Negative correlation is a relationship between two variables in which one variable increases as the other decreases, ... For example, while low or negative correlations can help cut portfolio ...

In statistics, a perfectly negative correlation is represented by the value -1.0, while 0 indicates no correlation, and +1.0 indicates a perfectly positive correlation.

An example of a strong negative correlation would be -0.97. The variables would move in opposite directions in a nearly identical move.

Pearson coefficients range from +1 to -1, with +1 representing a positive correlation, -1 representing a negative correlation, and 0 representing no relationship.

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 .

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 90-day correlation coefficient between bitcoin and the dollar index has slipped to -0.70 from -0.11 four weeks ago. By Omkar Godbole Updated Apr 27, 2023, 3:06 p.m. Published Apr 27, 2023, 11: ...

A negative correlation between stocks and bonds could return in 2023 if the major catalyst for markets becomes recession rather than prospects of the Federal Reserve raising interest rates ...