Betas are fine. Have you tried Hamming?

Hammer : nail :: Screwdriver : screw

Previously, we did a short intro on how you could use the Hamming distance to analyze a transformed time-series. This week, we extended the concept as a way to analyze non-linear portfolios in Beta vs. Hamming. In a world where direct relationships are often flaky, using transformed time-series can be a superpower.

Markets this Week

Equity markets had a nice party last week.

Links

SEBI wants to ban algo trading for retail investors. If your head just exploded, please send an email to the address given in their consultation paper. (SEBI)

Lies, Damn Lies, and Investment Statistics (BTM)

Alberto Gallo @macrocredit

In their typical playbook, populists sell people a dream, polarise anger at an enemy, and implement unsustainable economic policies. The playbook usually results into a four-stage economic and political cycle.

Managing across the Corporate Life Cycle: CEOs and Stock Prices! tl;dr: the “right” CEO for a company depends on where it is in its life cycle. One size cannot fit all, and a CEO who succeeds at a company at one stage in the life cycle may not have the qualities needed to succeed at another. (AD)

Meme of the Week