Condor Options | Tag Archive

Tag Archive | "crash"

Beta and Risk in Troubled Markets, Part 2

Friday, January 16, 2009

In this mini-series, we’re examining the value of beta as a measurement of risk. In this post, we want to examine how the betas of some popular stocks, indexes, and ETFs changed during 2008 and especially during the fall crash. First, we should clarify exactly what we’re measuring. What is beta? Beta is metric that describes the systemic risk of an asset or portfolio. Because it is not possible to alleviate all risk by simple diversification, investors and traders…

Keeping Our Heads Down

Tuesday, September 30, 2008

Comments Off

While we’ve been communicating more actively than usual with subscribers, things have been somewhat quieter here on the free part of the site. The reason? We don’t expect historical and statistical studies to be nearly as helpful in a market environment like this one. And since we don’t have any unique insight into the likelihood of various political and economic events coming to pass, we figure your RSS reader or pony express boy or whatever is already loaded with…