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Low volatility is good for everyone engaged in long term asset management. Jane Street just found a way to make everyone else less money while making a small am
by lumost 1y ago
Low volatility is good for everyone engaged in long term asset management. Jane Street just found a way to make everyone else less money while making a small amount for themselves.
- MichaelZuo 1y ago> Low volatility is good for everyone engaged in long term asset management. According to who? There are plenty of pension funds nowdays that have people specialized in picking up mid sized companies after big drops.
- mrcode007 1y agoit’s a known effect. Without going into details here, you can calculate first crossing time of a barrier in a stochastic process and observe that often the first crossing time decreases as the volatility increases. From there you can set one barrier at 0 (default) and draw your own conclusion.