nonanticipation

Example:This principle, known as nonanticipation, underpins the theory behind the creation of fair coin flips in deterministic models.

Definition:A theoretical concept in stochastic processes and information theory that states an event is not considered as having happened until after it has occurred.

Example:In the field of statistical arbitrage, a nonanticipating filtration is crucial for ensuring that trading strategies are not influenced by future market movements.

Definition:A concept in stochastic analysis referring to a filtration (a family of sigma-algebras indexed by time) which satisfies the nonanticipation property, meaning the information available up to a certain time does not contain information about future events.