| Correlation is a useful measure – it helps us make predictions about a variety of events. But it’s also a bit tricky – while there are relationships that seem stable (such as the fact that rich people tend to spend more on luxury goods than the less wealthy), there are some that do experience some volatility.
These require special caution, as relying blindly on what was seen in the past without checking whether it is still true can lead to disaster...............................................Full Article: Source |