Return to Answer

Question “When we speak about Parrondo's Paradox in relation to stock markets, is there a direct relation between both of them?”

Professor Parrondo:

I could say, no, no direct with the original ones, because the probability in the original ones depends from how much capital do you have, then it is a random walk with no uniform probabilities and it is very unlikely to have in the stock market, but it is true that there is something that is no very well know, but it is well known in stock markets, called “volatility pump” you split your inversion in two assets 50:50 and you keep this percentage of the capital in the assets re-balancing our inversion every day , you can relate it to the paradox because you can convert this two loser assets in a winning one. But this idea came from 100 years ago from “Feller” and his work about multiplicative process where the average go to infinitive and the probability density go to cero.

— Professor Parrondo interview

Question “When we speak about Parrondo's Paradox in relation to stock markets, is there a direct relation between both of them?”

Professor Parrondo:

I could say, no, no direct with the original ones, because the probability in the original ones depends from how much capital do you have, then it is a random walk with no uniform probabilities and it is very unlikely to have in the stock market, but it is true that there is something that is no very well know, but it is well known in stock markets, called “volatility pump” you split your inversion in two assets 50:50 and you keep this percentage of the capital in the assets re-balancing our inversion every day , you can relate it to the paradox because you can convert this two loser assets in a winning one. But this idea came from 100 years ago from “Feller” and his work about multiplicative process where the average go to infinitive and the probability density go to cero.

— Professor Parrondo interview

Question“When we speak about Parrondo's Paradox in relation to stock markets, is there a direct relation between both of them?”

Professor Parrondo:“ I could say, no, no direct with the original ones, because the probability in the original ones depends from how much capital do you have, then it is a random walk with no uniform probabilities and it is very unlikely to have in the stock market, but it is true that there is something that is no very well know, but it is well known in stock markets, called “volatility pump” you split your inversion in two assets 50:50 and you keep this percentage of the capital in the assets re-balancing our inversion every day , you can relate it to the paradox because you can convert this two loser assets in a winning one. But this idea came from 100 years ago from “Feller” and his work about multiplicative process where the average go to infinitive and the probability density go to cero” (Professor Parrondo interview)

Question “When we speak about Parrondo's Paradox in relation to stock markets, is there a direct relation between both of them?”

Professor Parrondo:

I could say, no, no direct with the original ones, because the probability in the original ones depends from how much capital do you have, then it is a random walk with no uniform probabilities and it is very unlikely to have in the stock market, but it is true that there is something that is no very well know, but it is well known in stock markets, called “volatility pump” you split your inversion in two assets 50:50 and you keep this percentage of the capital in the assets re-balancing our inversion every day , you can relate it to the paradox because you can convert this two loser assets in a winning one. But this idea came from 100 years ago from “Feller” and his work about multiplicative process where the average go to infinitive and the probability density go to cero.

— Professor Parrondo interview

Question“When we speak about Parrondo's Games in relation to stock markets, is there a direct relation between both of them?”

Professor Parrondo:“ I could say, no, no direct with the original ones, because the probability in the original ones depends from how much capital do you have, then it is a random walk with no uniform probabilities and it is very unlikely to have in the stock market, but it is true that there is something that is no very well know, but it is well known in stock markets, called “volatility pump” you split your inversion in two assets 50:50 and you keep this percentage of the capital in the assets re-balancing our inversion every day , you can relate it to the paradox because you can convert this two loser assets in a winning one. But this idea came from 100 years ago from “Feller” and his work about multiplicative process where the average go to infinitive and the probability density go to cero” (Professor Parrondo interview)

Question“When we speak about Parrondo's Paradox in relation to stock markets, is there a direct relation between both of them?”

Professor Parrondo:“ I could say, no, no direct with the original ones, because the probability in the original ones depends from how much capital do you have, then it is a random walk with no uniform probabilities and it is very unlikely to have in the stock market, but it is true that there is something that is no very well know, but it is well known in stock markets, called “volatility pump” you split your inversion in two assets 50:50 and you keep this percentage of the capital in the assets re-balancing our inversion every day , you can relate it to the paradox because you can convert this two loser assets in a winning one. But this idea came from 100 years ago from “Feller” and his work about multiplicative process where the average go to infinitive and the probability density go to cero” (Professor Parrondo interview)