梦梦 · 2024年05月22日
NO.PZ2020011101000032
问题如下：
Variances are usually transformed into volatilities by taking the square root. This changes the units from squared returns to returns. Why isn’t the same transformation used on covariances?
解释：
Covariance may have either sign, and so the square root transformation is not reliable if the sign is negative. Transformation to or correlation is preferred when examining the magnitude of a covariance.
老师，红线的部分怎么翻译呢
NO.PZ2020011101000032 问题如下 Variances are usually transformeinto volatilities taking the square root. This changes the units from squarereturns to returns. Why isn’t the same transformation useon covariances? Covarianmhave either sign, anso the square root transformation is not reliable if the sign is negative. Transformation to β\betor correlation is preferrewhen examining the magnitu of a covariance. 如题，谢谢
老师能给翻译一下问题和答案吗？
