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   Investment Thoughts - Quotes on the Fly
Which of all these series had the strongest correlation with U.S. stocks?
Excerpt

 

Butter production in Bangladesh, with a correlation of 75 percent! Getting into the spirit, we tossed in cheese, and brought t up to 95 percent. (...) so added sheep population to the mix and take it up to 99 percent, in sample, over 10 years. Adding random data to a regression does that. The out-of-sample predictions are less than worthless, often negative.

 

How I Became a Quant: Insights from 25 of Wall Street's Elite , Wiley, John & Sons, July 2007-Richard Lindsey, Barry Schachter

17.04.2016