Xiao Qiao is a research analyst for a Connecticut-based hedge fund, focused on trading commodity futures. He graduated with a PhD in Finance—and was a teaching assistant to renown economist Eugene Fama.
Notably, Xiao has also worked directly with trading legend Blair Hull on two quantitative research projects, which concern market timing and return predictability.
The main objective of this episode with Xiao, is to learn how a research analyst thinks about things directly related to research, and ways that you can do better market research for yourself.
Topics of discussion:
- Tips for anyone who’s unsure about what to study, where to seek advice from others, key lessons Xiao learned from economists Eugene Fama and Lars Hansen.
- How the opportunity to work on a research project with trading legend Blair Hull came about, curiosity about market timing and effective return predictors.
- The job description of a research analyst, nuances between various asset classes, how to come up with new ideas, preliminary testing methods and techniques.
- Words of wisdom for less experienced researchers, why you can glean insight from data without using sophisticated tools, measuring the accuracy of your work.
Links and resources mentioned:
- Episode 085: Blair Hull
- A Practitioner’s Defense of Return Predictability [SSRN]
- Return Predictability and Market-Timing: A One-Month Model [SSRN]
- Francis Diebold [Blog]
- Xiao Qiao [Personal website]
- Xiao Qiao [LinkedIn]
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