View post: Walmart's bestselling Lenovo tablet is on sale for just $106, but not for long Correlation measures the relationship of two stocks based on their returns (percentage gains or losses), not ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Scott Nevil is an experienced writer and editor with a demonstrated history of publishing content for Investopedia. He goes in-depth to create informative and actionable content around monetary policy ...

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