Regression to the mean is an important, yet commonly misunderstood, statistical law. Understanding regression to the mean is an essential mental model for successful investing.

Regression analysis is a quantitative tool that is easy to use and can provide valuable information on financial analysis and forecasting.

Offers an alternative to Markowitz’s “Portfolio Selection”. Outlines the nuts and bolts of correlation between past and future performance, or between expected and actual returns. Explains ...

For example, a significant correlation between the independent and dependent variable does not necessarily indicate a cause and effect relationship.

Joint mean-covariance regression modeling with unconstrained parametrization for continuous longitudinal data has provided statisticians and practitioners with a powerful analytical device. How to ...

The paper considers a number of problems arising from the test of serial correlation based on the d statistic proposed earlier by the authors (Durbin & Watson, 1950, 1951). Methods of computing the ...