**📅 Date:** ➤ ⌈ [[2025-06-07-Sat〚Front Month ▪Convergence & Regression ▪Hedge Funds ▪ Human Flourishing 〛]]⌋ **💭 What:** ➤ You can only operate the front month and Differed, Further deferred ➤ Converge 回归 Regression 中值回归 ➤ Long = buy， Short = Sell ⇩ 🅻🅸🅽🅺🆂 ⇩ **🏷️ Tags**: #💰/Economy **🗂 Menu**: ⌈[[✢ E C O ➣ 0∞ ⌈C F A ⌉ ✢]]⌋ ⌈[[✢ M O C ➣ 06 ⌈J U N - 2 0 2 5⌉ ✢|2025 - J U N- MOC]]⌋ ⌈[[✢ L O G ➢ 06 ⌈J U N - 2 0 2 5⌉ ✢|2025 - J U N - LOG]]⌋ #👾/Private ---   ## Ie: Front, Differed, Further Month #### 1. Front Month -> Next nearest month  #### If the contract expires on July 7th #### Differed Month (after front, 3-4month)  Differed延时 month -> back month, far month 延时  If the contract is oct 7th #### Further Differed Month (more than 3- 4 months)  Further deferred month --- ## I. Case Study - Market Economy Where has a gap that the inefficny will be midigate 2020 the coivid happend the crewed oil market present backwardation, the market started adjusting itself together with trader's trading strategies, the trader ==go long（买）== the front-month contract, and short the differed month contract, and help the future pricing converge to normal status/ stage Where there is a gap, inefficiency will eventually be mitigated. In 2020, when COVID-19 hit, the crude oil market entered a state of **backwardation**. The market began adjusting itself, along with traders’ strategies. Traders would **go long** on the front-month contracts and **short** the deferred-month contracts, helping future pricing gradually converge back to a more normal state. --- ### Market Correction - 市场的自我修理 BBC，CNN sometimes they make the wars seems so Immidiate switch to backwardation, how a hedged decided to short commodity positions during chock ie: the short of oil duirng war, Hospital 用电量 - 卫星云图