Asked by Sulema Benavides on Jul 26, 2024

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______ uses quantitative techniques, and often automated trading systems, to seek out many temporary misalignments among securities.

A) Covered interest arbitrage
B) Locational arbitrage
C) Triangular arbitrage
D) Statistical arbitrage
E) All arbitrage

Statistical Arbitrage

Use of quantitative systems to uncover many perceived misalignments in relative pricing and ensure profit by diversifying across all of these small bets.

Quantitative Techniques

Mathematical and statistical methods used to analyze numerical data, often applied in economics, finance, and operational research to facilitate decision-making.

  • Discern and separate distinct hedge fund approaches including market neutral strategies, directional methodologies, and arbitrage.
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AR
Ayesha RaziqJul 27, 2024
Final Answer :
D
Explanation :
Statistical arbitrage uses quantitative models to find price differences between securities. It often involves complex mathematical models and high-speed automated trading systems to exploit temporary market inefficiencies.