Regarding White Gaussian noise
I don't understand why you multiplied std of sqrt(df.res_ret_ma_8) i.e 1.164 to 3? not to 1 and 2?
1 answers ( 0 marked as helpful)
Hey Ganesh,
Thanks for reaching out!
So, I was trying to showcase what interval would include 3 standard deviations on each side. The 3 comes from the fact that for a Normal Distribution, 99.7% of all the data falls within this interval, so I wanted to showcase what the 3 deviations region would look like in this scenario.
Hope this helps!
Best,
365 Vik