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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 addition, all Pearson's correlation coefficients among the six traits were significant by the t test (P [less than or equal to] 0.01), except for the number of seeds with diameter and pulp weight (Table 2).
The calculated values of the Pearson's correlation coefficient for the concentrations of specific ions in the maternal saliva samples indicate that the strongest correlations exist between the concentrations of [SCN.sup.-] and [F.sup.-], S[O.sub.4.sup.2-] and [F.sup.-], N[O.sub.3.sup.-] and P[O.sub.4.sup.3-] in the samples from the women who smoked during pregnancy.
Pearson's correlation coefficients showed strong relationship between contact time and adsorption efficiency (values of r were between 0.5 to 1 in 95% confidence level).
Pearson's correlation coefficient showed, in general, strong correlations among the parameters.
Pearson's correlation coefficients comparing clinical depth to longitudinal median and transverse US plane views were 0.905; 95% CI, 0.873 to 0.929 and 0.899; 95% CI, 0.865 to 0.925, respectively.
Two types of correlation coefficients are often used in medical research; Pearson's correlation coefficient is a parametric method that is used to quantify the degree of linearity between two continuous variables and Spearman's correlation coefficient is a non-parametric method to quantify the order of rankings between two continuous variables.
Boll weight had low and negative association with lint yield in terms of Pearson's correlation coefficient (PeCC, -0.003), but showing non-significant and positive association with lint yield in terms of partial correlation
According to Table 1, the Pearson's correlation coefficient is equal to .812 and its level of significance is 0.026 for the positive responses of the groups of Law versus the groups of Law & Management (L & M).
Correlation between the variables was carried out by using Pearson's correlation coefficient 'r'.
Pearson's correlation coefficient was used to analyze the agreement for the continuous measures between the two collection sites (Bland & Altman, 1986).

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