Entropia's grid can support literally millions of PCs, providing as much as tens of teraflops of computing power, more than the combined processing power of the world's most powerful supercomputers. The software runs completely unobtrusively, applying unused processing power to the research even while the PC is being used. Beginning today, critical financial research will be vastly accelerated. We are pleased that our global distributed computing grid enables yet another important research effort. SaferMarkets joins FightAIDSatHome , which is speeding the search for better drugs to combat the AIDS virus.
People can choose to support both research projects at the same time if they wish.
The SaferMarkets project will be deployed in three phases. In Phase I, simulated historical data will be created and analyzed to test and refine mathematical formulas for predicting the probability, degree and duration of future market volatility. The final phase will explore applicability of these formulas to individual equities. The model that will be used is based on the concept of stochastic volatility, which is capable of explaining the frequencies of ordinary and extreme market movements. Stochastic volatility models can help investors allocate assets between stocks and bonds, reduce a variety of economic risks and understand the link between volatility and expected rates of return.