Correlation and Causality
Octavian Graf Pilati
The Antifragile Family?: Build a muscle to thrive for generations.
Data and information are powerful. Connecting Data is a game changer. We try to find correlating data. Often, correlation is mistaken for causality. Correlation is the dependence of two data points. Causality looks for cause and effect. They are not the same.
Precisely, and if we find correlation the question is if they are stable. From fin cial markets we know they are not stationary, i.e, they change over time. Very correlate should be taken with a pinch of salt ??