Event-Cascade Analysis
Depth of Analysis: Nth-Order Effects
1st-Order Effect: The direct consequence of an event. The entire market sees it.
2nd-Order Effect: The reaction to the first consequence. Good analysts see it.
3rd-Order Effect: The reaction to the second-order effect. It is typically noticed only in hindsight.
Assetro doesn't just notice 3rd-order and higher effects - it calculates the points where the effects from unrelated events will intersect, creating a superposition on the asset where the effects overlap.
"Two stones are dropped at opposite ends of a lake. The market watches each stone individually. Assetro watches the entire lake and sees where the waves from the two stones will intersect to create an anomalously high wave."
Causal Diversification
A single trigger event initiates cascades that affect several different, unrelated assets. Assetro forms a unified strategy from them. If one of the assets is blocked by the actions of a regulator or a major player, the strategy will continue to work through the other assets, actualizing the original thesis.
Classical Diversification
"Don't put all your eggs in one basket." It reduces risk but dilutes the impact of a strong investment thesis.
Causal Diversification
"One thesis, many paths." It doesn't dilute but protects and reinforces the thesis, making it resilient to blockages.
Scientific Foundation
A synthesis of proven scientific disciplines for analyzing complex systems.