{"id":40890424,"date":"2024-04-17T17:44:43","date_gmt":"2024-04-17T12:14:43","guid":{"rendered":"https:\/\/stockviz.biz\/index.php\/?p=40890424"},"modified":"2024-04-17T17:44:43","modified_gmt":"2024-04-17T12:14:43","slug":"replication","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2024\/04\/17\/replication\/","title":{"rendered":"Replication"},"content":{"rendered":"\n<p>Sometimes, you many not be able to directly buy an index or access a strategy because of regulatory hurdles, mandates etc&#8230; In these situations, replicating it using a basket of accessible securities might make sense.<\/p>\n\n\n\n<p>For example, you can replicate the S&amp;P 500 index using Indian indices: NIFTY 50, MIDCAP SELECT and NIFTY BANK.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/github.com\/stockviz\/blog\/blob\/master\/replication\/GSPC.monthly.png?raw=true\" alt=\"\" \/><\/figure>\n\n\n\n<p>In fact, you can do for any reference timeseries (strategies\/funds) and apply leverage as desired.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/github.com\/stockviz\/blog\/blob\/master\/replication\/GSPC.monthly-loadings.png?raw=true\" alt=\"\" \/><\/figure>\n\n\n\n<p>Also, the loadings give you and idea of the shifting relationship between the reference asset and the basket over time.<\/p>\n\n\n\n<p>Code and images are on <a href=\"https:\/\/github.com\/stockviz\/blog\/tree\/master\/replication\">github<\/a>.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sometimes, you many not be able to directly buy an index or access a strategy because of regulatory hurdles, mandates etc&#8230; In these situations, replicating it using a basket of accessible securities might make sense. For example, you can replicate the S&amp;P 500 index using Indian indices: NIFTY 50, MIDCAP SELECT and NIFTY BANK. In &hellip; <\/p>\n","protected":false},"author":2,"featured_media":2106273,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3471],"tags":[2761],"class_list":["post-40890424","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing-insight","tag-quant","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/40890424","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=40890424"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/40890424\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media\/2106273"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=40890424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=40890424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=40890424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}