Statistics 101: Joint and Marginal Probabilities

Statistics 101: Joint and Marginal Probabilities

In this video we look at the individual and joint behavior of two stocks: General Electric (GE) and Apple (APPL). More specifically, we analyze the daily returns for the entire 2012 trading year for these two stocks looking at the probability they suffer a tandem loss, tandem gain, or diverge. This leads to the construction of a joint and marginal probability table.

Keep in mind that 1) this video is not about finance per se and 2) it is not a time-series analysis. I am just using financial data to demonstrate the concept. Enjoy!

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