Correlation coefficients can mean a positive, negative, or no relationship between two variables. Use correlation coefficients to help pick securities for your portfolio.

Aside from the eponymous coefficient, Pearson is known for the concepts of chi-squared test and p-value, among others, and development of linear regression and classification of distributions.

Offers an alternative to Markowitz’s “Portfolio Selection”. Outlines the nuts and bolts of correlation between past and future performance, or between expected and actual returns. Explains ...