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RE: Cross-Asset Correlation Analysis

in SteemitCryptoAcademy5 months ago (edited)

You have explained each section clearly and made it easily understandable.

In simple words, a cross-correlation is a unit of measurement used in statistics. Through this, we can measure the similarity or dissimilarity between two variables relatively.

I appreciate the straightforward explanation, making the concept of cross-correlation accessible to those with limited knowledge like me. This simplicity in defining statistical terms contributes to a better understanding for individuals unfamiliar with cryptocurrencies.

By analyzing historical data, market volatility, and economic indicators, we, the investors, can gain information about the potential risks associated with our investments.

The emphasis on using historical data and economic indicators for risk analysis is valuable. The mention of fundamental analysis adds depth, providing us with a comprehensive approach to assessing potential risks and making strategic investment choices.

Cross-asset correlation estimates the market and portfolio size under various growth scenarios. Under these scenarios, the size of the portfolio is expressed in monetary values at the scale of both units and the economy as a whole.

I would say your discussion on estimating market and portfolio size under different growth scenarios adds a broader perspective to cross-asset correlation. The connection to complex financial models and business planning showcases the significance of this concept in the overall financial landscape.

Thanks

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Thanks for further clarifying my points. I appreciate your support!

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