When we calculating the covariance and correlation coefficient between two securities, what is the best period to

Fantastic news! We've Found the answer you've been seeking!

Question:

When we calculating the covariance and correlation coefficient between two securities, what is the best period to calculate these things (i.e. 3 months, 12 months, 5 years or 9 years) and why?

Posted Date: May 18, 2024 10:01 AM

See More Questions

The team's velocity has been 20 story points/sprint. They have 200 points remaining in the backlog for this release. The sprint length is two weeks. How many more weeks will it take to complete the...
What is the NPV of a project?
Should incomes in the United States be distributed equally? If not, should there be at least a greater degree of equality than we presently have? What are the advantages and disadvantages of greater...
Your company continues to have the stinky job of processing halibut livers detailed in Problem 14.E1. Halibut arrive in batches on the fishing boats, so you decide to evaluate a continuous solvent...
Mass Transit System. The City of Dixon operates a mass transit system (DTS) consisting of a network of bus and trolley routes. The following information is provided about the operations and financing...
Explain why tensile testing is an important current practice, although most of the mechanical properties of standard materials are available in literature and databases. Define the material's...
Can you explain the concepts of thread synchronization and concurrency control in the context of multi-threaded programming, and discuss the various synchronization primitives and techniques employed...
Inventory Write-off Due to the shortage of staff, the PP accountant admitted that there was no time to figure out the value of obsolete inventory. She simply applied prior year's percentages to the...
Part 1: Self-Assessment Activities. Please list aspects of your unique personal brand, these will be inputs that you will use to create personal brand: To help you think about this, think in terms of...
Amidst the growing emphasis on employee well-being and holistic development, how do advanced organizations integrate mindfulness practices and emotional intelligence training into their work...
A copper signal trace is 60 mm in length and is routed in a ceramic electronic microprocessor package. The trace is completely embedded in the ceramic substrate as shown in the cross-sectional view...
How will the Dodd-Frank Act affect value of structured instruments to both originator and issuer? Would it affect their usefulness as a source of financing and diversification/transfer of credit...
Try to make a comparison between new Online Payment Platform in Palestine: pay pal Jawwal Pay Meps you should compare services to individuals, business, banks, platform Component, advantages,...
Do animals have rights? If so, what are they? What duties do human beings have toward animals? Does KFC protect animal welfare at an acceptable level?
Assume that a company has in its inventory units of a particular product that were purchased at several different perunit costs. When some of these units are sold, explain how the cost of goods sold...
Apex Corporation operates in two locations: New York and Oregon. The LIFO method is used in accounting for inventories at the New York facility and the specific identification method is used for...
Assume that during the first year of Hatton Corporation's operation there were numerous purchases of identical items of merchandise. However, there was no change during the year in the prices paid...

When we calculating the covariance and correlation coefficient between two securities, what is the best period to

Question:

Expert Answer:

Students also viewed these finance questions