Learn about correlation, including how it measures the relationship between securities, along with how it aids in ...

Correlation analysis in portfolio management design is overrated. There isn’t much benefit derived from relying on low correlation among asset classes to achieve excess return. The best way to use ...

The correlation function is a useful signal-analysis tool that engineers often overlook. Its formidable equation, which you have probably not thought about since your undergraduate signals and systems ...

In the first case, there is a strong upward-sloping relationship between X and Y; in the second case, no apparent relationship; in the third case, a strong downward-sloping relationship. Note the ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Causation and correlation may sound alike but are very different. The former means the root of subsequent events, while the latter refers to an actual or apparent relationship between trends in which ...

Tyler Vigen’s book, Spurious Correlations, is warm, funny and makes several very important points. According to Vigen, his book is based on dozens of correlations between completely unrelated sets of ...

Oil and stocks are moving almost identically with each other in the last few weeks. In fact, the correlations between the two are at nearly 100 percent, so it can't really get any higher than that, ...