New answers tagged statistical-finance
1
vote
Correlation with Differ Units of Measurement
When calculationg the Pearson correlation coefficient, it does not matter. It is defined as
$$
\rho\equiv \frac{cov(x,y)}{\sigma_x\sigma_y}=\frac{\mathrm{E}\left((x-\mu_x)(y-\mu_y)\right)}{\sigma_x\...
- 5,763
1
vote
Correlation with Differ Units of Measurement
When calculating a correlation it is generally advised to standardize, yes. I don't see why this case would be an exception although failing to standardize wouldn't probably be the biggest issue here. ...
- 170
Top 50 recent answers are included