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Hedge fund and Risk parity

Shortcuts: Differences, Similarities, Jaccard Similarity Coefficient, References.

Difference between Hedge fund and Risk parity

Hedge fund vs. Risk parity

A hedge fund is an investment fund that pools capital from accredited individuals or institutional investors and invests in a variety of assets, often with complex portfolio-construction and risk-management techniques. Risk parity (or risk premia parity) is an approach to investment portfolio management which focuses on allocation of risk, usually defined as volatility, rather than allocation of capital.

Similarities between Hedge fund and Risk parity

Hedge fund and Risk parity have 9 things in common (in Unionpedia): Bridgewater Associates, Dot-com bubble, Financial crisis of 2007–2008, Financial Times, Hedge (finance), Leverage (finance), Modern portfolio theory, Sharpe ratio, Stock.

Bridgewater Associates

Bridgewater Associates is an American investment management firm founded by Ray Dalio in 1975.

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Dot-com bubble

The dot-com bubble (also known as the dot-com boom, the dot-com crash, the Y2K crash, the Y2K bubble, the tech bubble, the Internet bubble, the dot-com collapse, and the information technology bubble) was a historic economic bubble and period of excessive speculation that occurred roughly from 1997 to 2001, a period of extreme growth in the usage and adaptation of the Internet.

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Financial crisis of 2007–2008

The financial crisis of 2007–2008, also known as the global financial crisis and the 2008 financial crisis, is considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s.

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Financial Times

The Financial Times (FT) is a Japanese-owned (since 2015), English-language international daily newspaper headquartered in London, with a special emphasis on business and economic news.

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Hedge (finance)

A hedge is an investment position intended to offset potential losses or gains that may be incurred by a companion investment.

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Leverage (finance)

In finance, leverage (sometimes referred to as gearing in the United Kingdom and Australia) is any technique involving the use of borrowed funds in the purchase of an asset, with the expectation that the after tax income from the asset and asset price appreciation will exceed the borrowing cost.

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Modern portfolio theory

Modern portfolio theory (MPT), or mean-variance analysis, is a mathematical framework for assembling a portfolio of assets such that the expected return is maximized for a given level of risk.

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Sharpe ratio

In finance, the Sharpe ratio (also known as the Sharpe index, the Sharpe measure, and the reward-to-variability ratio) is a way to examine the performance of an investment by adjusting for its risk.

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Stock

The stock (also capital stock) of a corporation is constituted of the equity stock of its owners.

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The list above answers the following questions

Hedge fund and Risk parity Comparison

Hedge fund has 259 relations, while Risk parity has 46. As they have in common 9, the Jaccard index is 2.95% = 9 / (259 + 46).

References

This article shows the relationship between Hedge fund and Risk parity. To access each article from which the information was extracted, please visit:

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