Search

After 30 years of research, the author of The History of Correlation organized his notes into a manuscript draft during the lockdown months of the COVID-19 pandemic. Getting it into shape for publication took another few years. It was a labor of love.Readers will enjoy learning in detail how correlation evolved from a completely non-mathematical concept to one today that is virtually always viewed mathematically. This book reports in detail on 19th- and 20th-century English-language publications; it discusses the good and bad of many dozens of 20th-century articles and statistics textbooks in regard to their presentation and explanation of correlation. The final chapter discusses 21st-century trends.Some topics included here have never been discussed in depth by any historian. For example: Was Francis Galton lying in the first sentence of his first paper about correlation? Why did he choose the word'co-relation'rather than'correlation'for his new coefficient? How accurate is the account of the history of correlation found in H. Walker's 1929 classic, Studies in the History of Statistical Method? Have 20th-century textbooks misled students as to how to use the correlation coefficient?Key features of this book: Charts, tables, and quotations (or summaries of them) are provided from about 450 publications. In-depth analyses of those charts, tables, and quotations are included. Correlation-related claims by a few noted historians are shown to be in error. Many funny findings from 30 years of research are highlighted. This book is an enjoyable read that is both serious and (occasionally) humorous. Not only is it aimed at historians of mathematics, but also professors and students of statistics and anyone who has enjoyed books such as Beckmann's A History of Pi or Stigler's The History of Statistics.

It is unlikely that today there is a specialist in theoretical physics who has not heard anything about the algebraic Bethe ansatz. Over the past few years, this method has been actively used in quantum statistical physics models, condensed matter physics, gauge field theories, and string theory.This book presents the state-of-the-art research in the field of algebraic Bethe ansatz. Along with the results that have already become classic, the book also contains the results obtained in recent years. The reader will get acquainted with the solution of the spectral problem and more complex problems that are solved using this method. Various methods for calculating scalar products and form factors are described in detail. Special attention is paid to applying the algebraic Bethe ansatz to the calculation of the correlation functions of quantum integrable models. The book also elaborates on multiple integral representations for correlation functions and examples of calculating the long-distance asymptotics of correlations.This text is intended for advanced undergraduate and postgraduate students, and specialists interested in the mathematical methods of studying physical systems that allow them to obtain exact results.

Your government warns that 10% of your neighbors have a deadly contagious virus. The producer of a diagnostic test advertises that 90% of its tests are correct for any population. The test indicates that you have the virus. This book's author claims your test has a 50% chance of being false, given your test's result. Who do you believe? This book gives you insights necessary to interpret metrics that make a difference in life's decisions.This book gives methods and software that are essential to analyze change and error. Change describes a phenomenon across time points. Error compares diagnoses with the truth. Other texts give insufficient attention to these topics. This book's novel ideas dispel popular misconceptions and replace previous methods. The author uses carefully designed graphics and high school mathematics to communicate easily with college students and advanced scientists. Applications include but are not limited to Remote Sensing, Land Change Science, and Geographic Information Science.“A wide range of tools to aid understanding of land cover and its change has been used but scientific progress has sometimes been limited through misuse and misunderstanding. Professor Pontius seeks to rectify this situation by providing a book to accompany the researcher's toolbox. Metrics That Make a Difference addresses basic issues of relevance to a broad community in a mathematically friendly way and should greatly enhance the ability to elicit correct information. I wish this book existed while I was a grad student.” – Giles Foody, Professor of Geographical Information Science, The University of Nottingham“Metrics That Make a Difference provides a comprehensive synthesis of over two decades of work during which Dr. Pontius researched, developed, and applied these metrics. The book meticulously and successfully guides the reader through the conceptual basis, computations, and proper interpretation of themany metrics derived for different types of variables. The book is not just a mathematical treatise but includes practical guidance to good data analysis and good science. Data scientists from many fields of endeavor will benefit substantially from Dr. Pontius'articulate review of traditionally used metrics and his presentation of the innovative and novel metrics he has developed. While reading this book, I had multiple ‘aha'moments about metrics that I shouldn't be using and metrics that I should be using instead.” – Stephen Stehman, Distinguished Teaching Professor, State University of New York

