A Simple Visual Random Number Test

Random numbers are very difficult to test since there are so many ways a series of numbers can exhibit non-random properties. Correlation between consecutive number in a random sequence and an uneven distribution of numbers across the entire sequence are just two important tests. I was writing a simple random routine in C# and made … Continue reading A Simple Visual Random Number Test

Correlation – The Need For ‘Stationary’ Data

How correlated are Intel and Google’s stock ¬†prices? The below graph shows the daily close of prices of both from mid 2009 to mid 2011. From first impressions, it certainly looks like the two price series move in tandem and should have a high correlation. Indeed it turns out that correlation coefficient of the two … Continue reading Correlation – The Need For ‘Stationary’ Data