RMS Executive Interview Questions and Answers

Pairs Trading Strategy

• Pairs trading involves identifying two stocks that historically move in a similar pattern

• One stock is bought while the other is shorted when they deviate from their historical correlation

• Profits are made when the stocks revert back to their historical correlation

The target for production goal is to set a specific quantity or level of output to be achieved within a certain time frame.

• Set a realistic and achievable target based on market demand and resources available

• Monitor progress regularly to ensure production is on track to meet the goal

• Adjust target as needed based on changes in demand or production capacity

Delta, Gamma, and Beta are financial terms used in options trading to measure the sensitivity of an option's price to changes in various factors.

• Delta measures the rate of change of the option price with respect to the underlying asset price. It indicates how much the option price will change for a $1 change in the underlying asset price.

• Gamma measures the rate of change of Delta. It shows how much Delta will change for a $1 change in the underlying asset price.

• Beta measures ...read more

Analysis is the process of examining data or information to uncover insights, patterns, and trends.

• Analysis involves breaking down complex information into smaller components for better understanding.

• It often includes interpreting data to draw conclusions or make recommendations.

• Examples of analysis include financial analysis, market research analysis, and data analysis in various fields.