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Last edit on 24-Mar-2025 Are stocks an inflation hedge? At least in the long run? We find the answer to both questions is no. While fundamental returns—comprising dividend return and earnings growth—do...

Constructing a high Sharpe ratio portfolio, paired with sensible leverage, is the key to achieving meaningful returns with tolerable risk. We will make some simplifying assumptions to build intuition,...

Historically, long-short equity factors have provided positive mean returns with low correlation to other assets. Most retail investors use long-only products, meaning they invest only in the long leg...

Correlations largely determine the benefits of diversification. The lower the correlation between assets, the better the diversification. It is common practice in finance to measure correlations using...