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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.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.


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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005


A former appraisal term, replaced by reconciliation.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
In the achalasia group, there was a positive linear correlation between esophageal IRP and iNOS mRNA ( P < 0.05) [Figure 1]c.
Linear correlation coefficients for the average air temperature in relation to the average start date of 'End of flowering' of Cirsium arvense (L.) Scop.
Figure 3(c) shows the weak correlation between age and corneal astigmatism in the total MFS patients in the left eye (r = -0.274, P = 0.004, Figure 3(c)), whereas no linear correlation was detected between age and corneal astigmatism in the young MFS patients (Figure 3(f)).
The test results showed that the volumetric characteristics of WMA had strong linear correlation with CAA.
The calculation of groundwater level obtained on the basis of discharge hydrograph with assumed linear correlation, [Q.sub.GOLUBINKA](t) = [K.sub.m] x m, yields the peak groundwater level of GW[L.sub.max] (2012.-2015.) = 61.29 m a.s.l.
Additionally, we found a strong positive linear correlation (r=0.52, P<0.001) between the anteroposterior and transverse diameters, reflecting a proportionality in the rate of growth of the foramen magnum.
Line Graph showing Linear Correlation between Pericardial Fat Volume and Coronary Calcium Score
The linear correlation correlations of DESFC growth rates at 10 given characteristic life fraction [Florin] or [Guilder] for 7 commonly used distributions mentioned above were listed in Table 6.
9), there was a significant linear correlation between T and RH.
However, it is worth emphasizing that most studies analyzed the relation between vertical jumps and sprints with and without change of direction among soccer players using simple linear correlation (8,17-19,27).
Pearson correlation coefficient is used to examine the linear correlation between two variables.

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