In the spirit of Don’t Explain Falsehoods, it would be nice to test the ubiquity of this phenomenon by specifying a measure of this phenomenon (e.g. correlation) on some representative randomly-chosen pairs. But I don’t mean to suggest that you should have done that before posting this.
I was a little too lazy to knock this up in R. Sorry! I am planning on some followups when I’ve levelled up more in mathematics and programming, although my thoughts would be quant finance etc. would have a large literature on this, as I’d intuit these sorts of effects are pretty important when picking stocks etc.
Upvoted. I really like the explanation.
In the spirit of Don’t Explain Falsehoods, it would be nice to test the ubiquity of this phenomenon by specifying a measure of this phenomenon (e.g. correlation) on some representative randomly-chosen pairs. But I don’t mean to suggest that you should have done that before posting this.
I was a little too lazy to knock this up in R. Sorry! I am planning on some followups when I’ve levelled up more in mathematics and programming, although my thoughts would be quant finance etc. would have a large literature on this, as I’d intuit these sorts of effects are pretty important when picking stocks etc.