What Are The MAIN Types of Correlation Explained Simply? #statistics #gouravmanjrekar
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Pearson correlation measures linear dependence between two return streams as a single number between minus one and plus one. Compute it across thousands of instruments and you get a correlation matrix, the structural map of how the market moves together. Pairs that share a factor (same currency leg, same sector, same risk regime) cluster near plus or minus one by construction. The residual between them, fit by OLS, is the variance the shared factor cannot explain. If that residual is stationary,
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Causation VS Correlation, it matters everywhere BUT in politics for some reason, and SOME politicians would prefer ypu dont understand the significance between the two. #Canada #causeandeffect #Politics #causation #correlation
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There are studies showing a correlation between higher body fat (especially obesity) and slightly reduced brain volume in certain regions, as well as changes in inflammation and blood flow. But that does not mean “getting fat makes your brain shrink” in a direct, automatic way.
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