Almost every day you can find in media commentary that XYZ is causing stocks to fall (or rise). Such definitive statements are common—but what’s almost always missing is statistical proof. And if you ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Thomas J Catalano is a CFP and Registered Investment Adviser with the state of ...

Elvis Picardo is a regular contributor to Investopedia and has 25+ years of experience as a portfolio manager with diverse capital markets experience. Yarilet Perez is an experienced multimedia ...

This article deals with the use and misuse of the correlation coefficient when the dependent variable is of a dichotomous 0,1 nature. It focuses particularly on problems relating to curvilinearity and ...

Investments with low correlations to the S&P 500 can provide diversification benefits. These investments often represent different asset classes as opposed to individual stocks. A basket of low ...