Here are driven IFS plots using data (left) before May 22, 2000, the inauguration of Taiwan's new president, and (right) after May 22, 2000. | ||
In the longer record, Wu observed the subsquare with address 323 is empty. This is plausible, because this address signals a rise, fall, and rise of the TAIEX, and corresponding fall, rise, and fall of the SSE. | ||
After the inauguration of the new president, Wu observed | ||
(1) most points land in squares with address 2 and 4, signaling declines in the TAIEX, | ||
(2) the small population of points in addresses 33 and 44 indicate few consecutive falls in the SSE, and | ||
(3) the larger number of points in square 22 shows there were many consecutive falls in the TAIEX, simultaneous with rises in the SSE. | ||
Although we must be careful with deductions made on such small data sets, the general observation matches known trends: China's market continued to grow, while Taiwan's lost over half its value in this time period. | ||
Of course, we don't need driven IFS to notice this. However, driven IFS are good at detecting fairly long and convoluted correlations in the data. |
Return to Driven IFS and the Taiwanese and Chinese Stock Markets.