Joint Probability

Filed Under »
Dictionary Says

Definition of 'Joint Probability'

A statistical measure where the likelihood of two events occurring together and at the same point in time are calculated. Joint probability is the probability of event Y occurring at the same time event X occurs.

Notation for joint probability takes the form:

Joint Probability
Investopedia Says

Investopedia explains 'Joint Probability'

Joint probability is a measure of two events happening at the same time, and can only be applied to situations where more than one observation can be occurred at the same time.

For example, a joint probability can not be calculated when tossing a coin on the same flip. However, the joint probability can be calculated on the probability of rolling a 2 and a 5 using two different dice.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Statistics

    A type of ...
  2. Non-Sampling Error

    A statistical ...
  3. Sampling Error

    A statistical ...
  4. Probability Distribution

    A statistical ...
  5. Conditional Probability

    Probability of ...
  6. Volatility

    1. A statistical ...
  7. Risk

    The chance that ...
  8. Interest Coverage Ratio

    A ratio used to ...
  9. Geometric Mean

    The average of a ...
  10. Mean

    The simple ...

Articles Of Interest

  1. Find The Right Fit With Probability Distributions

    Discover a few of the most popular probability distributions and how to calculate them.
  2. Bet Smarter With The Monte Carlo Simulation

    This technique can reduce uncertainty in estimating future outcomes.
  3. An Introduction To Value at Risk (VAR)

    Volatility is not the only way to measure risk. Learn about the "new science of risk management".
  4. How To Convert Value At Risk To Different Time Periods

    Volatility is not the only way to measure risk. Learn about the "new science of risk management".
  5. Mitigating Downside With The Sortino Ratio

    Differentiate between good and bad volatility with the Sortino Ratio.
  6. Quantitative Analysis Of Hedge Funds

    Hedge fund analysis requires more than just the metrics used to analyze mutual funds.
  7. How To Survive The Trading Game

    Gain insight into how a trader/programmer approaches the task of designing a trading system.
  8. The Basics Of Business Forecasting

    Discover the methods behind financial forecasts and the risks inherent when we seek to predict the future.
  9. How To Lie With Financial Statistics

    Can you really trust what the financial services industry puts out? We tell about some tricks that hide the truth.
  10. Calculating Covariance For Stocks

    Learn how to figure out how two stocks might move together in the future by calculating covariance.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center