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Easy · statistical_analysis · Quant Researcher interview question · kendall_tau, rank_correlation, non_parametric, concordance, statistical_analysis
Kendall's tau is a non-parametric rank correlation coefficient used to measure the ordinal association between two variables. Unlike Pearson correlation, it is robust to outliers and non-linear relationships, making it well-suited for analyzing financial time series like asset returns or trading signals. The coefficient is calculated by counting the number of concordant and discordant pairs of observations. Task Implement the function kendall_tau(x: list, y: list) -> float to compute Kendall's