---
title: Risk Management Mistakes with Correlation
url: https://www.ml-quant.com/papers/ssrn/5155665/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 5155665
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5155665
featured: 2025-03-20
citations: unknown
topic: Risk, Credit & Banking
---


# Risk Management Mistakes with Correlation

The article points out common errors in using Pearson's correlation in risk management, offering counterexamples and R code for clarity.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5155665
- Identifier: SSRN 5155665
- Released: 2025-02-26
- First featured: Quant Letter No. 89 (2025-03-20): https://www.ml-quant.com/issues/2025-03-20/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Risk, Credit & Banking

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