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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?


To: Reginald Middleton who wrote (12643)11/27/1998 4:38:00 PM
From: Charles Tutt  Respond to of 74651
 
FWIW, whenever I've seen someone claim a correlation as high as 96% the underlying analysis has usually been either obvious or bogus. Good correlations with decent sized samples of interesting real-world data tend to be more like .2 or .3, or even less.

But I haven't studied your claims, so I have no idea how you've achieved a 96% correlation.

And, of course, this is all JMHO.



To: Reginald Middleton who wrote (12643)11/27/1998 7:13:00 PM
From: DavidD  Read Replies (2) | Respond to of 74651
 
Please, link me directly to the 96% correlation.

Also, I always said the risk for MSFT losing equity was small, but REAL as well. I am not able to quantify the risk adjusted return for this unlikely event because I can't make a reasonable assumption of the likelihood the stock nose dives. Never by a bio-tech stock just before a FDA review - one can't reasonably quantify the response of the all important panel.

It would be like trying to quantify the results of a "bad ruling" in an anti-trust case when you don't know it is going to happen yet, how severe it will be, or what form it will take.