T he word AI has become a household word.  Now that OpenAI’s interpretive large language model Chat-GPT (Financed and supported by Microsoft) is being used/misused for everything from  writing essays, legal documents, for generating mathematical proofs and even telling jokes etc. I wondered how much of this is hype and how much is real. So I decided to test it out myself. First I asked  Chat-GPT (in simple spoken language)  to write me a neural net code, in particular a Rad

India has the highest AI skills penetration in the world, with 3.23 times the average of an 18-country group, according to a new LinkedIn analysis . The U.S. comes in second (2.23 times the average), followed by Germany, Israel, Canada and the U.K. The analysis also shows a skills gap between genders, with men making up two-thirds or more of the AI-skilled population in certain countries. However, the gap is slowly narrowing, with women making up 30% of the AI-skilled wo

As shown in Portfolios that Beat Markets , we compared the performance of the market with portfolios constructed/managed using a) our novel risk measure 'Tsallis Relative Entropy' ( TRE ) and b) the risk measure 'beta', usually used by investment managers. The back-studies show that, over a period of 6 years or longer, portfolio a) out performs both the market and portfolio b). Presently we have improved our risk estimates even more by taking into account the asymmetr

Is stock market skewed more towards negative returns? I am not talking about the steep downturn in the last few months due to special reasons such as COVID, Inflation worries etc. Looking at the data for S&P 500 and NASDAQ over a period of 2005 - 2019, the monthly return distributions are skewed towards negative returns (Figure 1). The risk measure (Tsallis Relative Entropy in our case) is quite different when calculated from negative and positive changes. Hence method

In a welcome distraction , Britain will be the fastest growing major industrial economy for the second straight year in 2022, according to the International Monetary Fund. There was also a boost for the City of London. An EY survey of 40 key decision-makers in the finance industry showed 87% of investors expect to put money in the U.K. next year. The nation hopes to boost tourism’s contribution to its economy to 11.4% by 2026 from about 7%. If you are interested in long te

Under Portfolios that Beat Markets , we compared the performance of the market with portfolios constructed/managed using a) our novel risk measure 'Tsallis Relative Entropy' ( TRE ) and b) the risk measure 'beta', usually used by investment managers. The back-studies show that, over a period of 6 years or longer, portfolio a) out performs both the market and portfolio b). we publish our risk tables (using our Novel Risk Measure 'Tsallis Relative Entropy'), every two mo

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Last week I read in Seattle Times that Hinton, along with two others got Turing Prize. In case you are wondering, Turing Prize is equivalent to Nobel Prize, for Technology. Hinton was a pioneer of Neural Network research in the 80's when it was not fashionable to do that. Despite that, he and a few others pushed on and finally it paid off. They got the prize for their contribution to AI technology through their research in Neural Networks. It makes me proud to say I m

Today is the 10th year anniversary of the publication of Original Bitcoin and the underlying Blockchain paper by Satoshi Nakamoto. The paper was originally published on 'P2P foundation' website! The software was also released around that time. Here is the link to orignal paper in case you are interested satoshi

I have been asked several questions regarding block-chain, In the following I have tried to answer them as well as I can. Q .1. I didn’t understand the math problem using the “nonce”. If I understand, they take the data in the proposed new block and append a large random number (the nonce). Then they run this combined number through a hash function to get a target number. Can I assume each miner knows the hash function? But then what? Do they also know the original block data

I n my earlier post I described block-chain as used in crypto currency transaction. What is the difference between the business block-chain and crypto currency block chain ? The main difference is in the creation of ‘ proof of work ’ through the process of mining in Bitcoin, which requires the consensus of the whole P2P network. Also, the transactions are public but hard to tamper with. In the business case, the mining is replaced by a ‘ selective endorsement’ . T he

Cryptocurrencies and Block Chain Technolog y Cryptocurrencies are very much talked about. Whereas trading cryptocurrencies (Bitcoin, Ethereum, Litecoin to mention a few) is highly speculative and not recommended for now, the underlying technology for secure crypto currency transactions is pretty robust. This is the “ Block-Chain ” technology. This technology is completely distributive. The transactions are directly between sender and receiver with no central agency such as