Learn about correlation, including how it measures the relationship between securities, along with how it aids in diversifying your portfolio and risk management.

A correlational study is a research design that examines the relationships between two or more variables. It is non-experimental, meaning the experimenter does not manipulate or control any variables.

A correlation tells you how two financial variables move together. Financial variables can be assets like stock prices, and bond yields or economic indicators like interest rates. The direction in ...