Select time periods/market events for oil or oil stocks. To see all data, click the first or the second box for oil and oil stocks, respectively.
Also, you can apply the signals for oil or oil stocks on your time series. The corresponding risk and return figures are shown.
For our consulting business, e.g. analytics of funds/ETFs or strategies, at least implicitly, energy prices are often one of the main factors in models to evaluate strategy philosophy and scenarios.
In an persisting low interest environment, active strategies as satellites or within TAA are more and more seen as necessary alternatives to pure beta exposure and/or as part of the shift into alternative investment sources of return.
Hedging Beta Exposure
Existing beta exposure to oil or oil stocks can be hedged based on the signals. The implementation as a weighting scheme is a closely related use case.
Global macro opportunities can be spotted for topics that are related to the price of oil.
2) Consumers: Corporates, countries and derivatives producers need to hedge their exposure to oil prices.
4) Asset Allocators: Investors shift or just rebalance their allocations triggered through common allocation and/or risk models.
Model Input and Diversification
The strategy’s signals can be utilized as a second opinion or a new input factor for an existing model on oil (energy or macro), serve as diversification (e.g. weight increasing/decreasing) to a mix of fundamental, technical, lower and higher frequency strategies on oil.
Corporates: Cut Input Costs
Improve your oil/energy procurement strategy and lower input costs.