Hi everyone! I am currently a student in University. I am trying to develop a computer based strategy in order to trade in the stock market. There is a proof in mathematics in the field of graphs, that uses kind of a "narrowing" technique in order to lower the number of graphs for proof purposes. In the proof they narrow all graphs into a group of less than 1000 graphs and they state that for each graph possible we can find a graph in the 1000 graphs group such that the graph in the group will be (kind of) similar to the graph we chose at the beginning. My question is, can we do the same thing with stocks? can we narrow very large number of stocks into a smaller group of stocks that will resemble their behavior? Not necessarily that whenever one stock in the small group crush all the stocks that resemble it will also crush, but rather in the sense that the way the stocks act after crushes (and other things) is similar. Thanks in advance!
