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Correlation

Statistical measure of the degree to which the movements of two variables (stock/option/convertible prices or returns) are related. See: Correlation coefficient.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

correlation

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.

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.

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

correlation

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

correlation

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 ?
Only eight of them have dependencies expressed by the correlation matrix; the other two are independent of all others.
The most interesting aspect of the ipsative/normative multitrait-multimethod correlation matrix is that the validity diagonals contained considerably higher correlations than other areas of the matrix.
The MDS analysis of the within-group correlation matrix showed traits A, F, and P clearly clustered in three separate groups.
In effect, Schonemann introduces two violations: (1) the correlation matrix S is created such that it does not fit the single common factor model, and (2) in creating the selection variable w equals 1, the unit column vector, rather than [[Pi].sub.1].
Such a cluster analysis of the basis correlation matrix [ILLUSTRATION FOR FIGURE 8A OMITTED] shows all cluster fusions occurring near zero.
(2) Construction of correlation matrix. The correlation matrix for the data set is given in Table I.
Some strong connections between variables are presented in the correlation matrix from above.
Table 1 also represented the correlation matrix computed for all pairs of scores for total PsyCap, its four sub scales i.e.
For the determination of inter-elemental correlation, the Pearson correlation matrix was used.
During the GFC, the correlation matrix displayed significant changes in the region when compared to the case of the AFC (Table 4).
A correlation matrix was used to investigate the dependence between multiple variables at the same time (Table 4).

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