Hidden FX Beta in Consumer Stocks
1. The silent shift that could hurt equities
2. KWEB vs. QQQ - time for a pause?
3. AUDNZD - bullish fundamentals but too far, too fast
You picked Coke over Pepsi, Netflix over Disney. But did you also just bet against the Dollar? Twice.
In long/short equity, macro exposure is often hidden. These two popular pair trades are quietly doubling as FX plays.
Why?
Because PEP and DIS have positive exposure to the Dollar, KO and NFLX exposure is negative. Quant Insight reveals the hidden macro risks you didn't mean to takeThis is the first of several case studies Qi will post over the next 2 weeks.
Examples of how equity L/S trades chosen for fundamental reasons are actually implicit bets on economic growth, the level of real rates, the shape of the yield curve, inflation expectations & more.
Download the full breakdown via PDF
