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Feb 5, 2016 14:34
8 yrs ago
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Spanish term
efecto solape
Spanish to English
Bus/Financial
Finance (general)
Context: stock market commentary
el “efecto solape” que se produce cuando muchos gestores con posiciones análogas intentan reducir riesgo simultáneamente
This report uses this expression from time to time. I have been translating it as 'overlap effect', but I haven't been able to find any examples of this (or the original) in use.
el “efecto solape” que se produce cuando muchos gestores con posiciones análogas intentan reducir riesgo simultáneamente
This report uses this expression from time to time. I have been translating it as 'overlap effect', but I haven't been able to find any examples of this (or the original) in use.
Proposed translations
(English)
4 | herd behaviour | DLyons |
4 | domino effect | Francois Boye |
4 | fund overlap | Thomas Walker |
Proposed translations
11 mins
herd behaviour
Although, in practice, it can actually increase risk.
3 hrs
domino effect
'domino effect' is closer to the idea of overlapping agents
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Note added at 3 hrs (2016-02-05 18:08:35 GMT)
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Solape = solapamiento, according to my linguistic research
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Note added at 3 hrs (2016-02-05 18:08:35 GMT)
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Solape = solapamiento, according to my linguistic research
3 days 8 hrs
fund overlap
I think this is a case where it pretty much means what it says. Here's one example of many hits from a Bing search on +"fund managers" +overlap +risk:
"Fund Overlap occurs when an investor owns two or more mutual funds that have similar objectives and therefore hold many of the same securities. For a simple example, if an investor owns two stock mutual funds and they both invest in many of the same stocks, the similarities create an effect of reducing the benefits of diversification by increasing exposure to those same stocks -- an unwanted increase in market risk."
http://mutualfunds.about.com/od/analyzingamutualfund/a/What-...
"Fund Overlap occurs when an investor owns two or more mutual funds that have similar objectives and therefore hold many of the same securities. For a simple example, if an investor owns two stock mutual funds and they both invest in many of the same stocks, the similarities create an effect of reducing the benefits of diversification by increasing exposure to those same stocks -- an unwanted increase in market risk."
http://mutualfunds.about.com/od/analyzingamutualfund/a/What-...
Discussion
Herd behaviour suggests that they take similar action because everyone else is doing so. Fund overlap describes a situation applying to individual investors, rather than to a segment of the market. The domino effect occurs when one event sets off a chain of similar events. That is occurring in the situation I describe, but it is not what the expression is about.