Vaibhav Gupta*

Indian Institute of Technology Delhi, India

*Corresponding Author: Vaibhav Gupta, Indian Institute of Technology Delhi, India.

Received: June 10, 2025; Published: June 27, 2025

Abstract

The era of algorithmic trading has already kicked in. Managing different asset classes eliminating personal bias has been a tested and of course hugely profitable in last 3 decades. Long - Short Neutral Alphas helps to eliminate any capital exposure to the group of neutralisation (will discuss below). Principle advantage of using these strategies, is to infuse less capital in totality, as we are using the major capital, which we obtained through shorting the stocks. Of course, there are some limitations. We will discuss it in this paper. We will also see, why and how we can combine long-short strategies in the best possible way to create a portfolio with a higher overall information ratio and other parameters, than either of its individual component’s performance

Keywords: Quantitative Research and Modelling; Portfolio Management; Asset Trading; Financial Analysis; Mathematical Modelling

References

1. Bruce I Jacobs., et al. “On the Optimality of Long-Short Strategies”. Financial Analysts Journal (1997).
2. Steven Thorley., et al. “Portfolio Constraints and the Fundamental Law of Active Management”. BYU Marriott School of Business (2001).
3. The World of Alphas. New York Raven Pack Research Symposium by Nitish Maini, Chief Strategy Officer at World Quant.

Citation

Citation: Vaibhav Gupta. “Dynamic Weighing of Long - Short Neutral Alpha Strategies in Portfolio".Acta Scientific Computer Sciences 7.4 (2025): 20-23.

Copyright

Copyright: © 2025 Vaibhav Gupta. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.