Big Data

VU Professors Develop New Nasdaq Indexes That Guard Against Market Gyrations

Date Added: Nov 2010
Format: HTML

New research by Vanderbilt finance professors Robert Whaley and Jacob Sagi has led to the creation of a recently launched group of Nasdaq indexes. The five Nasdaq OMX Alpha Indexes are designed to help investors measure performance between individual stocks and exchange-traded funds. In practice, this means that the returns of popular holdings such as Apple and Citigroup could be isolated from sharp swings in the market. Traditionally it has been difficult - if not impossible for some - to trade directly on the relative performance of one asset compared to another.