Covariance and correlation

reasonable diversification among the 20 stocks that remain in his portfolio. This entails maintaining a low correlation among the remaining stocks. For example, in part (a), with ρ = 0.2, the increase in portfolio risk was minimal. As a practical matter, this means that Hennessy would have to spread his portfolio among many industries; concentrating on just a few industries would result in higher correlations among the included stocks. 2. Risk reduction benefits from diversification are not a…

In this chapter, complex traits, or otherwise known as quantitative traits, were examined. Quantitative traits are determined numerically, as well as by different genes that are influenced by the surrounding environment. A few examples of these types of traits include, but not limited to, height, the rate of our ability to metabolize food, and the speed of a cheetah when chasing its prey. To begin, quantitative traits can be anatomical, physiological, and behavioral traits, as well as diseases.…

Data analysis offers an insight into what students know, should know, and what can be done to meet their academic needs. Students deserve an education that will provide opportunities for them to learn and grow. However each student has a unique background, strengths and weaknesses that play a significant role in educating them. When educators and parents can appropriately analyze and interpret data, they can make informed decisions that will significantly affect student-learning experiences.…

This indicates that momentum and traded liquidity are not the omitted variables and not related to risk factors of mutual funds. Fama-French model cannot be improved though five-factor model. Compared this three models, Fama-French model has highest adjusted R-square and lowest probability of F-statistic. Therefore, the most suitable model to capture the performance of mutual funds is Fama-French model. However, Fama-French model is not so good. Firstly, the β of ExRm and HML is insignificant,…

used. Correlation was done between area averaged TWS of each region and sea surface temperature indices of major global oceans (Pacific Ocean: from different Niño regions such as Niño 1.2, Niño 3, Niño 3.4 and Niño 4; and Indian Ocean SST, DMI). The Pearson product moment sample coefficient of correlation was used, which is defined as: ………………………………………….……...….…3.17 Where is correlation coefficient formally called Pearson product moment sample coefficient of correlation, Covariance…

It is estimated by the CDC that every 43 seconds, someone in the United States has a heart attack. There are various factors that result to this condition, transportation being one of them. A change and detailed analysis of how changes in the transportation may result in better health should be researched and implemented to nether this disease condition at least to some extent. Mortality: Premature Death: It is the measure of the years of life lost before the age of 75. This measure basically…

Introduction. Serial correlation can be defined as a relationship between elements within a time series. It can affect the variance of our estimators, and cause us to incorrectly estimate our true mean, Y ̅. To properly study and analyze a covariance stationary time series, we need to know something about the correlation/covariance structure. Several methods exist for dealing with serial correlation. Here, we will deal exclusively with batch means, replication/deletion, and the Mean Squared…

indicates wheter the model fits the data or indicates the different between the estimated population covariance and the sample covariance. The smaller value of Chi-square means the value are more better. As seen from the table above the Chi-quare value is 0.000 which means the value is significant. The value also means that the difference of estimated population covariance and the sample covariance is very low, or can be concluded as equal. The next step is measuring the value of CMIN/DF, which…

the studied period showed positive genetic and phenotypic correlations, which decreased with increase in age gap. The results from this study shows that body weight in Large White pigs is moderately heritable, especially prior to weaning, suggesting the potential for genetic gain from selection. The genetic correlations suggests that considerable genetic gain can be obtained by considering pre-weaning weight only, though the genetic correlation less than unity indicates that more genetic gain…

research purposes and each time the scale is changed, internal consistency should be retested. This is the practice that the present study will follow. 4 Factorial validity is defined as being the degree to which covariance among the monitored traits resemble the actual true covariance of observable behaviours underlying the traits (Renaud & Murray, 2006). This means to test factorial validity an extension to the study would be conducted in which the participant’s experience the…