Correlation matrices (along with their unstandardized counterparts, covariance matrices) underlie the majority the statistical methods that researchers use today. A correlation matrix is more than a matrix filled with correlation coefficients. The value of one correlation in the matrix puts constraints on the values of the others, and the multivariate implications of this statement is a major theme of the volume. Alexandria Hadd and Joseph Lee Rodgers cover many features of correlations matrices including statistical hypothesis tests, their role in factor analysis and structural equation modeling, and graphical approaches. They illustrate the discussion with a wide range of lively examples including correlations between intelligence measured at different ages through adolescence; correlations between country characteristics such as public health expenditures, health life expectancy, and adult mortality; correlations between well-being and state-level vital statistics; correlations between the racial composition of cities and professional sports teams; and correlations between childbearing intentions and childbearing outcomes over the reproductive life course. This volume may be used effectively across a number of disciplines in both undergraduate and graduate statistics classrooms, and also in the research laboratory.

Die Entwicklung immer leistungsfähigerer absoluter wie auch relativer Gravimeter mit deutlich verbesserter Messgenauigkeit ermöglicht es, dass sich künftig nicht nur prägnante Schwereanomalien (wie z. B. die eines Salzstocks), sondern auch schwächere Signaturen erfassen und modellieren lassen. Mehr noch, die rasante Entwicklung der Computer führt zu neuartigen Methoden der Datendekomposition, wie z. B. Waveletdekorrelation. Dekorrelative Gravimetrie ist somit eine neue Explorationstechnik, die als kanonische Innovation aus der Verbindung neuartiger Mess- und Modellierungstechniken resultiert.Dekorrelative Gravimetrie dient der Reduzierung des Fündigkeitsrisikos von Aquiferen sowie von Gas- und Öllagerstätten, auch durch Vergleich und Zusammenschau alternativer, aber strukturell ähnlich gelagerter, dekorrelativer Verfahren wie etwa Magnetometrie und Seismik. Hier setzt dieses Buch mit einem exemplarischen Überblick über die neuartige Dekorrelationsmethoden der heutigenGeomathematik mit Hauptgewicht für den Fall der Gravimetrie an. Wesentliches mathematisches Hilfsmittel ist die Regularisierung des Newtonschen Volumenintegrals durch taylorisierte Mollifier-Varianten des Newton-Kerns.Ziel des vorliegenden Buches ist somit die Vermittlung des Grundverständnisses, dass Zooming-In Mollifier-Potentialmethoden wie etwa dekorrelative Gravimetrie neue wichtige Anwendungsfelder in der heutigen Geoexploration eröffnen, insbesondere für Gebiete mit bergbaubedingten Hohlräumen oder sehr dichter Bebauung wie etwa das Saarland oder Sachsen, die den Einsatz von reflexionsseismischen Messungen erschweren oder sogar unmöglich machen.Zusammenfassend lässt sich für dieses Buchprojekt festhalten, dass es einen Einblick in den aktuellen Stand gravimetrischer Multiskalenforschung vermittelt. Als wesentliches Resultat ergibt sich, dass die Schlüsseltechnologie Geomathematik in der Tat in der Lage ist, die Gravimetrie auf einfache, für Explorationszwecke zugängliche und somit rechenbare Dekorrelationsmodelle zu reduzieren. Mehr noch, das Buch macht auf diese Weise ein breites Publikum mit den vielfältigen Fragen und Problemen der heutigen Gravimetrie vertraut und setzt Denkanstöße für eine erfolgreiche Weiterentwicklung und eine adäquate praxisrelevante Anwendbarkeit von Potentialmethoden in der Exploration in Gang.

Incidence rates are counts divided by person-time; mortality rates are a well-known example. Analysis of Incidence Rates offers a detailed discussion of the practical aspects of analyzing incidence rates. Important pitfalls and areas of controversy are discussed. The text is aimed at graduate students, researchers, and analysts in the disciplines of epidemiology, biostatistics, social sciences, economics, and psychology.Features: Compares and contrasts incidence rates with risks, odds, and hazards. Shows stratified methods, including standardization, inverse-variance weighting, and Mantel-Haenszel methods Describes Poisson regression methods for adjusted rate ratios and rate differences. Examines linear regression for rate differences with an emphasis on common problems. Gives methods for correcting confidence intervals. Illustrates problems related to collapsibility. Explores extensions of count models for rates, including negative binomial regression, methods for clustered data, and the analysis of longitudinal data. Also, reviews controversies and limitations. Presents matched cohort methods in detail. Gives marginal methods for converting adjusted rate ratios to rate differences, and vice versa. Demonstrates instrumental variable methods. Compares Poisson regression with the Cox proportional hazards model. Also, introduces Royston-Parmar models. All data and analyses are in online Stata files which readers can download. Peter Cummings is Professor Emeritus, Department of Epidemiology, School of Public Health, University of Washington, Seattle WA. His research was primarily in the field of injuries. He used matched cohort methods to estimate how the use of seat belts and presence of airbags were related to death in a traffic crash. He is author or co-author of over 100 peer-reviewed articles.

