Navigation Links
Using fear to guide smart investments
Date:6/30/2011

Tel Aviv Playing the stock market can be a risky game. And when the market behaves unpredictably, public fear can lead to erratic investment responses and market chaos.

But there is a way to make this fear work in your favor, say Prof. Eshel Ben-Jacob and Dr. Yoash Shapira of Tel Aviv University's Raymond and Beverly Sackler School of Physics and Astronomy. The team's recent research demonstrates that a smart stock market portfolio should not only take into account negative correlations on returns among the stocks, but also the dynamics of volatility. "It's a way to build a portfolio that takes fear and other cognitive investor responses into account," says Prof. Ben-Jacob.

Reported in AIP Advances, the journal of the American Institute of Physics, this is the first study that uses the prism of volatility to study the effect of human behavior on financial markets.

Drawing inspiration from neurons

As they investigated trends in market volatility over long periods of time, the researchers, with their doctoral student Dror Y. Kenett, were able to discover a certain method to the market's madness a pattern within the chaos.

Currently, Prof. Ben-Jacobs explains, market analysis assumes that occurrences within the market are random what happens one day is unrelated to what may happen the next. But this is unrealistic, he says. Any change in the market, from a declining index to a change in policy, informs the way people invest. They might not remember precisely what they reacted to, but the cognitive sensation of uncertainty will stay with them.

Like Prof. Ben-Jacobs' earlier research into similarities between the U.S. market and the epileptic brain, this research was also inspired by neuron networks. The firing of neurons in the brain, says Prof. Ben-Jacobs, might appear to be random, but when you measure variations of activity, a pattern emerges. The same can be said of stock market volat
'/>"/>

Contact: George Hunka
ghunka@aftau.org
212-742-9070
American Friends of Tel Aviv University
Source:Eurekalert  

Page: 1 2

Related medicine news :

