2 ms·

Of course, Black-Scholes is a very famous and important mathematical model. However, it is Saturday night, so let’s be a little silly. I’ve always thought that

Of course, Black-Scholes is a very famous and important mathematical model. However, it is Saturday night, so let’s be a little silly. I’ve always thought that one reason it became so well known is that it sounds kind of badass. A shoal is, of course, a shallow bit of water, general associated with running aground and that sort of thing. Black-Shoals sounds like an area where Blackbeard the pirate will hang out steal all your stuff if you get stuck. I’ve always thought quants secretly want to be pirates, but of course the era of going around pirating is over, so they learned how to do it on the market instead. In the time of piracy, they could probably have been navigators, that job was pretty mathy. The would have presumably gone around the Black-Shoals.

putcher_willow 2y ago
You're not alone in finding the name poetic: see https://www.blackshoals.net/ https://www.blackshoals.net/ "Black Shoals Stock Market Planetarium is an art project created by Joshua Portway and Lise Autogena. The project takes the form of a darkened room with a domed ceiling upon which a computer display is projected, like a planetarium. Audiences are immersed in a world of real-time stock market activity, represented as the night sky, full of stars that glow as trading takes place on particular stocks. In Black Shoals each traded company is represented by a star, flickering and glowing as shares are traded. The stars slowly drift in response to the complex currents of the market, while outlining shapes of different industries and the huge multinational conglomerates like the signs of the zodiac. The movement of the stocks is based on calculated correlations between the histories of each stock and those of its near neighbours. The stronger the correlation between the histories of the stock prices of any two companies, the more powerful the gravitational attraction between them. Although they start out randomly distributed in the planetarium, over time the stars clot together and drift into slowly changing constellations, nebulae and clusters. Through this technique different industries naturally start to emerge as galaxies. Any general disturbance in a section of the market will have a visible effect on the sky – the collapse of Enron, for instance, would have caused a sort of black hole - all the companies affected would glow very brightly due to the level of trading and would be pulled in to a single point in a very powerful vortex." It goes on...

putcher_willow 2y ago

You're not alone in finding the name poetic: see https://www.blackshoals.net/ https://www.blackshoals.net/ "Black Shoals Stock Market Planetarium is an art project created by Joshua Portway and Lise Autogena. The project takes the form of a darkened room with a domed ceiling upon which a computer display is projected, like a planetarium. Audiences are immersed in a world of real-time stock market activity, represented as the night sky, full of stars that glow as trading takes place on particular stocks. In Black Shoals each traded company is represented by a star, flickering and glowing as shares are traded. The stars slowly drift in response to the complex currents of the market, while outlining shapes of different industries and the huge multinational conglomerates like the signs of the zodiac. The movement of the stocks is based on calculated correlations between the histories of each stock and those of its near neighbours. The stronger the correlation between the histories of the stock prices of any two companies, the more powerful the gravitational attraction between them. Although they start out randomly distributed in the planetarium, over time the stars clot together and drift into slowly changing constellations, nebulae and clusters. Through this technique different industries naturally start to emerge as galaxies. Any general disturbance in a section of the market will have a visible effect on the sky – the collapse of Enron, for instance, would have caused a sort of black hole - all the companies affected would glow very brightly due to the level of trading and would be pulled in to a single point in a very powerful vortex." It goes on...