EMPIRICAL GEODESICS
Geodesics
Geodesics are paths that minimize total friction cost between two states. They represent the trajectories an economy would follow if agents collectively minimized transition costs. The metric determines the "shape" of these paths.
> Select two assets to visualize geodesics in their joint return space
> The Fisher information metric (precision matrix) defines economic distance
> Geodesic shape reveals anisotropy in how the two assets co-move
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