Correlation coefficients range from -1 to +1, indicating the strength of relationships between variables. Investors use correlation coefficients for portfolio diversification to reduce risk.

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 ...

Whether you've managed your investments well into retirement or just got a 401(k) a couple of years ago, it's always wise to get back to the basics and refresh yourself on some of the most critical ...

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 ...

Robustness of normal test theory for correlation coefficients is at least asymptotically ensured for bivariate distributions satisfying a linearity and a homoscedasticity condition for the null theory ...

Most studies include multiple response variables, and the dependencies among them are often of great interest. For example, we may wish to know whether the levels of mRNA and the matching protein vary ...

The correlation between Nifty and Sensex shows how both indices move in relation to each other, offering insights into market ...

In a nutshell, beta is a measure of how reactive a stock is to overall market movements – particularly those of the S&P 500 benchmark index. Obviously, stocks move individually, and for a variety of ...