Abstract Pairs trading algorithm is market neutral, mean-reverting strategy for hedge funds and alike. We conduct an empirical study from 1999 to 2022 comparing the performance and characteristics with buy-and-hold algorithm. The results of six months trading show lower return and Sharpe ratio but lower risk than buy-and-hold. For a twenty years trading periods buy-and-hold is the clear winner with…
The research about algorithmic trading is important due to its predominance in the financial industry. In 2019 a big percentage of the traded equity in US was performed by automated algorithms, that represents 35.1% of $32 trillion with an expected annual growth of 8.7% over the period 2020 - 2027. The subject is particularly challenging because it falls between three…
The study of algorithmic trading is of high importance given its predominance and forecasted growth. In 2019 the majority of the equity traded in US was executed by algorithms, equivalent to 35.1% of $31 trillion and the global estimated compounded annual growth rate (CAGR) over the period 2020-2027 is 8.7%. The topic presents many issues and angles. Institutional investors employ…
This coursework defines the foundation of the DBA research project. It states the most significant theory that underpins the research, the Efficient Market Hypothesis (EMH), with evidences in favour and against of efficient markets. Next, argues that if the theory stands true, rational investors will only invest in passive portfolios, impacting the financial industry offering active financial products. The paper…
This document studies the power of CBOE Volatility Index (VIX) to predict stock market returns of Standard & Poor's 500 (S&P 500), a good proxy of the USA economy. VIX measures the market’s expectation of S&P 500 volatility, however many authors call it fear index because the value of the index spikes in moments of high selling in financial markets.…
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This assignment is structured in two chapters. Firstly, a summary of foreign exchange products: FX forwards, FX futures, FX options and currency swaps. Secondly, drawbacks and limitations of the Markowitz portfolio theory. A summary of mean-variance portfolio theory limitations studied are: It does not protect against improbable black swan events, based on historical data that doesn’t guarantee future returns, challenging…
Cisium is looking for to extent its capabilities in R&D by establishing a subsidiary in EU. This report explores 3 EU countries: France, Germany and UK. A systematic analysis is conducted using Porter’s diamonds framework with 5 categories and 15 criterions, the result gives to Germany the highest score. This study stresses the importance of institutional and cultural factors for…
Magna International Inc. (NYSE:MGA) is a global automotive supplier with 320 manufacturing centres and sales in 30 countries. The company offers products in body, exterior, chassis, powertrain, seats, electronics, vision, closures, roof systems, engineering service and contract manufacturing. This report is the financial analysis of MGA compared with the industry competitors Continental AG (ETR:CON) and Denso Corp. (DEN) (TYO:6902). MGA…
This report analyses the financial strength and weakness from Magna International Inc. (Magna) compared with the industry and some of its competitors. This report is based on financial information from Magna, Continental and Denso. Bosch is excluded because it is not a public company. Magna’s financial performance is excellent, the highest in the industry, reflected by a solid return on…
This essay discusses how technologies affect the equilibrium in the product markets taking a microeconomic and macroeconomic approach. It focuses in the automotive sector, a mature industry, with extensive economy of scales, capital intensive and oligopoly competition but with some trend to perfect competition. Two kind of technologies are discussed: Technology that impacts the supply curve. It is considered technologies…
The goal of the article “Organizational Ethics, Individual Ethics, and Ethical Intentions in International Decision-Making” from Elango, et al. (2010) is to “test the relationship between Individual Ethics (IE) and Organizational Ethics (OE) on the intention to behave ethically by respondents (Ethical Intention or EI)” in international decision-making environments. This is the business research question although is not explicitly highlighted.…
The company has projects with Chinese clients (consumers) that require a fluent collaboration and communication between both companies. The common practice taken by PMs in Chinese project in order to promote collaboration and communication are: The team members, included the PMs, recurrently travel to China for short periods of time of one or two weeks. Specific team members, so called…
In this essay we will explore chronologically some motivation theories. During the discussion we will critically analyse their impact to Engineering Services Providers (EPS) companies based on the experience of the essay’s author. The analysis may be useful for job design, reward systems and Human Resources (HR) policies. Motivation drives the actions, behaviour and needs of the individual (Mollit, 2016,…
This essay explores some of the learning theories and they will be evaluated based on the essay’s authors approach or learning. The learning theories can be classified in 3 schools of thought: Behaviourism. The learning process is linked to the behavioural observable output. Ivan Pavlov in 1927 defines the “classical conditioning” theory, based on the “stimulus-response” mechanism (Learning-Theories.com, 2016), (Staats,…
A company that grows thanks to marketing orientation can be considered a marketing successful history. Figure 1 shows a revenue increase of 2850% in the last 12 years and Figure 2 shows a stock price increase of 1328% in the last 10 years. Apple Inc. company is customer concentric, creates values to his costumers by continuously analyzing and adapting its…
The aim of this assay is to identify improvement opportunities for Engineering Services Provider (ESP) companies in the field of automotive Original Equipment Manufacture (OEM) Electrical/Electronics (E/E) system development. The improvements are identified by comparing ESP in automotive industry with IT industry using Agile Software Development (ASD) with Scrum. The logical path followed in this assay is: Context of ESP companies…
