Strange correlations in data can spook people

When anyone measures a lot of data and then correlates it with phenomenon seemingly unrelated to the data, seemingly some relationships become evident. Is there a cause and effect? – Not necessarily but it still is surprising on how it can be related.

Consider the example correlation between the movie showed on TV and the stock market. It is a strange correlation between Studio Ghibli movie shown on Friday night and bad trading sessions after that…This has happened many times and has convinced the traders as well as the people to such an extent that it has become a self fulfilling prophecy.

Take this a little further, when that movie showing is combined with non-farm payroll data is announced by the US, the yen does very badly. This has happened nearly eight out of nine times and has led to surprising results, and has convinced people of the value of this correlation.

However, it seems logical that there is no correlation, and statistician will announce that this is probably random noise ,but still has convinced many Japanese that there is a correlation. Read more at the link below.


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