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

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 ...

A correlation tells you how two financial variables move together. Financial variables can be assets like stock prices, and bond yields or economic indicators like interest rates. The direction in ...