The Elegance of Frugality and Risk
Preface to “A New Theory of Risk and Rating” by Giulio Sapelli. The Elegance of Frugality and Risk. From aContinue Reading
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Keynes vs Friedman – What is the Mix Today?
Blog written in July, 2103. There is plenty of discussion nowadays as to whether to bailout or not to bailout.Continue Reading
Low Complexity Portfolios Beat Markets
Recent research confirms that high portfolio complexity impacts negatively mid and long-term expected returns. This is because high complexity hasContinue Reading
Entropy, Complexity and the Strong Anthropic Principle
Observers are necessary to bring the Universe into being. The Universe must have those properties which allow life to developContinue Reading
The Fourth Law
Entropy happens to all things physical which are larger than an atom. This means they run down, decay, and eventuallyContinue Reading
How To Create New Derivatives Based on Complexity
According to Wikipedia: “In finance, a derivative is a special type of contract that derives its value from the performanceContinue Reading
What are the Units of Complexity?
Complexity is a fundamental physical characteristic of every system that may be found in Nature. Its importance is similar toContinue Reading
Large-scale Analysis of Ecosystems of Corporations
In an interconnected and complex economy corporations form networks, or ecosystems as well as supply chains (or supply networks asContinue Reading
The Secret Financial Market Only Robots Can See
The following article is by Tim Fernholz, and has been written on September 16-th, 2013 and is proposed here verbatim.Continue Reading
Systemic Risk Analysis – A New Approach
In a world dominated by turbulence and interdependency, fragility and complexity are the main new factors which are impacting theContinue Reading
