The correlation coefficient between two securities ranges from -1 to +1, where +1 indicates perfect positive correlation (both move in the same direction with equal proportion), -1 indicates perfect negative correlation (they move in opposite directions), and 0 indicates no predictable relationship.

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 (1)

• securities concept