False Signal

Finance allah shmoop what is characteristic line thie characteristic line

is a quote fitted unquote line through a bunch of

data points that reflects the character of the data itself

Like all these dots here they actually have a character

like pathos and humanity and you see it getting feel

it never mind well these things are points relating the

returns from coca cola stock versus the s and p

five hundred over some period of time Well that highly

similarly fitted line shows that the performance of k o

it's the ticker for coke if you live on mars

is very closely related to the performance of the overall

market when the market goes up While generally speaking ko

goes up as well had the line slope the opposite

direction because the data looked like this than ko would

be A negatively correlated line with the performance of the

market in its characteristic would be the opposite direction Well

the key idea is that lines through bunches of data

points Those things give character or at least a characteristic

explaining the direction of a given trend whether it's a

stock price the popularity of a new children's toy or

the ebola infection rate way less fun than that children's

toy thing Yeah line basically is a summary of all

the dots That's what it is Well reading the tea

leaves of these graphs is a big part of what

chartist style invest or traders All do So if you

like dots and plots and lines and did a whole

lot of light bright when you were a kid well

then maybe this one's for you And if you've got

some experience in the mortuary business well you might be

able to come up with some kind of crossover gig 00:01:49.619 --> [endTime] Ooh