Correlation coefficients range from -1 to +1, indicating the strength of relationships between variables. Investors use correlation coefficients for portfolio diversification to reduce risk.

With two different risky assets, an investor can minimize total portfolio volatility through the combination of investments with low to negative correlation. In a higher yield environment, 60/40 can ...

As global financial markets become increasingly interconnected, accurately modelling correlations between assets is essential. Traditional models often assume static correlations, which fail to ...

There are some strange correlations out there. For example, a recent article in the Financial Times cited data showing a correlation between share price and CEO manners. Those CEOs who said “please” ...