How to Manage Basis Risk in a Derivative Market

Bees and humans can create complex social systems on the basis of simple algaritms like this. Modern computing systems have a very different type of genius. The algorithm for predicting seasonality is enormously simpler than any sort of tempera time series analysis, or at least any temperature time series analysis available to bees and pre weather satellite humans. But that's the beauty of evolution. Billions of bee colonies over millions of years have lived and died so they could survive six months straight of sub 50 degree weather.