In this step-by-step tutorial, you'll learn the fundamentals of descriptive statistics and how to calculate them in Python. You'll find out how to describe, summarize, and represent your data visually using NumPy, SciPy, pandas, Matplotlib, and the built
Moreover, by using the Monte Carlo simulations, we check how the empirical dependence measures tend to their theoretical values. In the simulation study, we check how the parameters of the considered random variables influence the behavior of the empirical correlation and empirical scov measure. The...
Regression statistics is an array of various parameters that describe how well the measured linear regression is. Multiple Ris a correlation coefficient parameter that indicates the correlation between variables. Its value ranges from -1 to +1. The bigger the value, the stronger the correlative relat...
Trading biases are a form of cognitive bias, a term first coined in 1972 by Israeli psychologists Amos Tversky and Daniel Kahneman to describe errors in thinking, judgment, and decision-making that can arise when processing and interpreting information. Key Points With confirmation bias—the tendency...
The main difference is inhow these topics are approached.For example, in a basic stats class, confidence intervals are introduced as a way to describe the distribution ofparameters(i.e. how spread out your estimated results are). The focus is on how to make and interpret these intervals. Wi...
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Can you use any type of variable for Pearson's correlation coefficient? No, the two variables have to be measured on either an interval or ratio scale. However, both variables do not need to be measured on the same scale (e.g., one variable can be ratio and one can be interval). ...
However, the parameter definition in statistics is quite different. Parameters in statistics are used to describe a population, not just one equation. For example, themeanandvarianceof a population are both parameters. The mean represents the average value within the population, while the variance te...
Serial correlation is used in statistics to describe the relationship between observations of the same variable over specific periods. If a variable's serial correlation is measured as zero, there is no correlation, and each of the observations is independent of one another. Conversely, if a varia...
When two variables are correlated, the relative changes in their values appear to be linked. This pattern may be the result of the same underlying cause or could be pure coincidence. It is thus important to recognize the adage “correlation does not imply causation.” Nevertheless, correlation ...