Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Investors understand intuitively that some stocks are riskier than others. The capital asset pricing model attempts to quantify the common perception of risk using a term called beta. By understanding ...

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 ...

Leslie Kramer is a writer for Institutional Investor, correspondent for CNBC, journalist for Investopedia, and managing editor for Markets Group. Correlation measures the linear relationship between ...

Reviewed by Thomas BrockFact checked by Suzanne KvilhaugReviewed by Thomas BrockFact checked by Suzanne Kvilhaug Correlation, in the finance and investment industries, is a statistic that measures the ...

Correlation measures the linear relationship between two variables. It gives an indication of the strength of the relationship by measuring and relating the variance of each. Correlation answers the ...