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The correlation coefficient is the cosine of the angle. Is that what you mean? You then apply spherical trigonometry to the triangle. Assuming all three variables are on a plane, you get upper and lower bounds (from cosine of sum and cosine of difference formulas).

This all follows from considering that "covariance" is an "inner product". The Cauchy-Schwarz inequality gives you "covariance is less than the product of standard deviations".

Does that answer your question?

Most economists teach a theoretical framework that has been shown to be fundamentally useless. -- James K. Galbraith

by Migeru (migeru at eurotrib dot com) on Tue Feb 24th, 2009 at 12:10:16 PM EST
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yes

Pierre
by Pierre on Tue Feb 24th, 2009 at 12:42:15 PM EST
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