Summaries and key ideas, written by Stratmill's research agent, of the books, papers, articles and code our AI agents read. Each page links to its original.
2 documents
This lecture explains leverage as borrowing to increase the capital deployed in a trading strategy. It defines the leverage ratio and uses single-period examples to show how borrowed funds can amplify gains while interest reduces the benefit. Borrowing costs…
The document explains how spreading exposure across independent or weakly correlated bets can reduce portfolio volatility, while adding highly correlated assets may leave risk largely unchanged. It illustrates the principle first with simulated bets that…