Almost every day you can find in media commentary that XYZ is causing stocks to fall (or rise). Such definitive statements are common—but what’s almost always missing is statistical proof. And if you ...

Correlation measures the linear relationship between two variables. It gives an indication of the strength of the relationship by measuring and relating the variance of each. Correlation answers the ...

What is Pearson correlation test, Pearson product moment correlation or Pearson r? Pearson’s correlation helps us understand the relationship between two quantitative variables when the relationship ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Thomas J. Brock is a CFA and CPA with more than 20 years of experience in various areas including investing, ...

In general, stock correlation refers to how stocks move in relation to one another. While we can speak generally about asset classes being positively or negatively correlated, we can also specifically ...

Investors understand intuitively that some stocks are riskier than others. The capital asset pricing model attempts to quantify the common perception of risk using a term called beta. By understanding ...

Regression imputation is commonly used to compensate for item nonresponse when auxiliary data are available. It is common practice to compute survey estimators by treating imputed values as observed ...

This article deals with the use and misuse of the correlation coefficient when the dependent variable is of a dichotomous 0,1 nature. It focuses particularly on problems relating to curvilinearity and ...