I am a Crabby Person. A Gallery of my Crabs
 |
| Rainbow Crabs from Nigeria |
 |
| Red Apple Crab from Borneo |
 |
| Vampire Crab from Thailand |
A Comparison of Four Noise Reduction Algorithms as Applied to the BSE Sensex index.
Chart 1: Noise Reduction Algorithms Compared. Data as of 12 June 2025 As compared with established and mature stock exchanges such as the New York, Japanese and European stock exchanges, frontier and emerging stock exchanges have a higher level of ‘noise’. In financial markets, "noise" refers to the erratic and often unpredictable fluctuations in price and volume that can make it difficult to discern genuine market trends. This noise can stem from various sources, including news reports, market sentiment, and even algorithmic trading. It essentially obscures the underlying fundamental value of an asset, making it difficult for investors to make sound decision. In this post, I am applying four types of de-noising algorithms on the Bombay Stock Exchange Sensex Index (“BSE” or “Sensex”). My hypothesis is that the Sensex has a high level of noise. This is because a large proportion of the investors on the approximately 5000 stocks listed on the BSE are retail investors stee...
Comments
Post a Comment