A.I.M. Users Bulletin Board

[DonCarlson]

Hi Rick,

I have not established a hedge position in RRPIX at this time, I'm waiting for RRPIX to be performing better than EAD. There was a brief 1-2 day period a couple weeks back where RRPIX was performing better than EAD; but, EAD quickly bounced back.

In the chart below,
1. The Red line is the price line for EAD.
2. The Green line is the price line for RRPIX.
3. The Accutrack area (yellow shaded area above and below the 0 line. When the yellow shaded area is above the zero-line, EAD is performing better than RRPIX. When the yellow shaded area is below the zero-line, RRPIX is performing better than EAD.)
4. The two lines at the bottom of the chart reflect how your portfolio would have grown had you stayed strickly in EAD (the solid red line). And, how your portfolio would have grown had switched back and forth between the EAD and RRPIX, depending upon which stock was performing the best.

Thus, (on the far right column) we can see that EAD had an Annualized Return of 14.68% from 2/26/03 thru 12/15/04.

RRPIX had an Annualized Return of -7.91% from 2/26/03 thru 12/15/04.

Switching between EAD and RRPIX produced an Annualized Return of 24.84% during the same period.

I never seem to have much luck posting a chart, if the chart does not appear, you can view it at MyCharts:
http://www.ttrader.com/mycharts/display.php?p=29312&u=doncarlson&a=Don's%20Charts&id=132...



http://www.ttrader.com/mycharts/display.php?p=29312&u=doncarlson&a=Don's%20Charts&id=132...