Difference between revisions of "Calculate Stock Correlation Coefficient"
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It's often useful to know if two stocks tend to move together. To build a [[Build a Diversified Portfolio|diversified portfolio]], you would want stocks that do not closely track each other. The Pearson [[Find the Correlation Coefficient|Correlation Coefficient]] helps to measure the relationship between the returns of two different stocks. | It's often useful to know if two stocks tend to move together. To build a [[Build a Diversified Portfolio|diversified portfolio]], you would want stocks that do not closely track each other. The Pearson [[Find the Correlation Coefficient|Correlation Coefficient]] helps to measure the relationship between the returns of two different stocks. | ||
| − | [[Category:Investments and Trading]] | + | [[Category: Investments and Trading]] |
== Steps == | == Steps == | ||
