Serial Correlation

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Dictionary Says

Definition of 'Serial Correlation'

The relationship between a given variable and itself over various time intervals. Serial correlations are often found in repeating patterns when the level of a variable effects its future level. In finance, serial correlation is used by technical analysts to determine how well the past price of a security predicts the future price.

The term can also be referred to as "autocorrelation" or "lagged correlation".

Investopedia Says

Investopedia explains 'Serial Correlation'

Because technical analysis is based entirely on a stock’s price movement and the associated volume, rather than the company’s fundamentals, finding and validating profitable patterns is an essential component of the success one will have using such methods.  
Search results for

'Serial Correlation'

  • How The Sharpe Ratio Can Oversimplify Risk

    http://www.investopedia.com/articles/07/SharpeRatio.asp
    ... Serial correlation can also overstate a Sharpe ratio when present in
    month-to-month returns. According to Andrew Lo in "The Statistics ...

  • The Uses And Limits Of Volatility

    http://www.investopedia.com/articles/04/021804.asp
    ... If you believe returns follow trends, you are technically saying they show
    positive serial correlation. If you think they revert ...

  • Middleby Still Simmering

    http://stocks.investopedia.com/stock-analysis/2011/Middleby-Still-Simmering-MIDD-MCD-SYY-ITW-DOV-MTW-SXI-JBT1116.aspx
    ... There are also companies that have made serial acquisitions and built themselves
    into ... in and of itself ; it's a classic case of correlation versus causation. ...

  • CFP Study Guide - Financial Planning: Process and Rules ...

    http://www.investopedia.com/exam-guide/cfp/financial-planning-process-rules/default.asp
    ... 6.11 Internal Rate of Return (IRR), Uneven Cash Flows and Serial Payments. ... 27.4
    Correlation and Volatility Statistics; 27.5 Measures of Investment Return; 27.6 ...

  • CFP Study Guide - Principles of Risk and Insurance - Introduction ...

    http://www.investopedia.com/exam-guide/cfp/principles-of-risk-and-insurance/default.asp
    ... 6.11 Internal Rate of Return (IRR), Uneven Cash Flows and Serial Payments. ... 27.4
    Correlation and Volatility Statistics; 27.5 Measures of Investment Return; 27.6 ...

  • CFP Study Guide - Principles of Risk and Insurance - The Risk ...

    http://www.investopedia.com/exam-guide/cfp/principles-of-risk-and-insurance/cfp2.asp
    ... 6.11 Internal Rate of Return (IRR), Uneven Cash Flows and Serial Payments. ... 27.4
    Correlation and Volatility Statistics; 27.5 Measures of Investment Return; 27.6 ...

  • CFP Study Guide - Property, Casualty and Liability Insurance ...

    http://www.investopedia.com/exam-guide/cfp/property-casualty-liability-insurance/default.asp
    ... 6.11 Internal Rate of Return (IRR), Uneven Cash Flows and Serial Payments. ... 27.4
    Correlation and Volatility Statistics; 27.5 Measures of Investment Return; 27.6 ...

  • CFP Study Guide - Property, Casualty and Liability Insurance ...

    http://www.investopedia.com/exam-guide/cfp/property-casualty-liability-insurance/cfp4.asp
    ... 6.11 Internal Rate of Return (IRR), Uneven Cash Flows and Serial Payments. ... 27.4
    Correlation and Volatility Statistics; 27.5 Measures of Investment Return; 27.6 ...

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