Sentences with phrase «correlation model»
A correlation model refers to a statistical technique that helps identify the relationship or connection between two or more variables. It helps determine the extent to which changes in one variable might be associated with changes in another variable. It is often used to predict or understand how one variable might change based on the changes observed in another variable. Full definition
The weights are based on an empirical cross correlation model that was successful in predicting bankruptcy or not.
greenbackd.com
The economists were in the position of turkeys, whose correlation models worked perfectly well until Thanksgiving.
Since bill prices are used as the input into other pricing models (most notably the Black - Scholes option pricing model), the distortions in the Treasure market have the potential to feed into other markets (we've already seen problems with new issue bond pricing due to sharp increases in spreads and blow - ups of correlation models in the credit default swaps market).
Since then, they've been washed away by a tidal wave of MBAs, VAR / correlation models, etc... oh, and of course, an exponential expansion of trading / credit losses...
A reader sent me this article about the Gaussian copula, apparently the algorithm that underlay the correlation models Wall Streeters used to assess mortgage security and derivative risk.
It is ever so easy to create a correlation model that seems to back - cast well.
Why species need to be mobile or flying, such as spiders, grasshoppers, and snails; learn about his «Green Roof Process - Correlation Model»;