy that seeks to profit from both increasing and decreasing prices in one or more markets while attempting to completely avoid some specific form of market risk.

  • Known as a market-neutral strategy, the investment selections seek to avoid significant losses
  • The long and short positions serve as a hedge to one another.
  • The two main types of market-neutral strategies are fundamental arbitrage and statistical arbitrage.
  • The main investment objective is absolute returns rather than relative returns.

Learn more about market neutral strategy here:

https://brainly.com/question/7302899

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Statistical arbitrage is a version of a market-neutral strategy. So the correct answer is an option (D) i.e. market neutral.

What is a market-neutral strategy?

  • A market-neutral strategy is a type of investment strategy that seeks to profit from both increasing and decreasing prices in one or more markets while attempting to completely avoid some specific form of market risk.
  • Known as a market-neutral strategy, the investment selections seek to avoid significant losses
  • The long and short positions serve as a hedge to one another.
  • The two main types of market-neutral strategies are fundamental arbitrage and statistical arbitrage.
  • The main investment objective is absolute returns rather than relative returns.

Learn more about market neutral strategy here:

brainly.com/question/7302899

#SPJ4

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