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The correlation calculation simply takes ... there are only five data points represented by the five dots on the graph. Linear regression attempts to estimate a line that best fits the data ...
Every day I come across investors who think that regression to the mean has nothing to do with correlation, who don't bother to think about odds, and who take wild stabs at position sizing.
Timothy has helped provide CEOs and CFOs with deep-dive analytics, providing beautiful stories behind the numbers, graphs ... way as a correlation coefficient that is used in linear regression ...
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