30 years: Financial markets trader
All metrics used to analyse financial markets have limitations. As you will see in this video, correlation and covariance are no different.
All metrics used to analyse financial markets have limitations. As you will see in this video, correlation and covariance are no different.
4 mins 8 secs
While correlation is a helpful measure, it is by no means perfect. Some of its limitations include change over time, correlation vs causation and the relative strength of correlation.
Key learning objectives:
Understand and interpret the limitations of correlation
05:39
05:38
03:58
04:56
04:34
04:40
05:42
04:41
04:16
07:58
05:14