Cluster Analysis Definition

Cluster Analysis Definition

What Is Cluster Analysis? Cluster analysis is a technique used to group sets of objects that share similar characteristics. It is common in statistics. Investors will use cluster analysis to develop a cluster trading approach that helps them build a diversified portfolio. Stocks that exhibit high correlations in returns fall into one basket, those slightly less

Certified Keep an eye on Accountant (CMA) Definition and Examples

Certified Keep an eye on Accountant (CMA) Definition and Examples

What Is a Certified Management Accountant (CMA)? Certified management accountant (CMA) is an accounting designation that signifies expertise in financial accounting and strategic management. The professionals who obtain this designation are colloquially known as CMAs and are qualified for a variety of roles ranging from financial controller to chief financial officer (CFO). Key Takeaways The

What Is a Trade Mortgage-Sponsored Protection (CMBS)?

What Is a Trade Mortgage-Sponsored Protection (CMBS)?

What Are Commercial Mortgage-Backed Securities (CMBS)? Commercial mortgage-backed securities (CMBS) are fixed-income investment products that are backed by mortgages on commercial properties rather than residential real estate. CMBS can provide liquidity to real estate investors and commercial lenders alike. Because there are no rules for standardizing the structures of CMBS, their valuations can be difficult.

CMBX Indexes Definition

CMBX Indexes Definition

What Are CMBX Indices? CMBX Indices are a group of financial indexes that track the commercial mortgage-backed securities (CMBS) market. These indexes represent 25 tranches (French word meaning “slice”) of CMBS, each with a different credit rating. Because mortgage-backed securities are illiquid and non-standardized in the over-the-counter (OTC) market, they often lack the transparency and

Chicago Mercantile Alternate: Definition, History, and Regulation

Chicago Mercantile Alternate: Definition, History, and Regulation

What Is the Chicago Mercantile Exchange (CME)? The Chicago Mercantile Exchange (CME), colloquially known as the Chicago Merc, is an organized exchange for the trading of futures and options. The CME trades futures, and in most cases options, in the sectors of agriculture, energy, stock indices, foreign exchange, interest rates, metals, real estate, and even weather.

Working out Capital Market Line (CML) and How you can Calculate It

Working out Capital Market Line (CML) and How you can Calculate It

What Is the Capital Market Line (CML)? The capital market line (CML) represents portfolios that optimally combine risk and return. It is a theoretical concept that represents all the portfolios that optimally combine the risk-free rate of return and the market portfolio of risky assets. Under the capital asset pricing model (CAPM), all investors will