Next, we can use the degrees of freedom (df) (df is the number of independent bits of information in a statistical model or test; for Pearson correlation, the formula for this is df = n − 2), the ...

The Pearson correlation model is by far the most prominent in finance. It is applied in risk measures such as VaR (value-at-risk), see Chapters 1, 10 and 12; ES (expected shortfall), see Chapter 16; ...

R represents the value of the Pearson correlation coefficient, ... Small Minus Big (SMB): Definition and Role in Fama/French Model. After-Tax Real Rate of Return: Definition and How to Calculate It.

Formula for Correlation . Using the Pearson product-moment correlation method, ... Definition and Role in Fama/French Model. Stochastic Modeling: Definition, Uses, and Advantages.