The Skinny on Quantitative Finance - February 12, 2021 - Power Laws
What do avalanches, mass extinction events, and financial crashes all have in common? The underlying systems in all three extreme examples can be described using power laws. Power laws can be used to identify likely critical points in a complex system, and potentially forecast when extreme phase transitions may happen. Join Tom, Tony and Julia as they discuss power laws and how they can be applied to financial markets. Reference links: https://er.ethz.ch/financial-crisis-observatory.htmlhttp://tasmania.ethz.ch/pubfco/fco.html