I often teach in my statistics class that correlation should not be confused with causation. That is, observing that two variables move together does not necessarily mean that one variable caused the ...

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 ...

As he was brushing his teeth on the morning of July 17, 2014, Thomas Royen, a little-known retired German statistician, suddenly lit upon the proof of a famous conjecture at the intersection of ...

Elvis Picardo is a regular contributor to Investopedia and has 25+ years of experience as a portfolio manager with diverse capital markets experience. Yarilet Perez is an experienced multimedia ...

Many mutual-fund investors strive for diversified portfolios, but few fully grasp a concept that is key to achieving that aim: correlation. Correlation is the extent to which assets perform in ...