A measure of the strength of the relationship between two variables is referred to as the correlation coefficient.
To gauge the strength of the linear link between two variables, correlation coefficients are used.
For a value of correlation coefficient less than zero denotes a negative association, while a value greater than zero denotes a positive relationship.
Zero correlation coefficient means there is no correlation between the two variables under comparison.
A crucial idea in building diversified portfolios that may better resist portfolio volatility is the concept of a negative correlation, often known as an inverse correlation.
Since calculating the correlation coefficient takes time, it is frequently done by entering data into a calculator, computer, or statistics application.
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