correlation(redirected from Correlation (statistics))
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In investment terms, correlation is the extent to which the values of different types of investments move in tandem with one another in response to changing economic and market conditions.
Correlation is measured on a scale of - 1 to +1. Investments with a correlation of + 0.5 or more tend to rise and fall in value at the same time. Investments with a negative correlation of - 0.5 to - 1 are more likely to gain or lose value in opposing cycles.