This monograph presents an intuitive theory of trial wave functions for strongly interacting fermions in fractional quantum Hall states. The correlation functions for the proposed fermion interactions follow a novel algebraic approach that harnesses the classical theory of invariants and semi-invariants of binary forms. This approach can be viewed as a fitting and far-reaching generalization of Laughlin's approach to trial wave functions. Aesthetically viewed, it illustrates an attractive symbiosis between the theory of invariants and the theory of correlations. Early research into numerical diagonalization computations for small numbers of electrons shows strong agreement with the constructed trial wave functions.The monograph offers researchers and students of condensed matter physics an accessible discussion of this interesting area of research.

Large sample techniques are fundamental to all fields of statistics. Mixed effects models, including linear mixed models, generalized linear mixed models, non-linear mixed effects models, and non-parametric mixed effects models are complex models, yet, these models are extensively used in practice. This monograph provides a comprehensive account of asymptotic analysis of mixed effects models. The monograph is suitable for researchers and graduate students who wish to learn about asymptotic tools and research problems in mixed effects models. It may also be used as a reference book for a graduate-level course on mixed effects models, or asymptotic analysis.

`This most commendable volume brings together a set of papers which permits ready access to the means of estimating quantitative relationships using cointegration and error correction procedures. Providing the data to show fully the basis for calculation, this approach is an excellent perception of the needs of senior undergraduates and graduate students.'- Professor W.P. Hogan, The University of Sydney Applied economists, with modest econometric background, are now desperately looking for expository literature on the unit roots and cointegration techniques. This volume of expository essays is written for them. It explains in a simple style various tests for the existence of unit roots and how to estimate cointegration relationships. Original data are given to enable easy replications. Limitations of some existing unit root tests are also discussed.

This bookpresents material on both the analysis of the classical concepts of correlation and on the development of their robust versions, as well as discussing the related concepts of correlation matrices, partial correlation, canonical correlation, rank correlations, with the corresponding robust and non-robust estimation procedures. Every chapter contains a set of examples with simulated and real-life data. Key features: Makes modern and robust correlation methods readily available and understandable to practitioners, specialists, and consultants working in various fields. Focuses on implementation of methodology and application of robust correlation with R. Introduces the main approaches in robust statistics, such as Huber's minimax approach and Hampel's approach based on influence functions. Explores various robust estimates of the correlation coefficient including the minimax variance and bias estimates as well as the most B- and V-robust estimates. Contains applications of robust correlation methods to exploratory data analysis, multivariate statistics, statistics of time series, and to real-life data. Includes an accompanying website featuring computer code and datasets Features exercises and examples throughout the text using both small and large data sets. Theoretical and applied statisticians, specialists in multivariate statistics, robust statistics, robust time series analysis, data analysis and signal processing will benefit from this book. Practitioners who use correlation based methods in their work as well as postgraduate students in statistics will also find this book useful.

This second edition of Business Applications of Multiple Regression describes the use of the statistical procedure called multiple regression in business situations, including forecasting and understanding the relationships between variables. The book assumes a basic understanding of statistics but reviews correlation analysis and simple regression to prepare the reader to understand and use multiple regression. The techniques described in the book are illustrated using both Microsoft Excel and a professional statistical program. Along the way, several real-world data sets are analyzed in detail to better prepare the reader for working with actual data in a business environment. This book will be a useful guide to managers at all levels who need to understand and make decisions based on data analysis performed using multiple regression. It also provides the beginning analyst with the detailed understanding required to use multiple regression to analyze data sets.

This book examines in detail the correlation, more precisely the weighted correlation and applications involving rankings. A general application is the evaluation of methods to predict rankings. Others involve rankings representing human preferences to infer user preferences; the use of weighted correlation with microarray data and those in the domain of time series. In this book we present new weighted correlation coefficients and new methods of weighted principal component analysis.We also introduce new methods of dimension reduction and clustering for time series data and describe some theoretical results on the weighted correlation coefficients in separate sections.

