The 20 unit maximum rule
Posted: Sun Jun 18, 2006 10:58 pm
As I understand it one could have a maximum of 10 units long and 10 units short.
I have often toyed with the idea that instead of adding additional units into the same security, trying to develop a porfolio of 20 different stocks of 1 unit each. Would this be successful in reducing portfolio heat assuming of course that all 20 stocks were uncorrelated?
I have often toyed with the idea that instead of adding additional units into the same security, trying to develop a porfolio of 20 different stocks of 1 unit each. Would this be successful in reducing portfolio heat assuming of course that all 20 stocks were uncorrelated?
