• Describes two series that lack any relationship or interaction and therefore have a correlation coefficient close to zero.
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| ||Cluster analysis: A statistical technique that identifies clusters of stocks whose returns are highly correlated within each cluster and relatively Uncorrelated between clusters. Cluster analysis has identified groupings such as growth, cyclical, stable and energy stocks.|
| ||Idiosyncratic risk: Unsystematic risk or risk that is Uncorrelated to the overall market risk. In other words, the risk that is firm specific and can be diversified through holding a portfolio of stocks.|
Multi-Tasking In Your 30s, 40s or 50s: Managing for today and saving for tomorrow, including a child's college expenses and your retirement More...
Imagination is more important than knowledge, for knowledge is limited while imagination embraces the entire world. - Albert Einstein