A hedge fund manager screens for stocks in healthcare, materials, and telecoms on NASDAQ that lost money and fell less than 15% in 2022, then hunts for patterns in how they move together, treating correlation as enough without needing to prove why.
What do you want? Probably healthcare, basic materials, telecoms, NASDAQ company, loss-making. Now we're getting somewhere. We might be able to get something of a pattern. We're still speculating, however, and probably a company which in 2022 didn't drop more than say 15%. So less than the market drop. Now we're narrowing down. That whole process of thinking is a way in which hedge fund managers, for instance, will look for patterns and then look for correlations, look for causation thereafter. Sometimes the causation part's less important. We just don't know why certain things are working, but as long as they don't look completely random, like on a Tuesday afternoon between 1 and 2 stock goes up, and even then there could be a reason for it. We don't care.
