Hi All,
There is a fascinating book called 'The Quants' which explains stock market pricing and the statistical behaviour of stocks in both the short and long term.
It is very readable because it is more of an anthology / history book than a stats text.
It begins with some basic principles of Monte Carlo and Poker Playing and highlights that you can indeed "beat the banker" if you have sufficient stake money to play the odds through to the point where you get a pay out.
It also provides a great insight into how it was that the traditional high street banks got taken to the cleaners.
Best
Steve
Sent from my iPhone
On 27 May 2013, at 07:46, Vincent Granville <[log in to unmask]> wrote:
Discovered this week by a statistician.
"This pattern was found on recent price activity for the 500 stocks that are part of the S&P 500 index. For each day between 4/24 and 5/23, I looked at companies that experienced the most extreme returns - among these 500 companies - comparing today with yesterday close.
Then I looked at the daily performance the following day (again comparing day-to-day close prices), for companies who ranked either #1 or #500 today. Companies that ranked #1 today also experienced (on average) a boost in stock price the next day. The boost was more substantial for companies experiencing a 7.5% (or more) price increase today. And the return boost on the next day was statistically significant, and quite large. So much bigger indeed, that the total (non compound) return based..."
Read full story at https://bit.ly/12XLSsn
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