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Related to coefficient of correlation: Coefficient of determination


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 ?
Table 2 Inter-correlation between the Three OCB Dimensions of in the Selected Banks [Karl Pearson's Coefficient of Correlation (r)] OCB Dimensions Helping Behavior Courtesy 1 2 Helping Behavior 1 Courtesy .
Table 8: Bi-Month and Adequate Bi-Month and Adequate Pearson Coefficient of Correlation 0.
businesses are closely correlated across all 50 states and the District of Columbia (the coefficient of correlation between the two rankings is 0.
The correlation that involves all of the visual parameters and properties determined yielded a coefficient of correlation equal to r = 0.
Trend analysis: This can help identify the baseline and variable consumption and coefficient of correlation (R2).
These hypotheses are tested by Karl Pearson's Coefficient of Correlation, Simple Linear Regression and t-test.
For analysis of data simple statistical techniques like mean, median, and Karl Pearson's coefficient of correlation have been used in the study.
Notice that the value of Pearson's coefficient of correlation equals 1, when we correlate the same variable with itself, which can only mean that the variable is perfectly associated with itself.
Karl Pearson's Coefficient of Correlation measures the strength of relation between an independent parameter and a dependent parameter on a scale of zero to one.
The ratios of net operating income to income value in the empirical data sample have a coefficient of correlation with the modelled function of a fixed quotient for NOI/GV = 0.

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