Hi! Is there a way to visualize simpson's paradox and how to use entropyetc ? It is not really clear to me yet. I am testing the effect of the change in news risk on weekly returns (log). Please find my results below:
perccomb3 is the change in news risk for which i created dummy variables based on different amounts of news risk. I also included the dummy multiplied by the change in news risk in the regression and these show a positive tendency (while the scatter only shows a downward sloping graph.
perccomb3 is the change in news risk for which i created dummy variables based on different amounts of news risk. I also included the dummy multiplied by the change in news risk in the regression and these show a positive tendency (while the scatter only shows a downward sloping graph.
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