correlation

correlation definition - business

correlation

The relationship between two variables over a period, especially one that shows a close match between the variables' movements. For example, all utility stocks tend to have a high degree of correlation because the same forces influence their share prices. Conversely, gold stock price movements are not closely correlated with utility stock price movements because the two are influenced by very different factors. See also serial correlation.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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