# The Misleading Value of Measured Correlation

@article{MahdaviDamghani2012TheMV, title={The Misleading Value of Measured Correlation}, author={Babak Mahdavi-Damghani and Daniella Welch Welch and Ciaran O'Malley and Stephen Knights}, journal={ERN: Time-Series Models (Multiple) (Topic)}, year={2012} }

Within the framework of the financial industry, when representing relationships between assets, correlation is typically used. However, academics have long since questioned this method due to the plethora of issues that plague it. Indeed, it is thought that cointegration is a natural replacement in some of the cases as it is able to represent the physical reality of these assets better. However, despite this general academic consensus, financial practitioners refuse to accept cointegration as a…

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