scholarly journals The Pearson Correlation Model – Work of the Devil?

2022 ◽  
Author(s):  
Nguyễn Thanh Thanh Huyền

While by far the most applied correlation model in finance, the Pearson correlation model is – due to its simplicity and linearity – also the most heavily criticised: “Anything that relies on correlation is charlatanism” (Nassim Taleb) and “Instruments whose pricing requires the input of correlation … are accidents waiting to happen” (Paul Wilmott). In this chapter we address this contradiction and evaluate whether the Pearson correlation approach is rigorous and suitable for modelling associations in finance.

JAMA ◽  
1966 ◽  
Vol 195 (8) ◽  
pp. 645-648
Author(s):  
F. J. Spencer
Keyword(s):  

2020 ◽  
Vol 29 (3) ◽  
pp. 429-435
Author(s):  
Patricia C. Mancini ◽  
Richard S. Tyler ◽  
Hyung Jin Jun ◽  
Tang-Chuan Wang ◽  
Helena Ji ◽  
...  

Purpose The minimum masking level (MML) is the minimum intensity of a stimulus required to just totally mask the tinnitus. Treatments aimed at reducing the tinnitus itself should attempt to measure the magnitude of the tinnitus. The objective of this study was to evaluate the reliability of the MML. Method Sample consisted of 59 tinnitus patients who reported stable tinnitus. We obtained MML measures on two visits, separated by about 2–3 weeks. We used two noise types: speech-shaped noise and high-frequency emphasis noise. We also investigated the relationship between the MML and tinnitus loudness estimates and the Tinnitus Handicap Questionnaire (THQ). Results There were differences across the different noise types. The within-session standard deviation averaged across subjects varied between 1.3 and 1.8 dB. Across the two sessions, the Pearson correlation coefficients, range was r = .84. There was a weak relationship between the dB SL MML and loudness, and between the MML and the THQ. A moderate correlation ( r = .44) was found between the THQ and loudness estimates. Conclusions We conclude that the dB SL MML can be a reliable estimate of tinnitus magnitude, with expected standard deviations in trained subjects of about 1.5 dB. It appears that the dB SL MML and loudness estimates are not closely related.


1997 ◽  
Vol 42 (12) ◽  
pp. 1088-1088
Author(s):  
Louis G. Tassinary
Keyword(s):  

2012 ◽  
Author(s):  
Peter Ayton ◽  
Eugenio Alberdi ◽  
Lorenzo Strigini ◽  
David Wright
Keyword(s):  

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