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Fig. 2 | Probability, Uncertainty and Quantitative Risk

Fig. 2

From: Zero covariation returns

Fig. 2

The upper panel presents a graph of the two simulated contemporaneous returns reflecting mean reversion dependence in the tails with a central motion that is one of independent increments by construction. The lower panel presents a graph of the second simulated stock price as a function of the first simulated stock prices. We observe the tendency of the two prices to maintain a stable ratio between themselves

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