Overweight Stock
What is an Overweight Stock? An overweight stock is a stock that financial analysts believe will outperform a benchmark stock, security, or index. The overweight recommendation signals to investors to devote a larger percentage of their portfolio to the stock. Hence the term “overweight”. Different institutions use different terms for their stock recommendations. “Buy” and...
Tracking Error
What is Tracking Error? Tracking error is a measure of financial performance that determines the difference between the return fluctuations of an investment portfolio and the return fluctuations of a chosen benchmark. The return fluctuations are primarily measured by standard deviations. Generally, a benchmark is a diversified market index that represents part of the total...
Cross Border Listing
What is Cross Border Listing? Cross border listing involves companies that trade on the stock exchange of their home country and also on a stock exchange in another country. A Cross Border Listing gives rise to the possibility of arbitrage opportunities, as identical assets are trading in two different markets. Cross border listed companies are...
Japanese Candlestick
What is a Japanese Candlestick? Japanese Candlesticks are a technical analysis tool that traders use to chart and analyze the price movement of securities. The concept of candlestick charting was developed by Munehisa Homma, a Japanese rice trader. During routine trading, Homma discovered that the rice market was influenced by the emotions of traders, while...
Ichimoku Cloud
What is the Ichimoku Cloud? The Ichimoku Cloud is a technical analysis method that was created by Japanese journalist Goichi Hosoda in the late 1960s. The Ichimoku chart shows support and resistance levels, as well as other essential information such as trend direction and momentum. Compared to standard candlestick charts, the Ichimoku Cloud contains more...
