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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.
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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 ?
The block <<2-D Correlation>> measures the coefficient of correlation between the template image and the current shot of video current.
The coefficient of correlation and efficiencyvalues are shown in Table 5.
These arrival flows are the stationary Poisson processes with the coefficient of correlation equal to 0 and the coefficient of variation equal to 1.
The coefficient of correlation between the actual and the fitted values indicates the degree of linear association between these two series.
Inter-relationship between OCB and HRM Practices: Correlation analysis by determining Karl Pearson's coefficient of correlation indicates that high or moderate degree of positive correlation exists between the study variables.
The coefficient of correlation is significant if obtained value P is P < 0.05 [8].
The highest values of coefficient of correlation between [EC.sub.a] variables and clay and silt content are on the first measurement date (14/3/2008); on this date the soil moisture is lower coincided with data of precipitation and evapotranspiration (Table 3).
Pearson's coefficient of correlation was done and regression coefficient (R value) determined to assess the association of inflammatory markers; ESR, TLC, S.IL-6 and S.
Across the 46 states for which data on each measure are publicly available, the two location quotients are positively and significantly correlated with each other (the coefficient of correlation is 0.317); however, the relation is mild, owing to a weak relation between the two measures among states with very little industrial R&D.
In Table 4 which relates to HPo1, the coefficient of correlation is 0.794 and coefficient of determination is 0.631.
Coefficient of correlation is verified and the hypotheses accepted through t-test.

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