Stochastic Quotes & Sayings

Price mostly meanders around recent price until a big shift in opinion occurs, causing price to jump up or down. This is crudely modeled by quants using something called a jump-diffusion process model. Again, what does this have to do with an asset's true intrinsic value? Not much. Fortunately, the value-focused investor doesn't have to worry about these statistical methods and jargon. Stochastic calculus, information theory, GARCH variants, statistics, or time-series analysis is interesting if you're into it, but for the value investor, it is mostly noise and not worth pursuing. The value investor needs to accept that often price can be wrong for long periods and occasionally offers interesting discounts to value. — Nick Gogerty

A dictionary resembles the world more than a novel does, because the world is not a coherent sequence of actions but a constellation of things perceived. It is looked at, unrelated things congregate, and geographic proximity gives them meaning. If events follow each other, they are believed to be a story. But in a dictionary, time doesn't exist: ABC is neither more nor less chronological than BCA. To portray your life in order would be absurd: I remember you at random. My brain resurrects you through stochastic details, like picking marbles out of a bag. — Edouard Leve

We may say, in a broad way, that Greek philosophy down to Aristotle expresses the mentality appropriate to the City State; that Stoicism is appropriate to a cosmopolitan despotism; that stochastic philosophy is an intellectual expression of the Church as an organization; that philosophy since Descartes, or at any rate since Locke, tends to embody the prejudices of the commercial middle class; and that Marxism and Fascism are the philosophies appropriate to the modern industrial state. — Bertrand Russell

Briefly speaking, our conclusion is that stochastic volatility does not make a huge difference as far as the pricing is concerned if you get the average volatility right. It makes a big difference as far as hedging is concerned. — John Hull

There is no possibility of failure because you only control your actions and they only influence the probable evolution of your life over stochastic future paths. There is no failure, only feedback. — Arthur De Vany

The best transactions in families or between friends occur on the fly. They come as stochastic shocks, or serendipities.

People often step out onto our path as we are hurrying to a meeting or intent on finishing a project, and it usually turns out that the meeting or the project was inconsequential compared to the chance to get closer to someone we cared for. — Alan Loy McGinnis

The program operates on facts, and extrapolates from those facts using a complex series of stochastic functions. — Donna K. Fitch

On the theoretical side, I was concerned with stochastic resonance. — Richard Ernst

Alan White and I spent the next two or three years working together on this. We developed what is known a stochastic volatility model. This is a model where the volatility as well as the underlying asset price moves around in an unpredictable way. — John Hull

A stochastic process is about the results of convolving probabilities-which is just what management is about, as well. — Anthony Stafford Beer

What was I supposed to do then I wondered. Was there even a supposed-to for this kind of situation? A situation when when I looked at my receding past everything seemed retrospectively marked by an extreme order and predictability yet all moments since seemed to obey, and promised to continue obeying, their own set of stochastic, undisclosed, and undiscoverable laws. Where I was fully aware of the pitfalls and folly of a finely-tuned narcissism but still the known universe seemed to bend and bend inexorably inward and towards me where it awaited my next move, supremely ready to react accordingly. And how I knew that decisions I would soon make or defer would have near-Sophoclean import and yet nonetheless it all seemed oddly irrelevant. — Sergio De La Pava