Financial analysts assume that the reliability of predictions derived from regression analysis
improves with sample size. This is thought to be true because larger samples tend to …

The authors describe a new prediction system based on relevance, which gives a mathematically
precise measure of the importance of an observation to forming a prediction, as well as …

The carry trade in foreign currencies is known for delivering positive returns, on average,
and for occasionally suffering large losses. While these characteristics prevail, on average, …

One of the motivations for a country to join the European Union is the belief that this will
boost short- and long-run incomes. Researchers have tested the hypothesis of income …

Investors rely on the stock-bond correlation for a variety of tasks, such as forming optimal
portfolios, designing hedging strategies, and assessing risk. Most investors estimate the stock–…

It is becoming increasingly common for investors to stratify portfolios into factors rather than
assets. This approach may be advantageous for a variety of reasons. For example, certain …

Investors have long relied on scenario analysis as an alternative to mean–variance analysis
to help them construct portfolios. Even though mean–variance analysis accounts for all …

The authors describe a new statistical concept called relevance from a conceptual and
mathematical perspective, and based on their mathematical framework, they present a unified …

Relevance-based prediction is a new approach to data-driven forecasting that serves as a
favorable alternative to both linear regression analysis and machine learning. It follows from …

Investors have traditionally relied on mean-variance analysis to determine a portfolio’s
optimal asset mix, but they have struggled to incorporate private equity into this framework …