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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: Moominoid who wrote (71201)6/20/2005 5:13:46 PM
From: William H Huebl  Read Replies (1) | Respond to of 94695
 
The way I think about it is beta is really a multiplier relating how much, on average, something moves compared to something else... in this case an index like the DOW-30 industrials. Correlation is how well each move of one actually matches the move of the other.

A 0 correlation means it is doing it's own thing!



To: Moominoid who wrote (71201)6/22/2005 3:10:31 PM
From: Bernard Guerrero  Respond to of 94695
 
Yes. Precisely.