What does the Hurst exponent indicate about the long-term memory properties of a time series, and how does it impact the predictability of its future values?

What the Hurst exponent reveals about time series — H > 0.5 means trending, H < 0.5 means mean-reverting

Hurst exponent (H) indicates time series behavior: H > 0.5 indicates trend, H < 0.5 indicates mean reversion

What theta decay does to options — time value erodes faster as expiration approaches

Theta decay accelerates as expiration nears, diminishing options' time value

What implied volatility tells you — the market's expectation of future price movement

Implied volatility indicates the market's anticipated future price fluctuation of an asset

What an inverted yield curve signals — short-term rates exceed long-term, often predicts recession

Inverted yield curve typically signals an impending economic recession

What the efficient market hypothesis claims — prices reflect all available information

Efficient Market Hypothesis: Prices incorporate all publicly available information

What the yield curve shows — interest rates across different bond maturities

The yield curve illustrates the relationship between bond yields and their maturities