Finance Jargons
(Simple) moving average (SMA) crossover: Calculate rolling averages on different window sizes. Do something when they cross over each other.
Long/short equity: take long positions in stocks you expect to raise that are expected to increase in value and short positions in stocks that are expected to decline. Long/short means...
- To take long position in a stock: Buy stocks at a low price; sell them when the price gets high. Used when you expect the stock to increase in value.
- To take short position in a stock: When you expect a stock to decrease in value, borrow some shares from your broker, sell the shares to other investors at the current price. When stock price decreases to a desired amount, buy in shares and return to broker.
- Originally designed to evaluate how stock funds ("fund managers") are good in picking stocks and timing the market (cite).
- A trademark of Standard and Poor's Financial Services LLC, a subsidiary of S&P Global.
- Designed to track the S&P 500 index.
Screenshot from http://www.cboe.com/vix
- Implies 30-day volatility from S&P 500 Index.
- It's "implied" -- it does not directly measure the real volatility.
- Also available as options & futures.
- Not really ETFs in the common sense -- the VIX ETFs track VIX futures instead.
- This actually makes sense -- in this way, VIX is able to capture how traders expect the stock market to go.