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Market Neutral |
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Market NeutralIn the context of hedge funds, a style of management that has long and short equity exposure with nearly exposure on average to fluctuations in the market. However, the on average qualification is important. The risk of the longs and the shorts could fluctuate through time leading to negative returns when the market falls sharply.Market Neutral Similar MatchesNeutralNeutral1. Said of a technological change or technological difference if it is not biased in favor of using more or less of one factor than another. This can be defined in several different ways that are not normally equivalent: Hicks-neutral, Harrod-neutral, and Solow-neutral. 2. Said of economic growth if it expands actual or potential output of all goods at the same rate, not being biased in favor of one over another. In the Heckscher-Ohlin Model neutral growth will occur all factor endowments grow at the same rate or if there is Hicks Neutral technological progress at the same rate in all industries. 3. Said of a trade regime if the structure of protection favors neither exportables nor importables. See bias. Neutral hedgeNeutral hedgeHedge that is expected to yield a dollar-neutral result of the combined position, regardless of price change in any part of the hedge securities. For any convertible trading at a premium, this ratio is less than 100%. The higher the convertible premium, the lower a ratio must be to be neutral. See: Delta. Neutral stockNeutral stockA stock with a beta of 1.0. NeutralNeutralDescribing an opinion that is neither bearish not bullish. Neutral option strategies are generally designed to perform best if there is little or no net change in the price of the underlying stock or index. See also Bearish and Bullish. Neutral periodNeutral periodIn the Euromarket, a period over which Eurodollars are sold is said to be neutral if it does not start or end on either a Friday or the day before a holiday. Further SuggestionsSolow neutralHarrod neutral delta neutral Hicks-neutral Tax neutrality Delta neutral Risk neutral |
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