Correlation measures the degree to which two securities move in relation to each other and is a critical concept for investors seeking to reduce portfolio risk through diversification.

Authors

• Person: Not available Organization: Pressbooks
  Chapter 8 – Risk and Return – Fundamentals of Finance

Sources

• Chapter 8 – Risk and Return – Fundamentals of Finance pressbooks.pub Pressbooks via serper

Referenced by nodes (3)

• securities concept
• portfolio risk concept
• diversification concept