Learn about correlation, including how it measures the relationship between securities, along with how it aids in diversifying your portfolio and risk management.

We show that widely used approaches in statistical physics incorrectly indicate the existence of power-law cross-correlations between financial stock market fluctuations measured over several years ...

Usually when it comes to writing, mathematics and statistics probably aren’t the first things that come to mind. However, quite the number of us have had to face an instance where a source based on ...

In the first case, there is a strong upward-sloping relationship between X and Y; in the second case, no apparent relationship; in the third case, a strong downward-sloping relationship. Note the ...

Correlation doesn't imply causation. You've probably heard that before. It's a true statement that's important in statistical analysis—if more tall people own cats, that doesn't mean that cats cause ...

Many businesses rely on statistical analysis to organize collected information and predict future trends based on that data. While organizations have lots of options on what to do with their big data, ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...