Cokurtosis

Categories: Metrics, Econ

Sounds like a designer bug that escaped from some shadowy bio-research lab.

Cokurtosis is the measure of how much two random variables will change together. The higher the amount of cokurtosis two variables exhibit, the more likely that they’re both going to take a drastic dive together...or head for the sky together.

Let’s say that the number of Nicholas Cage movies released in a year and drowning deaths in pools have a large cokurtosis value. If Mr. Cage suddenly drops six movies on us in one year after only releasing one the year before, we can expect an equally drastic increase in drowning deaths in pools that year.

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