|
|
Correlation analysis helps identify the relationship between two or more companies, showing how they move about each other. It helps assess patterns, manage risk, and improve decision-making by revealing which assets correlate positively or negatively.
|
|
|
|
| Symbol | Correlation |
| |
1.000000 |
| |
0.999998 |
| |
0.998520 |
| |
0.998429 |
| |
0.998295 |
| |
0.998236 |
| |
0.998114 |
| |
0.996772 |
| |
0.996619 |
| |
0.996455 |
| |
0.983173 |
| |
0.983074 |
| |
0.976757 |
| |
0.975664 |
| |
0.975472 |
| |
0.974724 |
| |
0.974458 |
| |
0.971152 |
| |
0.970191 |
| |
0.967642 |
| |
0.967429 |
| |
0.967047 |
| |
0.964620 |
| |
0.963326 |
| |
0.963240 |
|
|
|
|
|
 Stock Correlation - Explanation
Stock Correlation is the statistical measure of the relationship between two stocks. The correlation coefficient ranges between -1 and +1. A correlation of +1 implies that the two stocks will move in the same direction 100% of the time. A correlation of -1 implies the two stocks will move in the opposite direction 100% of the time. A correlation of zero implies that the relationship between the stocks is completely random. Correlations do not always remain stable and can even change on a daily basis. Correlation analysis can help you to diversify your positions. An imperfect correlation between two different stocks allows for more diversification and marginally lower risk.
|
