Nice post. Definitely an issue that needs constant repeating, despite the best efforts of all first-year statistics and/or finance professors worldwide.
Two issues:
1) There is a very nice light paper by Daniel Polakow on not trusting one's eyes from IASSA - link below. Written from a practitioner's perspective.
2) To answer Peter, and perhaps to save you some work on the correlation front, Francois-Serge Lhabitant already has a (again) light paper available from SSRN on common misinterpretations of correlation, trend and variance.
Hi Jason
Nice post. Definitely an issue that needs constant repeating, despite the best efforts of all first-year statistics and/or finance professors worldwide.
Two issues:
1) There is a very nice light paper by Daniel Polakow on not trusting one's eyes from IASSA - link below. Written from a practitioner's perspective.
2) To answer Peter, and perhaps to save you some work on the correlation front, Francois-Serge Lhabitant already has a (again) light paper available from SSRN on common misinterpretations of correlation, trend and variance.
(1) http://www.iassa.co.za/wp-content/uploads/journals/072/IAJ72-5-Polakow-…
(2) https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1808267