what is correlation?
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In statistics, correlation or dependence is any statistical relationship, whether causal or not, between two random variables or bivariate data. In the broadest sense correlation is any statistical association, though it commonly refers to the degree to which a pair of variables are linearly related.
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Correlation is a statistic that measures the degree to which two variables move in relation to each other. In finance, the correlation can measure the movement of a stock with that of a benchmark index, such as the S&P 500.
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