News for hackers. Stuff that matters.

A comment on Show HN: Cappio – stock research that isn't overwhelming. Parent comment

Re:Show HN: Cappio – stock research that isn't overwhelming by vasco on Friday October 24, 2014 @11:56AM (#8504242)
> If a person expects lots of medical care later in life, suggest them a portfolio heavy on medical stocks so that if their expenses go up, their investment does too. How is what an individual spends in medical care correlated with medical stocks?
[ Parent | on HN ]
Re:Show HN: Cappio – stock research that isn't overwhelming by yummyfajitas on Friday October 24, 2014 @12:29PM (#8504446)
Every individual holds a short position on medical costs.

If medical costs and the value of medical stocks are correlated, then one can hedge that underlying medical short by going long medical stocks. I don't actually know if that correlation holds. I should have been clearer that I was guessing it might.

I actually don't know the right sort of hedging for medicine - would be great to have some help with that.

[ Parent | on HN ]
Re:Show HN: Cappio – stock research that isn't overwhelming by splintercell on Friday October 24, 2014 @12:01PM (#8504269)
I agree, this doesn't make much sense to me, the correlation is flimsy.
[ Parent | on HN ]