Correlations

Use Option Alpha's 7 step option trade entry checklist to filter and scan for new trading opportunities.

With pairs hedging, you can make adjustments by using similar or correlated underlying positions to hedge other positions in the same sector or industry.

Learn the exact pricing of inverse ETFs and why these securities have a huge pricing lag over time that doesn't work in your favor.

The basics of risk and reward are essential to portfolio management. The efficient portfolio frontier combines different securities for the best return relative to risk.

In addition to the diversification benefits of having multiple stocks in a portfolio, diversifying across uncorrelated industries and sectors is an important aspect of portfolio management.

Individual stock beta measures how much a particular stock might move when the market moves up or down. The higher the beta, the more volatile the stock compared to the market, and vice versa.