Correlation is a statistic that measures the degree to which two variables move in relation to each other. In finance, the correlation can measure the movement of a stock with that of a benchmark ...

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 ...

In this formula, r represents Pearson's correlation coefficient. Find the covariance of two variables, which will be called x and y. Take that number, ...

Figure 1: The results of multiple linear regression depend on the correlation of the predictors, as measured here by the Pearson correlation coefficient r (ref. 2). ( a ) Simulated values of ...