Comment on Live Example - 2

KUMAR MAYANK commented on 01 Jun 2018, 10:46 AM

Hello sir
You said that the intercept should be much lower with respect to “y” or “beta times X”. I have a doubt. What if the intercept is low but the variance of it is very high or the value of t-stat is very low? Will you take a trade if all parameters are fine save this?
If intercept is high but its variance is quite low or the value of t-stat is very very high. Will you trade it if all other conditions are met?
Thanks

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