Home > Term: relative value
relative value
Fund managers employing relative value strategies try to exploit pricing differentials through the simultaneous purchase and sale of similar securities. Most managers attempt to neutralise long and short positions to minimise the impact of general market movements. Relative value strategies include convertible arbitrage, statistical arbitrage, pairs trading, yield curve arbitrage and basis trading.
- Part of Speech: noun
- Industry/Domain: Banking
- Category: Investment banking
- Company: UBS
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- SophieB
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