Explore Not Independence and Correlation of Random Variables and Methods to Judge Them between Stocks

DOI

10.2991/aebmr.k.220307.451How to use a DOI?

Keywords

Stock; Independence; Correlation; Correlation Coefficient; STATA

Abstract

In recent years, whether there is independence and correlation between stocks and how to use research results to minimize risks and maximize investment returns in the stock market have attracted the attention of many economists, mathematicians, and the public. It is worthy of discussion about how to correctly study the correlation and independence between stocks to form an optimized investment thinking and investment mode. This work mainly combs the meaning of independence and correlation and uses various proof methods to distinguish some interdependent relations of independence and correlation in some cases. This work uses mathematical proof and statistical software to verify whether there is independence and correlation between stocks. This paper uses mathematical proof to verify the independence of stocks, uses STATA to estimate the statistical conclusion between stocks, shows that the positive or negative correlation between stocks is significant, and studies its economic significance.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Han Han
AU  - Zhehan Wang
AU  - Qixun Dong
AU  - Zugen Liu
PY  - 2022
DA  - 2022/03/26
TI  - Explore Not Independence and Correlation of Random Variables and Methods to Judge Them between Stocks
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 2768
EP  - 2775
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.451
DO  - 10.2991/aebmr.k.220307.451
ID  - Han2022
ER  -