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 ...

Acquire an understanding of the concepts surrounding 'collinearity'. Appreciate the indications and symptoms of collinearity in multivariable regression. Become aware of the available diagnostic tools ...

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, ...

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 ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Contrary to the statistician's slogan, in the quantum world, certain kinds of correlations do imply causation. New research shows that in quantum mechanics, certain kinds of observations will let you ...