multiple correlation financial definition of multiple correlation. multiple correlation finance term by the Free Online Dictionary.

Correlation

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

correlation

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.

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.

correlation

A former appraisal term, replaced by reconciliation.

Correlation

What Does Correlation Mean?

In the investment world, correlation is a statistical measure of how two securities move in relation to each other. Correlations are used in advanced portfolio management.

Investopedia explains Correlation

Correlation is expressed as the correlation coefficient, which ranges between -1 and +1. Perfect positive correlation (a correlation coefficient of +1) means that as one security moves up or down, the other security will move lockstep in the same direction. Perfect negative correlation means that when one security moves in one direction, the other security will move by an equal amount in the opposite direction. If the correlation is 0, the movements of the securities are said to have no correlation; they are completely random. In real life, one rarely finds perfectly correlated securities but rather securities with degrees of correlation.

Related Terms:
• Asset Allocation
• Correlation
• Diversification
• Modern Portfolio Theory—MPT
• Standard Deviation

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
Autocorrelation BDS Statistic Cluster analysis Coefficient de correlation Coeficiente de correlacao Coeficiente de correlacion Contagion Correlation Coefficient Correlation Dimension Correlation Integral Covariance Cross Hedging Diversification Information Coefficient Magic of diversification Modern Portfolio Theory MSCI Emerging Markets Index Portfolio R2 R Square	At the multiple correlation analysis, gender was a stronger predictor for the required GH dose than the age (p<0. Bone density and turnover in young adult patients with growth hormone ... by Life Extension Data Analyses Descriptive statistics and Pearson product correlations were determined for all study cohorts, with multiple correlations for cohorts 2 and 3 and regressions for cohort 3. Impact of Body Weight on Performance of a Weight-Supported Motor ... by Phillip A EdD Bishop and Todd A PhD Crowder and Lynn R PhD Fielitz PhD and Timothy R MS Lindsay and / Military Medicine As can be seen, there are about 20 pairs that are cross-correlated, and which should therefore not be used in constructing multiple correlation models. Elucidation of corrosion failure mechanisms of coated Phosphated ... by Amin, Sarjak; Avudaiappan, Sundaresan; Johnpasha, Askarali; Provder, Theodore; Floyd, F. Louis / JCT Research	Multi-Fibre Arrangement Multi-Option Financing Facility Multibank Holding Company Multibuyer Multibuyer Policy Multicoded City Multicurrency Clause Multicurrency Loans Multifactor CAPM Multifamily Loan Multifamily Loans multifamily residential property Multilateral Investment Guarantee Agency Multilateral netting system Multilateral Steel Agreement Multilith Multimaturity Bond Multinational Multinational Corporation Multinational Netting Multinational Restructuring Multiperiod Immunization Multiple Multiple Arbitrage Multiple Compression multiple correlation Multiple Discriminant Analysis Multiple Insurance Multiple Listing multiple listing service Multiple Management multiple option strategy Multiple peril insurance Multiple Protection Life Insurance Policy Multiple Rates of Return Multiple Regression Multiple Round Lots Multiple Shop Multiple Support Agreement Multiple Taxation Multiple-Discriminant Analysis Multiple-Issuer Pool Multiple-Issuer Pools Multiples Multiplicador Multiplier Multiplier Effect Multirule system Muni Municipal Municipal Bond	Multiple Coagulation Factor Deficiency Multiple Coagulation Factor Deficiency III multiple coefficient of determination multiple colloid goiter Multiple Combination Bactericidal Testing Multiple Communications Emitter Locator System Multiple Components in One Database Multiple Compression Multiple Compressions multiple computer operation Multiple Condition Decision Coverage Multiple Congenital Abnormalities and/or Developmental Delay Multiple Congenital Anomalies Multiple Congenital Anomalies/Mental Retardation syndrome Multiple Congenital Anomaly/Mental Retardation Syndromes Multiple congenital exostoses Multiple Congestion States Multiple conjugation multiple connector Multiple Connector Test System Multiple console support Multiple Constant Multiplication Multiple Conventional Insulin Injections Multiple Coronary Arterial Lesions multiple correlation Multiple Correlation Clustering multiple correlation coefficient Multiple Correspondence Analysis Multiple Coupled Line Model multiple crash Multiple Criteria Decision Aid Multiple Criteria Decision Analysis Multiple Criteria Decision Making Multiple Criteria Linguistic Decision Model Multiple cropping Multiple Cropping Center Multiple Cropping Department Multiple Crossbar Network Multiple Crown CC Watermark Multiple Cue Probability Learning Paradigm Multiple Cutaneous and Uterine Leiomyomata Multiple Cutaneous Leiomyoma Multiple Cycle Multiple Cycle Direct Oxide Reduction Multiple Cyclone Multiple Daily Injections Multiple Data Entry Multiple Data Message Format Multiple Data Message Format Multiple Data Message Format Multiple Data Set

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References in periodicals archive

Financial browser

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Autocorrelation
BDS Statistic
Cluster analysis
Coefficient de correlation
Coeficiente de correlacao
Coeficiente de correlacion
Contagion
Correlation Coefficient
Correlation Dimension
Correlation Integral
Covariance
Cross Hedging
Diversification
Information Coefficient
Magic of diversification
Modern Portfolio Theory
MSCI Emerging Markets Index
Portfolio R2
R Square

At the multiple correlation analysis, gender was a stronger predictor for the required GH dose than the age (p<0.

Bone density and turnover in young adult patients with growth hormone ... by Life Extension

Data Analyses Descriptive statistics and Pearson product correlations were determined for all study cohorts, with multiple correlations for cohorts 2 and 3 and regressions for cohort 3.

Impact of Body Weight on Performance of a Weight-Supported Motor ... by Phillip A EdD Bishop and Todd A PhD Crowder and Lynn R PhD Fielitz PhD and Timothy R MS Lindsay and / Military Medicine

As can be seen, there are about 20 pairs that are cross-correlated, and which should therefore not be used in constructing multiple correlation models.

Elucidation of corrosion failure mechanisms of coated Phosphated ... by Amin, Sarjak; Avudaiappan, Sundaresan; Johnpasha, Askarali; Provder, Theodore; Floyd, F. Louis / JCT Research

Multi-Fibre Arrangement

Multi-Option Financing Facility

Multibank Holding Company