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Covariances
A measure of how two stocks move together, indicating the degree to which their returns are interdependent.
Security Pairs
A strategy in trading involving two closely related securities, where one is purchased (long position) and the other is sold (short position).
Index Model
A statistical model used to represent the returns of a financial market index, essentially simplifying securities analysis by correlating a particular stock or portfolio's performance to a broader market benchmark.
Regression Equation
A mathematical formula used to predict the value of a dependent variable based on the values of one or more independent variables.
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