Equity Correlation Trading Silverio Foresi and Adrien Vesval Goldman Sachs NYU‚ April 2006 Outline • • • Equity Correlation: Definitions‚ Products and Trade Structures Rationale: Evidence and Models Opportunities: an Historical Perspective Correlation Products Building Blocks: Vol Products • Realized variance: RV • 1 = n ∑ T t =1 St (ln( )) S t −1 2 OTC products to trade realized variance: – Delta-hedged options (straddles) – Volatility swap – Variance swap
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Causation and Correlation Mary Lee Choate PSY/285 Due April 6‚ 2012 Instructor- Chantell Hines When differentiating between causation and correlation‚ it is extremely significant in systematic thought. These two notions get confused with one another whether it is a misinterpretation or having the aspiration to provide a reasonable description for scientific observations. As a result‚ it is crucial to have the understanding of the difference between the two concepts. In this writing I will
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1 CORRELATION & REGRESSION 1.0 Introduction Correlation and regression are concerned with measuring the linear relationship between two variables. 1.1 Scattergram It is not a graph at all‚ it looks at first glance like a series of dots placed haphazardly on a sheet of graph paper. The purpose of scattergram is to illustrate diagrammatically any relationship between two variables. (a) If the variables are related‚ what kind of relationship it is‚ linear or nonlinear
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Resource dependence theory (RDT) is the study of how the external resources of organizations affect the behavior of the organization. The procurement of external resources is an important tenet of both the strategic and tactical management of any company. Nevertheless‚ a theory of the consequences of this importance was not formalized until the 1970s‚ with the publication of The External Control of Organizations: A Resource Dependence Perspective (Pfeffer and Salancik 1978). Resource dependence theory
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adolescents who fulfilled diagnostic criteria for caffeine dependence. These studies‚ which represent a series of case reports‚ demonstrate that a clinically meaningful caffeine dependence syndrome does exist. When individuals in the general population are surveyed about their caffeine use‚ a surprisingly large proportion endorse substance dependence criteria. In a random digit-dial telephone survey in which all seven DSM-IV criteria for substance dependence were assessed‚ 30% of caffeine users fulfilled diagnostic
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Resource Dependence Theory (RDT) in reality: The main objective of Resource Dependence Theory is to reduce the dependence on other organizations and having vital resources to reduce the control of other organizations on them. However‚ in reality Resource Dependence Theory is not fully accomplished in organizations due to the insufficiency of resources and some other obstacles. We tried to relate Resource Dependence Theory with IKEA‚ world’s largest furniture retailer. IKEA IKEA Resource Dependence
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Causation and Correlation Jennifer PSY/285 Darren Iwamoto July 17‚ 2013 Causation and Correlation Correlation does not imply causation. According to “statistical Language Correlation and Causation” (Correlation is a statistical measure (expressed as a number) that describes the size and direction of a relationship between two or more variables. A correlation between variables‚ however‚ does not automatically mean that the change in one variable is the cause of the change in the values of
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An alcoholic is a man or a woman who suffers from alcoholism - they have a distinct physical desire to consume alcohol beyond their capacity to control it‚ regardless of all rules of common sense. According to Alcoholics Anonymous UK‚ who say they have no unique definition for alcoholism‚ it may be described as a physical compulsion‚ together with a mental obsession. Apart from having an enormous craving for alcohol‚ an alcoholic often yields to that craving at the worst possible times. The alcoholic
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Handout Master 1.4 Understanding Correlations Correlational studies show relationships between variables. If high scores on one variable predict high scores on the other variable‚ the correlation is positive. If high scores on one variable predict low scores on the other variable‚ the correlation is negative. Showing that two variables are related does not justify claiming that a causal relationship exists. There may be a causal relationship‚ but other explanations usually exist. For example
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Power‚ as a function of dependence "Power refers to a capacity that A has to influence the behavior of B so that B acts in accordance with A’s wishes." The potential of power does not need to be fully exploited in order to exert its pressuring effects. Moreover‚ power is most effective when there is a dependency relationship between B and A. The more B is dependent on A‚ the more power A has on B. In other words‚ "power is a function of dependence." On the other hand‚ dependency is in function
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