Daniel Sicart
Westbury, NY (USA)
Role(s):
MROP Inc
Find More Startups
Startup
Location:
Westbury
Industry:
Finance
Year Founded:
2008
Number Employees:
INVALID
Description:
A. Background:
MROP Inc. is a company whose main objective will be to commercialize an investment platform or system based on the theory of Mean Reversion. Mean Reversion assumes that all assets trade at an equilibrium value. If these assets trade above the fair or equilibrium value, it is expected that they will eventually decline to the equilibrium value. Similarly, Mean Reversion assumes that if an asset trades below its equilibrium value it will eventually rise to the equilibrium value. The equilibrium value is the average price of the stock over a period of three years.
The concept of Mean Reversion is useful in capital market research because it allows managers and traders alike to organize large streams of information. Presently, Mean Reversion is still a marginal schoo