{"id":40884513,"date":"2022-01-15T11:24:23","date_gmt":"2022-01-15T05:54:23","guid":{"rendered":"https:\/\/stockviz.biz\/index.php\/?p=40884513"},"modified":"2022-01-15T11:24:29","modified_gmt":"2022-01-15T05:54:29","slug":"midcap-select-index-futures","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2022\/01\/15\/midcap-select-index-futures\/","title":{"rendered":"Midcap Select Index Futures"},"content":{"rendered":"\n<p>The National Stock Exchange (NSE) will soon be launching futures and options contracts on the Nifty Midcap Select Index (<a rel=\"noreferrer noopener\" href=\"https:\/\/www.livemint.com\/market\/stock-market-news\/nse-gets-sebi-nod-to-launch-derivates-on-nifty-midcap-select-index-11641818590523.html\" target=\"_blank\">livemint<\/a>.) This is a good deal if it gets meaningful traction.<\/p>\n\n\n\n<p>Most midcap investors benchmark to the Midcap 150 index. They will have a decent way to hedge that with the Select index futures.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/raw.githubusercontent.com\/stockviz\/blog\/master\/midcap-select\/equity.curve.select-150.png\" alt=\"\" \/><\/figure>\n\n\n\n<p>The equity curves overlap fairly well. And so do monthly returns.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/raw.githubusercontent.com\/stockviz\/blog\/master\/midcap-select\/correlation.monthly.png\" alt=\"\" \/><\/figure>\n\n\n\n<p>We have a <a rel=\"noreferrer noopener\" href=\"https:\/\/stockviz.biz\/theme-eq\/83C44574-894C-4C24-98D4-08FCA42CBE6C\" target=\"_blank\">Midcap 150 Index trend-following strategy<\/a> running that looks great on paper but is not currently feasible due to the high intra-day tracking error of the Midcap 150 ETFs and impact costs.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/web-theme-perf-charts\/83C44574-894C-4C24-98D4-08FCA42CBE6C.performance.brk.png\" alt=\"\" \/><\/figure>\n\n\n\n<p>If the Select index derivatives take off, then we&#8217;ll be looking at implementing something similar using futures instead of ETFs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The National Stock Exchange (NSE) will soon be launching futures and options contracts on the Nifty Midcap Select Index (livemint.) This is a good deal if it gets meaningful traction. Most midcap investors benchmark to the Midcap 150 index. They will have a decent way to hedge that with the Select index futures. The equity &hellip; <\/p>\n","protected":false},"author":2,"featured_media":2089693,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3471],"tags":[],"class_list":["post-40884513","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing-insight","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/40884513","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=40884513"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/40884513\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media\/2089693"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=40884513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=40884513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=40884513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}