Results for tag: "Volatility Arbitrage"

Volatility Arbitrage is a type of hedge fund strategy that seeks to capitalize on price discrepancies between related securities. It involves taking a long position in an asset that is expected to increase in value and a short position in a related asset that is expected to decrease in value. The goal is to generate profits from the difference in the prices of the two assets. This strategy is often used to exploit mispricings in the options market. Volatility Arbitrage is a popular strategy among hedge funds, as it can generate returns with relatively low risk. It is also a relatively low-cost strategy, as it does not require large amounts of capital to implement. Some of the companies in the Volatility Arbitrage market include Citadel LLC, Two Sigma Investments, and Renaissance Technologies. Show Less Read more