Correlation coefficient and DFA: Difference between pages

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The correlation coefficient is a relative measure of the correlation between two variables. It measures the degree to which their values are interdependent. In other words, the extent to which changes in the value of one of the variables are associated with changes in the value of the other variable.  
'''D'''odd-'''F'''rank '''A'''ct.


Correlation coefficients are widely used in portfolio diversification and hedging calculations.
In full, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.


Mathematically, correlation coefficient is the covariance divided by the product of the standard deviations.


A correlation coefficient of -1 means perfect negative correlation. The two variables always move in opposite directions by a perfectly predictable proportionate amount.
== See also ==
* [[Dodd-Frank]]


A correlation coefficient of 0 means that there is no correlation between the values of the two variables. The variables are statistically independent.


A correlation coefficient of +1 means perfect positive correlation. The two variables always move in the same direction by a perfectly predictable proportionate amount.
==Other links==
[http://www.treasurers.org/node/6163 Know your onions – US financial reform, Martin O'Donovan, ACT 2010]


Also known as the Coefficient of correlation.
[http://www.treasurers.org/node/6209 The Dodd-Frank Act, Will Spinney, ACT 2010]


== See also ==
[http://uk.practicallaw.com/3-502-8950 Summary of the Dodd-Frank Act: Swaps and Derivatives, Practical Law]
* [[Co-efficient]]
 
* [[Correlation]]
[[Category:Compliance_and_audit]]
* [[Covariance]]
* [[Delta-normal method]]
* [[Mean reversion]]
* [[Random walk]]
* [[Rho]]
* [[Standard deviation]]

Revision as of 11:58, 10 January 2014

Dodd-Frank Act.

In full, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.


See also


Other links

Know your onions – US financial reform, Martin O'Donovan, ACT 2010

The Dodd-Frank Act, Will Spinney, ACT 2010

Summary of the Dodd-Frank Act: Swaps and Derivatives, Practical Law

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