Black was right: Price is within a factor 2 of Value

Paper2017

by CFM

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Suggested foundations for financial time series. Specialist prerequisites vary by paper.

Stationarity and Unit Roots
Check whether a relationship can be estimated consistently over time.
Linear Regression
Read the fitted relationship and its residuals.

Cointegration and Error Correction
Study long-run relationships without confusing them with correlation.
Regression Assumptions and Diagnostics
Check the assumptions behind reported estimates.

From trading ideas to honest backtests
Choose a reproducible strategy, specify the trading rule, and test what remains after costs and estimation uncertainty.