Birdwatch Note Rating
2024-02-15 13:55:53 UTC - HELPFUL
Rated by Participant: 2E8991D652A0C6897F92CF6367D33F76B590C687B1E475257DF2059C990D190F
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Original Note:
The correlation is high mechanically because both series have a time trend. Therefore, there's no similarities between today an the great depression. The correlation should be calculated on the returns or detrended data. https://www.sciencedirect.com/topics/mathematics/spurious-correlation#:~:text=Spurious%20correlation%20is%20especially%20likely,with%20changes%20or%20percentage%20changes.
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