Aug
10
Hybrid Vigor, from Victor Niederhoffer
August 10, 2009 |
Hybrid vigor is one of those evolutionary concepts that creates instant emotional reaction among the vast majority threatened by individual differences. Thus, it is very little studied although it has been shown to be of enormous economic importance in improving corn, wheat, cattle and egg production. Not surprisingly, it has not been studied much in the area of human and market activity. It is a subject very close to my heart, and I understand that one of the very fine non-eastern athletes on this site attributes much of his lustrous family's success to a dose of it.
I thought it apt to study the subject in markets. To do this, I had to start somewhere and did so with the hybrid vigor that comes when a S&P and Nasdaq move in opposite directions during the day. I found that such instances of hybridization are somewhat rare, occuring just 15% of the time. Surprisingly, the results showed that when a positive S&P was crossed with a negative Nasdaq on the same day, the next generation one day later showed almost exactly 50% rises for the S&P and 50& rises for the Nasdaq.
The results for a cross of a negative S&P and positive Nasdaq on the day were equally nondescript and random with almost exactly 50% rises for each of them the next day. Turning to a cross of a S&P with bonds on the day with opposite directions, I find that such outbreeding occurs about 50% of the time. Almost equally divided between the positive S&P negative bond and negative bond positive S&P combo. The results the next day were somewhat interesting.
Results for S&P today generation next day generation total
. + -
S&P+ bond- 345 335 680
S&P - bond + 390 305 695
The results for bonds next day:
S&P+ bond- 361 375 736
S&P- bond+ 390 350 740
Thus, we have provided for the markets what one hasn't seen for humans and I hope we will see studies in both areas that build upon this pungent subject. I would encourage similar studies in various classes of commodities such as grains, oats versus corn et. al., or metals, gold versus copper. Also, a hybrid day with strength here and weakness there et. al.
Comments
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When studying intergeneric hybrids (stocks and bonds), the initial vigor (magnitude) of the breeding genera has a profound effect on the expected viability of the hybrid offspring.
One dare not respond to a genetic experiment of that cardinality. vic
Is the row
361 375 736 correct?
If it is can someone explain what each column means? as I guess I don’t understand the table.
Thanks
table so mixed up that I cant understand it eithr. should be a + over the first column and - over the second. there appears to be hybdir vigor for bonds after + in bonds in conjunction with decline in sp. 39/35 similarly for sp. after a decine in sp in conjunction with rise in bonds. vic