Friday, 24 August 2018

Thoughts on stock market combining base rate (quant) with case rate(fundamental) in Bayesian manner

That's a mouthful title.
Let's take a step at a time.


Base rate: Outside view. What's happened in situations similar to these?

Case rate: Inside view. Based on careful and detailed study of the facts at hand

Combining Base + Case rate is where we flip open our Bayesian formula.