Learn how the correlation coefficient helps investors gauge relationships between variables, aiding in portfolio diversification and risk management strategies.

Investopedia / Sydney Saporito What Correlation Can Tell You Correlation shows the strength of a relationship between two variables and is expressed numerically by the correlation coefficient.

The correlation function will ask for two rows of data from two identical timeframes. Input, click ok and voila—correlation coefficient. The correlation coefficient is a number between 1 and -1.

Correlation coefficients measure the relationship between two assets, and range between 1 and -1. The former implies a direct pricing relationship between the assets, while the latter indicates an ...

In the medical literature we often find the use of the Pearson correlation coefficient to describe the association between two variables. However, unless the marginal distributions of the two random ...