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- Quantum Strategy II
Quantum Strategy II
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It takes as little as only one second for any news to change the direction of a stock chart."
- Warren H. Lau
In short, Quantum Strategy a new school of investment strategy which is grounded through studying the correlations among stock price movement and different statistically measurable factors.
Stocks generally tend to move with a very high degree of correlation. An investor can get an experience of the way properly two stocks correlate by searching at whether or not one outperforms or underperforms the common investor's return through the years. A correlation of one takes place whilst shares circulate in sync with every other and after they pass in opposition to each difference.
When one stock is going up and the alternative goes down, the two stocks have a perfect negative correlation (-1). The coefficient is negative, which indicates that once the negative correlation between them will increase, the one share that binds to the other declines. If the correlation among two stocks is 1.0, the costs of the stocks flow in parallel with their average expenses.
This measure is referred to as a correlation coefficient and is used to measure the diploma and path of correlation between stocks. Many advisers use the equity correlation in advanced portfolio calculations, and it has a price of 1.0 to 10.
In the case of investments, correlation is a measure that suggests the volume to which the prices of two belongings are relative to their suggest. To find the correlation among stocks, you need to first determine the average fee of each stock. Using the Pearson correlation coefficient, we will determine how carefully two shares correlate.
The low profile mysterious yet legendary investor Warren H. Lau has finally released his investing books series: Winning Strategies of Professional Investment. Warren H. Lau has spent more than ten years in the investment career, and succeeded through a combined application of fundamental, technical and news analysis.
The Winning Strategies of Professional Investment is a series of investment education books for people who are not experienced to the stock market, and wish to build fast investment knowledge, and make money quickly. This series saves you time by offering the right paths.
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