DEFINITION of 'Correlation Coefficient'
A measure that determines the degree to which two variable's movements are associated.
The correlation coefficient is calculated as:
INVESTOPEDIA EXPLAINS 'Correlation Coefficient'
The correlation coefficient will vary from 1 to +1. A 1 indicates perfect negative correlation, and +1 indicates perfect positive correlation.
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Autocorrelation
A mathematical representation of the degree of similarity between ... 
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RELATED FAQS

What does it mean if the correlation coefficient is positive, negative, or zero?
The correlation coefficient measures the robustness of the relationship between two variables. Pearson's correlation coefficient ... Read Full Answer >> 
The covariance between Stock A and Stock Z is 10.32, while the correlation coefficient ...
The covariance between Stock A and Stock Z is 10.32, while the correlation coefficient between the two stocks is 0.35. ... Read Full Answer >> 
What is the correlation between American stock prices and the value of the U.S. dollar?
The correlation between any two variables (or sets of variables) summarizes a relationship, whether or not there is any realworld ... Read Full Answer >>
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