So cotemporanrous correlation isn't enough to trade on. You need to look for a l...

joshu on March 19, 2011 | parent | context | favorite | on: Does Anne Hathaway News Drive Berkshire Hathaway's...

So cotemporanrous correlation isn't enough to trade on. You need to look for a leading signal. You might also want to compare the actors to the SP500.

You can make money even with a fairly low rsq if you have a good portfolio construction and cheap execution.