Does anybody know, why the correlation mesure increases as the volatility increases (from a statisical perspective) ?
Look at the formula for covariance i.e. cov x,y = (Xi-Xavg)*(Yi-Yavg).
Thanks. Too obvious for me…
Does anybody know, why the correlation mesure increases as the volatility increases (from a statisical perspective) ?
Look at the formula for covariance i.e. cov x,y = (Xi-Xavg)*(Yi-Yavg).
Thanks. Too obvious for me…