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Arbitrage

Hedge Funds

4 Chapters
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Free

Embark on an advanced exploration of arbitrage strategies with our course. From navigating the complexities of Convertible and Merger Arbitrage to understanding the intricacies of Capital Structure Arbitrage and Statistical Arbitrage, this program delves into sophisticated methods employed in financial markets. Elevate your expertise and learn to leverage arbitrage opportunities across diverse scenarios, making informed decisions in dynamic market conditions. Master the art of risk management and optimization within the realm of advanced arbitrage techniques 

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Parts

1

Convertible Arbitrage

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This chapter delves into Convertible Arbitrage, focusing on the interplay between convertible securities and arbitrage strategies. Key topics include hedging techniques, managing market volatility, understanding the conversion ratio, and equity sensitivity. It also covers credit risk and relative value, providing a comprehensive view of this complex trading strategy.

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Merger Arbitrage

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This chapter explores the Merger Arbitrage Strategy, detailing the various types of mergers and the inherent risks involved. It examines deal structures, arbitrage spreads, and hedge ratios, alongside event risks and legal considerations. The chapter provides practical insights into executing successful merger arbitrage trades.

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Capital Structure Arbitrage

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This chapter covers Capital Structure Arbitrage, emphasizing the relationship between debt and equity securities within a firm's capital structure. It discusses the risk-return tradeoff, hedging strategies, and detecting mispricing. Topics include market inefficiency and financial leverage, offering strategies to exploit capital structure discrepancies.

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Statistical Arbitrage

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This chapter focuses on Statistical Arbitrage, highlighting pair trading and mean-reversion strategies. It explains cointegration, cross-sectional arbitrage, and time series analysis. The chapter also emphasizes the importance of backtesting strategies, data mining and analysis, and effective risk management techniques.

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