This is the first book in longitudinal categorical data analysis with parametric correlation models developed based on dynamic relationships among repeated categorical responses. This book is a natural generalization of the longitudinal binary data analysis to the multinomial data setup with more than two categories. Thus, unlike the existing books on cross-sectional categorical data analysis using log linear models, this book uses multinomial probability models both in cross-sectional and longitudinal setups. A theoretical foundation is provided for the analysis of univariate multinomial responses, by developing models systematically for the cases with no covariates as well as categorical covariates, both in cross-sectional and longitudinal setups. In the longitudinal setup, both stationary and non-stationary covariates are considered. These models have also been extended to the bivariate multinomial setup along with suitable covariates. For the inferences, the book uses the generalized quasi-likelihood as well as the exact likelihood approaches.The book is technically rigorous, and, it also presents illustrations of the statistical analysis of various real life data involving univariate multinomial responses both in cross-sectional and longitudinal setups. This book is written mainly for the graduate students and researchers in statistics and social sciences, among other applied statistics research areas. However, the rest of the book, specifically the chapters from 1 to 3, may also be used for a senior undergraduate course in statistics.

Mind-blowing statistics and crazy connections—from the number-crunching genius behind a popular blog. Based on findings on Correlated.org, this surprising and very funny book presents bizarre-but-true correlations between seemingly unrelated things.Based on daily polls and statistical analysis, in CORRELATED, Gallagher reveals:• People who prefer Miss Piggy to Kermit the Frog are more than twice as likely than average to have tattoos• People with body piercings are twice as likely as the average person to have deployed a fire extinguisher• People with bumper stickers on their car are more likely than average to have square dancedYou'll never look at poll results or scientific sound bites the same way again!

Klaus Mainzer zeigt in diesem Buch, wie es bei dem Vorhaben, die Welt zu berechnen, zu einer Revolution der Denkart kam. Während Generationen von Mathematikern, Physikern und Philosophen auf der Suche nach der Weltformel mit Gleichungen arbeiteten und in den Kategorien von Ursache und Wirkung dachten, ist die «new science» dadurch charakterisiert, dass an die Stelle mathematischer Beweise und Theorien Computerexperimente und Algorithmen treten. «Korrelation» statt «Begründung», lautet die Devise des neuen Denkens. Die Korrelationen in Big Data sollen bislang verborgene Zusammenhänge aufdecken. Nach diesem Prinzip, schreibt das US-Magazin Time, will die 2013 von Google neu gegründete Medizinfirma Calico an der Lebensverlängerung des Menschen arbeiten, indem nicht die Ursachen von Alter und Krankheit untersucht, sondern Unmengen medizinischer Daten mit Algorithmen ausgewertet werden. Eine beispiellose Erfolgsgeschichte also? Mainzer stellt in diesem Buch die faszinierende neue Art der Wissensgewinnung vor, aber er macht auch die Gegenrechnung auf. Sein Buch ist ein Plädoyer für die Besinnung auf die Grundlagen, Theorien, Gesetze und die Geschichte, die zu der Welt führen, in der wir heute leben.

A thorough guide to correlation risk and its growing importance in global financial markets Ideal for anyone studying for CFA, PRMIA, CAIA, or other certifications, Correlation Risk Modeling and Management is the first rigorous guide to the topic of correlation risk. A relatively overlooked type of risk until it caused major unexpected losses during the financial crisis of 2007 through 2009, correlation risk has become a major focus of the risk management departments in major financial institutions, particularly since Basel III specifically addressed correlation risk with new regulations. This offers a rigorous explanation of the topic, revealing new and updated approaches to modelling and risk managing correlation risk. Offers comprehensive coverage of a topic of increasing importance in the financial world Includes the Basel III correlation framework Features interactive models in Excel/VBA, an accompanying website with further materials, and problems and questions at the end of each chapter

In a certain sense characteristic functions and correlation functions are the same, the common underlying concept is positive definiteness. Many results in probability theory, mathematical statistics and stochastic processes can be derived by using these functions. While there are books on characteristic functions of one variable, books devoting some sections to the multivariate case, and books treating the general case of locally compact groups, interestingly there is no book devoted entirely to the multidimensional case which is extremely important for applications. This book is intended to fill this gap at least partially. It makes the basic concepts and results on multivariate characteristic and correlation functions easily accessible to both students and researchers in a comprehensive manner. The first chapter presents basic results and should be read carefully since it is essential for the understanding of the subsequent chapters. The second chapter is devoted to correlation functions, their applications to stationary processes and some connections to harmonic analysis. In Chapter 3 we deal with several special properties, Chapter 4 is devoted to the extension problem while Chapter 5 contains a few applications. A relatively large appendix comprises topics like infinite products, functional equations, special functions or compact operators.

