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 ...

Elvis Picardo is a regular contributor to Investopedia and has 25+ years of experience as a portfolio manager with diverse capital markets experience. Yarilet Perez is an experienced multimedia ...

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 ...

The correlation function is a useful signal-analysis tool that engineers often overlook. Its formidable equation, which you have probably not thought about since your undergraduate signals and systems ...

With asset allocation riding a wave of investor popularity, investors have begun to treat asset allocation with the same diligence afforded manager and security selection. The common requirements of ...

Ruben (1966) has suggested a simple approximate normalization for the correlation coefficient in normal samples, by representing it as the ratio of a linear combination of a standard normal variable ...

Bitcoin (BTC) has historically moved in the opposite direction of the U.S. Dollar Index (DXY), which gauges the greenback's exchange rate against major fiat currencies, including the euro. The ...

In today’s interconnected world, network management is critically important. Those who maintain the network need to quickly pinpoint and fix any problem, whether it’s a malfunctioning mail daemon or a ...