The Divergence Cyclicality

Economics Policy Journal, 2010

Posted: 10 Apr 2011

Date Written: August 15, 2010


Divergence is an understudied subject loosely defined as an unpredictable random error. The classification of divergences as small or large is also at the heart of efficient or inefficient market theory debate. This paper explains how divergence is cyclical and can be quantified and used as a predictive model.

Keywords: divergence, cyclicality, relative performance, rate of change, assets, rank, distribution

JEL Classification: G10

Suggested Citation

Pal, Mukul and Nistor, Ioan Alin, The Divergence Cyclicality (August 15, 2010). Economics Policy Journal, 2010, Available at SSRN:

Mukul Pal (Contact Author)

AlphaBlock ( email )

Toronto, Ontario M8Z 2H6


Ioan Alin Nistor

Orpheus Capitals ( email )

13 Parang Street, No.20
Cluj Napoca, Cluj 400552

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