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Easy · statistical_analysis · Quant Researcher interview question · weighted_statistics, correlation, risk_model, signal_processing, statistical_analysis
Weighted statistics are fundamental in quantitative finance for applications like time-decayed risk models and robust signal estimation. The weighted Pearson correlation generalizes the standard correlation to accommodate arbitrary non-negative weights, allowing recent or more relevant observations to have a greater impact. This makes it a crucial component for building sophisticated risk and return models. Task Implement the function weighted_pearson_correlation(x: list, y: list, w: list) -> f