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Finance allah shmoop what is characteristic line thie characteristic line

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is a quote fitted unquote line through a bunch of

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data points that reflects the character of the data itself

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Like all these dots here they actually have a character

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like pathos and humanity and you see it getting feel

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it never mind well these things are points relating the

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returns from coca cola stock versus the s and p

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five hundred over some period of time Well that highly

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similarly fitted line shows that the performance of k o

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

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is very closely related to the performance of the overall

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market when the market goes up While generally speaking ko

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goes up as well had the line slope the opposite

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direction because the data looked like this than ko would

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be A negatively correlated line with the performance of the

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market in its characteristic would be the opposite direction Well

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the key idea is that lines through bunches of data

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points Those things give character or at least a characteristic

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

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

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

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toy thing Yeah line basically is a summary of all

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

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leaves of these graphs is a big part of what

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chartist style invest or traders All do So if you

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like dots and plots and lines and did a whole

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lot of light bright when you were a kid well

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

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some experience in the mortuary business well you might be

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

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