How To Bet: Correlation, Mean Regression, Expected Returns, And Position Sizing Nov. 09, 2019 7:02 AM ET 16 Comments 14 Likes Yuval Taylor Investing Group Leader ...

Simple linear regression is commonly used in forecasting and financial analysis—for a company to tell how a change in the GDP could affect sales, for example. Microsoft Excel and other software ...

Is there a similar "physical" interpretation of ρ, Pearson's product-moment correlation coefficient for pairs of random variables? We answer this question affirmatively by showing that ρ is equal to ...

Regression to the mean explains that in many cases data will tend to even out—i.e., if a variable is extreme on the first observation, it will tend to be closer to the mean on the next observation.