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A measure of the degree of linear association between a pair of random variables.

7
votes
Transaction costs - even for banks, funds etc, every trade has an associated cost, so if you would be buying a small number of shares, it's probably cheaper to carry the risk and not make those small …
answered Jun 5 '14 by Phil H
1
vote
Wikipedia gives: $\sigma(x,y) = E[xy] - E[x]E[y]$ and $\sigma(ax+by,cz) = ac\, \sigma(x,z) + bc\, \sigma(y,z)$ (paraphrasing the $\sigma(ax+by,cW+dV)$ rule). So $\sigma(I,A) = \sigma([aA+bB+cC+ …
answered Oct 5 '12 by Phil H