Re:Insider trading has been rife on Wall Street, academics c...
by wyager on Sunday February 11, 2018 @12:51PM
(#16353739)
Look up the implied correlation index. Not too hard to grok with a bit of stats background.
Some parties argue that the ICI is an indicator of how much fundamental analysis Wall Street is doing - high ICI, insufficient fundamental analysis. I think this is a somewhat plausible argument. Apparently the ICI has been high in the last few years - supposedly suggesting relatively little money doing fundamental analysis.
Anyway, this is good for you, bad for Wall Street; if you’re an educated investor and you have some industrial insight, it might be worth investing some of your money on opportunities that Wall Street hasn’t picked up on (like Bitcoin, a few years ago).
Some parties argue that the ICI is an indicator of how much fundamental analysis Wall Street is doing - high ICI, insufficient fundamental analysis. I think this is a somewhat plausible argument. Apparently the ICI has been high in the last few years - supposedly suggesting relatively little money doing fundamental analysis.
Anyway, this is good for you, bad for Wall Street; if you’re an educated investor and you have some industrial insight, it might be worth investing some of your money on opportunities that Wall Street hasn’t picked up on (like Bitcoin, a few years ago).