February 17, 2021

Linear Regression

By doing a regression try to explain a (dependent) variable by means of a linear function through another (independent) variable. These two variables have a correlation (that is more or less than 0) Below you see a scatter plot that indicates a correlation between variables X and Y. X could be the returns of the Sample EM Index and Y […]

Portfolioflows Data Science 0 53 sec read
February 17, 2021

Correlation

You have a set of data points. Make sure it’s normally distributed -> (eg. Take log returns). Then you measure the correlation of the data points. Place the data points on a scatter plot (as you can see below). The scatter plot shows us the distribution of data. EXAMPLE: Let’s say on the x axis is the amount of job […]

Portfolioflows Data Science 0 43 sec read

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