Ecological and Coevolutionary Dynamics in Modern Markets Yield Nonstationarity in Market Efficiencies

Figure 9

Regression results for log vs. log forward volatility (a) and log vs. log realized opportunity cost (ROC) (b). The solid red line shows the first principal component, the dashed red line shows the second principal component, and the black lines are density contours of the data. The fit line is shown in blue, and its equation is shown in the legend. These panels highlight the strong correlation between , forward volatility, and ROC.

(a)

(b)