Theme-based arbitrage is mainly divided into three types: compensatory arbitrage, diffusion arbitrage and internal and external market arbitrage.

1. Compensatory growth arbitrage

When the theme of a stock is representative and the range of increase is very exaggerated, stocks with the same theme, the same sector, and relative stagflation will have There is relatively large room for compensatory growth and relatively small retracement risk, making it suitable for heavy buying.

2. Diffusion Arbitrage

When a subject breaks out on a large scale, market hype will be malleable and diffusive, and the scope of speculation will expand. As for the upstream, downstream, and alternatives of this theme, although the intensity of diffusion is mostly not as strong as this theme, funds that can lurk first can often obtain good short-term returns and very low risks.

3. Internal and external market arbitrage

Since the feast of domestic growth stocks in 2013, the hype of high growth in the A-share market has always followed the trend of the same concept in US stocks. This is true for mobile games, lottery, film and television, biology and other themes. Therefore, growth stocks in China and the United States have relatively strong linkage.

Key points of theme-based arbitrage:

1. Because there is usually more than one stock that makes up for the increase, you must choose the strongest, clean and moderately sized stock that attracts the most attention from hot money. , if you make the wrong choice, your income will be greatly reduced. It is best to intervene when the daily limit occurs or to intervene the next day. It is not a good idea to lurk in advance.

2. The increase in the diffusion sector will not exceed the increase in the leading sector, so the expected profit after buying is usually 30%-50% of the increase in the leading sector.

3. Due to the time difference between internal and external markets, the linkage has a lag, so the buying position and price are more important. When the market is poor, it often opens high and moves low.