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When building an ARCH model, an analyst notices that large errors are followed by large errors and small errors by small errors, but the sign of the errors does not matter. This phenomenon is indicative of what type of volatility clustering?
Cluster 1 Cluster 2
Count 150 200
Mean X 5.0 2.0
Mean Y 2.0 5.0
SSD 20.0 15.0
Given the cluster matrix above, which statement correctly interprets the cluster characteristics?
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