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.

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 ...

Correlation shows the strength of a relationship between two variables and is expressed numerically by the correlation coefficient. The correlation coefficient's values range between -1.0 and 1.0.

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.

Example 8.1: Correlation. This example defines modules to compute correlation coefficients between numeric variables and standardized values for a set of data. ... (xpx))); /* scaling matrix */ corr=s ...

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

A working example. To demonstrate how the correlation analysis could be ... instead of analyzing a full correlation matrix. Below are correlation coefficients for the portfolio components ...

In many applications, the correlation matrix has a block structure that, as we show, can be converted to a “quasi-factor” model. As a result, the cost to get one sample can be reduced to O(N). Such a ...