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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.
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Symbol | Correlation |
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-0.608312 |
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-0.608578 |
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-0.610111 |
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-0.610284 |
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-0.610480 |
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-0.610707 |
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-0.610997 |
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-0.611068 |
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-0.611175 |
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-0.611415 |
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-0.611464 |
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-0.612156 |
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-0.612287 |
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-0.612303 |
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-0.612564 |
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-0.612726 |
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-0.612752 |
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-0.612775 |
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-0.612792 |
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-0.613072 |
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-0.613155 |
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-0.613208 |
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-0.613215 |
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-0.613336 |
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-0.613514 |
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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.
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