The phrase
"high correlation" means that when one thing happens or changes, the other thing is likely to happen or change too. They are closely linked or connected to each other.
Full definition
In fact, research has shown a very
high correlation between the amount of sex in a marriage and the level of satisfaction by the partners.
Notice, though, that this higher yield comes at the price of
higher correlation with equities and thus less diversification.
I supported the use of the data due to the very
high correlation of daily returns during the overlap period.
The managed futures funds have
shown higher correlation among themselves and lower correlation to equities and REITs over the past 6 months.
The reports also looked at the context of these scores, and
found high correlations between students in homes that play math and reading games with advanced fourth grade achievement.
Although
high correlations do not imply product identity, there are a good starting point for further analysis.
By contrast, the Positive and the Positive — Negative profiles showed greater similarities as indicated
by high correlations between male and female profiles and few differences in core markers.
Looking back before the most recent crisis, we also
saw high correlations during earlier periods of stress.
Again, the overall conclusion is that there's a
pretty high correlation between various stock market sectors, and if anything, those correlations have been increasing in recent history.
Importantly, two studies [21]
calculate higher correlations between estimates that use different models than between estimates that use different exams.
Similarly
high correlations exist between growth and value investment flavors, as well as industries within a particular country.
We seek to construct a discounted portfolio of stocks consisting of companies which due to the geographic and sector diversification of the underlying assets are less likely to
display high correlations to the market.
The analysis showed a similar story to what we saw in flexible income funds:
high correlation with stock funds, which led to large losses in 2008 compared with the benchmark 60/40 portfolio.
Historically, there's
high correlation between unemployment and mortgage defaults, and that could mean more trouble yet to come.
Publication: Immunofluorescent and fluorescent - protein tagging show
high correlation for protein localization in mammalian cells Stadler, C., Rexhepaj, E., Singan, V.R., Murphy, R.F., Pepperkok, R., Uhlen, M., Simpson, J.C. and Lundberg, E. Nature Methods, online 24 February Journal website
With respect to convergent validity, most measures
demonstrated high correlations with other measures that were purported to assess similar constructs (range =.13 — .88; median =.63).
All datasets
produce high correlations of anomalies versus independent observations from radiosondes (balloons), but differ somewhat in the metric of most interest, the linear trend beginning in 1979.
In the past there have been periods of
relatively high correlation between US and non-US stocks, followed by periods of lower correlation.
That said, gold mining stocks have both a
persistently high correlation with gold prices, and the change in gold prices can explain nearly 45 % of the movement in these stocks (using weekly data going back to the late 1980s).
Models of student achievement in a given year as a function of prior achievement and other controls tend to
give higher correlations than other models, see: Daniel F. McCaffrey, Tim R. Sass, J. R. Lockwood, and Kata Mihaly, «The intertemporal variability of teacher effect estimates,» Education Finance and Policy, 4, no. 4, (2009): 572 - 606.
Our point was that low correlations don't automatically make it a good environment for active managers (as many have asserted), nor do
high correlations mean that there's no room for active managers to add value.
Based on our detailed analysis of supply chain companies with
historically high correlations to iPhone unit sales, we revise our iPhone unit estimates [lower],» analyst Toni Sacconaghi wrote in a note to clients Thursday.
Fixed income is less attractive
at higher correlations, particularly after accounting for low forward return expectations.
«In fact, studies show that the effects of currency risk,
progressively higher correlations (e.g. diminishing diversification), foreign taxes and costs outweigh any benefits of higher foreign stock allocations.»
Periods of crisis — and their
associated high correlations — don't last, and the benefits of diversification are derived, almost imperceptibly, over a multi-year time frame.
What I can tell you right now with the data in front of me is that Z - Oswing % has a
significantly higher correlation efficient with wRC + than Z - Swing or O - swing alone.
Consistent with this perspective, studies of spousal concordance in marital appraisals document
substantially higher correlations between husband and wife reports of conflict relative to positive marital characteristics (Carr & Boerner, 2009).
This is a distressing use of statistics, because two data series will always have an extremely
high correlation if both series capture an uncorrected diagonal move.
Tung and Camp filtered out the noise using various statistical techniques and found an
even higher correlation with the solar cycle.
That is, there has been a
reasonably high correlation in the timing of recessions and expansions among developed countries over the past few decades.