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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 ?
Statistical Correlation between AOD (Aerosol Optical Depth) and Aerosols.
The factor analysis, descriptive statistics and statistical correlation are used for the analysis of the gathered data about interconnections of the sets of variables and factors, comparing them with the findings of similar researches.
In ophthalmology data analysis in relations to term of birth, statistical correlation confirmed between term of birth and intraocular pressure.
In [Mili, 2009], we had conducted an empirical study intended to analyze the statistical correlation between gender standards and democratic standards in post-colonial North Africa.
This discussion is backed and supported by the correlation value of 0.096 which indicates that correlation is almost zero and this is figure is further supported by the sig 2 tailed value which is above 0.05 standing at .347 further supports that there is no statistical correlation between the two variables.
This may well indicate that although GJH showed no statistical correlation with injury, it still represents an injury risk for dancers.
But we can ascertain that there is a strong statistical correlation between a low level of vitamin D and high risk of heart disease and early death," said Borge Nordestgaard, clinical professor at the Faculty of Health and Medical Sciences, University of Copenhagen and senior physician at Copenhagen University Hospital..
It then assesses the statistical correlation between observed hurricane activity levels and linked indicators such as sea surface temperatures (SST), projecting it onto future hurricane activity by correlating it to historical data.
Even though there was no statistical correlation between denture fissuratum and participant's related factors such as age, gender, and location of denture fissuratum.
Nobody knows that figure for widely acceptable range partly because there is almost no statistical correlation between how people respond to questionnaires and what they then do.
ANOVA r2 is a measure of the statistical correlation between the two variables.

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