Check out these pretty Sine Curves (1 Viewer)

Jun 26, 2007
2,706
I've heard of chaos theory but not the latter. Doesn't chaos theory have to du with the butterfly effect?
It's a branch of system theory that describes deterministic chaos, e.g. systems in which an infinitesimal change of the input can cause macroscopic changes in the output. It's very applicable to both weather and stock trading systems.
 
OP
Bjerknes

Bjerknes

"Top Economist"
Mar 16, 2004
116,161
  • Thread Starter
  • Thread Starter #126
    It's a branch of system theory that describes deterministic chaos, e.g. systems in which an infinitesimal change of the input can cause macroscopic changes in the output. It's very applicable to both weather and stock trading systems.
    Ahh interesting. I might find that material later on in Econometrics.
     

    ReBeL

    The Jackal
    Jan 14, 2005
    22,871
    One of the doctors who taught me was working at that Chicago market. We were considering him a man from another world because he was trying to explain to us things that are so advanced to our local institutions.

    I liked derivatives when I studies it, but I don't remember anything about it now except being a decent branch of finance which requires a very clean mind that's ready for imagining anything to happen.
     

    3pac

    Alex Del Mexico
    May 7, 2004
    7,206
    what up is ill be finished with calc before i even go to college, meaning i can dress up and look at differential equations all day :D
     
    Oct 3, 2004
    1,121
    Meteorology with a concentration in Weather Risk Management, Financial Derivatives and Economics. I still have about a year before I graduate, however.
    whoa, neat!

    So I get Meteorology and Financial Derivatives + Econ.

    But...what's Weather Risk Management? Like hurricanes, etc? What kind of risks do u analyse? Urban disaster, infrastructure? Or is it related to your finance study?

    Pardon my ignorance, by the way...:shifty:
     
    OP
    Bjerknes

    Bjerknes

    "Top Economist"
    Mar 16, 2004
    116,161
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  • Thread Starter #133
    whoa, neat!

    So I get Meteorology and Financial Derivatives + Econ.

    But...what's Weather Risk Management? Like hurricanes, etc? What kind of risks do u analyse? Urban disaster, infrastructure? Or is it related to your finance study?

    Pardon my ignorance, by the way...:shifty:
    Don't worry... most people don't even know what derivatives are.. :shifty:

    Weather risk management is quantifying, analyzing and hedging against weather-related risk, from hurricanes to even miniscule temperature differences during the day. It's essentially risk management.

    One of the interesting new tools used to hedge against weather risk is what they call weather derivatives. These tools range from hedging against said temperature differences within a day, something called heating/cooling degree day weather derivatives, and of course derivatives for snow and rainfall. All of these derivatives could be particulary useful for the agriculture and energy industries, and since it's relatively new, not many people know about these hedging techniques.

    I love weather derivatives. :smoke:
     
    OP
    Bjerknes

    Bjerknes

    "Top Economist"
    Mar 16, 2004
    116,161
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  • Thread Starter #137
    It's all beautiful. Never seen sine curves this stunning.

    But, now time for...

















    THE QUESTION OF THE DAY

    Which function do you prefer? Sine(x) or Cosine(x)?
     

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