{"id":28621,"date":"2023-08-03T00:05:00","date_gmt":"2023-08-03T04:05:00","guid":{"rendered":"https:\/\/einvestingforbeginners.com\/?p=28621"},"modified":"2023-07-28T09:43:35","modified_gmt":"2023-07-28T13:43:35","slug":"ifb298-causation-is-not-correlation","status":"publish","type":"post","link":"https:\/\/einvestingforbeginners.com\/ifb298-causation-is-not-correlation\/","title":{"rendered":"IFB298: Causation Is Not Correlation"},"content":{"rendered":"\n<p><iframe src=\"https:\/\/playlist.megaphone.fm\/?e=GLSS2347707545\" width=\"100%\" height=\"200\" frameborder=\"0\" scrolling=\"no\"><\/iframe><\/p>\n\n\n\n<p>Welcome to the Investing for Beginners podcast! Today&#8217;s episode will all be about beta, causation and correlation in the stock market! It&#8217;s quite a technical topic as it is hard show numbers through the podcast but we will do our best as always to piece it together as simple as possible. Listen on as we take a deep dive into volatility, what drives a stock price and more!<\/p>\n\n\n\n<p>Timestamps of the episode:<\/p>\n\n\n\n<p>-What is Beta and how is it being used in the stock market? [01:53]<\/p>\n\n\n\n<p>-Volatility and risk are not the same and will never be. [05:55]<\/p>\n\n\n\n<p>-Using Beta as part of your hurdle rate. [13:16]<\/p>\n\n\n\n<p>-The seemingly random relationship between causation and correlation in the stock market. [15:50]<\/p>\n\n\n\n<p>-How index funds and sector ETF&#8217;s affect a particular stock price. [19:56]<\/p>\n\n\n\n<p>-What really moves a stock price up and down? [21:26]<\/p>\n\n\n\n<p>-The stock market in the short term is a voting machine, and in the long term it is a weighing machine, a timeless Graham quote. [24:20]<\/p>\n\n\n\n<p>Note: Timestamps may differ and are approximate, depending on your podcast player.<\/p>\n\n\n\n<p>For more insight like this into investing and stock selection for beginners, visit&nbsp;<a href=\"https:\/\/get.einvestingforbeginners.com\/podcast-pdf\/\"><u>stockmarketpdf.com<\/u><\/a>&nbsp;<\/p>\n\n\n\n<p>Today&#8217;s show is sponsored by:<\/p>\n\n\n\n<p><strong>Rocket Money:<\/strong><\/p>\n\n\n\n<p><strong>Stop throwing your money away. Cancel unwanted subscriptions \u2013 and manage your expenses the easy way \u2013 by going to&nbsp;<a href=\"https:\/\/www.rocketmoney.com\/BEGINNERS\">RocketMoney.com\/BEGINNERS<\/a>.<\/strong><\/p>\n\n\n\n<p><strong>Babbel:<\/strong><\/p>\n\n\n\n<p><strong>Get 55% off your Babbel subscription at&nbsp;<a href=\"https:\/\/www.babbel.com\/BEGINNERS\">Babbel.com\/BEGINNERS<\/a>.<\/strong><\/p>\n\n\n\n<p><strong>Shopify:<\/strong><\/p>\n\n\n\n<p>Sign up for a one-dollar-per-month trial period at <a href=\"https:\/\/shopify.com\/beginners\">SHOPIFY DOT COM SLASH \u201cbeginners\u201d<\/a>, ALLLOWERCASE. Go to SHOPIFY DOT COM SLASH \u201cbeginners\u201d to take your business to the next level today.<\/p>\n\n\n\n<p><strong>SUBSCRIBE TO THE SHOW<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/podcasts.apple.com\/us\/podcast\/investing-for-beginners-podcast-your-path-to-financial\/id1210741497\"><u>Apple<\/u><\/a>&nbsp;|&nbsp;<a href=\"https:\/\/open.spotify.com\/show\/3sIN6k0aT6cCWP2AJRvHEK\"><u>Spotify<\/u><\/a>&nbsp;|&nbsp;<a href=\"https:\/\/podcasts.google.com\/feed\/aHR0cHM6Ly9laW52ZXN0aW5nZm9yYmVnaW5uZXJzLmNvbS9mZWVkL3BvZGNhc3Qv\"><u>Google<\/u><\/a>&nbsp;|&nbsp;<a href=\"https:\/\/www.stitcher.com\/show\/the-investing-for-beginners-podcast-your-path-to-financial\"><u>Stitcher<\/u><\/a>&nbsp;|&nbsp;<a href=\"https:\/\/tunein.com\/podcasts\/Podcasts\/The-Investing-for-Beginners-Podcast---Your-Path-to-p965246\/\"><u>Tunein<\/u><\/a><\/p>\n\n\n\n<p>You can find the transcript of today&#8217;s show below:<\/p>\n\n\n\n<div data-wp-interactive=\"core\/file\" class=\"wp-block-file\"><object data-wp-bind--hidden=\"!state.hasPdfPreview\"  class=\"wp-block-file__embed\" data=\"https:\/\/einvestingforbeginners.com\/wp-content\/uploads\/2023\/07\/IFB298-Causation-is-not-Correlation.pdf\" type=\"application\/pdf\" style=\"width:100%;height:600px\" aria-label=\"Embed of IFB298-Causation-is-not-Correlation.\"><\/object><a id=\"wp-block-file--media-c46c9f92-cdb0-49c1-8804-ae96e0c81cf4\" href=\"https:\/\/einvestingforbeginners.com\/wp-content\/uploads\/2023\/07\/IFB298-Causation-is-not-Correlation.pdf\">IFB298-Causation-is-not-Correlation<\/a><a href=\"https:\/\/einvestingforbeginners.com\/wp-content\/uploads\/2023\/07\/IFB298-Causation-is-not-Correlation.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-c46c9f92-cdb0-49c1-8804-ae96e0c81cf4\">Download<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Welcome to the Investing for Beginners podcast! Today&#8217;s episode will all be about beta, causation and correlation in the stock market! It&#8217;s quite a technical topic as it is hard show numbers through the podcast but we will do our best as always to piece it together as simple as possible. Listen on as we [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[5973,1178],"tags":[],"yst_prominent_words":[],"_links":{"self":[{"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/posts\/28621"}],"collection":[{"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/comments?post=28621"}],"version-history":[{"count":2,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/posts\/28621\/revisions"}],"predecessor-version":[{"id":28636,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/posts\/28621\/revisions\/28636"}],"wp:attachment":[{"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/media?parent=28621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/categories?post=28621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/tags?post=28621"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/yst_prominent_words?post=28621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}