# Correlations



## none (Jan 15, 2013)

http://www.buzzfeed.com/kjh2110/the-10-most-bizarre-correlations?sub=2137503_1058448


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## sags (May 15, 2010)

Correlation vs causation.......??

Of course the "correlations" look ridiculous, when the charts are only going up or going down in more or less a straight line.

When the charts show 2 things that are moving in tandem, both up and down at the same time, I think it bears more credence.

Fed announcements on tapering being a prime example. Going to taper.....stocks go down. Not going to taper.....stocks go up.

I suppose it shouldn't be all that surprising, given the goal of QE is to drive up asset values, and therefore it is a known consequence.


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## fatcat (Nov 11, 2009)

terrific, i have saved that !


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## none (Jan 15, 2013)

sags: I know what you mean.


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## GoldStone (Mar 6, 2011)




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## none (Jan 15, 2013)

^ ha!


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## Synergy (Mar 18, 2013)

Reminds me of the post hoc fallacy - "Post hoc ergo propter hoc"

http://en.wikipedia.org/wiki/Post_hoc_ergo_propter_hoc


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## sags (May 15, 2010)

Interesting concept.

In the illustration given on wikipedia..........if the new tenant had mucked around with the furnace before every time it quit.......is it correlation or causation?


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## none (Jan 15, 2013)

^ see goldstones cartoon - perfect illustration for your question


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## OptsyEagle (Nov 29, 2009)

Keep those charts in mind the next time a company comes out with a new fangled ETF showing fantastic back tested results.

Backtested results are about as useful as those charts none gave us. Even worse then historical results because there are virtually no boundaries, as long as some idiot, somewhere, can explain a relationship ... then money managers will be glad to invest other peoples money with it.


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## peterk (May 16, 2010)

That cartoon pretty much nails it, on both levels.


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## Synergy (Mar 18, 2013)

sags said:


> Interesting concept.
> 
> In the illustration given on wikipedia..........if the new tenant had mucked around with the furnace before every time it quit.......is it correlation or causation?


If there's proof that the tenant "mucked" around with the furnace and it was determined by expert technicians that the mucking around caused the furnace to quit, then one could say that there was a causal relationship that existed. I guess you could look at it as a correlation with a true cause, versus a coincidental correlation or a correlation without causation.


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## Rusty O'Toole (Feb 1, 2012)

sags said:


> Interesting concept.
> 
> In the illustration given on wikipedia..........if the new tenant had mucked around with the furnace before every time it quit.......is it correlation or causation?


If you rent a house with an oil furnace there is a very strong possibility the tenant will run the tank completely dry of oil before ordering more. This means the lines must be bled before the furnace will start again, and there is a chance the burner will get messed up.

So, a tenant will have more furnace trouble than an owner, on average. And will be more inclined to muck around with something they don't understand then try to lay the repair bill off on the landlord when they wreck it completely.


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## Zeeshanbmerchant (Jan 4, 2014)

Obesity and Debt certainly have a linkage, i think studies have shown that poor people are more obese.

Its a correlation, the causation is ofcourse a lack of self control, which can cause people to eat more than they should and spend more than they should


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## HaroldCrump (Jun 10, 2009)

Zeeshanbmerchant said:


> Obesity and Debt certainly have a linkage, i think studies have shown that poor people are more obese.


But debt is not equal to poor, is it?
Someone with little income and no debt can be defined as "poor", and someone with lots of wealth can have lots of debt.


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## Beaver101 (Nov 14, 2011)

Zeeshanbmerchant said:


> Obesity and Debt certainly have a linkage, i think studies have shown that poor people are more obese.
> 
> Its a correlation, the causation is ofcourse a lack of self control, which can cause people to eat more than they should and spend more than they should


 ... examples or is this a generality? or there are no known fat/obese rich people?


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## bgc_fan (Apr 5, 2009)

Zeeshanbmerchant said:


> Obesity and Debt certainly have a linkage, i think studies have shown that poor people are more obese.
> 
> Its a correlation, the causation is ofcourse a lack of self control, which can cause people to eat more than they should and spend more than they should


That's pretty insulting. Most studies would say that the correlation is that most poor families would buy cheap fast food or processed food which contributes to obesity and not lack of self-control. 

Not too mention there are examples of rich and obese people, the Ford family comes to mind.


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## OnlyMyOpinion (Sep 1, 2013)

*"Obesity and Debt"*
Who let this mutt in the room?


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## Synergy (Mar 18, 2013)

http://www.phac-aspc.gc.ca/hp-ps/hl-mvs/oic-oac/determ-eng.php

SES relationship appears to vary by sex.

It's a complex public health issue.


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## Nemo2 (Mar 1, 2012)

Synergy said:


> http://www.phac-aspc.gc.ca/hp-ps/hl-mvs/oic-oac/determ-eng.php
> 
> SES relationship appears to vary by sex.
> 
> It's a complex public health issue.





> An estimated 405,000 cases of male obesity and 646,000 cases of female obesity could potentially be altered or averted if inactive populations became active.


 No ****?


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## Synergy (Mar 18, 2013)

Nemo2 said:


> No ****?


Activity is a big problem, but so is diet and mental health - many of the factors are interrelated.


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## Nemo2 (Mar 1, 2012)

Synergy said:


> Activity is a big problem, but so is diet and mental health - many of the factors are interrelated.


Yes, there's never any shortage of (excuses) 'reasons'.


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## KaeJS (Sep 28, 2010)

GoldStone said:


>


I've never seen this before,

but that is definitely funny. lol:encouragement:


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