Posts tagged ‘beta’

Engineering the Volatility Out of the Market



What’s one of the most noticeable consequences of the Fed’s third round of quantitative easing (i.e. QE3)? It’s the stark drop in fixed income volatility. Look at the chart below, which demonstrates this point for the investment grade credit market. The blue line is the rolling 21-day…

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The Difference Between Alpha and Beta



Anyone who follows the financial news has probably heard the terms “alpha” and “beta” in relation to investing. However, it’s rarely explained how important they are when it comes to making investment decisions.

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