Learn about correlation, including how it measures the relationship between securities, along with how it aids in diversifying your portfolio and risk management.

What Is the Correlation Coefficient? The correlation coefficient is a metric that measures the strength and direction of a relationship between two securities or variables, such as a stock and a ...

Investors understand intuitively that some stocks are riskier than others. The capital asset pricing model attempts to quantify the common perception of risk using a term called beta. By understanding ...

Correlation coefficients are indicators of the strength of the linear relationship between two different variables, x and y. A linear correlation coefficient that is greater than zero indicates a ...

Troy Segal is an editor and writer. She has 20+ years of experience covering personal finance, wealth management, and business news. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced ...