Birdwatch Note Rating
2024-02-15 11:21:05 UTC - HELPFUL
Rated by Participant: 81187E8DB09B6DFBA2815B135A614CF9269A439D5B7EC46E29EC88615AF89ACE
Participant Details
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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