A correlation coefficient of 0 means there is no linear relationship. Correlation coefficients are used in science and finance to assess the degree of association between two variables, factors ...

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 correlation coefficients of Chevron versus WTI, Brent, and Henry Hub natural gas prices stand at 0.67, 0.57, and 0.49, respectively.

And the correlation coefficient between the monthly rate of change for US stocks and oil (since 1973—as far back as I can get good monthly data for oil) is: -0.003.

Those all have correlation coefficients in excess of 0.99! That is very very high! By comparison, Alan Abramowitz’s extremely accurate “Time for Change” model of presidential elections (it ...