Correlation

Part III: Crypto Correlations — This article series aims to answer the question of whether crypto moves independently from traditional assets in such a way that it can be considered its own asset class. If that is the case, investors can use crypto to diversify their multi-asset portfolios and limit their exposure to extreme market…

Part II: The Problem — In Part I of this article series, I discussed the relevance of defining a crypto asset class and why the correlation of price dynamics plays a relevant part in this context. This article will dive into the complexities of correlation. …

Part I: A Crypto Asset Class — Over the past few years, a multitude of perspectives have incentivized investors to expose their portfolios to the cryptocurrency domain. Probably the most straightforward argument considers the underlying blockchain technology as one of the most revolutionary developments in modern financial history. It essentially portrays cryptocurrencies as technology assets which are…

Calculating the strength of the relationship between variables of a dataset is of great importance in the field of data science and analytics. In this regard, the tools which we will study are covariance and correlation. Covariance can only measure the directional relationship between variables if the covariance value is…

A friend recently asked for some help with a dataset he was given. The dataset included millions of rows and thousands of columns. The problem, he said, was that there were numerous instances of columns that were “duplicated”. Well, I said, that word could mean a bunch of different things…

Let’s say you are tasked with understanding the relationship between a dependent variable and multiple potential predictors via linear regression, but you have little understanding of the subject at hand or are not sure where to begin. …

What is a scatter plot? Scatterplots can be useful for showing the relationship between two things, because they allow you to encode data simultaneously on a horizontal x‐axis and vertical y‐axis to see whether and what relationship exists. When to use a scatter plot? When we want to determine whether or not two variables have a relationship or correlation. When…

Why Statistics Statistics presents information in an easy way. Gives you an understanding of the data you are working on. In this blog, we will work on a dataset to understand a few concepts of Statistics. The dataset is a list of Genders, Heights, and Weights. Import the required Libraries …