Effective Domain Count
Methodology· DE: Effektive Domänenzahl
How many TRULY independent domains a confluence read is worth once correlation is measured. "5 of 5 aligned" can be effectively 3.x if two components are near-duplicates. Prevents selling schein-diversity — the same error (correlated clones as a quorum) the platform criticises in others.
Calculation
Participation ratio of the eigenvalues of the rolling (365d) Pearson correlation matrix of the component conviction series: N_eff = (Σλ)² / Σλ². Ranges 1 (all identical) to K (all orthogonal).
Unit & source
count · tradingstrategies.work Confluence-State methodology
Related terms
Definitions are for research and education. Metrics describe market conditions — not financial advice or a buy/sell signal.