1. Ecumen Building Senior Housing in Apple Valley, Minnesota and Will Manage New Maplewood, Minnesota Property
2. Using gold nanoparticles to hit cancer where it hurts
3. Johns Hopkins scientists develop personalized blood tests for cancer using whole genome sequencing
4. Register Online for this Year's Horst Senior Living Conference on April 8 Featuring Keynote Speaker and Senior Housing Expert Jim Moore
5. Rockland County Landlord Agrees to Settlement With United States to Protect Fair Housing Rights of Tenants With Mental Disabilities
6. Groundbreaking Study Using Ultrasound for the Treatment of Intracerebral and Intraventricular Hemorrhage Stroke Shows Promise
7. SDI Reports: Nearly a Third Of Physicians Use Handheld and Smartphone Devices to Access Medical Information - Physicians Most Likely to be Using Apple iPhone
8. Parrish Medical Center Sees 30 Percent Improvement in Mortality Using Real-Time Clinical Surveillance Solution from Thomson Reuters
9. Family history is strong predictor of obstructive coronary artery disease using CCTA
10. Using new approach, Mayo Clinic researchers find level of gene alters risk of Alzheimers disease
11. Best Selling, Non Toxic Skin Brightener Does the Job Using Safe, Healthy Ingredients and Introduces New Anti Aging Ingredients
Post Your Comments:
*Name:
*Comment:
*Email:
Related Image:
Using fear to guide smart investments
(Date:8/4/2015)... ... August 04, 2015 , ... assistPoint Partners, ... innovation to consolidate oncology patient assistance programs. Through a secure web portal, assistPoint ... assistPoint is an enterprise level, cloud-based application and workflow solution. This provides cancer ...
(Date:8/4/2015)... ... August 04, 2015 , ... Rhode Island Medical Imaging (RIMI) is pleased ... Medical Building on Wake Robin Road in Lincoln, RI. This satellite office will ... the most extensive out-patient x-ray hours in the state, which includes evenings and weekends. ...
(Date:8/4/2015)... ... August 04, 2015 , ... An article published July ... be a viable method for encouraging people to lose weight. Specifically the study compared ... their weight loss success, adding a financial incentive to the overall incentive of increased ...
(Date:8/4/2015)... ... 04, 2015 , ... Angelina Jolie is in it at age 39. “It” ... Dr. Angela DeRosa, DO, MBA, CPE aka “Dr. Hot Flash,” arguably the ... out of menopause. , Myth #1: Menopause only affects old ladies. – Menopause ...
(Date:8/4/2015)... ... August 04, 2015 , ... Worldwide Power Products acquires ... expanding its reach in Texas. Effective July 1st of this year, Worldwide Power ... division. With the North Texas acquisition, Worldwide Power Products (“WPP”) now services ...
Breaking Medicine News(10 mins):Health News:assistPoint.com Web Site Launched 2Health News:Rhode Island Medical Imaging Opens Satellite Imaging Center on Wake Robin Road in Lincoln 2Health News:Article on Incentivizing Weight Loss Mirrors Similar Motivations Surrounding Weight Loss Surgery, Says Dr. Feiz & Associates 2Health News:"Dr. Hot Flash" Debunks the Top 5 Menopause Myths 2Health News:"Dr. Hot Flash" Debunks the Top 5 Menopause Myths 3Health News:North Texas Acquisition Press Release 2
... have identified a new gene family (UTX-JMJD3) essential for ... crucial for stem cell maintenance and differentiation, and the ... development of cancer. , The results are ... follows up on 2 other high-impact articles on related ...
... moments into the brain, study suggests , , WEDNESDAY, Aug. ... understand why frightening, traumatic memories go so deep and ... study in rats shows that a powerful neurochemical called ... trauma -- but it also "imprints" an emotional fear ...
... of secondary procedures , , TUESDAY, Aug. 21 (HealthDay News) ... peritonitis may not automatically need to undergo more operations ... In the United States, most surgeons choose to wait ... surgery, said Dr. David Flum, a gastrointestinal surgeon at ...
... highly effective in preventing the behavioral and academic problems ... a five-year study led by researchers at Lehigh Universitys ... and funded by the National Institute of Mental Health ... children aged 3 to 5 who have shown significant ...
... at the University of Liverpool that has identified a ... content of the diet. , Researchers found that the ... is not only present in the tongue, but also ... for the treatment of diabetes and obesity, as well ...
... be deadly , The Internet is serving as ... ideas about HIV/AIDS, which could have terrible public health ... Medicine. , "It may seem remarkable that, 23 years ... that the virus is the cause of AIDS," say ...
Cached Medicine News:Health News:Study Probes Roots of Fearful Memories 2Health News:One Surgery Often Enough for Peritonitis 2Health News:Non-medicinal treatment touted for pre-schoolers with ADHD 2Health News:Non-medicinal treatment touted for pre-schoolers with ADHD 3Health News:Discovery of 'sugar sensor' in intestine could benefit diabetes 2Health News:HIV denialists spread misinformation online -- consequences could be deadly; and more 2
(Date:8/4/2015)... 4, 2015 ANI Pharmaceuticals, Inc. ("ANI") (NASDAQ: ... three and six months ended June 30, 2015 and ... host its earnings conference call this morning, August 4, ... parties can join the call by dialing (855) 582-8078. ... Include: , Year-to-date net revenues of $38.3 million, an ...
(Date:8/4/2015)... Aug. 4, 2015  Ironshore Pharmaceuticals & Development, ... Health, a company specializing in personalized medicine, to ... trial, designed to evaluate the safety and efficacy ... treat Attention-deficit/hyperactivity disorder (ADHD). This is Restore,s second ... Health originally partnered with Ironshore in 2014 and ...
(Date:8/3/2015)... WEST JORDAN, Utah , Aug. 3, 2015  BC ... Solutions has acquired Ohio Valley Medical Systems, one of ... MRI systems.  The addition of Ohio Valley Medical Systems ... to now include Hitachi MRI.   "We ... Mark Alvarez , President and CEO of BC Technical. ...
Breaking Medicine Technology:ANI Pharmaceuticals Reports Second Quarter and Year-To-Date 2015 Results and Highlights 2ANI Pharmaceuticals Reports Second Quarter and Year-To-Date 2015 Results and Highlights 3ANI Pharmaceuticals Reports Second Quarter and Year-To-Date 2015 Results and Highlights 4ANI Pharmaceuticals Reports Second Quarter and Year-To-Date 2015 Results and Highlights 5ANI Pharmaceuticals Reports Second Quarter and Year-To-Date 2015 Results and Highlights 6ANI Pharmaceuticals Reports Second Quarter and Year-To-Date 2015 Results and Highlights 7ANI Pharmaceuticals Reports Second Quarter and Year-To-Date 2015 Results and Highlights 8ANI Pharmaceuticals Reports Second Quarter and Year-To-Date 2015 Results and Highlights 9ANI Pharmaceuticals Reports Second Quarter and Year-To-Date 2015 Results and Highlights 10ANI Pharmaceuticals Reports Second Quarter and Year-To-Date 2015 Results and Highlights 11ANI Pharmaceuticals Reports Second Quarter and Year-To-Date 2015 Results and Highlights 12ANI Pharmaceuticals Reports Second Quarter and Year-To-Date 2015 Results and Highlights 13ANI Pharmaceuticals Reports Second Quarter and Year-To-Date 2015 Results and Highlights 14ANI Pharmaceuticals Reports Second Quarter and Year-To-Date 2015 Results and Highlights 15ANI Pharmaceuticals Reports Second Quarter and Year-To-Date 2015 Results and Highlights 16Restore Health Secures Another Clinical Trial with Ironshore Pharmaceuticals & Development 2BC Technical Acquires Ohio Valley Medical Systems 2
... reference laboratory and a worldwide leader in ... an extensive test menu of highly complex ... anatomic pathology. Owned by the University of ... half of the nation's university teaching hospitals ...
... national reference laboratory and a worldwide leader ... offers an extensive test menu of highly ... and anatomic pathology. Owned by the University ... than half of the nation's university teaching ...
... ARUP Laboratories is a national reference laboratory ... research and development. ARUP offers an extensive ... medical tests in clinical and anatomic pathology. ... Laboratories' clients include more than half of ...
... ARUP Laboratories is a national reference ... laboratory research and development. ARUP offers an ... unique medical tests in clinical and anatomic ... ARUP Laboratories' clients include more than half ...
Medicine Products: