This is a summary of links featured on Quantocracy on Monday, 09/18/2023. To see our most recent links, visit the Quant Mashup. Read on readers!
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Analysis of Price-Based Quantitative Strategies for Country Valuation [Quantpedia]Value investing originated as an investment strategy in which investors try to beat the stock market by looking for stocks that trade at a price below their intrinsic value or book value. Value investors do not subscribe to the efficient-market hypothesis, which suggests that stock prices always reflect their intrinsic value. Instead, value investors believe stocks can be overvalued or undervalued
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A New Wolf in Town? Pump-and-Dump Manipulation in Cryptocurrency Markets [Alpha Architect]Pump-and-Dump (P&D) schemes to manipulate the prices of cryptocurrencies are unlike the P&D schemes found in the equity market. They produce very large price distortions on the order of 65%, very large trading volumes of 13.5x the average, and generate very large profits to cryptocurrency manipulators. They target illiquid coins but only have temporary, short-term impact on prices. In
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Don’t Convert to Convertible Bonds [Finominal]Convertible bonds are typically viewed as debt rather than equity instruments However, these are highly correlated to equities The diversification benefits are limited as these just represent diluted equity proxies INTRODUCTION Lets say youre the CEO of a small listed company that isnt doing well. The stock price of your company is depressed, so issuing equity would be highly dilutive.