4 ms·
A bit off topic, but does anyone else find a data/financial company name "two sigma" to be...either troubling (how often two sigma events happen randomly and th
by podiki 4y ago
A bit off topic, but does anyone else find a data/financial company name "two sigma" to be...either troubling (how often two sigma events happen randomly and their lack of meaning beyond random fluctuation), or really on the nose?
- singhrac 4y agoA few more off-topic thoughts about this comment: (a) Two Sigma is an investment firm (a wrapper around a hedge fund), not really a financial company, (b) pretty much no one at Two Sigma is unaware of how often 2 sigma events happen, so I think neither? and (c) two sigma events can totally have meaning beyond random chance, in fact they're usually a leading indicator that there is some connection beyond luck :).
- melony 4y agoThey are a very famous quant fund
- d0mine 4y agoFor the normal distribution, 2-sigma events happen around 5% of the time: >>> import statistics >>> 2*statistics.NormalDist().cdf(-2) 0.04550026389635842
- abm53 4y agoI believe it is "five sigma" which carries this stigma (because many value-at-risk models saw the market moves in 2008 as a 5 sigma event).