Hi,
Does anyone trade Bond/ Equity spreads eg Bund vs Eurostoxx? Does it even make sense to do so? The 20 day ATR of both is about the same, so 1:1 ratio might work. But if you were using one to hedge the other you would have to be long(short) both at the same time I would have thought. Any thoughts much appreciated.
Thanks
Does anyone trade Bond/ Equity spreads eg Bund vs Eurostoxx? Does it even make sense to do so? The 20 day ATR of both is about the same, so 1:1 ratio might work. But if you were using one to hedge the other you would have to be long(short) both at the same time I would have thought. Any thoughts much appreciated.
Thanks
