Strategies

Cointegration Strategy A trading strategy that exploits mean-reverting relationships between correlated assets that share a long-term equilibrium.

Combining Momentum, Quality, and Value in a Multi-Factor Portfolio How blending momentum with quality and value factors reduces timing risk, smooths returns, and captures complementary premiums in a multi-factor portfolio.

Combining Value and Momentum Factors in One Portfolio Value and momentum factors have low or negative correlation, allowing blended portfolios to reduce drawdowns and volatility while maintaining competitive expected returns.

Commodity Sector Rotation Tactical reallocation among energy, precious metals, and agricultural commodities as macroeconomic cycles and supply shocks shift demand.

Composite Factor Score Construction How quantitative managers build composite factor scores by standardizing, weighting, and aggregating signals into single ranks for multi-factor portfolios.

Compounder Investing A long-term strategy that buys and holds high-return-on-capital businesses reinvesting their earnings for decades of exponential wealth creation.

Concentrated Portfolio Construction Building a portfolio with a small number of high-conviction positions to amplify the impact of one's best ideas.

Concentrated vs Diversified Portfolio The trade-offs between concentrated and diversified portfolios: risk, return, tax efficiency, and the skill required to pick winners.

Conditional Factor Exposures Across Market Regimes How factor loadings shift across economic regimes: value, momentum, and quality perform differently in growth vs. inflationary environments. Dynamic regime-aware allocation outperforms static weights.

Constant Proportion Portfolio Insurance A dynamic rebalancing rule that increases exposure to risky assets as the portfolio value rises above a specified floor.

Constructive Sale Rule Tax rule triggering gain recognition when substantially identical position is taken while holding original position

Contrarian investing Contrarian investing is a strategy of taking positions opposite to the prevailing market consensus, betting that the crowd is wrong about a stock, sector, or asset class.

Contrarian Investing Strategy How contrarian investing deliberately positions against prevailing market sentiment, using behavioral finance to find overlooked value.

Contrarian Rotational Strategy A systematic approach that rotates capital into underperforming sectors expecting mean reversion and price recovery.

Contrarian Trading A strategy of deliberately opposing consensus sentiment—buying when others panic and selling when others are euphoric—betting that sentiment extremes reverse.

Convexity Overlay A portfolio technique using options or long-volatility positions to generate positive payoffs in extreme market moves while accepting smaller drag in stable conditions.

Copula Dependence Strategy A quantitative hedging approach using copula functions to model joint tail-risk dependencies between assets, enabling targeted protection during market stress.

Core-satellite portfolio A core-satellite portfolio combines a passive index-fund core with actively-managed satellite positions, balancing stability and low costs of passive investing with upside potential of active management.

Core-Satellite Strategy A hybrid approach balancing a large low-cost index-fund core with smaller active positions, aiming for diversification, cost efficiency, and targeted alpha.

Correlation Diversification A portfolio technique that selects assets to minimise pairwise correlations, reducing portfolio volatility below the average of individual holdings.

Country Rotation Within Developed Markets How investors systematically rotate among individual developed nations based on valuation spreads, interest rates, and currency factors.

Credit Cycle Rotation: Shifting Between Investment-Grade and High-Yield How fixed-income investors systematically move between investment-grade bonds, high-yield bonds, and cash as credit spreads widen and compress through the economic cycle.

Cross Asset Momentum A quantitative strategy that applies momentum signals across multiple asset classes—stocks, bonds, commodities, and currencies—based on recent price trends.

Cross-Sectional Momentum Ranking assets by past returns within a fixed universe to go long recent winners and short recent losers at each rebalance period.

Cross-Sectional Momentum vs Time-Series Momentum Cross-sectional momentum ranks assets against each other (buy best performers); time-series momentum trades an asset against its own history (buy if above trend). Each generates different risk profiles.

Currency Hedging in International Equity Allocation Analyze whether to hedge currency exposure in international equity portfolios: return impact, volatility reduction, costs, time horizon, and when hedging adds or detracts value.

Currency Rotation Strategic reallocation across currency blocs and hedged sleeves in response to macroeconomic shifts and interest rate differentials.

Customer Concentration Risk in Growth Stocks Why growth companies deriving large revenue shares from few customers face binary risk and multiple compression despite strong growth metrics.

Cyclical Value Timing Strategy of purchasing cyclical stocks at the bottom of business cycle downturns when valuations are depressed.

Cyclical vs Defensive Rotation Shifting between economic-sensitive and stable stocks based on business cycle phases and macroeconomic outlook.

