This question was closed without grading. Reason: No acceptable answer
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.

Discussion

Peter Riccomini (asker) Feb 10, 2016:
Note from asker I would like to say thank you to those who answered, but I'm afraid I'm going to close this question without grading, as none of the answers IMHO fully addresses the question. The key point is that the managers take similar action because they have similar positions and similar motivations.

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.

Proposed translations

11 mins

herd behaviour

Although, in practice, it can actually increase risk.
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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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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-...
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