Orthogonal rotations constrain factors to be uncorrelated. Hedge funds ideally produce returns relatively uncorrelated with market indices. If two contrasts are orthogonal, estimates created by using such contrasts will be uncorrelated. Note that even though the observations may be uncorrelated, the parameters are typically correlated. Note that even though the observations may be uncorrelated, the parameters are always correlated. In general, random variables may be uncorrelated but statistically dependent. A good forecasting method will yield residuals that are uncorrelated. Market neutral portfolios, therefore, will be uncorrelated with broader market indices. If two variables are uncorrelated, there is no linear relationship between them. The random effects assumption is that the individual-specific effects are uncorrelated with the independent variables. In OPLS, continuous variable data is separated into predictive and uncorrelated information. The transformed variables will be uncorrelated, even though they may not be independent. The standard GLM assumes that the observations are uncorrelated. The scales are uncorrelated with social desirability. It is also the same if the underlying asset is uncorrelated with interest rates.