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.

The asset correlation matrix proves that Treasuries are great diversifiers. It shows the correlation coefficient between Treasuries, developed markets, and emerging market stocks.

In statistics, a perfect positive correlation is represented by the correlation coefficient value +1.0, while 0 indicates no correlation, and -1.0 indicates a perfect inverse (negative) correlation.

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 ...

A demand curve is a good example of an often-used chart that has a negative or inverse correlation. Investopedia Negative Correlation and the Correlation Coefficient The correlation coefficient is ...

Xuefeng Liu, Michael J. Daniels, A New Algorithm for Simulating a Correlation Matrix Based on Parameter Expansion and Reparameterization, Journal of Computational and Graphical Statistics, Vol. 15, No ...

When a correlation matrix is singular (less than full rank), some variables are linear functions of other variables, and a g2 inverse for the matrix is displayed. The g2 inverse depends on the order ...