Minimum Turbulence Portfolio

Sergey Okun  This article was written by Sergey Okun – Senior Financial Analyst, I Know First, Ph.D. in Economics.

Summary:

  • Economic shocks cause systemic structural changes in financial markets which are expressed in changes in connection between financial assets.
  • Mahalanobis Distance enables us to estimate stock market turbulence.
  • I Know First can help to find the most appropriate assets according to the current macroeconomic environment and systemic structural changes in financial markets.

premiumRead The Full Premium Article

Subscribe to receive exclusive PREMIUM content here

Hedge and Safe Haven Financial Assets

Sergey Okun  This article was written by Sergey Okun – Senior Financial Analyst, I Know First, Ph.D. in Economics.

Summary:

  • Gold, short-term treasury bills, long-term treasury bonds, the spread between the long-term treasury and corporate bonds, 5-month volatility, and 1-month volatility are uncorrelated or negatively correlated with the S&P500 making them good candidates for a role of a hedge asset.
  • 5-month and 1-month volatility as exchange trade products, and also the short-term government bills and long-term government bonds able to play a role of a safe haven asset.
  • Correlation analysis of the S&P500 and TNX shows that the correlation structure is not consistent from data frame to data frame.

premiumRead The Full Premium Article

Subscribe to receive exclusive PREMIUM content here

Interest Rate Predictions Based On Big Data: Up To 8.94% Returns in 14 days

Time Horizon: 14 days (9/15/15 – 9/29/15)
I Know First Average: 0.64% (Long) & 3.67% (Short)

Read The Full Forecast

Interest Rate Predictions Based On Big Data