Radovan Vojtko’s Post

Investigation of Lead-Lag Effect in Easily-Mistyped Tickers Our new study aims to investigate the lead-lag effect between prominent, widely recognized stocks and smaller, less-known stocks with similar ticker symbols (for example, TSLA / TLSA), a phenomenon that has received limited attention in financial literature. The motivation behind this exploration stems from the hypothesis that investors, especially retail investors, may inadvertently trade on less-known stocks due to ticker symbol confusion, thereby impacting their price movements in a manner that correlates with the leading stocks. By examining this potential misidentification effect, our research seeks to shed some light on this interesting factor. https://lnkd.in/dHKMRxAU

Latest blog post on how indices are designed to measure markets effectively in a timely fashion with stocks graduating as they grow in size. Includes a Ryan Reynolds Van Wilder 😀 reference. Short piece but hope you find it worth your time! #bloombergindices #investing #smci

Buy & Sell Signals (HFXI) Investment Report: Stock Traders Daily has produced this trading report using a proprietary method.  This methodology [...] Look at the Charts

Buy & Sell Signals (FLAU) Investment Report: Stock Traders Daily has produced this trading report using a proprietary method.  This methodology [...] Look at the Charts

Buy & Sell Signals (FTLF) Investment Report: Stock Traders Daily has produced this trading report using a proprietary method.  This methodology [...] Look at the Charts

NASDAQ:NVDA Stock Analysis for Monday, 5, August (Wyckoff method) We could say that NVDA is currently in a descending channel with resistance/support levels determined by volume peaks (seen in 1 day, 1 hour and 15 minutes timeframes) + order book data, this "downtrend" or "correction" can be a distribution phase. In addition to that, we could find a minor creek that was tested, then punctured and finally perforated. With all this data in mind, it's possible for the stock to have a slight positive rebound on Monday, 5, August facilitating a possible intra-day operation, targeting the minor creek as a resistance. Disclaimer: Content of this post is for information and education purposes only and should not be treated as investment or trading advice.

Buy & Sell Signals (BLBD) Investment Report: Stock Traders Daily has produced this trading report using a proprietary method.  This methodology [...] Look at the Charts

Lead-Lag Relationship Between Convertible Bonds and The Stock Markets A convertible bond is a type of security that can be converted into a predetermined number of shares of the issuer’s common stock at certain times during its life. The paper explores the lead-lag relationship between convertible bonds and the stock markets. - Utilizing minute-level high-frequency data, the study observed that convertible bonds exhibit a leading role over stocks, evident at both the index and individual stock levels.    - Regression analysis revealed that both the ‘T +0’ rule and wider price limits make substantial contributions to this leading effect of convertible bonds on stocks. - Following an institutional change implemented after August 1, 2022, which reduced the price limit in the convertible bond market to 20%, the study employed a regression discontinuity design (RDD) to assess its impact. - Experimental findings from the RDD analysis indicated that this narrower price limit significantly diminishes the leading effect of convertible bonds on the stock market. It’s worth noting that the authors focused on the Chinese markets. It would be interesting to examine this lead-lag relationship in the US and other developed markets. Reference: Liwei Jin, Xianghui Yuana, Keji Lu, Shihao Wanga and Zhichao Li, The lead lag relationship between convertible bonds and stocks: a perspective based on trading mechanism, Applied Economics, 2024 #bonds #portfoliomanagement #quantitativeresearch #investing ABSTRACT Based on minute-level high-frequency data, this paper examines the lead-lag relationship between convertible bonds and the stock market by using the thermal optimal path method. It is found that convertible bonds lead the stock market at both index and individual levels. Regression analysis shows that the unique ‘T + 0’ trading mechanism and wider price limits of convertible bonds significantly contribute to their leading effect. Additional analysis shows that the leading effect is significantly reduced when the price limit of convertible bond market is narrowed. Our findings can potentially help regulators to improve and develop the convertible bond market, and also be of value to investors in developing trading strategies.

Buy & Sell Signals (UZD) Investment Report: Stock Traders Daily has produced this trading report using a proprietary method.  This methodology [...] Look at the Charts

Buy & Sell Signals (VXUS) Investment Report: Stock Traders Daily has produced this trading report using a proprietary method.  This methodology [...] Look at the Charts