Uncorrelated but dependent
Give an example of two random variables that are uncorrelated but not independent.
Show hints (2)+
- Try a symmetric X and a function like Y = X².
- Correlation only captures linear association.
Answer
This is an open-ended question - work through it and compare your reasoning.
Create a free account to see the full worked solution and track your progress.
Interview format: Hedge Fund Quant, Systematic & Data-Driven Trading