Showing posts with label Markets. Show all posts
Showing posts with label Markets. Show all posts

1.5.09

H1N1


Bloomberg is tracking the swine flu. The index follows the number of cases reported by the WHO.

I wonder if some quant will figure out a way to trade different flu viruses. There could be spread markets where you short the H2N5 flu and go long the H1N1 flu. I wonder if flus are mean reverting, have jumps, follow geometric Brownian motion, obey a power law or increase exponentially. I guess it depends on how you define the index.