Trader13 Aug 21, 2015 #11 aqtrader said: Correlation is extremely important in risk control no matter others agree or not. It is a part of regression analysis. More... Please describe how correlation is a part of regression analysis?
aqtrader said: Correlation is extremely important in risk control no matter others agree or not. It is a part of regression analysis. More... Please describe how correlation is a part of regression analysis?
A aqtrader Aug 21, 2015 #12 Trader13 said: Please describe how correlation is a part of regression analysis? More... https://en.m.wikipedia.org/wiki/Regression_analysis
Trader13 said: Please describe how correlation is a part of regression analysis? More... https://en.m.wikipedia.org/wiki/Regression_analysis
debitspread Aug 21, 2015 #13 aqtrader said: https://en.m.wikipedia.org/wiki/Regression_analysis More... To save you reading pages of Wiki, correlation coefficient is just the regression beta normalized by the ratio of the two standard devs.
aqtrader said: https://en.m.wikipedia.org/wiki/Regression_analysis More... To save you reading pages of Wiki, correlation coefficient is just the regression beta normalized by the ratio of the two standard devs.
Trader13 Aug 21, 2015 #14 debitspread said: To save you reading pages of Wiki, correlation coefficient is just the regression beta normalized by the ratio of the two standard devs. More... yes, indeed, thank you. as stated previously, the difference between correlation and cointegration is key for pair trading.
debitspread said: To save you reading pages of Wiki, correlation coefficient is just the regression beta normalized by the ratio of the two standard devs. More... yes, indeed, thank you. as stated previously, the difference between correlation and cointegration is key for pair trading.