Data Snooping Bias in Quantitative Research How repeated testing on historical data inflates apparent performance metrics in quant trading strategies and what corrective techniques work.

Day trading Day trading is a strategy of buying and selling securities intraday, opening and closing positions within a single trading session to avoid overnight risk and exploit minute-by-minute price movements.

Dead Cat Bounce Trading Strategy A dead cat bounce is a brief recovery in a falling asset before resuming decline; traders exploit it to short or hedge positions.

Deep Moat Investing Focusing on companies with durable competitive advantages that persist despite competitor entry.

Deep Value Investing Explained Deep value investing targets severely distressed assets trading far below intrinsic value, often with high bankruptcy risk—a contrarian strategy that demands patience and losing years.

Deep-value investing Deep-value investing is an extreme form of value investing that hunts for stocks trading at severe discounts, often with minimal upside catalysts, betting on contrarian mean reversion.

Defensive Factor The cluster of low-volatility, high-quality attributes that generate equity returns with bond-like downside behaviour.

Defensive Investing Strategy Explained Learn how defensive investing strategy prioritizes capital preservation and income through recession-resistant sectors and steady dividend payers.

Defensive Rotation in a Bear Market How investors shift from cyclical to defensive sectors—utilities, consumer staples, healthcare—during bear markets and sustained downtrends.

Dispersion Trading A volatility arbitrage selling index variance while buying single-stock variance to exploit correlation overpricing in options markets.

Distressed Value Opportunities Buying beaten-down companies facing temporary financial or operational headwinds at deeply discounted valuations.

Diversification Diversification is the practice of holding a mix of investments whose mistakes are not the same mistake. It is the only free lunch in finance—reducing risk without requiring higher returns.

Dividend Factor Investing Investment strategies based on selecting stocks by dividend yield, focusing on high-yielding, stable payers.

Dividend Growth Investing Strategy Dividend growth investing focuses on stocks with a history of consistent dividend increases. Compounding reinvested dividends drives long-term returns regardless of price appreciation.

Dividend investing Dividend investing is a strategy focused on buying stocks that pay regular cash distributions to shareholders, seeking income and total return from both dividends and capital appreciation.

Dividend Rebalancing Using dividend income from overweight holdings to purchase underweight asset classes, restoring portfolio balance without selling existing positions.

Dividend Recapitalizations as a Value Signal How dividend recapitalizations signal management confidence in cash flows and create pricing opportunities for value investors.

Dividend vs Growth Rotation Tactical strategy of cycling between dividend-paying stocks and growth stocks based on market conditions and interest rates.

Dividend Yield Tilt in Portfolio Construction How overweighting high-dividend stocks changes portfolio factor exposure, income, and sector composition.

Dividend-aristocrats Dividend-aristocrats are a select group of S&P 500 companies that have increased their dividends for at least 25 consecutive years, representing the gold standard of dividend reliability.

Dividend-growth investing Dividend-growth investing is a strategy of buying stocks with a track record of rising dividends, betting that inflation protection and capital appreciation will follow.

Dogs of the Dow Strategy Explained A rule-based approach that buys the ten highest-yielding Dow stocks each year, its historical performance, and why it works—or doesn't.

Dollar-cost averaging Dollar-cost averaging is a strategy of investing a fixed amount of money at regular intervals, regardless of market conditions, betting that this disciplined approach reduces timing risk.

Dollar-Neutral vs Beta-Neutral Portfolio Construction Dollar-neutral and beta-neutral strategies neutralize different market exposures. Learn how each affects residual returns and performance attribution in long-short equity.

Dual Momentum Gary Antonacci's two-part investing framework that combines absolute momentum (trends relative to cash) and relative momentum across asset classes to time both entry and asset allocation.

Duration Risk and the Growth-to-Value Rotation Why rising long-term interest rates compress growth stock valuations and trigger rotation into value stocks with shorter duration.

Dynamic Asset Allocation An adaptive portfolio strategy that continuously adjusts the mix of assets based on market valuations, macroeconomic signals, and evolving risk conditions.

Dynamic Hedging Algorithm Continuous rebalancing of hedge ratios based on market conditions and real-time price movements.

Earnings Power Value A valuation method that focuses on the present value of normalized, sustainable earning power independent of growth.

Earnings Quality as a Systematic Investment Factor How earnings quality factor systematic investing uses accruals and cash flow metrics to identify stocks with sustainable earnings and outperformance potential.