Key asset classes: stocks, indices, ETFs, crypto

Introduction

Financial markets offer various asset classes for investors. Understanding their characteristics helps build diversified portfolios. This guide covers four major classes analyzed by QuantWave.

1. Stocks (Equities)

Represent ownership in companies. Key features:

• Capital growth potential
• Dividend income possible
• Classified by:
  • Market cap (large/mid/small)
  • Sector (tech, healthcare, etc.)
  • Style (growth/value)

2. Market Indices

Track performance of stock groups:

• S&P 500 - US large caps
• NASDAQ - Technology focus
• DAX - German blue chips

Used as benchmarks and for derivatives trading.

3. ETFs

Exchange-Traded Funds provide:

• Diversification in single instrument
• Types:
  • Index trackers
  • Sector-specific
  • Commodity-backed
• Lower costs than mutual funds

4. Cryptocurrencies

Digital assets with unique traits:

• 24/7 trading
• High volatility
• Major coins:
  • Bitcoin (store of value)
  • Ethereum (smart contracts)

QuantWave Analysis Approach

Our system evaluates all classes using:

1. Price pattern recognition
2. Liquidity assessment
3. Correlation studies
4. Risk/reward profiling

Each asset class serves different portfolio needs. QuantSchool teaches how to combine them effectively using QuantWave's data-driven insights.