- The US Sector strategy dynamically allocates among 4 different long US sector strategies and one short US sector strategy.
- Due to low correlation of these strategies, the combination creates a strategy with considerably higher Sharpe values.
- The addition of the negatively correlated short strategy significantly reduces volatility and drawdowns during difficult market periods.
- It does not rely on either treasuries or bonds to balance out and hedge in times of market stress, but uses the short US sector strategy instead.
Also please see the the related discussion at our forum.