Learn about correlation, including how it measures the relationship between securities, along with how it aids in diversifying your portfolio and risk management.

An example of a scatter graph. This graph shows the relationship between a recorded temperature and the number of drinks sold. To produce a scatter diagram, data is required. The data often comes in ...

Correlation coefficients are indicators of the strength of the linear relationship between two different variables, x and y. A linear correlation coefficient that is greater than zero indicates a ...

What Is the Correlation Coefficient? The correlation coefficient is a metric that measures the strength and direction of a relationship between two securities or variables, such as a stock and a ...