Covariance & Correlation Explained
📘 Covariance and Correlation 🔹 Covariance Covariance measures how two variables move together. If both variables increase or decrease together, the covariance is…
📘 Covariance and Correlation 🔹 Covariance Covariance measures how two variables move together. If both variables increase or decrease together, the covariance is…
📊 Understanding Skewness & Kurtosis 🎯 What is Skewness? Skewness tells us whether the data leans more towards one side — like a seesaw! Purpose: To understand whethe…
📘 AM, GM, HM, IRR 1. Arithmetic Mean (AM) Used when investing in multiple stocks for 1 year. AM = (x₁ + x₂ + x₃ + ... + xâ‚™) / n If weighted: Weighted AM = (w₁x₁ + w₂x₂ …
📊 Measures of Dispersion Why just Mean is not enough? Knowing only the average (mean) return is not enough. We must also understand how values are spread around that avera…
📚 Measures of Central Tendency 1️⃣ Mean (Average) Definition: Add up all the numbers, then divide by how many numbers you have. Formula: Mean = Sum of all values ÷ N…