Accountancy, asked by monicamackeon, 11 months ago

Explain what is meant by correlation and how it is used to measure the relationship between the returns of two securities.

Answers

Answered by titiksha06
0

Answer:

Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.

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