Thus, if we calculate the correlation coefficient including this outlier, it would suggest a weaker correlation between the stock and the S&P 500 than actually exists on most trading days.

Correlation coefficients are used in science and finance to assess the degree of association between two variables, factors, or data sets. For example, as high oil prices are favorable for crude ...

Graphically, this can be seen below. Note that the two means are equal, but the two standard deviations are different. The larger standard deviation has a CoV of 0.03, or 3%, while the smaller ...

Bitcoin's price now correlates more strongly to copper futures than to traditional equity indexes. BTC’s correlation coefficient relative to copper has risen to 0.84 from 0.27 a month ago ...

Correlation is not causation, but it sure is a hint.” Here are some further examples demonstrating this logical fallacy: As ice cream sales increase, the rate of drowning deaths increases.

But since 2009, this correlation has been direct: if this correlation keeps going direct, the two curves will go down together. I can't understand what is happening and maybe you readers can help me.