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RE: st: How to reduce correlation between variables


From   Ebru Ozturk <[email protected]>
To   <[email protected]>
Subject   RE: st: How to reduce correlation between variables
Date   Mon, 6 Aug 2012 20:24:30 +0300

They are still correlated. Sample size is 285 firms and I cannot increase it. Is there other way to sole this problem?

Kind regards
Ebru

----------------------------------------
> Date: Mon, 6 Aug 2012 12:36:07 +0200
> Subject: Re: st: How to reduce correlation between variables
> From: [email protected]
> To: [email protected]
>
> On Mon, Aug 6, 2012 at 12:22 PM, Ebru Ozturk wrote:
> > But it didnt change anything. They are still correlated. I used the command below:
> >
> > orthog x1 x2 x3, gen(x1* x2* x3*)
>
> you need to look at and use the new variables generated by -orthog-,
> see -help orthog-.
>
> *------------------ begin example --------------------
> sysuse auto, clear
> orthog weight length headroom displacement turn, gen(we_o le_o he_o di_o tu_o)
>
> // correlations among the original variables
> corr weight length headroom displacement turn
>
> // correlations among the "orthogonalized" variables
> corr we_o le_o he_o di_o tu_o
> *----------------- end example ---------------------
>
> -- Maarten
>
> ---------------------------------
> Maarten L. Buis
> WZB
> Reichpietschufer 50
> 10785 Berlin
> Germany
>
> http://www.maartenbuis.nl
> ---------------------------------
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