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Stochastic Analysis

A term from the far-off land of statistics in which a disparate set of points are analyzed to find patterns that would lead the analyzer to a logical conclusion.

It comes in two flavors: slow and fast, with the fast being much more sensitive to the tiny squiggles and jumps in a stock's price.

It's like using math to read a crystal ball.

Find other enlightening terms in Shmoop Finance Genius Bar(f)