(Science20) Stock price movements are predictable during short windows, according to a paper written by academics in the Tippie College of Business at the University of Iowa.
They write that price movements can be predicted with a better than 50-50 accuracy for anywhere up to one minute after the stock leaves the confines of its bid-ask spread. Probabilities continue to be significant until about five minutes after it leaves the spread. By 30 minutes, the predictability window has closed.
So if you have a billion dollars to arbitrage, you can make some money.
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