// TRADING TERMINOLOGY
What is Correlation Coefficient?
A statistical measure that calculates the strength of the relationship between the relative movements of two securities.
In-Depth Explanation
The values range between -1.0 and 1.0. A correlation of 1.0 means they move in perfect sync; -1.0 means they move in opposite directions.
Practical Example
"The correlation coefficient between Gold and the US Dollar is often strongly negative."
Related Terms
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