Portfolio Analytics
Positive Correlation
Definition
What is Positive Correlation?
A relationship in which two assets tend to move in the same direction.
Example in practice
How This Looks in Practice
Bank shares and a banking-sector index usually have positive correlationA statistic ranging from minus one to plus one that describes how two return series move together..
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Related Terms
Portfolio Analytics
Correlation
A statistic ranging from minus one to plus one that describes how two return series move together.
Portfolio AnalyticsNegative Correlation
A relationship in which two assets tend to move in opposite directions.
Portfolio AnalyticsCovariance
A measure of how two variables or asset returns vary together.
Risk ManagementStress Test
An analysis of portfolio performance under severe but plausible scenarios.