A topic for traders. - page 138
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So my question is, what is in two lines that is not in one line?
There are different calculations that take into account the price factor
So my question is, what is in two lines that is not in one line?
Correlation is useless. It's like saying that a shovel is like a rake, but neither a shovel nor a rake can work in tandem. It is the same with financial instruments: they can never go together, they won't work in tandem. They simply resemble each other (for example, 80% of them are similar), but 20% of them are different. Thus, if EURUSD and GBPUSD are correlated by 0.8, they may diverge by 20%, i.e. 1.3000*0.2=0.2600, i.e. EURUSD and GBPUSD may diverge by 2600 pips at 0.8 correlation.
What does it mean to do correlation? - what kind of activity is it?
Correlation is simply a number that expresses the degree of joint variation of two variables.
It says nothing at all about the future of those variables.
Neither do other concepts from mathematical statistics talk about some property, such as cointegration as a property of the local stationarity of a linear combination of two or more variables.
The fact that curves can diverge is already common knowledge, it's not news for ages. 😏
How can one variable describe two?) There is no second line))) even if they are parallel, the distance may be different. Thickness is no longer a line)
If anything, there are 3 lines, you just don't see them because you haven't worked with it :)
No, you want to lose money, go ahead. Lose it! Vitaly has already lost. Now he is trying to sell his indicators!
Can I clarify, what does money have to do with it?
You said that the correlation doesn't work, that's all I wanted to clarify 🙂 Maybe your computer is weak and the Pearson coefficient doesn't work.
Maybe your computer is weak and your Pearson coefficient doesn't work?
What does it mean to do correlation? - what kind of activity is it?
Correlation is simply a number that expresses the degree of joint variation of two variables.
It says nothing at all about the future of those variables.
Neither do other concepts from mathematical statistics talk about some property, such as cointegration as a property of the local stationarity of a linear combination of two or more variables.
The fact that curves can diverge is already common knowledge, it's not news for ages. 😏
Can I clarify, what does money have to do with it?
You said correlation doesn't work, that's all I wanted to clarify. 🙂 Maybe your computer is weak and your Pearson's coefficient doesn't work.
Maybe your computer is weak and your Pearson coefficient doesn't work?
:)
Okay, we understand that there is no one to talk to on this issue, unfortunately.
What does it mean to do correlation? - what kind of activity is it?
Correlation is simply a number that expresses the degree of joint variation of two variables.
It says nothing at all about the future of those variables.
Neither do other concepts from mathematical statistics talk about some property, such as cointegration as a property of the local stationarity of a linear combination of two or more variables.
The fact that curves can diverge is already common knowledge, it's not news for ages. 😏
There are different calculations that take into account the price factor
Hmm, you can't see that from the picture...
I assume it's about pre-selection of assets...
Because the "run-up and convergence" trading set-up itself always clearly corresponds to the "deviation and return" events on the overall chart.
That's why I wrote that two lines are not needed.
How can one variable describe two?) There is no second line))) even if they are parallel, the distance may be different. Thickness is no longer a line)
Is it still a question of describing two? 😊
Clearly from a purely visual-intuitive point of view it is clear that two lines give more information than one.
But I suggest to think, does this information really have a prognostic value?