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Quant analytics: My new blog on using volatility-based technical analysis CBOE’s Implied Correlation Index

(Last Updated On: December 20, 2011)

Quant analytics: My new blog on using volatility-based technical analysis CBOE’s Implied Correlation Index

This article introduces the concept of using volatility to analyse correlation to find actionable signals.

Adding Precision to Intuition: Examine Correlation

by Carson Dahlberg, CMT Special to the TradeTech Blog We’ve all had that gut feeling when seeing high correlations among assets – that it might not…

http://www.thetradetechblog.com/algorithms/adding-precision-to-intuition-examining-correlation/

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What correlation in hedge funds is trying to do, is to work with the “web of relations” among and between all the knowledge elements and knowledge fragments of the entire store of documents someone is addressing.

The issue is that as the number of documents increase linearly, the number of inter relations among the fragments increases exponentially.

If you have 1 million docs with 100 fragments each, the combinatorial possibilities is factorial 100 million.

As I recall, when you have reached factorial 100, that number already exceeds the number of protons in the own universe.

 

 

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