Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0. Key Takeaways ...

The formula for Pearson’s correlation coefficient, r, relates to how closely a line of best fit, or how well a linear regression, predicts the relationship between the two variables. It is presented ...

Commodity correlation isn’t static—and ignoring that can blow up your portfolio. Learn how to track it and adjust your risk ...

There are two key assumptions for the Spearman’s rank correlation coefficient: The data should be on the ordinal or continuous scale. An example of an ordinal variable is a survey question that ranks ...

The current 200-day correlation between stocks and bonds is at 0.87, strongly positive. But the correlation coefficient seems to be rolling over, moving lower in the past 15 trading sessions ...

A correlation coefficient is a number used to describe the strength of a relationship between two variables. These numbers range from -1 to +1, with zero describing no correlation at all.

Deep Dive. The following defensive stocks all have a low correlation coefficient (beta of 0.50 or under) compared to the SPY. In addition, these stocks exhibit sound fundamentals in the form of ...

The correlation of bitcoin (BTC) and ether (ETH) to the U.S. Dollar Index (DXY) has once again turned negative. BTC’s correlation coefficient to the DXY has fallen to -0.36, after moving as high ...