And the correlation coefficient between the monthly rate of change for US stocks and oil (since 1973—as far back as I can get good monthly data for oil) is: -0.003.

From October 2022 to October 2023, we can see the correlation coefficient was +0.34, which signals a positive correlation, as expected. However, it is a weak correlation, due to JPM’s ...

A correlation coefficient is a statistical measure that shows the strength of a relationship between two variables. S&P 500 +---% | Stock Advisor +---% Join The Motley ...

Step two is to calculate the Pearson’s correlation coefficient, r, using the formula, the calculated parameters and our sample size (n = 20). In our example, we find Pearson’s correlation coefficient ...

Interpretation of correlation coefficient. After computation of correlation coefficient between X and Y, it has to be tested for statistical significance by comparing calculated t value with table ...

Ingram Olkin, John W. Pratt, Unbiased Estimation of Certain Correlation Coefficients, The Annals of Mathematical Statistics, Vol. 29, No. 1 (Mar., 1958), pp. 201-211 Free online reading for over 10 ...

The correlation coefficient is one of the most important concepts in statistical analysis, and can be highly useful to investors. Here's why.