Scientific research trumps basic intuition and common sense.

Amy Hamilton

2019-08-30 11:35:00 Fri ET

The conventional wisdom suggests that chameleons change their skin coloration to camouflage their presence for survival through Darwinian biological evolution.  This naive intuition seems so natural and nomological that most people assume so on the basis of common sense. However, scientific research demonstrates that chameleons run much faster than their predators. This fresh insight causes many scientists to view camouflage as part of the story for this functional skin coloration. More recent research suggests that chameleons typically vary their skin coloration to express key social signals in response to other chameleons, external conditions, and physiological changes. For instance, bright skin color signals an aggressive emotion while dark skin color reflects a submissive reaction.

Overall, scientific research trumps basic intuition and common sense. The same idea applies to the economic science of dynamic asset management too. We often need to learn from fundamental factors in order to decipher economic insights into how macroeconomic fluctuations manifest in the cross-section of average asset returns. These fundamental factors include the return spreads between the top-to-bottom 30% of stocks for size, value, momentum, asset growth, cash profitability, and market risk exposure. Our proprietary alpha investment algorithm serves this fundamental purpose.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

American unemployment declines to the 50-year historical low level of 3.5% with moderate job growth.

Chanel Holden

2019-11-19 09:33:00 Tuesday ET

American unemployment declines to the 50-year historical low level of 3.5% with moderate job growth.

American unemployment declines to the 50-year historical low level of 3.5% with moderate job growth. Despite a sharp slowdown in U.S. services and utilities

+See More

Former Fed Chair Paul Volcker releases his memoir, talks about American public governance, and worries about plutocracy in America.

Apple Boston

2018-10-23 12:36:00 Tuesday ET

Former Fed Chair Paul Volcker releases his memoir, talks about American public governance, and worries about plutocracy in America.

Former Fed Chair Paul Volcker releases his memoir, talks about American public governance, and worries about plutocracy in America. Volcker suggests that pu

+See More

Smart firms and customers connect the continuous flow of lean production to the lean consumption of cost-effective minimum viable products.

Olivia London

2020-07-26 15:29:00 Sunday ET

Smart firms and customers connect the continuous flow of lean production to the lean consumption of cost-effective minimum viable products.

Firms and customers create value and wealth together by joining the continual flow of small batches of lean production to the lean consumption of cost-effec

+See More

Economic policy incrementalism for better fiscal and monetary policy coordination

Becky Berkman

2023-12-07 07:22:00 Thursday ET

Economic policy incrementalism for better fiscal and monetary policy coordination

Economic policy incrementalism for better fiscal and monetary policy coordination Traditionally, fiscal and monetary policies were made incrementally. In

+See More

What are the mainstream technological advances in the global auto industry?

Chanel Holden

2024-04-30 09:30:00 Tuesday ET

What are the mainstream technological advances in the global auto industry?

With clean and green energy resources and electric vehicles, the global auto industry now navigates at a newer and faster pace. Both BYD and Tesla have

+See More

New Keynesian monetary policy framework

Monica McNeil

2023-09-21 09:26:00 Thursday ET

New Keynesian monetary policy framework

Jordi Gali delves into the science of the New Keynesian monetary policy framework with economic output and inflation stabilization. Jordi Gali (2015)

+See More