Apr

26

In Iquitos, Peru , the female to male birthrate is 7 to 1 but no one has been able to figure out why. Meals are a buck, hotel 4-, internet .60 per hour, a porcelain crown 100-, and i just took a two hr. private taxi tour for 10-. Twenty interesting resident gringo expats, and the tourists are starting to pour in with the onset of dry season. However, i´m jumping a boat to Brazil and refusing all invitations from cannibals to dinner.

 Douglas Dimick comments:

Rules-Based Relativity of Ecological Numeric Hierarchies

When first reading an article on the upcoming SEC hosted short selling round table series, one may consider how the Inquitos female/male birthright ratio analysis smacks of a similar (or parallel) rules-based phenomenon.

http://www.tradersmagazine.com/news/-103694-1.html?ET=tradersmagazine_news%3Ae282%3A54049a%3A&st=email&page=2

The article provides a PDF link to a recent Credit Suisse report, highlighting that…

“According to Credit Suisse’s data, a 10 percent circuit breaker would have been triggered 26.6 times per day for Standard & Poor’s 500 stocks last September, and 80.4 times per day in October. In November and December, it would have triggered 48.8 and 25.0 times per day, respectively. That compares to the first eight months of 2008 when the average number of times per day that an S&P 500 stock dropped 10 percent ranged from 0.8 to 7.7.”

The Theory of Quantitative Relativity (or QR) indicates that, in both instances (the Peru local’s skewed birth right and SEC shortselling regulatory regime), there are rules-based ecologies currently effecting (or causing what some observers argue to be) those cited systemic anomalies.

Is low blood sugar a deviation, in that the relative norm may represent higher ratio’s, thereby sustaining nominal birthright trending? Or have ecological considerations within the eco-system itself altered the quantifiable balance of related (human procreation) indictors and functions?

Does naked shortselling constitute market trending or become merely implicative of relative space and time reporting of market deviations, so generated by systemic imbalances that result from ecological assimilations of exchange standards and procedures by public and private actors?

In both instances, there appears to be a focus on quantifying input that may or may not have a metacircular correlation with the highlighted result (be it birthright or long/short ratio). Determinative, however, would be to understand the conditions precedent for the numeric outcomes… for instance…

“In his panel comments, Direct Edge’s O’Brien also discussed the circuit breakers in the SEC’s proposal. He noted that in the market turmoil since last fall, stocks have risen and fallen by 10 percent frequently. That means, he said, a circuit breaker could be triggered often, leading to potential changes in trading behavior in stocks that decline significantly.”

This citation of rules-based correlations resulting with state-input-output assimilation may be considered the basis for understanding how program trading and portfolio management systems operate within any give electronic exchange market of financial instruments.

Is the issue that only one male is birthed for every seven females? What of the impending social and economic correlations resulting from that assimilating demographic? For instance, would males from other towns (passively or actively) relocate? What governmental action may result from this systemic condition, and what governmental action may have caused it?

QR states that a determinative consideration here is that rules-based constructs (e.g., social order or market exchange) are relative to ecological trending from the standpoint that lines enter spaces that constitute parametric (or geometric) correlations. Such nonlinear correlations are the product(s) of either selective rules (e.g., laws of supply and demand within an agri-economic artifice or circuit-breaker regulation governing stock market exchanges) or the construct itself, such as the Peruvian governing authority or the SEC.

To merely conduct statistical modeling that determines cause and effect without outcome orientation – of those (at least primary) conditions precedent central to the ecological – is a failure to assimilate correlations that are ecological, therefore outcome determinative. Linear projections, so based on quantification of discrete data sets, become operatives of state-input-output functioning.

In that divergence of linear trending thereby is determinative for risk management (and mitigation a la hedging), those spatial (parametric, geometric) domains thereby define randomness and knowledge of the very conditions precedent that affect (if not effect) both preceding and subsequent linear outcomes. Thus, in the design of state machine logic, one concludes that state-input-state functioning (or state transition) is the metacircular outcome for quantifying any given numeric hierarchy of a given ecology.

Rules and numbers: when does the servant become the master?
 


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