This is the basic formula with which our Odds Engine works through Conditional Probabilities:
y = (Period - (P(R3)|P(S3)))/(P(R3)|P(S3))
Given recent moves in Coeur Mining, we are now able to compute the following Conditional Probabilities for a set of price points over the next 9 months:
Conditional Probabilities for all portfolio constituents are calculated automatically and results are subsequently re-processed by the Odds Engine’s Dutch Tree module. In a word, a target is a dependent variable.