What is the difference between correlated and non-correlated assets?

The difference between correlated vs non-correlated assets signals how closely tied a certain investment is to the ebbs and flows of the stock market. A high correlation means a non-market asset is likely to move in the same direction as another. Low correlation means the opposite: the two assets move independent of each other.

What is correlation in statistics?

What is correlation? Correlation refers to the statistical relationship between two entities. In other words, it's how two variables move in relation to one another. Correlation can be used for various data sets, as well. In some cases, you might have predicted how things will correlate, while in others, the relationship will be a surprise to you.

What is negative correlation?

Negative correlation: when two variables move in opposite directions (such as the idea of scarcity vs price) The difference between correlated vs non-correlated assets signals how closely tied a certain investment is to the ebbs and flows of the stock market.

What is another word for correlated?

Synonyms & Near Synonyms for correlated. associated, connected, interconnected, joined, linked. interrelated, related. affiliated,