Very nicely illustrated. Another example of effect sizes in context: in quant finance, a (Pearson) correlation 1-3% between a daily predictor and daily future returns, across thousands of stocks, can be enough to make hundreds of millions of dollars, if it holds up out-of-sample. (Depending on various other characteristics of the predictor, of course.)
Very nicely illustrated. Another example of effect sizes in context: in quant finance, a (Pearson) correlation 1-3% between a daily predictor and daily future returns, across thousands of stocks, can be enough to make hundreds of millions of dollars, if it holds up out-of-sample. (Depending on various other characteristics of the predictor, of course.)