Professional managers often observe that during times of market stress (such as in 2008), correlations between asset classes tend to converge. Most asset allocation models are based on certain ...

The product moment correlation coefficient is often used even for ordinal data with only a few scale steps. This procedure may lead to biased results, where the bias depends on the number of scale ...

Take a quick look at the two panels of Figure 1 and estimate the correlation for the two funds in both panels. Really, please do it now. What's your gut feel of the correlation of each set? If you are ...

There are some strange correlations out there. For example, a recent article in the Financial Times cited data showing a correlation between share price and CEO manners. Those CEOs who said “please” ...

Investors have long desired to outperform “the market,” but they are currently using a methodology that has become a bit stale. A dynamic and newly preferred method has developed in academia, and it ...