Positive Correlation

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Dictionary Says

Definition of 'Positive Correlation '

A relationship between two variables in which both variables move in tandem. A positive correlation exists when as one variable decreases, the other variable also decreases and vice versa. In statistics, a perfect positive correlation is represented by the value +1.00, while a 0.00 indicates no correlation and a -1.00 indicates a perfect negative correlation.
Investopedia Says

Investopedia explains 'Positive Correlation '

Here are a few simple examples of a positive correlation: The more money I save, the more financially secure I feel. The longer I invest, the more compound interest I earn. The less time I spend marketing my business, the fewer new clients I acquire. The more years of education I complete, the higher my earning potential.

A perfect positive correlation means that 100% of the time, the relationship that appears to exist between two variables is positive. It is also possible for two variables to be positively correlated in some, but not all, cases.

Search results for

'Positive Correlation '

  • Top 6 Most Tradable Currency Pairs Slideshow | Investopedia

    http://www.investopedia.com/slide-show/tradable-currency-pairs
    ... EUR/USD currency pair tends to have a negative correlation with USD/CHF and a positive
    correlation with the GBP/USD (more on these currency pairs later on). ...

  • Managing Currency Exposure In Your Portfolio

    http://www.investopedia.com/articles/basics/12/portfolio-currency-exposure.asp
    ... are three general correlations between stock price performance and exchange rate
    fluctuations: zero correlation, negative correlation and positive correlation. ...

  • Tales From The Trenches: Perfectly Negative Profitability

    http://www.investopedia.com/articles/trading/08/correlation.asp
    ... Figure 1: In positive correlation, the two assets move in the same direction.
    In negative correlation, two assets move in opposite directions. ...

  • Commodity Prices And Currency Movements

    http://www.investopedia.com/articles/forex/06/CommodityCurrencies.asp
    ... As the world's third-largest producer of gold, the Australian dollar had an 84%
    positive correlation with the precious metal between 1999 and 2008. ...

  • Commodity Prices And Currency Movements

    http://www.investopedia.com/articles/forex/06/commoditycurrencies.asp
    ... As the world's third-largest producer of gold, the Australian dollar had an 84%
    positive correlation with the precious metal between 1999 and 2008. ...

  • Using Currency Correlations To Your Advantage

    http://www.investopedia.com/articles/forex/05/051905.asp
    ... The upper table above shows that over the month of February (one month) EUR/USD
    and GBP/USD had a very strong positive correlation of 0.95. ...

  • Commodities: The Portfolio Hedge

    http://www.investopedia.com/articles/trading/05/021605.asp
    ... linear relationship, you'll have a correlation coefficient of 1. A positive correlation
    means that when one variable has a high (low) value, so does the other. ...

  • Currency ETFs Simplify Forex Trades

    http://www.investopedia.com/articles/forex/07/currency-ETFs.asp
    ... Source: MetaStock Pro FX. Figure 2: Canadian dollar. Source: MetaStock Pro FX. As
    you can see, there is a strong positive correlation between these two markets. ...

  • The Correlation Between Education And The Economy - Investopedia. ...

    http://financialedge.investopedia.com/financial-edge/0911/The-Correlation-Between-Education-And-The-Economy.aspx
    ... An unscientific look at all this data seems to point to a positive correlation between
    the education level of a state's population and economic output. ...

  • Quantitative Analysis Of Hedge Funds

    http://www.investopedia.com/articles/mutualfund/09/hedge-fundanalysis.asp
    ... of -1 to +1, where -1 indicates a perfect negative correlation, zero indicates no
    apparent correlation at all, and +1 indicates a perfect positive correlation. ...

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