Spectral Technologies

Spectral Technologies is a firm that focuses on providing proprietary mathematical technologies to private equity, public equity and commodities hedge funds. More specifically, Spectral Technologies applies the Calculus Of Variations to certain datasets in the financial industry.

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The problem that Spectral Technologies solves is simple. Suppose that government states that in (1) January, 300 units of Natural Gas were consumed, (2) February, 270 units were consumed, (3) March, 180 units were consumed and in (4) April, 90 units were consumed. 

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An analyst was tasked with determining the number of units consumed on four different dates, January 1st, January 31st, February 1st and February 28. Many analysts divide by the number of days, creating a uniform approximation of the sub period from the period value. The analyst runs the calculation: January 1, 300/30 = 10, January 31, 300/30 = 10, February 1st, 270/28 = 9.64, February 28, 270/28 = 9.64. The problem is that first day of January is treated the exact same as one 30 days in the future and the last day of January is discontinuously different than the next day February 1st; where there is a 4% drop. 

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This uniform disaggregation from the period value to the sub period value (which corresponds to a maximal energy disaggregation) leaves much to be desired. Spectral Technologies creates a continuous (minimal energy, non-jump) disaggregation that has a number of nice properties, and fixes this problem. 

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The above problem is found all over finance, and Spectral Technologies aims to apply its techniques in all the locations where this problem is found. 

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Spectral Technologies has already applied these techniques profitably in (1) Equities, and (2) Commodities (specifically natural gas). The techniques were endorsed by Christopher Jones, Oxford PhD for their effectiveness as a trading strategy in the early 2020 period during the Federal Reserve interest rate changes. 

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