Despite its low return, however, profitability's low and negative
correlation with the other factors makes it a helpful addition to a diversified portfolio of factor strategies.
Not exact matches
Finally, investors should consider diversifying using
factor strategies, which historically have had relatively low
correlations with each
other, and lower than sectors and single stocks have
with each
other.
He notes that while the two products have some
correlation with each
other, they cover substantially different markets and offer returns affected by very different risk
factors.
A few epidemiological studies have even found a small
correlation between SSRI use during pregnancy and ASD, but that can largely be explained by
other factors, such as the severity of a mother's depression, says Lars Henning Pedersen, at Aarhus University in Denmark, who has no affiliations
with any antidepressant manufacturers.
Other possible
factors that might explain or influence the altruistic behavior — such as higher cognition (measured by brain size), hunting in groups, or stronger social bonds between group members — showed either much weaker
correlations or no
correlation at all
with helping behaviors.
Also, although this study does show a
correlation (note that it does not prove that one causes the
other) between blood type and risk of cognitive decline, research has demonstrated that there are many
other factors that have shown to be associated
with a reduced risk of dementia.
In an effort to limit sugar consumption, diabetics generally consume more diet soda as a group, and some of the diet soda intake and dementia
correlation could be as a result of diabetes, along
with other vascular risk
factors.
Of course, that's
correlation not causation, and there are a lot of
other factors tied up in comparing 8 - hour finishers
with 16 - hour finishers — but it is food for thought.
While there is not a clear causal effect between a teacher's own academic record and his or her ability to achieve the kinds of learning gains that help students excel, most studies do find a
correlation between higher GPA and teacher effectiveness.43 Taken in aggregate
with other factors, such as experience and rank of undergraduate school, some studies have found larger positive impacts, especially for math achievement.44 For this reason, a high GPA should not be the only
factor that determines entry into the profession.
The experiment, then, was designed to answer the question as to whether this
correlation is one of causation, or merely coincident
with some
other unidentified
factor.
What's more, they tend to have a low
correlation with each
other over the long term, as each
factor is driven by very different investor behaviors or structural anomalies (Source: MSCI 12/31/14).
A
factor - based portfolio allocation strategy aims to offer diversification benefits, as individual
factors have generally low
correlation with each
other.
Another
factor to consider, beyond the fact that growth and volatility go together, is that the times when many people will need to liquidate their investments will correlate
with the times that many
other people need to liquidate their investments, and such
correlation will push down the immediate value of those investments.
I definitely overstated the
correlation (as you say, a number of
other factors can come into play) and I agree
with you that this would be a naive metric to guide an investment strategy.
As for longer trends, there are of course
other factors that could play a role, but you perhaps don't realise that the association of the trends over the last few decades
with human forcings (which include
other GHGs, aerosols, land use, ozone depletion etc.) are not just based on a
correlations.
Proxy temperature reconstructions require careful scrutiny because the proxies are not direct temperature measurements, but represent
other data and
factors that may or may not have a close
correlation with past temperatures.
And if you've got X number of
factors (a, b, c, d,...) in an equation (the full equation for the tree - ring widths or densities), then try to assert that b (temperature) is the one that you can nail to a high precision as a cause, in just such and such a linear
correlation, you'd better be ready to back up your assertion
with the exact reason why the
other factors did not affect the linearity.
Of course, the instrumental period held out would have to be randomly selected to minimize the risk of
correlation with other non-temperature
factors.
While I think it would be correct to penalize based on the null showing the same sign as the observational data for one
factor but opposite for another
factor (as there is a physical constraint that the
factors should be consistent
with each
other), I do not see how one could dismiss a case of a model showing the same magnitude of
correlation for each of the
factors simply because all of the signs are opposite.
Bart, you said (April 5, 2010 at 21:08) «Nobody expects a one to one
correlation of CO2
with temp, because there are many
other factors influencing temp as well.
The four
other factors have positive
correlation with the ability of cope critical situational.
The three marital quality domains (relationship satisfaction, supportive spouse behaviors, and free time spent
with the spouse) were correlated
with each
other in the expected direction; these
correlation coefficients ranged from.17 to.45, indicating that these
factors assessed related but distinct aspects of marital quality (shared variance ranging from.030 to.203).
Psychotic - like experiences and
correlation with childhood trauma and
other socio - demographic
factors: A cross-sectional survey in adolescence and early adulthood in China.
The SDQ seems to be a reliable and valid instrument given its high internal consistency, clear
factor structure and high
correlation with other instruments capturing the intended constructs.
The
correlation matrix suggested, in
other words, that the Maladaptive Emotion Regulation
factor should be subdivided into three lower - level
factors based on their
correlation with the adaptive strategies.
It is difficult to draw a direct
correlation to mall promotions
with sales, since buyers may be influenced by advertising and
other factors.
There is no
correlation that supports higher home prices correlate
with higher housing confidence (higher home prices have mostly likely been driven by low inventory and low mortgage rates, among
other factors).