Multidimensional Similarity Structure Analysis comprises a class of models that represent similarity among entities (for example, variables, items, objects, persons, etc.) in multidimensional space to permit one to grasp more easily the interrelations and patterns present in the data. The book is oriented to both researchers who have little or no previous exposure to data scaling and have no more than a high school background in mathematics and to investigators who would like to extend their analyses in the direction of hypothesis and theory testing or to more intimately understand these analytic procedures. The book is repleted with examples and illustrations of the various techniques drawn largely, but not restrictively, from the social sciences, with a heavy emphasis on the concrete, geometric or spatial aspect of the data representations.

Chapter 1 - Independence (probability theory) Chapter 2 - Conditional Independence and Copula Chapter 3 - Correlation and Dependence Chapter 4 - Distance Correlation and Kendall Tau Rank Correlation Coefficient Chapter 5 - Local Independence, Long-Range Dependency & Normally Distributed and Uncorrelated does not Imply Independent Chapter 6 - Spearman's Rank Correlation Coefficient and Total Correlation Chapter 7 - Autocorrelation Chapter 8 - Covariance Matrix

An important problem in personnel psychology, namely, the psychometric problem known as'validity generalization'is addressed in this volume. From a statistical point of view, the problem is how to make statements about a population correlation coefficient based on inferences from a collection of sample correlation coefficients. The first part of the book examines the largely ad hoc procedures which have been used to determine validity generalization. The second part develops a new model formulated from the perspective of finite mixture theory and, in addition, illustrates its use in several applications.

Agreement assessment techniques are widely used in examining the acceptability of a new or generic process, methodology and/or formulation in areas of lab performance, instrument/assay validation or method comparisons, statistical process control, goodness-of-fit, and individual bioequivalence. Successful applications in these situations require a sound understanding of both the underlying theory and methodological advances in handling real-life problems. This book seeks to effectively blend theory and applications while presenting readers with many practical examples. For instance, in the medical device environment, it is important to know if the newly established lab can reproduce the instrument/assay results from the established but outdating lab. When there is a disagreement, it is important to differentiate the sources of disagreement. In addition to agreement coefficients, accuracy and precision coefficients are introduced and utilized to characterize these sources. This book will appeal to a broad range of statisticians, researchers, practitioners and students, in areas of biomedical devices, psychology, medical research, and others, in which agreement assessment are needed. Many practical illustrative examples will be presented throughout the book in a wide variety of situations for continuous and categorical data.

This book provides a theoretical foundation for the analysis of discrete data such as count and binary data in the longitudinal setup. Unlike the existing books, this book uses a class of auto-correlation structures to model the longitudinal correlations for the repeated discrete data that accommodates all possible Gaussian type auto-correlation models as special cases including the equi-correlation models. This new dynamic modelling approach is utilized to develop theoretically sound inference techniques such as the generalized quasi-likelihood (GQL) technique for consistent and efficient estimation of the underlying regression effects involved in the model, whereas the existing ‘working'correlations based GEE (generalizedestimating equations) approach has serious theoretical limitations both for consistent and efficient estimation, and the existing random effects based correlations approach is not suitable to model the longitudinal correlations. The book has exploited the random effects carefully only to model the correlations of the familial data. Subsequently, this book has modelled the correlations of the longitudinal data collected from the members of a large number of independent families by using the class of auto-correlation structures conditional on the random effects. The book also provides models and inferences for discrete longitudinal data in the adaptive clinical trial set up.The book is mathematically rigorous and provides details for the development of estimation approaches under selected familial and longitudinal models. Further, while the book provides special cares for mathematics behind the correlation models, it also presents theillustrations of the statistical analysis of various real life data. This book will be of interest to the researchers including graduate students in biostatistics and econometrics, among other applied statistics research areas. Brajendra Sutradhar is a University ResearchProfessor at Memorial University in St. John's, Canada. He is an elected member of the International Statistical Institute and a fellow of the American Statistical Association. He has published about 110 papers in statistics journals in the area of multivariate analysis, time series analysis including forecasting, sampling, survival analysis for correlated failure times, robust inferences in generalized linear mixed models with outliers, and generalized linear longitudinal mixed models with bio-statistical and econometric applications. He has served as an associate editor for six years for Canadian Journal of Statistics and for four years for the Journal of Environmental and Ecological Statistics. He has served for 3 years as a member of the advisory committee on statistical methods in Statistics Canada. Professor Sutradhar was awarded 2007 distinguished service award of Statistics Society of Canada for his many years of services to thesociety including his special services for society's annual meetings.

