Ratio

Beware the Bubble? The US Stock Market Cap-to-GDP Ratio

November 23, 2023

The stock market capitalization-to-GDP ratio — the so-called Buffett Indicator — measures the size of the equity markets relative to the economy. Since corporate sector growth depends on economic growth,…

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How Sharp Is the Sharpe Ratio? An Analysis of Global Stock Indices

Investors across the globe use the Sharpe Ratio, among other risk-adjusted metrics, to compare the performance of mutual fund and hedge fund managers as well as asset classes and individual…

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Is the Copper–Gold Ratio a Dependable Leading Indicator on Rates?

November 13, 2023

The Copper–Gold Ratio and Dollar Effects Institutional asset managers use the copper–gold ratio as one of the 10-year Treasury yield’s leading indicators. Indeed, as the spread between bond yields and…

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The Alpha Capture Ratio: Rising Interest Rates Mean Pricier Alpha

November 12, 2023

The rapid ascent of the federal funds rate from near 0% in 2022 to a 15-year high of 5.25% in July 2023 presents both an opportunity for hedge funds’ expected…

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