Acquire an understanding of the concepts surrounding 'collinearity'. Appreciate the indications and symptoms of collinearity in multivariable regression. Become aware of the available diagnostic tools ...

Correlation coefficients are indicators of the strength of the linear relationship between two different variables, x and y. A linear correlation coefficient that is greater than zero indicates a ...

If you have experience with R or want a quick way to generate a regression with statsmodels using a pandas DataFrame, you can ...

Journal of the Royal Statistical Society. Series C (Applied Statistics), Vol. 48, No. 3 (1999), pp. 313-329 (17 pages) The number of variables in a regression model is often too large and a more ...

In the first case, there is a strong upward-sloping relationship between X and Y; in the second case, no apparent relationship; in the third case, a strong downward-sloping relationship. Note the ...

Leslie Kramer is a writer for Institutional Investor, correspondent for CNBC, journalist for Investopedia, and managing editor for Markets Group. Correlation measures the linear relationship between ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Successful investing requires the ability to distinguish long-term trends from the short-term noise that moves stock prices on a minute-to-minute basis. One way to tune out the random oscillations and ...