Absolute and relative dating
Such managers pay special attention to the correlation between the different components of their portfolio.
The goal is to not be subject to wild swings that happen because of a market event.
It's difficult to define what good is because it depends on how the rest of the market has been performing.
Relative dating by biostratigraphy is the preferred method in paleontology and is, in some respects, more accurate.
They’ll perform a global and detailed economic analysis on specific companies to determine the direction of a particular stock or commodity for a timeline that typically stretches out for a year or longer. relative return is in the context of a market cycle, such as bull vs. in a bull market, 2 percent would be seen as a horrible return.
But in a bear market, when many investors could be down as much as 20 percent, just preserving your capital would be considered a triumph.
In that case, a 2 percent return doesn't look so bad.
The value of the return changes based on the context.Most of these managers will not rely on long-lasting market trends.