You can calculate the correlation coefficient to find the correlation between any two variables, whether they are market indicators, stocks, or anything else that can ...

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 coefficients range from -1 to +1, indicating the strength of relationships between variables. Investors use correlation coefficients for portfolio diversification to reduce risk.

Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. Amy is an ACA and the CEO and founder of OnPoint ...

A procedure is described for estimating the correlation between two variables that, individually, can only be observed through destructive testing. The procedure involves proof loading a unit in one ...