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The (Uncertain) Payoff from Alternative Investments: Many a slip between the cup and the lip?

Musings on Markets

That argument has both a statistical basis, with the covariance between the two investments operating as the mechanism for the risk reduction, and an economic basis that the idiosyncratic movements in each investment can offset to create a less risky combination.

Alpha 75
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A Return to Teaching: The Spring 2023 Edition

Musings on Markets

In this class, I start by looking at data collection and data descriptives , before moving on to distributions and data relationships (correlations, covariances and regressions) and closing with probabilities and probabilistic tools.