Learn why correlation—not allocation—is the key to diversification, and how ETFs can help build portfolios with assets that truly move differently.

The one-year correlation between the S&P Equal Weight Index and S&P 500 has dropped to a record low of 79%, revealing extreme ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

In general, stock correlation refers to how stocks move in relation to one another. While we can speak generally about asset classes being positively or negatively correlated, we can also specifically ...

In the first case, there is a strong upward-sloping relationship between X and Y; in the second case, no apparent relationship; in the third case, a strong downward-sloping relationship. Note the ...

The S&P 500 and long-term rates have an extremely strong relationship. It's almost perfectly inverse. The correlation between the daily returns of the stock market and the daily changes in 30-year ...

Correlation doesn't imply causation. You've probably heard that before. It's a true statement that's important in statistical analysis—if more tall people own cats, that doesn't mean that cats cause ...

What is Pearson correlation test, Pearson product moment correlation or Pearson r? Pearson’s correlation helps us understand the relationship between two quantitative variables when the relationship ...