4 ms·
> Also, prices aren't stationary I'm not sure about the rest of your comment, but this is mathematically the correct reason why we don't predict absolute price
by ackbar03 6y ago
> Also, prices aren't stationary
I'm not sure about the rest of your comment, but this is mathematically the correct reason why we don't predict absolute price levels.
And the reason why this is mathematically the correct reason is because for a non-stationary process, when you predict into the future, the variance tends to infinity which means taking expectation on any statistical model is useless since the variance is ridiculously wide