Thursday, May 26, 2011
This is why Manchester United is Manchester United
I have loved them since 1992... My first ever ManU match on TV2.. That night ManU won 3-2... There was no return... N to you all the Sir Alex babies... I dedicate my football life to you all... Gary Neville, Phillip Neville, Paul Scholes, Ryan Giggs, David Beckham, Nicky Butt...
Thursday, May 12, 2011
Am I JOPPK material?
Just a random reminder to myself for a simple mathematical understanding.
When using the correlation between the stocks and the indices, why use the return correlation instead of the price correlation?
The explanation is simple,
Suppose you own three stocks.
Stock A closed at 5 dollars a share yesterday and at 6 dollars a share today.
Stock B also closed at 5 yesterday and at 4 today. But it was also an ex-date for a $1 dividend.
Stock C closed at 100 yesterday and at 101 today.
As an investor, do you care about the price change ($1 in each case) or the return?
Conclusion is simple, because we want maximum returns for minimum risk
When using the correlation between the stocks and the indices, why use the return correlation instead of the price correlation?
The explanation is simple,
Suppose you own three stocks.
Stock A closed at 5 dollars a share yesterday and at 6 dollars a share today.
Stock B also closed at 5 yesterday and at 4 today. But it was also an ex-date for a $1 dividend.
Stock C closed at 100 yesterday and at 101 today.
As an investor, do you care about the price change ($1 in each case) or the return?
Conclusion is simple, because we want maximum returns for minimum risk
Tuesday, May 03, 2011
Matthew 6:19-21
19. Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal. 20. But lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal. 21. For where your treasure is, there your heart will be also.
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