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

What Is the Correlation Coefficient? The correlation coefficient quantifies the strength and direction of a linear relationship between two variables, key in assessing investment risks and optimizing ...

In the first quarter of 2013, the stock of big data has experienced sudden declines followed by sporadic bouts of enthusiasm. The volatility—a new big data “V”—continues this month and Ted Cuzzillo ...

Correlation doesn't imply causation. You've probably heard that before. It's a true statement that's important in statistical analysis—if more tall people own cats, that doesn't mean that cats cause ...

In the first case, there is a strong upward-sloping relationship between X and Y; in the second case, no apparent relationship; in the third case, a strong downward-sloping relationship. Note the ...

Correlation analysis in portfolio management design is overrated. There isn’t much benefit derived from relying on low correlation among asset classes to achieve excess return. The best way to use ...

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 ...