Spurious Correlation

Spurious Correlation
A false presumption that two variables are correlated when in reality they are not. Spurious correlation is often a result of a third factor that is not apparent at the time of examination. Spurious comes from the Latin word spurious, which means illegitimate or false.

According to the skirt length theory, many people believe that short skirts are used to predict that the markets are going up. And if skirt lengths are long, that it means the markets are going down. Some would argue that this is a spurious correlation and that each event occurs because of a random third variable such as warmer-than-expected weather or income levels.

Investment dictionary. . 2012.

Look at other dictionaries:

  • spurious correlation — A correlation between two variables when there is no causal link between them. A famous spurious correlation often quoted in the literature is that between the number of fire engines at a fire (X) and the amount of damage done (Y). Once the size… …   Dictionary of sociology

  • spurious correlation — noun a correlation between two variables (e.g., between the number of electric motors in the home and grades at school) that does not result from any direct relation between them (buying electric motors will not raise grades) but from their… …   Useful english dictionary

  • Correlation does not imply causation — (related to ignoring a common cause and questionable cause) is a phrase used in science and statistics to emphasize that correlation between two variables does not automatically imply that one causes the other (though correlation is necessary for …   Wikipedia

  • Spurious — can refer to:tatistics* Spurious correlation or spurious relationshipRadio engineering* Spurious emissionCryptography* Spurious keyLiterature* Spurious quotationComputing* Spurious interrupt * Spurious wakeup …   Wikipedia

  • Spurious relationship — In statistics, a spurious relationship (or, sometimes, spurious correlation or spurious regression) is a mathematical relationship in which two events or variables have no direct causal connection, yet it may be wrongly inferred that they do, due …   Wikipedia

  • correlation, spurious — See spurious correlation …   Dictionary of sociology

  • Correlation and dependence — This article is about correlation and dependence in statistical data. For other uses, see correlation (disambiguation). In statistics, dependence refers to any statistical relationship between two random variables or two sets of data. Correlation …   Wikipedia

  • correlation — If a change in the amount of one variable is accompanied by a comparable change in the amount of another variable, and the latter change does not occur in the absence of the former change, then the variables are said to be correlated. This is… …   Dictionary of sociology

  • Gene-environment correlation — Genetic factors influence exposure to many features of the environment. This comes about because people actively shape their experiences according to their personality and behavior, which are heritable. A consequence is that the relationship… …   Wikipedia

  • Scheinkorrelation — oder (engl.) spurious correlation bezeichnet eine Korrelation zwischen zwei Größen, der kein Kausalzusammenhang zu Grunde liegt. Häufig ist dies der Fall, wenn sogenannte intervenierende Variablen nicht berücksichtigt werden. Das Phänomen ist… …   Deutsch Wikipedia

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