A basic understanding of multiple regression is helpful in carrying out good business practices--specifically in the areas of demand management and data analysis. This book on correlation and regression analysis will have a non-mathematical, applied, data-analytic approach. Readers will benefit from its practitioner language and frequent use of examples. Multiple regression is at the heart of business data analysis because it deals with explanations of why data behaves the way it does and correlations demonstrating this behavior. The applied emphasis of the book provides clear illustrations of these principles and offers complete examples of the types of applications that are possible, including how to arrive at basic forecasts when the absence of historical data makes more sophisticated forecasting techniques impossible, and how to carry out elementary data mining, which can be done using only Excel, without reliance on more specialized data mining software. Students and business readers will learn how to specify regression models that directly address their questions.

This book presents and discusses modern problems of organic chemistry and theoretical physics including the method of correlation functions of many objects; dynamic and stochastic systems; the generalized model of Matsubara; conductivity in polymers; research of nonequilibrium dynamic problems; and conductivity in polymers.

It is difficult to imagine that the statistical analysis of compositional data has been a major issue of concern for more than 100 years. It is even more difficult to realize that so many statisticians and users of statistics are unaware of the particular problems affecting compositional data, as well as their solutions. The issue of ``spurious correlation'', as the situation was phrased by Karl Pearson back in 1897, affects all data that measures parts of some whole, such as percentages, proportions, ppm and ppb. Such measurements are present in all fields of science, ranging from geology, biology, environmental sciences, forensic sciences, medicine and hydrology. This book presents the history and development of compositional data analysis along with Aitchison's log-ratio approach. Compositional Data Analysis describes the state of the art both in theoretical fields as well as applications in the different fields of science. Key Features: Reflects the state-of-the-art in compositional data analysis. Gives an overview of the historical development of compositional data analysis, as well as basic concepts and procedures. Looks at advances in algebra and calculus on the simplex. Presents applications in different fields of science, including, genomics, ecology, biology, geochemistry, planetology, chemistry and economics. Explores connections to correspondence analysis and the Dirichlet distribution. Presents a summary of three available software packages for compositional data analysis. Supported by an accompanying website featuring R code. Applied scientists working on compositional data analysis in any field of science, both in academia and professionals will benefit from this book, along with graduate students in any field of science working with compositional data.

'The main purpose of this book is to demonstrate the possibility of transforming a large class of machine learning algorithms into integrated commonsense reasoning processes in which inductive and deductive inferences are not separated one from another but moreover they are correlated and support one another'--Provided by publisher.

Financial markets respond to information virtually instantaneously. Each new piece of information influences the prices of assets and their correlations with each other, and as the system rapidly changes, so too do correlation forecasts. This fast-evolving environment presents econometricians with the challenge of forecasting dynamic correlations, which are essential inputs to risk measurement, portfolio allocation, derivative pricing, and many other critical financial activities. In Anticipating Correlations, Nobel Prize-winning economist Robert Engle introduces an important new method for estimating correlations for large systems of assets: Dynamic Conditional Correlation (DCC). Engle demonstrates the role of correlations in financial decision making, and addresses the economic underpinnings and theoretical properties of correlations and their relation to other measures of dependence. He compares DCC with other correlation estimators such as historical correlation, exponential smoothing, and multivariate GARCH, and he presents a range of important applications of DCC. Engle presents the asymmetric model and illustrates it using a multicountry equity and bond return model. He introduces the new FACTOR DCC model that blends factor models with the DCC to produce a model with the best features of both, and illustrates it using an array of U.S. large-cap equities. Engle shows how overinvestment in collateralized debt obligations, or CDOs, lies at the heart of the subprime mortgage crisis--and how the correlation models in this book could have foreseen the risks. A technical chapter of econometric results also is included. Based on the Econometric and Tinbergen Institutes Lectures, Anticipating Correlations puts powerful new forecasting tools into the hands of researchers, financial analysts, risk managers, derivative quants, and graduate students.