I don't understand what the statement means. I understand what compression is, lose the attitude. If you want to explain in English what this means I am all ears, if you can enlighten us on what the article means I would appreciate it, calling someone illiterate is not mature nor conduvice to an adult discussion of the topic.
Read this paper: http://www.badros.com/greg/papers/badros-dcc94.pdf Then apologise for your behavior.
This is an extremely interesting paper. Thanks a lot. I also think that kut2k2 must apologize for his behavior. The term "compression" is often used in finance to describe a large class of forecasting algorithms.
ok I see what he is talking about, the statement re lossy compression in the article is confusing to a lay person ( ie. non quant). Thanks for the paper though. It seems in the paper the authors per Vaga have come up with 4 market modes along with the compression analysis, very interesting. Looks like their simulation did better on the European markets.