In the above example, Apple and the S&P 500 have a correlation coefficient of 0.73817, which indicates a strong relationship between the two over 90 days of data.

Example of using correlation coefficients. Let’s say that you own three stocks, which we’ll call Company A, Company B, and Company C. All three are growth stocks in the technology space.

Correlation coefficients are used in science and finance to assess the degree of association between two variables, factors, or data sets. For example, as high oil prices are favorable for crude ...

One example of a positive correlation is the relationship between employment and inflation. ... A correlation coefficient of 1.0 means that two variables have a perfectly positive correlation.

The formula for Pearson’s correlation coefficient, r, relates to how closely a line of best fit, or how well a linear regression, predicts the relationship between the two variables. It is presented ...

Example of using correlation coefficients. Let's say you own three ASX shares, which we'll call Company A, Company B, and Company C. All three are growth stocks in the technology space.