Statisticians like me say CORRELATION ISN'T CAUSATION but that's not the whole story.

There are at least FOUR different scenarios!

A thread. 🧵

1. CORRELATED BY CHANCE. There's always a possibility that variables will correlate by chance. If you have a lot of data, you're almost certain to get a few high correlations. You will know you're in this situation if the same variables are much less correlated in new data.
2. CORRELATED DUE TO STRUCTURE. Clocks are correlated with each other but there's nothing about Clock A that can be changed in order to cause a change in Clock B or vice versa. There is no third thing you can change that will cause both clocks to change. There is no causation.
You might be tempted to say that the clocks have the common cause of being created by humans. Imagine two random stars that have a cyclical change in brightness every 24 hours. They will be correlated as well. It's not about who created them. It's about their similar structure.
3. MURKY CAUSATION. In the simplest case, if A and B are correlated and there is some causation then this could mean that A causes B, B causes A or some third thing C causes both A and B. In the most complex case, there could be complicated feedback loops between A and B.
In these cases, when we say "correlation isn't causation", what we mean is that we can't identify exactly what kind of causation there is but there is some.
4. EVEN MURKIER CAUSATION. A and B might not be related at all in the real world but something about your data collection may have caused data about A to be related to data about B. Technically, you could say you or your data collection are the cause of the correlation.
However, in the context of the original variables themselves and the real world, A is not causally related to B.

Hope this was educational! 🧵

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MASTER THREAD on Short Strangles.

Curated the best tweets from the best traders who are exceptional at managing strangles.

• Positional Strangles
• Intraday Strangles
• Position Sizing
• How to do Adjustments
• Plenty of Examples
• When to avoid
• Exit Criteria

How to sell Strangles in weekly expiry as explained by boss himself. @Mitesh_Engr

• When to sell
• How to do Adjustments
• Exit


Beautiful explanation on positional option selling by @Mitesh_Engr
Sir on how to sell low premium strangles yourself without paying anyone. This is a free mini course in


1st Live example of managing a strangle by Mitesh Sir. @Mitesh_Engr

• Sold Strangles 20% cap used
• Added 20% cap more when in profit
• Booked profitable leg and rolled up
• Kept rolling up profitable leg
• Booked loss in calls
• Sold only


2nd example by @Mitesh_Engr Sir on converting a directional trade into strangles. Option Sellers can use this for consistent profit.

• Identified a reversal and sold puts

• Puts decayed a lot

• When achieved 2% profit through puts then sold