How to Calculate the Correlation Coefficient A simple calculation method is to use what's known as the Pearson correlation coefficient calculator, named after the English mathematician Karl Pearson.

Learn how the correlation coefficient helps investors gauge relationships between variables, aiding in portfolio diversification and risk management strategies.

Correlation coefficients can mean a positive, negative, or no relationship between two variables. Use correlation coefficients to help pick securities for your portfolio.

In this article, we will explore the theory, assumptions and interpretation of Pearson’s correlation, including a worked example of how to calculate Pearson’s correlation coefficient, often referred ...

The correlation function will ask for two rows of data from two identical timeframes. Input, click ok and voila—correlation coefficient. The correlation coefficient is a number between 1 and -1.

One of the most relied-upon workaround for this is using statistical analysis methods like correlation coefficients to calculate the relationships between stocks.