Evolutionary modelling for finance

Why evolutionary modling makes sense for finance:

Linear models don’t.they assume a steady state our at least equilibrium state with normal variation which can be explained by some covariates

Finance has no steady state.

How to map market onto a species space? Equity prices? Price histories? Prediction functions?

Maybe all of those are genes,, do we add regulatory genes?,, how do we build an animal?

Over what timescale do we measure fitness, measure returns?

Advertisements

Posted on July 15, 2011, in Uncategorized and tagged , . Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: