Cross-Asset Class describes investment strategies, trading systems, or risk management frameworks that operate across multiple distinct asset categories. This includes, for example, equities, fixed income, commodities, and cryptocurrencies, rather than being restricted to a single type of asset. It signifies a comprehensive market view.
Mechanism
A cross-asset class system integrates diverse data feeds and execution venues, processing various instrument types with distinct settlement conventions and market dynamics. It necessitates a unified data model capable of normalizing information from disparate markets and protocols. This integration extends to the unique data attributes of digital assets.
Methodology
Trading algorithms leverage correlations and relative value opportunities between different asset classes, optimizing capital allocation and hedging strategies. Risk aggregation models compute holistic portfolio risk by accounting for inter-asset dependencies. This provides a comprehensive view that informs institutional options trading and smart trading strategies in crypto-inclusive environments.
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