A Five-Minute (minimum) Explanation

Sometimes I find myself throwing around terms for which I do not have complete understanding. I understand the context in which the word of phrase makes sense, but there is no real understanding. I'm making a list of those terms, and applying the Five-Minute (minimum) Explanation Rule to them, so that I will not go to bed at night with a general sense of intellectual embarrassment.

This is the test. Imagine you are on a stage in front of a group of 100 people, and they are all facing you to listen to your presentation. You are to explain to them the meaning of a term, and you have to stay on stage for at least five minutes. There are armed personnel ensuring that you do not leave the stage until your allotted time has expired. Now, can you please explain to the group the meaning of correlation?

"Umm, yeah sure ..."

Judge adds one minute to your time because of your hesitation in mumbling a "quote" -- ummm. You look for your notes but can't find them, and then remember that no notes are allowed. You are starting to sweat and reach for the glass of water, only to find that it is empty with a message on the bottom of the glass saying "no water for you."

Alright, that's enough lyricism. The idea is that you are comfortable with a concept and explaining it, before you throw it around in polite conversation. Do you even know what you're talking about? If not, then gain an understanding.

These are my terms. Some I can go for about three minutes, others I'll probably last about 15 seconds.

     Correlation

     Covariance

     Autocorrelation or Serial Correlation

     Copula

     Statistical Moments 

     Cointegration

These are all important in the world of trading, and for me I shall stretch my knowledge of them so as to meet the requirements of the Five-Minute (minimum) Explanation Rule.