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vhe

Registered: May 2012
Posts: 3

05-25-12 12:19 PM

Hi!
This is probably a very simple question, but here is:

Let's assume I believe a stock will underperform another.

Is there a way to make profit from that knowledge?

Lots of Greetings!
Volker

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TskTsk

Registered: Dec 2011
Posts: 343

05-25-12 03:22 PM

Long performer, short underperformer

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vhe

Registered: May 2012
Posts: 3

05-25-12 05:07 PM

Thanks a lot!

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hajimow

Registered: Mar 2004
Posts: 2663

05-25-12 08:11 PM

Quote from vhe:

Hi!
This is probably a very simple question, but here is:

Let's assume I believe a stock will underperform another.

Is there a way to make profit from that knowledge?

Lots of Greetings!
Volker

Based on the very probable assumption that you are wrong, short the outperformer and go long on the underperformer.

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diaoptions

Registered: Aug 2011
Posts: 392

05-25-12 08:20 PM

Quote from vhe:

Hi!
This is probably a very simple question, but here is:

Let's assume I believe a stock will underperform another.

Is there a way to make profit from that knowledge?

Lots of Greetings!
Volker

Not enough info, what do you mean by underperform, XYZ +5% and ZYX +4% over a period of two months?

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Random.Capital

Registered: Jan 2005
Posts: 3848

05-25-12 08:22 PM

Quote from vhe:

Let's assume I believe a stock will underperform another.

Is there a way to make profit from that knowledge?

Belief is not Knowledge.

In effect, you are asking how to profit from guessing, and that doesn't have a simple answer.

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