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[RT] RE: Re: Gen: Pareto Levy

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<DIV><FONT size=2><FONT face="Courier New"><SPAN class=770210401-08072000><FONT 
color=#0000ff face=Arial>&nbsp;&gt;</FONT></SPAN>displaying the difference in 
the distribution of a securities<BR>&gt; returns and a normal distribution of 
returns. You simply subtract the two<BR>&gt; numbers. The resulting plot reveals 
much about the trading dynamics of<BR>&gt; the security.</FONT><FONT 
color=#0000ff face=Arial><SPAN 
class=770210401-08072000>&nbsp;</SPAN></FONT></FONT></DIV>
<DIV><FONT size=2><FONT color=#0000ff face=Arial><SPAN 
class=770210401-08072000></SPAN></FONT></FONT>&nbsp;</DIV>
<DIV><FONT size=2><FONT color=#0000ff face=Arial><SPAN 
class=770210401-08072000><FONT color=#000000 face="Courier New">Something's not 
clear. Diff betn Sec return's distro and "a" normal distro. I guess there must 
be some base normal distribution default, coz securities' distro are log-normal 
default. I think I need to read that book.</FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT size=2><FONT color=#0000ff face=Arial><SPAN 
class=770210401-08072000></SPAN></FONT></FONT>&nbsp;</DIV>
<DIV><FONT size=2><FONT face="Courier New"><SPAN class=770210401-08072000>Any 
case:&nbsp;Couple years ago I was wrestling with asset allocation between 2 
markets.</SPAN></FONT></FONT></DIV>
<DIV><FONT size=2><FONT color=#0000ff face=Arial><SPAN 
class=770210401-08072000><FONT color=#000000 
face="Courier New"></FONT></SPAN></FONT></FONT>&nbsp;</DIV>
<DIV><FONT size=2><FONT color=#0000ff face=Arial><SPAN 
class=770210401-08072000><FONT color=#000000 face="Courier New">So I did this: 
Compared Crude oil distro to SPX distro. Like attached gif. 
</FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT size=2><FONT color=#0000ff face=Arial><SPAN 
class=770210401-08072000></SPAN></FONT></FONT><FONT size=2><FONT color=#0000ff 
face=Arial><SPAN class=770210401-08072000><FONT color=#000000 
face="Courier New"></FONT></SPAN></FONT></FONT>&nbsp;</DIV>
<DIV><FONT size=2><FONT color=#0000ff face=Arial><SPAN 
class=770210401-08072000><FONT color=#000000 face="Courier New">What it tells 
me:<BR><BR>More 2-way trading opportunity in Crude as compared to Spoos. Esp. if 
you involve options. And the crude mkt is (was?) slightly under people's radar 
screen, so charts are cleaner. At least in the past 2 years that I've been doing 
oil.</DIV></FONT></SPAN></FONT></FONT>
<DIV><FONT size=2><FONT color=#0000ff face=Arial><SPAN 
class=770210401-08072000><FONT color=#000000 
face="Courier New"></FONT></SPAN></FONT></FONT>&nbsp;</DIV>
<DIV><FONT size=2><FONT color=#0000ff face=Arial><SPAN 
class=770210401-08072000><FONT color=#000000 
face="Courier New">Gitanshu</FONT>&nbsp;<BR><FONT color=#000000 
face="Courier New">PS: Note that data is probably 2 years 
old.</FONT></SPAN></FONT></FONT></DIV></BODY></HTML></x-html>
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