A Currency Alpha or Absolute Return strategy aims to deliver attractive uncorrelated returns by actively trading an unconstrained portfolio of currencies, as well as diversifying effects through low correlation with traditional asset classes.

Absolute return programmes can be adapted to specific investor needs by scaling volatility targets, changing the currency universe and using various risk control mechanisms.

Currency markets are highly liquid, with daily volumes that dwarf those of equity and bond markets, and positions can be liquidated rapidly if required.

 

Keywords:  absolute return, absolute return strategy, alpha strategy, currency alpha, uncorrelated returns.

Currency management guide