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

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?

Hurst exponent measures persistence or anti-persistence in time series, affecting predictability of future values

A p-value < 0.05 means: if H₀ is true, this result has <5% probability

A p-value < 0.05 indicates a less than 5% chance of observing data as extreme as this if the null hypothesis is true

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 the yield curve shows — interest rates across different bond maturities

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

What the Sharpe ratio measures — excess return per unit of risk: (R - Rf) / σ

Sharpe ratio: Excess return per standard deviation of portfolio returns

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

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