Jul

13

Symmetry, from Jim Sogi

July 13, 2007 |

Symmetry is a basic characteristic of the universe and of the markets. Vic and Laurel have raised this concept in music, Lobogola, bridges. Weyl, in his book Symmetry, talks about symmetry in the history of human civilization, and how groups arise in the the study of symmetry. In Strange Curves, Counting Rabbits, and other Mathematical Explorations by Keith Ball, which Vic and Laurel recommended, is a discussion about the decimalization of fractions and how repetitive groups arise in the sequences. The combinations are endless as is the number of primes. There is a whole branch of math called Group Theory. The peculiarity is that a fraction is exactly stated, but most decimalization never are, and our digital computers never arrive at the proper result, only an approximation or rounding.

Such theory can be profitably applied to the markets, as we return to last week's S&P price after a Lobogola move of stampeding elephants charging down, and right back up over the same ground.

Dylan Distasio writes:

There is also a subset of evolutionary theory that points towards symmetry in nature as a sign of health, resulting in improved chances of mating for more symmetrical males across many species. The idea is that symmetry in living organisms requires a great deal of energy to be achieved, and hence the organism must be healthy if it has a pleasing symmetrical shape. And as an added bonus for symmetrical humans of the male (and by extension female) persuasion:

"Experiments have found that women are more attracted to men who have features that are more symmetrical than other men. One study even found that women have more orgasms during sex with men who were more symmetrical, regardless of their level of romantic attachment or the guys' sexual experience." 

As an aside, I would highly recommend "The Red Queen" as a fascinating primer on why sexual reproduction may have evolved as a means of reproducing.

Part of the theory is that plumage and symmetry in birds evolved as a sign of health, making them more attractive to females. It also deals with sexual reproduction as a panacea against the ebb and flow of parasites evolving in a constant battle across time with their host organisms.

I'm not sure what the equivalent of sexual reproduction would be in the markets, but I can see clear analogies between the parasites and market arbitrageurs (no offense intended) who are constantly in search of chinks in the armor of the market, looking for the fleeting free lunch before the opening is closed, and a new one has to be found.

In any case, the book is a great read with a lot of food for thought. 


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