Accountancy, asked by monicamackeon, 9 months ago

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

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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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