Volatility balancing

Discussion in 'Trading' started by jasonc, Nov 14, 2010.

  1. jasonc

    jasonc

    I looking at a strategy for going long certain stocks on the basis they will outperform the market on an intraday basis if certain criteria are met. Looking at volatility balancing the positions against various etfs. Is there a special way of calculating the ratio that involves the correlation of the stock with the ETF or is it generally entirely based on volatility?