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Statistical measure of the degree to which the movements of two variables (stock/option/convertible prices or returns) are related. See: Correlation coefficient.


The relationship between two variables during a period of time, especially one that shows a close match between the variables' movements. For example, all utility stocks tend to have a high degree of correlation because their share prices are influenced by the same forces. Conversely, gold stock price movements are not closely correlated with utility stock price movements because the two are influenced by very different factors. The concept of correlation is frequently used in portfolio analysis. See also serial correlation.


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.


a statistical term that describes the degree of association between two variables. When two variables tend to change together, then they are said to be correlated, and the extent to which they are correlated is measured by means of the CORRELATION COEFFICIENT.


A former appraisal term, replaced by reconciliation.
References in periodicals archive ?
The largest average values of linear correlation coefficients during the period 1993-2008, which are more than 0.
So we used the reparametrisation in order to obtain the linear correlation as direct argument for IR.
The rank correlation analysis suggests, as does linear correlation, that the 'out-of-pocket' price measure is better correlated with survey data on inflation perception than with headline inflation (Figure 7).
The linear correlations are statistically significant for the second mode of GPH20 for the three sets examined (warm, cold and all winters, Table 1).
Figure 7 demonstrates that a plot of (MH-ML) against the content of the main diene monomer gives good linear correlations for the various VNB-EPDMs.
The results showed a strong linear correlation and regression between MOR tested after 1h boiling and mold growth (-0.
Because there is a significant linear correlation between the rate of algal expulsion and the rate of algal division, factors that increase division rates (e.
A direct linear correlation between nasal resistance and the respiratory disturbance index (RDI) has not been observed, although the two indices do seem to have an association.
Reproduction of risk with the use of an indicator of lifetime consumption instead of a single-shot assessment of alcohol consumption may be quite satisfactory in cases where the linear correlation is not less than .
Tabular demonstration, graphic presentation, summation, measures of variability, ratios, rates, sampling distribution, statistical inference, binomial distribution, multiple regression, linear correlation, contingency, factor analysis, and so on, have not been imagined by sociologists or political scientists.
To test whether the results of the linear correlation analyses were due only to such localized effects near the focal band, Experiment 1 hit densities from lags -1 through +7 (which by visual inspection appeared to be one cycle) were replaced by the mean value for all 49 hit densities (0.
A Pearson correlation showed a positive linear correlation at the 0.

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