Correlation Pitfalls With ChatGPT: Would You Fall for Them?

22 Pages Posted: 19 May 2023

Date Written: May 15, 2023

Abstract

This paper presents an intellectual exchange with ChatGPT, an artificial intelligence chatbot, about correlation pitfalls in risk management. The purpose of this discussion is to evaluate ChatGPT’s understanding of these pitfalls and to offer readers an engaging alternative for learning about them. Our findings indicate that ChatGPT possesses solid knowledge of basic and mostly non-technical aspects of the topic, but falls short in terms of the mathematical goring needed to avoid certain pitfalls or completely comprehend the underlying concepts. Nonetheless, we suggest ways in which ChatGPT can be utilized to enhance the learning process.

Keywords: ChatGPT, correlation, dependence, pitfalls

JEL Classification: C45, G32, D83

Suggested Citation

Hofert, Marius, Correlation Pitfalls With ChatGPT: Would You Fall for Them? (May 15, 2023). Available at SSRN: https://ssrn.com/abstract=4448522 or http://dx.doi.org/10.2139/ssrn.4448522

Marius Hofert (Contact Author)

The University of Hong Kong

Hong Kong
Hong Kong

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