Financial Risk Manager Part 1
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Which of the following statements is correct regarding the Pearson correlation, Spearman rank correlation, and Kendall's τ?
A
A zero Pearson correlation indicates that there is no non-linear relationship among variables.
B
Both Spearman rank correlation and Kendall's τ can measure all types of non-linear relationship.
C
The Pearson correlation is appropriate for linear dependence, while Spearman rank correlation and Kendall's τ can deal with monotonic relationship.
D
Significant differences between the Pearson correlation and rank correlation indicate that there is no non-linear relationship among variables.