The Higher the Correlation Coefficient, the More Likely You Are to Misjudge—The "Spurious Correlation" Between Executive IT Knowledge and Corporate Performance

The reason your company's IT investments are not leading to results may not be a lack of knowledge, but rather that you are ...

The Illusion of Diversification: Why Stock-Bond Correlation Reverses During Crises

The "safety device" in your portfolio may not function at the very moment you need it most.In fact, during the 2008 financial ...
techtarget

correlation coefficient

A correlation coefficient is a statistical measure of the degree to which changes to the value of one variable predict change to the value of another. In positively correlated variables, the value ...
Kellogg School of Management

Covariance and Correlation

In the first case, there is a strong upward-sloping relationship between X and Y; in the second case, no apparent relationship; in the third case, a strong downward-sloping relationship. Note the ...