|
|
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 |
| |
0.999984 |
| |
0.995711 |
| |
0.991751 |
| |
0.990818 |
| |
0.989997 |
| |
0.947646 |
| |
0.920895 |
| |
0.876047 |
| |
0.861173 |
| |
0.839321 |
| |
0.838770 |
| |
0.838756 |
| |
0.830927 |
| |
0.828685 |
| |
0.826284 |
| |
0.825608 |
| |
0.824657 |
| |
0.823330 |
| |
0.820767 |
| |
0.819578 |
| |
0.819046 |
| |
0.815765 |
| |
0.814525 |
| |
0.814163 |
|
|
|
|
|
 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.
|
