Munich Personal RePEc Archive

Mutual influence of the exchange assets: practical aspects

Kozmenko, Serhiy and Plastun, Oleksiy (2012): Mutual influence of the exchange assets: practical aspects. Published in: Banks and Bank Systems , Vol. 6, No. 4 (8 February 2012): pp. 5-10.

[thumbnail of MPRA_paper_50785.pdf]

Download (116kB) | Preview


The following article considers the practical use of temporary connections that arise between different exchange assets. The concrete recommendations to build a trading strategy based on the theory of market focuses are proposed. The main idea in this case is that strong positive correlation between two exchange assets let us make a conclusion that in case of big movement in one asset we can wait for equivalent changes in other exchange asset. The paper proposes the use of two types of correlations between exchange assets: “slow” (used to determine the presence of relationship between exchange assets) and “fast” (used for the definition of divergence and convergence). Based on the values of “slow” and “fast” correlation decisions on entry and exit positions can be done.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.