Q1: Delaney Mackenzie – You Don’t Know How Wrong You Are
Chat With Traders
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The Probability of Correlation in Stocks
A statistical test is like what is the likelihood that I would have observed this behavior if they were if there's no underlying relationship. The probability that two stocks line up in a way that's like Enough to pass your test starts increasing. Different tests have different false positive rates and statistics are one of the nice things about being able to look at these problems head-on so you can make better decisions.
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